Mesa Laboratories (NASDAQ:MLAB) reported a sharp increase in profitability for its third fiscal quarter, as strong demand for its biopharmaceutical tools more than offset a collapse in its Chinese diagnostic business.
The Lakewood, Colorado-based life sciences firm posted revenue of $65.1 million for the quarter ended December 31, 2025, a 3.6% increase over the same period last year and a 7.2% sequential jump.
The results were spearheaded by the Biopharmaceutical Development (BPD) division, which saw organic revenue surge 17.5%, and a recovery in Sterilization and Disinfection Control (SDC) deliveries, which grew 6%.
The gains came despite a 57% plunge in the company's Clinical Genomics (CG) revenue in China, a market currently hampered by regulatory shifts and tariff headwinds.
Excluding the China-based genomics business, Mesa’s organic revenue growth would have been a more robust 5.7%.
Meanwhile, Mesa’s preferred profitability metric, Adjusted Operating Income (AOI) excluding unusual items, rose to $17.1 million, or 26.2% of revenue.
The company also continued to fortify its balance sheet, repaying $8.7 million in debt during the quarter.
This brought its Total Net Leverage Ratio down to 2.62, a significant reduction from 3.16 just six months prior.