Mesa Labs Announces Fourth Quarter and Fiscal Year 2026 Results
Rhea-AI Summary
Mesa Labs (NASDAQ:MLAB) reported 4Q26 revenues of $63.7M, up 2.6% year-over-year, and FY26 revenues of $249.1M, up 3.4%. FY26 net income was $6.7M, up 440%.
Non-GAAP AOI excluding unusual items rose 11.9% to $63.5M (25.5% margin). Free cash flow was $39.6M, and debt repayment of $14.7M reduced total net leverage to 2.11x. SDC and CS grew, while BPD and CG China declined.
Positive
- FY26 revenues grew 3.4% to $249.1M
- FY26 net income increased 440% to $6.7M
- AOI excluding unusual items up 11.9% to $63.5M
- AOI margin expanded to 25.5%, up 200 bps year-over-year
- Free cash flow of $39.6M in FY26
- Debt reduced by $14.7M, net leverage down to 2.11x
- SDC organic revenue growth of 17.7% in 4Q26
- Calibration Solutions organic revenue growth of 3.5% in FY26
Negative
- 4Q26 core organic revenues declined 0.6%
- 4Q26 BPD organic revenues declined 29.9%
- FY26 BPD core organic revenues declined 2.5%
- Clinical Genomics FY26 organic revenues declined 3.6%
- CG China revenues fell about $5.2M, or 57.4%, in FY26
- 4Q26 net loss of $4.1M, or -$0.75 per share
- FX and tariffs reduced margins across several divisions
News Market Reaction – MLAB
In the May 27 session, MLAB declined 14.48%, reflecting a significant negative market reaction. Argus tracked a peak move of +5.4% during that session. Argus tracked a trough of -16.8% from its starting point during tracking. Our momentum scanner triggered 28 alerts that day, indicating elevated trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Feb 03 | Quarterly earnings | Positive | +8.7% | 3Q26 revenue and AOI growth with debt reduction and leverage improvement. |
| Nov 06 | Quarterly earnings | Neutral | +1.5% | 2Q26 revenue and AOI growth offset by lower net income and leverage focus. |
| Aug 05 | Quarterly earnings | Negative | -24.9% | Q1 FY26 margin and operating income pressure despite modest revenue growth. |
| May 28 | Annual earnings | Positive | -8.9% | Strong FY25 growth and integration milestones but full-year and Q4 net losses. |
| Feb 04 | Quarterly earnings | Positive | +2.5% | Q3 FY25 double-digit revenue and core organic growth across divisions. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings headlines have produced mixed reactions, with several strong fundamental reports still followed by sharp declines, indicating investors can react unpredictably to results.
Recent earnings for Mesa Laboratories show steady revenue growth and improving profitability, but share reactions have varied. Over the last five earnings events (Feb 2025 through Feb 2026), the company reported rising revenues, expanding AOI margins, and deleveraging, yet price moves ranged from a +8.73% gain to a -24.92% drop. This FY26/Q4 release continues the theme of modest top-line growth, divisional volatility, and margin focus within the same four-division structure.
Key Terms
organic revenues growth financial
core organic revenues financial
adjusted operating income financial
free cash flow financial
total net leverage ratio financial
non-gaap financial
ebitda financial
export controls regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
LAKEWOOD, Colo., May 27, 2026 (GLOBE NEWSWIRE) -- Mesa Laboratories, Inc. (NASDAQ:MLAB) (“Mesa” or “the Company”), a global leader in the design and manufacture of life science tools and critical quality control solutions, today announced results for its fourth fiscal quarter (“4Q26”) and fiscal year (“FY26”) ended March 31, 2026 (amounts in thousands).
4Q26 Financial Summary – (comparisons are versus the same prior year period)
- Revenues increased
2.6% - Non-GAAP organic and core organic revenues1 growth was
2.6% and (0.6)%, respectively - Operating income increased
87% to$2,748 - Non-GAAP adjusted operating income (“AOI”) excluding unusual items2 increased
49.2% and was28.7% as a percentage of revenues - Repaid
$14,700 of debt and reduced Total Net Leverage Ratio3 to 2.11
Full FY26 Financial Summary – (comparisons are versus the prior fiscal year)
- Revenues increased
3.4% - Non-GAAP organic and core organic revenues growth was
3.4% and1.2% , respectively - Operating income increased
13.3% to$18,511 - Non-GAAP adjusted operating income excluding unusual items increased
11.9% and was25.5% as a percentage of revenues
We operate a diversified business across four divisions: Sterilization and Disinfection Control (“SDC”), Biopharmaceutical Development (“BPD”), Calibration Solutions (“CS”), and Clinical Genomics (“CG”).
Executive Commentary (amounts in thousands)
“As announced in March, I am in the middle of my onboarding journey as I am conducting my first 100 days review of the businesses since joining Mesa on April 13. I want to share that I am even more excited today than the day I joined. The Mesa diversified platform has tremendous potential to create shareholder value while delivering on our promise to Protect the Vulnerable. Upon completion of my 100-day review of our business, I am looking forward to begin meeting with our shareholders and discussing my vision for the Company moving forward. I also expect to be in position to provide rest of the year guidance along with the release of H1 results,” said Siddhartha Kadia, President and CEO of Mesa.
“We delivered
“Profitability for the quarter, as measured by AOI excluding unusual items as a percentage of revenues, was strong at
“For the year, revenues were
Financial Results (unaudited, amounts in thousands, except per share data)
Fourth Quarter Fiscal Year 2025
Total revenues were
Full Fiscal Year 2026
Total revenues were
Division Performance
| Revenues | Organic Revenues Growth1 | Core Organic Revenues Growth | ||||||||||
| (Amounts in thousands) | Three Months Ended March 31, 2026 | Year Ended March 31, 2026 | Three Months Ended March 31, 2026 | Year Ended March 31, 2026 | Three Months Ended March 31, 2026 | Year Ended March 31, 2026 | ||||||
| SDC | $ | 29,136 | $ | 101,567 | 17.7 | % | 8.7 | % | 11.5 | % | 4.7 | % |
| BPD | 8,847 | 48,626 | (29.9 | )% | (0.2 | )% | (31.6 | )% | (2.5 | )% | ||
| CS | 13,559 | 53,551 | 2.3 | % | 3.5 | % | 2.1 | % | 3.5 | % | ||
| CG | 12,182 | 45,386 | 5.8 | % | (3.6 | )% | 4.0 | % | (4.9 | )% | ||
| Total | $ | 63,724 | $ | 249,130 | 2.6 | % | 3.4 | % | (0.6 | )% | 1.2 | % |
Sterilization and Disinfection Control (
Gross profit percentage increased 270 bps for the quarter and 10 bps for the year (normalizing for
Calibration Solutions (
Biopharmaceutical Development (
Gross profit percentage increased 130 bps for the quarter and decreased 270 bps for the year. The increase for the quarter resulted from positive product mix, partially offset by 320 bps of negative impact from FX and tariffs. The decrease for the year was primarily due to unfavorable product mix and 260 bps of negative impact from FX and tariffs.
Clinical Genomics (
Gross profit percentage increased 570 bps for the quarter and 280 bps for the year primarily due to manufacturing and supply chain efficiency improvements, lower personnel-related costs attributable to our cost mitigation efforts in 2Q26, and favorable geographic product mix, as sales outside of China typically generate higher margins.
Use of Non-GAAP Financial Measures
Adjusted operating income, adjusted operating income excluding unusual items, organic revenues growth and core organic revenues growth are non-GAAP measures that exclude or adjust for certain items, as detailed within the tables in “Supplemental Information Regarding Non-GAAP Financial Measures.”
1 Organic revenues growth is defined as reported revenues growth excluding the impact of acquisitions and core organic revenues growth is defined as organic revenues growth excluding currency translation. A reconciliation of these non-GAAP measures to their GAAP counterpart is set forth below.
2 Adjusted operating income and adjusted operating income per share are defined to exclude the non-cash impact of amortization of intangible assets acquired in a business combination, stock-based compensation, and depreciation and impairment of goodwill and long-lived assets. These measures are also presented excluding unusual items. A reconciliation of these non-GAAP measures to their GAAP counterparts is set forth below, along with additional information regarding their use.
3 Total Net Leverage Ratio under our Credit Facility is defined as the ratio of total debt minus unrestricted cash in excess of
4 Free cash flow is derived from the Consolidated Statements of Cash Flows and is defined as net cash provided by operating activities less purchases of property, plant and equipment. A reconciliation of this non-GAAP measure is set forth below.
About Mesa Laboratories, Inc.
Mesa is a global leader in the design and manufacture of life science tools and critical quality control solutions for regulated applications in the pharmaceutical, healthcare and medical device industries. Mesa offers products and services to help our customers ensure product integrity, increase patient and worker safety, and improve the quality of life throughout the world.
For more information about Mesa, please visit its website at www.mesalabs.com.
Forward Looking Statements
This press release contains forward-looking statements regarding our future business expectations. Any statements contained herein that are not statements of historical fact may be forward-looking statements, including statements relating to future financial results, business conditions and strategic initiatives. Words such as “seek,” “expect,” “plan” “intend,” “anticipate,” “believe,” “could,” “should,” “estimate,” “may,” “target,” “project,” and similar expressions may also identify forward-looking statements. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. The forward-looking statements are made based on expectations and beliefs concerning future events affecting us and are subject to risks and uncertainties relating to our operations and business environments, all of which are difficult to predict and many of which are beyond our control. Risks and uncertainties that could cause actual results to differ materially from our historical experience and present expectations or projections include those relating to: our ability to successfully grow our business, including as a result of acquisitions; the results on operations of acquisitions; our ability to consummate acquisitions at our historical rate and at appropriate prices; our ability to effectively integrate acquired businesses and achieve desired results; the market acceptance of our products; reduced demand for our products that adversely impacts our future revenues, cash flows, results of operations and financial condition; conditions in the global economy and the particular markets we serve; significant developments or uncertainties stemming from actions of the U.S. government, including changes in U.S. trade policies and medical device regulations; the timely development and commercialization, and customer acceptance, of enhanced and new products and services; the inherent uncertainty of projections of revenues, growth, operating results, profit margins, expenses, earnings, margins, tax rates, tax provisions, cash flows, liquidity, demand, and competition; the effects of additional actions taken to become more efficient or reduce costs; restructuring activities; laws regulating fraud and abuse in the health care industry and the privacy and security of health and personal information; outstanding claims, legal proceedings, tax audits and assessments and other contingent liabilities; foreign currency exchange rates and fluctuations in those rates; and general economic, industry, and capital markets conditions. These risks and uncertainties also include, but are not limited to, those described in our filings with the Securities and Exchange Commission including our Annual Report on Form 10-K for the year ended March 31, 2025, and our Quarterly Reports on Form 10-Q. We assume no obligation to update the information in this press release.
Mesa Laboratories Contacts:
Siddhartha Kadia; President and CEO,
John Sakys; CFO
1-303-987-8000
investors@mesalabs.com
Financial Summary (Unaudited except for the information as of and for the year ended March 31, 2025)
| Condensed Consolidated Statements of Operations | |||||||||||
| (Amounts in thousands, except per share data) | Three Months Ended March 31, | Year Ended March 31, | |||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||
| Revenues | $ | 63,724 | $ | 62,135 | $ | 249,130 | $ | 240,978 | |||
| Cost of revenues | 21,519 | 23,723 | 90,860 | 90,108 | |||||||
| Gross profit | 42,205 | 38,412 | 158,270 | 150,870 | |||||||
| Operating expenses | 39,457 | 36,943 | 139,759 | 134,534 | |||||||
| Operating income | 2,748 | 1,469 | 18,511 | 16,336 | |||||||
| Nonoperating expense (income) | 4,341 | 1,008 | 6,497 | 10,375 | |||||||
| (Loss) earnings before income taxes | (1,593 | ) | 461 | 12,014 | 5,961 | ||||||
| Income tax expense | 2,543 | 7,575 | 5,302 | 7,935 | |||||||
| Net (loss) income | $ | (4,136 | ) | $ | (7,114 | ) | $ | 6,712 | $ | (1,974 | ) |
| Earnings per share (basic) | $ | (0.75 | ) | $ | (1.31 | ) | $ | 1.22 | $ | (0.36 | ) |
| Earnings per share (diluted) | (0.75 | ) | (1.31 | ) | 1.21 | (0.36 | ) | ||||
| Weighted average common shares outstanding: | |||||||||||
| Basic | 5,544 | 5,439 | 5,514 | 5,421 | |||||||
| Diluted | 5,544 | 5,439 | 5,565 | 5,421 | |||||||
| Consolidated Condensed Balance Sheets | ||||
| (Amounts in thousands) | March 31, 2026 | March 31, 2025 | ||
| Cash and cash equivalents | $ | 26,928 | $ | 27,321 |
| Other current assets | 79,340 | 75,364 | ||
| Total current assets | 106,268 | 102,685 | ||
| Noncurrent assets | 321,479 | 330,663 | ||
| Total assets | $ | 427,747 | $ | 433,348 |
| Liabilities | $ | 241,502 | $ | 273,518 |
| Stockholders’ equity | 186,245 | 159,830 | ||
| Total liabilities and stockholders’ equity | $ | 427,747 | $ | 433,348 |
| Reconciliation of Non-GAAP Measures (Unaudited) | |||||||||||||
| GAAP Operating Income (Loss) to Non-GAAP Adjusted Operating Income (“AOI”) | |||||||||||||
| (Amounts in thousands, except per share data) | Three Months Ended | Year Ended March 31, | |||||||||||
| March 31, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||
| Operating income (GAAP) | $ | 2,748 | $ | 1,469 | $ | 18,511 | $ | 16,336 | |||||
| Amortization of intangible assets | 4,485 | 6,143 | 18,017 | 19,145 | |||||||||
| Stock-based compensation expense | 6,793 | 3,138 | 17,868 | 13,142 | |||||||||
| Depreciation expense | 1,265 | 1,354 | 5,254 | 5,382 | |||||||||
| AOI (non-GAAP) | $ | 15,291 | $ | 12,104 | $ | 59,650 | $ | 54,005 | |||||
| Unusual items – before tax | |||||||||||||
| Non-cash GKE inventory step-up1 | $ | -- | $ | -- | $ | -- | $ | 1,232 | |||||
| GKE integration costs2 | -- | 152 | -- | 1,500 | |||||||||
| Severance costs3 | -- | -- | 848 | -- | |||||||||
| CEO transition costs4 | 2,989 | -- | 2,989 | -- | |||||||||
| Total impact of unusual items on AOI – before tax | $ | 2,989 | $ | 152 | $ | 3,837 | $ | 2,732 | |||||
| AOI excluding unusual items (non-GAAP) | $ | 18,280 | $ | 12,256 | $ | 63,487 | $ | 56,737 | |||||
| AOI per share - basic (non-GAAP) | $ | 2.76 | $ | 2.23 | $ | 10.82 | $ | 9.96 | |||||
| AOI per share - diluted (non-GAAP) | $ | 2.76 | 2.23 | $ | 10.72 | 9.96 | |||||||
| AOI excluding unusual items per share – basic (non -GAAP) | $ | 3.30 | 2.25 | $ | 11.51 | 10.47 | |||||||
| AOI excluding unusual items per share – diluted (non-GAAP) | $ | 3.30 | 2.25 | $ | 11.41 | 10.47 | |||||||
| Weighted average common shares outstanding: | |||||||||||||
| Basic | 5,544 | 5,439 | 5,514 | 5,421 | |||||||||
| Diluted | 5,544 | 5,439 | 5,565 | 5,421 | |||||||||
| 1Non-cash cost of revenues expense associated with the step up to fair value of GKE inventory due to application of purchase accounting | |||||||||||||
| 2GKE integration costs primarily consist of consulting costs for the integration of the acquiree, including the implementation of the enterprise resource planning tool and professional auditing services related to the audit of purchase accounting | |||||||||||||
| 3Severance charges recorded in 2Q26 for individuals in each of our business units and corporate functions. The charges affected employees in each of our Asia Pacific, Europe, and North America geographies. | |||||||||||||
| 4CEO transition costs primarily consist of severance costs, fees paid to a search firm, and legal costs. | |||||||||||||
Organic and Core Organic Revenues Growth (Unaudited)
| Three Months Ended March 31, 2025 | Year Ended March 31, 2025 | |||
| Total revenues growth | 2.6 | % | 3.4 | % |
| Impact of acquisitions | -- | % | -- | % |
| Organic revenues growth(non-GAAP) | 2.6 | % | 3.4 | % |
| Currency translation | (3.2 | )% | (2.2 | )% |
| Core organic revenues growth(non-GAAP) | (0.6 | )% | 1.2 | % |
Free Cash Flow (Unaudited)
| (Amounts in thousands, except per share data) | Year Ended March 31, | |||||
| 2026 | 2025 | |||||
| Net cash provided by operating activities (GAAP) | $ | 42,831 | $ | 46,808 | ||
| Purchases of property, plant and equipment (GAAP) | (3,250 | ) | (4,249 | ) | ||
| Free cash flow (non-GAAP) | $ | 39,581 | $ | 42,559 | ||
Supplemental Information Regarding Non-GAAP Financial Measures
In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), we provide non-GAAP adjusted operating income, non-GAAP adjusted operating income per share amounts, non-GAAP adjusted operating income excluding unusual items, non-GAAP adjusted operating income excluding unusual items per share amounts, non-GAAP organic revenues growth, and non-GAAP core organic revenues growth, in order to provide meaningful supplemental information regarding our operational performance. We believe that the use of these non-GAAP financial measures, in addition to GAAP financial measures, helps investors to gain a better understanding of our operating results, consistent with how management measures and forecasts our operating performance, especially when comparing such results to previous periods and to the performance of our competitors. Such measures are also used by management in their financial and operating decision-making and for compensation purposes. This information facilitates management's internal comparisons to our historical operating results as well as to the operating results of our competitors. Since management finds these measures to be useful, we believe that our investors can benefit by evaluating both GAAP and non-GAAP results.
The non-GAAP measures of adjusted operating income and adjusted operating income per share presented in the reconciliation above are defined to exclude the non-cash impact of amortization of intangible assets acquired in a business combination, stock-based compensation, depreciation and impairment of goodwill and long-lived assets. To calculate adjusted operating income, we exclude, as applicable:
- Impairments of long-lived assets, as such charges are outside of our normal operations and in most cases are difficult to accurately forecast.
- Stock-based compensation expense, as it is a non-cash charge and costs calculated for this expense vary in accordance with the stock price on the date of grant.
- Depreciation expense, as it is a non-cash charge.
- The expense associated with the amortization of acquisition-related intangible assets, as a significant portion of the purchase price for acquisitions may be allocated to intangible assets that have lives of up to 20 years. Exclusion of amortization expense allows comparisons of operating results that are consistent over time for both our newly acquired and long-held businesses and with both acquisitive and non-acquisitive peer companies.
The non-GAAP measures of adjusted operating income excluding unusual items and adjusted operating income excluding unusual items per share presented in the reconciliation above are defined as adjusted operating income less unusual items that are not on-going and are related to a specific transaction. We exclude these unusual items as they are outside of normal operations and are not on-going.
Our management recognizes that items such as amortization of intangible assets, stock-based compensation expense, depreciation expense and impairment losses on goodwill and long-lived assets can have a material impact on our operating and net income. To gain a complete picture of all effects on our profit and loss from any and all events, management relies (and investors should rely) on the GAAP consolidated statements of operations. The non-GAAP numbers focus instead on our core operating business.
Readers are reminded that non-GAAP measures are merely a supplement to, and not a replacement for, or superior to, financial measures prepared according to GAAP. They should be evaluated in conjunction with the GAAP financial measures. Our non-GAAP information may be different from the non-GAAP information provided by other companies.
