INLX · Intellinetics, Inc.

Intellinetics' Q1 2026 results showed total revenue declining 8.0% year-over-year to $3.9 million, primarily due to a 14.3% drop in professional services revenue to $1.85 million, partially offset by modest 0.1% SaaS growth to $1.5 million and slight increases in other segments. Gross profit fell 12.2% to $2.48 million, with margins contracting 307 basis points to reflect lower professional services margins from unfavorable project mix. Operating expenses rose 4.4% to $3.66 million, driven by a 9.1% increase in general and administrative costs, including $430,130 in non-recurring CEO transition expenses such as severance, overlapping compensation, and recruiting. This led to an operating loss of $1.18 million, up from $0.68 million last year, and a GAAP net loss of $1.18 million or ($0.27) per share versus ($0.17) prior year. Adjusted EBITDA swung to a $288 thousand loss from a $77 thousand profit, after adjustments for depreciation, share-based compensation, and CEO costs. Balance sheet reflects $2.1 million cash at quarter-end, down from $2.5 million at year-end, with operating cash use of $228 thousand. New CEO Alison Forsythe, 90 days in role, emphasized SaaS potential, citing sticky products and market opportunities, while noting execution improvements needed. Management guides for double-digit SaaS growth in 2026, focusing on recurring revenue and operational discipline.