INVO Fertility, Inc. (IVF)·Q1 2025 Earnings Summary

Executive Summary

• Q1 2025 revenue grew 4% year over year to $1.64M, with consolidated clinic revenue up 5%; however, the quarter was dominated by a $14.6M non-cash goodwill impairment tied to the NAYA Therapeutics acquisition, driving net loss to $(17.4)M and EPS to $(12.53) .
• Management formally refocused the company on fertility operations, executing initiatives to improve organic clinic growth and pursuing accretive IVF clinic acquisitions to drive toward cash flow break-even and profitability .
• No formal numerical guidance or Wall Street consensus estimates were available for Q1; therefore, no beat/miss analysis can be determined. Estimates coverage from S&P Global was unavailable for IVF this quarter [GetEstimates]*.
• Stock narrative catalysts: refocus on core fertility operations, divestiture of a majority stake in NAYA (completed in Q2), and ongoing clinic expansion and INVOcell commercialization; note liquidity/going-concern risk highlighted in filings may temper sentiment near term .

What Went Well and What Went Wrong

What Went Well

• Consolidated clinic revenue increased 5% YoY to $1.62M, supported by Wisconsin and Atlanta clinics; total revenue rose 4% YoY to $1.64M .
• Management sharpened strategic focus: “we’ve sharpened our focus on our core mission as a fertility company…exploring expansion, with a near-term focus on acquisitions…drive toward…cash flow break-even and profitability” — CEO Steve Shum .
• Segment reporting shows the fertility clinic services segment delivered a small profit ($28.8K) in Q1, indicating operational resiliency amid restructuring .

What Went Wrong

• A $14.65M non-cash goodwill impairment related to NAYA drove total operating expenses to $18.74M and loss from operations to $(17.11)M; net loss widened to $(17.40)M vs $(1.60)M prior year .
• SG&A increased ~77% YoY to $2.55M, largely reflecting the addition of NAYA, and interest expense rose to $0.31M, pressuring profitability and cash flow .
• Liquidity remains constrained: negative working capital (~$17.1M) and going-concern qualification in the prior annual audit; company expects to seek additional debt/equity financing until operations turn cash-flow positive .

Financial Results

Core P&L and EPS vs prior year and sequential trend

Notes:

• Q1 2025 operating expenses include the $14.65M NAYA goodwill impairment .
• Q2 2025 reflects continued operating losses and impairment, but lower magnitude than Q1 .

Adjusted EBITDA (non-GAAP) and fertility-only view

Segment Breakdown (Revenue and Segment Profit/Loss)

KPIs and Operational Metrics

Estimates vs Actuals (Q1 2025)

*Values retrieved from S&P Global; consensus estimates for IVF were unavailable for the quarter.

Guidance Changes

Management emphasized qualitative objectives: refocus on fertility, operational initiatives at clinics, and pursuit of acquisitions to reach cash flow break-even and profitability; no numerical ranges were issued .

Earnings Call Themes & Trends

No Q1 2025 earnings call transcript was located; themes below draw from Q1 8-K and Q2/Q3 earnings releases.

Management Commentary

• “After announcing the divestiture of a majority stake in NAYA TX, we’ve sharpened our focus on our core mission as a fertility company…building on our three established fertility centers, we’re actively exploring expansion, with a near-term focus on acquisitions…drive toward…cash flow break-even and profitability.” — Steve Shum, CEO .
• “We have implemented a series of initiatives at our existing clinics that we believe will help accelerate organic clinic growth in the future.” — Steve Shum, CEO .
• Q2 update: “We have made progress in driving growth and innovation…expanded telehealth…PRP therapy…ramped up training support for INVOcell® technology” — Steve Shum, CEO .

Q&A Highlights

No Q1 2025 earnings call transcript was found; therefore, Q&A highlights and any guidance clarifications are unavailable for this quarter [ListDocuments: earnings-call-transcript returned none].

Estimates Context

• Wall Street consensus estimates from S&P Global for IVF were unavailable for Q1 2025, so a beat/miss assessment cannot be made [GetEstimates]*.
• Given the magnitude of the non-cash impairment and strategic refocus, near-term sell-side coverage may remain limited; adjustments to forward estimates would likely focus on excluding discontinued/impairment items and modeling fertility-only operations .

*Values retrieved from S&P Global.

Key Takeaways for Investors

• Fertility segment is the core economic engine; consolidated clinic revenue grew 5% YoY in Q1, and broader clinic/all-clinics revenue rose, indicating demand resilience despite restructuring .
• Non-cash impairment tied to NAYA severely impacted GAAP results; the fertility-only adjusted EBITDA remained negative but modest relative to consolidated figures, framing the underlying operations .
• Strategic refocus is tangible: NAYA majority stake divested in Q2, operational upgrades (telehealth, PRP therapy), and advancing an acquisition pipeline to scale clinic footprint .
• Liquidity and going-concern risk persist; watch for capital raises, debt refinancings, and the cadence of acquisition closings to bridge to cash flow break-even .
• Policy tailwinds (employer infertility benefits) and INVOcell IP extension through 2040 may support medium-term demand and device monetization .
• Near-term trading implications: stock likely sensitive to financing actions, acquisition announcements, and monthly/redemption terms on outstanding debentures; mitigate headline risk by tracking settlement progress and Nasdaq compliance updates .
• Medium-term thesis: clinic-led growth with INVOcell commercialization upside; execution on acquisitions and operating efficiencies (including AI tooling) are key to the path toward profitability .

References:

• Q1 2025 8-K press release and exhibits:
• Q1 2025 Form 10-Q:
• Q2 2025 8-K press release and financials:
• Q3 2025 8-K press release and financials:
• Estimates: S&P Global consensus unavailable for IVF [GetEstimates]*.