Inotiv 2025 Q4 Earnings 65.7% EPS Improvement Amid Revenue Growth

Inotiv (NOTV) reported fiscal 2025 Q4 earnings on Dec 5, 2025, exceeding revenue expectations and narrowing losses significantly. The company’s 5.9% revenue growth to $138.14 million and a 65.7% improvement in net loss per share to -$0.25 signaled operational progress. However, the stock declined sharply post-earnings, reflecting ongoing investor concerns about debt refinancing and cybersecurity risks.

Revenue

Inotiv’s total revenue rose 5.9% to $138.14 million in Q4 2025, driven by robust performance in its Discovery & Safety Assessment (DSA) segment, which grew 15.7% year-over-year to $51.6 million. The Research Models & Services (RMS) segment contributed $86.5 million, up 0.8% from the prior year. This growth underscores the company’s ability to capitalize on demand for biotherapeutics and genetic toxicology services while managing RMS cost efficiencies through site consolidations.

Earnings/Net Income

The company narrowed its net loss to $8.55 million, or -$0.25 per share, a 65.7% improvement from the $18.89 million ($0.73/share) loss in 2024 Q4. This progress reflects cost-cutting measures and operational leverage, though the company remains unprofitable. The EPS improvement highlights effective execution of its May 2025 investor day strategy.

Post-Earnings Price Action Review

The stock price of Inotiv dropped 7.16% on the day of the earnings report and fell 29.15% month-to-date, exacerbating investor skepticism. A backtested strategy of buying NOTV after a revenue beat and holding for 30 days yielded no returns, underperforming the 52.15% benchmark. The strategy’s 0.00% return, with no drawdown, suggests limited upside potential amid heightened risk factors, including cybersecurity vulnerabilities and debt refinancing challenges.

CEO Commentary

Robert Leasure, Inotiv’s CEO, emphasized progress in DSA growth, RMS cost savings, and balance sheet improvements. He acknowledged macroeconomic uncertainties and a cybersecurity incident in August 2025 but highlighted 61% year-over-year DSA award growth and 60% RMS facility consolidation since 2022. Strategic priorities include streamlining IT systems and refining debt structures to strengthen financial resilience.

Guidance

Inotiv did not provide formal 2026 guidance due to market and tariff uncertainties but expects DSA margin improvements through operating leverage. Capital expenditures in Q4 2025 were $2.7 million (1.9% of revenue), with plans to explore debt refinancing to address $402.1 million in total debt.

Additional News

Recent developments include a cybersecurity incident in August 2025, which disrupted operations but was mitigated by Q4. The company also announced engagement with Perella Weinberg Partners to evaluate debt refinancing options, signaling a focus on balance sheet optimization. Additionally, Inotiv disclosed $54.2 million in DSA net awards for Q4, a 61% increase, and $138.2 million in DSA backlog, reflecting strong demand for its services.