Inotiv, Inc. reported a consolidated net loss of $27.6 million for the three months ended December 31, 2024, compared to a net loss of $15.8 million for the same period in 2023. This loss represented 23.0% of total revenue, which decreased by 11.5% to $119.9 million from $135.5 million year-over-year. The decline in revenue was primarily attributed to a 15.1% decrease in the Research Models and Services (RMS) segment, which generated $77.1 million, and a 4.2% decrease in the Discovery and Safety Assessment (DSA) segment, which brought in $42.8 million.
The company experienced significant operational changes during the quarter, including a public offering of 6 million common shares at $4.25 per share, which generated net proceeds of approximately $27.5 million. This capital infusion is intended to bolster working capital and support ongoing operational needs. Additionally, Inotiv has been focusing on expanding its non-human primate (NHP) client base and pre-selling NHP inventory to stabilize revenue streams, particularly in light of previous volatility in this area.
In terms of operational metrics, the DSA segment's backlog was reported at $130.4 million as of December 31, 2024, a slight increase from $129.9 million at the end of the previous fiscal year but down from $152.3 million a year earlier. The company also noted a book-to-bill ratio of 1.01x for DSA services, indicating a stable demand for its services despite the overall revenue decline. The RMS segment's operating loss widened to $1.2 million from an operating income of $5.1 million in the prior year, primarily due to decreased revenue from NHP-related products and services.
Inotiv's financial position remains precarious, with cash and cash equivalents totaling $38.0 million as of December 31, 2024, alongside access to a $15.0 million revolving credit facility that had no outstanding balance. However, the company reported negative operating cash flows and is at risk of non-compliance with financial covenants under its credit agreement if operational results do not improve in the coming months. Management has indicated plans to optimize capital allocation and improve operating results through increased revenue from NHP-related services and contract awards in the DSA segment. The company continues to evaluate financing alternatives to meet its cash requirements over the next year.
About Inotiv, Inc.
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