Inotiv, Inc.

First-quarter fiscal 2026 total revenue was $120.9 million, up from $119.9 million a year ago, or +0.8%. DSA revenue was $48.0 million versus $42.8 million, and RMS revenue was $72.9 million versus $77.0 million, down 5.4%. The company reported an operating loss of $16.3 million versus $15.5 million last year, adjusted EBITDA of $1.8 million versus $2.6 million, and a net loss of $28.4 million, or $0.83 per diluted share, versus $27.6 million, or $1.02 per diluted share. DSA non-GAAP operating income was $8.2 million, or 6.8% of revenue, and RMS non-GAAP operating income was $7.2 million, or 5.9% of revenue. Interest expense was $13.5 million, down from $13.8 million. Cash and cash equivalents were $12.7 million at December 31, 2025, with $6 million borrowed on the $15 million revolver and total debt net of debt issuance costs of $405.8 million. Management is not providing formal FY2026 financial guidance. They said CapEx should remain below 4% of revenue for FY2026, expect NHP full-year revenue to remain flat year over year, and noted DSA momentum plus cost reductions in RMS should support improvement later in the year.

Bob Leasure said the quarter showed continued strength in DSA despite typical seasonal weakness and a difficult RMS environment. He highlighted improving awards, stronger brand recognition, customer trust, and new innovation/NAM collaborations as important drivers of future growth. His tone was cautiously upbeat, with repeated emphasis on execution, cost reduction, and improving the balance sheet through debt refinancing.

Beth Taylor walked through the quarter’s financials: revenue of $120.9 million, DSA revenue of $48.0 million, RMS revenue of $72.9 million, operating loss of $16.3 million, adjusted EBITDA of $1.8 million, and net loss of $28.4 million, or $0.83 per share. She noted cash of $12.7 million, revolver borrowings of $6 million, total debt of $405.8 million, and operating cash outflow of $5.4 million. CapEx was $5.2 million, about 4.3% of revenue, and the company still expects FY2026 CapEx to be less than 4% of revenue; she also said no formal FY2026 guidance is being provided because of market/client uncertainty and tariff policy evolution.

Analysts focused on why adjusted EBITDA and RMS margins were weaker, and management pointed to lower NHP volume, seasonal softness, and some cost pressures including animal costs and tariffs that had not yet been passed through. On DSA, management said awards remain above industry trends because of customer trust, recurring business, newer sales efforts, and scientific strength, while some discovery work has longer lead times. They also said the quarter’s lower DSA conversion rate reflected seasonality, larger backlog, and the mix/timing of awards, and reiterated that margins should improve as pricing actions flow through later in the year.