Intellinetics reported a better third quarter, with higher revenue and gross margin, a narrower net loss and a return to positive adjusted EBITDA. The Columbus-based digital-transformation company also ended September with more cash than it had at the end of June.
The improvement was concentrated in the quarter: for the first nine months of 2026, revenue and adjusted EBITDA were lower than a year earlier, and the net loss was larger.
Third-quarter results
- Revenue edged up 0.7% year over year to $4.0 million. SaaS revenue rose 5.0% to $1.7 million, while storage and retrieval revenue also contributed to growth. Professional services revenue fell 2.5%.
- Gross profit increased 5.3% to $2.7 million, and gross margin widened by 2.95 percentage points to 67.1%. Professional services gross margin improved to 48.1% from 40.5%, which the company attributed primarily to a more favorable mix of projects.
- Operating expenses were essentially unchanged, up 0.1%. With the higher gross profit, the operating loss narrowed 35.3% year over year to about $245,000.
- The net loss narrowed to about $239,000, or 5 cents per share, from roughly $400,000, or 8 cents per share, in the third quarter of 2025. It also improved from a $1.1 million loss in the second quarter of 2026.
- Adjusted EBITDA was positive $144,821, compared with positive $102,642 a year earlier and a loss of $371,096 in the second quarter. The sequential improvement was about $516,000.
- Cash totaled approximately $2.85 million at September 30, up about $1.14 million from June 30.
Results for the first nine months
- SaaS revenue rose 3.2% to $4.9 million, but professional services revenue declined 7.8%. Total revenue fell 3.1% to $11.9 million, reflecting the services decline.
- Gross profit decreased 2.8%, while gross margin increased 0.17 percentage point.
- The net loss grew to $2.5 million, or 56 cents per share, from $1.7 million, or 39 cents per share, in the first nine months of 2025.
- Adjusted EBITDA was a loss of $513,925, compared with positive adjusted EBITDA of $206,804 a year earlier.
- The nine-month operating expenses included about $430,000 in non-recurring CEO transition costs, all incurred in the first quarter.
The quarter’s higher gross margin and lower operating loss show a marked improvement from the prior quarter, while the nine-month figures remain weaker than the prior-year period. Positive adjusted EBITDA in the third quarter followed a loss in the second quarter; the reported results do not establish whether that improvement will continue.