INBS · Intelligent Bio Solutions Inc.

Revenue increased 45.5% year-over-year to $1.1 million for the three months ended March 31, 2026, compared to $728.9 thousand in the prior year quarter. This growth was driven primarily by the addition of 33 new customers and an increase in ongoing re-order rates for consumables, demonstrating sustained demand for the company's drug screening solutions in key markets. Gross profit correspondingly advanced 56.8% to $535.4 thousand, expanding the gross margin to 50.5%. This margin improvement stems from enhanced production efficiency and a shifting sales mix toward higher-margin cartridges, which now represent a larger share of total revenue. The contribution margin specifically improved by approximately 1.32 percentage points as a result of these operational enhancements.

Despite topline strength, operating income deteriorated 15.4% to a loss of $2.9 million from $2.6 million in the year-ago period, reflecting heightened operating expenses. Additional legal costs contributed significantly, associated with foundational corporate development activities including the 2025 Reverse Stock Split, general corporate matters, and administrative expenses tied to capital raising efforts. Amortization expense declined due to the completion of scheduled amortization for customer relationship intangible assets in the prior quarter, leaving no remaining carrying value, though partially offset by amortization of software costs. Net income reflected a similar trend, widening 12.5% to a $2.9 million loss, with diluted EPS at -$1.80 versus -$0.44 year-over-year.