Inotiv(US:NOTV) Globenewswire·2026-02-09 12:00Core Viewpoint - Inotiv, Inc. reported a slight revenue increase in Q1 FY 2026, driven by growth in its Discovery and Safety Assessment (DSA) segment, while facing challenges in its Research Models and Services (RMS) segment [1][3][6]. Financial Performance - Total revenue for Q1 FY 2026 was $120.9 million, a 0.8% increase from $119.9 million in Q1 FY 2025, attributed to a $5.1 million (12.0%) rise in DSA revenue, offset by a $4.1 million (5.4%) decline in RMS revenue [2][7][8]. - The consolidated net loss for Q1 FY 2026 was $28.4 million, or 23.5% of total revenue, compared to a net loss of $27.6 million, or 23.0% of total revenue, in Q1 FY 2025 [7][30]. - Adjusted EBITDA for Q1 FY 2026 was $1.8 million, representing 1.5% of total revenue, down from $2.6 million, or 2.2% of total revenue, in Q1 FY 2025 [7][30]. Segment Performance - DSA segment revenue increased to $48.0 million in Q1 FY 2026 from $42.8 million in Q1 FY 2025, reflecting a 12.0% growth [2][8]. - RMS segment revenue decreased to $72.9 million in Q1 FY 2026 from $77.1 million in Q1 FY 2025, marking a 5.4% decline [2][8]. - The DSA backlog was $145.4 million at December 31, 2025, up from $138.2 million at September 30, 2025, and $130.4 million at December 31, 2024 [7]. Operational Insights - The company exited two leased facilities as part of its U.S. site optimization plan during Q1 FY 2026 [5]. - Management emphasized a focus on client service and margin discipline, with a 27% year-over-year growth in DSA net awards, indicating strong demand trends [3][6]. Cash Flow and Capital Structure - Cash and cash equivalents decreased to $12.7 million at December 31, 2025, from $21.7 million at September 30, 2025 [10]. - Cash used in operating activities was $5.4 million for Q1 FY 2026, compared to $4.5 million in Q1 FY 2025 [10][25]. - Total debt as of December 31, 2025, was $405.8 million, up from $402.1 million on September 30, 2025 [10].