Intellinetics (NYSEAMERICAN:INLX) reported modest fourth-quarter revenue growth and improved gross margin in its fourth quarter and full-year 2025 earnings call, while highlighting a full-year revenue decline tied to lower professional services activity and increased investment spending. The company also outlined its focus on execution and accelerating SaaS growth under newly appointed President and CEO Alison Forsythe.
New CEO highlights priorities and business mix shift
Forsythe, who said she stepped into the CEO role in mid-February, told listeners she has been meeting with the team and reviewing operations to assess opportunities and areas needing improved execution. She described the company as having “strong foundational assets,” including an established SaaS customer base and “differentiated technology,” with opportunities in vertical markets where secure document and workflow automation remain important.
Looking ahead, Forsythe said the company is focused on “improving execution, sharpening our go-to-market approach, and accelerating SaaS revenue while bringing greater consistency to our document management business.”
Fourth-quarter revenue rises 1% as SaaS growth offsets services softness
Chief financial officer Joe (no last name provided in the transcript) said fourth-quarter total revenue increased 1% year over year to $4.3 million, with SaaS growth “covering decreases from other revenue lines.”
- SaaS (including hosting): Increased 8.4% to $1.6 million from $1.5 million.
- Software maintenance services: Decreased 11.2% year over year, with the company reporting approximately $0.3 million in both periods. Joe noted the line relates to support agreements for customers on the company’s legacy on-premise solution and said price increases “did not cover attrition this quarter.”
- Professional services: Decreased 1.8% to approximately $2.2 million, about flat year over year. Professional services represented 51% of total revenue, down from 52% in the prior-year quarter.
Joe said professional services revenue “has not recovered to a level we expected following the June 2025 renewal of our largest customer contract.”
Gross margin improves; operating expenses rise on growth investments
Consolidated gross margin rose 184 basis points to 66.6% in the fourth quarter from 64.8% a year earlier. Joe attributed the improvement to a “better revenue mix” from a larger share of higher-margin SaaS revenue, along with the “positive impact from price increases.” He added that margins remained strong across revenue lines.
Operating expenses increased 11.2% to $3.1 million for the quarter compared with $2.8 million in the prior-year period. Joe said the increase was driven by investments in sales and marketing “as part of our strategy to accelerate sales” and higher general and administrative expenses tied to “infrastructure and engineering development expansion.”
Net loss for the fourth quarter widened to $208,000 compared to a net loss of $54,000 a year earlier. Net loss per share was $0.05 for basic and diluted shares, compared with $0.01 in the prior-year quarter. Adjusted EBITDA was $261,000, down from $531,000 a year earlier.
Full-year revenue declines 8% as professional services fall
For the full year 2025, total revenue declined 8% to $16.6 million from $18.0 million in 2024. Joe said SaaS revenue rose 11.1% despite “economic headwinds in vertical markets such as construction and home building and K-12 education.”
Professional services revenue decreased 18.7% from what Joe called a record 2024, ending 2025 at $8.1 million compared with $10.0 million the prior year.
Consolidated gross margin improved to 66% from 63%, which Joe said was driven by a favorable mix shift.
Operating expenses rose 10.4% to $12.7 million in 2025, compared with $11.5 million in 2024. Joe cited two main factors:
- Sales and marketing: Expansion of the team in 2025, along with upgrades to the company’s website and customer relationship management tools.
- General and administrative: Up 8.5%, driven by expanded security and controls investments and an expanded engineering development team.
The full-year net loss was $1.873 million, compared with a net loss of $546,000 in 2024. Net loss per basic and diluted share was $0.44, compared with $0.13 in the prior year.
Adjusted EBITDA for 2025 was $470,000, down from $2.4 million in 2024. Joe said investments made “in order to grow and scale the business” coincided with a reduction in professional services “due to extended low scanning project volume.”
Balance sheet update and 2026 SaaS growth outlook
As of December 31, 2025, Joe said the company had $2.5 million in cash and $1.2 million in net accounts receivable. Total assets were $17.3 million, including $8.7 million in intangible assets and goodwill tied to acquisitions made since 2020.
Total liabilities were $5.9 million, including $3.4 million in deferred revenue related to signed SaaS and maintenance contracts and $1.7 million in lease liabilities. Joe also said the company has had no debt on the balance sheet since paying the last of it in June 2025.
On outlook, Joe said that based on current plans and assumptions, the company expects to grow SaaS revenue year over year in fiscal 2026, while noting the expectation is subject to risks and uncertainties described in its filings and on the call.
In closing remarks, Forsythe reiterated a focus on “execution,” sharpening the go-to-market approach, accelerating SaaS growth, and improving consistency in document management performance, saying the company believes this will support “more consistent performance and long-term value creation.”
The call ended without any questions during the Q&A portion.
About Intellinetics (NYSEAMERICAN:INLX)
Intellinetics, Inc is a provider of enterprise content management and digital transformation solutions designed to help organizations streamline document-centric processes and improve operational efficiency. The company’s platform enables clients to capture, store, manage and retrieve both paper and electronic records through a unified system, reducing reliance on manual workflows and minimizing the risks associated with paper-based information handling.
The company offers a range of software products and professional services aimed at automating business processes and ensuring secure, compliant access to critical data.
