Intellinetics Reports First Quarter Financial Results

Published: 2026-05-14 16:08:04 ET INLX

Published on 05/14/2026 at 04:08 pm EDT

Intellinetics, Inc. (NYSE American: INLX), a digital transformation solutions provider, announced financial results for the three months ended March 31, 2026, the first quarter of 2026.

2026 First Quarter Financial Highlights

Alison Forsythe, President & CEO of Intellinetics, stated: “I am now 90 days into the role as CEO of Intellinetics and I feel even more confident in our ability to grow our SaaS business. Our products offer great value to the user, are highly sticky within customer workflows, and address attractive market opportunities. Based on what I have seen in my first 90 days, I believe we can deliver double digit year over year SaaS growth in 2026 over 2025.”

“Having joined Intellinetics in mid-February, my initial focus has been on evaluating the business, meeting with employees, customers, and partners, and assessing our operational and go-to-market priorities. While first quarter results reflect variability in professional services revenue and margins, my early assessment confirms the conclusions reached during the extensive diligence process completed before I accepted this role: Intellinetics has a differentiated technology platform, long-standing customer relationships, and significant opportunities to expand our SaaS and software business in targeted vertical markets.”

“In my first several weeks with the Company, it has become increasingly clear that there are significant opportunities to improve execution, operational consistency, predictability, and overall go-to-market effectiveness across the organization. We are moving quickly to strengthen alignment, improve operating discipline, and better position the business for scalable long-term growth.”

“Our software platform and recurring revenue business remain the core of our long-term strategy. Looking ahead, our focus is centered on accelerating SaaS growth, improving execution consistency and predictability, and aligning investments and resources around our highest-priority growth opportunities.”

Summary – 2026 First Quarter Results

Revenues for the three months ended March 31, 2026 were $3,909,182, a decrease of 8.0%, as compared with $4,247,345 for the same period in 2025. This decrease was primarily due to a 14.3% decline in professional services revenue.

Total operating expenses increased 4.4% to $3,664,611, compared to $3,511,759 for the same period in 2025, driven by increases in general and administrative expense of 9.1%, due to non-recurring expenses in Q1 related to our CEO transition, totaling $430,130, including severance costs and share-based compensation for our retiring CEO, overlapping compensation expenses for our prior and current CEO in the quarter, and recruiting costs for our new CEO, partially offset by reduced share-based compensation expense for other employees. Loss from operations was $1,182,552 compared to loss from operations of $684,559 in the first quarter last year, primarily due to the lower professional services revenues and non-recurring CEO transition costs.

Intellinetics reported net loss of $1,177,853 compared to net loss of $727,565 for the same period in 2025. Basic and diluted net loss per share for the three months ended March 31, 2026 was $0.27, compared to $0.17 net loss per basic and diluted share for the first quarter 2025. Adjusted EBITDA loss was $287,650 compared to Adjusted EBITDA profit of $76,589 in 2025.

For the quarters ended March 31,

2026

2025

Revenues:

Software as a service

1,543,847

1,542,169

Software maintenance services

296,393

335,191

Professional services

1,850,163

2,158,315

Storage and retrieval services

218,779

211,670

Total revenues

3,909,182

4,247,345

2026 Outlook

Management remains focused on accelerating SaaS growth and currently expects double-digit year-over-year SaaS growth for fiscal 2026.

Conference Call

Intellinetics is holding a conference call to discuss these results on a live webcast at 4:30 p.m. ET today. Interested parties can access the webcast through the Intellinetics website at https://ir.intellinetics.com/. Investors can also dial in to the webcast by calling (877) 407-8133 (toll-free) or (201) 689-8040. A replay of the call can also be accessed via phone through June 13, 2026 by dialing (877) 660-6853 (toll-free) or (201) 612-7415 and using replay access code 13760619.

About Intellinetics, Inc.

Intellinetics, Inc. (NYSE American: INLX) is enabling the digital transformation. Intellinetics empowers organizations to manage, store and protect their important documents and data. The Company’s flagship solution, the IntelliCloud™ content management platform, delivers advanced security, compliance, workflow and collaboration features critical for highly regulated, risk-intensive markets. IntelliCloud connects documents to users and the processes they support anytime, anywhere to accelerate innovation and empower organizations to think and work in new ways. In addition, Intellinetics offers business process outsourcing (BPO), document and micrographics scanning services, and records storage. From highly regulated industries like Healthcare/Human Service Providers, K-12, Public Safety, and State and Local Governments, to businesses looking to move away from paper-based processes, Intellinetics is the all-in-one, compliant, document management solution. Intellinetics is headquartered in Columbus, Ohio. For additional information, please visit www.intellinetics.com.

Cautionary Statement

Statements in this press release which are not purely historical, including statements regarding future business; opportunities to expand our software and SaaS business; improved revenue predictability; expanded margins; predictable and sustainable growth, including the growth of SaaS business; future revenues, including the “2026 Outlook” for revenues; improved business execution and go-to-market approach; execution of our business plan, strategy, direction and focus; and other intentions, beliefs, expectations, representations, projections, plans or strategies regarding future growth, financial results, and other future events are forward-looking statements. The forward-looking statements involve risks and uncertainties including, but not limited to, the risks associated with the effect of changing economic conditions including inflationary pressures, challenges with hiring and maintaining a stable workforce, our ability to execute on our business plan and strategy including our transition to a SaaS-based company, customary risks attendant to trends in the products markets, variations in Intellinetics’ cash flow or adequacy of capital resources, market acceptance risks, the success of Intellinetics’ solutions providers, including human services, health care, and education, technical development risks, and other risks, uncertainties and other factors discussed from time to time in its reports filed with or furnished to the Securities and Exchange Commission, including in Intellinetics’ most recent annual report on Form 10-K as well as subsequently filed reports on Form 8-K. Intellinetics cautions investors not to place undue reliance on the forward-looking statements contained in this press release. Intellinetics disclaims any obligation and does not undertake to update or revise any forward-looking statements in this press release. Expanded and historical information is made available to the public by Intellinetics on its website at www.intellinetics.com or at www.sec.gov.

Non-GAAP Financial Measures

Intellinetics uses non-GAAP Adjusted EBITDA as supplemental measures of our performance that are not required by, or presented in accordance with, accounting principles generally accepted in the United States (GAAP). A non-GAAP financial measure is a numerical measure of a company's financial performance that excludes or includes amounts so as to be different from the most directly comparable measure calculated and presented in accordance with GAAP in the statement of income, balance sheet or statement of cash flows of a company.

Adjusted EBITDA: Adjusted EBITDA is not a measurement of financial performance under GAAP and should not be considered as an alternative to net income, operating income, or any other performance measure derived in accordance with GAAP, or as an alternative to cash flow from operating activities or a measure of our liquidity. Intellinetics urges investors to review the reconciliation of non-GAAP Adjusted EBITDA to the comparable GAAP Net Income, which is included in this press release, and not to rely on any single financial measure to evaluate Intellinetics’ financial performance.

We believe that Adjusted EBITDA is a useful performance measure and is used by us to facilitate a comparison of our operating performance on a consistent basis from period-to-period and to provide for a more complete understanding of factors and trends affecting our business than measures under GAAP can provide alone. We define “Adjusted EBITDA” as earnings before interest (income) expense, any income taxes, depreciation and amortization expense, non-cash share-based compensation, transaction costs, and CEO transition one-time costs (including overlapping wages and benefits, recruiting costs, legal costs, and severance costs including share-based compensation).

Reconciliation of Net Loss to Adjusted EBITDA

For the Three Months Ended March 31,

2026

2025

Net loss – GAAP

(1,177,853

)

(727,565

)

Interest (income) expense, net

(4,699

)

43,006

Depreciation and amortization

302,881

307,685

Share-based compensation, non-cash, excluding CEO transition

161,891

453,463

CEO transition costs, including share-based compensation, non-cash

430,130

Adjusted EBITDA

(287,650

)

76,589

INTELLINETICS, INC. and SUBSIDIARIES

Consolidated Balance Sheets

(unaudited)

March 31,

December 31,

2026

2025

ASSETS

Current assets:

Cash

2,076,124

2,528,281

Accounts receivable, net

1,195,887

1,239,802

Accounts receivable, unbilled

821,545

909,574

Parts and supplies, net

130,425

173,295

Prepaid expenses and other current assets

487,839

378,305

Total current assets

4,711,820

5,229,257

Property and equipment, net

1,030,555

1,092,694

Right of use assets, operating

1,184,362

1,394,806

Right of use assets, finance

146,812

164,998

Intangible assets, net

2,798,327

2,906,188

Goodwill

5,789,821

Other assets

798,592

727,808

Total assets

16,460,289

17,305,572

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

528,016

284,680

Accrued compensation

889,788

410,368

Accrued expenses

257,475

199,995

Lease liabilities, operating - current

596,747

721,879

Lease liabilities, finance - current

65,461

67,935

Deferred revenues

2,901,457

3,371,263

Total current liabilities

5,238,944

5,056,120

Long-term liabilities:

Lease liabilities, operating - net of current portion

653,361

749,346

Lease liabilities, finance - net of current portion

100,177

116,090

Total long-term liabilities

753,538

865,436

Total liabilities

5,992,482

5,921,556

Stockholders’ equity:

Common stock, $0.001 par value, 25,000,000 shares authorized; 4,474,272 and 4,479,123 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively

4,474

4,479

Additional paid-in capital

35,155,319

34,893,670

Accumulated deficit

(24,691,986

)

(23,514,133

)

Total stockholders’ equity

10,467,807

11,384,016

Total liabilities and stockholders’ equity

16,460,289

17,305,572

INTELLINETICS, INC. and SUBSIDIARIES

Consolidated Statements of Income

(Unaudited)

For the Three Months Ended March 31,

2026

2025

Revenues:

Software as a service

1,543,847

1,542,169

Software maintenance services

296,393

335,191

Professional services

1,850,163

2,158,315

Storage and retrieval services

218,779

211,670

Total revenues

3,909,182

4,247,345

Cost of revenues:

Software as a service

256,956

215,129

Software maintenance services

12,392

16,365

Professional services

1,111,449

1,082,006

Storage and retrieval services

46,326

106,645

Total cost of revenues

1,427,123

1,420,145

Gross profit

2,482,059

2,827,200

Operating expenses:

General and administrative

2,853,727

2,615,746

Sales and marketing

508,003

588,328

Depreciation and amortization

302,881

307,685

Total operating expenses

3,664,611

3,511,759

Loss from operations

(1,182,552

)

(684,559

)

Interest income (expense), net

4,699

(43,006

)

Net loss

(1,177,853

)

(727,565

)

Basic net loss per share:

(0.27

)

(0.17

)

Diluted net loss per share:

(0.27

)

(0.17

)

Weighted average number of common shares outstanding - basic

4,393,206

4,261,833

Weighted average number of common shares outstanding - diluted

4,393,206

4,261,833

INTELLINETICS, INC. and SUBSIDIARIES

Consolidated Statements of Cash Flows

(Unaudited)

For the Three Months Ended March 31,

2026

2025

Cash flows from operating activities:

Net loss

(1,177,853

)

(727,565

)

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization

302,881

307,685

Bad debt expense

20,487

29,126

Loss on disposal of fixed assets

5,706

Amortization of deferred financing costs

10,513

Amortization of right of use assets, financing

18,186

Share-based compensation

263,316

453,463

Changes in operating assets and liabilities:

Accounts receivable

23,428

(304,795

)

Accounts receivable, unbilled

88,029

311,827

Parts and supplies

42,870

(6,746

)

Prepaid expenses and other current assets

(109,534

)

(30,127

)

Accounts payable and accrued expenses

780,236

302,687

Operating lease assets and liabilities, net

(10,673

)

(6,351

)

Deferred revenues

(469,806

)

(473,962

)

Total adjustments

949,420

617,212

Net cash used in operating activities

(228,433

)

(110,353

)

Cash flows from investing activities:

Capitalization of internal use software

(178,700

)

(102,854

)

Purchases of property and equipment

(24,965

)

(121,080

)

Net cash used in investing activities

(203,665

)

(223,934

)

Cash flows from financing activities:

Principal payments on financing lease liability

(18,387

)

(16,694

)

Payments to taxing authorities in connection with shares directly withheld from employees

(1,672

)

Exercise of stock warrants

(12

)

Net cash used in financing activities

(20,059

)

(16,706

)

Net decrease in cash

(452,157

)

(350,993

)

Cash - beginning of period

2,528,281

2,489,236

Cash - end of period

2,076,124

2,138,243

Supplemental disclosure of cash flow information:

Cash paid during the period for interest

40,185

Cash paid during the period for income taxes

28,027

11,094

Supplemental disclosure of non-cash financing activities:

Right-of-use asset obtained in exchange for operating lease liability

43,430

View source version on businesswire.com: https://www.businesswire.com/news/home/20260514656749/en/