Inotiv Reports $120.9 Million Revenue with Increased Service Revenue and Consolidated Net Loss

Inotiv, Inc. reported a total revenue of $120.9 million for the three months ended December 31, 2025, reflecting a slight increase of 0.8% from $119.9 million in the same period of the previous year. The growth was primarily driven by a 12% increase in service revenue from the Discovery and Safety Assessment (DSA) segment, which rose to $46.4 million, while product revenue from the Research Models and Services (RMS) segment decreased by 5.4% to $72.9 million. Despite the revenue increase, the company recorded a consolidated net loss of $28.4 million, compared to a loss of $27.6 million in the prior year, indicating a slight deterioration in profitability.

The company's financial position showed significant changes compared to the previous fiscal period. Total assets decreased to $734.3 million from $771.1 million, primarily due to reductions in cash and cash equivalents, trade receivables, and prepaid expenses. Current liabilities also decreased slightly, leading to a total liabilities figure of $625.3 million. The company's equity fell to $109 million, down from $136 million, largely due to the accumulated deficit increasing to $659.2 million.

In terms of strategic developments, Inotiv has been actively optimizing its operations, including exiting two leased facilities as part of its site optimization plan, which is expected to yield annual savings of $6 million to $7 million. The company also reported a backlog of $145.4 million in its DSA segment, up from $138.2 million at the end of the previous quarter, indicating a positive outlook for future revenue generation. However, the RMS segment faced challenges with lower non-human primate (NHP) volumes sold, which impacted revenue.

Operationally, Inotiv's employee headcount increased to 1,200 as of December 31, 2025, reflecting ongoing efforts to enhance service delivery and operational capacity. The company continues to face challenges related to tariffs on imported NHPs, which have affected cash flows and operational costs. Additionally, Inotiv is navigating compliance with financial covenants under its credit agreement, having received waivers for certain covenants for the quarter ended December 31, 2025. The management's outlook for fiscal 2026 indicates a focus on improving operating results and maintaining liquidity, although there remains substantial doubt about the company's ability to continue as a going concern if operational performance does not improve.