Inotiv 2025 Q3 Earnings Narrowed Losses and Strong Revenue Growth

Inotiv (NOTV) reported its fiscal 2025 Q3 earnings on August 7, 2025. The company delivered revenue growth that beat expectations and continued to reduce its net loss, reflecting progress toward its financial goals. While the company did not raise guidance, it highlighted strong performance in revenue and margin improvement, as well as key operational investments.

Revenue
Inotiv’s total revenue for Q3 2025 grew by 23.5% year-over-year to $130.68 million, surpassing the $105.79 million recorded in Q3 2024. Service revenue accounted for $59.58 million, while product revenue contributed $71.10 million, together forming the total revenue figure. The performance across both segments underscores the company’s broad-based strength and effective operational execution.

Earnings/Net Income
Inotiv improved its financial performance, narrowing its net loss to $17.58 million in Q3 2025 compared to $26.09 million in the same period last year, a reduction of 32.6%. On a per-share basis, the loss was $0.51, a significant 49.0% improvement from the $1.00 per share loss in Q3 2024. These reductions indicate stronger cost management and margin expansion.

Price Action
The stock price of Inotiv has experienced a downward trend, with a 10.91% drop during the latest trading day, a 2.49% decline over the past week, and a 7.55% loss month-to-date. The recent performance reflects investor skepticism despite improved financial metrics.

Post Earnings Price Action Review
A strategy of purchasing Inotiv shares following a revenue increase quarter-over-quarter on the report date and holding for 30 days yielded no return over the past three years. The approach posted a compound annual growth rate (CAGR) of 0.00%, an excess return of -52.06%, and underperformed the benchmark significantly. The strategy was risk-averse, with a maximum drawdown and volatility of 0.00%, but failed to generate positive returns.

CEO Commentary
Robert Leasure Jr., President and Chief Executive Officer, emphasized the company’s continued progress toward its financial goals, including the 23.5% year-over-year revenue growth in Q3. He attributed the 25% year-over-year increase in DSA net awards to integration and optimization efforts across key business lines such as Discovery, Medical Device, Biotherapeutics, and Genetic Toxicology. Leasure also highlighted the company’s book-to-bill ratio of 1.07x for Q3 and 1.03x for the year-to-date in FY 2025, signaling strong demand and client retention.

Guidance
While Inotiv did not provide specific financial guidance for the remainder of FY 2025, the company reported Q3 revenue of $130.7 million and an adjusted EBITDA of $11.6 million, representing 8.9% of total revenue. This reflects improved margins and a stronger operating model compared to the prior year.

Additional News
Nigeria’s Punch Newspapers reported on several significant events during the week of August 8, 2025. A faction of the African Democratic Congress (ADC) denounced David Mark as party chair, while the Nigerian Air Force (NAF) successfully thwarted a terrorist attack in Borno state. Meanwhile, kidnappers of a university worker from Ondo State demanded a N7 million ransom, underscoring continued security challenges. In sports news, Lens secured World Cup winner Thauvin from Udinese, and Arsenal’s Ethan Nwaneri signed a long-term contract. The week also saw political tensions escalate between prominent figures and growing concerns over governance and public safety.