Intellinetics (INLX) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $3.91 million, down 8% year-over-year, mainly due to a 14.3% decline in professional services revenue, while SaaS revenue remained nearly flat at $1.54 million.

• Net loss widened to $1.18 million ($0.27 per share) from $0.73 million ($0.17 per share) in Q1 2025.

• Adjusted EBITDA swung to a loss of $288,000 from a profit of $77,000 in the prior year.

• Operating expenses rose 4.4% year-over-year, driven by $430,000 in CEO transition-related costs.

• Early assessment by the new CEO highlights strong technology and market opportunities, but also the need for better execution and predictability.

Financial highlights

• Gross margin for Q1 2026 decreased to 63.5% from 66.6% in Q1 2025, mainly due to lower professional services volume and project mix.

• SaaS revenue grew 0.1% year-over-year to $1.54 million; professional services revenue declined 14.3% to $1.85 million.

• Software maintenance services revenue fell 11.6%; storage and retrieval services revenue increased 3.4%.

• General and administrative expenses increased 9.1% year-over-year, while sales and marketing expenses decreased 13.7%.

• Cash at quarter end was $2.08 million; net cash used in operating activities was $228,433.

Outlook and guidance

• Management expects double-digit year-over-year SaaS revenue growth for fiscal 2026, focusing on accelerating SaaS and improving execution.

• Improved revenue recognition from recent software bookings is expected in Q2 2026 and beyond.

• Capital resources, including cash and a new $1 million line of credit, are expected to meet anticipated needs for at least the next 12 months.