Intellinetics (NYSEAMERICAN:INLX) reported lower first-quarter revenue and a wider net loss, as management pointed to continued weakness in professional services revenue while emphasizing plans to accelerate growth in the company’s SaaS business.
On the company’s 2026 first-quarter earnings call, President and CEO Alison Forsythe, who said she is about 90 days into the role, said her early review of the business reinforced confidence in Intellinetics’ technology platform, customer relationships and vertical market opportunities. She said the company’s products are “highly sticky within customer workflows” and said management believes Intellinetics can deliver double-digit year-over-year SaaS growth in 2026 over 2025.
Revenue Declines as Professional Services Remain Under Pressure
Chief Financial Officer Joe Spain said total revenue for the quarter fell 8% to $3.9 million, compared with $4.2 million in the same period last year.
SaaS revenue remained stable year over year at about $1.5 million. Spain said growth moderated during the quarter, but recurring software revenue remains “an important and growing component” of the company’s overall business mix.
Software maintenance services revenue decreased by $39,000, or 11.6%, from the prior year. Spain said those revenues come from support agreements with long-standing customers that remain on the company’s legacy on-premise solution.
Professional services revenue declined 14.3% to $1.9 million, down from $2.2 million a year earlier. Professional services represented 47% of total revenue in the quarter, compared with 51% last year. Spain said that revenue line has not yet recovered to the level management expected following the June 2025 renewal of the company’s largest customer contract.
Margins and Expenses Reflect Mix and CEO Transition Costs
Spain reported consolidated gross margin of 63.5% for the quarter, compared with 56.6% in the prior-year period. He said the margin performance was affected by lower professional services volume and project mix, while noting that software margins in both SaaS and maintenance remained solid.
Operating expenses increased 4.4% to $3.7 million, compared with $3.5 million a year earlier. The increase was primarily driven by CEO transition-related costs totaling $430,000 during the quarter, including share-based compensation. Spain said those one-time costs were partially offset by lower administrative and sales and marketing expenses.
The company posted a net loss of $1.2 million, compared with a net loss of $0.7 million in the same period last year. Loss per share was $0.27, compared with a loss of $0.17 per share a year earlier. Spain attributed the wider loss primarily to the CEO transition costs and reduced professional services revenue from the company’s document services segment.
Adjusted EBITDA, a non-GAAP measure, was a loss of $288,000, compared with Adjusted EBITDA profit of $77,000 in the prior-year quarter.
Balance Sheet Remains Debt-Free
As of March 31, 2026, Intellinetics had $2.1 million in cash and $1.2 million in net accounts receivable. Total assets were $16.5 million, including $8.6 million in intangible assets and goodwill related to acquisitions completed since 2020.
Total liabilities were $5.8 million, including $2.9 million in deferred revenues tied to signed SaaS and maintenance contracts. Spain said the company had no debt as of March 31, 2026, and had not made any borrowings to date.
Management Focuses on SaaS Growth and Execution
Forsythe said Intellinetics has “meaningful opportunities” to improve execution, operational consistency, predictability and go-to-market effectiveness across the organization. She said the company is moving quickly to strengthen alignment, improve operating discipline and position the business for scalable long-term growth.
Spain said management remains focused on accelerating SaaS growth and currently expects double-digit year-over-year SaaS growth for fiscal 2026, subject to the risks and uncertainties described in the company’s filings and on the call.
In closing remarks, Forsythe reiterated that the company has strong foundational assets, differentiated technology, attractive vertical market opportunities and long-term SaaS growth potential. She said management’s priorities are improving execution, strengthening operational discipline, accelerating SaaS growth and positioning the business for more scalable and predictable long-term performance.
About Intellinetics (NYSEAMERICAN:INLX)
Intellinetics, Inc is a provider of enterprise content management and digital transformation solutions designed to help organizations streamline document-centric processes and improve operational efficiency. The company’s platform enables clients to capture, store, manage and retrieve both paper and electronic records through a unified system, reducing reliance on manual workflows and minimizing the risks associated with paper-based information handling.
The company offers a range of software products and professional services aimed at automating business processes and ensuring secure, compliant access to critical data.
