Inotiv 2025 Q4 Earnings 54.7% Net Loss Reduction and 65.7% Per-Share Improvement Beats Expectations

Inotiv (NOTV) reported fiscal 2025 Q4 earnings on Dec 5, 2025, with revenue rising 5.9% to $138.14M and losses narrowing by 54.7% to -$8.55M. The company exceeded revenue estimates and narrowed its per-share loss by 65.7%, though it did not provide formal 2026 guidance due to market uncertainties.

Revenue

Inotiv’s total revenue increased by 5.9% to $138.14 million in 2025 Q4, driven by a 15.7% rise in Discovery & Safety Assessment (DSA) revenue to $51.6 million and a modest 0.8% growth in Research Models & Services (RMS) revenue to $86.5 million. The DSA segment’s strong performance was fueled by biotherapeutics, medical devices, and genetic toxicology, while RMS growth reflected stable non-human primate (NHP) demand and cost efficiencies from site consolidations.

Earnings/Net Income

The company narrowed its net loss to $-8.55 million in 2025 Q4, a 54.7% improvement from $-18.89 million in 2024 Q4. Earnings per share also improved by 65.7%, from a loss of $-0.73 to $-0.25. While the reduction in losses is a positive sign, the company remains unprofitable.

Post-Earnings Price Action Review

The stock price of Inotiv dropped 7.16% during the latest trading day, tumbled 12.74% weekly, and plummeted 29.15% month-to-date. A strategy of buying NOTV when revenue beats and holding for 30 days yielded 0.00% returns, underperforming the 52.15% benchmark. The maximum drawdown of 0.00% indicated no losses, but the strategy also generated no gains.

CEO Commentary

CEO Robert Leasure highlighted DSA’s 15.7% revenue growth and 61% award increase, driven by biotherapeutics and medical devices. He noted a 37.4% DSA backlog conversion rate (a 3-year high) and progress on margin improvements. Challenges included a mid-2025 cybersecurity incident, which disrupted operations but was mitigated without halting momentum. Strategic priorities include RMS site consolidations (13 facilities closed, 60% reduction), technology upgrades, and debt refinancing via Perella Weinberg.

Guidance

Inotiv did not provide formal fiscal 2026 guidance, citing market uncertainties, including potential tariffs. The company remains focused on debt refinancing, RMS cost reductions ($6–7M annual savings from site consolidation), and DSA margin expansion. CFO Beth Taylor emphasized cash flow generation ($14.3M Q4 operating cash flow) and a $21.7M cash balance as of Sept 30, 2025.

Additional News

Recent non-earnings developments include a cybersecurity incident in August 2025, which disrupted operations but was resolved without halting business. The company has also accelerated RMS site consolidations, closing 13 facilities to achieve 60% cost reductions. Additionally, Inotiv engaged Perella Weinberg Partners to explore debt refinancing alternatives, signaling a strategic focus on balance sheet improvements ahead of maturing debt in 2026–2027.

Additional News (Continued)

The company’s cybersecurity incident, disclosed via an 8-K filing on August 18, 2025, required system restoration efforts during Q4. Management reported no material long-term impact but acknowledged intangible costs and operational delays. Meanwhile, RMS site consolidations remain on track, with two of three planned facilities closed by early October. These moves aim to reduce operating expenses and enhance operational efficiency.

Additional News (Final)

Inotiv’s debt refinancing efforts, led by Perella Weinberg Partners, are a key focus as the company navigates maturing debt obligations in 2026–2027. CFO Beth Taylor highlighted $14.3M in Q4 operating cash flow and a $21.7M cash balance as of Sept 30, 2025, underscoring financial stability amid strategic restructuring. The company also settled pending litigation, with payments fully covered by insurance, further easing balance sheet pressures.