Core Insights - Inotiv, Inc. reported a 23.5% increase in revenue for Q3 FY 2025, reaching $130.7 million compared to $105.8 million in Q3 FY 2024, driven by significant growth in Research Models and Services (RMS) and Discovery and Safety Assessment (DSA) segments [1][7][11] - Year-to-date revenue for FY 2025 increased by 4.0% to $374.9 million from $360.3 million in FY 2024, primarily due to higher RMS revenue [1][13][14] - The company experienced a consolidated net loss of $17.6 million in Q3 FY 2025, an improvement from a net loss of $26.1 million in Q3 FY 2024 [1][7][11] Financial Performance - Q3 FY 2025 revenue breakdown: RMS revenue increased by $21.0 million (34.1%) and DSA revenue increased by $3.9 million (8.9%) [3][11] - Adjusted EBITDA for Q3 FY 2025 was $11.6 million, or 8.9% of total revenue, compared to $0.1 million (0.1%) in Q3 FY 2024 [7][11][43] - The book-to-bill ratio for DSA services was 1.07x in Q3 FY 2025, indicating a healthy demand for services [7][11] Segment Analysis - DSA segment revenue for Q3 FY 2025 was $48.2 million, up from $44.2 million in Q3 FY 2024, while RMS segment revenue was $82.5 million, up from $61.6 million [3][34] - Year-to-date RMS revenue increased by 6.1% to $238.6 million, while DSA revenue saw a modest increase of 0.6% to $136.3 million [3][14] Management Commentary - The CEO highlighted progress towards financial goals set during the investor day in May, noting improved revenue and margins compared to the previous quarter [4][6] - The company remains focused on client satisfaction and the delivery of high-quality products and services, with a strong emphasis on operational data monitoring [5][6] Recent Developments - The SEC concluded its investigation related to non-human primate importations without recommending enforcement action against the company [14] - The company recorded a $10.0 million accrual for ongoing securities class action lawsuits, expecting to recover this amount under existing insurance policies [14]

Company Overview - Inotiv, Inc. is a leading contract research organization specializing in nonclinical and analytical drug discovery and development services, as well as research models and related products [3] - The company's focus is on enhancing efficiency, improving data quality, and reducing costs associated with bringing new drugs and medical devices to market [3] - Inotiv aims to support discovery and development objectives while contributing to a healthier and safer world [3] Upcoming Event - Robert Leasure Jr., President and CEO of Inotiv, will present at the Jefferies Global Healthcare Conference in New York on June 4 at 3:45 p.m. ET [1] - The live webcast of the presentation will be available in the "Investors" section of Inotiv's website and will be archived for approximately 90 days [2]

Core Viewpoint - Inotiv, Inc. reported a revenue increase of 4.4% in Q2 FY 2025 compared to the same period last year, driven primarily by growth in Research Models and Services (RMS) revenue, despite a decline in Discovery and Safety Assessment (DSA) revenue [1][6][8]. Financial Performance - Q2 FY 2025 revenue was $124.3 million, up from $119.0 million in Q2 FY 2024, with RMS revenue increasing by $6.6 million (9.1%) and DSA revenue decreasing by $1.3 million (2.8%) [2][6][8]. - Year-to-date (YTD) FY 2025 revenue decreased by 4.1% to $244.2 million compared to $254.5 million in YTD FY 2024, attributed to a $7.2 million (4.4%) decline in RMS revenue and a $3.2 million (3.5%) decline in DSA revenue [10][13]. - The consolidated net loss for Q2 FY 2025 was $14.9 million (12.0% of total revenue), significantly improved from a net loss of $48.1 million (40.4% of total revenue) in Q2 FY 2024 [6][13]. - Adjusted EBITDA for Q2 FY 2025 was $8.0 million (6.4% of total revenue), compared to $3.1 million (2.6% of total revenue) in Q2 FY 2024 [6][13]. Segment Performance - DSA revenue for Q2 FY 2025 was $45.3 million, down from $46.6 million in Q2 FY 2024, while RMS revenue was $79.0 million, up from $72.4 million [2][33]. - The operating loss for Q2 FY 2025 was $2.9 million, a significant reduction from an operating loss of $43.1 million in Q2 FY 2024, primarily due to improved RMS performance [9][11]. Operational Insights - The company is focusing on optimizing its RMS sites in North America to align better with client needs and enhance client satisfaction [3]. - Management is attentive to external factors such as tariffs and R&D funding levels, with proactive strategies in place to mitigate current tariff impacts [3]. Cash Flow and Debt - Cash and cash equivalents stood at $19.3 million as of March 31, 2025, down from $21.4 million at the end of September 2024 [12]. - Total debt as of March 31, 2025, was $399.5 million, with no borrowings on the company's $15.0 million revolving credit facility [12].