Q2 2026 Neogen Corp Earnings Call

At this time. All lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call, you require me to the assistance. Please press star zero for the operator.

This call has been recorded on Thursday, January, 8th, 2026. I would now like to turn the conference over to Bill. Wally head of investor relations. Please go ahead.

Thank you for joining us this morning for the discussion of the second quarter of our 2026 fiscal year.

I'll briefly cover the non-gaap and forward-looking language before, passing the call over to our CEO. Mike nif who will be followed by our new CFO, Brian Ricky.

Before the market opened today, we published our second quarter results, as well as the presentation with both documents available in the investor relations section of our website.

On our call this morning, we will refer to certain non-gaap Financial measures that we believe are useful in evaluating our performance.

Reconciliations of historical, non-gaap Financial measures are included in our earnings release and the presentation.

Slide 2 of which provides a reminder that our remarks will include 4 looking statements within the meaning of the private Securities. Litigation Reform Act,

These forward-looking statements are subject to risks that could cause actual results to be materially different from those expressed in or implied by such forward-looking statements.

These risks include among others matters that we have described in our most recent annual report on form 10K.

And another filings we make with the SEC.

Bill Waelke: Thank you for joining us this morning for the discussion of the second quarter of our 2026 fiscal year. I'll briefly cover the non-GAAP and forward-looking language before passing the call over to our CEO, Mike Nassif, who will be followed by our new CFO, Brian Rigsby.

We disclaim any obligations update, these 4 looking statements. I'll now turn things over to Mike.

Thank you, Bill. Good morning, everyone, and thank you for joining the call. Today, I continue to be energized by the significant opportunity ahead at neoen working alongside our highly engaged Global teams as we transform the company with a clear focus on improved, Topline growth and profitability.

David Naemura: Before the market opened today, we published our second quarter results as well as a presentation, with both documents available in the Investor Relations section of our website. On our call this morning, we will refer to certain non-GAAP financial measures that we believe are useful in evaluating our performance. Reconciliations of historical non-GAAP financial measures are included in our earnings release and the presentation, slide 2 of which provides a reminder that our remarks will include forward-looking statements within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements are subject to risks that could cause actual results to be materially different from those expressed in or implied by such forward-looking statements. These risks include, among others, matters that we have described in our most recent annual report on Form 10-K and in other filings we make with the SEC.

Before the market opened today, we published our second quarter results as well as a presentation, with both documents available in the Investor Relations section of our website. On our call this morning, we will refer to certain non-GAAP financial measures that we believe are useful in evaluating our performance. Reconciliations of historical non-GAAP financial measures are included in our earnings release and the presentation, slide 2 of which provides a reminder that our remarks will include forward-looking statements within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements are subject to risks that could cause actual results to be materially different from those expressed in or implied by such forward-looking statements. These risks include, among others, matters that we have described in our most recent annual report on Form 10-K and in other filings we make with the SEC.

We are the scale provider in highly attractive industry.

Supported by strong long-term, secular Trends and I have high confidence in our ability to overcome recent macroeconomic and execution related. Headwinds

Our second quarter performance represents encouraging early progress.

With a returned positive core growth. Across the Enterprise and adjusted ibida. Margins improving nearly 500 basis, points sequentially.

The initial phase of our transformation is centered on stabilizing and strengthening our core.

Providing a solid framework for future innovation.

We began with cost structure improvements implemented in the second quarter expected to deliver approximately 20 million annualized savings.

We will continue to rigorously evaluate resource allocation opportunities and instill a culture of disciplined operational execution across the organization.

David Naemura: We disclaim any obligation to update these forward-looking statements. I'll now turn things over to Mike. Thank you, Bill. Good morning, everyone, and thank you for joining the call today. I continue to be energized by the significant opportunity ahead at Neogen, working alongside our highly engaged global team as we transform the company with a clear focus on improved top-line growth and profitability. We are the scale provider in a highly attractive industry supported by strong long-term secular trends, and I have high confidence in our ability to overcome recent macroeconomic and execution-related headwinds. Our second quarter performance represents encouraging early progress, with a return to positive core growth across the enterprise and adjusted EBITDA margins improving nearly 500 basis points sequentially. The initial phase of our transformation is centered on stabilizing and strengthening our core, providing a solid framework for future innovation.

We disclaim any obligation to update these forward-looking statements. I'll now turn things over to Mike.

Mike Nassif: Thank you, Bill. Good morning, everyone, and thank you for joining the call today. I continue to be energized by the significant opportunity ahead at Neogen, working alongside our highly engaged global team as we transform the company with a clear focus on improved top-line growth and profitability. We are the scale provider in a highly attractive industry supported by strong long-term secular trends, and I have high confidence in our ability to overcome recent macroeconomic and execution-related headwinds. Our second quarter performance represents encouraging early progress, with a return to positive core growth across the enterprise and adjusted EBITDA margins improving nearly 500 basis points sequentially. The initial phase of our transformation is centered on stabilizing and strengthening our core, providing a solid framework for future innovation.

Turning to our commercial teams. We are implementing a rigorous process oriented approach to commercial Excellence, emphasizing strong, operational planning, and data, driven decisions, and food safety, where our scale and breadth of offerings, provide a clear competitive Advantage. We see significant opportunity to shift towards solutions-based selling

This approach should increase customer, stickiness, and drive greater cost, portfolio, penetration.

Globally over 75% of our food. Safety customers already, purchased multiple product categories from us and we have targeted initiatives underway to increase that percentage further by delivering comprehensive Solutions, tailored to their needs.

In animal safety, we are focused on elevating our portfolio of products, through our long-standing Partnerships and have made Investments to enable our commercial teams to drive growth.

David Naemura: We began with cost structure improvements implemented in Q2, expected to deliver approximately $20 million in annualized savings. We will continue to rigorously evaluate resource allocation opportunities and instill a culture of disciplined operational execution across the organization. Turning to our commercial teams, we are implementing a rigorous process-oriented approach to commercial excellence, emphasizing strong operational planning and data-driven decisions. In food safety, where our scale and breadth of offerings provide a clear competitive advantage, we see significant opportunity to shift towards solutions-based selling. This approach should increase customer stickiness and drive greater cross-portfolio penetration. Globally, over 75% of our food safety customers already purchase multiple product categories from us, and we have targeted initiatives underway to increase that percentage further by delivering comprehensive solutions tailored to their needs.

We began with cost structure improvements implemented in Q2, expected to deliver approximately $20 million in annualized savings. We will continue to rigorously evaluate resource allocation opportunities and instill a culture of disciplined operational execution across the organization. Turning to our commercial teams, we are implementing a rigorous process-oriented approach to commercial excellence, emphasizing strong operational planning and data-driven decisions. In food safety, where our scale and breadth of offerings provide a clear competitive advantage, we see significant opportunity to shift towards solutions-based selling. This approach should increase customer stickiness and drive greater cross-portfolio penetration. Globally, over 75% of our food safety customers already purchase multiple product categories from us, and we have targeted initiatives underway to increase that percentage further by delivering comprehensive solutions tailored to their needs.

Providing a solid framework for future innovation.

We began with cost structure improvements implemented in the second quarter, expected to deliver approximately $20 million in annualized savings.

To accelerate all these priorities. We have strengthened our leadership with highly experienced operators, including our new CFO Brian Rigby and our new Chief commercial officer. Joe friels, Joe is a seasoned Diagnostics executive with extensive senior commercial experience at Abbott and Sephia. He understands what workflow sales execution looks like. And I'm confident he will help transform our sales culture.

We will continue to rigorously evaluate resource allocation opportunities and instill a culture of disciplined operational execution across the organization.

We have also added Tammy renali as senior vice president and general manager of our food. Safety business unit. James Meadows, as head of North America food, safety and Jeremy yarwood as Chief scientific officer.

These leaders bring proven track records from Top tier companies and will accelerate both Innovation and execution Excellence at neoen.

Turning to our commercial teams, we are implementing a rigorous, process-oriented approach to commercial excellence, emphasizing strong operational planning and data-driven decisions in food safety, where our scale and breadth of offerings provide a clear competitive advantage. We see significant opportunity to shift towards solutions-based selling.

In parallel with our commercial Focus, we are applying the same discipline and urgency to operational, efficiency, and key project execution.

This approach should increase customer stickiness and drive greater cross-portfolio penetration.

We saw early benefits in the second quarter from our cost actions which attributed to the sequential adjusted ibida margin expansion.

To gross profit in the second half of this fiscal year.

While there remains room for further Improvement.

David Naemura: In animal safety, we are focused on elevating our portfolio of products through our long-standing partnerships and have made investments to enable our commercial teams to drive growth. To accelerate all these priorities, we have strengthened our leadership with highly experienced operators, including our new CFO, Brian Rigsby, and our new Chief Commercial Officer, Joe Friels. Joe is a seasoned diagnostics executive with extensive senior commercial experience at Abbott and Cepheid. He understands what world-class sales execution looks like, and I'm confident he will help transform our sales culture. We have also added Tammy Ranelli as Senior Vice President and General Manager of our Food Safety Business Unit, James Meadows as Head of North America Food Safety, and Jeremy Yarwood as Chief Scientific Officer. These leaders bring proven track records from top-tier companies and will accelerate both innovation and execution excellence at Neogen.

In animal safety, we are focused on elevating our portfolio of products through our long-standing partnerships and have made investments to enable our commercial teams to drive growth. To accelerate all these priorities, we have strengthened our leadership with highly experienced operators, including our new CFO, Brian Rigsby, and our new Chief Commercial Officer, Joe Friels. Joe is a seasoned diagnostics executive with extensive senior commercial experience at Abbott and Cepheid. He understands what world-class sales execution looks like, and I'm confident he will help transform our sales culture. We have also added Tammy Ranelli as Senior Vice President and General Manager of our Food Safety Business Unit, James Meadows as Head of North America Food Safety, and Jeremy Yarwood as Chief Scientific Officer. These leaders bring proven track records from top-tier companies and will accelerate both innovation and execution excellence at Neogen.

Globally, over 75% of our Food Safety customers have already purchased multiple product categories from us, and we have targeted initiatives underway to increase that percentage further by delivering comprehensive solutions tailored to their needs.

We're committed to fully optimizing sample collection over the long term. Alongside broader enhancements and inventory, management and operational efficiency.

In Animal Safety, we are focused on elevating our portfolio of products through our long-standing partnerships, and have made investments to enable our commercial teams to drive growth.

Another key priority is the integration of feature film, which remains on track for the second quarter of fiscal 2027 timeline previously shared.

We're currently in the latter stages of the production testing process which has gone. Well in parallel, we have moved into the initial stages of product validation which is a comprehensive internal process to validate our ability to produce each of the 17 skus that we expect will be completed this summer.

To accelerate all these priorities, we have strengthened our leadership with highly experienced operators, including our new CFO, Brian Riggsby, and our new Chief Commercial Officer, Joe Friels. Joe is a seasoned diagnostics executive with extensive senior commercial experience at Abbott and Cepheid. He understands what workflow sales execution looks like, and I'm confident he will help transform our sales culture.

As part of the testing and initial validation work, we have done so far with demonstrated the ability to manufacture feature film plates.

We have also added Tammy Renali as Senior Vice President and General Manager of our Food Safety business unit, James Meadows as Head of North America Food Safety, and Jeremy Yarwood as Chief Scientific Officer.

These plates will continue to be subjected to a wide range of internal quality performance testing, but the early results have been encouraging

David Naemura: In parallel with our commercial focus, we are applying the same discipline and urgency to operational efficiency and key project execution. We saw early benefits in the second quarter from our cost actions, which attributed to the sequential adjusted EBITDA margin expansion. We have continued to make progress on our sample collection product line and expect it to become a positive contributor to gross profit in the second half of this fiscal year. While there remains room for further improvement, we're committed to fully optimizing sample collection over the long term alongside broader enhancements in inventory management and operational efficiency. Another key priority is the integration of Petrifilm, which remains on track for the second quarter of fiscal 2027 timeline previously shared. We're currently in the latter stages of the production testing process, which has gone well.

In parallel with our commercial focus, we are applying the same discipline and urgency to operational efficiency and key project execution. We saw early benefits in the second quarter from our cost actions, which attributed to the sequential adjusted EBITDA margin expansion. We have continued to make progress on our sample collection product line and expect it to become a positive contributor to gross profit in the second half of this fiscal year. While there remains room for further improvement, we're committed to fully optimizing sample collection over the long term alongside broader enhancements in inventory management and operational efficiency. Another key priority is the integration of Petrifilm, which remains on track for the second quarter of fiscal 2027 timeline previously shared. We're currently in the latter stages of the production testing process, which has gone well.

These leaders bring proven track records from top-tier companies and will accelerate both innovation and execution excellence at Neogen.

as Brian will discuss later in the call. We are making positive progress on the previously announced sale of argonics business, the completion of which will provide an opportunity to accelerate the deleveraging of our balance sheet.

In parallel with our commercial focus, we are applying the same discipline and urgency to operational efficiency and key project execution.

As a reminder this past summer, we divested our cleaners and disinfectants business, which allowed us to pay down 100 million of debt.

We saw early benefits in the second quarter from our cost actions, which contributed to the sequential adjusted EBITDA margin expansion.

We have continued to make progress on our sample collection product line and expect it to become a positive contributor to gross profit in the second half of this fiscal year.

To wrap up my opening remarks. I'm pleased with the initial progress we've made over the past few months which has led us to raise our outlook for the year and represents a solid step in the right direction.

While there remains room for further improvement.

We are still in the early Innings of our transformation journey and the in-market backdrop is not without some challenges. However, we believe they are solvable or transitory in nature.

We're committed to fully optimizing sample collection over the long term, alongside broader enhancements in inventory, management, and operational efficiency.

Another key priority is the integration of Future Films, which remains on track for the second quarter of fiscal 2027 timelines. Previously, shared,

I have every confidence in our ability to exit this fiscal year as a stronger, leaner and more disciplined organization, positioned to increase on Innovation and a next leg of growth in fiscal 2027 and Beyond.

David Naemura: In parallel, we have moved into the initial stages of product validation, which is a comprehensive internal process to validate our ability to produce each of the 17 SKUs that we expect will be completed this summer. As part of the testing and initial validation work we have done so far, we've demonstrated the ability to manufacture Petrifilm plates. These plates will continue to be subjected to a wide range of internal quality performance testing, but the early results have been encouraging. As Brian will discuss later in the call, we are making positive progress on the previously announced sale of our genomics business, the completion of which will provide an opportunity to accelerate the deleveraging of our balance sheet. As a reminder, this past summer we divested our cleaners and disinfectants business, which allowed us to pay down $100 million of debt.

In parallel, we have moved into the initial stages of product validation, which is a comprehensive internal process to validate our ability to produce each of the 17 SKUs that we expect will be completed this summer. As part of the testing and initial validation work we have done so far, we've demonstrated the ability to manufacture Petrifilm plates. These plates will continue to be subjected to a wide range of internal quality performance testing, but the early results have been encouraging. As Brian will discuss later in the call, we are making positive progress on the previously announced sale of our genomics business, the completion of which will provide an opportunity to accelerate the deleveraging of our balance sheet. As a reminder, this past summer we divested our cleaners and disinfectants business, which allowed us to pay down $100 million of debt.

We're currently in the latter stages of the production testing process, which has gone well. In parallel, we have moved into the initial stages of product validation, which is a comprehensive internal process to validate our ability to produce each of the 17 SKUs that we expect will be completed this summer.

I look forward to meeting with many of you at the JP Morgan Conference next week, where we will provide more details on our operational strategy with that. I'll now turn the call over to Brian to share some details on our results and our updated Outlook

Thank you, Mike and welcome to all the investors and analysts joining us on the call today.

As part of the testing and initial validation work we have done so far, we've demonstrated the ability to manufacture feature film plates.

These plates will continue to be subjected to a wide range of internal quality performance testing, but the early results have been encouraging.

Similar to Mike. I am incredibly excited to be part of the team at neoen and emboldened by the significant opportunity ahead of the company to drive shareholder value.

As Brian will discuss later in the call, we are making positive progress on the previously announced sale of our genomics business, the completion of which will provide an opportunity to accelerate the deleveraging of our balance sheet.

To that end. We saw a return deposit of core growth in both segments for the first time in 4 quarters. With total second quarter revenues of 224.7 million increasing 2.9% on a core basis.

David Naemura: To wrap up my opening remarks, I'm pleased with the initial progress we've made over the past few months, which has led us to raise our outlook for the year and represents a solid step in the right direction. We are still in the early innings of our transformation journey, and the end market backdrop is not without some challenges. However, we believe they are solvable or transitory in nature. I have every confidence in our ability to exit this fiscal year as a stronger, leaner, and more disciplined organization positioned to increasingly focus on innovation and a next leg of growth in fiscal 2027 and beyond. I look forward to meeting with many of you at the J.P. Morgan Conference next week, where we will provide more details on our operational strategy.

To wrap up my opening remarks, I'm pleased with the initial progress we've made over the past few months, which has led us to raise our outlook for the year and represents a solid step in the right direction. We are still in the early innings of our transformation journey, and the end market backdrop is not without some challenges. However, we believe they are solvable or transitory in nature. I have every confidence in our ability to exit this fiscal year as a stronger, leaner, and more disciplined organization positioned to increasingly focus on innovation and a next leg of growth in fiscal 2027 and beyond. I look forward to meeting with many of you at the J.P. Morgan Conference next week, where we will provide more details on our operational strategy.

As a reminder, this past summer we divested our cleaners and disinfectants business, which allowed us to pay down $100 million of debt.

Looking at the components of growth foreign currency added 0.9% and the vestures and discontinued products were a headwind of 6.6% compared to the prior year.

To wrap up my opening remarks, I'm pleased with the initial progress we've made over the past few months, which has led us to raise our outlook for the year and represents a solid step in the right direction.

The impact from the vestures was attributable to the sale of the cleaners and disinfectants business, which was completed in July 2025.

However, we believe they are solvable or transitory in nature.

At the segment level revenues in our food. Safety segments were 165.6 million in the quarter including core Revenue growth of 4.1%.

I have every confidence in our ability to exit this fiscal year as a stronger, leaner, and more disciplined organization, positioned to increasingly focus on innovation and the next leg of growth in fiscal 2027 and beyond.

David Naemura: With that, I'll now turn the call over to Brian to share some details on our results and our updated outlook. Thank you, Mike, and welcome to all the investors and analysts joining us on the call today. Similar to Mike, I'm incredibly excited to be part of the team at Neogen and emboldened by the significant opportunity ahead of the company to drive shareholder value. To that end, we saw a return to positive core growth in both segments for the first time in four quarters, with total Q2 revenues of $224.7 million, increasing 2.9% on a core basis. Looking at the components of growth, foreign currency added 0.9%, and divestitures and discontinued products were a headwind of 6.6% compared to the prior year. The impact from divestitures was attributable to the sale of the cleaners and disinfectants business, which was completed in July 2025.

With that, I'll now turn the call over to Brian to share some details on our results and our updated outlook.

We saw the strongest growth in our indicator testing and culture media product category, led by sample, collection, which benefited from an easy prior year, compared and Petri film, which saw a nice recovery from the first quarter and returned the high single digit growth.

Bryan Riggsbee: Thank you, Mike, and welcome to all the investors and analysts joining us on the call today. Similar to Mike, I'm incredibly excited to be part of the team at Neogen and emboldened by the significant opportunity ahead of the company to drive shareholder value. To that end, we saw a return to positive core growth in both segments for the first time in four quarters, with total Q2 revenues of $224.7 million, increasing 2.9% on a core basis. Looking at the components of growth, foreign currency added 0.9%, and divestitures and discontinued products were a headwind of 6.6% compared to the prior year. The impact from divestitures was attributable to the sale of the cleaners and disinfectants business, which was completed in July 2025.

I look forward to meeting with many of you at the JP Morgan Conference next week, where we will provide more details on our operational strategies. With that, I'll now turn the call over to Brian to share some details on our results and our updated outlook.

Thank you, Mike, and welcome to all the investors and analysts joining us on the call today.

Double digit growth in pathogens, led the bacterial and general sanitation product category. While the allergens and natural toxins categories saw growth in allergens all set by a decline in natural toxins.

Similar to Mike, I'm incredibly excited to be part of the team at Neogen and emboldened by the significant opportunity ahead of the company to drive shareholder value.

From a macro perspective, we continue to see disruption at the customer level with food production, volumes estimated to generally still be down across major producers on a year-over-year basis.

Additionally, there have been several major plant closures and food producer bankruptcies across the industry in the last 12 months.

To that end, we saw a return to positive core growth in both segments for the first time in four quarters, with total second quarter revenues of $224.7 million, increasing 2.9% on a core basis.

Given this short-term fundamental backdrop that we believe is primarily driven by inflationary cost pressures. We are even more encouraged by the strong results in the second quarter.

Looking at the components of growth, foreign currency added 0.9%, and the vestiges and discontinued products were a headwind of 6.6% compared to the prior year.

While macro Trends remain negative. There are signs some of the headwinds May begin to Abate as we transition into fiscal year 2027 and Beyond.

The impact from the divestitures was attributable to the sale of the cleaners and disinfectants business, which was completed in July 2025.

David Naemura: At the segment level, revenues in our food safety segment were $165.6 million in the quarter, including core revenue growth of 4.1%. We saw the strongest growth in our indicator testing and culture media product category, led by sample collection, which benefited from an easy prior year compare, and Petrifilm, which saw a nice recovery from the first quarter and returned to high single-digit growth. Double-digit growth in pathogens led the bacterial and general sanitation product category, while the allergens and natural toxins category saw growth in allergens, offset by a decline in natural toxins. From a macro perspective, we continue to see disruption at the customer level, with food production volumes estimated to generally still be down across major producers on a year-over-year basis. Additionally, there have been several major plant closures and food producer bankruptcies across the industry in the last 12 months.

At the segment level, revenues in our food safety segment were $165.6 million in the quarter, including core revenue growth of 4.1%. We saw the strongest growth in our indicator testing and culture media product category, led by sample collection, which benefited from an easy prior year compare, and Petrifilm, which saw a nice recovery from the first quarter and returned to high single-digit growth. Double-digit growth in pathogens led the bacterial and general sanitation product category, while the allergens and natural toxins category saw growth in allergens, offset by a decline in natural toxins. From a macro perspective, we continue to see disruption at the customer level, with food production volumes estimated to generally still be down across major producers on a year-over-year basis. Additionally, there have been several major plant closures and food producer bankruptcies across the industry in the last 12 months.

Quarterly revenues in the animal safety. Segments were 509.1 million including core Revenue growth, that was approximately flat compared to the prior year order.

At the segment level, revenues in our Food Safety segment were $165.6 million in the quarter, including core revenue growth of 4.1%.

We experienced solid growth in our bio security product category. Led by higher sales of insect control products due in part to market, share gains.

We saw the strongest growth in our indicator testing and culture media product category, led by sample collection, which benefited from an easy prior year comparison, and Petri film, which saw a nice recovery from the first quarter and returned to high single-digit growth.

In the veterinary, instruments product category lower sales were primarily driven by needles and syringes while lower sales in the Life Sciences product category were largely driven by timing of orders and fulfillment.

Solid growth in the bovine Market. Partially offset by weakness and companion. Animal testing

Double-digit growth in pathogens led the bacterial and general sanitation product category, while the allergens and natural toxins categories saw growth in allergens, offset by a decline in natural toxins.

from a macro perspective, we have also seen challenges in animal safety, as a part of a multi-year trend with production, animal herds declining in the US to record lows,

From a macro perspective, we continue to see disruption at the customer level, with food production volumes estimated to generally still be down across major producers on a year-over-year basis.

David Naemura: Given the short-term fundamental backdrop that we believe is primarily driven by inflationary cost pressures, we are even more encouraged by the strong results in the second quarter. While macro trends remain negative, there are signs some of the headwinds may begin to abate as we transition into fiscal year 2027 and beyond. Quarterly revenues in the animal safety segment were $59.1 million, including core revenue growth that was approximately flat compared to the prior year quarter. We experienced solid growth in our biosecurity product category, led by higher sales of insect control products due in part to market share gains. In the veterinary instruments product category, lower sales were primarily driven by needles and syringes, while lower sales in the life sciences product category were largely driven by timing of orders and fulfillment.

Given the short-term fundamental backdrop that we believe is primarily driven by inflationary cost pressures, we are even more encouraged by the strong results in the second quarter. While macro trends remain negative, there are signs some of the headwinds may begin to abate as we transition into fiscal year 2027 and beyond. Quarterly revenues in the animal safety segment were $59.1 million, including core revenue growth that was approximately flat compared to the prior year quarter. We experienced solid growth in our biosecurity product category, led by higher sales of insect control products due in part to market share gains. In the veterinary instruments product category, lower sales were primarily driven by needles and syringes, while lower sales in the life sciences product category were largely driven by timing of orders and fulfillment.

Additionally, there have been several major plant closures and food producer bankruptcies across the industry in the last 12 months.

Given this short-term fundamental backdrop, which we believe is primarily driven by inflationary cost pressures, we are even more encouraged by the strong results in the second quarter.

Most forecasts have this trend reversing next year as ranchers. Begin to invest again given record beef prices but we will continue to take a more cautious approach as we approach. Guidance until evidence of positive Improvement is more Apparent from a regional perspective core Revenue. Growth in the second quarter was led by Our Last ham region up high single digits with strong sales of pathogen detection, products and Petri films.

While macro trends remain negative, there are signs some of the headwinds may begin to abate as we transition into fiscal year 2027 and beyond.

The US and Canada region had core growth in the mid single-digit range. With food safety up mid single digits and animal safety about flat.

Quarterly revenues in the Animal Safety segment were $59.1 million, including core revenue growth. That was approximately flat compared to the prior year quarter.

Strong growth in Sample collection as well, as in Petri, film pathogen detection and allergens was partially offset by a decline in food quality and culture media.

We experienced solid growth in our biosecurity product category, led by higher sales of insect control products, due in part to market share gains.

The APAC region saw low single-digit core growth. That was led by pathogen detection products, sample collection, and genomics, offsetting declines and culture media, and allergen test kits.

David Naemura: Our global genomics business had core revenue growth accelerate to 6% in the quarter, with solid growth in the bovine market, partially offset by weakness in companion animal testing. From a macro perspective, we have also seen challenges in animal safety as a part of a multi-year trend, with production animal herds declining in the US to record lows. Most forecasts have this trend reversing next year as ranchers begin to invest again given record beef prices, but we will continue to take a more cautious approach as we approach guidance until evidence of positive improvement is more apparent. From a regional perspective, core revenue growth in the second quarter was led by our LATAM region, up high single digits with strong sales of pathogen detection products and Petrifilm. The US.

Our global genomics business had core revenue growth accelerate to 6% in the quarter, with solid growth in the bovine market, partially offset by weakness in companion animal testing. From a macro perspective, we have also seen challenges in animal safety as a part of a multi-year trend, with production animal herds declining in the US to record lows. Most forecasts have this trend reversing next year as ranchers begin to invest again given record beef prices, but we will continue to take a more cautious approach as we approach guidance until evidence of positive improvement is more apparent. From a regional perspective, core revenue growth in the second quarter was led by our LATAM region, up high single digits with strong sales of pathogen detection products and Petrifilm. The US.

In the veterinary area, instruments product category lower sales were primarily driven by needles and syringes, while lower sales in the Life Sciences product category were largely driven by timing of orders and fulfillment.

Our mea region had core growth declined. Low single digits with growth and Sample, collection food, quality genomics, and Petri film. All set by declines and natural toxins culture, media, and general sanitation products.

Our Global Genomics business had core revenue growth accelerate to 6% in the quarter, with solid growth in the bovine market, partially offset by weakness in companion animal testing.

Gross margin in the second quarter was 47.5% a sequential Improvement of 210 basis. Points from the first quarter with the increase due primarily to volume and lower tariff costs.

From a macro perspective, we have also seen challenges in animal safety as part of a multi-year trend, with production animal herds declining in the U.S. to record lows.

Excluding the impact of integration related and restructuring costs. The second quarter growth, margin was 50.3%.

Addressing the production of efficiency of our sample. Collection product line has been a priority and we saw Improvement in the quarter, which is a trend we expect to continue in the second half of the fiscal year.

David Naemura: and Canada region had core growth in the mid-single-digit range, with food safety up mid-single digits and animal safety about flat. Strong growth in sample collection, as well as in Petrifilm, pathogen detection, and allergens, was partially offset by a decline in food quality and culture media. The APAC region saw low single-digit core growth that was led by pathogen detection products, sample collection, and genomics, offsetting declines in culture media and allergen test kits. Our EMEA region had core growth decline, low single digits, with growth in sample collection, food quality, genomics, and Petrifilm, offset by declines in natural toxins, culture media, and general sanitation products. Gross margin in Q2 was 47.5%, a sequential improvement of 210 basis points from Q1, with the increase due primarily to volume and lower tariff costs.

and Canada region had core growth in the mid-single-digit range, with food safety up mid-single digits and animal safety about flat. Strong growth in sample collection, as well as in Petrifilm, pathogen detection, and allergens, was partially offset by a decline in food quality and culture media. The APAC region saw low single-digit core growth that was led by pathogen detection products, sample collection, and genomics, offsetting declines in culture media and allergen test kits. Our EMEA region had core growth decline, low single digits, with growth in sample collection, food quality, genomics, and Petrifilm, offset by declines in natural toxins, culture media, and general sanitation products. Gross margin in Q2 was 47.5%, a sequential improvement of 210 basis points from Q1, with the increase due primarily to volume and lower tariff costs.

Most forecasts have this trend reversing next year as ranchers begin to invest again, given record beef prices. But we will continue to take a more cautious approach as we approach guidance, until evidence of positive improvement is more apparent. From a regional perspective, core revenue growth in the second quarter was led by our LATAM region, up high single digits with strong sales of pathogen detection products and Petri films.

The US and Canada region had core growth in the mid-single-digit range, with food safety up mid-single digits and animal safety about flat.

With an increase, focus on inventory, across the organization, we did see an elevated level of inventory, right? Offs in the quarter, we have described this as a multi-quarter process to return to more normal levels of scrap and continue to expect to see Improvement in the second half as this is an item of high emphasis for our operations teams.

Strong growth in sample collection, as well as in Petri film, pathogen detection, and allergens, was partially offset by a decline in food quality and culture media.

Adjusted ebit. Die was 48.7 million in the quarter representing a margin of 21.7% and Improvement of 470 basis points from the first quarter.

The margin Improvement was driven primarily by the higher gross margin and the headcount reduction implemented during the second quarter.

Second quarter, adjusted net income and adjusted earnings per share were 22.6 million and 10 cents.

The APAC region saw low single-digit core growth. That was led by pathogen detection products, sample collection, and genomics, offsetting declines in culture media and allergen test kits. Our EMA region had a core growth decline in the low single digits, with growth in sample collection, food quality genomics, and Petri film, offset by declines in natural toxins, culture media, and general sanitation products.

Respectively compared to 9.4 million and 4 cents in the prior quarter to primarily to the higher level of adjusted Ava.

David Naemura: Excluding the impact of integration-related and restructuring costs, the second quarter gross margin was 50.3%. Addressing the production efficiency of our sample collection product line has been a priority, and we saw improvement in the quarter, which is a trend we expect to continue in the second half of the fiscal year. With an increased focus on inventory across the organization, we did see an elevated level of inventory write-offs in the quarter. We have described this as a multi-quarter process to return to more normal levels of scrap and continue to expect to see improvement in the second half, as this is an item of high emphasis for our operations teams. Adjusted EBITDA was $48.7 million in the quarter, representing a margin of 21.7%, an improvement of 470 basis points from the first quarter.

Excluding the impact of integration-related and restructuring costs, the second quarter gross margin was 50.3%. Addressing the production efficiency of our sample collection product line has been a priority, and we saw improvement in the quarter, which is a trend we expect to continue in the second half of the fiscal year. With an increased focus on inventory across the organization, we did see an elevated level of inventory write-offs in the quarter. We have described this as a multi-quarter process to return to more normal levels of scrap and continue to expect to see improvement in the second half, as this is an item of high emphasis for our operations teams. Adjusted EBITDA was $48.7 million in the quarter, representing a margin of 21.7%, an improvement of 470 basis points from the first quarter.

210 basis points from the first quarter with the increase, due primarily to volume and lower tariff costs.

Moving to the balance sheet, we ended the quarter with gross debt of 800 million, 68% of which remains at a fixed rate, and a total cash position of 145.3 million.

Excluding the impact of integration-related and restructuring costs, the second quarter growth margin was 50.3%.

We remain in compliance with all debt, covenants and remain comfortable with our position. As we look to the second half of the fiscal year.

Addressing the production efficiency of our sample collection product line has been a priority, and we saw improvement in the quarter, which is a trend we expect to continue in the second half of the fiscal year.

Free cash flow in Q2 with 7.8 million, representing an improvement of 20.9 million from q1. The result of lower capex and improved trade working. Capital efficiency importantly, we expect that routine capex will Trend towards more normal levels of 3, to 4% of revenues starting in late, fiscal year 2026, which will further improve free cash flow trends.

With an increase in focus on inventory across the organization, we did see an elevated level of inventory, right? Also, in the quarter, we have described this as a multi-quarter process to return to more normal levels of scrap and continue to expect to see improvement in the second half, as this is an item of high emphasis for our operations teams.

As Mike noted earlier, we are raising our full year. Guidance for fiscal 2026 to reflect the second quarter performance, being ahead of our expectations.

David Naemura: The margin improvement was driven primarily by the higher gross margin and the headcount reduction implemented during the second quarter. Second quarter Adjusted net income and Adjusted earnings per share were $22.6 million and $0.10, respectively, compared to $9.4 million and $0.04 in the prior quarter, due primarily to the higher level of Adjusted EBITDA. Moving to the balance sheet, we ended the quarter with gross debt of $800 million, 68% of which remains at a fixed rate, and a total cash position of $145.3 million. We remain in compliance with all debt covenants and remain comfortable with our position as we look to the second half of the fiscal year. Free cash flow in Q2 was $7.8 million, representing an improvement of $20.9 million from Q1, the result of lower CapEx and improved trade working capital efficiency.

The margin improvement was driven primarily by the higher gross margin and the headcount reduction implemented during the second quarter. Second quarter Adjusted net income and Adjusted earnings per share were $22.6 million and $0.10, respectively, compared to $9.4 million and $0.04 in the prior quarter, due primarily to the higher level of Adjusted EBITDA. Moving to the balance sheet, we ended the quarter with gross debt of $800 million, 68% of which remains at a fixed rate, and a total cash position of $145.3 million. We remain in compliance with all debt covenants and remain comfortable with our position as we look to the second half of the fiscal year. Free cash flow in Q2 was $7.8 million, representing an improvement of $20.9 million from Q1, the result of lower CapEx and improved trade working capital efficiency.

Adjusted EBITDA was $48.7 million in the quarter, representing a margin of 21.7% and an improvement of 470 basis points from the first quarter.

We now expect Revenue to be in the range of 845 million to 855 million and adjusted Eva to be approximately 175 million for the fiscal year.

The margin improvement was driven primarily by the higher gross margin and the headcount reduction implemented during the second quarter.

This updated guidance, reflects a cautious approach to the second half of the Year, given the lingering weakness in our in markets and the fact that we have a new team on board that is still settling in and evaluating opportunities.

Second quarter adjusted net income and adjusted earnings per share were $22.6 million and $0.10, respectively, compared to $9.4 million and $0.04 in the prior quarter, due primarily to the higher level of adjusted Ava.

As a management team Mike and I take very seriously, the commitments and guidance we provide to investors.

Looking on a quarterly basis. Our guidance contemplates Revenue in the fourth quarter of being modestly higher than the third quarter which we are assuming will set down from the second quarter, due primarily to seasonality and that adjusted Evita margins will follow a similar trend.

Moving to the balance sheet, we ended the quarter with gross debt of $800 million, 68% of which remains at a fixed rate, and a total cash position of $145.3 million. We remain in compliance with all debt covenants and remain comfortable with our position as we look to the second half of the fiscal year.

We continue to expect our Capital expenditures for the year will be approximately 50 million dollars and that free cash flow. Will be positive.

We have also previously disclosed that we have a process underway to devest our Global genomic business.

David Naemura: Importantly, we expect that routine CapEx will trend towards more normal levels of 3% to 4% of revenues starting in late fiscal year 2026, which will further improve free cash flow trends. As Mike noted earlier, we are raising our full-year guidance for fiscal 2026 to reflect the second quarter performance being ahead of our expectations. We now expect revenue to be in the range of $845 million to $855 million and adjusted EBITDA to be approximately $175 million for the fiscal year. This updated guidance reflects a cautious approach to the second half of the year, given the lingering weakness in our end markets and the fact that we have a new team on board that is still settling in and evaluating opportunities. As a management team, Mike and I take very seriously the commitments and guidance we provide to investors.

Importantly, we expect that routine CapEx will trend towards more normal levels of 3% to 4% of revenues starting in late fiscal year 2026, which will further improve free cash flow trends. As Mike noted earlier, we are raising our full-year guidance for fiscal 2026 to reflect the second quarter performance being ahead of our expectations. We now expect revenue to be in the range of $845 million to $855 million and adjusted EBITDA to be approximately $175 million for the fiscal year. This updated guidance reflects a cautious approach to the second half of the year, given the lingering weakness in our end markets and the fact that we have a new team on board that is still settling in and evaluating opportunities. As a management team, Mike and I take very seriously the commitments and guidance we provide to investors.

To predict we anticipate being able to make an announcement in the fourth quarter of the current fiscal year, given the current stage of the process.

Free cash flow in Q2 was $7.8 million, representing an improvement of $20.9 million from Q1. The result was due to lower capex and improved trade working capital efficiency. Importantly, we expect that routine capex will trend towards more normal levels of 3% to 4% of revenues starting in late fiscal year 2026, which will further improve free cash flow trends.

As Mike noted earlier, we are raising our full-year guidance for fiscal 2026 to reflect the second quarter performance, being ahead of our expectations.

In addition to the net proceeds, being prioritized for debt reduction, this debt will further simplify and focus the business and also position the business for enhanced incremental margins.

I'll now hand the call back to Mike for some final thoughts.

We now expect revenue to be in the range of $845 million to $855 million, and adjusted EVA to be approximately $175 million for the fiscal year.

Thanks Brian. When I joined neoen, I was thrilled to lead a company with strong leadership positions, with highly attractive and markets.

This updated guidance reflects a cautious approach to the second half of the year, given the lingering weakness in our end markets and the fact that we have a new team on board that is still settling in and evaluating opportunities.

While we have faced both macroeconomic, headwinds and execution challenges, we believe these are solvable and that Neo's best days lie ahead.

David Naemura: Looking on a quarterly basis, our guidance contemplates revenue in the fourth quarter being modestly higher than the third quarter, which we are assuming will step down from the second quarter due primarily to seasonality, and that Adjusted EBITDA margins will follow a similar trend. We continue to expect our Capital expenditures for the year will be approximately $50 million, and that Free cash flow will be positive. We have also previously disclosed that we have a process underway to divest our global Genomics business. The process continues to move along, and while the timing of such processes is inherently difficult to predict, we anticipate being able to make an announcement in the fourth quarter of the current fiscal year, given the current stage of the process.

Looking on a quarterly basis, our guidance contemplates revenue in the fourth quarter being modestly higher than the third quarter, which we are assuming will step down from the second quarter due primarily to seasonality, and that Adjusted EBITDA margins will follow a similar trend. We continue to expect our Capital expenditures for the year will be approximately $50 million, and that Free cash flow will be positive. We have also previously disclosed that we have a process underway to divest our global Genomics business. The process continues to move along, and while the timing of such processes is inherently difficult to predict, we anticipate being able to make an announcement in the fourth quarter of the current fiscal year, given the current stage of the process.

As a management team, Mike and I take very seriously the commitments and guidance we provide to investors.

Now, nearly 5 months into my role. I've had the privilege of meeting many of our customers and team members around the world. These interactions have only strengthened my optimism, and deepened, my appreciation for the power of the neoen brand.

Our customers don't see us simply as a supplier.

Looking on a quarterly basis, our guidance contemplates revenue in the fourth quarter being modestly higher than the third quarter, which we are assuming will step down from the second quarter due primarily to seasonality, and that adjusted IBA margins will follow a similar trend.

We continue to expect our capital expenditures for the year will be approximately $X million, and that free cash flow will be positive.

They view us as a true partner and a trusted Authority in food. Safety, we are committed to further strengthening these vital Partnerships accelerating groundbreaking Innovation and delivering greater value to our customers than ever before.

We have also previously disclosed that we have a process underway to divest our global genomics business.

In my interactions with team members across the globe. I've been deeply encouraged by the passion and commitment of witness firsthand the thoughtful dialogue and sharp insights shared in these conversations. Reaffirm what I already knew.

We have an exceptional team that is fully invested in our mission.

David Naemura: In addition to the net proceeds being prioritized for debt reduction, this divestiture will further simplify and focus the business, and also position the business for enhanced incremental margins. I'll now hand the call back to Mike for some final thoughts. Thanks, Brian. When I joined Neogen, I was thrilled to lead a company with strong leadership positions and highly attractive end markets. While we have faced both macroeconomic headwinds and execution challenges, we believe these are solvable and that Neogen's best days lie ahead. Now, nearly five months into my role, I've had the privilege of meeting many of our customers and team members around the world. These interactions have only strengthened my optimism and deepened my appreciation for the power of the Neogen brand. Our customers don't see us simply as a supplier. They view us as a true partner and a trusted authority in food safety.

In addition to the net proceeds being prioritized for debt reduction, this divestiture will further simplify and focus the business, and also position the business for enhanced incremental margins. I'll now hand the call back to Mike for some final thoughts.

The process continues to move along, and while the timing of such processes is inherently difficult to predict, we anticipate being able to make an announcement in the fourth quarter of the current fiscal year, given the current stage of the process.

We now have a strengthened leadership team in place Seasons Executives with deep experience. Driving transformation in Global Life Sciences and Diagnostics businesses.

In addition to the net proceeds being prioritized for debt reduction, this debt will further simplify and focus the business, and also position the business for enhanced incremental margins.

Mike Nassif: Thanks, Brian. When I joined Neogen, I was thrilled to lead a company with strong leadership positions and highly attractive end markets. While we have faced both macroeconomic headwinds and execution challenges, we believe these are solvable and that Neogen's best days lie ahead. Now, nearly five months into my role, I've had the privilege of meeting many of our customers and team members around the world. These interactions have only strengthened my optimism and deepened my appreciation for the power of the Neogen brand. Our customers don't see us simply as a supplier. They view us as a true partner and a trusted authority in food safety.

I'll now hand the call back to Mike for some final thoughts.

Thanks Brian.

When I joined Neogen, I was thrilled to lead a company with strong leadership positions and highly attractive markets.

They bring a disciplined fundamentals, focused, approach centered on process Excellence, clear prioritization, cross functional collaboration, transparency and accountability, importantly, we are already seeing strong Buy in across the organization. As we Implement these changes a clear signal that we are aligning around the right strategy to unlock neogen, potential.

While we have faced both macroeconomic headwinds and execution challenges, we believe these are solvable and that Neogen's best days lie ahead.

In closing, I want to extend my heartfelt, gratitude to every employee around the world for your hard work, resilience and unwavering dedication.

It is your talent and commitment that will drive our success.

Now, nearly five months into my role, I've had the privilege of meeting many of our customers and team members around the world. These interactions have only strengthened my optimism and deepened my appreciation for the power of the Neogen brand.

Our customers don't see us simply as a supplier.

And I am more confident than ever in our ability to deliver outstanding results for both our customers and shareholders.

David Naemura: We are committed to further strengthening these vital partnerships, accelerating groundbreaking innovation, and delivering greater value to our customers than ever before. In my interactions with team members across the globe, I've been deeply encouraged by the passion and commitment I've witnessed firsthand. The thoughtful dialogue and sharp insights shared in these conversations reaffirm what I already knew. We have an exceptional team that is fully invested in our mission. We now have a strengthened leadership team in place, seasoned executives with deep experience driving transformation in global life sciences and diagnostics businesses. They bring a disciplined, fundamental-focused approach centered on process excellence, clear prioritization, cross-functional collaboration, transparency, and accountability. Importantly, we are already seeing strong buy-in across the organization as we implement these changes, a clear signal that we are aligning around the right strategy to unlock Neogen's potential.

We are committed to further strengthening these vital partnerships, accelerating groundbreaking innovation, and delivering greater value to our customers than ever before. In my interactions with team members across the globe, I've been deeply encouraged by the passion and commitment I've witnessed firsthand. The thoughtful dialogue and sharp insights shared in these conversations reaffirm what I already knew. We have an exceptional team that is fully invested in our mission. We now have a strengthened leadership team in place, seasoned executives with deep experience driving transformation in global life sciences and diagnostics businesses. They bring a disciplined, fundamental-focused approach centered on process excellence, clear prioritization, cross-functional collaboration, transparency, and accountability. Importantly, we are already seeing strong buy-in across the organization as we implement these changes, a clear signal that we are aligning around the right strategy to unlock Neogen's potential.

Thank you. And now I'd like to turn things over to the operator to begin the Q&A session.

Thank you.

They view us as a true partner and a trusted authority in food safety. We are committed to further strengthening these vital partnerships, accelerating groundbreaking innovation, and delivering greater value to our customers than ever before.

In my interactions with team members across the globe, I've been deeply encouraged by the passion and commitment. I've witnessed firsthand the thoughtful dialogue and sharp insights shared in these conversations. We affirm what I already knew.

We have an exceptional team that is fully invested in our mission.

Question and answer session. Did you have a question please press star followed by the 1 on your touchtone phone? You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process? Please press star followed by the 2. If you are using a speaker-phone, please lift the handset before pressing any Keys? Your first question comes from Bob labek with CJs Securities your line is now open.

Executives with deep experience driving transformation in global life sciences and diagnostics businesses.

Good morning. Uh, congratulations on the strong results and Outlook.

Thanks Bob.

David Naemura: In closing, I want to extend my heartfelt gratitude to every employee around the world for your hard work, resilience, and unwavering dedication. It is your talent and commitment that will drive our success, and I'm more confident than ever in our ability to deliver outstanding results for both our customers and shareholders. Thank you, and now I'd like to turn things over to the operator to begin the Q&A session. Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star, followed by the one on your touch-tone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star, followed by the two. If you are using a speakerphone, please lift the handset before pressing any keys.

In closing, I want to extend my heartfelt gratitude to every employee around the world for your hard work, resilience, and unwavering dedication. It is your talent and commitment that will drive our success, and I'm more confident than ever in our ability to deliver outstanding results for both our customers and shareholders. Thank you, and now I'd like to turn things over to the operator to begin the Q&A session.

They bring a disciplined, fundamentals-focused approach centered on process excellence, clear prioritization, cross-functional collaboration, transparency, and accountability. Importantly, we are already seeing strong buy-in in a classy organization. As we implement these changes, it's a clear signal that we are aligning around the right strategy to unlock Neogen potential.

Great. Um, so I wanted to start uh where you just finished uh Mike uh you talked about the new management team. Can you discuss your kind of maybe a little more what you look for in each of the people, as you built out this team? And and how long it'll take to get? I mean the the announcements just kind of just happened. Obviously get people on board and and and for everyone to, you know jail and make a difference and and you know, start start operating as 1.

In closing, I want to extend my heartfelt gratitude to every employee around the world for your hard work, resilience, and unwavering dedication.

Yeah, thank you for that question. Um, you know, the great news is

It is your talent and commitment that will drive our success.

And I'm more confident than ever in our ability to deliver outstanding results for both our customers and shareholders.

Operator: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star, followed by the one on your touch-tone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star, followed by the two. If you are using a speakerphone, please lift the handset before pressing any keys.

Thank you. And now, I'd like to turn things over to the operator to begin the Q&A session.

Thank you.

David Naemura: Your first question comes from Bob Labick with CJS Securities. Your line is now open. Good morning. Congratulations on the strong results in outlook. Thanks, Bob. Great. So I wanted to start where you just finished, Mike. You talked about the new management team. Can you discuss kind of maybe a little more what you looked for in each of the people as you built out this team and how long it'll take to get, I mean, the announcement kind of just happened, obviously, get people on board and for everyone to gel and make a difference and start operating as one? Yeah, thank you for that question. The great news is we've attracted top-tier talent to this company, which speaks highly to the opportunity we have at Neogen in turning this business around.

Your first question comes from Bob Labick with CJS Securities. Your line is now open.

We'll now begin the question and answer session. Should you have a question, please press star followed by 1 on your touchtone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star followed by 2. If you are using a speakerphone, please lift the handset before pressing any keys.

Bob Labick: Good morning. Congratulations on the strong results in outlook.

Your first question comes from Bob Labucq with CJS Securities. Your line is now open.

Mike Nassif: Thanks, Bob.

Good morning. Uh, congratulations on the strong results and outlook.

Bob Labick: Great. So I wanted to start where you just finished, Mike. You talked about the new management team. Can you discuss kind of maybe a little more what you looked for in each of the people as you built out this team and how long it'll take to get, I mean, the announcement kind of just happened, obviously, get people on board and for everyone to gel and make a difference and start operating as one?

Thanks Bob.

We've attracted top tier talent to this company which speaks highly to the opportunity. We have at neoen and turning this business around. Um when I was recruiting for the talent I was really looking for, very experienced leaders in, in diagnostics, for Life Sciences. Um, that have been part of large organizations that understand the discipline and complexity of managing Global businesses. But more importantly, we're operators that they were able to zoom in and zoom out and really help the organization, uh, accelerate. You know, the basics, uh, that I've talked about before. Um, and I think that's extremely important because, you know, we've got a great Workforce and in some cases, you know, we're trying to implement Global processes. That require a lot of Hands-On initially to get everybody going in the same direction. So I'm I'm very, uh, I'm very proud and I think we're extremely lucky to have attracted the talent that we've attracted.

Mike Nassif: Yeah, thank you for that question. The great news is we've attracted top-tier talent to this company, which speaks highly to the opportunity we have at Neogen in turning this business around.

Great. Um, so I wanted to start uh where you just finished uh Mike uh you talked about the new management team, can you discuss, you know, kind of maybe a little more what you looked for in each of the people as you built out this team and and how long it'll take to get, I mean the announcements kind of just happened obviously get people on board and and and for everyone to, you know jail and make a difference and and you know, start start operating as 1.

Yeah, thank you for that question. Um, you know, the great news is

And we are starting now to meet as a full management team and really focusing on the priorities which have not changed which are all about driving Topline optimizing our growth and really focusing and becoming Masters in the fundamentals.

David Naemura: When I was recruiting for the talent, I was really looking for very experienced leaders in diagnostics or life sciences that have been part of large organizations that understand the discipline and complexity of managing global businesses, but more importantly, were operators. They were able to zoom in and zoom out and really help the organization accelerate the basics that I've talked about before. I think that's extremely important because we've got a great workforce, and in some cases, we're trying to implement global processes that require a lot of hands-on initially to get everybody going in the same direction. I'm very proud, and I think we're extremely lucky to have attracted the talent that we've attracted.

When I was recruiting for the talent, I was really looking for very experienced leaders in diagnostics or life sciences that have been part of large organizations that understand the discipline and complexity of managing global businesses, but more importantly, were operators. They were able to zoom in and zoom out and really help the organization accelerate the basics that I've talked about before. I think that's extremely important because we've got a great workforce, and in some cases, we're trying to implement global processes that require a lot of hands-on initially to get everybody going in the same direction. I'm very proud, and I think we're extremely lucky to have attracted the talent that we've attracted.

Okay, that sounds great and then maybe just 1 more question. I'll jump back in queue and um, obviously a good quarter, strong sequential margin Improvement. Um, but you know, I think you said you'll get better Improvement in Sample, handling in the back half. I'm trying to get a sense of what was the headwind to margins maybe from sample handling or, or maybe you said, another way. Once you get that to the margins, you want, what would be the equivalent or closed? I margins, you know, at current levels and then obviously, as Topline grows, you can grow that from there.

We've attracted top tier talent to this company which speaks highly to the opportunity. We have at neoen and turning this business around. Um when I was recruiting for the talent, I was really looking for, very experienced leaders in, in Diagnostics, or Life Sciences, um, that have been part of large organizations that understand the discipline and complexity of managing Global businesses. But more importantly, we're operators that they were able to zoom in and zoom out and really help the organization, uh, accelerate. You know, the basics, uh, that I've talked about before. Um, and I think that's extremely important because, you know, we've got a great Workforce and in some cases, you know, we're trying to implement Global processes.

David Naemura: As far as how long it's going to take to get them up and running, I would say that given the talent caliber and experience of these professionals, they're already hitting the ground running. And our business is not so different than the human diagnostics business. So from a technology and go-to-market, there's a lot of similarities there. So we've got a very robust onboarding plan for all of the leaders, and we are starting now to meet as a full management team and really focusing on the priorities, which have not changed, which are all about driving top line, optimizing our growth, and really focusing and becoming masters in the fundamentals. Okay, that sounds great. And then maybe just one more question. I'll jump back in queue. And obviously, good quarter, strong sequential margin improvement.

As far as how long it's going to take to get them up and running, I would say that given the talent caliber and experience of these professionals, they're already hitting the ground running. And our business is not so different than the human diagnostics business. So from a technology and go-to-market, there's a lot of similarities there. So we've got a very robust onboarding plan for all of the leaders, and we are starting now to meet as a full management team and really focusing on the priorities, which have not changed, which are all about driving top line, optimizing our growth, and really focusing and becoming masters in the fundamentals.

That requires a lot of hands-on initially to get everybody going in the same direction. So I'm very—I'm very, uh, I'm very proud, and I think we're extremely lucky to have attracted the talent that we've attracted.

Yeah, I mean, let me give you a little bit of my thoughts on Sample collection. And then I'll, I'd like to ask Brian to share his thoughts, as well. More specifics. But listen, sample collections is a challenge for us. We've been pretty transparent about that. We're working it, uh, multiple fronts from making sure that pricing is reflective of the average price in the market. We are taking all of the improvements, um, on improving the efficiency on the line. I think the great, um, progress that we have made in, in, getting back, getting out of back, orders means that we can reduce the temporary labor of some of the scrap and other things that were impacting our margins and kind of get more to steady state. Um you know and we are 100% focused on improving the profitability on this product. But this continues to be a Gateway product that our customers need

Bob Labick: Okay, that sounds great. And then maybe just one more question. I'll jump back in queue. And obviously, good quarter, strong sequential margin improvement.

Uh, as far as how long it's going to take to get them up and running, I would say that given the talent caliber and experience of these professionals, they're already hitting the ground running. Um, you know, and our business is not so different than the diagnostics—than the human diagnostics business. So from a technology, you can go to market. There's a lot of similarities there. Uh, so we've got a very robust onboarding plan for all of the leaders, and we are starting now to meet as a full management team and really focusing on the priorities, which have not changed, which are all about driving topline, optimizing our growth, and really focusing and becoming masters in the fundamentals.

Uh but at least to other you know, other purchases within our portfolio and I I personally don't think the product's ever going to be as profitable as other parts in our portfolio.

David Naemura: But I think you said you'll get better improvement in sample handling in the back half. I'm trying to get a sense of what was the headwind to margins maybe from sample handling, or maybe said another way, once you get that to the margins you want, what would be the equivalent or close EBITDA margins at current levels? And then obviously, as top line grows, you can grow that from there. Yeah, I mean, let me give you a little bit of my thoughts on sample collection, and then I'd like to ask Brian to share his thoughts as well and more specifics. But listen, sample collection is a challenge for us. We've been pretty transparent about that. We're working it multiple fronts from making sure that pricing is reflective of the average price in the market.

But I think you said you'll get better improvement in sample handling in the back half. I'm trying to get a sense of what was the headwind to margins maybe from sample handling, or maybe said another way, once you get that to the margins you want, what would be the equivalent or close EBITDA margins at current levels? And then obviously, as top line grows, you can grow that from there.

But we're not giving up, and we're going to continue to be focused on that. But I would say, high level. We would expect this product to return to some profitability in the second half.

Okay, that sounds great and then maybe just 1, more question. I'll jump back in the queue and, um, Obviously good quarter. Strong sequential margin Improvement. Um, but you know, I think you said you'll get better Improvement in Sample, handling in the back half. I'm trying to get a sense of what was the headwind to margins maybe from sample handling or, or maybe you said, another way. Once you get that to the margins, you want? What would be the equivalent or closed? I beta margins, you know, at current levels and then obviously, as Topline grows, you can grow that from there.

Mike Nassif: Yeah, I mean, let me give you a little bit of my thoughts on sample collection, and then I'd like to ask Brian to share his thoughts as well and more specifics. But listen, sample collection is a challenge for us. We've been pretty transparent about that. We're working it multiple fronts from making sure that pricing is reflective of the average price in the market.

Um, and I'd like to ask Brian to share any thoughts on that? Yeah. Thanks Mike. Bob, my comment would just be, I think if you look at the, um, at our non-gaap reconciliation schedule, where we've excluded, the negative impact of that, previously, you can see that it was 2 for in Q4 it was around 10 million in q1, it was 6 million in YouTube. It was around 3 million, so the trend is favorable. And again, the Mike's comments, thanks to the intern positive as we move into the back half of the year.

Okay, super congrats again. Thank you.

Thank you. Thanks Bob.

David Naemura: We are taking all of the improvements on improving the efficiency on the line. I think the great progress that we have made in getting out of back orders means that we can reduce the temporary labor and some of the scrap and other things that were impacting our margins and kind of get more to steady state. We are 100% focused on improving profitability on this product. This continues to be a gateway product that our customers need, but it leads to other purchases within our portfolio. I personally don't think the product's ever going to be as profitable as other parts in our portfolio, but we're not giving up, and we're going to continue to be focused on that. I would say, high level, we would expect this product to return to some profitability in the second half.

We are taking all of the improvements on improving the efficiency on the line. I think the great progress that we have made in getting out of back orders means that we can reduce the temporary labor and some of the scrap and other things that were impacting our margins and kind of get more to steady state. We are 100% focused on improving profitability on this product. This continues to be a gateway product that our customers need, but it leads to other purchases within our portfolio. I personally don't think the product's ever going to be as profitable as other parts in our portfolio, but we're not giving up, and we're going to continue to be focused on that. I would say, high level, we would expect this product to return to some profitability in the second half.

Your next question comes from David westenberg with Piper. Sandler, your line is now open.

Yeah, I mean, let me give you a little bit of my thoughts on Sample collection. And then I'll, I'd like to ask Brian to share his thoughts as well. More specifics. But listen, sample collection is a challenge for us. We've been pretty transparent about that. We're working it, uh, multiple fronts from making sure that pricing is reflective of the average price in the market. We are taking all of the improvements, um, on improving the efficiency on the line. I think the great, um, progress that we have made in, in, getting back, getting out of back, orders means that we can reduce the temporary labor and some of the scrap and other things that were impacting our margins and kind of get more to steady state. Um, you know, and we are 100% focused on improving profitability on this product. But this continues to be a Gateway product that our customers need

Hi. Thanks for taking the question and, uh, congrats on uh, on a really good quarter here. Uh, so I'll just start off with. Um, why hasn't the implied H2 growth? Um, or margin? Um, a little bit higher falling, you know, it really good quarter. Um, do you think uh is this conservatism or you know like just first quarter for both the CFO and I guess second quarter for the CEO, you just want to make sure that um everything's right here.

I personally don't think the product's ever going to be as profitable as other parts in our portfolio.

Yeah, let me start. I'll I'll share some thought, thank you for the question. I think that's a very fair question and I will ask Brian to jump in. I think listen what what you see contemplated in the guide,

David Naemura: And I'd like to ask Brian to share any thoughts on that. Yeah, thanks, Mike. My comment would just be, I think if you look at our non-GAAP reconciliation schedule, where we've excluded the negative impact of that previously, you can see that in Q4, it was around 10 million. In Q1, it was 6 million. In Q2, it was around 3 million. So the trend is favorable. And again, to Mike's comments, we would expect it to then turn positive as we move into the back half of the year. Okay, super. Congrats again. Thank you. Thank you. Thanks, Bob. Your next question comes from David Westenberg with Piper Sandler. Your line is now open. Hi, thanks for taking the question, and congrats on a really good quarter here.

And I'd like to ask Brian to share any thoughts on that.

But we're not giving up, and we're going to continue to be focused on that. But I would say, high level, we would expect this product to return to some profitability in the second half.

Bryan Riggsbee: Yeah, thanks, Mike. My comment would just be, I think if you look at our non-GAAP reconciliation schedule, where we've excluded the negative impact of that previously, you can see that in Q4, it was around 10 million. In Q1, it was 6 million. In Q2, it was around 3 million. So the trend is favorable. And again, to Mike's comments, we would expect it to then turn positive as we move into the back half of the year.

Is our food and approach approach, um, to beginning to return the business to sustain a predictable performance. You've heard me talk about that last time that very much focused on driving for the ability in this business and consistency.

Um listen I'm happy with how the org is reacting to the new ways of working in a very short period of time that we've been here. And Q2 is, is is a great quarter but it's 1 day data points. Um, we've also got a brand new team that's going to be settling in and uh, learning how to work together and really start to scale these things that we put in place.

Bob Labick: Okay, super. Congrats again. Thank you.

Um, and I'd like to ask Brian to share any thoughts on that? Yeah. Thanks, Mike. Bob, my comment would just be, I think if you look at the, um, at our non-GAAP reconciliation schedule, where we've excluded the negative impact of that previously, you can see that in Q4, it was around $10 million; in Q1, it was $6 million; and in YouTube, it was around $3 million, so the trend is favorable. And again, to Mike's comments, we would expect it to then turn positive as we move into the back half of the year.

Bryan Riggsbee: Thank you.

Okay, super—congrats again. Thank you.

Mike Nassif: Thanks, Bob.

Operator: Your next question comes from David Westenberg with Piper Sandler. Your line is now open.

Thank you. Thanks Bob.

David Westenberg: Hi, thanks for taking the question, and congrats on a really good quarter here.

Your next question comes from David Westenberg with Piper Sandler. Your line is now open.

David Naemura: So I'll just start off with, why hasn't the implied H2 growth or margin a little bit higher following a really good quarter? Do you think, is this conservatism or just Q1 for both the CFO and, I guess, Q2 for the CEO, you just want to make sure that everything's right here? Yeah, let me start. I'll share some thoughts. Thank you for the question. I think that's a very fair question, and I'll ask Brian to jump in. I mean, I think, listen, what you see contemplated in the guide is our prudent approach to beginning to return to business to sustain a predictable performance. You've heard me talk about that last time. Very much focused on driving predictability in this business and consistency.

So I'll just start off with, why hasn't the implied H2 growth or margin a little bit higher following a really good quarter? Do you think, is this conservatism or just Q1 for both the CFO and, I guess, Q2 for the CEO, you just want to make sure that everything's right here?

Mike Nassif: Yeah, let me start. I'll share some thoughts. Thank you for the question. I think that's a very fair question, and I'll ask Brian to jump in. I mean, I think, listen, what you see contemplated in the guide is our prudent approach to beginning to return to business to sustain a predictable performance. You've heard me talk about that last time. Very much focused on driving predictability in this business and consistency.

Hi. Thanks for taking the question and, uh, congrats on uh, on a really good quarter here. Uh, so I'll just start off with. Um, why hasn't the implied H2 growth? Um, or margin? Um, a little bit higher falling, you know, it really good quarter. Um do you think uh is this conservatism or you know like just the first quarter for both the CFO and I guess second quarter for the CEO you just want to make sure that um everything's right here.

Uh, and I would say, just as important and Brian, and I talked a lot about this. We understand the importance of our commitment, to investors and building credibility, that's extremely important to us. And so, with that said, and the lingering macroeconomic weaknesses, tariffs uncertainty, and what have you? You know, we feel confident with the trajectory the early progress we've made and taking all of that into account. Uh, we believe it's appropriate to take a conservative tax for the remainder of the fiscal year and the last point I'd make is, it's important to note that we are now forecasting, a positive growth for the year. Given this latest update on the guide Brian. Yeah I would just add the likes comments in terms of, you know, it's 1 data point. Um you know, we did raise the guy to reflect the the overd delivery in Q2. Um, but you know, we we've got a new team in here. Um, I I've been here for 2 months

Yeah, let me start. I'll share some thoughts—thank you for the question. I think that's a very fair question, and I will ask Brian to jump in. I mean, think, listen, what you see contemplated in the guide,

Now and we just want to make sure that we uh um you know, take the right approach as it relates to how we manage the guidance.

Is our food and approach, um, to beginning to return the business to sustain a predictable performance. You've heard me talk about that last time, and that's very much focused on driving predictability in this business and consistency.

David Naemura: Listen, I'm happy with how the org is reacting to the new ways of working in the very short period of time that we've been here. Q2 is a great quarter, but it's one data point. We've also got a brand new team that's going to be settling in and learning how to work together and really start to scale these things that we've put in place. I would say just as important, and Brian and I have talked a lot about this, we understand the importance of our commitment to investors and building credibility. That's extremely important to us. With that said, and the lingering macroeconomic weaknesses, tariffs, uncertainty, and what have you, we feel confident with the trajectory, the early progress we've made.

Listen, I'm happy with how the org is reacting to the new ways of working in the very short period of time that we've been here. Q2 is a great quarter, but it's one data point. We've also got a brand new team that's going to be settling in and learning how to work together and really start to scale these things that we've put in place. I would say just as important, and Brian and I have talked a lot about this, we understand the importance of our commitment to investors and building credibility. That's extremely important to us. With that said, and the lingering macroeconomic weaknesses, tariffs, uncertainty, and what have you, we feel confident with the trajectory, the early progress we've made.

Anyway anyway, to think about that anyway.

Um, listen, I'm happy with how the org is reacting to the new ways of working in the very short period of time that we've been here. And Q2 is a great quarter, but it's one data point. Um, we've also got a brand new team that's going to be settling in and learning how to work together and really start to scale these things that we put in place.

Yeah, sure. I I'll take the question Mike and add anything you like? The the only thing I would sort of call out we had we did have about 2 million dollars of insecticide

Uh, Tailwind in Q2 um, in the animal safety segment. But but really that would be the only thing of note that I would call out as a as a 1-time.

David Naemura: Taking all of that into account, we believe it's appropriate to take a conservative tack for the remainder of the fiscal year. The last point I'd make is it's important to note that we are now forecasting positive growth for the year given this latest update on the guide. Brian? Yeah, I would just echo Mike's comments in terms of it's one data point. We did raise the guide to reflect the overdelivery in Q2, but we've got a new team in here. I've been here for two months now, and we just want to make sure that we take the right approach as it relates to how we manage the guidance. Perfect. Just asking one kind of basic blocking and tackling question as we look at our models. Were there any one-time revenue tailwinds in the quarter? And as we think about recurring adjustments.

Taking all of that into account, we believe it's appropriate to take a conservative tack for the remainder of the fiscal year. The last point I'd make is it's important to note that we are now forecasting positive growth for the year given this latest update on the guide. Brian?

Bryan Riggsbee: Yeah, I would just echo Mike's comments in terms of it's one data point. We did raise the guide to reflect the overdelivery in Q2, but we've got a new team in here. I've been here for two months now, and we just want to make sure that we take the right approach as it relates to how we manage the guidance.

Uh, and I would say, just as important and Brian, and I have talked a lot about this. We understand the importance of our commitment, to investors and building credibility, that's extremely important to us. And so, with that said, and the lingering macroeconomic weaknesses, tariffs uncertainty, and what have you? You know, we feel confident with the trajectory the early progress we've made and taking all of that into account. Uh, we believe it's appropriate to take a conservative tact for the remainder of the fiscal year. And the last point I'd make is it's important to note that we are now forecasting, a positive growth for the year. Given this latest update on the guide Brian. Yeah I would just add the Mike's comment in terms of, you know, it's 1 data point. Um you know, we did raise the guy to reflect the the overd delivery in Q2. Um but uh you know we've got a new team in here. Um, I I've been here for 2 months

David Westenberg: Perfect. Just asking one kind of basic blocking and tackling question as we look at our models. Were there any one-time revenue tailwinds in the quarter? And as we think about recurring adjustments.

Now and, and we just want to make sure that we, uh, um, you know, take the right approach as it relates to how we manage the guidance.

Yeah, David what what I would just add is that, you know, we saw uh, you know, it's it's it's crazy when you know, the Simplicity is sometimes is you get what you measure? So, you know, driving the commercial Excellence focusing on Key Products when you think about, you know, future film pathogens allergens, which have been a focus for us in that quarter. You see very healthy Returns on those when you drive the right focus. And so you know, we were we were very pleased with how the organizations responding to the additional focus and we feel that a lot of this growth was due to

driving the specificity and Commercial Excellence. So the organic growth is is great and now we're looking to, you know, scale that and accelerate it

David Naemura: How do we think about those cycling through for the rest of the year? I think with the recurring adjustments, it's one of those have limited time, but I mean, I guess you always have new ones. So I guess, anyway, any way to think about that? Anyway. Yeah, sure. I'll take the question. Mike can add anything he likes. The only thing I would sort of call out, we did have about $2 million of insecticide tailwind in Q2 in the animal safety segment, but really, that would be the only thing of note that I would call out as a one-timer. Yeah, David, what I would just add is that we saw it's crazy the simplicity sometimes is you get what you measure. So driving the commercial excellence, focusing on key products.

How do we think about those cycling through for the rest of the year? I think with the recurring adjustments, it's one of those have limited time, but I mean, I guess you always have new ones. So I guess, anyway, any way to think about that? Anyway.

got it, I'll just keep it to 2 knowing that you, you know, you still have a few more animals that have some questions from

Okay. Thanks. S

Bryan Riggsbee: Yeah, sure. I'll take the question. Mike can add anything he likes. The only thing I would sort of call out, we did have about $2 million of insecticide tailwind in Q2 in the animal safety segment, but really, that would be the only thing of note that I would call out as a one-timer.

Your next question comes from Brandon Vasquez with William. Blair, your line is now open.

Perfect. And, um, just asking one kind of basic blocking and tackling question—as we look at our models, were there any one-time revenue tailwinds in the quarter? And, as we think about recurring adjustments, um, how do we think about those cycling through for the rest of the year, I think? Um, the recurring adjustments, it's one of those, um, um, that have limited time. But, I mean, I guess you always have new ones, so I guess—anyway. Any way to think about that, anyway?

Mike Nassif: Yeah, David, what I would just add is that we saw it's crazy the simplicity sometimes is you get what you measure. So driving the commercial excellence, focusing on key products.

Yeah, sure. I, I'll take the question, Mike and add anything you like? The, the only thing I would sort of call out we had we did have about 2 million dollars of insecticide, uh, Tailwind in Q2, um, in the animal safety segment. But but really, that would be the only thing of note that I would call out as a, as a 1-time.

Yeah.

David Naemura: When you think about Petrifilm, pathogens, allergens, which have been a focus for us in that quarter, you see very healthy returns on those when you drive the right focus. And so we were very pleased with how the organization's responding to the additional focus. And we feel that a lot of this growth was due to driving the specificity and commercial excellence. So the organic growth is great, and now we're looking to scale that and accelerate it. Got it. I'll just keep it to two, knowing that you still have a few more analysts to ask questions from. Okay. Thanks, David. Your next question comes from Brandon Vazquez with William Blair. Your line is now open. Hey, good morning, guys. Thanks for taking the question, and congrats on a nice quarter as well.

When you think about Petrifilm, pathogens, allergens, which have been a focus for us in that quarter, you see very healthy returns on those when you drive the right focus. And so we were very pleased with how the organization's responding to the additional focus. And we feel that a lot of this growth was due to driving the specificity and commercial excellence. So the organic growth is great, and now we're looking to scale that and accelerate it.

Hey, good morning guys. Thanks for taking the question and uh, congrats on a a nice quarter as well. Um, Mike maybe as you sit you know you're maybe about 6 months into the seat. Now, you guys have had a strong quarter here, talk to us a little bit about specifically what in the commercial organization has changed. That is working. This is probably the first time in several quarters, if not a couple of years, where you've been able to kind of accurately forecast, the business and actually give improving uh expectations for the business on the go forward basis. So what is working? And what giving you the confidence to raise guidance already uh, less than a year into the sea into the CEO?

Yeah, thanks Brandon and listen. I wish I can tell you something. That makes me look really smart. Um, reality is it's just focusing on the basics and driving simplicity

um, you know, I think that, you know, last quarter when we were talking about, you know, in in the quarter discussion but also in the 101,

Yeah, David what what I would just add is that, you know, we saw, you know, it's it's it's crazy when you know, the Simplicity is sometimes is you get what you measure? So, you know, driving the commercial Excellence focusing on Key Products when you think about, you know, future film pathogens allergens, which have been a focus for us in that quarter. You see very healthy Returns on those when you drive the right focus. And so, you know, we were, we were very pleased with how the organizations responding to the additional focus and we feel that a lot of this growth was due to, uh,

Was driving the specificity and Commercial Excellence. So the organic growth is great, and now we're looking to, you know, scale that and accelerate it.

David Westenberg: Got it. I'll just keep it to two, knowing that you still have a few more analysts to ask questions from.

Mike Nassif: Okay. Thanks, David.

Got it, I'll just keep it to two, knowing that you still have a few more animals to ask for questions from.

Okay.

David Westenberg: Your next question comes from Brandon Vazquez with William Blair. Your line is now open.

Thanks David.

You know, specifically, the organization that was very comfortable doing monthly forecasts, uh, for example and very early on that didn't seem like the right approach, given our history of missing our forecasts. So we instituted a weekly latest best estimate process, where we bring in all of the sales leaders, and all of the supporting functions on a weekly basis, reviewing the forecast, reviewing the risks and opportunities

Identities, reviewing, the targeted accounts.

Brandon Vazquez: Hey, good morning, guys. Thanks for taking the question, and congrats on a nice quarter as well.

Your next question comes from Brandon Vasquez with William Blair. Your line is now open.

Discussing what needs to be uh true. What do we need to do to enable the sales team to deliver on the commitments of the customers?

David Naemura: Mike, maybe as you sit maybe about six months into the seat now, you guys have had a strong quarter here. Talk to us a little bit about specifically what in the commercial organization has changed that is working. This is probably the first time in several quarters, if not a couple of years, where you've been able to kind of accurately forecast the business and actually give improving expectations for the business on a go-forward basis. So what is working and what's giving you the confidence to raise guidance already less than a year into the CEO seat? Yeah, thanks, Brandon. And listen, I wish I can tell you something that makes me look really smart. Reality is it's just focusing on the basics and driving simplicity.

Mike, maybe as you sit maybe about six months into the seat now, you guys have had a strong quarter here. Talk to us a little bit about specifically what in the commercial organization has changed that is working. This is probably the first time in several quarters, if not a couple of years, where you've been able to kind of accurately forecast the business and actually give improving expectations for the business on a go-forward basis. So what is working and what's giving you the confidence to raise guidance already less than a year into the CEO seat?

Mike Nassif: Yeah, thanks, Brandon. And listen, I wish I can tell you something that makes me look really smart. Reality is it's just focusing on the basics and driving simplicity.

Maybe about 6 months into the seat now, you guys have had a strong quarter here, talk to us a little bit about specifically what in the commercial organization has changed. That is working. This is probably the first time in several quarters, if not a couple of years, where you've been able to kind of accurately forecast, the business and actually give improving, uh, expectations for the business on a go forward basis. So what is working and what's giving you the confidence to raise guidance already, uh, less than a year into the sea in the CEO seat.

Yeah, thanks, Brandon. And listen, I wish I could tell you something that makes me look really smart. Um, the reality is, it's just focusing on the basics and driving simplicity.

David Naemura: I think that last quarter, when we were talking about in the quarter discussion, but also in the one-on-ones, specifically, the organization was very comfortable doing monthly forecasts, for example. And very early on, that didn't seem like the right approach given our history of missing our forecasts. So we instituted a weekly latest best estimate process where we bring in all of the sales leaders and all of the supporting functions on a weekly basis, reviewing the forecast, reviewing the risks and opportunities, reviewing the targeted accounts, discussing what needs to be true, what do we need to do to enable the sales team to deliver on the commitments of the customers. And I would say in the first couple of weeks, it was a little bit rough, but now you see the leaders running the calls, and the whole organization is really focused on enabling the commercial team.

I think that last quarter, when we were talking about in the quarter discussion, but also in the one-on-ones, specifically, the organization was very comfortable doing monthly forecasts, for example. And very early on, that didn't seem like the right approach given our history of missing our forecasts. So we instituted a weekly latest best estimate process where we bring in all of the sales leaders and all of the supporting functions on a weekly basis, reviewing the forecast, reviewing the risks and opportunities, reviewing the targeted accounts, discussing what needs to be true, what do we need to do to enable the sales team to deliver on the commitments of the customers. And I would say in the first couple of weeks, it was a little bit rough, but now you see the leaders running the calls, and the whole organization is really focused on enabling the commercial team.

Um, you know, I think that, you know, last quarter when we were talking about, you know, in the quarter discussion but also in the one-on-ones.

Um, and, you know, I would say in the first couple weeks, it was a little bit rough, but now you see, the leaders running, the calls, and the whole organization, um, is really focused on enabling the commercial team and and 1 of the things that I think I've shared and I've been trying to instill in the organization is, our commercial team needs to be very customer Centric. The rest of the organization needs to be in service of the commercial team and that is how we're driving this. And so early signs, um, is that this is really resonating with the organization and I think we can kind of see that reflective in the Q2 performance. Now that said, uh, we don't want to get ahead of our skis. We're going to continue to do the same thing. This quarter that we did last quarter, um, get the new leaders on board drive more calm, you know, drive, more, uh, specificity making sure. We're really looking at the opportunities addressing the concerns, you know, that we have and the headwinds in the market. Um and I think really that is the the formula for success.

You know, specifically, the organization was very comfortable doing monthly forecasts, uh, for example, and very early on, that didn't seem like the right approach, given our history of missing our forecasts. So we instituted a weekly latest best estimate process, where we bring in all of the sales leaders and all of the supporting functions on a weekly basis—reviewing the forecast, reviewing the risks and opportunities, reviewing the targeted accounts.

Got it. Great. That's that's helpful. And then what are the other big questions? I get a lot with investors now and and I'm sure you're aware is just the feature film manufacturing process. You made a couple of comments in your prepared remarks on, uh, some confidence there. Can you maybe just spend another minute on? Like what is it? That's giving you confidence that this is continuing on time. Uh, and

And um, you know what are you seeing in the early ramp of that facility?

Discussing what needs to be, uh, true. What do we need to do to enable the sales team to deliver on the commitments of the customers?

David Naemura: And one of the things that I think I've shared and I've been trying to instill in the organization is our commercial team needs to be very customer-centric. The rest of the organization needs to be in service of the commercial team. And that is how we're driving this. And so early signs is that this is really resonating with the organization. And I think we can kind of see that reflective in the Q2 performance. Now, that said, we don't want to get ahead of our skis. We're going to continue to do the same thing this quarter that we did last quarter, get the new leaders on board, drive more specificity, making sure we're really looking at the opportunities, addressing the concerns that we have, and the headwinds in the market. And I think really that is the formula for success. Got it. Great. That's helpful.

And one of the things that I think I've shared and I've been trying to instill in the organization is our commercial team needs to be very customer-centric. The rest of the organization needs to be in service of the commercial team. And that is how we're driving this. And so early signs is that this is really resonating with the organization. And I think we can kind of see that reflective in the Q2 performance. Now, that said, we don't want to get ahead of our skis. We're going to continue to do the same thing this quarter that we did last quarter, get the new leaders on board, drive more specificity, making sure we're really looking at the opportunities, addressing the concerns that we have, and the headwinds in the market. And I think really that is the formula for success.

Yeah, absolutely. This is super important project for us, you know, in q1. I shared that uh, early on. I knew this was a priority and I spent a lot of time with Jim, Walters our head of operations, and the manufacturing team. Really looking at the at this plan.

Um, and, you know, I would say in the first couple weeks, it was a little bit rough, but now you see, the leaders running, the calls, and the whole organization, um, is really focused on enabling the commercial team and and 1 of the things that I think I've shared and I've been trying to instill in the organization is, our commercial team needs to be very customer Centric. The rest of the organization needs to be in service of the commercial team and that is how we're driving this. And so early signs, um, is that this is really resonating with the organization and I think we can kind of see that reflective in the Q2 performance. Now that said, uh, we don't want to get ahead of our skis. We're going to continue to do the same thing. This quarter that we did last quarter, um, get the new leaders on board drive more, you know, drive, more uh, specificity making sure. We're really looking at the opportunities addressing the concerns, you know, that we have and the headwinds in the market. Um and I think really that is the the formula for success.

Brandon Vazquez: Got it. Great. That's helpful.

David Naemura: And then one of the other big questions I get a lot with investors now, and I'm sure you're aware, is just the Petrifilm manufacturing process. You made a couple of comments in your prepared remarks on some confidence there. Can you maybe just spend another minute on what is it that's giving you confidence that this is continuing on time? And what are you seeing in the early ramp of that facility? Yeah, absolutely. This is a super important project for us. In Q1, I shared that early on, I knew this was a priority, and I spent a lot of time with Jim Walters, our head of operations, and the manufacturing team, really looking at this plan. Having been in biopharma businesses, and medtech businesses, any tech transfer has a lot of challenges. In this case, we're doing 17 on 17 SKUs.

And then one of the other big questions I get a lot with investors now, and I'm sure you're aware, is just the Petrifilm manufacturing process. You made a couple of comments in your prepared remarks on some confidence there. Can you maybe just spend another minute on what is it that's giving you confidence that this is continuing on time? And what are you seeing in the early ramp of that facility?

Things I can come to play in, in making sure that this transition is is extremely successful. Um, and I think that since then, we have executed that plan and that plan Remains the Same, we remain, uh, extremely focused and the process of doing that is starting to, uh, you know, demonstrate some results. And so, we're we're still on track for, uh, the November 2027 timeline. We're in the late stages of production testing, which has gone very well so far in parallel, we've begun initial phases of product validation, uh, which we expect to continue into the summer. Um, you know, as I mentioned um in the opening remarks, throughout the course of production testing and the initial product validation work

Mike Nassif: Yeah, absolutely. This is a super important project for us. In Q1, I shared that early on, I knew this was a priority, and I spent a lot of time with Jim Walters, our head of operations, and the manufacturing team, really looking at this plan. Having been in biopharma businesses, and medtech businesses, any tech transfer has a lot of challenges. In this case, we're doing 17 on 17 SKUs.

Got it. Great. That's that's helpful. And then 1 of the other big questions I get a lot with investors now and and I'm sure you're aware is just the feature film manufacturing process. You made a couple of comments in your prepared remarks on, uh, some confidence there. Can you maybe just spend another minute on? Like what is it? That's giving you confidence that this is continuing on time. Uh, and um, you know what are you seeing in the early ramp of

That facility.

To demonstrated that we can manufacture feature film uh, on the new equipment which is in a very important Milestone. Um, you know, and so we're going to continue to execute the plan. We've got the right Talent, the right resources, this is a top Focus for us. We are not sparing any um any any Focus or resource required, and uh that's what gives me confidence.

Yeah, absolutely. This is a super important project for us, you know, in Q1. I shared that, uh, early on. I knew this was a priority, and I spent a lot of time with Jim Walters, our Head of Operations, and the manufacturing team. Really looking at this plan.

Got it. Thanks a lot guys. And congrats again.

Thanks Brandon.

David Naemura: I was very proud and happy, pleasantly surprised, I guess happy, of how the team has thought about all of the potential factors and things that can come to play in making sure that this transition is extremely successful. I think that since then, we have executed that plan. That plan remains the same. We remain extremely focused, and the process of doing that is starting to demonstrate some results. So we're still on track for the November 2027 timeline. We're in the late stages of production testing, which has gone very well so far. In parallel, we've begun initial phases of product validation, which we expect to continue into the summer.

I was very proud and happy, pleasantly surprised, I guess happy, of how the team has thought about all of the potential factors and things that can come to play in making sure that this transition is extremely successful. I think that since then, we have executed that plan. That plan remains the same. We remain extremely focused, and the process of doing that is starting to demonstrate some results. So we're still on track for the November 2027 timeline. We're in the late stages of production testing, which has gone very well so far. In parallel, we've begun initial phases of product validation, which we expect to continue into the summer.

Your next question comes from subu nambi with Guggenheim Securities. Your line is now open.

Hi, guys, this is Thomas on Peru. Thanks for taking our questions for the growth and indicator, testing and culture media. How much of that was volume driven and then, how much was on price, just trying to gauge how we should think about growth for the rest of the year. And if that's sustainable

Yeah, I I can share some thoughts and maybe Brian wants to add a few things. I would say that um

uh,

David Naemura: As I mentioned in the opening remarks, throughout the course of production testing and the initial product validation work, we've demonstrated that we can manufacture Petrifilm on the new equipment, which is a very important milestone. So we're going to continue to execute the plan. We've got the right talent, the right resources. This is a top focus for us. We are not sparing any focus or resource required. And that's what gives me confidence. Got it. Thanks a lot, guys, and congrats again. Thanks, Brandon. Your next question comes from Subbu Nambi with Guggenheim Securities. Your line is now open. Hi, guys. This is Thomas on for Subbu. Thanks for taking our questions. For the growth in indicator testing in culture media, how much of that was volume-driven, and then how much was on price?

As I mentioned in the opening remarks, throughout the course of production testing and the initial product validation work, we've demonstrated that we can manufacture Petrifilm on the new equipment, which is a very important milestone. So we're going to continue to execute the plan. We've got the right talent, the right resources. This is a top focus for us. We are not sparing any focus or resource required. And that's what gives me confidence.

Um, you know, having been in biofarma businesses and metech businesses, any Tech transfer has a lot of challenges. In this case, we're doing 17 on 17 skus and I was very proud and um, and happy pleasantly surprised. I guess happy, uh, of how the team has thought about all of the potential factors and things that can come to play in, in making sure that this transition is is extremely successful. Um, and I think that since then, we have executed that plan and that plan Remains the Same, we remain, uh, extremely focused and the process of doing that is starting to, uh, you know, demonstrate some results. And so, we're we're still on track for, uh, the November 2027 timeline. We're in the late stages of production testing, which has gone very well so far in parallel, we've begun initial phases of product validation, uh, which we expect to continue into the summer. Um, you know, as I mentioned, um, in the opening in remarks throughout the course of production testing and the initial product validation work,

Demonstrated that we can manufacture feature film uh on the new equipment which is in a very important Milestone. Um you know, and so we're going to continue to execute the plan. We've got the right Talent, the right resources, this is a top Focus for us. We are not sparing any um any any Focus or resource required, and uh that's what gives me confidence.

Brandon Vazquez: Got it. Thanks a lot, guys, and congrats again.

Mike Nassif: Thanks, Brandon.

Got it. Thanks a lot, guys. And congrats again.

Operator: Your next question comes from Subbu Nambi with Guggenheim Securities. Your line is now open.

Thanks Brandon.

[Analyst] (Guggenheim Securities): Hi, guys. This is Thomas on for Subbu. Thanks for taking our questions. For the growth in indicator testing in culture media, how much of that was volume-driven, and then how much was on price?

Most of it is organic growth. You know, these are, these are product lines that we drove specific focus on. Um and so there are some, you know, last quarter we did share that. There was a part of the decline of Petri film was due to a inventory correction in our major distributor, in the United States. Uh, we've seen that distributor, go back to normal, uh, levels. And when you look at sellout data it's around 9%, you know. So the, the pixel Market continues to be healthy. We continue to be the market leader, um, and growing. You know, at that pace, I think pathogens is also another 1 where we're seeing significant growth, but organic growth just due to, you know, all of the illnesses that arise in illnesses and other things, you know, that you see. And then when the allergens you know, that was uh as you guys might be aware, you know, we've had some supply issues in the past, we're not

Your next question comes from Suey with Guggenheim Securities. Your line is now open.

David Naemura: Just trying to gauge how we should think about growth for the rest of the year and if that's sustainable. Yeah, I can share some thoughts, and maybe Brian wants to add a few things. I would say that most of it is organic growth. These are product lines that we drove specific focus on. And so, there are some. Last quarter, we did share that there was a part of the decline of Petrifilm was due to an inventory correction in our major distributor in the United States. We've seen that distributor go back to normal levels. And when you look at sellout data, it's around 9%. So the Petrifilm market continues to be healthy. We continue to be the market leader and growing at that pace.

Just trying to gauge how we should think about growth for the rest of the year and if that's sustainable.

Hi guys, this is Thomas on for CEU. Thanks for taking our questions. For the growth in indicator testing and culture media, how much of that was volume-driven, and then how much was on price? Just trying to gauge how we should think about growth for the rest of the year, and if that's sustainable.

Yeah, I can share some thoughts, and maybe Brian wants to add a few things. I would say that most of it is organic growth. These are product lines that we drove specific focus on. And so, there are some. Last quarter, we did share that there was a part of the decline of Petrifilm was due to an inventory correction in our major distributor in the United States. We've seen that distributor go back to normal levels. And when you look at sellout data, it's around 9%. So the Petrifilm market continues to be healthy. We continue to be the market leader and growing at that pace.

2 of those were working. We worked through all of the back orders um, and were, you know, regaining some lost customers. Uh and we're really looking to get that platform back on. Uh same growth know, Brian. If anything going to share that. Yeah, I would just say um in total, you know, up 6% um and and just more volume than price would be. The only thing I would have inside.

Yeah, I can share some thoughts, and maybe Brian wants to add a few things. I would say that, um,

uh,

Okay awesome. And then maybe just to stay there on Petri film.

What are your updated? Assumptions around the 2026 growth rate and then just how should we think about this longer term? Um, if much of the growth was volume, is their pricing power. Still available in the market to take for feature film. Thank you guys.

Yeah, I mean I think the uh there's always there's always pricing opportunity and in fact that's a standard language in all of our contracts. Uh 1 of the things that uh

David Naemura: I think pathogens is also another one where we're seeing significant growth, organic growth, just due to all of the rise in illnesses and other things that you see. And then with allergens, that was, as you guys might be aware, we've had some supply issues in the past. We're not through those. We've worked through all of the back orders, and we're regaining some lost customers. And we're really looking to get that platform back on sustained growth. I don't know, Brian, if anything you want to share there. Yeah, I would just say in total, up 6% and just more volume than price would be the only thing I would emphasize. Okay. Awesome. And then maybe just to stay there on Petrifilm, what are your updated assumptions around the 2026 growth rate?

I think pathogens is also another one where we're seeing significant growth, organic growth, just due to all of the rise in illnesses and other things that you see. And then with allergens, that was, as you guys might be aware, we've had some supply issues in the past. We're not through those. We've worked through all of the back orders, and we're regaining some lost customers. And we're really looking to get that platform back on sustained growth. I don't know, Brian, if anything you want to share there.

You know, is not unique to this business, is that we have different contract, durations and different contract expiry. So as new contracts, come on board, certainly the inflationary pricing adjustments are are introduced. Um, and of course, when we launched, uh, new peachy film, uh, tests that we always, you know, price that accordingly but I think that continues to be an opportunity to adjust for inflationary measures as new contracts come up for uh, renewal

Most of it is organic growth. You know, these are, these are product lines that we drove specific focus on. Um and so there are some, you know, last quarter we did share that. There was a part of the decline of Petri film was due to a inventory correction in our major distributor, in the United States. Uh, we've seen that distributor, go back to normal, uh, levels. And when you look at sellout data, it's around 9%, you know. So the, the Petri film Market continues to be healthy. We continue to be the market leader, um, and growing. You know, at that pace, I think pathogens is also another 1 where we're seeing significant growth, but organic growth just due to you know all of the illness that the rise in illnesses and other things, you know that you see. And then when the allergens you know, that was uh as you guys might be aware, you know, we've had some supply issues in the past, we're not through those, we're working. We've worked through all of the back orders.

Bryan Riggsbee: Yeah, I would just say in total, up 6% and just more volume than price would be the only thing I would emphasize.

Yeah, I think the only thing I would add is just that you may recall that in q1. We had 1 of our largest uh us distributor, adjusting their inventory levels, which provided for a headwind in q1, even though the End Market was still strong and so that's phenomenal. Wasn't there in the second quarter. So we would expect the remainder of the year for that product to look more like Q2

[Analyst] (Guggenheim Securities): Okay. Awesome. And then maybe just to stay there on Petrifilm, what are your updated assumptions around the 2026 growth rate?

You know.

Um, and we're regaining some lost customers. Uh, and we're really looking to get that platform back on, uh, sustained growth. I know Brian, if anything, is going to share that. Yeah, I would just say, um, in total, you know, up 6%, um, and just more volume than price would be the only thing I would add inside.

Okay, awesome. And then maybe just to stay there on Petri film.

David Naemura: And then just how should we think about this longer term if much of the growth was volume? Is there pricing power still available in the market to take for Petrifilm? Thank you, guys. Yeah. I mean, I think there's always pricing opportunity. And in fact, that's the standard language in all of our contracts. One of the things that is not unique to this business is that we have different contract durations and different contract expiry. So as new contracts come on board, certainly the inflationary pricing adjustments are introduced. And of course, when we launch new Petrifilm tests, we always price that accordingly. But I think there continues to be an opportunity to adjust for inflationary measures as new contracts come up for renewal. Yeah.

And then just how should we think about this longer term if much of the growth was volume? Is there pricing power still available in the market to take for Petrifilm? Thank you, guys.

Ladies and gentlemen, as a reminder, should you have a question please star 1. Your next question comes from Thomas de bouncy with nephron research. Your line is now open.

Mike Nassif: Yeah. I mean, I think there's always pricing opportunity. And in fact, that's the standard language in all of our contracts. One of the things that is not unique to this business is that we have different contract durations and different contract expiry. So as new contracts come on board, certainly the inflationary pricing adjustments are introduced. And of course, when we launch new Petrifilm tests, we always price that accordingly. But I think there continues to be an opportunity to adjust for inflationary measures as new contracts come up for renewal.

What are your updated assumptions around the 2026 growth rate, and then just how should we think about this longer term? Um, if much of the growth was volume, is there pricing power still available in the market to take for feature film? Thank you, guys.

Yeah, I mean I think the uh there's always there's always pricing opportunity and in fact that's a standard language in all of our contracts. Uh 1 of the things that uh

Obviously they've had to deal with some stockouts of certain products like a simple collection and just their willingness to kind of work with you, as you, you know, ramp up production to get back, towards more normal inventory levels and then just overall of the business. Um, is there a rough breakout you could give in terms of volume versus price uh, of that or get a growth? Uh, thanks

Bryan Riggsbee: Yeah.

You know, it's not unique to this business, is that we have different contract, durations and different contract expiry. So as new contracts, come on board, certainly the inflationary pricing adjustments are are introduced. Um, and of course, when we launched, uh, new peachy film, uh, tests that we always, you know, price that accordingly. But I think there continues to be an opportunity to adjust for inflationary measures as new contracts come up for uh, renewal

David Naemura: I think the only thing I would add is just that you may recall that in Q1, we had one of our largest US distributors adjusting their inventory levels, which provided for a headwind in Q1, even though the end market was still strong. And so that phenomenon wasn't there in the second quarter. So we would expect the remainder of the year for that product to look more like Q2. Yeah, that's a good one. Ladies and gentlemen, as a reminder, should you have a question, please press star one. Your next question comes from Thomas Dibounce with Nephron Research. Your line is now open. Hi. Thanks, guys, for taking the question. I was just wondering, just in terms of, I guess, helping get to the CEO role, your feedback from customers on the business overall.

I think the only thing I would add is just that you may recall that in Q1, we had one of our largest US distributors adjusting their inventory levels, which provided for a headwind in Q1, even though the end market was still strong. And so that phenomenon wasn't there in the second quarter. So we would expect the remainder of the year for that product to look more like Q2.

Thanks Tom for your question. Um, you know, by now I have visited all regions, um, and have visited customers, uh, Distributors direct customers from around the world. And I honestly have to say, you know, I've never been in a market where customers are rooting for you. Like they are for neoen.

Mike Nassif: Yeah, that's a good one.

Yeah, I think the only thing I would add is just that you may recall that in Q1, we had our largest U.S. distributor adjusting their inventory levels, which provided for a headwind in Q1 even though the end market was still strong. And so that phenomenon wasn't there in the second quarter. So we would expect the remainder of the year for that product to look more like Q2.

Ladies and gentlemen, as a reminder, should you have a question, please press star one. Your next question comes from Thomas Dibounce with Nephron Research. Your line is now open.

Yeah.

Ladies and gentlemen, as a reminder, should you have a question, please press star 1.

Thomas DeBourcy: Hi. Thanks, guys, for taking the question. I was just wondering, just in terms of, I guess, helping get to the CEO role, your feedback from customers on the business overall.

Your next question comes from Thomas de Bouncy with Nephron Research. Your line is now open.

David Naemura: Obviously, they've had to deal with some stockouts of certain products, like in sample collection, and just their willingness to kind of work with you as you ramp up production and get back towards more normal inventory levels. Then just overall of the business, is there a rough breakout you could give in terms of volume versus price of that organic growth? Thanks. Thanks, Tom, for your question. By now, I have visited all regions and have visited customers, distributors, direct customers from around the world. And I honestly have to say, I've never been in a market where customers are rooting for you like they are for Neogen. We are the food safety company. I can't tell you how many customers, some more impacted than others with our supply issues, but they want us to succeed.

Obviously, they've had to deal with some stockouts of certain products, like in sample collection, and just their willingness to kind of work with you as you ramp up production and get back towards more normal inventory levels. Then just overall of the business, is there a rough breakout you could give in terms of volume versus price of that organic growth? Thanks.

We are the food safety company. I can't tell you how many customers, um, you know, some more impacted than others with our supply issues, but they want us to succeed. They see us as a vital partner in their food safety quality program. And if you know if you if you look at food safety quality program at site, these are cost centers. You know, these are um, you know, they're doing the testing required and sometimes they have a lot of turnover and when there are gaps in their competency or gaps in their training or knowledge, they rely on neoen to help fill that Gap. And I think that is 1 of the, uh, 1 of the, um, competitive advantages that we have in addition to having a full food safety portfolio. Is that

We are seeing as the experts in the food safety business and so it has been consistent around the world. Yes, some customers are frustrated, but they very much want us and need us to succeed because that means that their food safety programs will also succeed.

Mike Nassif: Thanks, Tom, for your question. By now, I have visited all regions and have visited customers, distributors, direct customers from around the world. And I honestly have to say, I've never been in a market where customers are rooting for you like they are for Neogen. We are the food safety company. I can't tell you how many customers, some more impacted than others with our supply issues, but they want us to succeed.

Hi. Uh, thanks guys, for taking the question. Um, was just wondering, uh, like it just in terms of, you know, I guess probably get to the CEO role, your feedback from customers. Uh, uh, you know, the business overall. Obviously, they've had to deal with some stock outs of certain products, like it's simple collection. It just their willingness to kind of work with you, as you, you know, ramp up production to get back, towards more normal inventory levels and then just overall the business. Um, is there a rough breakout you could give in terms of volume versus price in terms about uh of that organic growth? Uh, thanks.

Brian, I know if you have yeah, I would just say similar to my earlier comments.

Around another product category. It was it was positive, but more volume than priced.

Yeah, great. Thank you.

Don't know, for the questions at this time, I will now turn the call over to Mike NASA for closing remarks.

Thanks, Tom, for your question. Um, you know, by now I have visited all regions, um, and have visited customers, uh, distributors, direct customers from around the world. And I honestly have to say, you know, I've never been in a market where customers are rooting for you like they are for Neogen.

David Naemura: They see us as a vital partner in their food safety quality program. If you look at food safety quality program at SICE, these are cost centers. These are. They're doing the testing required, and sometimes they have a lot of turnover. When there are gaps in their competency or gaps in their training or knowledge, they rely on Neogen to help fill that gap. I think that is one of the competitive advantages that we have, in addition to having a full food safety portfolio, is that we are seen as the experts in the food safety business. So it has been consistent around the world. Yes, some customers are frustrated, but they very much want us and need us to succeed because that means that their food safety programs will also succeed. Now, Brian, I don't know if you have any more to add.

They see us as a vital partner in their food safety quality program. If you look at food safety quality program at SICE, these are cost centers. These are. They're doing the testing required, and sometimes they have a lot of turnover. When there are gaps in their competency or gaps in their training or knowledge, they rely on Neogen to help fill that gap. I think that is one of the competitive advantages that we have, in addition to having a full food safety portfolio, is that we are seen as the experts in the food safety business. So it has been consistent around the world. Yes, some customers are frustrated, but they very much want us and need us to succeed because that means that their food safety programs will also succeed. Now, Brian, I don't know if you have any more to add.

Great, thank you everybody for joining and all the conversations and the feedback. I very much look forward to seeing many of you next week at JP, Morgan to continue the conversation and have a great rest of your day.

Ladies and gentlemen, this concludes the conference call for today. We thank you for participating and ask that you, please disconnect your line.

Uh, we are the food safety company. I can't tell you how many customers, um, you know, some more impacted than others with our supply issues. Uh, but they want us to succeed. They see us as a vital partner in their food safety quality program. If, you know, if you look at food safety quality programs at sites, these are cost centers. You know, these are, um, you know, they're doing the testing required and sometimes they have a lot of turnover, and when there are gaps in their competency or gaps in their training or knowledge, they rely on Neogen to help fill that gap, and I think that is one of the, uh, one of the, um,

Some customers are frustrated, but they very much want us and need us to succeed, because that means that their food safety programs will also succeed.

David Naemura: Yeah, I would just say similar to my earlier comments around another product category, it was positive, but more volume than price. Yeah. Great. Thank you. No questions at this time. I will now turn the call over to Mike Nassif for closing remarks. Great. Thank you, everybody, for joining and all of the conversations and the feedback. I very much look forward to seeing many of you next week at J.P. Morgan to continue the conversation and have a great rest of your day. Ladies and gentlemen, this concludes the conference call for today. We thank you for participating and ask that you please disconnect your lines.

Bryan Riggsbee: Yeah, I would just say similar to my earlier comments around another product category, it was positive, but more volume than price.

Uh, Brian, I know if you have—yeah, I would just say, similar to my earlier comments.

Thomas DeBourcy: Yeah. Great. Thank you.

Around another product category, it was positive, but more volume than price.

Operator: No questions at this time. I will now turn the call over to Mike Nassif for closing remarks.

Yeah, great. Thank you.

Mike Nassif: Great. Thank you, everybody, for joining and all of the conversations and the feedback. I very much look forward to seeing many of you next week at J.P. Morgan to continue the conversation and have a great rest of your day.

I don't know, for the questions at this time, I will now turn the call over to Mike Nassif at NASA for closing remarks.

Operator: Ladies and gentlemen, this concludes the conference call for today. We thank you for participating and ask that you please disconnect your lines.

Great, thank you, everybody, for joining and for all of the conversations and the feedback. I very much look forward to seeing many of you next week at JP Morgan to continue the conversation. Have a great rest of your day.

Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.