How Long Can NeoGenomics Keep Burning Cash?
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NeoGenomics (NEO) is spending more cash than it brings in. The precision oncology company, which sells cancer tests to community oncologists, burned $20.7 million in the quarter that ended September 30, 2026, after running the business and paying for buildings and equipment. It has now burned cash in three of the last four quarters. Take a guess: at that pace, how many quarters would the cash it holds cover?
How Fast Is NeoGenomics Burning Cash?
The cash NeoGenomics burned in the September quarter equaled 9.9% of its sales. A year earlier, it brought in slightly more cash than it spent.
| Fiscal quarter | Sales | Cash the business brought in | Cash left after spending on buildings and equipment |
|---|---|---|---|
| Q2 FY2025 (ended 2025-06-30) | $181 million | $20.3 million | $14.0 million |
| Q3 FY2025 (ended 2025-09-30) | $188 million | $8.88 million | $0.570 million |
| Q4 FY2025 (ended 2025-12-31) | $190 million | $1.34 million | -$6.53 million |
| Q1 FY2026 (ended 2026-03-31) | $187 million | -$8.14 million | -$13.1 million |
| Q2 FY2026 (ended 2026-06-30) | $202 million | $20.0 million | $11.7 million |
| Q3 FY2026 (ended 2026-09-30) | $209 million | -$8.88 million | -$20.7 million |
Each row is one fiscal quarter. A negative figure is cash going out. The last column is free cash flow.
Over the four quarters to September, the company burned about two-thirds more cash than in the four quarters before. The burn is growing, though it swings from one quarter to the next. In the quarter that ended in June 2026, NeoGenomics brought in more cash than it spent. Its sales have kept rising, remaining up on a year earlier in each of the last eight quarters.
How Long Would NeoGenomics’ Cash Last?
NeoGenomics held $139 million in cash and short-term investments at the end of September. If the company raised nothing and kept burning at the average pace of the past four quarters, that cash would last about five years. At the September quarter’s pace alone, it would last about seven quarters. Management said that quarter’s cash flow included a roughly $10 million DOJ settlement payment. Debt stands at $449 million, which is more than three times that cash. So the cash is ample at the past year’s pace, but it would cover less than two years if every quarter looked like September. Both counts assume none of that debt is repaid in the meantime.
Who Has Paid For The Burn So Far?
Existing shareholders have barely paid for the burn. Dilution leaves each existing share with a smaller piece of the company once new shares are sold. Between September 2024 and September 2026, NeoGenomics’ diluted share count rose just 1.3%. The company’s debt is lower than the $606 million of September 2024, though it is higher than a year ago. So over two years, the company has paid for the burn out of the cash it already had.
What Has To Change At NeoGenomics
The quarterly burn has to shrink. Management tied the September quarter’s cash flow to three items: a payment of roughly $10 million for a DOJ settlement it had already reserved for; temporary effects from its move to XiFin, a new revenue cycle management platform; and continued investment in modernizing and scaling its infrastructure. Management expects the effect of the XiFin switch on its receivables to normalize toward the fourth quarter and into early 2027.
Sales grew 11.4% from a year earlier in the September quarter, and management raised its revenue forecast for 2026. When NeoGenomics next reports, expected in February 2027, the figure to watch is the cash it burns each quarter. In the quarter that ended in September, that figure was $20.7 million.
How To Act On NEO?
Not necessarily on NeoGenomics alone, if your goal is long-term wealth. Wealth is built by owning the companies that keep outperforming, the leaders of their industries, wherever they are. Here are two companies from NeoGenomics’ own industry that have beaten it. Over the five years to October 2026, Quest Diagnostics stock rose 89% and RadNet stock rose 136%, while NeoGenomics stock fell 62%.
Finding companies like these takes comparison across industries and sectors, and that is what the Trefis High Quality (HQ) Portfolio does. It holds 30 quality companies in equal weight and, since its inception in September 2020, has returned more than 105%, ahead of a benchmark that combines the S&P 500, S&P Mid-cap and Russell 2000. See how we find the leaders.
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