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

Executive Summary

• Q1 2025 delivered modest top-line growth but a material GAAP loss driven by the NAYA Therapeutics impairment: revenue rose 4% year over year to $1.64M, while net loss widened to $(17.4)M due to a $14.6M non-cash impairment tied to NAYA TX and $1.3M operating losses from NAYA TX .
• The company sharpened its strategic focus on fertility operations, announcing plans on April 14 to divest a majority stake in NAYA TX and rebrand as INVO Fertility, with the Nasdaq ticker later changed to IVF; management highlighted acquisitions and clinic optimization as key growth levers .
• Adjusted EBITDA for the fertility business was $(0.61)M vs $(0.43)M in Q1 2024; consolidated clinic revenue rose 5% to $1.62M on stable operations in Atlanta and Madison .
• Near-term narrative: refocus, operational efficiency, and M&A pipeline to move toward cash flow break-even; stock catalysts relate to completing the NAYA TX separation and executing accretive clinic acquisitions .

What Went Well and What Went Wrong

What Went Well

• Consolidated clinic revenue increased 5% to $1.62M, indicating stable patient flow at Atlanta and Madison clinics despite organizational changes .
• Management reiterated a clear strategic pivot to fertility and acquisition-led expansion: “we’re actively exploring expansion, with a near-term focus on acquisitions… drive toward our key objective of reaching cash flow break-even and profitability” .
• Policy tailwinds and market need support the thesis (“decline in U.S. fertility rates and growing demand for accessible fertility solutions”) underpinning the clinic platform strategy .

What Went Wrong

• GAAP net loss expanded to $(17.4)M on a $14.6M non-cash impairment and $1.3M NAYA TX operating losses; Adjusted EBITDA (fertility) deteriorated to $(0.61)M from $(0.43)M a year ago .
• SG&A and cost of revenue rose sharply (SG&A $2.55M vs $1.44M; cost of revenue $1.04M vs $0.85M), pressuring margins and delaying cash flow breakeven .
• Non-GAAP adjustments were sizable due to legacy NAYA TX impacts and transaction/merger-related costs ($0.22M), increasing complexity in interpreting core clinic performance .

Financial Results

Core P&L vs prior year and prior quarter

Notes:

• Q1 2025 net loss includes $14.6M non-cash impairment tied to NAYA TX .

Segment and revenue composition

Operating cost items

Non-GAAP reconciliation highlights

Guidance Changes

Management reiterated strategic objectives (clinic optimization, M&A pipeline, cash flow breakeven focus) but did not provide quantitative guidance ranges .

Earnings Call Themes & Trends

(Company did not publish an earnings call transcript for Q1 2025; themes derived from press releases and filings)

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… coupled with a highly efficient and scalable operating structure, should allow us to drive toward our key objective of reaching cash flow break-even and profitability” — Steve Shum, CEO .
• “Company now exclusively focused on the growing fertility market… building on our three established fertility centers, we’re actively exploring expansion, with a near-term focus on acquisitions” .
• Prior quarter framing: “We achieved record revenue during 2024 of $6.5 million… dramatically streamlined and improved our fertility-based operating structure” — Steve Shum (Q4 2024 PR) .

Q&A Highlights

No Q1 2025 earnings call transcript or Q&A materials were found in company filings or press releases during the period [Search attempted, none found].

Estimates Context

• Wall Street consensus estimates via S&P Global for IVF were not available for Q1 2025 (EPS/Revenue consensus and counts not populated), indicating very limited external coverage. MarketBeat also reflected “Consensus EPS: N/A” alongside announcement detail for later quarters [GetEstimates result empty; see ].
• As a result, beats/misses versus consensus cannot be determined for Q1 2025.

Key Takeaways for Investors

• The quarter’s GAAP loss was overwhelmingly driven by a one-time, non-cash impairment related to the NAYA TX assets; stripped of NAYA impacts, the fertility Adjusted EBITDA remained negative, underscoring a need for operating leverage and cost discipline to reach breakeven .
• Clinic performance was resilient: consolidated clinic revenue up 5% and “all clinics” revenue up 4%, suggesting demand stability and potential for incremental growth via operational initiatives .
• Strategic separation and rebrand to IVF reduce business complexity and sharpen investor focus; completing the NAYA TX divestiture and avoiding further non-cash charges are near-term derisking catalysts .
• Execution on acquisitions is pivotal: accretive clinic deals with prudent financing could accelerate revenue scale and reduce unit costs; watch for Q2/Q3 cadence and any updated financing plans (Q2 PR indicated progress on service expansion and patent allowance) .
• Operating expense intensity (SG&A, cost of revenue) needs targeted reduction and throughput gains; margin recovery will be the key monitor to validate the operating model’s scalability .
• With sparse sell-side coverage, narrative-driven catalysts (transaction closing, M&A, operational KPIs from clinics) may disproportionately move the stock near-term; absence of guidance increases event dependence .
• Policy tailwinds and increased IVF access remain supportive, but the investment case hinges on consistent clinic-level growth and disciplined cost control translating into positive Adjusted EBITDA and cash generation .

Additional References (Q1 2025 and prior period context)

• Q1 2025 earnings press release (8-K Exhibit 99.1): revenue, impairment, Adjusted EBITDA details .
• Strategic separation announcement and rebrand (Apr 14, 2025) and ticker change to IVF (Apr 24, 2025) .
• Q4 2024 press release (8-K Exhibit 99.1): revenue, clinic revenue, Adjusted EBITDA (fertility) .
• Q2 2025 press release (Aug 14, 2025): incremental operational highlights and record quarterly revenue .