Shares of Neogen Corp (NASDAQ:NEOG) plummeted 5.06% in Friday's trading session following the release of disappointing third-quarter results for fiscal year 2025. The food and animal safety products company reported widening losses and a revenue decline, falling short of analyst expectations and intensifying investor concerns about the company's financial health.

Neogen's Q3 2025 results painted a grim picture, with revenue dropping 3.4% year-over-year to $221.0 million, missing analyst estimates by 1.5%. The company's net loss expanded dramatically to $11.0 million, a 442% increase from the same quarter last year. Earnings per share deteriorated to a loss of $0.05, compared to a $0.009 loss in Q3 2024, and missed analyst forecasts by 200%. This poor performance has raised questions about Neogen's ability to navigate current market challenges and return to profitability.

The latest earnings miss adds to a prolonged period of struggle for Neogen's stock. Over the past five years, NEOG shares have lost a staggering 83% of their value, with a 57% decline in the last year alone. The company's transition to a loss-making position has made it difficult for investors to gauge its true value, leading to increased selling pressure. With the stock down 31% in the past week, including today's plunge, investors appear to be losing confidence in Neogen's turnaround prospects, despite recent insider buying activity that typically signals management's belief in the company's future.