Innovotech Inc. (TSX Venture Exchange: IOT; OTCQB: IOTCF) reported a 44% decline in revenue for the three months ended March 31, 2026, driven almost entirely by reduced activity in a large project for a major customer. The company, which provides applied microbiology and analytical chemistry services, posted revenue of $648,140, down from $1.15 million in Q1 2025. Gross profit fell to $202,231, with gross margin contracting to 31.2% from 53.6% in the prior year, as the company maintained staffing and operational readiness for expected work that did not materialize.
The net loss for the quarter was $401,295, compared to net income of $63,523 in the same period last year. Operating expenses increased due to the integration of Keystone Labs and Innovotech Labs, relocation costs, and investments in a stronger sales organization. Despite the downturn, the company maintains a strong liquidity position and a meaningful equity base, providing flexibility to manage near-term volatility while executing its longer-term strategy.
CEO Craig Milne emphasized the company's commitment to building a more diversified and resilient platform. “Management remains committed to investing in a more diversified, resilient, and scalable platform,” Milne said. “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 has been advancing its strategic transformation, including strengthening its leadership team and completing its OTCQB listing in the U.S. The company is expanding its service offerings and capabilities to generate consistent recurring revenue and mitigate client concentration risk. As part of this effort, Innovotech operates through ISO-certified and GMP-accredited laboratories, supporting clients across multiple sectors and geographies.
The company’s unaudited consolidated financial statements and Management’s Discussion and Analysis have been filed on SEDAR+ and the OTCIQ. Innovotech specializes in contract research, analytical, and microbial testing within regulated healthcare markets, and is recognized as a leader in biofilm science and antimicrobial testing. Its proprietary MBEC Assay® platform is widely used for high-throughput antimicrobial and antibiotic testing.
The results highlight the challenges faced by life sciences services firms that depend on a small number of large customers. The company’s forward-looking statements note risks such as regulatory outcomes, currency fluctuations, and reliance on key strategic relationships. Innovotech does not undertake to update forward-looking statements except as required by law.
For more information, visit Innovotech's website at https://www.innovotech.ca.
