Did Inotiv beat or miss consensus estimates last quarter?

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- **Revenue Growth**: Q4 2025, DSA segment drives 5.9% YoY increase.
- **DSA Strength**: Awards up 61% YoY, with improving margins.
- **RMS Efficiency**: 13 facilities closed, reducing costs by $6M-$7M annually.
- **Cybersecurity Impact**: Q4 results reflect one-time recovery costs.

**【CEO Summary Section】**
- **Revenue Growth**: Q4 2025 total revenue of $138.1M, up 5.9% YoY, driven by DSA segment (+15.7% YoY to $51.6M). FY2025 revenue reached $513M, +4.5% YoY.
- **DSA Momentum**: Q4 DSA awards rose 61% YoY to $54.2M, with a book-to-bill ratio of 1.08:1. Backlog conversion rate hit 37.4%, highest in 3 years.
- **RMS Efficiency**: RMS revenue up 4.7% YoY, with 13 facilities closed since 2023, reducing costs by $6M-$7M annually.
- **Cybersecurity Impact**: Q4 results reflect costs from August incident, including third-party recovery efforts.

**【CFO Financial Commentary】
- **Profitability**: GAAP net loss of $8.6M, narrower than Q4 2024 loss of $18.9M. Adjusted EBITDA up 122% YoY.
- **Cash Flow**: Q4 cash from operations was $14.3M, boosting liquidity to $21.7M.

**【Q&A Highlights】**
- **Headwinds Quantified**: Cybersecurity costs included overtime and third-party expenses, though intangible impacts remain.
- **Q4 2025 Trends**: DSA awards up 37% YoY, but RMS faces seasonal slowdowns.
- **FDA Guidance**: Minimal exposure to FDA NAM impact, with NHP sales unaffected.


Inotiv, Inc. (NOTV) Q4 2025 Earnings Call Transcript

- **Revenue Surge**: Q3 2025 revenue up 23.5% YoY to $130.7M, driven by 34% RMS growth and 9% DSA expansion. Discovery services awards jumped 31.3% YoY.
- **Profitability Recovery**: EBITDA of $11.6M (8.9% margin), vs. $0.1M in Q3 2024. DSA margins improved 4.6% QoQ, though still lagging prior year.
- **Legal Closure**: SEC investigation resolved without enforcement; $10M legal accrual fully recoverable via insurance.
- **Operational Efficiency**: RMS margins at 12.9%, highest since Q1 2024. $6M-$7M annual savings target from $6.5M capital investments.
- **Customer Focus**: 60%-70% of customers use multiple sites; on-time delivery metrics improved, with emphasis on seamless multi-site service.

**【CEO Opening Remarks】**
- **Revenue Growth**: Q3 2025 revenue of $130.7M, up 23.5% YoY, driven by RMS (+34.1%) and DSA (+8.9%) segments. Net DSA awards increased 25% YoY, with Discovery services up 31.3%.
- **Margin Improvement**: EBITDA of $11.6M (8.9% of revenue), up from $0.1M in Q3 2024. DSA operating margins improved 4.6% QoQ, though still 0.8% below Q3 2024 levels.
- **Legal Resolution**: SEC investigation concluded without enforcement action; $10M legal accrual recorded, with full recovery expected via insurance.
- **Site Optimization**: RMS operating margins at 12.9%, highest since Q1 2024. $6M-$7M annual savings target from $6.5M capital investments, with 2 facility sales planned by Q4 2025.
- **Customer Satisfaction**: On-time delivery metrics improved, with 60%-70% of customers using multiple sites. Focus on seamless multi-site service experience.

**【CFO Financial Commentary】**
- **Revenue Breakdown**: DSA ($48.2M, +9% YoY) driven by biotherapeutics and medical devices; RMS ($82.5M, +34% YoY) due to higher NHP volumes and prices.
- **Profitability**: Consolidated net loss of $17.6M (-$0.51 EPS) vs. $26.1M loss (-$1 EPS) in Q3 2024. Adjusted EBITDA of $11.6M, highest since Q4 2023.
- **Cash Flow**: $6.2M cash on hand vs. $21.4M in Q3 2024. Capital expenditures of $4M (3.1% of revenue), with annual spend expected below 4%.
- **Debt Management**: Total debt $396.5M, including $114.8M convertible notes. Focus on strategic balance sheet review and third-party advisory engagement.

**【Q&A Highlights】**
- **Cancellations Trend**: Q3 cancellations 31% higher YoY, but trailing 12-month rate up only 2%. CEO expects elevated cancellations to persist, requiring higher gross bookings.
- **Site Optimization Next Steps**: Shift to fine-tuning existing facilities vs. new construction. Dallas expansion and process improvements to drive capacity.
- **NHP Imports**: Cambodia imports remain possible, but no plans to resume; U.S. NHP supply stable, pricing unchanged.
- **Customer Satisfaction**: On-time delivery metrics significantly improved, with focus on multi-site coordination and root-cause analysis.
- **Cash Flow Outlook**: Higher NHP inventory to support customer demand, with potential to convert excess inventory to cash if needed.

Inotiv, Inc. (NOTV) Q3 2025 Earnings Call Transcript

- **Revenue Growth**: Q2 2025 revenue up 4.4% YoY to $124.3M, driven by 9.1% RMS segment growth.
- **Margin Expansion**: RMS operating margins at 12.5%, with $6-7M annual savings from $6.5M site optimization project.
- **FDA Alignment**: NAMs adoption gradual; computational tox and ex vivo assays seeing incremental growth.
- **DSA Recovery**: Book-to-bill ratio 1.01:1, new orders up 27% YoY; expect margin improvement in H2 2025.
- **Tariff Impact**: 10% tariffs on NHP imports manageable; no material demand change yet.

**【CEO Opening Remarks】**
- Q2 2025 revenue: $124.3M (4.4% YoY growth), driven by RMS segment (+9.1%) due to higher NHP volumes.
- RMS operating margins improved to their strongest since Q1 2024; expect further margin expansion with $6.5M site optimization project (completed by Q1 2026, saving $6-7M annually).
- DSA segment revenue down 3% YoY due to lower general toxicology services, but book-to-bill ratio at 1.01:1 and new orders up 27% YoY.
- FDA's focus on NAMs (e.g., computational tox, ex vivo assays) aligns with Inotiv's existing capabilities; expect gradual adoption but no immediate replacement of animal models.
- Tariffs on NHP imports may impact costs, but no material demand change seen yet.

**【CFO Financial Highlights】**
- Adjusted EBITDA: $8M (6.4% of revenue) vs. $3.1M (2.6%) in Q2 2024.
- DSA non-GAAP operating income: $5M (4% of revenue) vs. $8.2M (6.9%) in Q2 2024.
- RMS non-GAAP operating income: $15.6M (12.5% of revenue) vs. $8.2M (6.9%) in Q2 2024.
- Net loss: $14.9M (-$0.44 EPS) vs. $48.1M (-$1.86 EPS) in Q2 2024.
- Cash: $19.3M; total debt: $399.5M.

**【Q&A Key Takeaways】**
- **FDA/NAMs**: Clients beginning to inquire about NAMs, but adoption slow; computational tox and proteomics services seeing incremental growth.
- **RMS Optimization**: Accelerated timeline for $6.5M project (completion by Q1 2026) to save $6-7M annually; focuses on reducing repair/maintenance costs and improving client service.
- **DSA Margins**: Expect sequential improvement in H2 2025 as higher-cost NHPs exit pipeline and discovery services leverage new capacity.
- **Tariffs**: 10% tariffs on NHP imports currently manageable; no clarity on higher tariffs' impact yet.
- **Investor Day**: Scheduled for May 29 to discuss strategic initiatives and client value proposition.

Inotiv, Inc. (NOTV) Q2 2025 Earnings Call Transcript

- **Revenue Volatility Mitigation**: $27.5M equity raise and NHP pre-sales to stabilize RMS (-15.1% YoY). 
- **Cost Efficiency**: $5M RMS consolidation to save $4-5M annually by 2026.
- **Margin Recovery**: NHP margins to improve Q2+ as high-cost inventory cleared.
- **DSA Growth**: Discovery awards +16% QoQ, offsetting 17% trailing 12M decline.
- **Liquidity Strength**: $38M cash vs $21.4M prior quarter, compliant with covenant amendments.

**【CEO Opening Remarks】**
- Q1 2025 revenue: $119.9M (-11.5% YoY), driven by 15.1% RMS decline due to lower NHP pricing.
- Key initiatives: 
  - $27.5M equity proceeds to improve liquidity.
  - NHP pre-sales for 2025 to reduce volatility.
  - $5M investment in RMS site consolidation, targeting $4-5M annual savings by Q4 2026.
- Outlook: Expect YoY revenue and EBITDA growth in Q2-Q4 2025, with improved NHP margins.

**【CFO Financial Summary】**
- GAAP net loss: $27.6M (-143% YoY), driven by lower NHP margins.
- Adjusted EBITDA: $2.6M (2.2% of rev) vs $9.6M (7.1% of rev) YoY.
- DSA segment: $42.8M (-4.3% YoY), 5.9% operating margin.
- RMS segment: $9.4M (7.9% of rev) vs $16.9M (12.5% of rev) YoY.
- Cash: $38M (vs $21.4M prior quarter), debt: $396M.

**【Q&A Key Takeaways】**
1. **NHP Inventory**: All high-cost inventory cleared; Q2+ pricing stable at 30% YoY decline.
2. **Market Dynamics**: Cambodia export uncertainty could tighten global supply; Inotiv diversified suppliers.
3. **Colony Management**: 20%+ growth expected, using 250/700 acres in Texas.
4. **DSA Trends**: Discovery service awards +16% QoQ, but trailing 12M down 17%.
5. **Liquidity**: Equity proceeds and reduced restructuring costs improve cash flow compliance with covenants.


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