Intellinetics (INLX) AI Stock Analysis

• Market Cap: $49.96M
• Dividend Yield: N/A
• Average Volume (3M): 4.88K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.08
• Revenue Growth: -2.63%
• EPS Growth: -1080.14%
• Country: US
• Employees: 138
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.13
• Shares Outstanding: 4,479,123
• 10 Day Avg. Volume: 12,448
• 30 Day Avg. Volume: 4,877
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 3.09
• Enterprise Value/Gross Profit: 4.85
• Enterprise Value/Ebitda: -216.46
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: $10.00 ▲(5.82% Upside)

Intellinetics' overall stock score is primarily impacted by its financial performance challenges, including declining revenue and profitability, and negative earnings affecting valuation. Technical analysis indicates bearish momentum, further weighing on the score. The earnings call provides some optimism with strategic initiatives and SaaS growth, but these are overshadowed by current financial difficulties.

Intellinetics Business Overview & Revenue Model

Company Description

Intellinetics, Inc. designs, develops, tests, markets, and licenses document services and software solutions in the United States. The company operates in two segments, Document Management and Document Conversion. Its software platform allows its customers to capture and manage documents across operations, such as scanned hard-copy documents and digital documents, including Microsoft Office 365, digital images, audios, videos, and emails. The company's flagship software suite includes IntelliCloud platform that comprises image processing modules, records management, workflow, and extended components. It also provides installation, integration, training, and consulting services; ongoing software maintenance and customer support services; and digital scanning, microfilm and microfiche, box storage, scanning equipment, and software and repair services, as well as long-term paper and microfilm storage, and retrieval option services. In addition, the company offers business process outsourcing services. Intellinetics, Inc. sells its products to resellers and directly to customers, as well as provides access to its software solutions as a service through the Internet. It serves business and federal, county, and municipal governments, as well as healthcare, K-12 education, public safety, other public sector, risk management, financial services, and others. The company was formerly known as GlobalWise Investments, Inc. and changed its name to Intellinetics, Inc. in September 2014. Intellinetics, Inc. was incorporated in 1996 and is headquartered in Columbus, Ohio.

How the Company Makes Money

Intellinetics generates revenue primarily through the sale of its software licenses, subscription services, and ongoing maintenance and support agreements. The company has a recurring revenue model, which is bolstered by its subscription-based offerings for cloud services, allowing clients to access their document management systems on a pay-as-you-go basis. Additionally, Intellinetics benefits from professional services, including implementation, training, and consulting, which contribute to its earnings. The company has also established partnerships with other technology providers to enhance its service offerings and reach new markets, further solidifying its revenue streams.

Intellinetics Financial Statement Overview

Summary

Intellinetics faces challenges with declining revenue and profitability, as reflected in the income statement. The balance sheet shows manageable leverage but negative returns on equity. Cash flow analysis indicates potential liquidity issues with declining free cash flow growth. Overall, the company needs to address operational inefficiencies and improve cash generation to enhance financial stability.

Income Statement

The income statement shows declining revenue growth with a negative trend in profitability. The TTM data indicates a negative net profit margin of -10.17%, and a negative EBIT margin of -5.81%, reflecting operational challenges. The gross profit margin remains relatively stable at 63.73%, but the overall financial health is impacted by declining revenue and profitability.

Balance Sheet

The balance sheet indicates a moderate debt-to-equity ratio of 0.16 in the TTM period, suggesting manageable leverage. However, the return on equity is negative at -16.20%, indicating inefficiencies in generating returns for shareholders. The equity ratio is not explicitly calculated, but the overall balance sheet reflects a need for improved financial performance.

Cash Flow

The cash flow statement shows a decline in free cash flow growth by -32.61% in the TTM period, indicating potential liquidity challenges. The operating cash flow to net income ratio is 0.48, suggesting moderate cash generation relative to net income. The free cash flow to net income ratio is 0.69, reflecting some ability to convert earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.13M	18.02M	16.89M	14.02M	11.46M	8.25M
Gross Profit	10.92M	11.52M	9.59M	8.19M	6.94M	4.99M
EBITDA	-244.52K	1.03M	2.08M	2.19M	2.86M	-1.05M
Net Income	-1.74M	-546.22K	519.27K	24.03K	1.36M	-2.20M
Balance Sheet
Total Assets	17.16M	18.57M	19.03M	19.94M	11.96M	10.34M
Cash, Cash Equivalents and Short-Term Investments	2.07M	2.49M	1.22M	2.70M	1.75M	1.91M
Total Debt	1.85M	3.55M	5.65M	7.02M	5.69M	5.10M
Total Liabilities	5.59M	7.94M	9.28M	11.37M	9.30M	9.19M
Stockholders Equity	11.56M	10.63M	9.75M	8.57M	2.66M	1.15M
Cash Flow
Free Cash Flow	1.56M	3.42M	236.58K	1.41M	799.48K	48.13K
Operating Cash Flow	2.25M	3.86M	784.66K	1.99M	1.39M	124.99K
Investing Cash Flow	-900.91K	-827.77K	-548.08K	-6.96M	-590.49K	-4.10M
Financing Cash Flow	-960.11K	-1.76M	-1.72M	5.92M	-954.73K	5.47M

Intellinetics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INLX, the sentiment is Negative. The current price of 9.45 is below the 20-day moving average (MA) of 10.92, below the 50-day MA of 11.20, and below the 200-day MA of 12.18, indicating a bearish trend. The MACD of -0.41 indicates Positive momentum. The RSI at 35.57 is Neutral, neither overbought nor oversold. The STOCH value of 5.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INLX.

Intellinetics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTWK	―	$51.74M	17.76	8.04%	―	7.65%	311.31%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
HKIT	―	$60.36M	―	-6.17%	―	-47.44%	-318.95%
AWRE	―	$47.10M	-8.37	-18.98%	―	2.73%	25.65%
INLX	―	$49.96M	―	-15.90%	―	-2.63%	-1080.14%
PHUN	―	$51.88M	-3.57	-21.38%	―	―	―

Intellinetics Corporate Events

Intellinetics Earnings Call: Mixed Outlook Amid Growth and Challenges

Intellinetics, Inc. recently held its earnings call, revealing a mixed sentiment about its financial performance and future outlook. The company celebrated significant milestones, including a successful contract renewal, growth in SaaS revenue, and the elimination of debt. However, these achievements were overshadowed by challenges such as declining overall revenue, increased expenses, and a net loss for the quarter. Despite these hurdles, Intellinetics remains optimistic about its growth prospects, having made strategic investments in sales and marketing to drive future success.

Intellinetics Reports Q2 2025 Financial Results

Intellinetics, Inc. is a digital transformation solutions provider specializing in document management and data protection, serving highly regulated industries such as healthcare, education, and government sectors. The company is headquartered in Columbus, Ohio.