Intellinetics (INLX) AI Stock Analysis

• Market Cap: $48.11M
• Dividend Yield: N/A
• Average Volume (3M): 2.04K
• Price to Earnings (P/E): ―
• Beta (1Y): >-0.01
• Revenue Growth: 3.21%
• EPS Growth: -550.35%
• Country: US
• Employees: 138
• Sector: Technology
• Sector Strength: 92
• Industry: Software - Application
• EPS (TTM): -0.17
• Shares Outstanding: 4,314,458
• 10 Day Avg. Volume: 1,164
• 30 Day Avg. Volume: 2,044
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 3.05
• Enterprise Value/Gross Profit: 4.96
• Enterprise Value/Ebitda: 134.26
• 1Y Price Target: $14.00
• Price Target Upside: 21.21% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: $12.50 ▲(8.23% Upside)

Intellinetics' overall score is driven by a stable financial position and positive corporate events, despite challenges in technical indicators and valuation. The company's strategic initiatives and large contract wins bolster its future growth outlook, but immediate profitability concerns and technical weaknesses temper enthusiasm.

Intellinetics Business Overview & Revenue Model

Company Description

Intellinetics, Inc. (INLX) is a technology company that specializes in providing comprehensive document management solutions. Operating primarily in the software and information technology sector, the company offers a range of products and services aimed at helping organizations streamline their document-intensive processes. Intellinetics' core offerings include cloud-based document management systems that enable clients to store, manage, and access their documents electronically, enhancing efficiency and compliance across various industries such as healthcare, education, and government.

How the Company Makes Money

Intellinetics makes money through a combination of software licensing, subscription services, and professional services. The company's primary revenue stream comes from selling subscriptions to its cloud-based document management platform, which provides clients with ongoing access to software updates, support, and cloud storage. Additionally, Intellinetics generates revenue through the sale of perpetual software licenses, where clients pay a one-time fee for the right to use the software indefinitely. The company also offers professional services, including implementation, customization, and training, which further contribute to its earnings. Strategic partnerships with technology providers and resellers expand Intellinetics' market reach and customer base, enhancing its revenue potential.

Intellinetics Financial Statement Overview

Summary

Intellinetics demonstrates a stable financial position with effective cash flow management, reflecting resilience despite operational challenges. The income statement highlights the need for improvements in profitability and revenue growth. The balance sheet is stable, but asset management and leverage need careful monitoring. Overall, the company is navigating challenges well but requires strategic shifts to enhance profitability and growth.

Income Statement

The income statement shows a mixed performance. The TTM revenue is slightly down compared to the previous annual report, with a decrease of 1.44%. Gross profit margin for the TTM stands at 61.46%, which is healthy, but the net profit margin is negative due to the net loss. EBIT and EBITDA margins are also weak, indicating challenges in operational efficiency.

Balance Sheet

The balance sheet reflects a relatively stable financial position. The debt-to-equity ratio is moderate, indicating manageable leverage levels. Equity ratio is stable, reflecting a good proportion of equity financing. However, there is a concerning decrease in total assets and stockholders' equity, suggesting potential challenges in asset management.

Cash Flow

Cash flow analysis shows positive aspects, with strong free cash flow growth and a favorable operating cash flow to net income ratio. The company has managed to generate a positive free cash flow despite net losses, indicating effective cash management. However, declining operating cash flow compared to the previous year is a point of concern.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.02M	16.89M	14.02M	11.46M	8.25M
Gross Profit	11.52M	9.59M	8.91M	6.94M	4.99M
EBITDA	1.03M	2.08M	2.19M	2.86M	-1.05M
Net Income	-546.22K	519.27K	24.03K	905.83K	-2.20M
Balance Sheet
Total Assets	18.57M	19.03M	19.94M	11.96M	10.34M
Cash, Cash Equivalents and Short-Term Investments	2.49M	1.22M	2.70M	1.75M	1.91M
Total Debt	3.55M	5.65M	7.02M	5.69M	5.10M
Total Liabilities	7.94M	9.28M	11.37M	9.30M	9.19M
Stockholders Equity	10.63M	9.75M	8.57M	2.66M	1.15M
Cash Flow
Free Cash Flow	3.42M	236.58K	1.41M	799.48K	48.13K
Operating Cash Flow	3.86M	784.66K	1.99M	1.39M	124.99K
Investing Cash Flow	-827.77K	-548.08K	-6.96M	-590.49K	-4.10M
Financing Cash Flow	-1.76M	-1.72M	5.92M	-954.73K	5.47M

Intellinetics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.55
• 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 11.55 is below the 20-day moving average (MA) of 13.14, below the 50-day MA of 12.48, and below the 200-day MA of 13.07, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 36.84 is Neutral, neither overbought nor oversold. The STOCH value of 6.49 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
SYT	62 Neutral	$39.98M	6.25	12.16%	1.81%	27.23%	47.65%
INLX	61 Neutral	$48.11M	―	-10.79%	―	3.21%	-550.35%
Sector *	55 Neutral	$292.18M	11.21	-16.41%	2.78%	10.38%	-44.70%
TROO	―	$82.62M	―		―	―	―
DUOT	48 Neutral	$133.96M	―	-189.13%	―	89.27%	26.30%
PHUN	37 Underperform	$54.66M	―	-19.87%	―	―	―
NUKK	―	$35.66M	0.31		―	―	―

Intellinetics Corporate Events

Intellinetics Terminates Promissory Notes, Boosts Growth Prospects

Intellinetics, Inc. announced on June 24, 2025, that it has prepaid and terminated all outstanding promissory notes, amounting to $1,373,740, without penalty. This strategic move reflects the company’s confidence in its future growth and its ability to reinvest resources into accelerating sales and development. The prepayment was part of a broader effort to build a cash-generating operation, with the company having repaid $4.96 million in debt principal since 2020. Intellinetics held its 2025 Annual Meeting of Stockholders on June 18, 2025, where directors were elected and the appointment of GBQ Partners LLC as the independent registered public accounting firm was ratified. The company aims to leverage its debt-free status to pursue growth opportunities and enhance shareholder value.

Intellinetics Secures Largest Contract in Company History

On May 28, 2025, Graphic Sciences, Inc., a subsidiary of Intellinetics, Inc., secured a five-year contract renewal with the State of Michigan for document management services, valued at an estimated $42.75 million. This contract, effective from June 1, 2025, to May 30, 2030, allows Michigan’s subdivisions and agencies to procure services at a fixed price, though the contract can be terminated under certain conditions. Separately, Intellinetics announced its largest contract in company history, a $40 million agreement for document scanning and conversion services, set to begin on June 1, 2025. This contract was awarded after a competitive evaluation process and positions Intellinetics to focus on delivering high-quality services and exploring further revenue opportunities, particularly in SaaS solutions.

Intellinetics Enters $10M At The Market Offering

On May 28, Intellinetics Inc. entered into an At The Market Offering Agreement with Lucid Capital Markets, LLC, allowing the company to offer and sell up to $10,000,000 of its common stock through the agent. This agreement provides flexibility in selling shares directly on the NYSE American or through negotiated transactions, with the agent receiving a 3% commission on sales. The arrangement can be terminated by either party and does not obligate the company or agent to sell or buy shares, with no assurance of sales being made.