NEOGEN CORP Revenue Disclosure
2. Revenue Recognition
The Company derives revenue from two primary sources — product revenue and service revenue.
Product revenue consists primarily of shipments of:
Revenues for Neogen’s products are recognized and invoiced when the product is shipped to the customer.
Service revenue consists primarily of:
Revenues for Neogen’s genomics and commercial laboratory services are recognized and invoiced when the applicable laboratory service is performed and the results are conveyed to the customer.
Payment terms for products and services are generally 30 to 90 days.
Contract liabilities represent deposits made by customers before the satisfaction of performance obligation(s) and recognition of revenue. Upon completion of the performance obligation(s) that the Company has with the customer, the liability for the customer deposit is relieved and revenue is recognized. These customer deposits are recorded within deferred revenue on the consolidated balance sheets. Changes in the balances relate primarily to sales of the Company's genomics services and Neogen Analytics.
The following table summarizes contract liabilities by period:
|
|
Year Ended May 31 , |
|
|
|||||
|
|
2025 |
|
|
2024 |
|
|
||
Beginning balance |
|
$ |
4,632 |
|
|
$ |
4,616 |
|
|
Additions |
|
|
12,658 |
|
|
|
13,267 |
|
|
Recognized into revenue |
|
|
(11,732 |
) |
|
|
(13,251 |
) |
|
Ending balance |
|
$ |
5,558 |
|
|
$ |
4,632 |
|
|
The following table presents disaggregated revenue by major product and service categories for the years ended May 31, 2025, 2024 and 2023:
|
Year Ended May 31, |
|
|||||||
|
2025 |
|
2024 |
|
2023 |
|
|||
Food Safety: |
|
|
|
|
|
|
|||
Natural Toxins & Allergens |
$ |
77,058 |
|
$ |
82,240 |
|
$ |
82,567 |
|
Bacterial & General Sanitation |
|
164,777 |
|
|
171,217 |
|
|
134,934 |
|
Indicator Testing, Culture Media & Other |
|
325,915 |
|
|
334,636 |
|
|
267,178 |
|
Rodent Control, Insect Control & Disinfectants |
|
46,971 |
|
|
42,965 |
|
|
39,655 |
|
Genomics Services |
|
23,419 |
|
|
24,283 |
|
|
22,463 |
|
|
$ |
638,140 |
|
$ |
655,341 |
|
$ |
546,797 |
|
Animal Safety: |
|
|
|
|
|
|
|||
Life Sciences |
|
6,500 |
|
|
6,515 |
|
|
6,254 |
|
Veterinary Instruments & Disposables |
|
61,468 |
|
|
65,848 |
|
|
63,843 |
|
Animal Care & Other |
|
34,654 |
|
|
36,978 |
|
|
39,068 |
|
Rodent Control, Insect Control & Disinfectants |
|
88,063 |
|
|
88,732 |
|
|
87,423 |
|
Genomics Services |
|
65,836 |
|
|
70,808 |
|
|
79,062 |
|
|
$ |
256,521 |
|
$ |
268,881 |
|
$ |
275,650 |
|
Total Revenue |
$ |
894,661 |
|
$ |
924,222 |
|
$ |
822,447 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jul 30, 2025 | Showing above |
| 2024 | Jul 30, 2024 | |
| 2023 | Aug 15, 2023 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.