Mesa Laboratories, Inc. (NASDAQ: MLAB) announced results for the second fiscal quarter of 2027 (2Q27) ended September 30, 2026, and provided full-year guidance for the first time. The company reported total revenues of $62,336, representing a 2.6% increase compared to the same period in the prior year. On a non-GAAP basis, constant currency organic revenue growth was 3.1%. Adjusted EBITDA increased 21.1% to $17,317, or 27.8% of revenues.
Operating income rose 77.6% to $8,388, and net income increased 75.3% to $4,341, or $0.75 per diluted share, compared to $0.45 per share in 2Q26. The company repaid $11,406 of debt during the quarter, reducing its Total Net Leverage Ratio to 1.75.
Results were driven primarily by the Sterilization and Disinfection Control (SDC) division, which saw revenues increase 14.6% to $25,342. The company noted that production issues causing fulfillment delays in the prior year have been resolved for most product lines. The SDC division achieved its highest twelve-month total revenue in its history at $103,897 over the trailing twelve months.
The Biopharmaceutical Development (BPD) division experienced an organic revenue decline of 8.2% to $12,779, attributed to export-control processing delays for certain products. The Calibration Solutions (CS) division grew organic revenues by 3.5% to $14,050, while the Clinical Genomics (CG) division declined 8.8% to $10,165 due to timing of customer orders and lower revenues in China. The company stated it is focusing CG on pharmacogenomics and oncology and expects revenues to decline in the second half of fiscal 2027.
Mesa Laboratories issued full-year fiscal 2027 guidance for the first time. The company expects revenues of $250,000 to $255,000 and adjusted EBITDA of $66,000 to $68,000. This guidance reflects the impact of a savings plan announced in October 2026, which aims to reduce annualized operating costs by approximately $9,300, with a net reduction of approximately $5,000 after reinvestment. The company also announced the termination of its previous share repurchase program and authorized a new program to repurchase up to $40,000 of common stock, with the program expiring on December 31, 2028.
