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Intellinetics, Inc. (INLX)
:INLX
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Intellinetics
(NYSE MKT:INLX)
Rating:61Neutral
Price Target:
$13.50
▲(6.64%Upside)
Intellinetics (INLX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$54.62M
Dividend YieldN/A
Average Volume (3M)3.81K
Price to Earnings (P/E)―
Beta (1Y)0.05
Revenue Growth3.21%
EPS Growth-550.35%
CountryUS
Employees138
SectorTechnology
Sector Strength81
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.17
Shares Outstanding4,314,458
10 Day Avg. Volume1,179
30 Day Avg. Volume3,805
Financial Highlights & Ratios
PEG Ratio0.49
Price to Book (P/B)5.18
Price to Sales (P/S)0.00
P/FCF Ratio23.48
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue0.79
Enterprise Value/Gross Profit5.14
Enterprise Value/Ebitda13.06
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Intellinetics Business Overview & Revenue Model
Company DescriptionIntellinetics, Inc. (INLX) is a technology company operating within the information management sector, focusing on providing cloud-based document solutions. The company's core products and services include enterprise content management (ECM) systems that help organizations manage, store, and retrieve documents and information efficiently. Intellinetics serves a diverse range of industries, including government, healthcare, education, and commercial businesses, offering solutions that enhance workflow, compliance, and operational efficiency.
How the Company Makes MoneyIntellinetics generates revenue primarily through the sale and implementation of its enterprise content management (ECM) solutions. The company earns money by licensing its software products to businesses and organizations. Revenue streams include subscription fees for its cloud-based ECM services, one-time fees for software licenses, and charges for professional services such as installation, customization, and ongoing support. Additionally, Intellinetics may engage in partnerships with resellers and other technology providers to expand its market reach and enhance its solution offerings.
Intellinetics Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q1-2025)
| % Change Since: -5.03%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Neutral
Intellinetics showed strong potential for future growth, especially in SaaS, with strategic investments and positive product feedback. However, the quarter faced challenges with a revenue decrease and increased expenses leading to a net loss. The company remains optimistic about future performance despite economic headwinds.Q1-2025 Updates
Positive Updates
Growth in SaaS Revenue
SaaS revenue, including hosting, grew 9.8% to $1.5 million for the quarter, primarily driven by the success of Payables Automation.
Record-Breaking Order Intake
Achieved the biggest single order intake week in years, with over $2.4 million of total contract value in new project contracts.
Increased Gross Margin
Consolidated gross margin percent increased 322 basis points to 67.6% for Q1.
New Strategic Investments
Investments in sales, marketing, and IT infrastructure, including SOC 2 certification, to drive future growth and customer trust.
Positive Feedback on New Product Release
Positive feedback on the first release of the purchase order feature of the Payables Automation product from an experienced consultant.
Strong K-12 Market Penetration
Successful launch of Payables Automation and capture as a service solution in the K-12 sector, with significant partner support.
Negative Updates
Decrease in Total Revenue
Total revenue for the quarter ended March 31, 2025, decreased 5.8% to $4.2 million compared to the same period last year.
Weak Professional Services Business
Professional services revenue decreased 13.2% to $2.2 million, attributed to timing issues.
Increased Operating Expenses
Operating expenses increased 21.1% to $3.6 million due to investments in sales, marketing, and infrastructure.
Net Loss and Reduced EBITDA
Net loss for Q1 was $728,000 compared to a net loss of $175,000 last year; adjusted EBITDA decreased significantly due to increased investments.
Impact of Economic Factors
Hesitation in the building industry due to high interest rates and tariffs affecting sales.
Company Guidance
During Intellinetics' first quarter 2025 earnings call, the company reiterated its guidance for the fiscal year, emphasizing a focus on growing SaaS revenues while maintaining positive adjusted EBITDA. They reported a total revenue decrease of 5.8% to $4.2 million compared to the previous year, influenced by a weak quarter in professional services revenue which fell by 13.2%. However, SaaS revenue, including hosting, increased by 9.8%, driven by the success of their Payables Automation solution. Despite a net loss of $728,000 for the quarter, attributed mainly to increased investments in sales and marketing, the company remains optimistic about future growth. They highlighted their record-breaking week with $2.4 million in total contract value from state agencies and commercial clients and announced the start of an $880,000 multi-month scanning project. Intellinetics also plans to continue investing in IT infrastructure for SOC 2 certification to enhance customer trust and competitive advantage.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.65
Positive
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.70
Positive
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.75
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 17.76M | 18.02M | 16.89M | 14.02M | 11.46M | 8.25M | Gross Profit |
| 10.92M | 11.52M | 9.59M | 8.91M | 6.94M | 4.99M | EBIT |
| -823.58K | -173.50K | 1.11M | 1.27M | 964.99K | 153.00K | EBITDA |
| 403.26K | 1.03M | 2.08M | 1.55M | 2.86M | -1.05M | Net Income Common Stockholders |
| -1.10M | -546.22K | 519.27K | -779.27K | 905.83K | -2.20M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 2.14M | 2.49M | 1.22M | 2.70M | 1.75M | 1.91M | Total Assets |
| 17.96M | 18.57M | 19.03M | 19.94M | 11.96M | 10.34M | Total Debt |
| 3.91M | 3.55M | 5.65M | 7.02M | 5.69M | 5.10M | Net Debt |
| 1.77M | 1.07M | 4.44M | 4.33M | 3.93M | 3.19M | Total Liabilities |
| 1.15M | 7.94M | 9.28M | 11.37M | 9.30M | 9.19M | Stockholders Equity |
| 10.36M | 10.63M | 9.75M | 8.57M | 2.66M | 1.15M |
| Cash Flow | Free Cash Flow | ||||
| 2.32M | 3.42M | 236.58K | 1.41M | 799.48K | 48.13K | Operating Cash Flow |
| 3.14M | 3.86M | 784.66K | 1.99M | 1.39M | 124.99K | Investing Cash Flow |
| -923.77K | -827.77K | -548.08K | -6.96M | -590.49K | -4.10M | Financing Cash Flow |
| -1.26M | -1.76M | -1.72M | 5.92M | -954.73K | 5.47M |
Intellinetics Technical Analysis
Negative
12.66
Price Trends
13.27
Negative
12.85
Negative
12.69
Negative
Market Momentum
-0.23
Positive
46.24
Neutral
48.08
Neutral
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 12.66 is below the 20-day moving average (MA) of 13.02, below the 50-day MA of 13.27, and below the 200-day MA of 12.69, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 46.24 is Neutral, neither overbought nor oversold. The STOCH value of 48.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INLX.
Intellinetics Risk Analysis
Intellinetics disclosed 42 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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $39.98M | 6.25 | 12.16% | 1.81% | 27.23% | 47.65% | |
61 Neutral | $11.56B | 10.44 | -6.88% | 2.93% | 7.49% | -8.97% | |
61 Neutral | $54.62M | ― | -10.79% | ― | 3.21% | -550.35% | |
53 Neutral | $89.15M | ― | -189.13% | ― | 89.27% | 26.30% | |
37 Underperform | $59.71M | ― | -19.87% | ― | ― | ― |
* Technology Sector Average
Performance Comparison
INLX
Intellinetics
12.66
6.69
112.06%
PHUN
Phunware
2.96
-2.90
-49.49%
DUOT
Duos Technologies Group
7.95
5.69
251.77%
SYT
SYLA Technologies Co., Ltd. ADR
1.50
-0.94
-38.52%
Intellinetics Corporate Events
Business Operations and Strategy
Intellinetics Secures Largest Contract in Company History
Positive
Jun 2, 2025
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.
Private Placements and Financing
Intellinetics Enters $10M At The Market Offering
Neutral
May 28, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.