Intelligent Bio 2026 Q1 Earnings 50% EPS Improvement Despite Widening Net Loss

The company surpassed expectations with 27.5% revenue growth and a 50% narrower per-share loss, though net loss widened to $2.99 million. Management highlighted sequential revenue acceleration and margin expansion, while cautioning ongoing operational costs. Forward guidance emphasized international expansion and product innovation without explicit targets.

Revenue

Intelligent Bio’s total revenue surged 27.5% year-over-year to $1.11 million in Q1 2026. Cartridge sales, the company’s core consumable product, drove growth, contributing $640,300 (57.6% of revenue), a significant increase from 51.1% in the prior-year period. Reader sales added $286,913, while other revenue streams, including services and accessories, totaled $184,584. The shift toward higher-margin cartridges and strategic customer expansion underscored the company’s recurring revenue model.

Earnings/Net Income

Despite a 50% reduction in per-share loss to $0.35, the net loss widened to $-2.99 million in Q1 2026, a 11.1% increase from $-2.69 million in the prior-year quarter. While gross profit margins improved to 46.6%, operational costs, including selling and administrative expenses, outpaced revenue gains.

Summary:

The EPS improvement reflects progress, but the net loss expansion highlights persistent financial pressures.

Price Action

The stock price of Intelligent Bio has edged down 0.96% during the latest trading day, has dropped 3.62% during the most recent full trading week, and has plummeted 25.89% month-to-date.

Post-Earnings Price Action Review

The strategy of buying Intelligent Bio (INBS) shares on the date of its revenue raise announcement and holding for 30 days yielded positive returns, with an average gain of 12.5% per quarter. This outperformed the SPY ETF, which had an average quarterly return of 2.5% over the same period. The results indicate a promising short-term strategy aligned with INBS's growth prospects.

CEO Commentary

Harry Simeonidis, President and CEO at Intelligent Bio Solutions, highlighted record quarterly revenue of $1.11 million, reflecting 32% sequential and 28% year-over-year growth driven by cartridge sales and customer expansion. He emphasized improved gross profit margins (46.6% year-over-year) and the strategic focus on consumables as key growth drivers. Simeonidis expressed optimism about sustained expansion, regulatory progress toward FDA clearance, and international market opportunities, underscoring the company’s momentum in non-invasive drug screening adoption.

Guidance

The company expects continued revenue diversification through international expansion, strategic partnerships, and product innovation (e.g., SmarTest® Patch). Forward-looking statements note positioning to capitalize on growth opportunities via operational leverage, margin expansion, and customer acquisition improvements. While no explicit numerical guidance is provided, leadership anticipates accelerating revenue per account and scaling deployments, supported by financial discipline and regulatory pathway advancements.

Additional News

Intelligent Bio secured a multi-site contract in London covering 4,400 staff, launched the SmarTest® Patch for continuous drug detection, and signed a global distribution agreement with SMARTOX for markets outside the U.S. and Canada. These developments underscore international expansion and product diversification. The company also added 33 new customer accounts, bringing total active accounts to 492 across 24+ countries.