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Intellinetics (INLX)
:INLX
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Intellinetics
(INLX)
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Rating:45Neutral
Price Target:
$8.50
▲(8.56% Upside)
Intellinetics faces significant challenges with negative financial metrics and bearish technical indicators. The company's valuation is impacted by negative earnings and lack of dividend yield. Despite some positive developments in the SaaS segment, the overall outlook remains cautious.
Positive Factors
SaaS Revenue Growth
The growth in SaaS revenue indicates strong demand for Intellinetics' cloud-based solutions, which can lead to stable, recurring revenue streams and long-term business sustainability.
Debt Elimination
Eliminating debt improves financial health and reduces interest expenses, enhancing the company's ability to invest in growth initiatives and weather economic fluctuations.
Improved Gross Margin
An improved gross margin suggests better cost management and pricing power, which can lead to enhanced profitability and competitive positioning over time.
Negative Factors
Revenue Decline
The decline in revenue reflects challenges in maintaining sales momentum, which could impact the company's ability to fund operations and invest in growth.
Increased Operating Expenses
Rising operating expenses without corresponding revenue growth can strain profitability and limit the company's ability to reinvest in strategic initiatives.
Professional Services Revenue Drop
A significant drop in professional services revenue suggests potential issues with client retention or service delivery, which could affect future revenue stability.
Intellinetics (INLX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$35.07M
Dividend YieldN/A
Average Volume (3M)4.88K
Price to Earnings (P/E)―
Beta (1Y)-0.13
Revenue Growth-7.76%
EPS Growth-291.41%
CountryUS
Employees138
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.08
Shares Outstanding4,479,123
10 Day Avg. Volume12,448
30 Day Avg. Volume4,877
Financial Highlights & Ratios
PEG Ratio0.53
Price to Book (P/B)5.43
Price to Sales (P/S)3.21
P/FCF Ratio16.90
Enterprise Value/Market Cap1.51
Enterprise Value/Revenue3.20
Enterprise Value/Gross Profit4.96
Enterprise Value/Ebitda-178.17
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Intellinetics Business Overview & Revenue Model
Company DescriptionIntellinetics, 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 MoneyIntellinetics generates revenue through a combination of software licensing, subscription fees, and professional services. The primary revenue stream comes from selling its proprietary document management software to enterprises, alongside ongoing subscriptions for cloud-based services. Additionally, the company earns income from consulting and implementation services, which assist clients in deploying and optimizing the software solutions. Strategic partnerships with technology providers and resellers also contribute to revenue generation, expanding the company's market reach and enhancing its product offerings.
Intellinetics Earnings Call Summary
Earnings Call Date:Nov 12, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 30, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a challenging period for Intellinetics, with significant revenue decline and reduced adjusted EBITDA mainly due to weakness in professional services. However, the company shows promising growth in its SaaS segment, strong pipeline, and strategic expansions. The overall sentiment is balanced with both positive developments and ongoing challenges.Q3-2025 Updates
Positive Updates
SaaS Revenue Growth
SaaS revenue grew 14.6% to $1.6 million for the quarter compared to $1.4 million for the same period last year, driven by early payables automation successes.
Strong Pipeline and Expansion
The company has rebuilt its backlog with orders in hand, expected to sustain digital transformation work beyond fiscal 2026, and is expanding into microfilm and microfiche storage.
Successful K-12 Market Penetration
31 new SaaS deals closed in the K-12 market within weeks, with significant potential for expansion among 4,000 targeted prospects.
Gross Margin Improvement
Consolidated gross margin increased by 434 basis points to 64.2% for Q3 2025 compared to 59.8% last year, driven by increased SaaS volume.
Debt-Free Balance Sheet
The company has no debt on its balance sheet as of September 30, 2025, after paying off the last of it in June.
Negative Updates
Decrease in Total Revenue
Total revenue for the quarter decreased 12.8% to $4.0 million compared to $4.6 million for the same period last year, mainly due to a 28% decrease in professional services revenue.
Reduced Adjusted EBITDA
Adjusted EBITDA for the quarter decreased to $105,000 from $480,000 for the same period in 2024, affected by the professional services revenue reduction and increased investments in SG&A.
Net Loss Persistence
Net loss for Q3 was $370,000 compared to a net loss of $393,000 for the same period last year.
Professional Services Revenue Weakness
Professional services revenue decreased to $1.9 million from $2.6 million last year, with margins also decreasing from 42.9% to 40.5%.
Company Guidance
During the Intellinetics Third Quarter 2025 Earnings Conference Call, guidance focused on the company's strategic direction and anticipated financial performance. Despite a 12.8% decrease in total revenue to $4.0 million due to a temporary slowdown in professional services, the company emphasized robust growth in their SaaS segment, which increased by 14.6% to $1.6 million. The company has rebuilt its backlog to historical levels and expects sustained digital transformation work beyond the second quarter of fiscal 2026. With a strong pipeline, Intellinetics aims to expand revenue streams, particularly in storage and retrieval services and SaaS offerings. The company reported a consolidated gross margin increase of 434 basis points to 64.2%, with SaaS margins strong at 85.1%. Looking forward, Intellinetics anticipates a significant growth in SaaS revenues and projects that fourth quarter 2025 SaaS revenues will surpass those of the previous year, driven by a strategic focus on sales and marketing investments. The company also highlighted the success of its K-12 payables automation solution and expects positive adjusted EBITDA for the fiscal year.Intellinetics Financial Statement Overview
Summary
Intellinetics is facing challenges in revenue growth and profitability, with negative margins impacting its income statement. While there is some improvement in leverage, the negative return on equity and declining cash flow growth are areas of concern. The company needs to focus on improving operational efficiency and cash flow generation to enhance its financial health.Income Statement
Intellinetics has shown a decline in revenue growth with a negative trajectory in the TTM period. The gross profit margin remains relatively stable, but the company is struggling with negative net profit and EBIT margins, indicating challenges in achieving profitability. The EBITDA margin is also negative, reflecting operational inefficiencies.Balance Sheet
The company's debt-to-equity ratio has improved over time, indicating better leverage management. However, the return on equity is negative, suggesting that the company is not generating sufficient returns on shareholders' investments. The equity ratio is stable, showing a balanced asset structure.Cash Flow
Intellinetics has experienced a decline in free cash flow growth in the TTM period, which is concerning. The operating cash flow to net income ratio is below 1, indicating potential cash flow issues. However, the free cash flow to net income ratio is relatively healthy, suggesting some ability to generate cash relative to net income.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 16.54M | 18.02M | 16.89M | 14.02M | 11.46M | 8.25M |
| Gross Profit | 10.68M | 11.52M | 9.59M | 8.19M | 6.94M | 4.99M |
| EBITDA | -297.08K | 1.03M | 2.08M | 2.19M | 2.86M | -1.05M |
| Net Income | -1.72M | -546.22K | 519.27K | 24.03K | 1.36M | -2.20M |
Balance Sheet | ||||||
| Total Assets | 17.99M | 18.57M | 19.03M | 19.94M | 11.96M | 10.34M |
| Cash, Cash Equivalents and Short-Term Investments | 3.22M | 2.49M | 1.22M | 2.70M | 1.75M | 1.91M |
| Total Debt | 1.89M | 3.55M | 5.65M | 7.02M | 5.69M | 5.10M |
| Total Liabilities | 6.55M | 7.94M | 9.28M | 11.37M | 9.30M | 9.19M |
| Stockholders Equity | 11.44M | 10.63M | 9.75M | 8.57M | 2.66M | 1.15M |
Cash Flow | ||||||
| Free Cash Flow | 994.08K | 3.03M | 236.58K | 1.41M | 799.48K | 48.13K |
| Operating Cash Flow | 1.67M | 3.86M | 784.66K | 1.99M | 1.39M | 124.99K |
| Investing Cash Flow | -810.28K | -827.77K | -548.08K | -6.96M | -590.49K | -4.10M |
| Financing Cash Flow | -138.72K | -1.76M | -1.72M | 5.92M | -954.73K | 5.47M |
Intellinetics Technical Analysis
Negative
7.83
Price Trends
8.87
Negative
9.99
Negative
11.37
Negative
Market Momentum
-0.26
Negative
32.66
Neutral
6.64
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 7.83 is below the 20-day moving average (MA) of 8.29, below the 50-day MA of 8.87, and below the 200-day MA of 11.37, indicating a bearish trend. The MACD of -0.26 indicates Negative momentum. The RSI at 32.66 is Neutral, neither overbought nor oversold. The STOCH value of 6.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INLX.
Intellinetics Risk Analysis
Intellinetics disclosed 40 risk factors in its most recent earnings report. Intellinetics reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Intellinetics Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $35.04M | 72.97 | 1.40% | ― | 7.70% | -36.01% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | $60.06M | -24.64 | -6.17% | ― | -47.44% | -318.95% | |
48 Neutral | $43.39M | -7.69 | -18.98% | ― | 2.73% | 25.65% | |
45 Neutral | $35.07M | -19.52 | -15.71% | ― | -7.76% | -291.41% | |
43 Neutral | $39.57M | -3.32 | -18.69% | ― | ― | ― |
* Technology Sector Average
INLX
Intellinetics
7.83
-5.92
-43.05%
AWRE
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2.03
0.38
23.03%
NTWK
Netsol Technologies
2.97
0.29
10.82%
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1.96
-3.98
-67.00%
HKIT
Hitek Global
2.05
0.63
44.37%
NUKK
Nukkleus
3.93
-21.40
-84.48%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.