Innovotech Inc. (TSX Venture Exchange: IOT; OTCQB: IOTCF) announced its financial results for the first quarter ended March 31, 2026, revealing a 44% decrease in revenue compared to the same period in 2025. The revenue for the quarter was $648,140, down from $1.16 million in Q1 2025. The decline was primarily attributed to a change in activities for a large project with a major customer that had been expected to continue through 2026. In response, management is actively expanding the company's service offerings and capabilities to generate more consistent recurring revenue and reduce client concentration risk.
Gross profit for the quarter was $202,231, yielding a gross margin of 31.2%, a significant drop from 53.6% in the prior year. The margin compression was driven by underutilized capacity, as the company maintained staffing and operational readiness in anticipation of executing the planned customer work. Operating expenses increased year over year, reflecting the integration of Keystone Labs and Innovotech Labs, the relocation of Keystone Labs operations to a new facility, and investments in a stronger sales organization. As a result, the company recorded a net loss of $401,295 for the quarter, compared to net income of $63,523 in Q1 2025.
Despite the challenging quarter, Innovotech continued to advance its strategic transformation. The company strengthened its leadership and commercial teams and completed its listing on the OTCQB in the United States. It maintains a strong liquidity position and a meaningful equity base, providing flexibility to manage near-term volatility while executing its long-term strategy. CEO Craig Milne stated, “Management remains committed to investing in a more diversified, resilient, and scalable platform. The Company is continuing to execute its transformation strategy with a focus on the operational and commercial initiatives required to support long-term growth and reduce revenue concentration risk.”
Innovotech is a life sciences services and technology company specializing in applied microbiology, analytical chemistry, and regulated laboratory services. The company is a recognized leader in biofilm science and antimicrobial testing, providing advanced laboratory services for medical device, pharmaceutical, and industrial product development. Its proprietary MBEC Assay® platform is widely used for high-throughput antimicrobial and antibiotic testing. Operating through ISO-certified and GMP-accredited laboratories, Innovotech supports clients across multiple sectors and geographies. The unaudited consolidated financial statements and Management’s Discussion and Analysis have been filed on SEDAR+ and OTCIQ. More information is available at https://www.innovotech.ca.
