NEOGEN CORP (NEOG) FY2025 10-K Annual Report

Filed: Jul 30, 2025
Health Care
In Vitro & In Vivo Diagnostic SubstancesSEC EDGAR

NEOGEN CORP (NEOG) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Jul 30, 2025. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

NEOGEN CORP FY2025 10-K Analysis

Business Overview

  • Core business model: Develops, manufactures, and markets diagnostic test kits and complementary products for food and animal safety globally
  • New emphasis: Completion of 3M Food Safety Division acquisition Sept 2022, now a wholly owned subsidiary, expanding Food Safety segment portfolio
  • Strategic shift: April 2025 agreement to sell global Cleaners and Disinfectants business, streamlining Animal Safety segment focus
  • Notable metric: Revenues from Food Safety segment increased to 71.3% of total in FY2025 from 66.5% in FY2023, reflecting growth post-acquisition
  • Unusual fact: Food safety test kits now integrate advanced software-as-a-service (Neogen Analytics), linked with Clean-Trace and Petrifilm Plate Reader devices for enhanced data insights

Management Discussion & Analysis

  • Revenue $894.7M, down 3% YoY from $924.2M, decline driven by $24.3M FX headwind and $3.9M discontinued product lines
  • Gross margin 47.1% vs 50.2% YoY, decrease due to lower volume, higher manufacturing costs, inventory write-offs, tariffs, and $4.4M restructuring charges
  • Food Safety best segment: revenue $638.1M (-3%), operating loss $985.7M due to $1.06B goodwill impairment; Animal Safety worst: revenue $256.5M (-5%), operating income $7.2M down 82%
  • Operating expenses $1.48B vs $405.2M prior year, goodwill impairment $1.06B charged in 2025, G&A $218.2M (+9%), Sales & Marketing $183.8M (+0.5%)
  • Net cash from operating activities $58.2M (+65%), investing cash outflow $99.2M vs $29.3M, capex $104.6M; completed $130M Cleaners & Disinfectants divestiture to repay debt
  • Management guidance: capex $50M in FY26, focus on new product development, manufacturing transition, margin maintenance, geographic expansion, technology strategy, and acquisitions
  • Key risks: tax law changes including global minimum tax, customer market weakness, restructuring impact, ERP system costs, and goodwill impairment potential

Risk Factors

  • Foreign exchange risk reducing revenue by $44.9M from 10% USD depreciation, impacting 50.2% of international revenues in fiscal year 2025
  • Interest rate risk with 38.9% of total debt at variable rates, causing $2.6M earnings loss from 75 basis point rate increase
  • No specific regulatory/legal risk disclosed in current risk factors section
  • No competitor or market disruption risk disclosed; next material risk is foreign currency loss exposure
  • No operational or supply chain risk detailed in this risk factors section

NEOGEN CORP FY2025 Key Financial Metrics
XBRL

Revenue

$895M

-3.2% YoY

Net Income

-$1.1B

-11491.6% YoY

Gross Margin

47.1%

-309bp YoY

Operating Margin

-118.6%

-12494bp YoY

Net Margin

-122.1%

-12104bp YoY

ROE

-52.7%

-5242bp YoY

Total Assets

$3.4B

-24.3% YoY

EPS (Diluted)

$-5.03

-12475.0% YoY

Operating Cash Flow

$58M

+65.2% YoY

Source: XBRL data from NEOGEN CORP FY2025 10-K filing on SEC EDGAR. All figures in USD.

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