INVO Fertility Announces First Quarter 2025 Financial Results

Rhea-AI Summary

INVO Fertility (NASDAQ: IVF) reported its Q1 2025 financial results, marked by modest revenue growth and a strategic shift to focus exclusively on fertility operations. The company's revenue increased 4% to $1.64 million compared to Q1 2024. Consolidated clinic revenue from Atlanta and Madison locations grew 5% to $1.62 million. However, the company reported a significant net loss of $(17.4) million, largely due to a $14.6 million non-cash impairment charge related to NAYA Therapeutics assets. In April 2025, INVO announced plans to divest a majority stake in NAYA Therapeutics while maintaining a minority position for potential upside. The company is implementing growth initiatives at existing clinics and exploring expansion through acquisitions, aiming to achieve cash flow break-even and profitability.

Positive

• 4% year-over-year revenue growth to $1.64 million
• 5% increase in consolidated clinic revenue to $1.62 million
• Strategic refocus on core fertility business through NAYA Therapeutics divestiture
• Retained minority stake in NAYA TX offers potential future value upside
• Active exploration of expansion opportunities through acquisitions

Negative

• Significant net loss of $(17.4) million compared to $(1.6) million in Q1 2024
• $14.6 million non-cash impairment charge on NAYA Therapeutics assets
• Adjusted EBITDA declined to $(606,551) from $(427,467) year-over-year
• $1.3 million operating loss related to NAYA TX operations

Insights

Healthcare Financial Analyst

INVO's strategic refocus on fertility after NAYA divestiture shows modest growth but concerning losses; financial improvement path uncertain.

INVO Fertility's Q1 2025 results present a mixed financial picture as the company strategically pivots back to its core fertility business. While revenue showed modest growth of 4% year-over-year to $1.64 million, the headline net loss of $17.4 million is concerning - though importantly, this includes a substantial $14.6 million non-cash impairment charge related to NAYA Therapeutics assets.

Stripping away the NAYA-related losses reveals a clearer picture of the fertility operations, but challenges remain. The company's Adjusted EBITDA of $(606,551) still represents a deterioration from the $(427,467) loss in the prior year period, indicating the core fertility business is struggling to improve profitability despite revenue growth.

The 5% growth in consolidated clinic revenue is modestly positive but unimpressive in a high-growth fertility market. With only three established fertility centers, INVO needs substantially more scale to reach profitability. Management's focus on acquisition-driven expansion makes strategic sense given the current sub-scale operations, but raises questions about financing capacity amid continued losses.

The planned divestiture of NAYA Therapeutics represents a rational strategic decision to eliminate cash burn from non-core operations while maintaining some potential upside through the retained minority stake. However, the significant impairment charge suggests the NAYA acquisition destroyed substantial shareholder value.

Looking ahead, investors should closely monitor: 1) the timeline to complete the NAYA divestiture, 2) specific acquisition targets and their financing, and 3) operational improvements at existing clinics that could accelerate organic growth. The path to cash flow break-even remains challenging without significant operational improvements or successful accretive acquisitions.

Company now exclusively focused on the growing fertility market following the April 2025 announcement to divest a majority stake in Naya Therapeutics

SARASOTA, Fla., May 20, 2025 (GLOBE NEWSWIRE) -- INVO Fertility, Inc. (Nasdaq: IVF) (“INVO Fertility” or the “Company”), a healthcare services fertility company focused on expanding access to advanced treatment through the establishment, acquisition and operation of fertility clinics and related businesses and technologies, today announced first quarter 2025 financial results.

Q1 2025 Financial Highlights (all metrics compared to Q1 2024 unless otherwise noted)

• Revenue was $1,637,185, an increase of 4% compared to $1,576,286.
• Consolidated clinic revenue from the Company's INVO Center in Atlanta, Georgia, and fertility clinic in Madison, Wisconsin, increased 5% to $1,621,553, compared to $1,537,199.
• Revenue from all clinics, including both consolidated and equity method clinics, was $1,943,763, an increase of 4% compared to $1,869,513.
• Net loss was $(17.4) million compared to $(1.6) million. Included in net loss was a non-cash impairment charge of $14.6 million on the assets related to the acquisition of NAYA Therapeutics, Inc. (“NAYA TX”), a $1.3 million operating loss related to NAYA TX, and costs associated with the NAYA TX transaction of $0.2 million.  
• Adjusted EBITDA (see table included) was $(606,551) compared to $(427,467) in the prior year. Adjusted EBITDA does not include the impairment and operating losses from NAYA TX, or corresponding transaction related costs, since, as recently announced, the Company is in the process of divesting a majority stake in NAYA TX.
  

Management Commentary

“After announcing the divestiture of a majority stake in NAYA TX, we’ve sharpened our focus on our core mission as a fertility company, poised to seize opportunities in a dynamic market bolstered by supportive policy shifts of the current administration supporting developments that underscore the importance of fertility care,” commented Steve Shum, CEO of INVO Fertility. “This strategic move aligns with the ongoing decline in U.S. fertility rates and growing demand for accessible fertility solutions, reinforcing our commitment to broadening care for patients in need.”

“With our strategic focus on fertility now clear, we have implemented a series of initiatives at our existing clinics that we believe will help accelerate organic clinic growth in the future. Furthermore, building on our three established fertility centers, we’re actively exploring expansion, with a near-term focus on acquisitions. These initiatives, coupled with a highly efficient and scalable operating structure, should allow us to drive toward our key objective of reaching cash flow break-even and profitability,” Shum concluded.

Return to Focus on Fertility Operations

On April 14, 2025, the Company announced its decision to divest a majority stake in NAYA TX. The retained minority position is expected to provide value upside for the Company, assuming the successful clinical development of NAYA TX’s bifunctional antibodies. The revised corporate structure is intended to enable both businesses to focus on their respective opportunities and operations, with the existing management team and board of directors set to lead the public company (INVO Fertility, Inc.) moving forward. NAYA TX will return to being a privately held biotechnology company led by its management team and board. The final separation is subject to completing definitive transaction documents and key closing conditions, including receipt of necessary approvals.

Use of Non-GAAP Measure

Included in this press release is a reconciliation of Adjusted EBITDA, which does not include the loss from NAYA TX or the corresponding merger-related costs. Additional financial tables are included in the Company’s 10-Q, which can be found on the Company’s website at https://www.invofertility.com/sec-filings/ or at https://www.sec.gov/.

Adjusted EBITDA is a non-GAAP measure. This measure is not intended to be a substitute for those financial measures reported in accordance with GAAP. Adjusted EBITDA has been included because management believes that, when considered together with the GAAP figures, it provides meaningful information related to our operating performance and liquidity and can enhance an overall understanding of financial results and trends. Adjusted EBITDA may be calculated by us differently than other companies that disclose measures with the same or similar terms. See our attached financials for a reconciliation of this non-GAAP measure to the nearest GAAP measure.

About INVO Fertility

We are a healthcare services fertility company dedicated to expanding assisted reproductive technology (”ART”) care to patients in need. Our principal commercial strategy is focused on building, acquiring and operating fertility clinics, including “INVO Centers” dedicated primarily to offering the intravaginal culture (“IVC”) procedure enabled by our INVOcell^® medical device (“INVOcell”) and US-based, profitable in vitro fertilization (“IVF”) clinics. We have two operational INVO Centers in the United States and one IVF clinic. We also continue to engage in the sale and distribution of our INVOcell technology solution into third-party owned and operated fertility clinics. The INVOcell is a proprietary and revolutionary medical device, and the first to allow fertilization and early embryo development to take place in vivo within the woman's body. The IVC procedure provides patients with a more natural, intimate, and affordable experience in comparison to other ART treatments. We believe the IVC procedure can deliver comparable results at a fraction of the cost of traditional IVF and is a significantly more effective treatment than intrauterine insemination (“IUI”). For more information, please visit www.invofertility.com.

Safe Harbor Statement

This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company invokes the protections of the Private Securities Litigation Reform Act of 1995. All statements regarding our expected future financial position, results of operations, cash flows, financing plans, business strategies, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include words such as "anticipate," "if," "believe," "plan," "estimate," "expect," "intend," "may," "could," "should," "will," and other similar expressions are forward-looking statements. All forward-looking statements involve risks, uncertainties, and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. Factors that may cause actual results to differ materially from those in the forward-looking statements include those set forth in our filings at www.sec.gov. We are under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements, whether as a result of new information, future events, or otherwise.

For more information, please contact:

INVO Fertility, Inc.
Steve Shum, CEO
978-878-9505
sshum@invobio.com

Investor Contact
Lytham Partners, LLC
Robert Blum
602-889-9700
INVO@lythampartners.com

INVO FERTILITY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
	For the Three Months Ended March 31,
	2025				2024
Revenue:
Clinic revenue	$	1,621,553			$	1,537,199
Product revenue		15,632				39,087
Total revenue		1,637,185				1,576,286
Operating expenses:
Cost of revenue		1,044,929				850,234
Selling, general and administrative		2,554,474				1,440,586
Research and development		265,663				4,880
		14,645,069				-
Loss on disposal of fixed assets		-				561,663
Depreciation and amortization		234,462				226,960
Total operating expenses		18,744,597				3,084,323
Loss from operations		(17,107,412	)			(1,508,037	)
Other income (expense):
Gain (loss) from equity method investment		15,096				104
Gain on lease termination		-				94,551
Interest expense		(311,270	)			(181,295	)
Total other income (expense)		(296,174	)			(86,640	)
Loss before income taxes		(17,403,586	)			(1,594,677	)
Income taxes		-				1,836
Net loss attributable to INVO Fertility, Inc.	$	(17,403,586	)		$	(1,596,513	)
Net loss per common share:
Basic	$	(12.53	)		$	(7.55	)
Diluted	$	(12.53	)		$	(7.55	)
Weighted average number of common shares outstanding:
Basic		1,389,141				211,329
Diluted		1,389,141				211,329

Adjusted EBITDA
	Three Months Ended
	March 31
	2025				2024
Net loss attributable to INVO Fertility, Inc.	$	(17,403,586	)		$	(1,596,513	)
Interest expense		224,215				83,257
Amortization of debt discount		87,055				98,038
Tax expense		-				1,836
Stock-based compensation		-				142,542
Stock option expense		70,655				71,301
Non cash compensation for services		45,000				45,000
Loss on disposal of fixed assets		-				561,663
Gain on lease termination		-				(94,551	)
Depreciation and amortization		234,462				226,960
Adjusted EBITDA	$	(16,742,199	)		$	(460,467	)
NAYA Therapeutics impairment	$	14,645,069			$	-
NAYA Therapeutics loss		1,266,246				-
Merger-related costs		224,333				33,000
Adjusted EBITDA for fertility business	$	(606,551	)		$	(427,467	)

FAQ

What were INVO Fertility's (IVF) Q1 2025 revenue and net loss?

INVO Fertility reported Q1 2025 revenue of $1.64 million, up 4% year-over-year, and a net loss of $(17.4) million, primarily due to a $14.6 million non-cash impairment charge related to NAYA Therapeutics.

Why is INVO Fertility (IVF) divesting NAYA Therapeutics?

INVO Fertility is divesting NAYA Therapeutics to sharpen its focus on its core fertility business while maintaining a minority stake for potential future value from NAYA's bifunctional antibodies development.

How did INVO Fertility's (IVF) clinic revenue perform in Q1 2025?

INVO's consolidated clinic revenue from Atlanta and Madison locations increased 5% to $1.62 million, while total revenue from all clinics, including equity method clinics, grew 4% to $1.94 million.

What is INVO Fertility's (IVF) strategy for future growth?

INVO Fertility is implementing initiatives to accelerate organic clinic growth, exploring expansion through acquisitions, and focusing on achieving cash flow break-even and profitability.