NeoGenomics Receivables Jump $54 Million, Swallowing Its Operating Cash Flow
A billing-platform switch left invoices unsent, and operating cash flow shrank to $2.9 million for the first nine months.
NeoGenomics, which runs cancer-focused testing labs in the U.S. and U.K., saw unpaid customer bills climb to $213.4 million at September 30 from $159.2 million at year-end, according to its 10-Q filed Wednesday. The company blames delayed invoicing after a move to a new billing platform.
Receivables outran cash from operations
The cash-flow statement shows accounts receivable took $54.2 million out of operating cash over nine months. That is far more than the $2.9 million the operations produced, which compares with $3.9 million a year earlier.
The filing attributes the increase mainly to invoices going out late during the platform switch, a change the company says should speed up collections through automation and efficiency. Management expects the effect on collection timing to be temporary and says customer payment patterns did not change.
Receivables were $175.4 million at June 30, so the third quarter, when revenue was $209.3 million, added the bulk of the increase. The prior filing's cash-flow discussion credited gross profit gains and did not mention billing.
A business that is growing and still losing money
NeoGenomics provides cancer diagnostic testing and interpretation by pathology and oncology specialists, serving community practices, hospital labs, reference labs, academic centers and drug companies.
Third-quarter revenue rose 11.4% from a year earlier, and the nine-month net loss narrowed to $22.4 million from $98.1 million. In its earnings release, the company raised its full-year revenue guidance to $807 million to $809 million.
Cash cushion and the convertible notes
Cash fell to $139.3 million from $159.6 million at December 31, and from $145.5 million at June 30. The company says cash on hand and collections should cover its needs for at least the next 12 months.
In June it sold $316.3 million of convertible notes due 2032, used $262.9 million to repurchase part of its 2028 notes and spent $25.0 million buying back stock. With the stock at $18.36 on September 30, the 2032 notes' conversion value exceeded principal by $93.8 million.
Management's description of the billing hit as temporary will be tested when the next quarter's receivables balance is reported.
Sources
- 10-Q Filing — NeoGenomics (NEO) — SEC EDGAR
- 10-Q Filing — NeoGenomics (NEO), Q2 FY2026 filed 2026-07-28 (comparison basis) — SEC EDGAR
- Earnings release (8-K Item 2.02, a99-109302026earningsrelea.htm) — NeoGenomics, filed 2026-10-28 — SEC EDGAR
- NeoGenomics Non-GAAP EPS of $0.07 beats by $0.01, revenue of $209.25M beats by $1.92M (NASDAQ:NEO) | Seeking Alpha — seekingalpha.com
- NeoGenomics: Q3 Earnings Snapshot | 9news.com — Associated Press
- NeoGenomics: Q3 Earnings Snapshot | wusa9.com — Associated Press
- NeoGenomics: Q3 Earnings Snapshot | khou.com — Associated Press
- Neoadjuvant nivolumab with or without visugromab in muscle-invasive bladder cancer: the phase 2a GDFATHER-NEO trial | Nature Medicine — nature.com
