Intellinetics to Host Fourth Quarter and Full Year 2025 Financial Results Conference Call on March 30 Intellinetics to Host Fourth Quarter and Full Year 2025 Financial Results Conference Call on March 30 Share COLUMBUS--(BUSINESS WIRE)--Intellinetics, Inc. (NYSE American: INLX), a digital transformation solutions provider, today announced that it will report its financial results for the fourth quarter and full year 2025 ended December 31, 2025 after the market closes on Monday, March 30, 2026. Management w ...

Core Insights - Intellinetics, Inc. will showcase its Accounts Payable (AP) Intelligence Program for homebuilders at the 2026 NAHB International Builders' Show, highlighting its role in digital transformation solutions [1] Company Overview - Intellinetics, Inc. is a provider of SaaS and document conversion services, focusing on secure, scalable automation and document management solutions for regulated and resource-constrained organizations [5] - The company aims to enhance decision-making by connecting information, processes, and people through AI-powered technologies [5] Product Details - The AP Intelligence Program utilizes AI to analyze historical AP transaction data, providing tailored business insights, quantifying inefficiencies, identifying risks, and forecasting financial impacts [2] - The program was first introduced at the Build Smarter 2025 User Conference, receiving positive feedback and increased executive engagement [3] Strategic Focus - The launch of the AP Intelligence Program in the homebuilder segment aligns with market demand for cost reduction and risk mitigation, establishing a scalable go-to-market model [4] - The program emphasizes data-driven analysis to improve executive engagement, accelerate decision-making, and position the solution as a long-term strategic asset [4]

Core Viewpoint - Intellinetics, Inc. has successfully launched an AI-powered Intelligent Data Processing solution aimed at enhancing efficiency in the K-12 Education sector by automating the handling of AP Invoices [1] Group 1: Company Developments - The new solution eliminates paper and manual steps in the scanning, capture, indexing, and filing processes for school districts [1] - It automates the approval process, thereby improving transparency and audit capabilities within educational institutions [1]

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - Olema Pharmaceuticals, Inc. (OLMA) has seen a substantial increase of 213%, trading at $26.68 - Diginex Limited (DGNX) is up 12%, currently priced at $15.25 - Gorilla Technology Group Inc. (GRRR) has risen by 11%, trading at $14.05 - Amer Sports, Inc. (AS) is up 9%, priced at $33.47 - Click Holdings Limited (CLIK) has increased by 9%, trading at $7.38 - Beamr Imaging Ltd. (BMR) is up 9%, currently at $2.14 - James Hardie Industries plc (JHX) has risen by 8%, trading at $18.22 - Arvinas, Inc. (ARVN) is up 8%, priced at $12.00 - Axalta Coating Systems Ltd. (AXTA) has increased by 7%, trading at $30.28 - Genprex, Inc. (GNPX) is up 6%, currently at $4.31 [3] Premarket Losers - LifeMD, Inc. (LFMD) has decreased by 22%, trading at $3.65 - Alpha Technology Group Limited (ATGL) is down 21%, currently priced at $17.00 - Intellinetics, Inc. (INLX) has fallen by 19%, trading at $7.25 - Energizer Holdings, Inc. (ENR) is down 16%, priced at $20.00 - Invivyd, Inc. (IVVD) has decreased by 14%, currently at $2.42 - BellRing Brands, Inc. (BRBR) is down 12%, trading at $22.30 - Sadot Group Inc. (SDOT) has fallen by 9%, currently priced at $3.99 - CEVA, Inc. (CEVA) is down 8%, trading at $21.60 - Helmerich & Payne, Inc. (HP) has decreased by 7%, currently at $25.44 - Opendoor Technologies Inc. (OPEN) is down 5%, trading at $7.39 [4]

Core Insights - Intellinetics, Inc. (INLX) reported a quarterly loss of $0.08 per share, which was better than the Zacks Consensus Estimate of a loss of $0.10, representing an earnings surprise of +20.00% [1] - The company posted revenues of $4 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 7.38% and down from $4.59 million a year ago [2] - Intellinetics shares have declined approximately 33.2% year-to-date, contrasting with the S&P 500's gain of 16.4% [3] Financial Performance - Over the last four quarters, Intellinetics has surpassed consensus EPS estimates two times [2] - The current consensus EPS estimate for the upcoming quarter is -$0.10 on revenues of $4.46 million, and for the current fiscal year, it is -$0.50 on revenues of $17.03 million [7] Industry Outlook - The Zacks Industry Rank for Internet - Content is currently in the bottom 16% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment [5]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 decreased by 12.8% to $4.0 million compared to $4.6 million in Q3 2024 [10] - SaaS revenue grew by 14.6% to $1.6 million, driven by early payables automation successes [10] - Professional services revenue decreased by 28% to $1.9 million, contributing to a net loss of $370,000, an improvement from a net loss of $393,000 in the same period last year [10][12] - Adjusted EBITDA for the quarter was $105,000, down from $480,000 in Q3 2024, primarily due to reduced professional services revenue [12] Business Line Data and Key Metrics Changes - SaaS revenue, including hosting, increased to $1.6 million, while software maintenance services decreased by 11.9% to $0.3 million [10] - Professional services revenue constituted 48% of total revenue, down from 57% the previous year [11] - Storage and retrieval services showed strong margins at 71%, up from 50.6% last year, due to price increases [11] Market Data and Key Metrics Changes - The company is experiencing a recovery in professional services revenue following the renewal of a large state contract [4] - The K-12 education market is showing positive momentum, with 31 new SaaS deals closed recently [8] - Homebuilders, despite a tough year, are expected to contribute to SaaS revenue growth [6] Company Strategy and Development Direction - The company aims to build a longer backlog while expanding other revenue streams, particularly in storage and retrieval services [5] - AI is being integrated into development and sales efforts, enhancing product offerings and customer engagement [6] - The strategy includes reinvesting cash flow into sales and marketing to drive growth and attract new investors [43] Management's Comments on Operating Environment and Future Outlook - Management expects 2025 revenues to be lower than 2024 due to professional services weakness but anticipates SaaS revenue growth [14] - The company is optimistic about fourth quarter SaaS revenues exceeding those of Q4 2024 and fiscal year 2026 SaaS revenues surpassing 2025 [15] - Management highlighted a strong competitive position and diverse solutions with ample cross-selling opportunities [42] Other Important Information - The company has maintained a strong gross margin of 64.2%, up from 59.8% last year, driven by a favorable revenue mix [11] - Cash on hand as of September 30, 2025, was $3.2 million, with no debt on the balance sheet [12][13] Q&A Session Summary Question: What kind of ARR are we looking at for the K-12 deals? - The K-12 deals will drive over $100,000 in annual ARR, with potential for significant growth as the company gains access to more customers through partnerships [21][22] Question: Are homebuilders willing to expand beyond payables into other modules? - There is interest from customers in expanding into document management systems, indicating potential for cross-selling [25][26] Question: Will there be any churn in SaaS revenue? - The company has historically experienced low churn rates, around 5%, and expects net growth despite some churn [36][40]

Financial Performance - Revenues for Q3 2025 were $4,001,445, a decrease of 12.8% year-over-year, while revenues for the nine-month period were $12,259,603, down 10.8% year-over-year[95]. - SaaS revenues increased to $1,608,253 in Q3 2025, reflecting a growth of 14.6% year-over-year, and for the nine-month period, SaaS revenues reached $4,727,526, up 12.3% year-over-year[95][101]. - The Document Management segment generated $2,017,087 in Q3 2025, compared to $1,913,116 in Q3 2024, while the Document Conversion segment saw revenues drop to $1,984,358 from $2,676,509 in the same period[100]. - The net loss for Q3 2025 was $369,765, with a basic and diluted net loss per share of $0.08, compared to a net loss of $392,850 and a loss per share of $0.09 in Q3 2024[95]. - The company experienced a loss from operations of $1,572,261 for the nine-month period 2025, compared to a loss of $160,585 for the same period in 2024[99]. Operating Expenses - Operating expenses (excluding cost of revenues) for Q3 2025 were $2,947,128, a decrease of 3.2% year-over-year[95]. - Total operating expenses for Q3 2025 were $2,947,128, a decrease from $3,044,312 in Q3 2024, while total operating expenses for the nine-month period 2025 were $9,645,063, an increase from $8,756,898 in the nine-month period 2024[110]. - General and administrative expenses decreased by $38,376, or 1.9%, in Q3 2025 compared to Q3 2024, but increased by $473,142, or 7.7%, in the nine-month period 2025 compared to the nine-month period 2024[111]. - Sales and marketing expenses decreased by $86,531, or 12.3%, in Q3 2025 compared to Q3 2024, but increased by $310,821, or 17.5%, in the nine-month period 2025 compared to 2024[114]. - Depreciation and amortization increased by $27,723, or 9.6%, in Q3 2025 over Q3 2024, and by $104,202, or 12.6%, in the nine-month period 2025 compared to 2024[115]. Revenue Costs - Cost of revenues for Q3 2025 was $1,433,541, a decrease of 22.2% year-over-year, while for the nine-month period, it was $4,186,801, down 18.6% year-over-year[95]. - Total cost of revenues decreased by $409,983, or 22.2%, in Q3 2025 compared to Q3 2024, and decreased by $955,188, or 18.6%, in the nine-month period 2025 compared to the nine-month period 2024[105]. - The Document Conversion segment's cost of revenues decreased by $413,798, or 26.3%, in Q3 2025 compared to Q3 2024, and decreased by $1,002,019, or 22.9%, in the nine-month period 2025 compared to the nine-month period 2024[105]. - Cost of software as a service (SaaS) increased by $13,486, or 5.9%, in Q3 2025 compared to Q3 2024, and increased by $42,088, or 6.4%, in the nine-month period 2025 compared to the nine-month period 2024[107]. - Cost of professional services decreased by $372,876, or 25.0%, in Q3 2025 compared to Q3 2024, and decreased by $964,768, or 23.1%, in the nine-month period 2025 compared to the nine-month period 2024[108]. Cash Flow and Liquidity - As of September 30, 2025, the company had $3.2 million in cash and cash equivalents and a working capital deficit of $0.1 million, with the largest liability being $3.6 million in deferred revenues[119]. - Net cash provided by operating activities during the nine-month period 2025 was $1,463,711, a decrease from $3,721,943 in the same period of 2024[123]. - Net cash used in investing activities in the nine-month period 2025 was $677,868, compared to $695,359 in 2024[124]. - Net cash used by financing activities during the nine-month period 2025 amounted to $52,900, including $1,797,106 in gross proceeds from the issuance of common stock[125]. - The company has engaged in actions to improve liquidity, including securing a renewal contract with its largest customer effective June 1, 2025[118]. Market Conditions - Economic conditions, including wage inflation and interest rates, are expected to continue impacting the company's performance and growth plans[96][97]. - The company anticipates production in the Document Conversion segment to resume at more historical levels following a temporary reduction in volume prior to a contract renewal[94]. Employee Count - As of September 30, 2025, the company had 162 employees, down from 199 employees as of September 30, 2024[99]. Shareholder Information - Share-based compensation expense amounted to $1,131,891 in the nine-month period 2025, compared to $1,254,856 in the nine-month period 2024[112]. - The company raised a net total of approximately $23.1 million in cash through equity securities and $5.0 million through debt securities since 2012, all of which have been repaid as of June 18, 2025[117]. - The company has an effective registration statement covering up to $12.9 million of common stock, with approximately $8.2 million remaining available under the ATM Program as of the filing date[120].

Financial Performance - Total revenues for Q3 2025 were $4,001,445, a decrease of 12.8% compared to $4,589,625 in Q3 2024, primarily driven by a 28.0% decrease in professional services revenues[5] - Net loss for Q3 2025 was $369,765, or $0.08 per share, compared to a net loss of $392,850, or $0.09 per share in Q3 2024[8] - Adjusted EBITDA for Q3 2025 was $104,783, down from $479,537 in Q3 2024, attributed to increased infrastructure and SaaS spending[6] - For the nine months ended September 30, 2025, total revenues were $12,259,603, a decrease of 10.8% compared to $13,738,302 in the same period in 2024[9] - Net loss for the nine months ended September 30, 2025, was $1,664,920, compared to a net loss of $492,514 for the same period in 2024, representing a significant increase in losses[24] - Basic net loss per share for the three months ended September 30, 2025, was $(0.08), compared to $(0.09) for the same period in 2024[20] Revenue Streams - SaaS revenue increased by 14.6% year-over-year, with significant growth expected from Payables Automation solutions[6] - Professional services revenue decreased by 23.6% year-to-date, overshadowing the 12.3% growth in SaaS revenue[9] - The company is expanding its storage business to include climate-controlled storage for microfilm and microfiche, adding a new revenue stream[4] Cash and Assets - The company ended Q3 2025 with approximately $3.2 million in cash[6] - Cash at the end of the period increased to $3,222,179 from $2,489,236 at the beginning of the period, reflecting a net increase of $732,943[24] - Total current assets as of September 30, 2025, were $5,499,980, slightly up from $5,474,556 as of December 31, 2024[22] Liabilities and Expenses - Total liabilities decreased to $6,552,891 as of September 30, 2025, from $7,943,201 as of December 31, 2024[22] - Total operating expenses decreased by 3.2% to $2,947,128, driven by reductions in variable compensation and share-based compensation[7] - Operating expenses for the nine months ended September 30, 2025, totaled $9,645,063, an increase from $8,756,898 for the same period in 2024[20] - The company reported a total of $1,131,891 in share-based compensation for the nine months ended September 30, 2025[24] Future Outlook - The company expects 2025 revenues to be lower than 2024, but anticipates growth in SaaS revenues and positive Adjusted EBITDA in Q4 2025[10] Profitability - Gross profit for the three months ended September 30, 2025, was $2,567,904, down from $2,746,101 in the same period of 2024[20] - Deferred revenues increased to $3,635,648 as of September 30, 2025, compared to $3,411,852 as of December 31, 2024[22]

Core Insights - Intellinetics, Inc. (INLX) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive shift in earnings estimates which is a significant factor influencing stock prices [1][3][10] Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements, particularly due to institutional investors' reliance on these estimates for valuation [4][6] - For the fiscal year ending December 2025, Intellinetics is expected to earn -$0.50 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 5.7% over the past three months [8] Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7] - The upgrade of Intellinetics to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for higher stock prices in the near term [10]

Core Viewpoint - Intellinetics, Inc. (INLX) has experienced a downtrend, losing 13.1% over the past week, but a hammer chart pattern suggests a potential trend reversal as buying interest may be emerging to counteract selling pressure [1][2]. Technical Analysis - The hammer chart pattern indicates a possible bottoming out, with reduced selling pressure, suggesting that bulls may be gaining control [2][5]. - A hammer pattern forms when there is a small candle body with a long lower wick, indicating that the stock opened lower, made a new low, but closed near its opening price, reflecting buying interest [4][5]. - The effectiveness of the hammer pattern is enhanced when used alongside other bullish indicators, as its strength is dependent on its placement on the chart [6]. Fundamental Analysis - There has been a positive trend in earnings estimate revisions for INLX, which is a bullish indicator, as it typically leads to price appreciation [7]. - The consensus EPS estimate for the current year has increased by 5.7% over the last 30 days, indicating strong agreement among analysts regarding improved earnings potential [8]. - INLX holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which historically outperforms the market [9][10].