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Inotiv Q2 2025 Earnings Report
Inotiv reported an increase in total revenue for the second quarter of fiscal year 2025, driven by growth in Research Models and Services (RMS) revenue, despite a decrease in Discovery and Safety Assessment (DSA) revenue. The company also significantly reduced its consolidated net loss and improved its Adjusted EBITDA compared to the prior year.
Key Takeaways
Inotiv, Inc. reported a 4.4% increase in total revenue to $124.3 million for Q2 FY 2025, primarily due to a 9.1% increase in Research Models and Services (RMS) revenue. The company significantly reduced its consolidated net loss from $48.1 million in Q2 FY 2024 to $14.9 million in Q2 FY 2025 and improved its Adjusted EBITDA to $8.0 million.
Total revenue for Q2 FY 2025 increased by 4.4% to $124.3 million compared to $119.0 million in Q2 FY 2024.
Research Models and Services (RMS) revenue increased by $6.6 million, or 9.1%, in Q2 FY 2025.
Discovery and Safety Assessment (DSA) revenue decreased by $1.3 million, or 2.8%, in Q2 FY 2025.
Consolidated net loss for Q2 FY 2025 was $14.9 million, a significant improvement from a $48.1 million loss in Q2 FY 2024.
Inotiv
Inotiv
Inotiv Revenue by Segment
Revenue by Segment
RMS Revenue
CapyFin.comDSA Revenue
CapyFin.com Forward Guidance
The company is focused on optimizing its RMS site plans, accelerating timing for potential annual savings, and proactively mitigating external factors like tariffs and R&D funding levels. They believe their strategic positioning will help meet client needs and support FDA modernization objectives.
Positive Outlook
- Refined RMS site optimization plans for North American facilities for better client alignment.
- Opportunity to accelerate timing and improve potential annual savings from RMS site optimization.
- Proactive mitigation strategies in place for current tariffs.
- Historical DSA acquisitions and long-term investments provide a strong foundation.
- Strong compliance culture and service quality position the company to meet client needs and support FDA modernization.
Challenges Ahead
- External factors like tariffs remain a concern.
- Client R&D funding levels are an external factor to monitor.
- Impact of the recently announced efforts to accelerate implementation of the FDA Modernization Act 2.0.
- Completion of U.S. optimization plans now expected by the end of the second quarter of fiscal 2026, a slight delay.
- DSA revenues decreased primarily due to a decrease in general toxicology services revenue.