CORRECTING and REPLACING - Inotiv Reports Third Quarter Financial Results for Fiscal 2025 and Provides Business Update
Inotiv (NASDAQ:NOTV) reported strong Q3 FY2025 financial results with revenue increasing 23.5% to $130.7 million. The growth was driven by a 34.1% increase in Research Models & Services (RMS) revenue to $82.5 million and an 8.9% increase in Discovery & Safety Assessment (DSA) revenue to $48.2 million.
The company reduced its net loss to $17.6 million (13.5% of revenue) compared to $26.1 million in Q3 FY2024. Adjusted EBITDA improved significantly to $11.6 million (8.9% of revenue) from $0.1 million year-over-year. DSA backlog stood at $134.3 million with a book-to-bill ratio of 1.07x.
Notable developments include the SEC concluding its investigation related to non-human primate importations without recommending enforcement action, and a $10 million accrual for ongoing securities lawsuits, expected to be fully recovered through insurance.
Inotiv (NASDAQ:NOTV) ha riportato solidi risultati finanziari per il terzo trimestre dell'anno fiscale 2025, con un aumento del fatturato del 23,5% a 130,7 milioni di dollari. La crescita è stata trainata da un incremento del 34,1% nelle entrate di Research Models & Services (RMS), che hanno raggiunto 82,5 milioni di dollari, e da un aumento dell'8,9% nelle entrate di Discovery & Safety Assessment (DSA), pari a 48,2 milioni di dollari.
L’azienda ha ridotto la perdita netta a 17,6 milioni di dollari (13,5% del fatturato) rispetto ai 26,1 milioni del terzo trimestre dell'anno fiscale 2024. L’EBITDA rettificato è migliorato significativamente, raggiungendo 11,6 milioni di dollari (8,9% del fatturato) rispetto a 0,1 milioni dell’anno precedente. Il backlog di DSA si attestava a 134,3 milioni di dollari con un rapporto book-to-bill di 1,07x.
Tra gli sviluppi importanti si segnala la conclusione dell’indagine della SEC relativa all’importazione di primati non umani, senza raccomandare azioni di enforcement, e un accantonamento di 10 milioni di dollari per cause legali in corso su titoli, che si prevede sarà totalmente recuperato tramite assicurazione.
Inotiv (NASDAQ:NOTV) reportó sólidos resultados financieros en el tercer trimestre del año fiscal 2025, con un aumento de ingresos del 23,5% hasta 130,7 millones de dólares. El crecimiento fue impulsado por un incremento del 34,1% en los ingresos de Research Models & Services (RMS) hasta 82,5 millones de dólares y un aumento del 8,9% en los ingresos de Discovery & Safety Assessment (DSA) hasta 48,2 millones de dólares.
La compañía redujo su pérdida neta a 17,6 millones de dólares (13,5% de los ingresos) en comparación con 26,1 millones en el tercer trimestre del año fiscal 2024. El EBITDA ajustado mejoró significativamente a 11,6 millones de dólares (8,9% de los ingresos) desde 0,1 millones año tras año. El backlog de DSA se situó en 134,3 millones de dólares con una ratio book-to-bill de 1,07x.
Entre los desarrollos destacados, la SEC concluyó su investigación relacionada con la importación de primates no humanos sin recomendar acciones de cumplimiento, y se realizó una provisión de 10 millones de dólares para demandas de valores en curso, que se espera sea recuperada completamente mediante un seguro.
Inotiv (NASDAQ:NOTV)는 2025 회계연도 3분기 강력한 재무 실적을 보고했으며, 매출이 23.5% 증가하여 1억 3,070만 달러를 기록했습니다. 성장은 Research Models & Services (RMS) 매출이 34.1% 증가하여 8,250만 달러, Discovery & Safety Assessment (DSA) 매출이 8.9% 증가하여 4,820만 달러에 달한 데서 비롯되었습니다.
회사는 순손실을 1,760만 달러(매출의 13.5%)로 줄였으며, 이는 2024 회계연도 3분기의 2,610만 달러와 비교됩니다. 조정 EBITDA는 전년 대비 0.1백만 달러에서 1,160만 달러(매출의 8.9%)로 크게 개선되었습니다. DSA 수주 잔고는 1억 3,430만 달러이며, 북투빌(book-to-bill) 비율은 1.07배입니다.
주요 소식으로는 SEC가 비인간 영장류 수입과 관련된 조사를 종료했으나 집행 조치를 권고하지 않았으며, 진행 중인 증권 소송에 대해 1,000만 달러의 충당금을 설정했으나 보험을 통해 전액 회수할 것으로 예상된다는 점이 있습니다.
Inotiv (NASDAQ:NOTV) a annoncé de solides résultats financiers pour le troisième trimestre de l'exercice 2025, avec un chiffre d'affaires en hausse de 23,5 % à 130,7 millions de dollars. Cette croissance a été portée par une augmentation de 34,1 % des revenus de Research Models & Services (RMS) à 82,5 millions de dollars et une hausse de 8,9 % des revenus de Discovery & Safety Assessment (DSA) à 48,2 millions de dollars.
L'entreprise a réduit sa perte nette à 17,6 millions de dollars (13,5 % du chiffre d'affaires) contre 26,1 millions au troisième trimestre de l'exercice 2024. L'EBITDA ajusté s'est nettement amélioré, atteignant 11,6 millions de dollars (8,9 % du chiffre d'affaires) contre 0,1 million un an plus tôt. Le carnet de commandes DSA s'élevait à 134,3 millions de dollars avec un ratio book-to-bill de 1,07x.
Parmi les développements notables, la SEC a conclu son enquête relative à l'importation de primates non humains sans recommander de mesures d'exécution, et une provision de 10 millions de dollars a été constituée pour des poursuites en cours sur des titres, qui devrait être entièrement récupérée grâce à une assurance.
Inotiv (NASDAQ:NOTV) meldete starke Finanzergebnisse für das dritte Quartal des Geschäftsjahres 2025 mit einem Umsatzanstieg von 23,5 % auf 130,7 Millionen US-Dollar. Das Wachstum wurde durch einen 34,1 %igen Anstieg der Einnahmen im Bereich Research Models & Services (RMS) auf 82,5 Millionen US-Dollar und einen 8,9 %igen Anstieg der Einnahmen im Bereich Discovery & Safety Assessment (DSA) auf 48,2 Millionen US-Dollar angetrieben.
Das Unternehmen verringerte seinen Nettoverlust auf 17,6 Millionen US-Dollar (13,5 % des Umsatzes) im Vergleich zu 26,1 Millionen US-Dollar im dritten Quartal des Geschäftsjahres 2024. Das bereinigte EBITDA verbesserte sich deutlich auf 11,6 Millionen US-Dollar (8,9 % des Umsatzes) gegenüber 0,1 Millionen US-Dollar im Vorjahreszeitraum. Der Auftragsbestand im Bereich DSA lag bei 134,3 Millionen US-Dollar mit einem Book-to-Bill-Verhältnis von 1,07x.
Zu den bemerkenswerten Entwicklungen gehört, dass die SEC ihre Untersuchung im Zusammenhang mit dem Import von nichtmenschlichen Primaten abgeschlossen hat, ohne eine Durchsetzungsmaßnahme zu empfehlen, sowie eine Rückstellung von 10 Millionen US-Dollar für laufende Wertpapierklagen, die voraussichtlich vollständig durch Versicherungen gedeckt wird.
- Revenue grew 23.5% year-over-year to $130.7 million in Q3 FY2025
- Adjusted EBITDA improved significantly to $11.6 million from $0.1 million year-over-year
- DSA net awards increased 25% versus same period last year
- RMS segment turned from $7.4M loss to $6.4M operating income in Q3
- SEC concluded investigation with no enforcement action recommended
- Strong book-to-bill ratio of 1.07x for DSA services
- Net loss of $17.6 million in Q3 FY2025
- Cash and equivalents decreased to $6.2M from $21.4M at fiscal year start
- Operating cash flow negative at -$24.8M YTD
- High debt level of $396.5M as of June 30, 2025
- Recent $3.0M draw request on revolving credit facility indicates potential liquidity needs
In a release issued under the same headline on August 6, 2025 by Inotiv, Inc. (NASDAQ: NOTV), please note that the amount of the recent draw request on the revolving credit facility has been corrected. The corrected release follows:
– Third quarter fiscal 2025 revenue up
– Year-to-date fiscal 2025 revenue increased
– Conference call scheduled for today at 4:30 pm ET
WEST LAFAYETTE, Ind., Aug. 06, 2025 (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 (“Q3 FY 2025”) ended June 30, 2025, and nine months ("YTD FY 2025") ended June 30, 2025.
Revenue by Segment (in millions of USD)
| Three Months Ended June 30, | % change (1) | Nine Months Ended June 30, | % change (1) | ||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||
| DSA (Discovery & Safety Assessment) | $ | 48.2 | $ | 44.2 | 8.9 | % | $ | 136.3 | $ | 135.5 | 0.6 | % | |||||||||
| RMS (Research Models & Services) | $ | 82.5 | $ | 61.6 | 34.1 | % | $ | 238.6 | $ | 224.8 | 6.1 | % | |||||||||
| Total (1) | $ | 130.7 | $ | 105.8 | 23.5 | % | $ | 374.9 | $ | 360.3 | 4.0 | % | |||||||||
| (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 third quarter of fiscal 2025, we continued to make progress towards the financial goals we outlined during our investor day in May. We were pleased that revenue and margins improved over the second quarter, and the year over year quarterly revenue increase of
"Our DSA net awards for the third quarter of fiscal 2025 increased
"As we experience this growth in revenue and awards, we remain highly focused on client satisfaction and delivery of on-time, high quality products and services. We consistently monitor operational data and client metrics to help build a strong recurring client base.
"This quarter’s results demonstrate continued progress in the execution of our strategic plans. We look forward to our future and want to thank all of our employees, shareholders and partners for their support and trust."
Highlights
Q3 FY 2025 Highlights
- Revenue was
$130.7 million in Q3 FY 2025, an increase of$24.9 million , or23.5% , compared to$105.8 million during the three months ended June 30, 2024 (“Q3 FY 2024”), driven by an increase of$21.0 million , or34.1% , in Research Models and Services ("RMS") revenue and a$3.9 million , or8.9% , increase in Discovery and Safety Assessment ("DSA") revenue. - Consolidated net loss for Q3 FY 2025 was
$17.6 million , or13.5% of total revenue, compared to consolidated net loss of$26.1 million , or24.7% of total revenue, in Q3 FY 2024. - Adjusted EBITDA1 in Q3 FY 2025 was
$11.6 million , or8.9% of total revenue, compared to$0.1 million , or0.1% of total revenue, in Q3 FY 2024. - Book-to-bill ratio for Q3 FY 2025 was 1.07x for the DSA services business.
- DSA backlog was
$134.3 million at June 30, 2025, compared to$139.4 million at June 30, 2024, and$130.8 million at March 31, 2025.
YTD FY 2025 Highlights
- Revenue was
$374.9 million in YTD FY 2025, an increase of$14.6 million , or4.0% , compared to$360.3 million during the nine months ended June 30, 2024 (“YTD FY 2024”), driven by an increase of$13.8 million , or6.1% , in RMS revenue and a$0.8 million , or0.6% , increase in DSA revenue. - Consolidated net loss for YTD FY 2025 was
$60.1 million , or16.0% of total revenue, compared to consolidated net loss of$90.0 million , or25.0% of total revenue, in YTD FY 2024. - Adjusted EBITDA1 in YTD FY 2025 was
$22.1 million , or5.9% of total revenue, compared to$12.8 million , or3.6% of total revenue, in YTD FY 2024. - Book-to-bill ratio for YTD FY 2025 was 1.03x for the DSA services business.
1 This is a non-GAAP financial measure. Refer to “Note on Non-GAAP Financial Measures” in this release for further information.
Recent Developments
- On June 2, 2025, the Securities and Exchange Commission (the "SEC") provided notice to the Company, through the Company’s external counsel, that the SEC’s Division of Enforcement (the “Division”) has concluded its previously disclosed investigation related to non-human primate ("NHP") importations from Asia, including importation practices in accordance with the U.S. Foreign Corrupt Practices Act and, based on the information available to the Division as of the date of its letter, the Division does not intend to recommend an enforcement action by the SEC against the Company.
- During Q3 FY 2025, one property previously reported as held for sale was sold. One property remains under contract to be sold and is held for sale as of June 30, 2025, in connection with our U.S. optimization plan.
- As previously disclosed, the Company and certain of its current and former directors and officers have been named as defendants in a putative securities class action lawsuit and two consolidated shareholder derivative lawsuits. Although no agreements have been reached, based on current negotiations with the plaintiffs, the Company has recorded a
$10.0 million accrual for these lawsuits as of June 30, 2025 and a$10.0 million receivable, as the Company currently expects to recover the full amount of the accrual under its existing insurance policies. Although these amounts have been recorded to date, there can be no assurance that final agreements will be reached, on these or other terms. Final amounts payable or recoverable related to these lawsuits may be materially different than the amounts recorded, and are subject to final resolution of these lawsuits, including negotiations between the Company, the other defendants and the plaintiffs, and required approvals by all parties involved and the courts.
Third Quarter Fiscal 2025 Financial Results (Three Months Ended June 30, 2025)
Revenue increased
Operating loss was
Fiscal 2025 Financial Results (Nine Months Ended June 30, 2025)
Revenue increased
Operating loss was
Cash and cash equivalents was
Webcast and Conference Call
Management will host a conference call on Wednesday, August 6, 2025, at 4:30 pm ET to discuss third fiscal quarter of 2025 results.
Interested parties may participate in the call by dialing:
- (800) 245-3047 (Domestic)
- (203) 518-9765(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=1725515&tp_key=690c604cf0
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 and nine months ended June 30, 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, amortization of inventory step up, loss (gain) on disposition of assets, amounts received from the legal settlement with FNI, other unusual, third party costs and the charge in connection with the Resolution Agreement and Plea Agreement. 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
Inotiv, Inc. is a leading contract research organization dedicated to providing nonclinical and analytical drug discovery and development services and research models and related products and services. The Company’s products and services focus on bringing new drugs and medical devices through the discovery and preclinical phases of development, all while increasing efficiency, improving data, and reducing the cost of taking new drugs and medical devices to market. Inotiv is committed to supporting discovery and development objectives as well as helping researchers realize the full potential of their critical research and development projects, all while working together to build a healthier and safer world. Further information about Inotiv can be found here: https://www.inotiv.com/.
This release contains forward-looking statements that are subject to risks and uncertainties including, but not limited to, statements regarding our intent, belief or current expectations with respect to (i) our strategic plans; (ii) trends in the demand for our services and products; (iii) trends in the industries that consume our services and products; (iv) market and company-specific impacts of NHP supply and demand matters; (v) compliance with the Resolution Agreement and Plea Agreement and the expected impacts on the Company related to the compliance plan and compliance monitor, and the expected amounts, timing and expense treatment of cash payments and other investments thereunder; (vi) our ability to service our outstanding indebtedness and to comply or regain compliance with financial covenants, including those established by the Seventh Amendment to our Credit Agreement; (vii) our current and forecasted cash position; (viii) our ability to make capital expenditures, fund our operations and satisfy our obligations; (ix) our ability to manage recurring and unusual costs; (x) our ability to execute on and realize the expected benefits related to our restructuring and site optimization plans; (xi) our expectations regarding the volume of new bookings, pre-sales, pricing, cost savings initiatives, expansion of services, operating income or losses and liquidity; (xii) our ability to effectively fill the recent expanded capacity or any future expansion or acquisition initiatives undertaken by us; (xiii) our ability to develop and build infrastructure and teams to manage growth and projects; (xiv) our ability to continue to retain and hire key talent; (xv) our ability to market our services and products under our corporate name and relevant brand names; (xvi) our ability to develop new services and products; (xvii) our ability to negotiate amendments to the Credit Agreement or obtain waivers related to the financial covenants defined within the Credit Agreement; (xviii) the potential outcome of litigation against us, including any settlement and amounts accrued or recoverable; and (xix) the impact of macroeconomic factors, including but not limited to tariffs, including those detailed in the Company's filings with the U.S. Securities and Exchange Commission. Further discussion of these risks, uncertainties, and other matters can be found in the Risk Factors detailed in our Annual Report on Form 10-K as filed on December 4, 2024, as well as other filings we make with the Securities and Exchange Commission.
| Company Contact | Investor Relations |
| Inotiv, Inc. | LifeSci Advisors |
| Beth A. Taylor, Chief Financial Officer | Steve Halper |
| (765) 497-8381 | (646) 876-6455 |
| beth.taylor@inotiv.com | shalper@lifesciadvisors.com |
| INOTIV, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (unaudited) | |||||||||||||||
| Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Service revenue | $ | 59,579 | $ | 54,364 | $ | 169,264 | $ | 165,188 | |||||||
| Product revenue | 71,104 | 51,422 | 205,618 | 195,134 | |||||||||||
| Total revenue | $ | 130,683 | $ | 105,786 | $ | 374,882 | $ | 360,322 | |||||||
| Costs and expenses: | |||||||||||||||
| Cost of services provided (excluding depreciation and amortization of intangible assets) | 42,983 | 39,622 | 125,719 | 117,362 | |||||||||||
| Cost of products sold (excluding depreciation and amortization of intangible assets) | 53,778 | 45,083 | 161,212 | 161,728 | |||||||||||
| Selling | 5,530 | 5,030 | 15,745 | 15,781 | |||||||||||
| General and administrative | 17,879 | 16,782 | 54,183 | 56,505 | |||||||||||
| Depreciation and amortization of intangible assets | 13,985 | 14,119 | 41,988 | 42,524 | |||||||||||
| Other operating expense | 2,203 | 5,902 | 155 | 39,661 | |||||||||||
| Operating loss | $ | (5,675 | ) | $ | (20,752 | ) | $ | (24,120 | ) | $ | (73,239 | ) | |||
| Other (expense) income: | |||||||||||||||
| Interest expense, net | (13,606 | ) | (12,116 | ) | (40,890 | ) | (34,568 | ) | |||||||
| Other income (expense) | 519 | (82 | ) | 464 | 1,092 | ||||||||||
| Loss before income taxes | $ | (18,762 | ) | $ | (32,950 | ) | $ | (64,546 | ) | $ | (106,715 | ) | |||
| Income tax benefit | 1,185 | 6,863 | 4,473 | 16,721 | |||||||||||
| Consolidated net loss | $ | (17,577 | ) | $ | (26,087 | ) | $ | (60,073 | ) | $ | (89,994 | ) | |||
| Less: Net loss attributable to noncontrolling interests | — | — | — | (440 | ) | ||||||||||
| Net loss attributable to common shareholders | $ | (17,577 | ) | $ | (26,087 | ) | $ | (60,073 | ) | $ | (89,554 | ) | |||
| Loss per common share | |||||||||||||||
| Net loss attributable to common shareholders: | |||||||||||||||
| Basic | $ | (0.51 | ) | $ | (1.00 | ) | $ | (1.89 | ) | $ | (3.46 | ) | |||
| Diluted | $ | (0.51 | ) | $ | (1.00 | ) | $ | (1.89 | ) | $ | (3.46 | ) | |||
| Weighted-average number of common shares outstanding: | |||||||||||||||
| Basic | 34,353 | 25,993 | 31,811 | 25,862 | |||||||||||
| Diluted | 34,353 | 25,993 | 31,811 | 25,862 | |||||||||||
| INOTIV, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share amounts) | |||||||
| June 30, | September 30, | ||||||
| 2025 | 2024 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 6,215 | $ | 21,432 | |||
| Trade receivables and contract assets, net of allowances for credit losses of | 78,745 | 73,560 | |||||
| Inventories, net | 45,074 | 18,173 | |||||
| Prepaid expenses and other current assets | 43,535 | 50,248 | |||||
| Assets held for sale | 2,016 | — | |||||
| Total current assets | 175,585 | 163,413 | |||||
| Property and equipment, net | 182,335 | 188,328 | |||||
| Operating lease right-of-use assets, net | 44,930 | 49,165 | |||||
| Goodwill | 94,286 | 94,286 | |||||
| Other intangible assets, net | 248,930 | 274,396 | |||||
| Other assets | 13,671 | 11,773 | |||||
| Total assets | $ | 759,737 | $ | 781,361 | |||
| Liabilities and shareholders' equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 45,373 | $ | 33,526 | |||
| Accrued expenses and other current liabilities | 35,921 | 28,218 | |||||
| Fees invoiced in advance | 40,251 | 41,986 | |||||
| Current portion of long-term operating lease | 8,845 | 11,774 | |||||
| Current portion of long-term debt | 6,206 | 3,538 | |||||
| Total current liabilities | 136,596 | 119,042 | |||||
| Long-term operating leases, net | 40,085 | 40,010 | |||||
| Long-term debt, less current portion, net of debt issuance costs | 390,336 | 389,801 | |||||
| Other long-term liabilities | 27,566 | 34,963 | |||||
| Deferred tax liabilities, net | 21,369 | 27,041 | |||||
| Total liabilities | 615,952 | 610,857 | |||||
| Shareholders’ equity: | |||||||
| Common shares, no par value: | |||||||
| Authorized 74,000,000 shares at June 30, 2025 and at September 30, 2024; 34,354,251 issued and outstanding at June 30, 2025 and 26,015,129 at September 30, 2024 | 8,550 | 6,466 | |||||
| Additional paid-in capital | 754,723 | 724,789 | |||||
| Accumulated deficit | (622,261 | ) | (562,163 | ) | |||
| Accumulated other comprehensive income | 2,773 | 1,412 | |||||
| Total equity | 143,785 | 170,504 | |||||
| Total liabilities and shareholders’ equity | $ | 759,737 | $ | 781,361 | |||
| INOTIV, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) | |||||||
| Nine Months Ended June 30, | |||||||
| 2025 | 2024 | ||||||
| Operating activities: | |||||||
| Consolidated net loss | $ | (60,073 | ) | $ | (89,994 | ) | |
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
| Depreciation and amortization | 41,988 | 42,524 | |||||
| Employee stock compensation expense | 4,644 | 5,118 | |||||
| Changes in deferred taxes | (5,835 | ) | (17,407 | ) | |||
| Provision for expected credit losses | (451 | ) | (1,282 | ) | |||
| Amortization of debt issuance costs and original issue discount | 3,862 | 2,575 | |||||
| Non-cash interest and accretion expense | 9,176 | 5,553 | |||||
| Other non-cash operating activities | 1,083 | (711 | ) | ||||
| Changes in operating assets and liabilities: | |||||||
| Trade receivables and contract assets | (4,338 | ) | 24,876 | ||||
| Inventories | (26,846 | ) | 17,520 | ||||
| Prepaid expenses and other current assets | 6,877 | 942 | |||||
| Operating lease right-of-use assets and liabilities, net | 1,382 | 1,092 | |||||
| Accounts payable | 11,384 | (4,931 | ) | ||||
| Accrued expenses and other current liabilities | 3,340 | 2,254 | |||||
| Fees invoiced in advance | (1,868 | ) | (17,017 | ) | |||
| Other asset and liabilities, net | (9,085 | ) | 24,455 | ||||
| Net cash used in operating activities | (24,760 | ) | (4,433 | ) | |||
| Investing activities: | |||||||
| Capital expenditures | (13,938 | ) | (17,015 | ) | |||
| Proceeds from sale of property and equipment | 1,522 | 5,432 | |||||
| Net cash used in investing activities | (12,416 | ) | (11,583 | ) | |||
| Financing activities: | |||||||
| Payments on revolving credit facility | (20,000 | ) | — | ||||
| Payments on senior term notes and delayed draw term loans | (4,254 | ) | (2,073 | ) | |||
| Borrowings on revolving credit facility | 20,000 | — | |||||
| Issuance of common shares | 27,524 | — | |||||
| Other financing activities, net | (1,187 | ) | (2,816 | ) | |||
| Net cash provided by (used in) financing activities | 22,083 | (4,889 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | (124 | ) | (153 | ) | |||
| Net decrease in cash and cash equivalents | (15,217 | ) | (21,058 | ) | |||
| Cash and cash equivalents at beginning of period | 21,432 | 35,492 | |||||
| Cash and cash equivalents at end of period | $ | 6,215 | $ | 14,434 | |||
| Supplemental disclosure of cash flow information: | |||||||
| Cash paid for interest | 30,950 | $ | 27,398 | ||||
| Income taxes paid, net | 714 | $ | 1,517 | ||||
| INOTIV, INC. RECONCILIATION OF GAAP TO NON-GAAP SELECT BUSINESS SEGMENT INFORMATION (In thousands) (Unaudited) | |||||||||||
| Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||
| DSA | |||||||||||
| Revenue | 48,150 | 44,219 | 136,304 | 135,548 | |||||||
| Operating income | 2,149 | 2,325 | 4,039 | 6,771 | |||||||
| Operating income as a % of total revenue | 1.6 | % | 2.2 | % | 1.1 | % | 1.9 | % | |||
| Add back: | |||||||||||
| Depreciation and amortization | 4,444 | 4,488 | 13,543 | 13,260 | |||||||
| Restructuring costs (1) | — | 205 | — | 341 | |||||||
| Startup costs (2) | 591 | 772 | 1,708 | 2,569 | |||||||
| Total non-GAAP adjustments to operating income | 5,035 | 5,465 | 15,251 | 16,170 | |||||||
| Non-GAAP operating income | 7,184 | 7,790 | 19,290 | 22,941 | |||||||
| Non-GAAP operating income as a % of DSA revenue | 14.9 | % | 17.6 | % | 14.2 | % | 16.9 | % | |||
| Non-GAAP operating income as a % of total revenue | 5.5 | % | 7.4 | % | 5.1 | % | 6.4 | % | |||
| RMS | |||||||||||
| Revenue | 82,533 | 61,567 | 238,578 | 224,774 | |||||||
| Operating income (loss) | 6,378 | (7,447 | ) | 16,625 | (32,973 | ) | |||||
| Operating income (loss) as a % of total revenue | 4.9 | % | (7.0 | %) | 4.4 | % | (9.2 | %) | |||
| Add back: | |||||||||||
| Depreciation and amortization | 9,365 | 9,401 | 27,953 | 28,781 | |||||||
| Restructuring costs (1) | 145 | 252 | 1,378 | 2,518 | |||||||
| Amortization of inventory step up | — | 49 | — | 209 | |||||||
| Legal Settlement (3) | — | — | (7,550 | ) | — | ||||||
| Other unusual, third party costs (4) | 966 | 2,270 | 3,444 | 4,628 | |||||||
| Resolution Agreement and Plea Agreement | — | 2,000 | — | 28,500 | |||||||
| Total non-GAAP adjustments to operating income (loss) | 10,476 | 13,972 | 25,225 | 64,636 | |||||||
| Non-GAAP operating income | 16,854 | 6,525 | 41,850 | 31,663 | |||||||
| Non-GAAP operating income as a % of RMS revenue | 20.4 | % | 10.6 | % | 17.5 | % | 14.1 | % | |||
| Non-GAAP operating income as a % of total revenue | 12.9 | % | 6.2 | % | 11.2 | % | 8.8 | % | |||
| Unallocated Corporate Operating Loss | (14,202 | ) | (15,630 | ) | (44,784 | ) | (47,037 | ) | |||
| Unallocated corporate operating loss as a % of total revenue | (10.9) % | (14.8) % | (11.9) % | (13.1) % | |||||||
| Add back: | |||||||||||
| Depreciation and amortization | 176 | 230 | 492 | 483 | |||||||
| Stock compensation expense | 1,439 | 1,337 | 4,644 | 5,118 | |||||||
| Acquisition and integration costs | — | — | — | 70 | |||||||
| Total non-GAAP adjustments to operating loss | 1,615 | 1,567 | 5,136 | 5,671 | |||||||
| Non-GAAP operating loss | (12,587 | ) | (14,063 | ) | (39,648 | ) | (41,366 | ) | |||
| Non-GAAP operating loss as a % of total revenue | (9.6) % | (13.3) % | (10.6) % | (11.5) % | |||||||
| Total | |||||||||||
| Revenue | 130,683 | 105,786 | 374,882 | 360,322 | |||||||
| Operating loss | (5,675 | ) | (20,752 | ) | (24,120 | ) | (73,239 | ) | |||
| Operating loss as a % of total revenue | (4.3) % | (19.6) % | (6.4) % | (20.3) % | |||||||
| Add back: | |||||||||||
| Depreciation and amortization | 13,985 | 14,119 | 41,988 | 42,524 | |||||||
| Stock compensation expense | 1,439 | 1,337 | 4,644 | 5,118 | |||||||
| Restructuring costs (1) | 145 | 457 | 1,378 | 2,859 | |||||||
| Acquisition and integration costs | — | — | — | 70 | |||||||
| Amortization of inventory step up | — | 49 | — | 209 | |||||||
| Startup costs (2) | 591 | 772 | 1,708 | 2,569 | |||||||
| Legal Settlement (3) | — | — | (7,550 | ) | — | ||||||
| Other unusual, third party costs (4) | 966 | 2,270 | 3,444 | 4,628 | |||||||
| Resolution Agreement and Plea Agreement (5) | — | 2,000 | — | 28,500 | |||||||
| Total non-GAAP adjustments to operating loss | 17,126 | 21,004 | 45,612 | 86,477 | |||||||
| Non-GAAP operating income | 11,451 | 252 | 21,492 | 13,238 | |||||||
| Non-GAAP operating income as a % of total revenue | 8.8 | % | 0.2 | % | 5.7 | % | 3.7 | % | |||
Adjustments to certain GAAP reported measures for the three and nine months ended June 30, 2025 and 2024 include, but are not limited to, the following:
(1) For the three and nine months ended June 30, 2025, primarily represents non-cash impairment charges incurred in connection with the exit of multiple sites. For the three and nine months ended June 30, 2024, primarily represents costs incurred in connection with the exit of multiple sites and the enablement of the in-house integration of Inotiv’s North American transportation operations.
(2) For the three and nine months ended June 30, 2025 and 2024, primarily represents costs related to the development and initiation of new service offerings that are not yet revenue generating for the respective periods.
(3) For the nine months ended June 30, 2025, represents the settlement payment we received from FNI.
(4) For the three and nine months ended June 30, 2025, primarily represents third party and legal costs incurred in connection with the Resolution Agreement and Plea Agreement and fees incurred in connection with the FNI settlement discussed above. For the three and nine months ended June 30, 2024, primarily represents legal costs incurred in connection with the DOJ investigation and certain remediation costs.
(5) For the three and nine months ended June 30, 2024, represents a charge related to the Resolution Agreement and Plea Agreement related to the DOJ investigation.
| INOTIV, INC. RECONCILIATION OF GAAP NET LOSS TO NON-GAAP ADJUSTED EBITDA (In thousands) (Unaudited) | |||||||||||||||
| Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| GAAP Consolidated Net Loss | $ | (17,577 | ) | $ | (26,087 | ) | $ | (60,073 | ) | $ | (89,994 | ) | |||
| Adjustments | |||||||||||||||
| Interest expense, net | 13,606 | 12,116 | 40,890 | 34,568 | |||||||||||
| Income tax benefit | (1,185 | ) | (6,863 | ) | (4,473 | ) | (16,721 | ) | |||||||
| Depreciation and amortization | 13,985 | 14,119 | 41,988 | 42,524 | |||||||||||
| Stock compensation expense | 1,439 | 1,337 | 4,644 | 5,118 | |||||||||||
| Startup costs (1) | 591 | 772 | 1,708 | 2,569 | |||||||||||
| Restructuring costs (2) | 145 | 457 | 1,378 | 2,859 | |||||||||||
| Unrealized foreign exchange (gain) loss | (527 | ) | 33 | (43 | ) | (576 | ) | ||||||||
| Amortization of inventory step up | — | 49 | — | 209 | |||||||||||
| Loss (gain) on disposition of assets | 133 | (79 | ) | 230 | (938 | ) | |||||||||
| Legal Settlement (3) | — | — | (7,550 | ) | — | ||||||||||
| Other unusual, third party costs (4) | 966 | 2,270 | 3,444 | 4,698 | |||||||||||
| Resolution Agreement and Plea Agreement (5) | — | 2,000 | — | 28,500 | |||||||||||
| Adjusted EBITDA | $ | 11,576 | $ | 124 | $ | 22,143 | $ | 12,816 | |||||||
| GAAP consolidated net loss as a percent of total revenue | (13.5 | )% | (24.7 | )% | (16.0 | )% | (25.0 | )% | |||||||
| Adjustments as a percent of total revenue | 22.3 | % | 24.8 | % | 21.9 | % | 28.5 | % | |||||||
| Adjusted EBITDA as a percent of total revenue | 8.9 | % | 0.1 | % | 5.9 | % | 3.6 | % | |||||||
Adjustments to certain GAAP reported measures for the three and nine months ended June 30, 2025 and 2024 include, but are not limited to, the following:
(1) For the three and nine months ended June 30, 2025 and 2024, primarily represents costs related to the development and initiation of new service offerings that are not yet revenue generating for the respective periods.
(2) For the three and nine months ended June 30, 2025, primarily represents non-cash impairment charges incurred in connection with the exit of multiple sites. For the three and nine months ended June 30, 2024, primarily represents costs incurred in connection with the exit of multiple sites and the enablement of the in-house integration of Inotiv’s North American transportation operations.
(3) For the nine months ended June 30, 2025, represents the settlement payment we received from FNI.
(4) For the three and nine months ended June 30, 2025, primarily represents third party and legal costs incurred in connection with the Resolution Agreement and Plea Agreement and fees incurred in connection with the FNI settlement discussed above. For the three and nine months ended June 30, 2024, primarily represents legal costs incurred in connection with the DOJ investigation and certain remediation costs.
(5) For the three and nine months ended June 30, 2024, represents a charge related to the Resolution Agreement and Plea Agreement related to the DOJ investigation.
FAQ
What were Inotiv's (NOTV) key financial results for Q3 2025?
How did Inotiv's business segments perform in Q3 2025?
What is the status of Inotiv's SEC investigation regarding primate imports?
How much debt does Inotiv (NOTV) currently have?
What is Inotiv's current cash position and operating cash flow?
