Inotiv Stock Earnings Reports

Key points for investors: Total revenue was essentially flat in Q1 FY2026 at $120.9M (+0.8% YoY) as strong DSA performance (+12% YoY; discovery +26%, safety assessment +7%) was offset by weakness in the RMS segment (-5.4% YoY) driven by ~25% lower NHP volumes. DSA momentum included strong net awards ($53.6M in the quarter; trailing-12-month DSA awards +34%) and a book-to-bill >1 (Q1 DSA 1.16:1; trailing 12-month 1.08:1), improving backlog and converting pipeline. DSA margins and non-GAAP DSA operating income improved (non-GAAP DSA operating income $8.2M, 6.8% of revenue) and management expects continued margin improvement as recent pricing and capacity investments flow through. RMS margins were pressured by lower NHP volumes despite cost reduction actions and site consolidations (2 leased facilities exited in the quarter; site optimization to be complete by Q3 FY2026). Consolidated operating loss widened slightly (Q1 operating loss $16.3M vs $15.5M prior year); consolidated net loss was $28.4M ($0.83/diluted share). Adjusted EBITDA was $1.8M (1.5% of revenue). Liquidity and balance sheet: cash was $12.7M (down from $21.7M at 9/30/25), total debt was $405.8M (includes convertible and second-lien notes); the company is pursuing debt refinancing with Perella Weinberg and has received a covenant waiver for Q1. Management is not providing formal FY2026 guidance yet, is focused on DSA growth, RMS cost and footprint optimization, NAMs/innovation partnerships, and improving the capital structure.