Inotiv, Inc. reported a revenue increase to $513 million for the fiscal year ended September 30, 2025, compared to $490.7 million in the previous fiscal year. This growth was driven by a $14.5 million increase in Research Models and Services (RMS) revenue, primarily from higher non-human primate (NHP) product and service revenue, and a $7.8 million increase in Discovery and Safety Assessment (DSA) revenue, mainly due to increased safety assessment services. Despite the revenue growth, the company experienced an operating loss of $30.9 million, an improvement from the $86.4 million operating loss in the prior fiscal year. The net loss attributable to common shareholders decreased to $68.6 million from $108.4 million in the previous year, primarily due to the improved operating results.
The company's financial position remains a concern, with negative operating cash flows of $10.5 million for fiscal year 2025, compared to $6.8 million in the prior year. As of September 30, 2025, Inotiv had $21.7 million in cash and cash equivalents and $3 million outstanding on its $15 million revolving credit facility. The company's significant debt, including $268.7 million in senior term loans maturing in November 2026, raises concerns about its ability to meet financial obligations. Management's fiscal 2026 annual operating plan forecasts noncompliance with its financial covenants under the Credit Agreement.
Operationally, Inotiv has focused on strengthening its liquidity, reducing NHP revenue volatility, and improving client relationships. A December 2024 equity offering generated $27.5 million in net proceeds, aiding in liquidity and strategic decision-making. The company has expanded its NHP client base and pre-sold NHP inventory to stabilize revenue streams. Phase Two of the site optimization plan, expected to be completed by March 2026, aims to reduce production capacity and create operating efficiencies, with anticipated net annual savings of $6 to $7 million. The company also completed the sale of two U.S. properties in connection with Phase Two, using the net proceeds to repay principal on its term loans.
Inotiv also faced challenges, including a cybersecurity incident in August 2025, which is still under evaluation for its operational and financial impacts. The company is also involved in legal proceedings, including securities class action and derivative lawsuits, for which it has reached proposed settlements, pending court approval. Furthermore, management concluded that its disclosure controls and procedures and internal control over financial reporting were not effective as of September 30, 2025, due to material weaknesses in internal controls. The company is working to remediate these weaknesses, but there is no assurance that these efforts will be successful.
About Inotiv, Inc.
Inotiv is a contract research organization providing nonclinical drug discovery, safety assessment, and analytical services to pharmaceutical, biotech, and medical device industries. It offers research models, laboratory animals, diets, and specialized testing services to support early-stage research, preclinical development, and regulatory submissions. With a focus on quality, animal welfare, and regulatory compliance, Inotiv enables clients to accelerate drug development and reduce costs.
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