Inotiv, Inc.

Good day, everyone, and welcome to the Initive First Quarter 2026 Earnings Call. At this time, all participants are in a listen-only mode. Later, there will be a question-and-answer session. You may queue for a question at any time by pressing the star key, followed by the number 1 on your telephone keypad. You may remove yourself from the queue by pressing star 2. Please be advised that today's call is being recorded. We are standing by should you need any assistance. I'd now like to turn the call over to Stephen Halper with LifeSci Advisors. Please go ahead.

Thank you, Jamie, and good morning, everyone. Thank you for joining today's quarterly call with Innotive's management team. Before we begin, I'd like to remind everyone that some of the statements that management will make on this call are considered forward-looking statements, including statements about the company's future operating and financial results and plans. Such statements are subjects to risks and uncertainties that could cause actual performance or achievements to be materially different from those projected. Any such statements represent management expectations as of today's close. You should not place undue reliance on these forward-looking statements, and the company does not undertake any obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise. Please refer to the company's SEC filings for further guidance on this matter. including risks and uncertainties that could cause results to differ from forward-looking statements. Management will also discuss certain non-GAAP financial measures in an effort to provide additional information for investors. Definitions of these non-GAAP measures and reconciliations to the most comparable GAAP measures are included in the company's current and previous earnings releases, which have been posted to the investor section of the company's website, www.initiv.com, and is also available in the form 8K filed with the Securities and Exchange Commission. If you haven't obtained a copy of today's press release yet, you can do so by going to the investor section of Initiv's website. Joining us from the company this morning are Bob Leisure, President and Chief Executive Officer, and Beth Taylor, Chief Financial Officer. John Sagart, Chief Strategy Officer, will join us for the question and answer portion of the call. Bob will begin with some opening comments, after which Beth will present a summary of the company's financial results for our first quarter of 2026, and then we'll open the call for questions. It is now my pleasure to turn the call over to Bob Leisure, CEO. Bob, please go ahead.

Thank you, Steve, and good morning, everyone. During the first quarter of fiscal 2026, despite the usually weaker seasonality, we saw very strong year-over-year revenue growth in our DSA business, with both increased discovery and translational sciences revenue and increased safety assessment revenue, somewhat offset by weak performance of our NHPs and typical seasonal weakness in the rest of our RMS business. We're delighted to see the continued strength in our DSA business, building on several quarters of improvement against a backdrop of generally slow market demand. Q1 of 2026, DSA revenue increased 12% versus the same period last year. Within that, DTS revenues were up 26%, and safety assessment revenues were up 7%. In addition to revenue growth this quarter, we also saw strong growth in net awards, with discovery awards up 44%, safety assessment awards up 22% versus the prior year period. With this, our trailing 12-month DSA awards have increased 34% over the prior 12-month period. This brought our book-to-bill for the quarter to 1.16 to 1 and for the trailing 12 months to 1.08 to 1. The revenue growth in DSA drove our strongest first quarter DSA margins in the last three years. The RMS business continued to be challenging, in particular for NHPs where lower volume sales impacted our RMS revenues and margins compared to last year. We remain on track with our site optimization, transportation, fleet optimization plans, which we believe will be positive for margins in future periods. In connection with the current phase of the RMS site optimization plan, we exited two lease facilities during the first fiscal quarter of 2026, one in October and the second in December. And this phase should be complete by the third quarter of fiscal 2026. Overall, our RMS revenue for the first quarter declined 5.4 percent compared to the prior year quarter. As I noted, this was primarily driven by decreased NHP sales with lower volumes shipped to customers during the quarter. We still expect NHP full-year 2026 revenue to remain flat compared to last year. Despite the lower overall sales in the quarter, we did see growth in RMS services revenue of 13% compared to Q1 of fiscal 2025, mainly due to higher NHP Colony management services revenue. As we disclosed in September, we engaged Prel and Weinberg Partners to provide general financial advisory and investment banking services to assist the company in exploring potential debt refinancing alternatives. We've continued these efforts and remain committed to our goal of refinancing our debt and improving our balance sheet. We will provide any updates at the appropriate time. The company has received a waiver for noncompliance with the financial covenant ratios under our credit agreement for the first quarter of fiscal 2026. We again thank our lenders for their continuing support and working with us. Overall, We're generally pleased with our progress and momentum as it relates to the DSA business and the site optimization and cost reduction initiatives we are implementing for the RMS business. We are continuing to navigate the business trends and macroeconomic factors that are affecting our RMS business. Our focus remains on improving revenue and margins in our DSA business and reducing costs, diversifying our sources of revenue, improving margins in our RMS business. We continue to enhance our new approach methods, or NAMs, strategy in support of FDA guidance and industry expectations for continued innovation. Over the last couple of months, we announced important collaborations that bring state-of-the-art machine learning tools, allowing us to integrate, analyze, and visualize complex data sets, as well as providing us access to disease-relevant human tissue. We believe the offerings we are continuing to build within the NAMM space will allow us to make our customers' discovery efforts increasingly human relevant earlier in the process and help speed their important new medicines to successful registration. Finally, we remain committed to improving our financial performance. To facilitate this, we will continue to focus on client satisfaction and enhance speed and delivery while simultaneously initiating cost reductions, and optimizing our product and services portfolio and operating footprint. I will now hand things over to Beth to provide a financial overview.