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].

Core Viewpoint - Intellinetics, Inc. reported a quarterly loss of $0.13 per share, which was better than the Zacks Consensus Estimate of a loss of $0.16, representing an earnings surprise of +18.75% [1] Financial Performance - The company posted revenues of $4.01 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 5.62% and down from $4.64 million a year ago [2] - Over the last four quarters, Intellinetics has surpassed consensus EPS estimates only once [2] Stock Performance - Intellinetics shares have declined approximately 23.7% since the beginning of the year, while the S&P 500 has gained 9.6% [3] - The current Zacks Rank for Intellinetics is 4 (Sell), indicating expected underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.10 on revenues of $4.81 million, and for the current fiscal year, it is -$0.53 on revenues of $18.1 million [7] - The trend of estimate revisions for Intellinetics was unfavorable prior to the earnings release [6] Industry Context - The Internet - Content industry, to which Intellinetics belongs, is currently in the bottom 20% of the Zacks Industry Rank, suggesting potential challenges ahead [8]