Financial Data and Key Metrics Changes - For Q4 fiscal 2025, total revenue was $138.1 million, an increase of $7.7 million or 5.9% compared to Q4 fiscal 2024, primarily driven by the DSA segment [9][18] - For fiscal year 2025, total revenue was $513 million, an increase of $22.3 million or 4.5% compared to $490.7 million for fiscal 2024 [9][18] - The overall operating loss for Q4 fiscal 2025 decreased to $6.8 million from $13.2 million in Q4 fiscal 2024 [21] - Consolidated net loss attributable to common shareholders in Q4 fiscal 2025 totaled $8.6 million or a $0.25 loss per diluted share, compared to a loss of $18.9 million or $0.73 per diluted share in Q4 fiscal 2024 [26] Business Line Data and Key Metrics Changes - DSA revenue for Q4 fiscal 2025 was $51.6 million, a 15.7% increase year-over-year, driven by discovery and translational science services [19][20] - RMS revenue for Q4 fiscal 2025 was $86.5 million, an increase of $700,000 or 0.8% compared to Q4 fiscal 2024 [20] - DSA backlog was $138.2 million at September 30, 2025, compared to $129.9 million at September 30, 2024 [19] Market Data and Key Metrics Changes - The book-to-bill ratio for DSA for Q4 fiscal 2025 was 1.08 to 1, indicating strong demand [19] - DSA cancellations and negative change orders in Q4 fiscal 2025 were approximately 29% lower compared to the prior year [20] Company Strategy and Development Direction - The company aims to improve DSA revenue and margins while continuing RMS site consolidation to reduce costs [6][9] - The plan includes closing 13 RMS facilities over three years to modernize operations and improve efficiency [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds from a cybersecurity incident but expressed satisfaction with the recovery and ongoing demand [7][16] - The company remains optimistic about maintaining revenue growth and improving margins in the upcoming quarters [37][41] Other Important Information - The company engaged Perella Weinberg Partners for financial advisory services to explore debt refinancing alternatives [8] - Cash from operations in Q4 fiscal 2025 was $14.3 million, increasing the cash balance to $21.7 million [16][27] Q&A Session Summary Question: What were the headwinds faced in the quarter? - The major headwind was a cybersecurity incident that caused additional expenses and operational challenges, though the company managed to achieve significant awards despite this [31][32] Question: What are the quarter-to-date trends regarding ordering patterns? - The company typically sees a slowdown during the holiday season, but recent quoting activity has been encouraging, with a focus on cost reduction in the RMS business [35][36] Question: How is the company positioned regarding FDA guidance on animal models? - The company has minimal exposure to monoclonal antibodies and does not anticipate significant impacts from the FDA's new guidance [39][40] Question: What are the expectations for customer budgets in the upcoming year? - The company is seeing an increase in quoting activity and anticipates a substantial increase in bookings, indicating a positive outlook for next year's budgets [41] Question: How quickly can studies start for clients? - The company can typically start smaller studies within weeks, while larger animal safety assessments may take three to nine months [42]

Investment Rating - The report maintains a "Positive" investment rating for the healthcare sector [7] Core Insights - Overall, the performance of overseas CXO companies in Q3 2025 met expectations, with M segment outperforming R segment, and clinical CRO performing better than preclinical CRO [5][17] - Demand indicators show that several companies have stable or improving RFPs, new orders, and backlog orders, with Pharma demand remaining steady and Biotech demand showing slight recovery [5][17] - The biotechnology financing environment shows signs of improvement in Q3 2025 [5][17] Summary by Sections Performance Overview - Overseas CXO companies' revenue in Q3 2025 is generally in line with expectations, with M segment performing better than R segment, and clinical CRO outperforming preclinical CRO [5][17] - Revenue for CRL in Q1-3 2025 was $3.021 billion, a year-on-year decline of 0.9%, with net profit down 41.5% [23][33] Demand Trends - Demand for CRO services is gradually improving, with positive trends in RFPs and orders, which are expected to translate into performance [18] - CDMO shows strong resilience, with Lonza's CDMO business performing robustly and Samsung Biologics' revenue growing by 18% year-on-year in Q3 2025 [6][18] Company-Specific Insights - Labcorp reported a revenue of $10.436 billion in Q1-3 2025, a year-on-year increase of 7.8%, with Q3 revenue at $3.564 billion, up 8.6% [39][41] - IQVIA's revenue for Q1-3 2025 was $11.946 billion, a year-on-year increase of 4.4%, with Q3 revenue at $4.100 billion, up 5.2% [50][53] - ICON's Q3 2025 revenue was $2.043 billion, showing a year-on-year growth of 0.6% [65][69] - Medpace's Q3 2025 revenue reached $660 million, a year-on-year increase of 23.7% [73][78]