Intellinetics(INLX) - 2025 Q3 - Quarterly Results

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]