Inotiv (NOTV)
NASDAQ:NOTV
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Inotiv
(NASDAQ:NOTV)
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Rating:44Neutral
Price Target:
$0.29
▼(-47.04% Downside)
Action:ReiteratedDate:04/17/26
The score is held down primarily by weak financial quality—ongoing net losses, negative operating/free cash flow, and very high leverage—despite improving revenue and positive EBITDA. The earnings call adds mixed signals: strong DSA demand indicators (awards/backlog) are offset by declining cash, lack of formal guidance, RMS volume pressure, and refinancing/covenant risk. Technically, the stock shows only a short-term bounce while remaining in a broader downtrend; valuation appears optically low due to losses and offers no dividend support.
Positive Factors
DSA growth and backlog
Sustained double-digit DSA awards and a growing backlog provide predictable future revenue conversion and indicate strong commercial demand. A book-to-bill >1 and higher discovery awards reduce near-term revenue volatility and support multi-quarter revenue visibility for the services segment.
Negative Factors
Very high leverage
A highly leveraged balance sheet materially limits financial flexibility and raises refinancing risk. Large debt loads magnify sensitivity to operating softness and interest costs, constraining investment and increasing default or covenant breach probability until deleveraging occurs.
Read all positive and negative factors
Positive Factors
Negative Factors
DSA growth and backlog
Sustained double-digit DSA awards and a growing backlog provide predictable future revenue conversion and indicate strong commercial demand. A book-to-bill >1 and higher discovery awards reduce near-term revenue volatility and support multi-quarter revenue visibility for the services segment.
Read all positive factors
Inotiv (NOTV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.40M
Dividend YieldN/A
Average Volume (3M)1.20M
Price to Earnings (P/E)―
Beta (1Y)1.65
Revenue Growth4.54%
EPS Growth47.11%
CountryUS
Employees1,977
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)-0.83
Shares Outstanding34,394,970
10 Day Avg. Volume429,089
30 Day Avg. Volume1,202,902
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)0.35
Price to Sales (P/S)0.09
P/FCF Ratio-1.74
Enterprise Value/Market Cap39.23
Enterprise Value/Revenue1.02
Enterprise Value/Gross Profit5.65
Enterprise Value/Ebitda21.44
Forecast
1Y Price Target
$1.50Price Target Upside177.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-2
Revenue Forecast (FY)$535.62M
Inotiv Business Overview & Revenue Model
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 ...
How the Company Makes Money
Inotiv makes money primarily by selling services and products to research and drug-development customers under contract and through recurring supply relationships. A key revenue stream is contract research services, where customers pay fees for ou...
Inotiv Key Performance Indicators (KPIs)
Inotiv Earnings Call Summary
Earnings Call Date:Feb 09, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Neutral
The call presented meaningful operational progress in the DSA business — including double-digit revenue growth, strong award activity, an increasing backlog and improving DSA margins — and tangible execution on site optimization and NAMs collaborations. However, these positives are tempered by notable financial and operational headwinds: a larger consolidated net loss, declining adjusted EBITDA, reduced cash balances, high net debt and a covenant waiver, as well as RMS pressure from a roughly 25% decline in NHP volumes. Management is taking active steps on refinancing and cost optimization, but short-term liquidity and RMS volume issues present material risks. Overall, the call balanced solid commercial momentum in DSA with significant near-term financial and RMS challenges.Positive Updates
Overall Revenue Slightly Up
Total revenue of $120.9M in Q1 FY2026 versus $119.9M in Q1 FY2025, an increase of $1.0M or +0.8% year-over-year, driven primarily by DSA growth.
Negative Updates
Consolidated Loss and Weak Adjusted EBITDA
Consolidated net loss of $28.4M (loss per diluted share $0.83) in Q1 FY2026 versus net loss $27.6M (loss per diluted share $1.02) a year ago. Total company adjusted EBITDA fell to $1.8M (1.5% of revenue) from $2.6M (2.2% of revenue) in prior-year Q1.
Read all updates
Q1-2026 Updates
Positive
Negative
Overall Revenue Slightly Up
Total revenue of $120.9M in Q1 FY2026 versus $119.9M in Q1 FY2025, an increase of $1.0M or +0.8% year-over-year, driven primarily by DSA growth.
Read all positive updates
Company Guidance
Management did not provide formal fiscal‑2026 guidance, saying it will resume guidance once there is greater clarity on market/client demand and tariff impacts, but offered directional expectations and many operating and financial metrics: Q1 revenue was $120.9M (DSA $48.0M, RMS $72.9M), DSA +12% YoY (DTS +26%, safety assessment +7%); net new DSA awards were $53.6M in Q1 (+27% YoY) with trailing‑12‑month DSA awards +34%, DSA backlog $145.4M (book‑to‑bill 1.16:1 for the quarter and 1.08:1 TTM; backlog conversion 33.2%), cancellations ~51% lower in Q1 (~17% lower TTM); management expects full‑year NHP revenue to be roughly flat YoY; Q1 adjusted EBITDA was $1.8M (1.5% of revenue) and consolidated net loss $28.4M ($0.83/share), cash $12.7M (vs $21.7M at 9/30/25), total debt $405.8M (including $118.2M convertible notes and $24.7M second‑lien), Q1 interest expense $13.5M, cash used in operations $5.4M, Q1 CapEx $5.2M (~4.3% of revenue) with FY26 CapEx expected <4%, and the company is pursuing debt refinancing with Perella Weinberg after receiving a waiver for covenant noncompliance for Q1.Inotiv Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
23
Negative
Cash Flow
27
Negative
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Dec 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 514.03M | 513.02M | 490.74M | 572.42M | 547.66M | 89.61M |
| Gross Profit | 93.02M | 65.05M | 111.17M | 165.44M | 157.21M | 30.16M |
| EBITDA | 24.52M | 24.75M | -26.76M | -26.51M | -273.42M | 15.37M |
| Net Income | -69.37M | -68.63M | -108.44M | -105.14M | -337.26M | 10.89M |
Balance Sheet | ||||||
| Total Assets | 734.34M | 771.11M | 781.36M | 856.53M | 962.90M | 321.86M |
| Cash, Cash Equivalents and Short-Term Investments | 12.73M | 21.74M | 21.43M | 35.49M | 18.52M | 138.92M |
| Total Debt | 528.55M | 503.63M | 445.12M | 417.64M | 386.49M | 174.19M |
| Total Liabilities | 625.31M | 635.09M | 610.86M | 588.04M | 603.13M | 216.73M |
| Stockholders Equity | 109.02M | 136.03M | 170.50M | 269.15M | 360.37M | 105.13M |
Cash Flow | ||||||
| Free Cash Flow | -28.73M | -27.07M | -29.11M | 380.00K | -41.52M | -1.73M |
| Operating Cash Flow | -11.39M | -10.46M | -6.80M | 27.88M | -5.22M | 10.75M |
| Investing Cash Flow | -13.61M | -12.89M | -16.83M | -28.75M | -333.72M | -54.06M |
| Financing Cash Flow | -888.00K | 23.70M | 9.68M | 15.87M | 203.15M | 198.83M |
Inotiv Technical Analysis
Negative
0.54
Price Trends
0.31
Negative
0.49
Negative
1.04
Negative
Market Momentum
-0.01
Negative
47.80
Neutral
58.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NOTV, the sentiment is Negative. The current price of 0.54 is above the 20-day moving average (MA) of 0.28, above the 50-day MA of 0.31, and below the 200-day MA of 1.04, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 47.80 is Neutral, neither overbought nor oversold. The STOCH value of 58.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NOTV.
Inotiv Risk Analysis
Inotiv disclosed 42 risk factors in its most recent earnings report. Inotiv reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Inotiv Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
57 Neutral | $52.60M | -101.61 | -2.78% | ― | 30.95% | 59.67% | |
56 Neutral | $124.81M | -1.46 | -1760.83% | ― | 22.29% | 31.93% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $14.20M | -0.32 | -56.22% | ― | -13.84% | 88.80% | |
47 Neutral | $27.10M | -1.17 | 76.82% | ― | 14.48% | 36.83% | |
46 Neutral | $13.10M | -0.95 | 80.66% | ― | -4.35% | -6.31% | |
44 Neutral | $13.40M | -0.17 | -44.77% | ― | 4.54% | 47.11% |
* Healthcare Sector Average
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Inotiv Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Inotiv Secures Targeted Waiver for Short-Term Liquidity Covenants
Negative
Apr 7, 2026
On April 6, 2026, Inotiv, Inc. obtained a waiver from its lenders for the minimum liquidity covenant tied to the April 3, 2026 and April 10, 2026 liquidity test dates under its existing Credit Agreement. The waiver applied only to those specific t...
Private Placements and FinancingRegulatory Filings and Compliance
Inotiv Secures Short-Term Liquidity Covenant Waiver From Lenders
Neutral
Mar 24, 2026
On March 23, 2026, Inotiv, Inc. disclosed that its lenders granted a waiver of the minimum liquidity covenant under its existing Credit Agreement for the liquidity test dates of March 20 and March 27, 2026. The limited waiver, which did not alter ...
Private Placements and FinancingRegulatory Filings and Compliance
Inotiv Secures Temporary Waiver on Credit Agreement Liquidity Covenant
Neutral
Mar 10, 2026
On March 9, 2026, Inotiv, Inc. announced that the lenders under its November 5, 2021 Credit Agreement granted a waiver of the minimum liquidity covenant for the liquidity test dates of March 6, 2026 and March 13, 2026. The waiver is narrowly focus...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.