Intellinetics (INLX) Q2 2026 earnings summary

Executive summary

• Q2 2026 total revenue was $3.95M, down 1.6% year-over-year, with SaaS revenue up 4.2% and professional services revenue down due to project timing and lower backlog.

• Net loss for Q2 2026 widened to $1.09M ($0.24/share) from $0.57M ($0.13/share) in Q2 2025; six-month net loss was $2.26M ($0.51/share), up from $1.30M ($0.31/share) in 2025.

• Operating expenses rose 14.7% in Q2, driven by higher G&A, engineering, share-based compensation, and $430K in CEO transition costs.

• Management is focused on accelerating SaaS growth, improving execution, and expects double-digit SaaS growth for FY 2026.

• Operating foundation strengthened with improved forecasting, pipeline management, and project oversight.

Financial highlights

• Q2 2026 total revenue: $3.95M, down 1.6% year-over-year; SaaS revenue: $1.64M (+4.2%), professional services: $1.79M (-5.8%), software maintenance: $292K (-11.7%), storage/retrieval: $222K (+8.8%).

• Q2 gross margin: 66.4% (down from 68.0%); six-month gross margin: 65.0% (down from 67.3%).

• Q2 net loss: $1.09M ($0.24/share); adjusted EBITDA: -$371K (vs. $28K prior year).

• Six-month revenue: $7.86M (-4.9%); net loss: $2.26M ($0.51/share); adjusted EBITDA: -$659K (vs. $104K prior year).

• Cash at June 30, 2026: $1.71M; no debt; $2.9M in deferred revenues; $1M unused line of credit.

Outlook and guidance

• Management expects double-digit SaaS revenue growth for fiscal 2026, with new bookings recognized in the second half and beyond.

• Focus remains on accelerating SaaS growth, improving execution, and building a scalable operating model.

• Capital resources, including cash and expected operating funds, are believed sufficient for at least the next 12 months.