Neogen Corporation (NEOG) reported QQ1 2025 revenues of $216.964 million, a YoY decline of 5.25% and QoQ decline of 8.37%, reflecting the seasonally weak first quarter and ongoing transition costs post-3M Food Safety integration. Core revenue fell 1% YoY with a notable FX headwind of 390 basis points, while gross margin compressed to 48.4% (down 260 bps YoY), contributing to a first-quarter operating margin near break-even (operating income of $2.6 million, 1.0% of revenue) and a negative net income of $12.6 million (-5.81% of revenue). Adjusted EBITDA stood at $44.0 million, yielding a 20.1% margin, down ~280 bps YoY as lower volumes and higher shipping/distribution costs weighed on profitability. Management maintained 2025 guidance, signaling that Q1 will be the trough for margins and that improvements will emerge in the second half through higher volumes, gross margin expansion, and ongoing cost discipline, including distribution optimization. The company exited ERP-related shipping constraints and completed the relocation of the former 3M sample collection line, with normalization of production expected by Q3. Management remains focused on regaining market share, expanding Petrifilm as a platform (including the announced high-volume reader feeder), and accelerating international growth, particularly in Latin America, Europe, and Asia-Pacific. Net debt remained elevated at $771.3 million (gross debt $900.0 million) with cash of $120.0 million, and the company still targets roughly 3x net leverage by year-end. Overall, NEOG is balancing a clearer path to revenue growth with ongoing margin normalization and capital-allocation discipline as it integrates a transformative acquisition and expands in international markets.