Intellinetics (INLX) investor relations material

Executive summary

• Q3 2025 revenue declined 12.8% year-over-year to $4.0 million, mainly due to a 28% drop in professional services and document conversion volume before a major contract renewal.

• SaaS revenue grew 14.6% year-over-year in Q3 2025, driven by payables automation and strong adoption in K-12 and homebuilder markets.

• Gross margin improved to 64.2% from 59.8% last year, with SaaS margins at 85.1%.

• Net loss for Q3 2025 was $369,765 ($0.08/share), a slight improvement from $392,850 ($0.09/share) last year.

• Positive cash flow since 2022 has funded growth and technology investments, with no debt as of September 30, 2025.

Financial highlights

• Nine-month 2025 revenues were $12.26 million, down 10.8% year-over-year; Q3 2025 total revenue: $4.0 million, down 12.8%.

• SaaS revenues for the nine months grew 12.3% year-over-year to $4.73 million.

• Professional services revenue Q3 2025: $1.88 million, down 28% year-over-year; nine-month: $5.94 million, down 23.6%.

• Adjusted EBITDA for Q3 2025 was $104,783, down from $480,000 in Q3 2024, reflecting lower professional services revenue and higher SG&A investments.

• Cash and cash equivalents at September 30, 2025, were $3.2 million.

Outlook and guidance

• 2025 revenues expected to be lower than 2024 due to professional services weakness, but SaaS revenues and positive Adjusted EBITDA are anticipated.

• Q4 2025 and FY 2026 SaaS revenues anticipated to exceed prior-year periods.

• 2025 Adjusted EBITDA expected to be less than half of 2024, due to increased sales and marketing investments.

• Production in document conversion expected to return to historical levels in Q4 2025 after backlog replenishment.

• Capital resources are expected to be sufficient for at least the next 12 months based on current plans.