Inotiv (NOTV) Q2 2026 earnings summary

Executive summary

• Revenue for the quarter ended March 31, 2026, was $117.7M, down 5.4% year-over-year, driven by a 10.7% decline in RMS revenue, partially offset by a 3.9% increase in DSA revenue.

• Net loss for the quarter was $32.5M (27.6% of revenue), compared to $14.9M (12.0%) in the prior year quarter.

• For the six months ended March 31, 2026, revenue was $238.5M (down 2.3% year-over-year), with a net loss of $60.8M (25.5% of revenue), compared to $42.5M (17.4%) in the prior year period.

• DSA backlog increased to $151.8M at March 31, 2026, from $138.2M at September 30, 2025.

Financial highlights

• DSA segment revenue rose 3.9% to $47.1M for the quarter, with operating income of $1.0M (up from a $0.1M loss), driven by increased safety assessment and analytical services.

• RMS segment revenue fell 10.7% to $70.6M, with an operating loss of $1.9M (down from $11.4M income), mainly due to lower NHP volumes and higher operating expenses.

• Consolidated gross margin declined due to higher costs and lower RMS revenue.

• Interest expense increased, contributing to higher net losses.

Outlook and guidance

• Management forecasts noncompliance with financial covenants for the remainder of fiscal 2026 and substantial doubt exists about the ability to continue as a going concern.

• The company is exploring recapitalization, refinancing, restructuring, or other strategic alternatives.

• Ongoing efforts to optimize capital allocation, reduce expenses, and improve operating results are underway.