Intellinetics Q3 Net Loss Widens Amid Revenue Dip, SaaS Growth Shines

TL;DR

**INLX is bleeding cash with widening losses and falling revenue, but its SaaS segment offers a lifeline; watch for sustained SaaS growth to turn the tide or bail.**

AI Summary

INTELLINETICS, INC. (INLX) reported a significant net loss of $1,664,920 for the nine months ended September 30, 2025, a substantial increase from the $492,514 net loss in the prior year period. Total revenues decreased by 10.7% to $12,259,603 for the nine months ended September 30, 2025, down from $13,738,302 in the same period of 2024, primarily driven by a 23.6% decline in Professional Services revenue to $5,939,909. Despite this, Software as a Service (SaaS) revenue showed growth, increasing to $4,727,526 from $4,209,686, a 12.3% rise. Operating expenses increased by 10.1% to $9,645,063, largely due to a 7.7% increase in General and Administrative expenses to $6,629,109 and a 17.5% increase in Sales and Marketing expenses to $2,085,381. The company's cash position improved to $3,222,179 as of September 30, 2025, from $2,489,236 at December 31, 2024, partly due to $1,797,106 in proceeds from common stock issuance. Total liabilities decreased by 17.5% to $6,552,891 from $7,943,201, mainly by repaying notes payable. The strategic outlook emphasizes continued benefit from the shift from an offline to online world, focusing on integrating acquisitions and growing their businesses.

Why It Matters

For investors, INLX's widening net loss and declining overall revenue, particularly in professional services, signal operational challenges and potential market share erosion in a competitive digital transformation landscape. The positive growth in SaaS revenue, however, offers a glimmer of hope, suggesting a successful pivot towards recurring revenue models, which is crucial for long-term stability and investor confidence. Employees might face pressure if the company continues to struggle with profitability, while customers could benefit from enhanced SaaS offerings but might experience service adjustments in less profitable segments. The broader market will watch if INLX can leverage its SaaS growth to offset declines in other areas, impacting its competitive standing against larger, more diversified tech firms.

Risk Assessment

Risk Level: high — The company reported a net loss of $1,664,920 for the nine months ended September 30, 2025, a significant increase from the $492,514 loss in the prior year, indicating deteriorating profitability. Total revenues decreased by 10.7% to $12,259,603, primarily due to a 23.6% drop in Professional Services revenue, highlighting a substantial decline in core business segments. Operating expenses also increased by 10.1% to $9,645,063, further pressuring margins.

Analyst Insight

Investors should closely monitor INLX's next earnings report for signs of sustained SaaS revenue growth and a reversal in the professional services decline. Consider holding if SaaS growth accelerates and operating expenses are brought under control, but be prepared to sell if the overall revenue contraction and net losses persist, indicating a failure to execute on strategic shifts.

Financial Highlights

revenue

$12,259,603

total Debt

$6,552,891

net Income

-$1,664,920

eps

-$0.39

cash Position

$3,222,179

revenue Growth

-10.7%

Revenue Breakdown

Key Numbers

• $1,664,920 — Net Loss (Increased from $492,514 in prior year period for nine months ended Sept 30, 2025)
• $12,259,603 — Total Revenues (Decreased by 10.7% for nine months ended Sept 30, 2025)
• $5,939,909 — Professional Services Revenue (Decreased by 23.6% for nine months ended Sept 30, 2025)
• $4,727,526 — Software as a Service Revenue (Increased by 12.3% for nine months ended Sept 30, 2025)
• $9,645,063 — Total Operating Expenses (Increased by 10.1% for nine months ended Sept 30, 2025)
• $3,222,179 — Cash (As of September 30, 2025, up from $2,489,236 at December 31, 2024)
• $1,797,106 — Proceeds from Common Stock Issuance (Contributed to cash increase for nine months ended Sept 30, 2025)
• $6,552,891 — Total Liabilities (Decreased by 17.5% as of September 30, 2025)
• 4,479,123 — Shares of Common Stock Outstanding (As of November 10, 2025)
• $0.39 — Diluted Net Loss Per Share (For the nine months ended September 30, 2025, up from $0.12 in prior year)

Key Players & Entities

• INTELLINETICS, INC. (company) — Registrant
• INLX (company) — Trading Symbol
• Graphic Sciences, Inc. (company) — Wholly-owned subsidiary of Intellinetics
• Intellinetics Ohio (company) — Wholly-owned subsidiary of Intellinetics
• Nevada (regulator) — State of Incorporation
• NYSE American (regulator) — Exchange where Common Stock is registered
• SEC (regulator) — Securities and Exchange Commission
• FASB (regulator) — Financial Accounting Standards Board
• Microsoft Office 365 (company) — Software platform integration
• Bloomberg (company) — Publisher of this analysis

FAQ

Risk Factors

• Increasing Net Loss [high — financial]: The company reported a net loss of $1,664,920 for the nine months ended September 30, 2025, a significant increase from $492,514 in the prior year period. This widening loss raises concerns about profitability and cash burn.
• Declining Total Revenues [medium — financial]: Total revenues decreased by 10.7% to $12,259,603 for the nine months ended September 30, 2025, compared to $13,738,302 in the same period of 2024. This decline is primarily attributed to a substantial drop in Professional Services revenue.
• Rising Operating Expenses [medium — operational]: Operating expenses increased by 10.1% to $9,645,063, driven by a 7.7% rise in General and Administrative expenses to $6,629,109 and a 17.5% increase in Sales and Marketing expenses to $2,085,381. This increase in costs outpaces revenue growth.
• Dependence on Stock Issuance for Cash [medium — financial]: While the cash position improved to $3,222,179, a significant portion of this increase ($1,797,106) came from common stock issuance. This suggests reliance on external financing rather than operational cash generation.
• Deteriorating Earnings Per Share [high — financial]: Diluted Net Loss Per Share increased to $0.39 for the nine months ended September 30, 2025, from $0.12 in the prior year period, reflecting the worsening financial performance.

Industry Context

INTELLINETICS, INC. operates in a market increasingly driven by the shift from offline to online interactions. The company's strategy focuses on leveraging this trend, particularly through the integration of acquisitions and the growth of their acquired businesses. This suggests a competitive landscape where digital transformation and consolidation are key themes.

Regulatory Implications

As a publicly traded company, INTELLINETICS, INC. is subject to SEC regulations and reporting requirements, including the timely filing of 10-Q reports. Compliance with accounting standards and disclosure rules is critical to maintaining investor confidence and avoiding penalties.

What Investors Should Do

1. Monitor SaaS growth trajectory
2. Analyze expense management strategies
3. Evaluate the impact of stock issuance
4. Assess the sustainability of the business model

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 — Period for which the company reported a significant increase in net loss and a decrease in total revenues.
• 2025-12-31: December 31, 2024 — Prior period balance sheet date used for comparison of cash position and total liabilities.
• 2025-11-10: November 10, 2025 — Date for which the number of shares of common stock outstanding was reported as 4,479,123.

Glossary

SaaS

Software as a Service. A software distribution model where a third-party provider hosts applications and makes them available to customers over the Internet. (Represents a growing revenue stream for INTELLINETICS, INC., offsetting declines in other areas.)

Diluted Net Loss Per Share

The net loss attributable to each share of common stock outstanding, after accounting for the dilutive effect of all potentially dilutive securities such as stock options and convertible bonds. (Indicates the extent of the company's losses on a per-share basis, which has worsened significantly.)

Notes Payable

Short-term or long-term debt obligations that a company owes to lenders, typically banks or financial institutions. (Repayment of notes payable contributed to the decrease in total liabilities.)

Year-Over-Year Comparison

Compared to the prior year period, INTELLINETICS, INC. has experienced a significant deterioration in financial performance. Total revenues declined by 10.7%, primarily due to a sharp drop in Professional Services. Concurrently, operating expenses rose by 10.1%, leading to a substantial increase in net loss from $492,514 to $1,664,920. The diluted net loss per share also worsened considerably, from $0.12 to $0.39. While total liabilities decreased, this was partly offset by increased reliance on equity financing to bolster the cash position.

Key Financial Figures

• $0.001 — nge on which registered Common Stock, $0.001 par value INLX NYSE American Indi

Filing Documents

• form10-q.htm (10-Q) — 1006KB
• ex31-1.htm (EX-31.1) — 11KB
• ex31-2.htm (EX-31.2) — 11KB
• ex32-1.htm (EX-32.1) — 5KB
• ex32-2.htm (EX-32.2) — 5KB
• 0001493152-25-021891.txt ( ) — 5334KB
• inlx-20250930.xsd (EX-101.SCH) — 33KB
• inlx-20250930_cal.xml (EX-101.CAL) — 53KB
• inlx-20250930_def.xml (EX-101.DEF) — 169KB
• inlx-20250930_lab.xml (EX-101.LAB) — 337KB
• inlx-20250930_pre.xml (EX-101.PRE) — 278KB
• form10-q_htm.xml (XML) — 850KB

Financial Statements

Financial Statements. 4 Condensed Consolidated Balance Sheets as of September 30, 2025 (Unaudited) and December 31, 2024 4 Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2025 and 2024 (Unaudited) 5 Condensed Consolidated Statement of Stockholders' Equity for the three and nine months ended September 30, 2025 and 2024 (Unaudited) 6 Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024 (Unaudited) 7 Notes to Condensed Consolidated Financial Statements (Unaudited) 8 ITEM 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations. 21 ITEM 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk. 30 ITEM 4.

Controls and Procedures

Controls and Procedures. 30 PART II OTHER INFORMATION 31 ITEM 1. Legal Proceedings. 31 ITEM 1A. Risk Factors. 31 ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds. 31 ITEM 3. Defaults Upon Senior Securities. 31 ITEM 4. Mine Safety Disclosures . 31 ITEM 5. Other Information. 31 ITEM 6. Exhibits . 31

SIGNATURES

SIGNATURES 32 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q and the documents incorporated into this report by reference contain forward-looking statements. In addition, from time to time we may make additional forward-looking statements in presentations, at conferences, in press releases, in other reports and filings and otherwise. Forward-looking statements are all statements other than statements of historical facts, including statements that refer to plans, intentions, objectives, goals, targets, strategies, hopes, beliefs, projections, prospects, expectations or other characterizations of future events or performance, and assumptions underlying the foregoing. The words "may," "could," "should," "would," "will," "project," "intend," "continue," "believe," "anticipate," "estimate," "forecast," "expect," "plan," "potential," "opportunity," "scheduled," "goal," "target," and "future," variations of such words, and other comparable terminology and similar expressions and references to future periods are often, but not always, used to identify forward-looking statements. Examples of forward-looking statements include, among other things, statements about the following: the effects on our business, financial condition, and results of operations of current and future economic, business, market and regulatory conditions, including the current global inflation, economic downturn, and other economic and market conditions, and their effects on our customers and their capital spending and ability to finance purchases of our products, services, technologies and systems; our prospects, including our future business, revenues, recurring revenues, expenses, net income, earnings per share, margins, profitability, cash flow, cash position, liquidity, financial condition and results of operations, backlog of orders and revenue, our targeted growth rate, our goals for future revenues and earnings, and our expectations about realiz

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