NeoGenomics Reports Second Quarter 2025 Results
'In the second quarter clinical revenue increased by 16% driven by sequential improvement in AUP, a record quarter for volumes, and NGS growth of 23%,' said Tony Zook, CEO of NeoGenomics. 'Strength in our Clinical business was largely offset by continuing pressure in pharma revenue that was beyond our initial assumptions, and a delay in our commercial launch of PanTracer™ Liquid Biopsy that impacted our expected NGS revenue.'
'Looking ahead, we believe Neo will continue to perform as a double-digit revenue growth company, poised to capture additional market share,' continued Mr. Zook. 'We are enhancing our R&D efforts to develop new therapy selection and next-gen MRD products. We are also preparing for the commercial launch of PanTracer Liquid Biopsy, continuing to grow our sales team, increasing efficiencies, and pursuing partnerships through business development efforts that will enhance our portfolio and strengthen our community channel. We are confident that Neo will deliver long-term value for our customers, patients, and shareholders.'
Second-Quarter Results
Consolidated revenue for the second quarter of 2025 was $181 million, an increase of 10% over the same period in 2024 primarily due to higher volume partially offset by lower non-clinical revenue. Average revenue per clinical test ('revenue per test') increased by 2% to $465. This increase reflects higher value tests, including NGS, and strategic reimbursement initiatives.
Consolidated gross profit for the second quarter of 2025 was $77 million, an increase of 7% compared to the second quarter of 2024. This increase was primarily due to an increase in revenue partially offset by higher compensation and benefit costs and an increase in supplies expense. Consolidated gross profit margin, including amortization of acquired intangible assets and stock-based compensation expense, was 43%. Adjusted Gross Profit Margin (1), excluding amortization of acquired intangible assets and stock-based compensation expense, was 45%.
Operating expenses for the second quarter of 2025 were $125 million, an increase of $30 million, or 32%, compared to the second quarter of 2024. The increase in operating expenses primarily reflect $20.0 million of impairment charges from impairment of assets held for sale related to the planned sale of Trapelo and the InVisionFirst®-Lung intangible asset impairments, as well as $4.4 million in higher compensation and benefit costs. These increases were partially offset by a decrease in restructuring activities due to the completion of restructuring activities in the fourth quarter of 2024.
Net loss for the quarter increased $26 million, or 142%, to $45 million compared to net loss of $19 million for the second quarter of 2024.
Adjusted EBITDA (1) for the second quarter of 2025 remained relatively flat at positive $10.7 million, compared to positive $10.9 million in the second quarter of 2024. Adjusted Net Loss (1) was $3.6 million compared to Adjusted Net Loss (1) of $4 million in the second quarter of 2024.
Cash and cash equivalents and marketable securities totaled $164 million at quarter end.
Pathline, LLC Acquisition
On April 4, 2025, the Company completed the acquisition of a 100% ownership interest in Pathline, LLC ('Pathline'), a CLIA/CAP/NYS-certified laboratory based in New Jersey. The purchase price consisted of (i) initial cash consideration of $8.0 million, subject to working capital and other adjustments, and (ii) contingent consideration of $1.0 million. The Pathline acquisition aligns with the Company's strategic objective of expanding its presence, capabilities, and offerings in the Northeastern United States.
2025 Financial Guidance (2)
The Company again revised its full-year 2025 guidance (2), as previously revised on April 29, 2025.
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(1)
The Company has provided adjusted financial information that has not been prepared in accordance with GAAP, including Adjusted EBITDA, Adjusted Gross Profit Margin, Adjusted Net (Loss) Income, and Adjusted Diluted EPS. Each of these measures is defined in the section of this report entitled 'Use of Non-GAAP Financial Measures.' See also the tables reconciling such measures to their closest GAAP equivalent.
(2)
The Company reserves the right to adjust this guidance at any time. Current and prospective investors are encouraged to perform their own due diligence before buying or selling any of the Company's securities and are reminded that the foregoing estimates should not be construed as guarantees of future performance.
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Conference Call
The Company has scheduled a webcast and conference call to discuss its second quarter 2025 results on Tuesday, July 29, 2025 at 8:30 a.m. Eastern Time. To access the live call via telephone, interested investors should dial (888) 506-0062 (domestic) or (973) 528-0011 (international) at least five minutes prior to the call. The participant access code provided for this call is 859170. The live webcast may be accessed by visiting the Investor Relations section of our website at ir.neogenomics.com. A replay of the webcast will be available shortly after the conclusion of the call and will be archived on the Company's website.
About NeoGenomics, Inc.
NeoGenomics, Inc. is a premier cancer diagnostics company specializing in cancer genetics testing and information services. We offer one of the most comprehensive oncology-focused testing menus across the cancer continuum, serving oncologists, pathologists, hospital systems, academic centers, and pharmaceutical firms with innovative diagnostic and predictive testing to help them diagnose and treat cancer. Headquartered in Fort Myers, FL, NeoGenomics operates a network of CAP-accredited and CLIA-certified laboratories for full-service sample processing and analysis services throughout the US and a CAP-accredited full-service sample-processing laboratory in Cambridge, United Kingdom.
We routinely post information that may be important to investors on our website at https://www.neogenomics.com.
Forward Looking Statements
This press release includes forward-looking statements. These forward-looking statements generally can be identified by the use of words such as 'anticipate,' 'expect,' 'plan,' 'could,' 'would,' 'may,' 'will,' 'believe,' 'estimate,' 'forecast,' 'goal,' 'project,' 'guidance,' 'plan,' 'potential' and other words of similar meaning, although not all forward-looking statements include these words. These forward-looking statements address various matters, including statements regarding 2025 financial guidance, seasonality impacts, and long-range strategic objectives and initiatives set forth in the Company's long-range plans.. Each forward-looking statement contained in this press release is subject to a number of risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statement. Applicable risks and uncertainties include, among others, the Company's ability to identify and implement appropriate financial and operational initiatives to improve performance, to assemble and maintain an effective executive team, to continue gaining new customers, offer new types of tests, integrate its acquisitions, manage the effects of seasonality, execute on its long-range strategic priorities, and otherwise implement its business plans, and the risks identified under the heading "Risk Factors" contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, and filed with the SEC on February 18, 2025, as well as subsequently filed Quarterly Reports on Form 10-Q and the Company's other filings with the Securities and Exchange Commission.
We caution investors not to place undue reliance on the forward-looking statements contained in this press release. You are encouraged to read our filings with the SEC, available at www.sec.gov and on our website at www.neogenomics.com, for a discussion of these and other risks and uncertainties. The forward-looking statements in this press release speak only as of the date of this document (unless another date is indicated), and we undertake no obligation to update or revise any of these statements. Our business is subject to substantial risks and uncertainties, including those referenced above. Investors, potential investors, and others should give careful consideration to these risks and uncertainties.
NeoGenomics, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
COST OF REVENUE
104,072
92,008
198,861
182,779
GROSS PROFIT
77,258
72,494
150,504
137,963
Operating expenses:
General and administrative
71,747
63,328
139,954
129,125
Research and development
9,023
7,886
19,204
15,506
Sales and marketing
24,075
21,677
46,758
41,898
Restructuring charges
—
1,544
—
3,942
Impairment charges
20,041
—
20,041
—
Total operating expenses
124,886
94,435
225,957
190,471
LOSS FROM OPERATIONS
(47,628
)
(21,941
)
(75,453
)
(52,508
)
Interest income
(2,263
)
(4,592
)
(5,984
)
(9,426
)
Interest expense
933
1,666
2,551
3,351
Other (income) expense, net
(482
)
2
(547
)
265
Loss before taxes
(45,816
)
(19,017
)
(71,473
)
(46,698
)
Income tax benefit
(724
)
(375
)
(458
)
(995
)
NET LOSS
$
(45,092
)
$
(18,642
)
$
(71,015
)
$
(45,703
)
NET LOSS PER SHARE
Basic
$
(0.35
)
$
(0.15
)
$
(0.56
)
$
(0.36
)
Diluted
$
(0.35
)
$
(0.15
)
$
(0.56
)
$
(0.36
)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic
127,949
126,405
127,664
126,257
Diluted
127,949
126,405
127,664
126,257
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NeoGenomics, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Six Months Ended June 30,
2025
2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss
$
(71,015
)
$
(45,703
)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation
18,506
19,651
Amortization of intangibles
16,486
16,723
Stock-based compensation
22,968
16,615
Non-cash operating lease expense
3,353
4,793
Amortization of convertible debt discount and debt issue costs
1,233
1,452
Impairment charges
20,041
—
Other impairment charges
—
333
Other adjustments
(340
)
159
Changes in assets and liabilities, net
(16,229
)
(26,046
)
Net cash used in operating activities
(4,997
)
(12,023
)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from maturities of marketable securities
11,060
40,501
Purchases of property and equipment
(10,823
)
(18,663
)
Business acquisition, net of cash acquired
(5,991
)
—
Net cash (used in) provided by investing activities
(5,754
)
21,838
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of common stock, net
(234
)
2,782
Repayment of convertible debt
(201,250
)
—
Net cash (used in) provided by financing activities
(201,484
)
2,782
Net change in cash and cash equivalents, including cash classified within current assets held for sale
(212,235
)
12,597
Less: net change in cash classified within current assets held for sale
(54
)
—
Net change in cash and cash equivalents
(212,289
)
12,597
Cash and cash equivalents, beginning of period
367,012
342,488
Cash and cash equivalents, end of period
$
154,723
$
355,085
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Use of Non-GAAP Financial Measures
In order to provide greater transparency regarding our operating performance, the financial results and financial guidance in this press release refer to certain non-GAAP financial measures that involve adjustments to GAAP results. Non-GAAP financial measures exclude certain income and/or expense items that management believes are not directly attributable to the Company's core operating results and/or certain items that are inconsistent in amounts and frequency, making it difficult to perform a meaningful evaluation of our current or past operating performance. Management believes that the presentation of operating results using non-GAAP financial measures provides useful supplemental information to investors by facilitating the analysis of the Company's core test-level operating results across reporting periods. These non-GAAP financial measures may also assist investors in evaluating future prospects. Management also uses non-GAAP financial measures for financial and operational decision making, planning and forecasting purposes and to manage the business. These non-GAAP financial measures do not replace the presentation of financial information in accordance with U.S. GAAP financial results, should not be considered measures of liquidity, and are unlikely to be comparable to non-GAAP financial measures provided by other companies.
Definitions of Non-GAAP Measures
Non-GAAP Adjusted EBITDA
'Adjusted EBITDA' is defined by NeoGenomics as net (loss) income from continuing operations before: (i) interest income, (ii) interest expense, (iii) tax (benefit) or expense, (iv) depreciation and amortization expense, (v) stock-based compensation expense, and, if applicable in a reporting period, (vi) CEO transition costs, (vii) restructuring charges, (viii) impairment charges, (ix) intellectual property ('IP') litigation costs, and (x) other significant or non-operating (income) or expenses, net.
Non-GAAP Adjusted Cost of Revenue, Adjusted Gross Profit and Adjusted Gross Profit Margin
'Adjusted cost of revenue' is defined by NeoGenomics as cost of revenue before: (i) amortization of acquired intangible assets, and, if applicable in a reporting period, (ii) stock-based compensation expense.
'Adjusted gross profit' is defined by NeoGenomics as total revenue less adjusted cost of revenue.
'Adjusted gross profit margin' is defined by NeoGenomics as adjusted cost of revenue divided by total revenue.
Non-GAAP Adjusted Net (Loss) Income
'Adjusted net (loss) income' is defined by NeoGenomics as net (loss) income from continuing operations plus: (i) amortization of intangible assets, (ii) stock-based compensation expense, and, if applicable in a reporting period, (iii) CEO transition costs, (iv) restructuring charges, (v) impairment charges, (vi) IP litigation costs, and (vii) other significant or non-operating (income) or expenses, net. If GAAP net (loss) income is negative and adjusted net (loss) income is positive, adjusted net (loss) income will also be adjusted to reverse any recognized interest expense (including any amortization of discounts) on the convertible notes using the if-converted method unless the effect of this adjustment on both the adjusted net (loss) income and weighted average diluted common shares outstanding would be anti-dilutive. If GAAP net (loss) income is positive and adjusted net (loss) income is negative, adjusted net (loss) income will also be adjusted to reverse any recognized interest expense (including any amortization of discounts) on the convertible notes using the if-converted method.
Non-GAAP Adjusted Diluted EPS
'Adjusted diluted EPS' is defined by NeoGenomics as adjusted net (loss) income divided by adjusted diluted shares outstanding. If GAAP net (loss) income is negative and adjusted net (loss) income is positive, adjusted diluted shares outstanding will also include any options or restricted stock that would be outstanding as dilutive instruments using the treasury stock method and the weighted average number of common shares that would be outstanding if the convertible notes were converted into common stock on the original issue date based on the number of days such common shares would have been outstanding in the reporting period, until the effect of these adjustments are anti-dilutive. If GAAP net (loss) income is positive and adjusted net (loss) income is negative, adjusted diluted shares outstanding will exclude any options or restricted stock that would be outstanding as dilutive instruments using the treasury stock method and the weighted average number of common shares that would be outstanding if the convertible notes were converted into common stock on the original issue date based on the number of days such common shares would have been outstanding in the reporting period.
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(1)
For the three months ended June 30, 2025, CEO transition costs include executive retention costs. For the six months ended June 30, 2025, CEO transition costs include severance costs, executive retention costs, and executive search costs. There were no such costs for the three and six months ended June 30, 2024.
(2)
For the three and six months ended June 30, 2025, acquisition and integration related expenses include consulting and legal fees, severance costs, and employee retention costs.
(3)
For the three and six months ended June 30, 2025, impairment charges include losses from InVisionFirst®-Lung intangible asset impairment and inventory write-off, and impairment of disposal groups held for sale. There were no such costs for the three and six months ended June 30, 2024.
(4)
For the three and six months ended June 30, 2025 and June 30, 2024, IP litigation costs include legal fees.
(5)
For the three and six months ended June 30, 2024, other significant (income) expenses, net, includes site closure costs, severance costs, and fees related to non-recurring legal matters. There were no such costs for the three and six months ended June 30, 2025.
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(1)
Cost of revenue adjustments for the three months ended June 30, 2025, includes $4.8 million of amortization of acquired intangible assets and $0.3 million of stock-based compensation. Cost of revenue adjustments for the six months ended June 30, 2025, includes $9.7 million of amortization of acquired intangible assets and $0.7 million of stock-based compensation. Cost of revenue adjustments for the three months ended June 30, 2024, includes $4.9 million of amortization of acquired intangible assets and $0.3 million of stock-based compensation. Cost of revenue adjustments for the six months ended June 30, 2024, includes $9.8 million of amortization of acquired intangible assets and $0.7 million of stock-based compensation.
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Reconciliation of GAAP Net Loss to Non-GAAP Adjusted Net Loss
and GAAP EPS to Non-GAAP Adjusted EPS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
Net loss (GAAP)
$
(45,092
)
$
(18,642
)
$
(71,015
)
$
(45,703
)
Adjustments to net loss, net of tax:
Amortization of intangibles
8,124
8,361
16,486
16,723
CEO transition costs (1)
637
—
2,831
—
Acquisition and integration related expenses (2)
3,204
—
4,376
—
Stock-based compensation expense
12,215
8,841
22,968
16,615
Restructuring charges
—
1,544
—
3,942
Impairment charges (2)
20,041
—
20,041
—
IP litigation costs (3)
4,460
1,962
7,443
6,243
Other significant expenses, net (4)
—
2,358
—
3,960
Adjusted net income
$
3,589
$
4,424
$
3,130
$
1,780
Net loss per common share (GAAP)
Diluted EPS
$
(0.35
)
$
(0.15
)
$
(0.56
)
$
(0.36
)
Adjustments to diluted loss income per share:
Amortization of intangibles
0.06
0.07
0.13
0.13
CEO transition costs (1)
—
—
0.02
—
Acquisition and integration related expenses (2)
0.03
—
0.03
—
Stock-based compensation expense
0.10
0.07
0.18
0.13
Restructuring charges
—
0.01
—
0.03
Impairment charges (3)
0.16
—
0.16
—
IP litigation costs (4)
0.03
0.02
0.06
0.05
Other significant expenses, net (5)
—
0.02
—
0.03
Rounding and impact of diluted shares in adjusted diluted shares (6)
—
(0.01
)
—
—
Adjusted diluted EPS (non-GAAP)
$
0.03
$
0.03
$
0.02
$
0.01
Weighted average shares used in computation of adjusted diluted EPS:
Diluted common shares (GAAP)
127,949
126,405
127,664
126,257
Dilutive effect of options, restricted stock, and converted shares (7)(8)
—
—
—
—
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____________________
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(1)
For the three months ended June 30, 2025, CEO transition costs include executive retention costs. For the six months ended June 30, 2025, CEO transition costs include severance costs, executive retention costs, and executive search costs. There were no such costs for the three and six months ended June 30, 2024.
(2)
For the three and six months ended June 30, 2025, acquisition and integration related expenses include consulting and legal fees, severance costs, and employee retention costs.
(3)
For the three and six months ended June 30, 2025, impairment charges include losses from InVisionFirst®-Lung intangible asset impairment and inventory write-off, and impairment of disposal groups held for sale. There were no such costs for the three and six months ended June 30, 2024.
(4)
For the three and six months ended June 30, 2025 and June 30, 2024, IP litigation costs include legal fees.
(5)
For the three and six months ended June 30, 2024, other significant (income) expenses, net, includes site closure costs, severance costs, and fees related to non-recurring legal matters. There were no such costs for the three and six months ended June 30, 2025.
(6)
This adjustment is for rounding and, in those periods in which GAAP net (loss) income is negative and adjusted net (loss) income is positive or GAAP net (loss) income is positive and adjusted net (loss) income is negative, also compensates for the effects of additional diluted shares included or excluded in adjusted diluted shares outstanding for the treasury stock impact of outstanding stock options and restricted stock and the if-converted impact of convertible notes.
(7)
In those periods in which GAAP net (loss) income is negative and adjusted net (loss) income is positive, this adjustment includes any options or restricted stock that would be outstanding as dilutive instruments using the treasury stock method and the weighted average number of common shares that would be outstanding if the convertible notes were converted into common stock on the original issue date based on the number of days such common shares would have been outstanding in the reporting period, until the effect of these adjustments are anti-dilutive.
(8)
In those periods in which GAAP net (loss) income is positive and adjusted net (loss) income is negative, this adjustment excludes any options or restricted stock that would be outstanding as dilutive instruments using the treasury stock method and the weighted average number of common shares that would be outstanding if the convertible notes were converted into common stock on the original issue date based on the number of days such common shares would have been outstanding in the reporting period.
Expand
Reconciliation of Non-GAAP Financial Guidance to Corresponding GAAP Measures
(in thousands, except per share amounts)
(unaudited)
GAAP net loss in 2025 will be impacted by certain charges, including: (i) expense related to the amortization of intangible assets, (ii) stock-based compensation, and (iii) other one-time expenses. These charges have been included in GAAP net loss available to stockholders and GAAP net loss per share; however, they have been removed from adjusted net loss and adjusted diluted net loss per share
The following table reconciles the Company's 2025 outlook for net loss and EPS to the corresponding non-GAAP measures of adjusted net loss, adjusted EBITDA, and adjusted diluted EPS:
____________________
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(1)
This adjustment is for rounding and, in those periods in which GAAP net (loss) income is negative and adjusted net (loss) income is positive, also compensates for the effects of additional diluted shares included in adjusted diluted shares outstanding for the treasury stock impact of outstanding stock options and restricted stock and the if-converted impact of convertible notes.
(2)
For those periods in which GAAP net (loss) income is negative and adjusted net (loss) income is positive, this adjustment includes any options or restricted stock that would be outstanding as dilutive instruments using the treasury stock method and the weighted average number of shares that would be outstanding if the convertible notes were converted into common stock on the original issue date based on the number of days such shares would have been outstanding in the reporting period, until the effect of these adjustments are anti-dilutive.
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Supplemental Information
Clinical Tests Performed and Revenue
(unaudited)
____________________
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(1)
Excludes tests and revenue related to Pathline and non-clinical activity.
(2)
Excludes tests and revenue related to non-clinical activity.
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Key Points Opendoor Technologies buys houses with the hope of flipping them to sell at higher prices. The stock has caught fire lately, as investors seem to be going back to the meme stock mentality that existed a few years ago. Opendoor's business isn't performing particularly well, though it's improving. 10 stocks we like better than Opendoor Technologies › Opendoor Technologies (NASDAQ: OPEN) operates an interesting housing-related business. There are reasons to like the stock if you are an aggressive investor. But there are also some very big reasons to be cautious. Before you buy Opendoor Technologies thinking it will make you a millionaire, you'll want to dig a bit deeper into the company's story. What does Opendoor Technologies do? From a simple perspective, Opendoor is a house flipper. It steps in to quickly buy homes in whatever condition they are in, easing the process for home sellers. Then Opendoor fixes up the houses it buys and sells them, hopefully at a higher price than what it paid. It uses a proprietary computer algorithm to help it select which houses to buy, and where, in 50 or so markets. House flipping is not new. It has been done by small investors for years, often with the investors having the skills to fix up the homes they buy. Opendoor is basically trying to take this business and scale it up. Given the unique nature of every home, that's a large and complex task. The company has achieved a great deal of success from an operational perspective, building out a platform for buying and selling homes and a network of professionals to manage and upgrade the homes it buys. What it has not achieved yet are sustainable profits. There are some inherent headwinds to that, given that property markets tend to be seasonal. Homebuying tends to take place most often in the spring and summer, which leaves the fall and winter with less transaction volume. Even if Opendoor manages to become profitable, investors need to be prepared for big profit swings throughout the year. And that means that a lot will ride on the success of the selling season every single year. What about the stock's massive price spike So the huge price spike that just occurred in Opendoor's stock must indicate something positive about the business, right? Not really. It seems like there has been a return of the meme stock hysteria that occurred a few years ago. In fact, the company had recently received a warning that its stock might be de-listed because it had fallen to such a low price level. Management had even gone so far as to schedule a special meeting to seek shareholder approval for a reverse stock split. That changes nothing about the business, but it raises the price of the shares because it reduces the number of shares outstanding. Often, however, a company's stock price will keep falling after a reverse split because the business remains the same. And in Opendoor's situation, the business is still unprofitable. The company has put the reverse stock split on pause for now, given the steep price advance. But investors looking at this situation need to tread with particular caution. Right now it looks more like investors are gambling with Opendoor stock than investing in the business. The stock could absolutely go higher from here, but it could also fall dramatically and quickly if meme stock investors move on to a new investment. At the end of the day, it remains an upstart business in a seasonal industry trying, and so far struggling, to become sustainably profitable. That's not a compelling story for a long-term investor. Opendoor is probably not your ticket to millionaire status There are likely to be people who make a lot of money gambling on Opendoor's stock. That's not the same thing as investing, however. And the risk of playing the meme stock game is that you end up being the last one in the door, which means you probably lose money. For investors who want to buy and hold stocks to build wealth over time, Opendoor is best avoided right now. In fact, until the business manages to become sustainably profitable, it probably only deserves to be on your watch list. Do the experts think Opendoor Technologies is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Opendoor Technologies make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,019% vs. just 178% for the S&P — that is beating the market by 841.12%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,820!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 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IAC Earnings: What To Look For From IAC
Digital media conglomerate IAC (NASDAQGS:IAC) will be reporting earnings this Monday after market hours. Here's what investors should know. IAC missed analysts' revenue expectations by 29.5% last quarter, reporting revenues of $570.5 million, down 8.6% year on year. It was a disappointing quarter for the company, with a significant miss of analysts' EPS estimates. Is IAC a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting IAC's revenue to decline 5.2% year on year to $601.5 million, improving from the 13.9% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.04 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Looking at IAC's peers in the media & entertainment segment, some have already reported their Q2 results, giving us a hint as to what we can expect. IMAX delivered year-on-year revenue growth of 3.1%, beating analysts' expectations by 1%, and Interpublic Group reported a revenue decline of 6.6%, in line with consensus estimates. IMAX traded down 7.5% following the results while Interpublic Group was up 10.6%. Read our full analysis of IMAX's results here and Interpublic Group's results here. Questions about potential tariffs and corporate tax changes have caused much volatility in 2025. While some of the media & entertainment stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.4% on average over the last month. IAC is up 1.8% during the same time and is heading into earnings with an average analyst price target of $51 (compared to the current share price of $38.83). Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Sign in to access your portfolio
