Okay, let's polish this Inotiv annual review and get it ready for investors!

Inotiv, Inc. Annual Report - How They Did This Year

Hey there! So, you're thinking about investing in Inotiv, Inc., or maybe you already have. Let's break down how they did this past year in a way that's easy to understand. Think of it like I'm explaining it to you over coffee.

1. What does this company do and how did they perform this year?

Okay, so Inotiv is basically a company that helps other companies (mainly in the pharmaceutical and biotech industries) develop new drugs and therapies. They do this by providing services like testing, research, and manufacturing. Think of them as a support system for drug development. They've been around since 1975, and you can find them on the stock market under the ticker "NOTV."

This year, the key is whether they helped more companies develop drugs than last year, and if those services brought in more money. Did they expand their services? Did they acquire other companies that added to their capabilities? We'll dig into the specifics later, but the big question is: did their business get bigger and better, or did it stay the same or even shrink?

2. How much money did they make and is the business growing or shrinking?

This is where we look at the numbers. We're talking about revenue (how much money they brought in from sales) and profit (how much money they kept after paying all the bills).

Here's the deal: In fiscal year 2025, Inotiv brought in $513 million in revenue. That's up from $490.7 million the year before. However, they lost $30.9 million this year, which is actually better than the $86.4 million they lost last year. So, they're making more money, but still not profitable, although they are losing less money than before. We'll also look at their "earnings per share" (EPS), which tells us how much profit each share of stock represents.

3. What were the biggest wins and challenges this year?

Every company has good news and bad news. What were Inotiv's highlights? Did they land a big new client? Did they develop a new, valuable service? On the flip side, what challenges did they face? Did they lose a major client? Did they have trouble with their operations? Understanding both the wins and the challenges gives us a more complete picture of the year.

4. How do their finances look - are they healthy or struggling?

Think of this as checking the company's bank account and credit score. We'll look at things like their debt (how much money they owe) and their cash on hand (how much money they have readily available).

As of September 30, 2025, they had about $21.7 million in cash. They also have access to a line of credit, but they've already borrowed $3 million from it. The good news is they're currently meeting all the requirements of their loan agreement.

Here's the not-so-good news: There's "substantial doubt" about whether Inotiv can continue as a "going concern." In plain English, this means there's a real risk they might not be able to stay in business. They're working on a plan to cut costs and increase revenue, especially from their NHP (non-human primate) business. They believe this plan, along with their current cash, will be enough to keep them going for the next 12 months. However, they're forecasting that they won't meet the requirements of their loan agreement. They have a grace period to fix this, and they're talking to their lenders about potential solutions, like refinancing their debt. But there's no guarantee they'll be able to work something out. This is a major risk to keep in mind.

5. What are the main risks that could hurt the stock price?

Every investment has risks. What could go wrong for Inotiv? Maybe there are new regulations that could make their services more expensive. Maybe a competitor is offering similar services at a lower price. Maybe the pharmaceutical industry as a whole is facing a slowdown. We need to understand these risks so we can decide if we're comfortable taking them.

One thing to keep an eye on is cybersecurity. They have a Vice President of Information Security who keeps the CTO updated weekly and briefs the Executive Committee and Board regularly on security issues. The Board's Audit Committee also oversees cybersecurity risk management.

The biggest risk right now is their ability to stay in business. As mentioned above, there's "substantial doubt" about their ability to continue as a going concern. This is tied to their debt and their ability to meet the requirements of their loan agreement. If they can't refinance their debt or improve their financial performance, they could face serious problems.

6. How do they compare to their competitors this year?

The company didn't provide much detail about this in their annual report.

7. Are there any major changes in leadership or strategy?

The company didn't provide much detail about this in their annual report.

8. What should investors expect going forward?

The company didn't provide much detail about this in their annual report.

9. Any major market trends or regulatory changes affecting them?

The company didn't provide much detail about this in their annual report.

Okay, that's the overview. Now, let's dive into the details! We'll break down each of these points with real numbers and examples so you can make an informed decision about whether or not to invest in Inotiv.

Key Takeaways for Investors:

• Revenue is up: Inotiv is bringing in more money than last year.
• Still not profitable: They're still losing money, but the losses are smaller than before.
• Major financial risk: There's a real risk they might not be able to stay in business due to debt and loan agreement issues. This is a huge red flag.
• Limited Transparency: This company provided limited details in their annual report, which might indicate less transparency for investors.

In Conclusion:

Inotiv is in a tricky situation. While revenue is growing, the "going concern" warning is a serious concern. Investors need to carefully weigh the potential for growth against the very real risk of financial distress. Do your homework and consider whether you're comfortable with this level of risk before investing.