Inotiv Q1 revenue edges up 0.8% as DSA sales jump 12%
Inotiv Q1 revenue rose 0.8% to $120.9M with DSA sales up 12% to $48.0M while RMS revenue fell 5.4% to $72.9M. Operating loss widened 5.3% to $16.3M and net loss increased to $28.4M as cash reserves dropped to $12.7M.
1. Q1 Fiscal 2026 Revenue Growth Driven by DSA
In Q1 FY2026, total revenue reached $120.9 million, a 0.8% increase from the prior year quarter. The Discovery & Safety Assessment segment grew 12.0% to $48.0 million, offsetting a 5.4% decline in Research Models & Services revenue to $72.9 million.
2. Operating and Net Losses Widen on Margin Pressures
Operating loss increased 5.3% to $16.3 million from $15.5 million a year earlier, reflecting higher costs in the RMS segment and increased compensation expenses in DSA. Net loss expanded to $28.4 million, or 23.5% of revenue, while adjusted EBITDA fell to $1.8 million, or 1.5% of revenue.
3. Balance Sheet Highlights and Backlog Strength
Cash and equivalents declined from $21.7 million to $12.7 million as operating cash use and capital expenditures totaled $10.6 million in the quarter. The DSA backlog rose to $145.4 million with a 1.16x book-to-bill ratio, and the company exited two leased facilities under its site optimization plan.