Intelligent Bio Solutions (INBS) Q2 2025 earnings summary

Executive summary

• Revenue for the quarter ended December 31, 2024, was $607,494, down from $764,063 year-over-year, mainly due to lower reader sales in the construction sector.

• Gross profit margin improved to 36.73% from 26.08% year-over-year, driven by a higher proportion of high-margin cartridge sales and production efficiencies.

• Achieved a 32.6% increase in gross profit and an 11-point rise in gross profit margin, driven by higher-margin cartridge sales and operational streamlining.

• Net loss attributable to shareholders increased to $2,249,470 for the quarter, compared to $1,969,641 in the prior year, primarily due to higher R&D and expansion costs.

• Major achievements included FDA 510(k) submission for the Intelligent Fingerprinting Drug Screening System and successful completion of key clinical studies.

Financial highlights

• Six-month revenue was $1,479,781, down from $1,560,157 year-over-year.

• Gross profit for the six months ended December 31, 2024, increased 32.6% year-over-year to $0.57 million.

• Gross profit margin rose to 38.5% from 27.7% year-over-year for the six months ended December 31, 2024.

• Net loss for the fiscal second quarter was $2.26 million, including $0.32 million in non-cash expenses.

• Cash and cash equivalents as of December 31, 2024, were $2,242,209, with shareholders’ equity at $4,203,388.

Outlook and guidance

• Management anticipates continued operating losses and negative cash flows until regulatory approvals are achieved and revenue base expands.

• Cartridge sales expected to continue outpacing reader sales, maximizing recurring revenue.

• Anticipates continued international expansion and U.S. market entry in 2025 following FDA clearance.

• There is substantial doubt about the ability to continue as a going concern without additional capital within the next 12 months.