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 was 28.7% 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% and 1.2%, respectively
Operating income increased 13.3% to $18,511
Non-GAAP adjusted operating income excluding unusual items increased 11.9% and was 25.5% 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 2.6% organic (-0.6% core organic) revenues growth in 4Q26 resulting from significant growth in SDC, which was aided by a reduction in backlog to more normalized levels, a less volatile quarter in CG and a positive impact from FX. This strong growth was mostly offset by a significant decline in BPD revenues, due to challenges associated with commercial execution during the quarter as well as shipping delays associated with export controls that prevented the shipment of several Peptide systems during the quarter. While we have experienced some loosening of export controls for Peptide systems over the past 30 days, we know that there is still work to be done to enable BPD to return to more consistent and acceptable growth rates. Despite the challenges we face in BPD, we expect our overall revenues to return to positive core organic growth in 1Q27," said John Sakys, Chief Financial Officer of Mesa.
"Profitability for the quarter, as measured by AOI excluding unusual items as a percentage of revenues, was strong at 28.7% versus 19.7% for 4Q25, driven largely by SDC backlog clearance, improving volumes, and favorable product mix and benefits from cost realignment actions taken at the end of 2Q26, which more than overcame headwinds of 70 bps from FX and a negligible impact from tariffs. Moving forward we expect this percentage to moderate closer to the mid 20's as our product mix normalizes and we continue to increase investments in SDC during the first half of FY27 aimed at driving future organic growth," added Mr. Sakys.
"For the year, revenues were $249,130 which resulted in 3.4% organic (1.2% core organic) revenues growth. Profitability as measured by AOI excluding unusual items increased 11.9% to $63,487, or 25.5% as a percentage of revenues, an increase of 200 bps versus FY25, despite facing FX headwinds of 80 bps. For the year, we generated $39,581 of free cash flow4 which was used primarily to pay down debt, including $14,700 during the fourth quarter, which reduced our total Net Leverage Ratio to 2.11," concluded Mr. Sakys.
Financial Results (unaudited, amounts in thousands, except per share data)
Fourth Quarter Fiscal Year 2025Total revenues were $63,724, an increase of 2.6% compared to 4Q26. Operating income increased 87% to $2,748 (which included $6,720 of CEO transition costs of which $3,731 was comprised of accelerated stock compensation expense). Net loss was $4,136, a decrease of 41.9% or $(0.75) per diluted share of common stock. On a non-GAAP basis, core organic revenues growth was (0.6)% and AOI increased 26.3% to $15,291, or $2.76 per diluted share of common stock, compared to 4Q25. As detailed in the Unusual Items table below, AOI for 4Q26 and 4Q25 was negatively impacted by unusual items totaling $2,989 and $152, respectively. Excluding the unusual items for 4Q25, AOI increased 49.2% to $18,280. A reconciliation of non-GAAP measures is provided in the tables below. Total Net Leverage Ratio was 2.11 as of March 31, 2026.
Full Fiscal Year 2026
Total revenues were $249,130, an increase of 3.4% compared to FY25. Operating income increased 13.3% to $18,511. Net income was $6,712, an increase of 440.0% or $1.21 per diluted share of common stock. On a non-GAAP basis, core organic revenues growth was 1.2% and AOI increased 10.5% to $59,650, or $10.72 per diluted share of common stock compared to FY25. As detailed in the Unusual Items table below, AOI for FY26 and FY25 was negatively impacted by unusual items totaling $3,837 and $2,732, respectively. Excluding the unusual items for FY26 and FY25, AOI increased 11.9% to $63,487. A reconciliation of non-GAAP measures is provided in the tables below.
Division Performance
Revenues
Organic RevenuesGrowth1
Core Organic RevenuesGrowth
(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 (46% of revenues in 4Q26) revenues were $29,136 for the quarter, which resulted in organic revenues growth of 17.7% for the quarter and 8.7% for the year. During 4Q26, we were able to continue the acceleration of our production capabilities we first saw in 3Q26 and we were able to reduce our backlog by approximately $2.0M to more normalized levels, which, along with modest price increases and the impact of FX, resulted in strong organic growth for both the quarter and the full year. Without the backlog clearance, the growth for 4Q26 would have been approximately 9.3%. While we have made significant progress in improving our manufacturing processes during FY26, which has allowed for more consistent production during the second half of FY26, there is still more work to be done until we can be confident that all of the issues we have historically experienced are fully resolved.
Gross profit percentage increased 270 bps for the quarter and 10 bps for the year (normalizing for $1,232 of non-cash inventory step up purchase accounting charges in FY25) primarily due to increases in revenues, partially offset by the impact of FX. Excluding the impact of FX, gross profit percentage would have been 74.3% for the quarter and 71.3% for the year.
Calibration Solutions (21% of revenues in 4Q26) revenues were $13,559 for the quarter, which resulted in organic revenues growth of 2.3% for the quarter and 3.5% for the year. The increases were primarily driven by commercial momentum and price increases. Gross profit percentage increased 520 bps for the quarter and 50 bps for the year. The increase for 4Q26 was primarily due to increased revenues and favorable product mix. The increase for FY26 was primarily due to increased revenues and product mix, partially offset by 20 bps of tariffs.
Biopharmaceutical Development (14% of revenues in 4Q26) revenues were $8,847 for the quarter, which resulted in organic revenues decline of 29.9% for the quarter and 0.2% for the year. The decrease for the quarter was driven by significantly lower sales for both IAS and Peptide systems, primarily due to commercial execution and shipping delays associated with export controls that prevented the shipment of several Peptide systems during the quarter, partially offset by the impact of FX. The decrease for the year was driven by lower IAS sales and shipping delays associated with export controls, partially offset by growth in peptides and the impact of FX.
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 (19% of revenues in 4Q26) revenues were $12,182 for the quarter, which resulted in organic revenues growth of 5.8% for the quarter and an organic revenues decline of 3.6% for the year. The increase for the quarter was driven by growth outside of China of 11.4% and the impact of FX, partially offset by a contraction in revenues from China of approximately $500, or 34%. The decrease for the year was driven by a contraction of China revenues of approximately $5.2 million, or 57.4%, partially offset by 9.1% growth outside of China and the impact of FX. We expect to see flat or a significantly slower decline in revenues from China moving forward and expect to continue our modestly positive momentum in FY27 in the rest of the world.
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 $10 million as compared to 12 months trailing EBITDA. EBITDA, a non-GAAP metric, for purposes of this calculation, is defined as net income plus the sum of interest expense, income tax expense, depreciation, amortization, unusual or non-recurring non-cash charges and stock compensation expense.
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 ...
