Intellinetics Reports $4.25 Million Revenue in Q1 2025, Faces Loss from Operations

Intellinetics, Inc. reported a total revenue of $4.25 million for the first quarter of 2025, reflecting a decrease of 5.8% compared to $4.51 million in the same period of 2024. The decline was primarily attributed to a 13.2% drop in professional services revenue, which fell to $2.16 million from $2.49 million year-over-year. In contrast, the company experienced a 9.8% increase in Software as a Service (SaaS) revenue, which rose to $1.54 million, up from $1.41 million in the prior year. The overall gross profit margin improved to 67.6%, compared to 64.3% in the first quarter of 2024, driven by a reduction in the cost of revenues, which decreased by 14.3% to $1.38 million.

Operating expenses for the quarter increased by 21.1% to $3.55 million, largely due to heightened investments in sales and marketing initiatives. This led to a loss from operations of $684,559, a significant increase from a loss of $34,480 in the first quarter of 2024. The net loss for the quarter was $727,565, translating to a basic and diluted net loss per share of $0.17, compared to a net loss of $174,714, or $0.04 per share, in the previous year. The company also reported a net cash outflow from operating activities of $110,353, a stark contrast to the $611,766 cash inflow recorded in the same quarter of 2024.

Intellinetics continues to focus on its strategic initiatives, including the expansion of its SaaS offerings and enhancing its sales force effectiveness. The company operates through two segments: Document Management and Document Conversion. The Document Management segment generated $1.96 million in revenue, up from $1.82 million, while the Document Conversion segment saw a decline to $2.29 million from $2.69 million. The company’s customer base remains concentrated, with the State of Michigan accounting for 42% of total revenues in the first quarter of 2025.

As of March 31, 2025, Intellinetics had 150 employees, a decrease from 180 employees a year earlier. The company’s total assets were reported at $17.96 million, down from $18.57 million at the end of 2024. The company’s cash position also declined, with cash and cash equivalents at $2.14 million compared to $2.49 million at the end of the previous year. Looking ahead, Intellinetics anticipates that its capital resources, including cash and expected operational cash flows, will be sufficient to meet its anticipated cash flow needs for at least the next 12 months, despite the ongoing economic uncertainties.