INVO BioScience(INVO) - 2025 Q2 - Quarterly Results

Executive Summary & Highlights INVO Fertility achieved record Q2 2025 revenue of $1.86 million, alongside increased net and Adjusted EBITDA losses, while also expanding services and securing a new patent Q2 2025 Financial Highlights INVO Fertility reported a 1% increase in total revenue to $1.86 million in Q2 2025, setting a new quarterly record. However, the company experienced an increased net loss from continuing operations of $(3.2) million and a higher Adjusted EBITDA loss of $(587,230) compared to the prior year Q2 2025 Key Financial Highlights (YoY) | Metric | Q2 2025 | Q2 2024 | Change | | :--------------------------------- | :------------ | :------------ | :------- | | Total Revenue | $1,863,654 | $1,836,597 | +1% | | Consolidated clinic revenue | $1,832,094 | $1,807,921 | +1% | | Revenue from all clinics (incl. equity method) | $2,188,893 | $2,141,229 | +2% | | Net loss from continuing operations | $(3.2) million | $(2.2) million | -45.5% | | Adjusted EBITDA | $(587,230) | $(509,623) | -15.2% | Operational and Other Highlights During Q2 2025, INVO Fertility achieved several operational milestones, including recognition for its Wisconsin clinic, expansion of patient services with telehealth and PRP therapy, and securing a new patent for its INVOcell device. The company also completed the divestiture of NAYA Therapeutics - Wisconsin Fertility Institute was recognized on Newsweek's List of America's Best Fertility Clinics for 2025[5] - Launched telehealth capabilities and added Platelet-Rich Plasma (PRP) therapy at the Wisconsin clinic to expand geographic reach and service offerings[5] - Received a notice of allowance on a new patent for a modified INVOcell device, extending intellectual property protection through 2040[5] - Expanded clinical and embryology training support and improved pricing for its INVOcell technology[5] - Completed the divestiture of NAYA Therapeutics, Inc[5] Strategic Direction & Management Commentary The company divested NAYA Therapeutics to refocus on core fertility operations, with management emphasizing service expansion, INVOcell support, and operational efficiency Return to Focus on Fertility Operations INVO Fertility completed the divestiture of a majority stake in NAYA Therapeutics, Inc. on June 2, 2025, retaining a minority position. This strategic move allows the company to refocus exclusively on its fertility operations, with a dedicated management team and board - Completed the divestiture of a majority stake in NAYA Therapeutics, Inc. on June 2, 2025[6] - Retained a minority position in NAYA, offering potential benefits from its ongoing clinical development[6] - The revised corporate structure enables both businesses to focus on their respective opportunities and operations[6] Management Commentary CEO Steve Shum highlighted the company's progress in driving growth and innovation in existing fertility operations. He emphasized expanding service offerings, enhancing INVOcell technology support, and maintaining an efficient, scalable operating structure while seeking accretive revenue opportunities - CEO Steve Shum noted progress in driving growth and innovation in existing fertility operations following the decision to refocus[7] - Expanded service offerings to include new telehealth options and PRP therapy, demonstrating commitment to patient-centered care[7] - Ramped up training support for INVOcell® technology with clinicians and embryologists[7] - Committed to maintaining a highly efficient and scalable operating structure while layering in complementary and accretive revenue-generating businesses and technologies[7] Company Information & Disclosures This section details the company's non-GAAP Adjusted EBITDA metric, its mission in assisted reproductive technology, forward-looking statement disclaimers, and contact information Use of Non-GAAP Measure (Adjusted EBITDA) The company uses Adjusted EBITDA as a non-GAAP measure, which excludes the loss from NAYA and merger-related costs. Management believes this metric provides valuable insight into operating performance and liquidity, supplementing GAAP figures - Adjusted EBITDA is a non-GAAP measure that does not include the loss from NAYA or corresponding merger-related costs[8] - Management believes Adjusted EBITDA provides meaningful information related to operating performance and liquidity, enhancing understanding of financial results and trends[9] - A reconciliation of Adjusted EBITDA to the nearest GAAP measure is included in the press release and the Company's Form 10-Q[8][9] About INVO Fertility INVO Fertility is a healthcare services company focused on expanding access to assisted reproductive technology (ART) care. Its strategy involves building, acquiring, and operating fertility clinics, including 'INVO Centers' utilizing the proprietary INVOcell® device for intravaginal culture (IVC), and profitable in vitro fertilization (IVF) clinics - INVO Fertility is a healthcare services fertility company dedicated to expanding access to assisted reproductive technology (ART) care[10] - The principal commercial strategy is focused on building, acquiring, and operating fertility clinics, including 'INVO Centers' offering the intravaginal culture (IVC) procedure enabled by the INVOcell® medical device, and US-based, profitable in vitro fertilization (IVF) clinics[10] - INVOcell is a proprietary medical device allowing fertilization and early embryo development in vivo within the woman's body, offering a more connected, intimate, and affordable experience with comparable results to traditional IVF[10] Safe Harbor Statement This section serves as a legal disclaimer, indicating that the release contains forward-looking statements subject to risks, uncertainties, and contingencies that may cause actual results to differ materially. The company disclaims any obligation to update these statements - The release includes forward-looking statements under the Private Securities Litigation Reform Act of 1995[11] - All forward-looking statements involve risks, uncertainties, and contingencies that may cause actual results to differ materially from anticipated results[11] - The company is under no obligation to update or alter its forward-looking statements[11] Contact Information Contact details are provided for INVO Fertility, Inc. (CEO Steve Shum) and Investor Relations (Lytham Partners, LLC) - Contact information for INVO Fertility, Inc. CEO Steve Shum (sshum@invobio.com, 978-878-9505) and Investor Contact Robert Blum of Lytham Partners, LLC (INVO@lythampartners.com, 602-889-9700) is provided[12] Financial Statements & Reconciliations Detailed financial statements reveal a 1.5% revenue increase for Q2 2025, alongside higher operating expenses and net losses, with a reconciliation of Adjusted EBITDA Consolidated Statements of Operations The consolidated statements of operations show a 1.5% increase in total revenue for Q2 2025 compared to Q2 2024. However, operating expenses significantly increased by 31.5%, primarily due to a $1.4 million impairment loss, leading to a substantial rise in net loss from continuing operations and total net loss Consolidated Statements of Operations (Three Months Ended June 30) | Metric | Q2 2025 | Q2 2024 | Change (%) | | :--------------------------------- | :------------ | :------------ | :----------- | | Clinic revenue | $1,832,094 | $1,807,921 | +1.3% | | Product revenue | $31,560 | $28,676 | +10.0% | | Total revenue | $1,863,654 | $1,836,597 | +1.5% | | Cost of revenue | $1,093,603 | $861,648 | +26.9% | | Selling, general and administrative expenses | $2,193,049 | $2,647,524 | -17.2% | | Impairment loss | $1,397,353 | $- | N/A | | Total operating expenses | $4,853,742 | $3,689,510 | +31.5% | | Loss from operations | $(2,990,088) | $(1,852,913) | -61.4% | | Net loss from continuing operations | $(3,209,094) | $(2,245,170) | -43.0% | | Loss on disposition of NTI | $(1,534,517) | $- | N/A | | Loss from discontinued operations of NTI | $(541,247) | $- | N/A | | Net loss | $(5,284,858) | $(2,245,170) | -135.4% | | Net loss per common share (Basic) | $(13.30) | $(22.39) | +40.6% | | Weighted average number of common shares outstanding (Basic) | 397,440 | 100,276 | +296.3% | Adjusted EBITDA Reconciliation The Adjusted EBITDA reconciliation for Q2 2025 shows a loss of $(587,230), an increase from $(509,623) in Q2 2024. Key adjustments include a significant impairment loss of $1.4 million and merger-related costs of $130,000 in 2025, partially offset by a gain on settlement of liability Adjusted EBITDA Reconciliation (Three Months Ended June 30) | Metric | Q2 2025 | Q2 2024 | | :--------------------------------- | :------------ | :------------ | | Net loss from continuing operations | $(3,209,094) | $(2,245,170) | | Interest expense | $177,472 | $118,640 | | Amortization of debt discount | $43,853 | $250,972 | | Stock-based compensation | $668,805 | $1,031,071 | | Loss from debt extinguishment | $692,270 | $40,491 | | Gain on settlement of liability | $(714,500) | $- | | Impairment loss | $1,397,353 | $- | | Merger-related costs | $130,000 | $- | | Depreciation and amortization | $169,736 | $230,338 | | Adjusted EBITDA | $(587,230) | $(509,623) |