Inotiv, Inc. (NASDAQ:NOTV) shares fell about 3% in premarket trading on Monday after the company posted first-quarter fiscal 2026 results that missed expectations, with slower revenue growth and a wider loss.
The contract research group reported first-quarter revenue of $120.9 million, a modest 0.8% increase from a year earlier but well below the analyst consensus of $126.53 million. Adjusted earnings per share came in at -$0.83, compared with expectations for a loss of -$0.51.
Performance varied by segment. The Discovery & Safety Assessment (DSA) unit delivered 12% growth, lifting revenue to $48 million, while the Research Models & Services (RMS) segment declined 5.4% to $72.9 million. The drop in RMS was mainly due to lower non-human primate volumes, partly offset by higher average selling prices.
“During the first quarter of fiscal 2026, we continued to execute on our operational and financial priorities, with a sustained focus on client service and margin discipline,” said Robert Leasure Jr., President and Chief Executive Officer. “Revenue increased slightly compared to the first quarter of fiscal 2025, and demand trends, particularly within our DSA segment, remained encouraging.”
Operating loss for the quarter widened 5.3% year over year to $16.3 million. Adjusted EBITDA totaled $1.8 million, or 1.5% of revenue, down from $2.6 million, or 2.2% of revenue, in the prior-year period.
Despite the weaker headline numbers, Inotiv pointed to some improving indicators. Net awards in the DSA segment rose 27% year over year, and DSA backlog stood at $145.4 million at quarter-end, up from $138.2 million at the end of September 2025.
Cash and cash equivalents were $12.7 million as of December 31, 2025, down from $21.7 million three months earlier, while total debt stood at $405.8 million.