Inotiv 2025 Q4 Earnings Narrowed Losses and 15.7% DSA Revenue Growth

Inotiv (NOTV) reported fiscal 2025 Q4 earnings on Dec 5, 2025, with revenue rising 5.9% to $138.14 million and losses narrowing significantly. The results beat revenue estimates by $0.64 million and GAAP EPS expectations by $0.21. The company provided no formal 2026 guidance due to market uncertainties but highlighted operational progress in DSA and RMS segments.

Revenue

Inotiv’s total revenue rose 5.9% year-over-year to $138.14 million in Q4 2025. The Discovery & Safety Assessment (DSA) segment led growth, with revenue increasing 15.7% to $51.6 million, driven by biotherapeutics, medical devices, and genetic toxicology. The Research Models & Services (RMS) segment contributed $86.5 million, up 0.8% from the prior year, as site consolidations and cost reductions offset NHP supply challenges.

Earnings/Net Income

The company narrowed its net loss to $8.55 million ($0.25 per share) in Q4 2025, a 65.7% improvement from a $0.73 loss per share in Q4 2024. While the EPS reduction reflects improved operational efficiency, the net loss remains a concern, underscoring the need for sustained margin expansion.

Post-Earnings Price Action Review

The strategy of buying NOTV when its revenue beats and holding for 30 days resulted in no return, with the strategy returning 0.00% and the benchmark returning 52.15%. The strategy had a maximum drawdown of 0.00% and a Sharpe ratio of 0.00%, indicating it did not experience any loss but also did not generate any excess returns.

CEO Commentary

CEO Robert Leasure highlighted DSA’s 15.7% YoY growth and a 61% increase in awards, driven by biotherapeutics and medical devices. He emphasized site consolidation reducing RMS facilities by 60% and IT systems streamlined from 249 to 162. Despite a cybersecurity incident in August, he expressed cautious optimism about DSA momentum and RMS efficiency gains.

Guidance

Inotiv did not provide formal 2026 guidance due to macroeconomic risks but expects DSA margin improvements via operating leverage and RMS cost savings from site consolidations ($6M–$7M annualized). Capital expenditures in Q4 2025 were $2.7M (1.9% of revenue), with fiscal 2025 CAPEX at $16.6M (3.2% of revenue).

Additional News

Inotiv engaged Perella Weinberg Partners to explore debt refinancing alternatives amid $402.1M in total debt as of Sept 30, 2025. The company also disclosed a cybersecurity incident in August 2025 that disrupted operations, though systems were restored. Additionally, Inotiv settled pending litigation with payments fully covered by insurance, signaling efforts to stabilize its financial position.

Article Polishing

The stock price of Inotiv has dropped 7.16% during the latest trading day, has tumbled 12.74% during the most recent full trading week, and has plummeted 29.15% month-to-date.