Inotiv, Inc.NOTV
Inotiv, Inc. Segments Disclosure
SEGMENT AND GEOGRAPHIC INFORMATION
We have two reportable segments: DSA and RMS, as disclosed in the segment reporting policy within Note 2 - Basis of Presentation and Summary of Significant Accounting Policies. The reportable segments comprise the structure used by the Company’s Chief Executive Officer, who is the Chief Operating Decision Maker ("CODM"), to make operating decisions and evaluate performance.
The Company’s CODM evaluates the segments' operating results based on operating income (loss). Segment operating income (loss) is the measure of profit or loss regularly provided to and used by the CODM to assess performance and allocate resources (including employees, property, and financial or capital resources). For each segment, the CODM uses segment operating income (loss) in the annual budgeting and monthly forecasting process when comparing to actual results. Segment operating income (loss) is defined as operating income (loss) excluding unallocated corporate expenses, depreciation and amortization of intangible assets, impairment charges, start-up costs, restructuring costs, and other special segment items. Other special segment items include remediation costs, a $28,500 charge in fiscal 2024 in connection with the Resolution Agreement and Plea Agreement, third party and legal costs incurred in connection with the Resolution Agreement and Plea Agreement, $7,550 received in connection with the settlement of a lawsuit in fiscal 2025 and the related legal fees.
Segment Information
During the fiscal years ended September 30, 2025, 2024 and 2023, the RMS segment recognized intersegment revenue of $8,303, $8,006 and $8,793, respectively, related to sales to the DSA segment. The following table presents revenue and other financial information by reportable segment for the fiscal years ended September 30, 2025, 2024 and 2023:
| Fiscal Year Ended September 30, 2025 | Fiscal Year Ended September 30, 2024 | Fiscal Year Ended September 30, 2023 | |||||||||||||||
| Revenue | |||||||||||||||||
| DSA: | |||||||||||||||||
| Service revenue | $ | 183,161 | $ | 175,142 | $ | 180,348 | |||||||||||
| Product revenue | 4,782 | 4,974 | 4,742 | ||||||||||||||
| RMS: | |||||||||||||||||
| Service revenue | 49,705 | 44,521 | 43,465 | ||||||||||||||
| Product revenue | 275,376 | 266,102 | 343,870 | ||||||||||||||
Total revenue | $ | 513,024 | $ | 490,739 | $ | 572,425 | |||||||||||
| Measure of Segment Operating Income | |||||||||||||||||
| DSA: | |||||||||||||||||
Revenue | $ | 187,943 | $ | 180,116 | $ | 185,090 | |||||||||||
| Cost of revenue (excluding depreciation and amortization of intangible assets) | 138,214 | 127,216 | 114,837 | ||||||||||||||
| Selling, general and administrative expenses | 19,737 | 21,159 | 30,385 | ||||||||||||||
| Other segment operating expenses | 1,447 | 1,434 | 1,296 | ||||||||||||||
| DSA segment operating income | $ | 28,545 | $ | 30,307 | $ | 38,572 | |||||||||||
| RMS: | |||||||||||||||||
Revenue | 325,081 | 310,623 | 387,335 | ||||||||||||||
| Cost of revenue (excluding depreciation and amortization of intangible assets) | 253,830 | 252,352 | 275,647 | ||||||||||||||
| Selling, general and administrative expenses | 14,640 | 14,291 | 23,450 | ||||||||||||||
| Other segment operating expenses | 149 | — | — | ||||||||||||||
| RMS segment operating income | $ | 56,462 | $ | 43,980 | $ | 88,238 | |||||||||||
| Reconciliation of segment operating income to loss before income taxes | |||||||||||||||||
| Total segment operating income | 85,007 | 74,287 | 126,810 | ||||||||||||||
| Unallocated corporate expenses (1) | 59,090 | 62,537 | 71,173 | ||||||||||||||
| Depreciation and amortization of intangible assets | 55,928 | 57,118 | 54,717 | ||||||||||||||
| Goodwill impairment loss (2) | — | — | 66,367 | ||||||||||||||
| Startup costs | 2,282 | 3,278 | 6,858 | ||||||||||||||
| Restructuring costs | 1,454 | 3,374 | 4,625 | ||||||||||||||
| Other special segment items (3) | (2,845) | 34,386 | 4,530 | ||||||||||||||
| Operating loss | (30,902) | (86,406) | (81,460) | ||||||||||||||
| Interest expense | (56,593) | (46,884) | (43,019) | ||||||||||||||
| Other income | (273) | 2,530 | 237 | ||||||||||||||
| Loss before income taxes | $ | (87,768) | $ | (130,760) | $ | (124,242) | |||||||||||
(1) Unallocated corporate expenses include salaries and benefits costs, stock-based compensation expense, corporate legal fees, consolidated audit fees, other professional fees, general product and liability insurance and corporate IT costs, and exclude depreciation. During the fiscal years ended September 30, 2025, 2024 and 2023, $6,028, $6,740 and $7,844, respectively, of non-cash stock-based compensation expense was reflected in unallocated corporate expenses.
(2) Refer to Note 5 - Goodwill and Intangible Assets for further discussion of the goodwill impairment charge in fiscal year 2023.
(3) Other special segment items for the fiscal year ended September 30, 2025 primarily relate to the FNI Settlement Agreement (as defined in Note 9 - Other Operating Expense) and related legal fees, and third party and legal fees associated with the Resolution Agreement and Plea Agreement (as defined in Note 15 - Contingencies and Commitments). Other special segment items for the fiscal year ended September 30, 2024 primarily relate to the $28,500 charge associated with the Resolution Agreement and Plea Agreement (as defined in Note 15 - Contingencies and Commitments) and associated legal fees. Other special segment items for the fiscal year ended September 30, 2023 primarily relate to remediation costs associated with wastewater removal prior to the completion of the FNI Settlement Agreement (as defined in Note 9 - Other Operating Expense) and legal fees associated with the process of completing the Resolution Agreement and Plea Agreement.
Capital expenditures and depreciation and amortization of intangible assets by reportable segment are as follows:
| Fiscal Year Ended September 30, 2025 | Fiscal Year Ended September 30, 2024 | Fiscal Year Ended September 30, 2023 | |||||||||||||||
| Depreciation and amortization: | |||||||||||||||||
| DSA | $ | 17,979 | $ | 17,865 | $ | 16,371 | |||||||||||
| RMS | 37,241 | 38,614 | 38,288 | ||||||||||||||
| Unallocated Corporate | 708 | 639 | 58 | ||||||||||||||
| $ | 55,928 | $ | 57,118 | $ | 54,717 | ||||||||||||
| Capital expenditures: | |||||||||||||||||
| DSA | $ | 2,536 | $ | 5,679 | $ | 13,314 | |||||||||||
| RMS | 14,079 | 16,631 | 14,189 | ||||||||||||||
| $ | 16,615 | $ | 22,310 | $ | 27,503 | ||||||||||||
The following represents total assets by segment:
| As of September 30, | As of September 30, | ||||||||||
| 2025 | 2024 | ||||||||||
| DSA | $ | 266,838 | $ | 267,576 | |||||||
| RMS | 504,276 | 513,785 | |||||||||
| $ | 771,114 | $ | 781,361 | ||||||||
Geographic Information
The following represents revenue originating in entities physically located in the identified geographic area:
| Fiscal Year Ended September 30, 2025 | Fiscal Year Ended September 30, 2024 | Fiscal Year Ended September 30, 2023 | |||||||||||||||
| United States | $ | 447,983 | $ | 419,104 | $ | 482,630 | |||||||||||
| Netherlands | 35,479 | 44,694 | 54,088 | ||||||||||||||
| Other | 29,562 | 26,941 | 35,707 | ||||||||||||||
| $ | 513,024 | $ | 490,739 | $ | 572,425 | ||||||||||||
Long-lived assets shown below include property and equipment, net. The following represents long-lived assets where they are physically located:
| As of September 30, | As of September 30, | ||||||||||
| 2025 | 2024 | ||||||||||
| United States | $ | 160,343 | $ | 167,772 | |||||||
| Netherlands | 7,038 | 7,159 | |||||||||
| Other | 13,345 | 13,397 | |||||||||
| $ | 180,726 | $ | 188,328 | ||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Dec 5, 2025 | Showing above |
| 2024 | Dec 4, 2024 | |
| 2023 | Dec 12, 2023 | |
| 2022 | Jan 13, 2023 | |
| 2021 | Dec 21, 2021 | |
| 2020 | Dec 22, 2020 | |
| 2019 | Dec 26, 2019 | |
| 2018 | Dec 21, 2018 | |
| 2017 | Dec 22, 2017 | |
| 2016 | Dec 28, 2016 | |
| 2015 | Dec 24, 2015 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.