Intellinetics (INLX) AI Stock Analysis

• Market Cap: $36.82M
• Dividend Yield: N/A
• Average Volume (3M): 4.88K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.18
• Revenue Growth: -7.76%
• EPS Growth: -291.41%
• Country: US
• Employees: 138
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.08
• Shares Outstanding: 4,479,123
• 10 Day Avg. Volume: 12,448
• 30 Day Avg. Volume: 4,877
• PEG Ratio: 0.53
• Price to Book (P/B): 5.43
• Price to Sales (P/S): 3.21
• P/FCF Ratio: 19.06
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 2.18
• Enterprise Value/Gross Profit: 3.37
• Enterprise Value/Ebitda: -121.17
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: $8.00 ▼(-3.26% Downside)

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

Sustained SaaS revenue growth indicates the company is shifting toward higher-margin, recurring revenue. Over months this improves revenue predictability, customer lifetime value, and scaling potential, reducing reliance on volatile professional services and supporting long-term margin expansion.

Gross Margin Expansion

A meaningful gross margin gain driven by higher SaaS mix reflects structural improvement in unit economics. Higher gross margins provide durable cash generation per sale, enable reinvestment in sales and product, and make profitability easier to achieve as recurring revenue scales.

Debt-Free Balance Sheet

Zero debt provides lasting financial flexibility: lower fixed costs, more room for strategic R&D or M&A, and resilience to revenue shocks. For a small software firm this strengthens the ability to fund growth initiatives without near-term refinancing risk.

Negative Factors

Declining Total Revenue

A sustained top-line decline weakens scale and slows SaaS flywheel effects; lower overall revenue constrains investment in sales and product, magnifies fixed-cost leverage, and makes it harder to convert improved margins into sustained profitability over coming quarters.

Persistent Net Losses

Continued net losses and negative operating margins indicate the company still struggles to translate revenue into profit. Even with SaaS growth, ongoing losses signal structural cost or pricing issues that must be resolved to deliver durable shareholder returns.

Weak Cash Conversion

Subpar cash conversion and declining free cash flow growth reduce internal funding for sales, product and margins. Over months this limits reinvestment, heightens dependency on external capital, and increases execution risk for scaling the SaaS business.

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 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 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

• Technical Analysis Sentiment: Neutral
• Last Price: 8.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INLX, the sentiment is Neutral. The current price of 8.27 is above the 20-day moving average (MA) of 7.98, below the 50-day MA of 8.30, and below the 200-day MA of 10.97, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 53.19 is Neutral, neither overbought nor oversold. The STOCH value of 66.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for INLX.

Intellinetics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NTWK	58 Neutral	$36.92M	85.75	1.40%	―	7.70%	-36.01%
HKIT	52 Neutral	$56.84M	-23.56	-6.17%	―	-47.44%	-318.95%
AWRE	48 Neutral	$40.18M	-7.01	-18.98%	―	2.73%	25.65%
INLX	45 Neutral	$36.82M	-20.77	-15.71%	―	-7.76%	-291.41%
PHUN	43 Neutral	$37.95M	-3.07	-18.69%	―	―	―

Intellinetics Corporate Events

Intellinetics Announces CEO Retirement and Leadership Transition

Intellinetics announced that longtime Chief Executive Officer and President James F. DeSocio will retire and resign from his roles, including his board seat, effective February 27, 2026, with the company emphasizing that his departure is not due to any disagreement and outlining a separation package that includes six months of salary, accelerated vesting of restricted stock, and extended stock option exercise rights through December 31, 2026. DeSocio’s eight-year tenure saw Intellinetics transform from a $2.5 million public company into a $17 million annual revenue digital transformation SaaS provider through strategic acquisitions completed in 2020 and 2022, major product launches such as its Payables Automation and Intelligent Document Processing platforms, debt reduction, an NYSE American listing in 2022, and key customer renewals, and the board will shrink from six to five members upon his departure as the company activates a succession plan and continues discussions to appoint a new CEO to build on this growth trajectory.

The most recent analyst rating on (INLX) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Intellinetics stock, see the INLX Stock Forecast page.