Revenue: As of FY2026 Q2, the actual value is USD 117.65 M, missing the estimate of USD 124.74 M.EPS: As of FY2026 Q2, the actual value is USD -0.94, missing the estimate of USD -0.635.EBIT: As of FY2026 Q2, the actual value is USD -19.68 M.<h4>Consolidated Net Loss</h4>Inotiv, Inc. reported a consolidated net loss of -$32,467 for the three months ended March 31, 2026, compared to -$14,866 for the same period in 2025, and a consolidated net loss of -$60,845 for the six months ended March 31, 2026, compared to -$42,496 in 2025.<h4>Segment Revenue</h4><ul><li>Three Months Ended March 31, 2026<ul><li>Discovery and Safety Assessment (DSA) segment revenue was $47,083, an increase of 3.9% from $45,332 in the prior year period.</li><li>Research Models and Services (RMS) segment revenue was $70,569, a decrease of -10.7% from $78,991 in the prior year period.</li><li>Total revenue decreased by -5.4% to $117,652 from $124,323.</li></ul></li><li>Six Months Ended March 31, 2026<ul><li>DSA segment revenue increased by 7.8% to $95,038 from $88,154 in the prior year period.</li><li>RMS segment revenue decreased by -8.0% to $143,493 from $156,045 in the prior year period.</li><li>Total revenue decreased by -2.3% to $238,531 from $244,199.</li></ul></li></ul><h4>Operational Metrics</h4><ul><li>DSA Segment Operating Income (CODM measure)<ul><li>Three Months Ended March 31, 2026: $6,067, up from $5,018 in 2025.</li><li>Six Months Ended March 31, 2026: $14,293, up from $12,106 in 2025.</li></ul></li><li>RMS Segment Operating (Loss) Income (CODM measure)<ul><li>Three Months Ended March 31, 2026: -$1,926, down from $11,432 income in 2025.</li><li>Six Months Ended March 31, 2026: $16,205, down from $24,996 in 2025.</li></ul></li><li>Consolidated Operating Loss<ul><li>Three Months Ended March 31, 2026: -$19,309, compared to -$2,938 in 2025.</li><li>Six Months Ended March 31, 2026: -$35,639, compared to -$18,445 in 2025.</li></ul></li><li>Cost of Revenue (excluding depreciation and amortization)<ul><li>DSA: $35,771 for three months ended March 31, 2026 (1.1% increase YoY); $70,373 for six months ended March 31, 2026 (6.3% increase YoY).</li><li>RMS: $57,232 for three months ended March 31, 2026 (-4.6% decrease YoY); $118,699 for six months ended March 31, 2026 (-4.3% decrease YoY).</li></ul></li><li>Selling, General and Administrative Expenses (SG&amp;A)<ul><li>DSA: $4,888 for three months ended March 31, 2026; $9,697 for six months ended March 31, 2026.</li><li>RMS: $4,191 for three months ended March 31, 2026; $8,589 for six months ended March 31, 2026.</li></ul></li><li>Unallocated Corporate Expenses<ul><li>Three Months Ended March 31, 2026: $18,176, up from $14,156 in 2025.</li><li>Six Months Ended March 31, 2026: $33,906, up from $30,266 in 2025.</li></ul></li></ul><h4>Cash Flow</h4><ul><li>Net Cash Used in Operating Activities<ul><li>Six Months Ended March 31, 2026: -$6,503, compared to -$17,312 in 2025.</li></ul></li><li>Net Cash Used in Investing Activities<ul><li>Six Months Ended March 31, 2026: -$7,277, primarily due to capital expenditures of $7,283.</li><li>Six Months Ended March 31, 2025: -$9,910, primarily due to capital expenditures of $9,932.</li></ul></li><li>Net Cash Provided by Financing Activities<ul><li>Six Months Ended March 31, 2026: $7,422, including $10,000 in revolving credit facility borrowings.</li><li>Six Months Ended March 31, 2025: $25,493, including $27,524 from common share issuance and $20,000 from revolving credit facility borrowings, offset by $20,000 in payments.</li></ul></li><li>Cash and Cash Equivalents<ul><li>As of March 31, 2026: $15,180, with access to $2,000 under its $15,000 revolving credit facility.</li></ul></li></ul><h4>Unique Metrics</h4><ul><li>DSA Book-to-bill ratio (services business)<ul><li>Three Months Ended March 31, 2026: 1.14x.</li><li>Six Months Ended March 31, 2026: 1.15x.</li></ul></li><li>DSA Backlog<ul><li>As of March 31, 2026: $151,818, compared to $138,197 at September 30, 2025, and $130,824 at March 31, 2025.</li></ul></li><li>Capital Expenditures<ul><li>DSA: $924 for three months ended March 31, 2026; $1,884 for six months ended March 31, 2026.</li><li>RMS: $1,179 for three months ended March 31, 2026; $5,399 for six months ended March 31, 2026.</li></ul></li><li>Depreciation and Amortization<ul><li>DSA: $4,200 for three months ended March 31, 2026; $8,546 for six months ended March 31, 2026.</li><li>RMS: $9,667 for three months ended March 31, 2026; $18,917 for six months ended March 31, 2026.</li></ul></li></ul><h4>Future Outlook and Strategy</h4>Inotiv, Inc. faces substantial doubt about its ability to continue as a going concern due to negative operating cash flows, operating losses, and consolidated net losses, alongside forecasted noncompliance with financial covenants and upcoming debt maturities within 12 months. Management plans to optimize capital allocation, improve operating results through client service and margin discipline, and increase revenue in both DSA and RMS segments. The company is also exploring potential recapitalization, reorganization, refinancing, restructuring, or other strategic alternatives to address its financial position.<h4>Other Strategic Initiatives</h4><ul><li>Site Optimization: Phase Two of the RMS site optimization plan, with a total capital investment of approximately $7,000 ($5,007 spent to date), is expected to reduce production capacity, create operating efficiencies, support animal welfare, and yield net annual savings of $6,000 to $7,000, with completion anticipated by the end of fiscal 2026.</li><li>External Factors Mitigation: The company is working with suppliers and customers to mitigate the financial impact of tariffs on imported non-human primates (NHPs) and is monitoring developments regarding the FDA Modernization Act 2.0 by aligning its service offerings, such as predictive computer software and cell-based assays, with goals to reduce animal testing.</li><li>Nasdaq Listing: Inotiv, Inc. received a Nasdaq delisting notice for not maintaining a minimum bid price of $1.00 per share and is considering options, including a potential reverse stock split, to regain compliance.</li></ul>

Inotiv | 10-Q: FY2026 Q2 Revenue Misses Estimate at USD 117.65 M