Recent News
Dec. 18, 2025 — Mesa Labs announced management would present at the 44th Annual J.P. Morgan Healthcare Conference on Jan. 14, 2026, confirming a formal presentation by the CEO and CFO. Jan. 7, 2026 — The Board declared a regular quarterly dividend of $0.16 per share payable March 16, 2026, to holders of record on Feb. 28, 2026.
Technical Analysis
Directional indicators show limited trend strength: the ADX at 15.74 indicates no established trend, but directional pressure leans bearish as DI- (23.41) increases while DI+ (17.95) decreases; that directional divergence implies downside bias against the current valuation narrative over the near term.
Momentum measures confirm waning upside: MACD sits at 0.36 below its signal line at 1.25 and the MACD trend decreases, a configuration that signals bearish momentum and reduces the probability of an immediate bullish reversal unless MACD crosses back above the signal line.
MRO registers -18.36 with a peak & reversal pattern, indicating the price sits below the model target and that mean-reversion forces could produce upward pressure; this contrasts with the other momentum signals and suggests any bounce may be corrective rather than trend-confirming.
RSI at 52.86 with a decreasing trend implies neutral-to-weak momentum; absent a clear push above short-term averages, momentum appears insufficient to overcome the current overhead resistance implied by moving averages and trend lines.
Price trades below several short- and long-term averages — the 12-day EMA peaked and reversed at $82.44 while the 20-day average rests at $83.73, the 50-day at $80.18, and the 200-day at $84.20 — placing the close at $78.68 beneath key averages and reinforcing a near-term cap on upside relative to the current valuation.
Bollinger band context shows the 1x lower band at $80.16 and the 2x lower band at $76.60; the stock sits between those bands, indicating compressed volatility with limited immediate downside before the next structural support. Short-term volatility remains elevated relative to the 52-week baseline given a 42-day beta of 1.61 and 52-week beta of 1.53.
Fundamental Analysis
Total revenue stands at $60,737,000 with gross profit of $37,331,000 and operating income of $4,724,000. Net income reached $2,476,000 for the period ending 2025-09-30. YoY revenue growth shows -4.46% while revenue growth on the latest reported basis measures +2.01% year-over-year when presented as the primary revenueGrowth figure; quarter-over-quarter revenue growth shows a steeper contraction with revenueGrowth QoQ at -148.06% (reflecting seasonal or timing effects in the period comparisons reported).
Profitability metrics present mixed signals: EBIT margin equals 8.00%, which sits below the industry peer mean of 19.13% and the industry peer median of 19.60%. EBIT margin contracted QoQ by -48.26% and YoY by -32.24%, indicating margin pressure versus the recent quarterly base even as operating income improved in absolute terms versus the year-ago quarter reported in the results release.
Earnings per share beat estimates: EPS came in at $2.11 versus an estimate of $1.56, producing an EPS surprise of +$0.55 or +35.26%, a clear positive against expectations that supports the valuation case despite margin compression.
Cash flow and leverage show financing sensitivity: operating cash flow reached $8,222,000 with free cash flow at $7,130,000 and a free cash flow yield of 1.75%, above the industry peer mean free cash flow yield of 0.96%. Cash and short-term investments total $20,422,000 against total debt of $190,430,000 and net debt of $154,430,000; debt-to-EBITDA equals 17.78 and interest coverage sits near 1.70, highlighting elevated leverage and limited headroom on interest coverage despite positive cash generation.
Liquidity metrics remain supportive: current ratio equals 2.02 and quick ratio equals 1.44, with a cash conversion ratio of 1.24. Asset efficiency stays low with an asset turnover ratio of 0.14, though that figure sits slightly above the industry peer mean of 0.12 and has improved QoQ and YoY by +2.36% and +8.46% respectively.
Valuation context: price multiples present below peer averages on several measures — P/B at 2.28 sits below the industry peer mean of 5.76; P/E at 35.06 sits below the industry peer mean of 123.06; enterprise multiple at 53.88 sits below the industry peer mean of 85.78. Free cash flow yield also sits above the industry peer mean. The current valuation as determined by WMDST: under-valued, reflecting lower relative multiples and positive cash generation juxtaposed with elevated leverage and margin contraction.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-06 |
| NEXT REPORT DATE: | 2026-02-05 |
| CASH FLOW | Begin Period Cash Flow | $ 21.3 M |
| Operating Cash Flow | $ 8.2 M | |
| Capital Expenditures | $ -1.09 M | |
| Change In Working Capital | $ -5.45 M | |
| Dividends Paid | $ -882.00 K | |
| Cash Flow Delta | $ -857.00 K | |
| End Period Cash Flow | $ 20.4 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 60.7 M | |
| Forward Revenue | $ 51.2 M | |
| COSTS | ||
| Cost Of Revenue | $ 23.4 M | |
| Depreciation | $ 1.3 M | |
| Depreciation and Amortization | $ 5.8 M | |
| Research and Development | $ 5.0 M | |
| Total Operating Expenses | $ 56.0 M | |
| PROFITABILITY | ||
| Gross Profit | $ 37.3 M | |
| EBITDA | $ 10.7 M | |
| EBIT | $ 4.9 M | |
| Operating Income | $ 4.7 M | |
| Interest Income | — | |
| Interest Expense | $ 2.9 M | |
| Net Interest Income | $ -2.86 M | |
| Income Before Tax | $ 2.0 M | |
| Tax Provision | $ -477.00 K | |
| Tax Rate | 21.0 % | |
| Net Income | $ 2.5 M | |
| Net Income From Continuing Operations | $ 2.5 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.56 | |
| EPS Actual | $ 2.11 | |
| EPS Difference | $ 0.55 | |
| EPS Surprise | 35.256 % | |
| Forward EPS | $ 1.51 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 430.4 M | |
| Intangible Assets | $ 281.8 M | |
| Net Tangible Assets | $ -103.29 M | |
| Total Current Assets | $ 97.4 M | |
| Cash and Short-Term Investments | $ 20.4 M | |
| Cash | $ 20.4 M | |
| Net Receivables | $ 40.1 M | |
| Inventory | $ 27.7 M | |
| Long-Term Investments | $ 17.9 M | |
| LIABILITIES | ||
| Accounts Payable | $ 5.1 M | |
| Short-Term Debt | $ 4.7 M | |
| Total Current Liabilities | $ 48.3 M | |
| Net Debt | $ 154.4 M | |
| Total Debt | $ 190.4 M | |
| Total Liabilities | $ 251.9 M | |
| EQUITY | ||
| Total Equity | $ 178.5 M | |
| Retained Earnings | $ -183.47 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 32.44 | |
| Shares Outstanding | 5.511 M | |
| Revenue Per-Share | $ 11.04 | |
| VALUATION | Market Capitalization | $ 407.0 M |
| Enterprise Value | $ 577.0 M | |
| Enterprise Multiple | 53.877 | |
| Enterprise Multiple QoQ | 31.3 % | |
| Enterprise Multiple YoY | -5.755 % | |
| Enterprise Multiple IPRWA | high: 161.723 median: 89.079 mean: 85.778 MLAB: 53.877 low: -110.323 |
|
| EV/R | 9.5 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.411 | |
| Asset To Liability | 1.709 | |
| Debt To Capital | 0.516 | |
| Debt To Assets | 0.443 | |
| Debt To Assets QoQ | -2.417 % | |
| Debt To Assets YoY | 99.387 % | |
| Debt To Assets IPRWA | high: 0.737 MLAB: 0.443 mean: 0.296 median: 0.291 low: 0.002 |
|
| Debt To Equity | 1.067 | |
| Debt To Equity QoQ | -6.849 % | |
| Debt To Equity YoY | 70.941 % | |
| Debt To Equity IPRWA | high: 3.379 MLAB: 1.067 mean: 0.621 median: 0.527 low: -1.888 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 2.281 | |
| Price To Book QoQ | -11.803 % | |
| Price To Book YoY | -44.287 % | |
| Price To Book IPRWA | high: 12.447 median: 6.369 mean: 5.765 MLAB: 2.281 low: -4.114 |
|
| Price To Earnings (P/E) | 35.063 | |
| Price To Earnings QoQ | -68.234 % | |
| Price To Earnings YoY | -76.997 % | |
| Price To Earnings IPRWA | high: 256.954 mean: 123.061 median: 115.822 MLAB: 35.063 low: -227.904 |
|
| PE/G Ratio | 2.866 | |
| Price To Sales (P/S) | 6.701 | |
| Price To Sales QoQ | -10.543 % | |
| Price To Sales YoY | -41.36 % | |
| Price To Sales IPRWA | high: 65.477 mean: 29.807 median: 23.866 MLAB: 6.701 low: 0.679 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 40.319 | |
| Forward PE/G | 3.296 | |
| Forward P/S | 6.565 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -23.548 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.14 | |
| Asset Turnover Ratio QoQ | 2.357 % | |
| Asset Turnover Ratio YoY | 8.46 % | |
| Asset Turnover Ratio IPRWA | high: 0.417 MLAB: 0.14 median: 0.127 mean: 0.122 low: 0.001 |
|
| Receivables Turnover | 1.535 | |
| Receivables Turnover Ratio QoQ | 4.425 % | |
| Receivables Turnover Ratio YoY | 0.566 % | |
| Receivables Turnover Ratio IPRWA | high: 2.895 mean: 1.752 median: 1.65 MLAB: 1.535 low: 0.627 |
|
| Inventory Turnover | 0.838 | |
| Inventory Turnover Ratio QoQ | -0.854 % | |
| Inventory Turnover Ratio YoY | 15.195 % | |
| Inventory Turnover Ratio IPRWA | high: 2.068 MLAB: 0.838 mean: 0.641 median: 0.515 low: 0.09 |
|
| Days Sales Outstanding (DSO) | 59.464 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 149.255 | |
| Cash Conversion Cycle Days QoQ | 5.241 % | |
| Cash Conversion Cycle Days YoY | -11.438 % | |
| Cash Conversion Cycle Days IPRWA | high: 409.199 median: 170.446 mean: 169.377 MLAB: 149.255 low: -109.842 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.236 | |
| CapEx To Revenue | -0.018 | |
| CapEx To Depreciation | -0.83 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 348.6 M | |
| Net Invested Capital | $ 353.3 M | |
| Invested Capital | $ 353.3 M | |
| Net Tangible Assets | $ -103.29 M | |
| Net Working Capital | $ 49.1 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.423 | |
| Current Ratio | 2.017 | |
| Current Ratio QoQ | 206.945 % | |
| Current Ratio YoY | 186.294 % | |
| Current Ratio IPRWA | high: 14.251 mean: 2.459 MLAB: 2.017 median: 1.703 low: 0.049 |
|
| Quick Ratio | 1.443 | |
| Quick Ratio QoQ | 207.525 % | |
| Quick Ratio YoY | 182.626 % | |
| Quick Ratio IPRWA | high: 13.711 mean: 1.807 MLAB: 1.443 median: 1.123 low: 0.317 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 17.781 | |
| Cost Of Debt | 1.165 % | |
| Interest Coverage Ratio | 1.698 | |
| Interest Coverage Ratio QoQ | -59.466 % | |
| Interest Coverage Ratio YoY | -24.95 % | |
| Interest Coverage Ratio IPRWA | high: 75.957 mean: 17.299 median: 11.793 MLAB: 1.698 low: -87.195 |
|
| Operating Cash Flow Ratio | 0.134 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 22.93 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 2.807 | |
| Dividend Payout Ratio | 0.356 | |
| Dividend Rate | $ 0.16 | |
| Dividend Yield | 0.002 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -1.237 % | |
| Revenue Growth | 2.005 % | |
| Revenue Growth QoQ | -148.058 % | |
| Revenue Growth YoY | -446.287 % | |
| Revenue Growth IPRWA | high: 27.485 % MLAB: 2.005 % mean: 1.956 % median: 1.748 % low: -26.345 % |
|
| Earnings Growth | 12.234 % | |
| Earnings Growth QoQ | -107.42 % | |
| Earnings Growth YoY | -356.909 % | |
| Earnings Growth IPRWA | high: 105.556 % MLAB: 12.234 % mean: 11.011 % median: 5.0 % low: -86.957 % |
|
| MARGINS | ||
| Gross Margin | 61.463 % | |
| Gross Margin QoQ | -0.927 % | |
| Gross Margin YoY | 0.256 % | |
| Gross Margin IPRWA | high: 94.036 % median: 63.198 % mean: 62.184 % MLAB: 61.463 % low: -17.483 % |
|
| EBIT Margin | 8.003 % | |
| EBIT Margin QoQ | -48.261 % | |
| EBIT Margin YoY | -32.235 % | |
| EBIT Margin IPRWA | high: 82.825 % median: 19.595 % mean: 19.126 % MLAB: 8.003 % low: -358.132 % |
|
| Return On Sales (ROS) | 7.778 % | |
| Return On Sales QoQ | 51.147 % | |
| Return On Sales YoY | -34.141 % | |
| Return On Sales IPRWA | high: 69.921 % mean: 19.846 % median: 19.065 % MLAB: 7.778 % low: -311.219 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 7.1 M | |
| Free Cash Flow Yield | 1.752 % | |
| Free Cash Flow Yield QoQ | 784.848 % | |
| Free Cash Flow Yield YoY | 232.448 % | |
| Free Cash Flow Yield IPRWA | high: 5.888 % MLAB: 1.752 % mean: 0.957 % median: 0.936 % low: -18.664 % |
|
| Free Cash Growth | 706.561 % | |
| Free Cash Growth QoQ | -864.536 % | |
| Free Cash Growth YoY | -1212.73 % | |
| Free Cash Growth IPRWA | MLAB: 706.561 % high: 185.61 % median: 24.443 % mean: 23.679 % low: -331.249 % |
|
| Free Cash To Net Income | 2.88 | |
| Cash Flow Margin | 10.682 % | |
| Cash Flow To Earnings | 2.62 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 0.572 % | |
| Return On Assets QoQ | -47.571 % | |
| Return On Assets YoY | -25.326 % | |
| Return On Assets IPRWA | high: 5.043 % mean: 1.683 % median: 1.578 % MLAB: 0.572 % low: -26.879 % |
|
| Return On Capital Employed (ROCE) | 1.272 % | |
| Return On Equity (ROE) | 0.014 | |
| Return On Equity QoQ | -49.545 % | |
| Return On Equity YoY | -34.668 % | |
| Return On Equity IPRWA | high: 0.104 mean: 0.027 median: 0.027 MLAB: 0.014 low: -0.624 |
|
| DuPont ROE | 1.411 % | |
| Return On Invested Capital (ROIC) | 1.087 % | |
| Return On Invested Capital QoQ | -38.274 % | |
| Return On Invested Capital YoY | -86.467 % | |
| Return On Invested Capital IPRWA | high: 11.651 % median: 2.417 % mean: 2.381 % MLAB: 1.087 % low: -14.919 % |
|