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1. Company Snapshot

1.a. Company Description

Inotiv, Inc.provides drug discovery and development services to the pharmaceutical, chemical, and medical device industries; and sells analytical instruments to the pharmaceutical development and contract research industries.It operates through two segments, Contract Research Services and Research Products.


The Contract Research Services segment offers screening and pharmacological testing, nonclinical safety testing, formulation development, regulatory compliance, and quality control testing services.This segment provides analytical method development and validation; drug metabolism, bioanalysis, and pharmacokinetics testing to identify and measure drug and metabolite concentrations in complex biological matrices; in vivo sampling services for the continuous monitoring of chemical changes in life; stability testing to ensure the integrity of various solutions used in nonclinical and clinical studies, and post-study analyses; non-clinical toxicology and pathology services; and climate-controlled archiving services for its customers' data and samples.The Research Products segment designs, develops, manufactures, and markets in vivo sampling systems and accessories, including disposables, training, and systems qualification; physiology monitoring tools; liquid chromatography and electrochemistry instruments platforms; analytical products comprising liquid chromatographic and electrochemical instruments with associated accessories; and in vivo sampling products consisting of Culex family of automated in vivo sampling and dosing instruments.


The company operates in the United States, rest of North America, the Pacific Rim, Europe, and internationally.It has an agreement with BioVaxys to conduct preclinical toxicity studies for its Covid-T Immunodiagnostic program.The company was formerly known as Bioanalytical Systems, Inc.


and changed its name to Inotiv, Inc.in March 2021.Inotiv, Inc.


was founded in 1974 and is headquartered in West Lafayette, Indiana.

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1.b. Last Insights on NOTV

Negative drivers behind Inotiv's recent performance include a decline in revenue growth, primarily due to a decrease in contract research organization (CRO) services. The company's Q1 2025 earnings call revealed a 10% year-over-year decline in CRO revenue, driven by lower demand for nonclinical and analytical drug discovery services. Additionally, Inotiv's research models and related products segment also experienced a decline in revenue, contributing to the overall revenue shortfall.

1.c. Company Highlights

2. Inotiv's Q4 2025 Earnings: A Closer Look at the Numbers

Inotiv reported total revenue of $138.1 million for Q4 2025, representing a 5.9% increase from Q4 2024, driven primarily by a $7.1 million increase in Discovery & Safety Assessment (DSA) segment revenue. For fiscal year 2025, total revenue was $513 million, a 4.5% increase from fiscal year 2024. The company's operating loss decreased to $6.8 million in Q4 2025 from $13.2 million in Q4 2024. Non-GAAP operating income for DSA was $9.3 million in Q4 2025, and $28.5 million for fiscal year 2025. Adjusted EBITDA was $11.8 million in Q4 2025 and $34 million for fiscal year 2025. Actual EPS came out at -$0.14, relative to estimates at -$0.08.

Publication Date: Dec -07

📋 Highlights
  • DSA Segment Growth:: Revenue grew 15.7% in Q4 2025 ($7.1M increase) and 4.3% YoY, with a 61% surge in net awards and a 37.4% backlog conversion rate (highest in 3 years).
  • Operating Loss Reduction:: Declined to $6.8M in Q4 2025 from $13.2M in Q4 2024, alongside $11.8M Adjusted EBITDA and $28.5M annual non-GAAP operating income.
  • Cash Flow and Liquidity:: Generated $14.3M cash from operations in Q4 2025, ending with $21.7M cash, and maintains a $15M revolver with $3M drawn.
  • Capital Efficiency:: Q4 CapEx fell to $2.7M (1.9% of revenue) from $5.3M (4.1%), with 12M total fiscal 2025 CapEx (3.2% of revenue).
  • Cybersecurity Resilience:: Despite operational disruptions from a cybersecurity incident, DSA awards surged 63% in Q4 2025, offsetting intangible costs.

Segment Performance

The DSA segment saw revenue growth of 15.7% in Q4 2025 and 4.3% for fiscal year 2025, with a 61% year-over-year increase in net DSA awards. The DSA backlog conversion rate was 37.4% in Q4 2025, the highest in 3 years. RMS revenue increased 0.8% in Q4 2025 and 4.7% for fiscal year 2025. The company's animal services business in Texas is growing, with a mix of buying, selling, boarding, breeding, and services.

Cash Flow and Balance Sheet

The company generated $14.3 million in cash from operations in Q4 2025 and ended the quarter with $21.7 million in cash and cash equivalents. Inotiv is exploring potential debt refinancing alternatives with the goal of improving its balance sheet. Total debt, net of debt issuance costs, was $402.1 million, compared to $393.3 million on September 30, 2024. The company had access to a $15 million revolver with an outstanding balance of $3 million as of September 30, 2025.

Valuation and Outlook

Analysts estimate next year's revenue growth at 4.9%. With a P/S Ratio of 0.05 and EV/EBITDA of 12.57, the market is pricing in a relatively low growth rate. The company's ROE is -54.86%, and ROIC is -3.67%, indicating a challenging operating environment. However, the company is encouraged by its recent growth and progress toward its financial goals, citing a 63% increase in awards during the quarter despite a cybersecurity incident.

Operational Headwinds and Tailwinds

The company cited a cybersecurity incident as a headwind in the quarter, which had intangible costs and impacts on operations and customers. However, the company is seeing an increase in quoting activity and closing deals, with a more stable pricing environment. The RMS business is seeing improving margins in its small animal and diet business due to reduced sites and fixed costs.

3. NewsRoom

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Inotiv Provides Notice Regarding Cybersecurity Incident

Feb -13

Source: globenewswire.com

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Inotiv, Inc. (NOTV) Q1 2026 Earnings Call Transcript

Feb -09

Source: seekingalpha.com

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Inotiv Reports First Quarter Financial Results for Fiscal 2026 and Provides Business Update

Feb -09

Source: globenewswire.com

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Inotiv, Inc. to Report Fiscal 2026 First Quarter Financial Results and Host Conference Call on Monday, February 9, 2026

Feb -04

Source: globenewswire.com

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Ernexa Therapeutics (NASDAQ:ERNA) vs. Inotiv (NASDAQ:NOTV) Critical Review

Jan -15

Source: defenseworld.net

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Inotiv Leverages LifeNet Health Proprietary Platform to Advance New Approach Methodologies in Translational Drug Discovery

Jan -13

Source: globenewswire.com

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Inotiv Partners with VUGENE to Advance AI-Driven Drug Discovery and Bioinformatics Capabilities

Dec -11

Source: globenewswire.com

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Inotiv, Inc. (NOTV) Q4 2025 Earnings Call Transcript

Dec -04

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.49%)

6. Segments

Research Models and Services- Product

Expected Growth: 2%

Inotiv's Research Models and Services product growth is driven by increasing demand for preclinical research, outsourcing of R&D services by pharmaceutical companies, and advancements in gene therapy and regenerative medicine. Additionally, the rising need for personalized medicine and targeted therapies fuels growth, as Inotiv's products support the development of novel treatments.

Discovery and Safety Assessment- Service

Expected Growth: 3%

Inotiv's Discovery and Safety Assessment service growth is driven by increasing demand for non-clinical contract research, rising R&D investments in pharmaceutical and biotechnology industries, and growing need for outsourced services to accelerate drug development. Additionally, advancements in gene therapy and rare disease research are fueling growth in this segment.

Research Models and Services- Service

Expected Growth: 4%

Inotiv's Research Models and Services segment growth is driven by increasing demand for preclinical research, outsourcing of R&D services by pharmaceutical and biotechnology companies, and expansion into new therapeutic areas. Additionally, strategic acquisitions and investments in digitalization and automation are enhancing operational efficiency and driving revenue growth.

Discovery and Safety Assessment- Product

Expected Growth: 5%

Inotiv's Discovery and Safety Assessment product growth is driven by increasing demand for outsourced preclinical research, rising R&D investments in pharmaceutical and biotechnology industries, and growing need for safety assessment services. Additionally, advancements in gene therapy and regenerative medicine, as well as the COVID-19 pandemic, have accelerated the adoption of Inotiv's services, contributing to its 5% growth.

7. Detailed Products

Non-Clinical Services

Inotiv provides non-clinical services, including toxicology, pharmacology, and pharmacokinetics studies to support the development of new drugs and therapies.

Clinical Services

Inotiv offers clinical services, including early phase clinical trials, bioanalytical services, and clinical pharmacology studies to support the development of new drugs and therapies.

Discovery Services

Inotiv provides discovery services, including target identification, lead optimization, and candidate selection to support the discovery of new drugs and therapies.

Regulatory Services

Inotiv offers regulatory services, including regulatory consulting, compliance, and auditing to support the development and approval of new drugs and therapies.

Bioanalytical Services

Inotiv provides bioanalytical services, including method development, validation, and sample analysis to support the development of new drugs and therapies.

8. Inotiv, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Inotiv, Inc. operates in a niche market with limited substitutes, but there are some alternatives available, making the threat of substitutes medium.

Bargaining Power Of Customers

Inotiv, Inc. has a diverse customer base, and no single customer has significant bargaining power, making the bargaining power of customers low.

Bargaining Power Of Suppliers

Inotiv, Inc. relies on a few key suppliers, but there are alternative suppliers available, making the bargaining power of suppliers medium.

Threat Of New Entrants

The biotechnology industry is highly competitive, and new entrants can easily enter the market, making the threat of new entrants high.

Intensity Of Rivalry

The biotechnology industry is highly competitive, and there are many established players, making the intensity of rivalry high.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 60.81%
Debt Cost 12.20%
Equity Weight 39.19%
Equity Cost 20.79%
WACC 15.57%
Leverage 155.17%

11. Quality Control: Inotiv, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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DermTech

A-Score: 3.8/10

Value: 10.0

Growth: 3.3

Quality: 2.8

Yield: 0.0

Momentum: 6.0

Volatility: 0.3

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VolitionRx

A-Score: 3.7/10

Value: 8.0

Growth: 6.3

Quality: 5.8

Yield: 0.0

Momentum: 1.0

Volatility: 1.3

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Bionano Genomics

A-Score: 3.3/10

Value: 10.0

Growth: 4.3

Quality: 4.0

Yield: 0.0

Momentum: 0.5

Volatility: 1.0

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T2 Biosystems

A-Score: 3.2/10

Value: 10.0

Growth: 4.7

Quality: 4.8

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

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Aclaris Therapeutics

A-Score: 3.2/10

Value: 6.7

Growth: 6.7

Quality: 4.0

Yield: 0.0

Momentum: 0.5

Volatility: 1.3

1-Year Total Return ->

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Inotiv

A-Score: 2.8/10

Value: 9.0

Growth: 3.1

Quality: 2.1

Yield: 0.0

Momentum: 2.0

Volatility: 0.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.27$

Current Price

0.27$

Potential

-0.00%

Expected Cash-Flows