Revenue contraction and high overhead costs resulted in a -30.3% operating margin and a -8.0% year-over-year revenue decline in 2026Q1.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 |
|---|
| Sales/Revenue | 16.25M | 16.58M | 18.02M | 16.89M | 14.02M | 11.46M | 8.25M | 2.54M | 2.38M | 2.62M | 2.6M | 2.34M | 1.49M | 1.55M | 2.73M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Revenue Growth % | -8.52% | -7.96% | 6.7% | 20.47% | 22.31% | 38.86% | 225.45% | 6.49% | -9.23% | 0.83% | 11.33% | 57.28% | -4.4% | -43.17% | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 5.98M | 5.63M | 6.49M | 7.3M | 5.83M | 4.52M | 3.26M | 567.84K | 742.4K | 760.46K | 709.81K | 482.24K | 301.03K | 585.23K | 981.52K | 0 | 0 | 4.82K | 0 | 0 | 0 | 0 | 0 |
| COGS % of Revenue | - | 33.95% | 36.04% | 43.21% | 41.59% | 39.42% | 39.53% | 22.39% | 31.17% | 28.99% | 27.28% | 20.64% | 20.26% | 37.66% | 35.89% | - | - | - | - | - | - | - | - |
| Gross Profit | 10.26M | 10.95M | 11.52M | 9.59M | 8.19M | 6.94M | 4.99M | 1.97M | 1.64M | 1.86M | 1.89M | 1.85M | 1.18M | 968.96K | 1.75M | 0 | 0 | -4.82K | 0 | 0 | 0 | 0 | 0 |
| Gross Margin % | 63.17% | 66.05% | 63.96% | 56.79% | 58.41% | 60.58% | 60.47% | 77.61% | 68.83% | 71.01% | 72.72% | 79.36% | 79.74% | 62.34% | 64.11% | - | - | - | - | - | - | - | - |
| Gross Profit Growth % | - | -4.97% | 20.18% | 17.13% | 17.92% | 39.12% | 153.58% | 20.08% | -12.02% | -1.53% | 2% | 56.54% | 22.28% | -44.74% | - | - | 100% | - | - | - | - | - | - |
| Operating Expenses | 12.55M | 12.74M | 11.7M | 8.48M | 6.92M | 5.84M | 7.03M | 3.12M | 3.11M | 3.03M | 3.26M | 3.41M | 2.58M | 2.94M | 3.42M | 10.15K | 6.26K | 4.82K | 5.91K | 10.12K | 18.09K | 18.69K | 2.1K |
| OpEx % of Revenue | - | 76.83% | 64.92% | 50.23% | 49.35% | 50.93% | 85.16% | 123.06% | 130.75% | 115.56% | 125.37% | 145.94% | 173.82% | 189.17% | 125.21% | - | - | - | - | - | - | - | - |
| Selling, General & Admin | 11.61M | 11.5M | 10.57M | 8.48M | 6.92M | 5.42M | 4.54M | 3.11M | 3.1M | 3.02M | 3.25M | 3.4M | 2.56M | 2.91M | 3.4M | 10.15K | 6.26K | 4.82K | 5.91K | 10.12K | 9.04K | 9.35K | 2.1K |
| SG&A % of Revenue | - | 69.32% | 58.66% | 50.23% | 49.35% | 47.32% | 55.02% | 122.75% | 130.37% | 115.11% | 124.96% | 145.44% | 172.18% | 187.47% | 124.17% | - | - | - | - | - | - | - | - |
| Research & Development | 343.76K | 0 | 690.93K | 558.98K | 253.8K | 345.7K | 0 | 467.36K | 359.79K | 412.4K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | 3.83% | 3.31% | 1.81% | 3.02% | - | 18.43% | 15.11% | 15.72% | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 594.19K | 1.25M | 437.69K | -558.98K | -253.8K | 68.23K | 2.49M | -459.66K | 9.04K | 11.83K | 10.69K | 11.63K | 24.31K | 26.46K | 28.42K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -2.29M | -1.79M | -173.5K | 1.11M | 1.27M | 1.11M | -2.04M | -1.15M | -1.47M | -1.17M | -1.37M | -1.56M | -1.4M | -1.97M | -1.67M | -10.15K | -6.26K | -4.82K | -5.91K | -10.12K | -9.04K | -9.35K | -2.1K |
| Operating Margin % | -14.08% | -10.79% | -0.96% | 6.56% | 9.06% | 9.65% | -24.7% | -45.45% | -61.93% | -44.54% | -52.66% | -66.57% | -94.08% | -126.82% | -61.1% | - | - | - | - | - | - | - | - |
| Operating Income Growth % | - | -930.85% | -115.67% | -12.82% | 14.81% | 154.28% | -76.84% | 21.85% | -26.2% | 14.7% | 11.94% | -11.3% | 29.08% | -17.95% | -16365.43% | -62.07% | -29.84% | 18.32% | 41.67% | -11.94% | 3.22% | -344.15% | - |
| EBITDA | -991.17K | -542.93K | 1.03M | 2.08M | 2.63M | 2.16M | -1.34M | -1.1M | -1.47M | -1.16M | -1.36M | -1.54M | -1.37M | -1.94M | -1.64M | -10.15K | -6.26K | -4.82K | -5.91K | -10.12K | -18.09K | -18.69K | -2.1K |
| EBITDA Margin % | -6.1% | -3.27% | 5.7% | 12.33% | 18.79% | 18.81% | -16.19% | -43.52% | -61.55% | -44.09% | -52.25% | -66.08% | -92.44% | -125.12% | -60.06% | - | - | - | - | - | - | - | - |
| EBITDA Growth % | -345.79% | -152.89% | -50.7% | -20.95% | 22.17% | 261.37% | -21.07% | 24.71% | -26.71% | 14.9% | 11.97% | -12.42% | 29.37% | -18.38% | -16085.4% | -62.07% | -29.84% | 18.32% | 41.67% | 44.03% | 3.22% | -788.31% | - |
| D&A (Non-Cash Add-back) | 1.3M | 1.25M | 1.2M | 974.53K | 1.36M | 1.05M | 702.16K | 49.01K | 9.04K | 11.83K | 10.69K | 11.63K | 24.31K | 26.46K | 28.42K | 0 | 0 | 0 | 0 | 0 | -9.04K | -9.35K | 0 |
| EBIT | -2.27M | -1.79M | -173.5K | 1.11M | 827.32K | 1.81M | -1.75M | -1.15M | -1.47M | -755.51K | -1.37M | -1.56M | -1.4M | -1.97M | -1.67M | -1.27M | -6.26K | -4.82K | -5.91K | -10.12K | -9.04K | -9.35K | 0 |
| Net Interest Income | -46.02K | -84.33K | -372.71K | -588.2K | -803.29K | -452.12K | -637.68K | -980.69K | -865.5K | -609.85K | -206.33K | -2.37M | -250.76K | -184.1K | -298.95K | -5.66K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 46.02K | 84.33K | 372.71K | 588.2K | 803.29K | 452.12K | 637.68K | 980.69K | 865.5K | 609.85K | 206.33K | 2.37M | 250.75K | 184.1K | 298.95K | 5.66K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -36.62K | -84.33K | -372.71K | -588.2K | -1.25M | 251.55K | -350.26K | -980.69K | -865.5K | -190.76K | -206.33K | -2.37M | -250.76K | -168.63K | -314.42K | 1.25M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Pretax Income | -2.32M | -1.87M | -546.22K | 519.27K | 24.03K | 1.36M | -2.39M | -2.13M | -2.34M | -1.36M | -1.58M | -3.92M | -1.65M | -2.14M | -1.99M | -15.81K | -6.26K | -4.82K | -5.91K | -10.12K | -9.04K | -9.35K | 0 |
| Pretax Margin % | -14.3% | -11.29% | -3.03% | 3.08% | 0.17% | 11.85% | -28.94% | -84.12% | -98.27% | -51.81% | -60.59% | -167.8% | -110.95% | -137.67% | -72.6% | - | - | - | - | - | - | - | - |
| Income Tax | 0 | 0 | 0 | 0 | 0 | 0 | -188.3K | 0 | 0 | 609.85K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.1K |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | 0% | 7.88% | 0% | 0% | -44.86% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | - |
| Net Income | -2.32M | -1.87M | -546.22K | 519.27K | 24.03K | 1.36M | -2.2M | -2.13M | -2.34M | -1.36M | -1.58M | -3.92M | -1.65M | -2.14M | -1.99M | -15.81K | -6.26K | -4.82K | -5.91K | -10.12K | -9.04K | -9.35K | -2.1K |
| Net Margin % | -14.3% | -11.29% | -3.03% | 3.08% | 0.17% | 11.85% | -26.66% | -84.12% | -98.27% | -51.81% | -60.59% | -167.8% | -110.95% | -137.67% | -72.6% | - | - | - | - | - | - | - | - |
| Net Income Growth % | -111.38% | -242.89% | -205.19% | 2061.18% | -98.23% | 161.72% | -3.14% | 8.85% | -72.16% | 13.76% | 59.8% | -137.86% | 22.95% | -7.77% | -12456.87% | -152.51% | -29.84% | 18.32% | 41.67% | -11.94% | 3.22% | -344.15% | - |
| Net Income (Continuing) | -2.32M | -1.87M | -546.22K | 519.27K | 24.03K | 1.36M | -2.2M | -2.13M | -2.34M | -1.37M | -1.58M | -3.92M | -1.65M | -2.14M | -1.99M | -15.81K | -6.26K | -4.82K | -5.91K | -10.12K | -9.04K | -9.35K | -2.1K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.53 | -0.44 | -0.13 | 0.11 | 0.01 | 0.44 | -0.91 | -8.41 | -6.60 | -3.91 | -4.73 | -13.15 | -12.02 | -16.54 | -21.14 | -0.24 | -0.48 | -0.37 | -0.45 | -0.78 | -0.49 | -0.51 | -0.11 |
| EPS Growth % | -104.27% | -238.46% | -218.18% | - | -98.73% | 148.35% | 89.18% | -27.42% | -68.8% | 17.34% | 64.03% | -9.4% | 27.33% | 21.76% | -8708.33% | 50% | -29.73% | 17.78% | 42.31% | -59.18% | 3.92% | -363.64% | - |
| EPS (Basic) | - | -0.44 | -0.13 | 0.13 | 0.01 | 0.48 | -0.91 | -8.41 | -6.60 | -3.91 | -4.73 | -13.15 | -12.02 | -16.54 | -21.14 | -0.24 | -0.48 | -0.37 | -0.45 | -0.78 | -0.49 | -0.51 | -0.11 |
| Diluted Shares Outstanding | 4.39M | 4.3M | 4.2M | 4.65M | 4.3M | 3.1M | 2.41M | 370.28K | 354.54K | 347.45K | 333K | 298.17K | 137.14K | 129.4K | 93.91K | 65.02K | 13.02K | 13.02K | 13.02K | 13.02K | 18.33K | 18.33K | 18.33K |
| Basic Shares Outstanding | 4.39M | 4.3M | 4.2M | 4.07M | 3.77M | 2.82M | 2.41M | 370.28K | 354.54K | 347.38K | 333K | 298.17K | 137.14K | 129.4K | 93.91K | 65.02K | 13.02K | 13.02K | 13.02K | 13.02K | 18.33K | 18.33K | 18.33K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Public sector budget dependency
As reported in recent financial filings, Intellinetics experienced a -7.96% year-over-year revenue decline in 2026Q1, signaling that the company's reliance on project-based document conversion is struggling to maintain momentum as the pipeline for new municipal and K-12 digital migration contracts appears to be stalling.
The consistent revenue decline across recent quarters suggests that the company is failing to replace completed conversion projects with new, high-value engagements. This trend implies that the firm's growth durability is currently compromised by the cyclical nature of public sector budget approvals.
Based on the provided income statement data, Intellinetics' gross margin fell to 55.7% in 2026Q1, reflecting the inherent difficulty of scaling a hybrid model where labor-intensive document conversion services act as a persistent drag on the higher-margin IntelliCloud software subscription business.
The inability to consistently maintain gross margins above 60% suggests that the company's service-heavy cost structure lacks the operating leverage required for a pure-play software valuation. Investors should monitor whether the firm can shift its revenue mix toward recurring SaaS to improve these structural margin limitations.
According to the latest quarterly results, the company reported an operating margin of -30.3%, indicating that fixed corporate overhead and SG&A expenses are significantly outpacing the current revenue base, thereby exacerbating the firm's inability to achieve sustainable operating leverage in the current fiscal environment.
The widening operating loss suggests that management has not yet achieved the necessary scale to absorb its fixed cost base. This trend implies that without a significant revenue inflection, the company may continue to face substantial pressure on its net income and cash reserves.
As evidenced by the 2026Q1 data, the company's net loss of $1.2 million is compounded by ongoing stock-based compensation of $263.3K, which suggests that the reported GAAP losses may understate the true economic cost of operations and the dilution impact on existing shareholders.
The persistent use of stock-based compensation during periods of negative net income warrants further investigation into management's alignment with shareholder interests. This practice appears to mask the severity of the company's cash burn and complicates the assessment of true operational profitability.
Quick answers to the most common questions about buying INLX stock.
For fiscal year 2025, Intellinetics, Inc. (INLX) reported total revenue of $16.6M.
Intellinetics, Inc. (INLX) reported a net loss of $1.9M for the fiscal year ending 2025.
Intellinetics, Inc. (INLX) reported an operating income of $-1.8M, resulting in an operating profit margin of -10.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Intellinetics, Inc. (INLX) generated $11.0M in gross profit for the year, representing a gross profit margin of 66.0%. This demonstrates the company's core pricing power and production efficiency.