Q2 2026 Intellinetics Inc Earnings Call

August 12, 2026

Speaker #1: Greetings. Welcome to INTELLINETICS Q2 2026 earnings call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation.

Operator: Greetings. Welcome to Intellinetics' second quarter 2026 earnings call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Joe Spain, CFO. Thank you. You may begin.

Speaker #1: If anyone should require operator assistance, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Joseph Spain, CFO.

Speaker #1: Thank you. You may begin.

Speaker #2: Thank you. Good afternoon, everyone. I am pleased to welcome you to the INTELLINETICS 2026 Q2 conference call. Before we begin, I would. Forward-looking statements regarding INTELLINETICS, Inc. that are not historical facts.

Joseph D. Spain: Thank you. Good afternoon, everyone. I am pleased to welcome you to the Intellinetics 2026 second quarter conference call. Before we begin, I would forward-looking statements regarding Intellinetics, Inc. that are not historical facts. These forward-looking statements are based on the current expectations and beliefs of management, and they are subject to risks and uncertainties that could cause such statements to differ materially from actual future events or results. Intellinetics, Inc. undertakes no duty to update any forward-looking statements. For more information about factors that may cause actual results to differ materially from forward-looking statements, please refer to the press release issued today, as well as risks and uncertainties included in the section under the caption "Risk Factors" and management's discussion and analysis of financial condition and results of operation in Intellinetics' annual report on Form 10-K or the quarterly report on Form 10-Q filed today.

Joe Spain: Thank you. Good afternoon, everyone. I am pleased to welcome you to the Intellinetics 2026 second quarter conference call. Before we begin, I would forward-looking statements regarding Intellinetics, Inc. that are not historical facts. These forward-looking statements are based on the current expectations and beliefs of management, and they are subject to risks and uncertainties that could cause such statements to differ materially from actual future events or results. Intellinetics, Inc. undertakes no duty to update any forward-looking statements. For more information about factors that may cause actual results to differ materially from forward-looking statements, please refer to the press release issued today, as well as risks and uncertainties included in the section under the caption "Risk Factors" and management's discussion and analysis of financial condition and results of operation in Intellinetics' annual report on Form 10-K or the quarterly report on Form 10-Q filed today.

Speaker #2: These forward-looking statements are based on the current expectations and beliefs of management, and they are subject to risks and uncertainties that could cause such statements to differ materially from actual future events or results.

Speaker #2: INTELLINETICS, Inc. undertakes no duty to update any forward-looking statements. For more information about factors that may cause actual results to differ materially from forward-looking statements, please refer to the press release issued today, as well as the risks and uncertainties included in the section under the caption "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in INTELLINETICS' Annual Report on Form 10-K or the Quarterly Report on Form 10-Q filed today.

Speaker #2: Also, please note that on the call today, management will discuss the non-GAAP financial measure, adjusted EBITDA. Non-GAAP financial measures are not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP, and may differ from non-GAAP financial measures presented by other companies.

Joseph D. Spain: Also, please note that on the call today, management will discuss the non-GAAP financial measure, adjusted EBITDA. Non-GAAP financial measures are not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP and may differ from non-GAAP financial measures presented by other companies. A reconciliation between GAAP and non-GAAP measures can be found in the press release issued today. With all that said, I would now like to turn the call over to Alison Forsythe, Intellinetics President and CEO. Alison, the call is yours.

Joe Spain: Also, please note that on the call today, management will discuss the non-GAAP financial measure, adjusted EBITDA. Non-GAAP financial measures are not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP and may differ from non-GAAP financial measures presented by other companies. A reconciliation between GAAP and non-GAAP measures can be found in the press release issued today. With all that said, I would now like to turn the call over to Alison Forsythe, Intellinetics President and CEO. Alison, the call is yours.

Speaker #2: A reconciliation between GAAP and non-GAAP measures can be found in the press release issued today. With all that said, I would now like to turn the call over to Allison Forsythe, Intellinetics President and CEO.

Speaker #2: Allison, the call is yours.

Speaker #3: Thank you, Joe. Good afternoon, everyone, and thank you for joining us. Q2 was my first full quarter as President and CEO of Intellinetics, and I want to start with this.

Alison Forsythe: Thank you, Joe. Good afternoon, everyone, and thank you for joining us. Q2 was my first full quarter as President and CEO of Intellinetics, and I want to start with this. I am confident in the opportunity ahead, and we are moving forward with urgency. Intellinetics has valuable assets. We have software solutions embedded in customer workflows, recurring revenue, strong customer relationships, and deep experience in markets where secure document management, workflow, automation, compliance, and information access matter. We also have a document services business that gives us access to customers with complex document-intensive processes, customers that can often benefit from broader software solutions over time. Our Q2 results reflect both the current state of the business and the opportunity in front of us. Our SaaS revenue grew 4.2% year over year, and software margins remained solid.

Speaker #3: I am confident in the opportunity ahead, and we are moving forward with urgency. Intellinetics has valuable assets. We have software solutions embedded in customer workflows, recurring revenue, strong customer relationships, and deep experience in markets where secure document management, workflow automation, compliance, and information access matter.

Speaker #3: We also have a document services business that gives us access to customers with complex, document-intensive processes—customers who can often benefit from broader software solutions over time.

Speaker #3: Our Q2 results reflect both the current state of the business and the opportunity in front of us. Our SaaS revenue grew 4.2% year over year, and software margins remained solid.

Speaker #3: Total revenue was impacted by lower professional services volume and project timing in Document Services. We understand those dynamics, and we are taking action to improve predictability, sharpen execution, and shift the business over time toward a higher quality recurring revenue mix.

Alison Forsythe: Total revenue was impacted by lower professional services volume and project timing in document services. We understand those dynamics, and we are taking action to improve predictability, sharpen execution, and shift the business over time toward a higher quality recurring revenue mix. We are also seeing encouraging leading indicators. Software bookings improved in H1 of the year. Pipeline coverage strengthened exiting Q2, and we launched our new website, giving us a clearer market presence and a stronger foundation for demand generation. These are important signs that our commercial execution is moving in the right direction. Taken together, these indicators give us confidence that H1 2026 is not representative of the execution profile we are building for H2 and beyond. In H1 of the year, we put several critical operating building blocks in place.

Speaker #3: We are also seeing encouraging leading indicators: software bookings improved in the first half of the year, pipeline coverage strengthened exiting Q2, and we launched our new website, giving us a clearer market presence and a stronger foundation for demand generation.

Speaker #3: These are important signs that our commercial execution is moving in the right direction. Taken together, these indicators give us confidence that the first half of 2026 is not representative of the execution profile we are building for the second half and beyond.

Speaker #3: In the first half of the year, we put several critical operating building blocks in place. We improved our forecasting visibility and strengthened sales pipeline management.

Alison Forsythe: We improved our forecasting visibility, we strengthened sales pipeline management, we established a more consistent management cadence, we improved project oversight, so key initiatives now have clearer owners, timelines, dependencies, and accountability. We are using better operating data to make more disciplined decisions around product, technology, sales, and resource allocation. Compared to where we were at the beginning of the year, we now have better visibility into the software pipeline, a more disciplined management cadence, clearer ownership of key initiatives, a new digital presence in market, and an active product and technology prioritization process underway. These are early changes, but they are meaningful because they give us a stronger operating foundation for H2 2026 and for the larger transformation ahead. H2 2026 is all about execution. First, we are focused on SaaS growth.

Speaker #3: We established a more consistent management cadence. We improved project oversight, so key initiatives now have clearer owners, timelines, dependencies, and accountability. And we are using better operating data to make more disciplined decisions around product, technology, sales, and resource allocation.

Speaker #3: Compared to where we were at the beginning of the year, we now have better visibility into the software pipeline; a more disciplined management cadence; clearer ownership of key initiatives; a new digital presence in market; and an active product and technology prioritization process underway.

Speaker #3: These are early changes, but they are meaningful because they give us a stronger operating foundation for the second half of 2026, and for the larger transformation ahead.

Speaker #3: The second half of 2026 is all about execution. First, we are focused on SaaS growth. We continue to expect double-digit SaaS growth for fiscal 2026, and we are focused on converting software opportunities into recurring revenue.

Alison Forsythe: We continue to expect double-digit SaaS growth for fiscal 2026, and we are focused on converting software opportunities into recurring revenue. Second, we are strengthening our commercial execution. That means clearer product positioning, stronger sales discipline, better partner motions, and more consistent management of opportunities from pipeline to close. Third, we are sharpening product and technology priorities. We are evaluating where to accelerate, where to modernize, where to partner, and where to stop investing. We are not going to spread resources evenly across every product. We are going to allocate talent and capital to the opportunities that can scale. Fourth, we are focused on operating leverage. As we grow recurring revenue and improve execution discipline, we expect to reduce operating variability and improve profitability over time. This is not a one-quarter transformation, but the path is clear.

Speaker #3: Second, we are strengthening our commercial execution. That means clearer product positioning, stronger sales discipline, better partner motions, and more consistent management of opportunities from pipeline to close.

Speaker #3: Third, we are sharpening product and technology priorities. We are evaluating where to accelerate, where to modernize, where to partner, and where to stop investing.

Speaker #3: We are not going to spread resources evenly across every product. We are going to allocate talent and capital to the opportunities that can scale.

Speaker #3: Fourth, we are focused on operating leverage. As we grow recurring revenue and improve execution discipline, we expect to reduce operating variability and improve profitability over time.

Speaker #3: This is not a one-quarter transformation, but the path is clear. Over the next two to four years, we see an opportunity to build Intellinetics into a more focused, scalable software and services company with a larger recurring revenue base, stronger execution discipline, and a more predictable financial model.

Alison Forsythe: Over the next two to four years, we see an opportunity to build Intellinetics into a more focused, scalable software and services company with a larger recurring revenue base, stronger execution discipline, and a more predictable financial model. With that, I will turn it over to Joe to walk through the financials in more detail.

Speaker #3: With that, I'll turn it over to Joe to walk through the financials in more detail.

Speaker #2: Thanks, Allison. I will now review our financial results for the second quarter of 2026. Total revenue for the quarter decreased 1.6% to $3.9 million, as compared to $4 million for the same period last year.

Joe Spain: Thanks, Alison. I will now review our financial results for Q2 2026. Total revenue for the quarter decreased 1.6% to $3.9 million, as compared to $4 million for the same period last year. In more detail, the following are the material components of our revenue presented on our statements of operations. SaaS revenue increased 4.2% year over year to $1.6 million, driven primarily by new payables automation customers. Recurring software revenue continued to represent a growing component of our overall business mix. Software maintenance services were down as expected, decreasing $39,000 or 11.7% from 2025. As a reminder, these maintenance revenues are from support agreements with longtime customers continuing on our legacy premise solution.

Joseph D. Spain: Thanks, Alison. I will now review our financial results for Q2 2026. Total revenue for the quarter decreased 1.6% to $3.9 million, as compared to $4 million for the same period last year. In more detail, the following are the material components of our revenue presented on our statements of operations. SaaS revenue increased 4.2% year over year to $1.6 million, driven primarily by new payables automation customers. Recurring software revenue continued to represent a growing component of our overall business mix. Software maintenance services were down as expected, decreasing $39,000 or 11.7% from 2025. As a reminder, these maintenance revenues are from support agreements with longtime customers continuing on our legacy premise solution.

Speaker #2: In more detail, the following are the material components of our revenue presented on our statements of operations. SaaS revenue increased 4.2% year over year to $1.6 million, driven primarily by new payables automation customers.

Speaker #2: Recurring software revenue continued to represent a growing component of our overall business mix. Software maintenance services were down as expected decreasing 39,000 or 11.7% from 2025.

Speaker #2: As a reminder, these maintenance revenues are from support agreements with long-time customers continuing on our legacy premise solution. Professional services revenue decreased 5.8% to $1.8 million for the quarter, from $1.9 million for the same period last year. As a percentage of total revenue, professional services revenue was 45% of total revenue for the quarter, compared to 47% last year.

Joe Spain: Professional services revenue decreased 5.8% to $1.8 million for the quarter from $1.9 million for the same period last year. As a percentage of total revenue, professional services revenue was 45% of total revenue for the quarter, compared to 47% last year. The decline reflects reduced scanning project activity in our document services segment, driven by the timing of customer projects and a lower backlog during the period. We have since taken orders to refill that backlog. Consolidated gross margin percent decreased 162 basis points to 66.4% for Q2 this year compared to 68% last year. The decrease was driven by professional services, reflecting a product mix shift in document scanning and conversion projects. Importantly, our software margins in both SaaS and maintenance remained solid.

Joseph D. Spain: Professional services revenue decreased 5.8% to $1.8 million for the quarter from $1.9 million for the same period last year. As a percentage of total revenue, professional services revenue was 45% of total revenue for the quarter, compared to 47% last year. The decline reflects reduced scanning project activity in our document services segment, driven by the timing of customer projects and a lower backlog during the period. We have since taken orders to refill that backlog. Consolidated gross margin percent decreased 162 basis points to 66.4% for Q2 this year compared to 68% last year. The decrease was driven by professional services, reflecting a product mix shift in document scanning and conversion projects. Importantly, our software margins in both SaaS and maintenance remained solid.

Speaker #2: The decline reflects reduced scanning, project activity, and our Document Services segment, driven by the timing of customer projects and a lower backlog during the period.

Speaker #2: We have since taken orders to refill that backlog. Consolidated gross margin percent decreased 162 basis points to 66.4% for Q2 this year, compared to 68% last year.

Speaker #2: The decrease was driven by professional services, reflecting a product mix shift in document scanning and conversion projects. Importantly, our software margins in both SaaS and maintenance remained solid.

Speaker #2: Operating expenses increased 14.7% to $3.7 million for Q2 compared to $3.2 million for Q2 '25. The increase was primarily driven by a 24.4% increase in general and administrative expenses from higher variable compensation expense and increased engineering development personnel, as well as share-based compensation expense that increased approximately $229,000 year over year.

Joe Spain: Operating expenses increased 14.7% to $3.7 million for Q2 compared to $3.2 million for Q2 2025. The increase was primarily driven by a 24.4% increase in general and administrative expenses from higher variable compensation expense and increased engineering development personnel, as well as shared-based compensation expense that increased approximately $229,000 year over year. These increases were partially offset by a 13.9% decrease in sales and marketing expense and an 8.7% decrease in depreciation and amortization. Net loss for Q2 was $1.1 million, compared to net loss of $600,000 for the same period last year. The primary drivers were lower gross profit on reduced professional services revenue from our document services segment, together with higher G&A expenses, including the share-based compensation.

Joseph D. Spain: Operating expenses increased 14.7% to $3.7 million for Q2 compared to $3.2 million for Q2 2025. The increase was primarily driven by a 24.4% increase in general and administrative expenses from higher variable compensation expense and increased engineering development personnel, as well as shared-based compensation expense that increased approximately $229,000 year over year. These increases were partially offset by a 13.9% decrease in sales and marketing expense and an 8.7% decrease in depreciation and amortization. Net loss for Q2 was $1.1 million, compared to net loss of $600,000 for the same period last year. The primary drivers were lower gross profit on reduced professional services revenue from our document services segment, together with higher G&A expenses, including the share-based compensation.

Speaker #2: These increases were partially offset by a 13.9% decrease in sales and marketing expense and an 8.7% decrease in depreciation and amortization. Net loss for Q2 was $1.1 million, compared to a net loss of $600,000 for the same period last year.

Speaker #2: The primary drivers were lower gross profit on reduced professional services revenue from our Document Services segment, together with higher G&A expenses, including the share-based compensation.

Speaker #2: Loss per share was $0.24 compared to a loss per share of $0.13 last year. Our adjusted EBITDA for the quarter was $371,000, compared to an adjusted EBITDA profit of $28,000 in the same period last year, reflecting approximately $108,000 of lower gross profit, again driven by the Document Services segment together with expenses.

Joe Spain: Loss per share was $0.24 per share, compared to loss per share of $0.13 last year. Our adjusted EBITDA for the quarter was $331,000, compared to adjusted EBITDA profit of $28,000 in the same period last year, reflecting approximately $108,000 of lower gross profit, again, driven by document services segment together with higher cash operating expenses. Quickly turning to six-month results. Total revenue for the first six months decreased 4.9%, to $7.9 million, as compared to $8.3 million last year. SaaS revenue increased 2.2% to $3.2 million, led by new Payables Automation customers. Professional services revenues decreased 10.3%, ending at $3.6 million compared to $4.1 million last year on lower scanning project volume in our document services segment. Consolidated gross margin was 64.9% compared to 67.3% last year. Same as Q2, the decline was driven by the professional services mix, partially offset by stronger storage and retrieval margins.

Joseph D. Spain: Loss per share was $0.24 per share, compared to loss per share of $0.13 last year. Our adjusted EBITDA for the quarter was $331,000, compared to adjusted EBITDA profit of $28,000 in the same period last year, reflecting approximately $108,000 of lower gross profit, again, driven by document services segment together with higher cash operating expenses. Quickly turning to six-month results. Total revenue for the first six months decreased 4.9%, to $7.9 million, as compared to $8.3 million last year. SaaS revenue increased 2.2% to $3.2 million, led by new Payables Automation customers. Professional services revenues decreased 10.3%, ending at $3.6 million compared to $4.1 million last year on lower scanning project volume in our document services segment. Consolidated gross margin was 64.9% compared to 67.3% last year. Same as Q2, the decline was driven by the professional services mix, partially offset by stronger storage and retrieval margins.

Speaker #2: Quickly turning to six-month results, total revenue for the first six months decreased 4.9% to 7.9 million as compared to 8.3 million last year. SaaS revenue increased 2.2% to 3.2 million led by new payables automation customers.

Speaker #2: Professional services revenues decreased 10.3%, ending at $3.6 million compared to $4.1 million last year, on lower scanning project volume in the Document Services segment.

Speaker #2: Consolidated gross margin was 64.9%, compared to 67.3% last year, same as Q2. The decline was driven by the professional services mix, partially offset by stronger storage and retrieval margins, as noted earlier.

Joe Spain: As noted earlier, our software margins by revenue line remained solid. Operating expenses increased 9.3% to $7.4 million for the first six months of 2026, compared to $6.7 million in 2025. This increase is driven by two primary factors. First, general and administrative expenses increased 16.4%, including approximately $430,000 of non-recurring CEO transition costs incurred in the first quarter, as well as higher variable compensation expense and expanded engineering development personnel through the first six months. Second, partially offsetting that increase, sales and marketing expense decreased 13.8%, and depreciation and amortization decreased 5.1%. Six-month net loss was $2.2 million, compared to net loss of $1.3 million last year. Net loss per basic and diluted share was $0.51, compared to net loss per basic and diluted share of $0.31 in 2025.

Joseph D. Spain: As noted earlier, our software margins by revenue line remained solid. Operating expenses increased 9.3% to $7.4 million for the first six months of 2026, compared to $6.7 million in 2025. This increase is driven by two primary factors. First, general and administrative expenses increased 16.4%, including approximately $430,000 of non-recurring CEO transition costs incurred in the first quarter, as well as higher variable compensation expense and expanded engineering development personnel through the first six months. Second, partially offsetting that increase, sales and marketing expense decreased 13.8%, and depreciation and amortization decreased 5.1%. Six-month net loss was $2.2 million, compared to net loss of $1.3 million last year. Net loss per basic and diluted share was $0.51, compared to net loss per basic and diluted share of $0.31 in 2025.

Speaker #2: Our software margins by revenue line remained solid. Operating expenses increased 9.3% to $7.4 million for the first six months of '26, compared to $6.7 million in '25.

Speaker #2: This increase is driven by two primary factors. First, general and administrative expenses increased 16.4%, including approximately $430,000 of non-recurring CEO transition costs incurred in the first quarter.

Speaker #2: As well as higher variable compensation expense and expanded engineering development personnel through the first six months. Second, partially offsetting that increase, sales and marketing expense decreased 13.8%, and depreciation and amortization decreased 5.1%.

Speaker #2: Six-month net loss was $2.2 million compared to a net loss of $1.3 million last year. Net loss per basic and diluted share was $0.51 compared to net loss per basic and diluted share of $0.31 in 2025.

Speaker #2: Six months adjusted EBITDA was a loss of $659,000, compared to positive adjusted EBITDA of $104,000 for the same period in '25. The decline reflects approximately $453,000 of lower gross profit on reduced professional services volume and margin, together with higher cash operating expenses.

Joe Spain: Six months adjusted EBITDA was a loss of -$659,000, compared to positive adjusted EBITDA of $104,000 for the same period in 2025. The decline reflects approximately $453,000 of lower gross profit on reduced professional services volume and margin, together with higher cash operating expenses. Next, a brief overview of the balance sheet. At 30 June 2026, we had cash of $1.7 million and accounts receivable net of $700,000. Our total assets were $15.6 million, including $8.5 million in intangible assets and goodwill as part of acquisitions made since 2020. Total liabilities were $5.8 million, including $2.9 million in deferred revenues, reflecting signed SaaS and maintenance contracts. We had no debt as of 30 June 2026, nor any borrowings to date. I'd like to wrap up with a brief financial outlook, which is unchanged from our prior guidance.

Joseph D. Spain: Six months adjusted EBITDA was a loss of -$659,000, compared to positive adjusted EBITDA of $104,000 for the same period in 2025. The decline reflects approximately $453,000 of lower gross profit on reduced professional services volume and margin, together with higher cash operating expenses. Next, a brief overview of the balance sheet. At 30 June 2026, we had cash of $1.7 million and accounts receivable net of $700,000. Our total assets were $15.6 million, including $8.5 million in intangible assets and goodwill as part of acquisitions made since 2020. Total liabilities were $5.8 million, including $2.9 million in deferred revenues, reflecting signed SaaS and maintenance contracts. We had no debt as of 30 June 2026, nor any borrowings to date. I'd like to wrap up with a brief financial outlook, which is unchanged from our prior guidance.

Speaker #2: Next, a brief overview of the balance sheet at June 30, '26. We had cash of $1.7 million and accounts receivable, net of $700,000. Our total assets were $15.6 million, including $8.5 million in intangible assets and goodwill as part of acquisitions made since 2020.

Speaker #2: Total liabilities were $5.8 million, including $2.9 million in deferred revenues reflecting signed SaaS and maintenance contracts. We had no debt as of June 30, 2026, nor any borrowings to date.

Speaker #2: I'd like to wrap up with a brief financial outlook, which is unchanged from our prior guidance. Based on our current plans and assumptions, and subject to the risks and uncertainties we described in our filings and during this call, management remains focused on accelerating SaaS growth and currently expects double-digit year-over-year SaaS growth for fiscal 2026.

Joseph D. Spain: Based on our current plans and assumptions and subject to risks and uncertainties we described in our filings and this call, management remains focused on accelerating SaaS growth and currently expects double-digit year-over-year SaaS growth for fiscal 2026. Now, back to Alison Forsythe for some final remarks.

Joe Spain: Based on our current plans and assumptions and subject to risks and uncertainties we described in our filings and this call, management remains focused on accelerating SaaS growth and currently expects double-digit year-over-year SaaS growth for fiscal 2026. Now, back to Alison Forsythe for some final remarks.

Speaker #2: And now, back to Allison for some final remarks.

Speaker #1: Thanks, Joe. Before we close, I want to leave investors with a key message: we are actively reshaping Intellinetics around the future opportunities we see in the business.

Alison Forsythe: Thanks, Joe. Before we close, I want to leave investors with a key message. We are actively reshaping Intellinetics around the future opportunity we see in the business. In H1, we built a stronger operating foundation, better visibility, stronger pipeline discipline, improved project oversight, a new website, and a more consistent management cadence. In H2, the focus is execution, converting software opportunities, strengthening commercial performance, making sharper product and technology decisions, and building a more scalable operating model. The opportunity over the next 2 to 4 years is meaningful. We believe Intellinetics can become a more focused software and services company with a larger recurring revenue base, better operating leverage, and a clearer path to improved profitability. 6 months in, I am encouraged by the progress we are making.

Speaker #1: In the first half of the year, we built a stronger operating foundation, better visibility, stronger pipeline discipline, improved project oversight, a new website, and a more consistent management cadence.

Speaker #1: In the second half, the focus is execution: converting software opportunities, strengthening commercial performance, making sharper product and technology decisions, and building a more scalable operating model.

Speaker #1: The opportunity over the next two to four years is meaningful. We believe Intellinetics can become a more focused software and services company with a larger recurring revenue base, better operating leverage, and a clearer path to improved profitability.

Speaker #1: Six months in, I am encouraged by the progress we are making. We have better visibility, stronger operating discipline, clearer execution priorities, and a more focused view of where we need to invest.

Alison Forsythe: We have better visibility, stronger operating discipline, clearer execution priorities, and a more focused view of where we need to invest. We still have work to do, but we are moving with urgency and building momentum. I look forward to updating you on our continued progress. Sherry, we will now turn the call back to you.

Speaker #1: We still have work to do, but we are moving with urgency and building momentum. I look forward to updating you on our continued progress.

Speaker #1: Sherry, I will now turn the call back to you.

Speaker #3: Thank you. We will now have a question-and-answer session. If you would like to ask a question, please press *1 on your telephone keypad.

Operator: Thank you. We will now have a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. We will pause for a brief moment to poll for questions. There are no questions at this time, so I will conclude today's conference. You may disconnect your lines at this time, and thank you for your participation.

Speaker #3: A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue.

Speaker #3: And for participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. We will pause for a brief moment to pull for questions.

Speaker #3: There are no questions at this time, so I will conclude today's conference. You may disconnect your lines at this time and thank you for your participation.