-- First quarter fiscal 2026 revenue increased 0.8%
compared to prior year quarter to $120.9 million
-- First quarter fiscal 2026 operating loss increased
5.3% compared to prior year quarter to $16.3 million
-- Conference call scheduled for today at 8:30 am
ET
WEST LAFAYETTE, Ind., Feb. 09, 2026 (GLOBE NEWSWIRE) -- Inotiv, Inc. (Nasdaq: NOTV) (the "Company"), a leading contract research organization specializing in nonclinical and analytical drug discovery and development services and research models and related products and services, today announced financial results for the three months ("Q1 FY 2026") ended December 31, 2025.
Revenue by Segment (in millions of USD)
Three Months Ended %
December 31, change(1)
-----------------------------
2025 2024
-------------- -------------
(unaudited) (unaudited)
DSA (Discovery & Safety
Assessment) $ 48.0 $ 42.8 12.0 %
RMS (Research Models &
Services) $ 72.9 $ 77.1 (5.4)%
----- ------- --------- -------
Total(1) $ 120.9 $ 119.9 0.8 %
===== ======= ========= =======
(1) Table may not foot and percentages may not recalculate
due to rounding.
Management Commentary
Robert Leasure Jr., President and Chief Executive Officer, commented, "During the first quarter of fiscal 2026, we continued to execute on our operational and financial priorities, with a sustained focus on client service and margin discipline. Revenue increased slightly compared to the first quarter of fiscal 2025, and demand trends, particularly within our DSA segment, remained encouraging and reflect the value clients place on our capabilities and partnership approach."
"Client satisfaction and reliable, on-time delivery of high-quality products and services remain central to our strategy. In the first quarter, DSA revenue increased 12.0% compared with the prior-year period, and DSA net awards grew approximately 27% year-over-year. These results underscore the progress we are making toward building durable client relationships and a growing base of recurring business. We continue to advance our strategic initiatives and appreciate the continued support and trust of our employees, shareholders and partners."
Highlights
Q1 FY 2026 Highlights
-- Revenue was $120.9 million in Q1 FY 2026, an increase of $1.0 million, or
0.8%, compared to $119.9 million during the three months ended
December 31, 2024 ("Q1 FY 2025"), driven by a $5.1 million, or 12.0%,
increase in Discovery and Safety Assessment ("DSA") revenue, partially
offset by a decrease of $4.1 million, or 5.4%, in Research Models and
Services ("RMS") revenue.
-- Consolidated net loss for Q1 FY 2026 was $28.4 million, or 23.5% of total
revenue, compared to $27.6 million, or 23.0% of total revenue, in Q1 FY
2025.
-- Adjusted EBITDA1 in Q1 FY 2026 was $1.8 million, or 1.5% of total revenue,
compared to $2.6 million, or 2.2% of total revenue, in Q1 FY 2025.
-- Book-to-bill ratio for Q1 FY 2026 was 1.16x for the DSA services
business.
-- DSA backlog was $145.4 million at December 31, 2025, compared to $138.2
million at September 30, 2025, and $130.4 million at December 31, 2024.
(1 This is a non-GAAP financial measure. Refer to "Note on Non-GAAP Financial Measures" in this release for further information.)
Recent Developments
-- In connection with our U.S. site optimization plan, we exited two leased
facilities during Q1 FY 2026.
First Quarter Fiscal 2026 Financial Results (Three Months Ended December 31, 2025)
Revenue increased 0.8% to $120.9 million in Q1 FY 2026 as compared to $119.9 million in Q1 FY 2025. The higher total revenue in Q1 FY 2026 was driven by a $5.1 million increase in DSA revenue, partially offset by a $4.1 million decrease in RMS revenue. DSA revenue increased primarily due to increased discovery and translational sciences ("DTS") revenue and increased safety assessment ("SA") revenue. The increase in DTS revenue included increased discovery pharmacology service revenue and the increased SA revenue included increased surgical services revenue and new business at our Rockville facility. The decrease in RMS revenue was due primarily to lower non-human primate ("NHP") volumes sold, partially offset by higher average selling prices for NHPs compared to the prior year quarter and higher NHP-related services revenue.
Operating loss was $16.3 million in Q1 FY 2026 as compared to $15.5 million in Q1 FY 2025. The increase in operating loss was primarily driven by an increase in RMS operating loss of $2.4 million in Q1 FY 2026, partially offset by an increase in DSA operating income of $1.2 million and a decrease in unallocated corporate costs of $0.3 million. The increase in RMS operating loss was primarily driven by the decrease in revenue discussed above partially offset by decreased cost of services provided and cost of products sold (collectively, "cost of revenue"). The decrease in RMS cost of revenue primarily related to decreased costs associated with the decreased NHP product revenue discussed above. The increase in DSA operating income was primarily driven by the increase in DSA revenue discussed above, partially offset by increased cost of revenue. The increase in DSA cost of revenue primarily related to increased compensation and benefits costs and increased supplies expense.
Cash and cash equivalents was $12.7 million at December 31, 2025, compared to $21.7 million at September 30, 2025. Cash used in operating activities was $5.4 million for Q1 FY 2026 compared to $4.5 million of cash used in operating activities for Q1 FY 2025. For Q1 FY 2026, capital expenditures totaled $5.2 million compared to $4.5 million for Q1 FY 2025. Total debt, net of debt issuance costs, as of December 31, 2025, was $405.8 million compared to $402.1 million on September 30, 2025. As of December 31, 2025, there were $6.0 million of borrowings on the Company's $15.0 million revolving credit facility.
Webcast and Conference Call
Management will host a conference call on Monday, February 9, 2026, at 8:30 am ET to discuss its first fiscal quarter of 2026 results.
Interested parties may participate in the call by dialing:
-- (800) 445-7795 (Domestic) -- (785) 424-1699 (International) -- "INOTIV" (Conference ID)
The live conference call webcast will be accessible in the Investors section of the Company's web site and directly via the following link:
https://viavid.webcasts.com/starthere.jsp?ei=1750994&tp_key=1585804d3b
For those who cannot listen to the live broadcast, an online replay will be available in the Investors section of Inotiv's web site at: https://ir.inotiv.com/events-and-presentations/default.aspx.
Note on Non-GAAP Financial Measures
This press release contains financial measures that are not calculated in accordance with generally accepted accounting principles in the United States ("GAAP"), including Adjusted EBITDA and Adjusted EBITDA as a percentage of total revenue for the three months ended December 31, 2025 and 2024, and selected business segment information for those periods. Adjusted EBITDA as reported herein refers to a financial measure that excludes from consolidated net loss statements of operations line items interest expense, net and income tax benefit, as well as non-cash charges for depreciation and amortization, stock compensation expense, startup costs, restructuring costs, unrealized foreign exchange (gain) loss, loss on disposition of assets and other unusual, third party costs. The adjusted business segment information excludes from operating loss and unallocated corporate operating expenses for these same expenses. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in this press release.
The Company believes that these non-GAAP measures provide useful information to investors. Among other things, they may help investors evaluate the Company's ongoing operations. They can assist in making meaningful period-over-period comparisons and in identifying operating trends that would otherwise be masked or distorted by the items subject to the adjustments. Management uses these non-GAAP measures internally to evaluate the performance of the business, including to allocate resources. Investors should consider these non-GAAP measures as supplemental and in addition to, not as a substitute for or superior to, measures of financial performance prepared in accordance with GAAP.
Management has chosen to provide this supplemental information to investors, analysts, and other interested parties to enable them to perform additional analyses of our results and to illustrate our results giving effect to the non-GAAP adjustments. Management strongly encourages investors to review the Company's condensed consolidated financial statements and publicly filed reports in their entirety and cautions investors that the non-GAAP measures used by the Company may differ from similar measures used by other companies, even when similar terms are used to identify such measures.
About the Company
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