Intellinetics secures a record $40 million contract

COLUMBUS, Ohio - Intellinetics, Inc. (NYSE American: INLX), a company specializing in digital transformation solutions, has been awarded a five-year contract estimated at $40 million for document scanning and micrographic conversion services. The contract, which commenced on Monday, represents the largest deal in the company’s history and spans from June 1, 2025, through May 31, 2030, with an option to extend for an additional five years. The contract value represents more than double the company’s current annual revenue of $17.76 million. According to InvestingPro data, Intellinetics maintains a strong gross profit margin of 64.73%.

The contract was secured with a longstanding customer following a competitive evaluation process that assessed quality assurance, security, personnel, and service scope. While the total contract value is based on the customer’s procurement budget, it is subject to change at the customer’s discretion. The company’s stock, currently trading at $12.84, appears overvalued according to InvestingPro Fair Value metrics, despite showing impressive returns of over 112% in the past year.

James F. DeSocio, President & CEO of Intellinetics, highlighted the contract as a testament to the company’s expertise and commitment to delivering high-quality services. He emphasized that the renewal positions Intellinetics for sustained success over the next decade and underlines the company’s focus on growth in both project-oriented services and Software as a Service (SaaS) solutions.

Intellinetics, headquartered in Columbus, Ohio, offers a suite of services, including the IntelliCloud™ content management platform, business process outsourcing, document scanning, micrographics, and records storage. The company caters to a variety of sectors, particularly those with intensive regulatory and risk management requirements, such as healthcare, education, public safety, and government agencies.

The press release also contains forward-looking statements regarding Intellinetics’ future business prospects, financial performance, and strategic direction. However, these statements involve risks and uncertainties, including the possibility of contract termination or reduction by government customers and changes in economic conditions.

Intellinetics uses non-GAAP financial measures, such as Total Contract Value, to provide a better understanding of current sales performance, although these are not a replacement for total revenue reporting. The company has not reconciled Total Contract Value to any GAAP measure as there is no directly comparable GAAP measure.

This news article is based on a press release statement from Intellinetics, Inc.

In other recent news, Intellinetics Inc. reported a significant earnings miss for the first quarter of 2025, with earnings per share (EPS) at -$0.17, falling short of the expected -$0.07. The company’s revenue also came in below projections, totaling $4.25 million compared to the anticipated $4.6 million. Despite these results, Intellinetics experienced growth in its SaaS revenue, which increased by 9.8%, and an improved gross margin of 67.6%. The company noted a substantial net loss of $728,000, a considerable increase from the $175,000 loss in the previous year. Intellinetics continues to invest in scaling its business, with plans to expand its SaaS offerings and enter new markets, such as the K-12 sector. These strategic moves are part of the company’s efforts to drive future revenue growth. The firm also highlighted a project queue worth $3 million for professional services, indicating a strong pipeline. Despite the financial setbacks, the company remains focused on its growth strategy, emphasizing the transformative potential of its payables automation solution.

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