Inotiv Reports $124.3 Million Revenue with Improved Net Loss for Q1 2025

Inotiv, Inc. reported a total revenue of $124.3 million for the three months ended March 31, 2025, marking a 4.4% increase from $119.0 million in the same period last year. This growth was primarily driven by a 9.1% rise in revenue from the Research Models and Services (RMS) segment, which generated $79.0 million, while the Discovery and Safety Assessment (DSA) segment saw a slight decline of 2.8%, bringing in $45.3 million. The company’s consolidated net loss for the quarter was $14.9 million, a significant improvement compared to a net loss of $48.1 million in the prior year, reflecting a reduction in losses as a percentage of total revenue from 40.4% to 12.0%.

For the six months ending March 31, 2025, Inotiv's total revenue decreased by 4.1% to $244.2 million, down from $254.5 million in the same period of 2024. The decline was attributed to a decrease in both RMS and DSA revenues, which fell by 4.4% and 3.5%, respectively. The consolidated net loss for the first half of the fiscal year was $42.5 million, compared to a loss of $63.9 million in the previous year, indicating a notable improvement in financial performance.

Strategically, Inotiv has been focusing on optimizing its operations and enhancing liquidity. The company completed a public offering of 6 million common shares in December 2024, raising approximately $27.5 million in net proceeds, which are intended for working capital and capital expenditures. Additionally, Inotiv is advancing its site optimization plans, with two properties currently under contract for sale, expected to generate proceeds that will be used to repay term loans. The company anticipates that these efforts will yield annual cost savings of approximately $6.0 to $7.0 million.

Operationally, Inotiv's DSA backlog stood at $130.8 million as of March 31, 2025, slightly up from $129.9 million at the end of September 2024. The company is also working to expand its non-human primate (NHP) client base and has been pre-selling NHP inventory to stabilize revenue streams. As part of its restructuring efforts, Inotiv has completed the first phase of its site optimization plan and is now executing the second phase, which is expected to be completed by March 2026.

Looking ahead, Inotiv's management has expressed cautious optimism regarding future performance, contingent on improving operational results and compliance with financial covenants under its credit agreement. The company is actively engaging with lenders to navigate its financial landscape and is exploring additional financing options to support its operational needs. However, substantial doubt about the company's ability to continue as a going concern remains, as it must demonstrate improved financial performance in the coming months to avoid potential defaults on its debt obligations.