Inotiv, Inc. reported fourth‑quarter 2025 revenue of $138.1 million, a 5.9% year‑over‑year increase from $130.4 million in Q4 2024. The company’s operating loss narrowed to $6.8 million, compared with a $13.2 million loss a year earlier, as higher operating income in its Research Models and Services (RMS) and Discovery and Safety Assessment (DSA) segments offset rising costs. Full‑year revenue reached $513.0 million, up 4.5% from $490.7 million in FY 2024, while the FY operating loss fell to $30.9 million from $86.4 million a year prior.
The revenue lift was driven primarily by a 15.7% year‑over‑year rise in DSA revenue, fueled by a 61% jump in net awards that reflects robust demand for biotherapeutic analysis and surgical services. RMS revenue grew by $14.5 million, largely from increased sales of non‑human primate products and services, and benefited from cost‑control initiatives that reduced expenses related to primate procurement and facility operations. Together, these segment gains offset modest growth in legacy product lines, resulting in the overall revenue increase.
Operating loss improvement and margin expansion were largely attributable to disciplined cost management and operational leverage. Adjusted EBITDA margin rose to 8.5% in Q4 2025 from 4.1% in Q4 2024, driven by higher operating income in both RMS and DSA and a reduction in unallocated corporate expenses. The company’s ability to maintain margin growth despite a modest revenue increase signals effective pricing power and efficient scale in its core service offerings.
Cash and capital structure remain key focus areas. Inotiv reported a cash balance of $21.7 million as of September 30, 2025, and a debt load of $402.1 million. The company is working with Perella Weinberg Partners to explore debt refinancing options, a move aimed at improving liquidity and reducing interest expense. A cybersecurity incident in August 2025 was fully contained, with no material financial impact reported, but the event underscores the importance of ongoing risk management.
CEO Robert Leasure Jr. highlighted the company’s progress, noting that the revenue increase was “in line with expectations” and that cost‑control measures were “highly effective.” He emphasized continued focus on client satisfaction, on‑time delivery, and high‑quality products, while acknowledging the need to maintain momentum in site consolidation and operational efficiency. Management reiterated confidence in the company’s long‑term trajectory, citing strong demand in DSA and the benefits of RMS site optimization.
Investors responded positively to the earnings beat and revenue beat, while remaining attentive to the company’s debt‑refinancing plans and the recent cybersecurity incident. The results reinforce Inotiv’s recovery path and suggest that disciplined cost management and robust demand in key service segments are driving improved profitability and positioning the company for sustainable growth.
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