Inotiv, Inc. reported preliminary guidance for its fourth quarter of fiscal 2025 and the full year, projecting Q4 revenue of $137.5 million to $138.5 million and full‑year revenue of $512.5 million to $513.5 million. The outlook represents a lift from the $130.4 million reported in Q4 FY2024 and from the $490.7 million full‑year figure of FY2024, underscoring a clear upward trajectory for the company.
The company’s Discovery and Safety Assessment (DSA) services segment drove the majority of the upside, with a 60% year‑over‑year increase in revenue. This surge is attributed to a wave of new contract awards that expanded the DSA pipeline and reinforced Inotiv’s market position against competitors. While the Research Models and Services (RMS) segment remains a smaller contributor, management indicated ongoing efforts to strengthen that business line through operational efficiencies and targeted client outreach.
CEO Robert Leasure Jr. emphasized that the company is executing on the financial goals set during its investor day in May. He noted that “strong contract awards in our DSA services business, which grew sequentially in the fourth quarter and were up 60% over the same period last year,” are a key factor in the positive outlook. Leasure also highlighted the company’s strategic transformation, including a reduced facility footprint and consolidated IT systems, as foundations for sustained growth.
Analysts reacted positively to the guidance, citing the robust DSA performance as a primary driver of the favorable market sentiment. The company’s focus on integrated services for small to mid‑sized pharmaceutical clients, combined with the recent turnaround in revenue, has renewed confidence in its growth trajectory.
Inotiv’s preliminary results signal a turnaround after a challenging FY2024, but the company continues to navigate headwinds in the RMS segment and regulatory scrutiny related to past non‑human primate (NHP) matters. Management plans to address these challenges while maintaining momentum in DSA, with audited results expected in early December.
The company’s strategic initiatives—streamlining operations, investing in high‑return verticals, and expanding its contract portfolio—are expected to support the projected revenue growth and improve profitability over the long term. Investors will likely monitor the company’s ability to sustain DSA momentum, close the RMS gap, and manage any lingering regulatory impacts as it moves toward a full-year fiscal 2025 close.
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