EL7.AI
StocksMedium•10 November 2026•
4 min read

Mesa Labs Expects Revenue of Up to $255 Million, Authorizes $40 Million Share Buyback

Key Facts

1Mesa Labs expects revenue of $250 million to $255 million and adjusted earnings of $66 million to $68 million for the fiscal year ending March 31, 2027.
2The company expects adjusted earnings growth of 5% to 8% and revenue growth of 0% to 2% in fiscal 2027.
3The board authorized a new share repurchase program of up to $40 million, expiring on Dec. 31, 2028.
4Second-quarter revenue rose 2.6% to $62.336 million, and net income increased 75.3% to $4.341 million.

On Nov. 9, Mesa Labs issued its first annual guidance for fiscal 2027, forecasting revenue of $250 million to $255 million and adjusted EBITDA of $66 million to $68 million for the year ending March 31, 2027. The company said in its filing with the U.S. Securities and Exchange Commission that the adjusted earnings range reflects expected growth of 5% to 8% compared with fiscal 2026. That compares with expected revenue growth of 0% to 2%, indicating that targeted earnings growth is faster than sales growth. The guidance comes as performance across the company’s businesses remains uneven: sterilization and disinfection control grew, while revenue in clinical genomics and biopharmaceutical development declined. The company also said its board authorized a new share repurchase program of up to $40 million.

The earnings comparison is based on adjusted EBITDA of $62.969 million in fiscal 2026. Mesa said its fiscal 2027 guidance includes the expected impact of the savings plan it announced on Oct. 13, after reinvesting part of the savings. The guidance also factors in an expected decline in clinical genomics revenue. The adjusted earnings range excludes restructuring costs, according to the filing. The chief executive described the guidance as "conservative" on the earnings call and said the company built it on half-year data amid the changes it had made.

In the second quarter of fiscal 2027, revenue was $62.336 million, up 2.6% from the year-earlier period. Operating income rose 77.6% to $8.388 million, while net income increased 75.3% to $4.341 million. First-half revenue was $122.474 million, compared with $120.280 million in the corresponding period of the prior fiscal year. Adjusted EBITDA reached 27.8% of revenue in the quarter, compared with 23.5% in the second quarter of fiscal 2026. The company said it repaid $11.406 million of debt during the quarter and reduced its net leverage ratio to 1.75 as of Sept. 30, 2026.

Sterilization and disinfection control led quarterly sales growth, with organic revenue rising 14.6% to $25.342 million. The company attributed much of the comparison to delayed order fulfillment in the year-earlier period because of production challenges. It added that production issues had been addressed across most product lines. By contrast, organic revenue in biopharmaceutical development fell 8.2% to $12.779 million. Mesa said the decline was mainly due to lower sales of peptide instruments, following delays in addressing export restrictions.

In clinical genomics, organic revenue fell 8.8% to $10.165 million in the second quarter. The company expects the business’s revenue to continue declining in the second half of fiscal 2027 and into fiscal 2028 as it reduces lower-margin products and accounts. The decline is also reflected in third-quarter expectations: Mesa expects revenue to be close to the year-earlier level, mainly because of weakness in clinical genomics revenue. The company said it expects revenue to continue growing when that business is excluded. The guidance therefore combines limited overall growth with continued pressure from one of the company’s businesses.

In October, Mesa announced a restructuring plan focused mainly on cuts in clinical genomics, with additional reductions in corporate roles. It estimated pretax charges related to the plan of $2.6 million to $3.4 million, mostly in the second half of fiscal 2027. The company said the savings plan will reduce annual net costs by about $5 million after reinvestment, once fully reflected in the annual cost structure by the end of fiscal 2028. The expected impact of the plan, after reinvestment of part of the savings, is included in the assumptions underlying fiscal 2027 guidance. The adjusted earnings range excludes restructuring costs, according to the filing.

The board ended the previous buyback program, authorized in 2005, on Nov. 4 and approved a new program to repurchase up to $40 million of common stock. The new program expires on Dec. 31, 2028. The program does not obligate the company to buy a specific number of shares, according to the filing. The decision comes alongside the company’s repayment of $11.406 million of debt in the second quarter. In after-hours trading following the earnings announcement, the stock fell 1.42% to $126, according to Investing.com; the report said adjusted earnings per share of $0.75 missed analysts’ estimate of $1.59, despite revenue exceeding expectations.