Q2 FY2027 (2Q27, three months ended September 30, 2026)
Filed Nov 9, 2026Mesa Labs 2Q27: revenues up 2.6% to $62,336, Adjusted EBITDA up 21.1% to $17,317, first full-year FY2027 guidance issued
Profitability improved sharply: GAAP operating income rose 77.6% to $8,388 and Adjusted EBITDA margin reached 27.8% versus 23.5%. Revenue growth was modest at 2.6% (3.1% constant currency organic). Biopharmaceutical Development (-8.2% organic) and Clinical Genomics (-8.8% organic) declined, management guided third-quarter revenues to be about flat, and full-year revenue growth is guided to approximately 0% to 2%.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenues, three months ended Sep 30, 2026GAAP | $62.34M | – | 2.6% |
| Organic revenues growth, three monthsnon-GAAP | 2.6% | – | – |
| Constant currency organic revenues growth, three monthsnon-GAAP | 3.1% | – | – |
| Revenues excluding Clinical Genomics, three monthsnon-GAAP | $52.17M | – | 5.2% (growth, non-GAAP) |
| Constant currency organic revenues growth excluding Clinical Genomics, three monthsnon-GAAP | 5.8% | – | – |
| Cost of revenues, three monthsGAAP | $22.46M | – | – |
| Gross profit, three monthsGAAP | $39.88M | – | – |
| Operating expenses, three monthsGAAP | $31.49M | – | – |
| Operating income, three monthsGAAP | $8.39M | – | 77.6% |
| Nonoperating expense (income), three monthsGAAP | $2.35M | – | – |
| Earnings before income taxes, three monthsGAAP | $6.03M | – | – |
| Income tax expense (benefit), three monthsGAAP | $1.69M | – | – |
| Net income, three monthsGAAP | $4.34M | – | 75.3% |
| Earnings per share (basic), three monthsGAAP | $0.77 | – | – |
| Earnings per share (diluted), three monthsGAAP | $0.75 | – | – |
| EBITDA, three monthsnon-GAAP | $13.72M | – | – |
| Adjusted EBITDA, three monthsnon-GAAP | $17.32M | – | 21.1% |
| Adjusted EBITDA as % of revenues, three monthsnon-GAAP | 27.8% | – | – |
| Adjusted operating income (AOI), three monthsnon-GAAP | $17.33M | – | – |
| AOI excluding unusual items, three monthsnon-GAAP | $17.33M | – | – |
| Revenues, six months ended Sep 30, 2026GAAP | $122.5M | – | 1.8% |
| Organic revenues growth, six monthsnon-GAAP | 1.8% | – | – |
| Constant currency organic revenues growth, six monthsnon-GAAP | 1.7% | – | – |
| Revenues excluding Clinical Genomics, six monthsnon-GAAP | $102.0M | – | 3.2% (growth, non-GAAP) |
| Cost of revenues, six monthsGAAP | $43.58M | – | – |
| Gross profit, six monthsGAAP | $78.89M | – | – |
| Gross margin, six monthsnon-GAAP | 64.4% | – | – |
| Operating expenses, six monthsGAAP | $63.47M | – | – |
| Operating income, six monthsGAAP | $15.42M | – | – |
| Nonoperating expense (income), six monthsGAAP | $5.03M | – | – |
| Earnings before income taxes, six monthsGAAP | $10.39M | – | – |
| Income tax expense, six monthsGAAP | $3.22M | – | – |
| Net income, six monthsGAAP | $7.17M | – | – |
| Earnings per share (diluted), six monthsGAAP | $1.25 | – | – |
| EBITDA, six monthsnon-GAAP | $26.07M | – | – |
| Adjusted EBITDA, six monthsnon-GAAP | $32.84M | – | – |
| Adjusted EBITDA as % of revenues, six monthsnon-GAAP | 26.8% | – | – |
| AOI, six monthsnon-GAAP | $32.36M | – | – |
| AOI excluding unusual items, six monthsnon-GAAP | $32.74M | – | – |
| Adjusted EBITDA, fiscal year ended March 31, 2026non-GAAP | $62.97M | – | – |
| Total Net Leverage Ratio, as of Sep 30, 2026other | 1.75 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Sterilization and Disinfection Control (SDC)Company states the quarter largely reflects comparison with 2Q26, when revenues were negatively impacted by product fulfillment delays caused by production challenges. Gross profit percentage rose 260 bps versus the same quarter last year, which the company attributes primarily to lower contract labor and consulting costs and higher revenues on a partially fixed cost base. Constant currency organic growth was 15.4% (three months) and 4.7% (six months). Last twelve months revenues were $103,897, up 8.5%. Six-month gross profit was $34,866 at a 69.9% gross margin. | $25,342 (three months); $49,847 (six months) | – | 14.6% organic (three months); 4.9% organic (six months) |
| Biopharmaceutical Development (BPD)Company attributes the decline primarily to lower peptide hardware sales, with export-control processing delays on certain of these products. Immunoassays revenues were relatively flat as higher consumables and services offset lower instrument sales. Gross profit percentage rose 670 bps, which the company attributes to favorable product mix. Constant currency organic growth was -7.2% (three months) and -1.6% (six months). Six-month gross profit was $15,898 at a 64.0% gross margin. | $12,779 (three months); $24,838 (six months) | – | -8.2% organic (three months); -2.2% organic (six months) |
| Calibration Solutions (CS)Company attributes the organic increase primarily to increased sales volumes across several product lines, resulting from continued strong commercial execution and the impact of price increases. Gross profit percentage decreased 110 bps, which the company primarily attributes to unfavorable product mix and higher transportation costs. Constant currency organic growth was 3.5% (three months) and 5.4% (six months). Six-month gross profit was $16,411 at a 60.0% gross margin. | $14,050 (three months); $27,335 (six months) | – | 3.5% organic (three months); 5.5% organic (six months) |
| Clinical Genomics (CG)Company attributes the decline primarily to timing of consumables order fulfillment for a large customer; revenues from China also declined modestly. Gross profit percentage decreased 80 bps, which the company primarily attributes to unfavorable product mix, as consumables carrying higher margins were a lower portion of revenues, plus lower revenues on a partially fixed cost base. Constant currency organic growth was -9.1% (three months) and -5.2% (six months). Company expects CG revenues to decline in the second half of fiscal 2027 and into fiscal 2028 as it de-emphasizes lower-margin products and accounts. Six-month gross profit was $11,715 at a 57.3% gross margin. | $10,165 (three months); $20,454 (six months) | – | -8.8% organic (three months); -4.6% organic (six months) |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Fiscal year 2027 (ending March 31, 2027), first full-year guidance issued outlook
- Revenue$250,000 to $255,000 (amounts in thousands, as printed in release)
- NoteAdjusted EBITDA of $66,000 to $68,000 (non-GAAP; excludes restructuring charges)
- NoteAdjusted EBITDA guidance compares with $62,969 for fiscal year 2026, an increase of approximately 5% to 8%
- NoteRevenues growth of approximately 0% to 2% for fiscal 2027
- NoteThird quarter revenues expected to be about flat compared with the prior-year period, mainly because of lower Clinical Genomics revenues
- NoteGuidance reflects the expected impact of the Savings Plan, net of reinvestment, and the lower Clinical Genomics revenues expected in fiscal 2027
- NoteCompany is unable to reconcile fiscal 2027 Adjusted EBITDA outlook to forecasted net income without unreasonable effort
Capital returns
- On November 4, 2026, the Board terminated the existing share repurchase program (authorized in 2005) and authorized a new program to repurchase up to $40,000 of common stock
- Program expires December 31, 2028; no obligation to acquire any particular amount; may be modified, suspended or terminated at Board discretion
- Company expects to fund repurchases with cash on hand and cash from operations
- No repurchase amount executed in 2Q27 is printed in the release
- Dividends: not mentioned in the release
What drove it
- Company states growth was driven by SDC and CS, partially offset by BPD (export-control processing delays) and CG
- Company states SDC's 2Q27 growth largely reflects the comparison with 2Q26, when product fulfillment was delayed by production challenges, which it says have been resolved for most product lines
- Company states the FDA inspected the Bozeman, Montana facility in September and issued no Form 483 observations at the close of the inspection
- Company states Adjusted EBITDA margin improved to 27.8% from 23.5%, and attributes SDC gross margin gains primarily to lower contract labor and consulting costs
- Savings Plan announced October 13, 2026: expected annualized operating cost reduction of approximately $9,300, with approximately $4,300 reinvested, for a net annualized reduction of approximately $5,000
- No restructuring charges were recorded in 2Q27 because the Restructuring Program was approved after quarter-end
- Company states the Restructuring Program includes the exit of its Hamburg, Germany facility when its lease expires in February 2027
Concerns
- Biopharmaceutical Development revenues fell 8.2% organic in the quarter, with company citing export-control processing delays
- Clinical Genomics revenues fell 8.8% organic in the quarter, and company expects further declines in the second half of fiscal 2027 and into fiscal 2028
- Third-quarter revenues are guided to be about flat year over year
- Full-year revenues growth guided to approximately 0% to 2%, with fiscal 2027 Adjusted EBITDA excluding restructuring charges
- Restructuring Program expected to produce total pre-tax charges of approximately $2,600 to $3,400, primarily in the second half of fiscal 2027; GAAP net income outcome depends on income tax, FX remeasurement, timing of charges and possible impairments, which company says it cannot forecast reliably
- Company states Calibration Solutions gross profit percentage fell 110 bps on unfavorable mix and higher transportation costs
- Six-month GAAP diluted EPS of $1.25 is below the $1.30 printed for the prior-year six months, even though quarterly net income rose
What to watch
- Third-quarter fiscal 2027 revenues versus the prior-year quarter (guided about flat)
- Clinical Genomics revenue trajectory as the business is reshaped, and the quarterly Revenues excluding Clinical Genomics disclosure the company says it will continue to report
- BPD export-control processing timing and peptide hardware sales
- Realization of the Savings Plan: $9,300 gross annualized savings and $4,300 reinvestment, with full run-rate by end of fiscal 2028
- Restructuring charges of $2,600 to $3,400 pre-tax, timing in second half of fiscal 2027
- Pace of share repurchases under the $40,000 authorization and continued debt reduction
- Whether fiscal 2027 Adjusted EBITDA of $66,000 to $68,000 is achieved
Balance sheet and cash flow
- Repaid $11,406 of debt in the second quarter of fiscal 2027 (company statement)
- Total Net Leverage Ratio of 1.75 as of September 30, 2026 (company defines it as total debt minus unrestricted cash in excess of $10,000 versus trailing EBITDA as defined in its Credit Facility)
- Cash and cash equivalents: $22,312 as of September 30, 2026 versus $26,928 as of March 31, 2026
- Total assets: $407,735 as of September 30, 2026 versus $427,747 as of March 31, 2026
- Liabilities: $213,139 as of September 30, 2026 versus $241,502 as of March 31, 2026
- Stockholders' equity: $194,596 as of September 30, 2026 versus $186,245 as of March 31, 2026
- Operating cash flow, free cash flow and total debt outstanding are not printed in the release
Analysis
Mesa Laboratories reported second-quarter fiscal 2027 revenues of $62,336 on a GAAP basis, an increase of 2.6% from $60,737, with organic growth of 2.6% and constant currency organic growth of 3.1%. The top line was modest, but the profit lines moved sharply: GAAP operating income rose 77.6% to $8,388 from $4,724, GAAP net income rose 75.3% to $4,341 from $2,476, and diluted EPS was $0.75 against $0.45. Non-GAAP Adjusted EBITDA rose 21.1% to $17,317 from $14,299, and its margin widened to 27.8% from 23.5%. Cost of revenues fell to $22,458 from $23,406 while gross profit rose to $39,878 from $37,331, and operating expenses declined to $31,490 from $32,607. Nonoperating expense fell to $2,354 from $2,725. The company attributes the SDC gross margin gain mainly to lower contract labor and consulting costs.
The division mix is the central point of the read. SDC grew 14.6% organic to $25,342, which the company says largely reflects a weak prior-year comparison caused by production-related fulfillment delays. Revenues excluding Clinical Genomics grew 5.2% to $52,171, a more useful signal of the core businesses. In contrast, BPD fell 8.2% organic to $12,779 on export-control delays, and CG fell 8.8% organic to $10,165. Management says it is moving CG toward pharmacogenomics, oncology and high-utilization accounts and managing it for profitability, and it expects CG revenues to decline in the second half of fiscal 2027 and into fiscal 2028. Six-month GAAP revenues were $122,474, up 1.8% from $120,280, and six-month net income of $7,171 was slightly below $7,218 in the prior-year period.
Balance sheet and capital allocation moved in the same direction. The company repaid $11,406 of debt in the quarter, and the Total Net Leverage Ratio was 1.75 at September 30, 2026. Total assets declined to $407,735 from $427,747 at March 31, 2026, liabilities fell to $213,139 from $241,502, and stockholders' equity rose to $194,596 from $186,245. Cash fell to $22,312 from $26,928. On November 4, 2026, the Board replaced the 2005 repurchase authorization with a new program of up to $40,000 that runs through December 31, 2028, to be funded from cash on hand and operations. Operating cash flow and total debt are not printed, so the cash conversion of the earnings improvement cannot be assessed from this release.
Fiscal 2027 is the first year of formal guidance: revenues of $250,000 to $255,000 and Adjusted EBITDA of $66,000 to $68,000, against $62,969 of Adjusted EBITDA in fiscal 2026. The Adjusted EBITDA range implies improvement of roughly 5% to 8% on revenue growth of approximately 0% to 2%, according to the company's own figures. Third-quarter revenues are guided to be about flat year over year. The Savings Plan (approximately $9,300 gross annualized cost reduction, approximately $4,300 reinvested) and restructuring charges of $2,600 to $3,400 pre-tax, primarily in the second half, are central to the guidance. Because no prior outlook was provided to this analysis, no comparison against earlier guidance is made.
Management, verbatim
We have built it conservatively, on a half-year of data under the changes we have made, because a number that our shareholders can count on is worth more than one that flatters a quarter
Dr. Siddhartha Kadia, President and Chief Executive Officer
Adjusted EBITDA was 27.8% of revenues versus 23.5% in 2Q26. In the second quarter, we repaid $11,406 of debt and reduced our Total Net Leverage Ratio to 1.75
John Sakys, Chief Financial Officer
Not in the filing
stated, not guessed- Prior-year and prior-quarter values for segment revenues (SDC, BPD, CS, CG) in dollars; only organic growth percentages are printed
- Gross margin percentage for the three-month period (only six-month combined gross margin figures are printed)
- Prior-year percentage change for gross profit, operating expenses, nonoperating expense and income tax, and prior-year gross margin figures
- Effective tax rate, interest income detail beyond the reconciliation lines, and total debt outstanding
- Operating cash flow, free cash flow, capital expenditures and dividends
- Shares repurchased during 2Q27 and remaining authorization after any repurchases
- Quarter-over-quarter comparisons (the release does not print sequential figures)
- Consensus estimates, analyst expectations and share price reaction
- Gross margin, operating expense and tax rate guidance for fiscal 2027
- Balance sheet prior-period comparison for September 30, 2026 versus March 31, 2026 is printed, but no year-ago quarter balance sheet is printed
- Current-year total Net Leverage Ratio comparison to prior period
- Prior-year segment-level gross profit and gross margin for three months (only percentage-point changes printed)
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.