Innovotech Inc. (TSX Venture Exchange: IOT; OTCQB: IOTCF) reported financial results for the three months ended March 31, 2026, revealing a 44% decrease in revenue to $648,140 compared to the same period last year. The decline was primarily driven by a change in activities for a large project with a major customer, which had been anticipated to continue through 2026. Management is actively expanding service offerings and capabilities to generate consistent recurring revenue and mitigate client concentration risk.
Gross profit for the quarter was $202,231, yielding a gross margin of 31.2%, down from 53.6% in Q1 2025. Margins were negatively impacted by underutilized capacity as the company maintained staffing and operational readiness in anticipation of executing the planned customer work. The net loss for the quarter totaled $401,295, compared to net income of $63,523 in the prior year. Operating expenses increased year over year, reflecting the integration of Keystone Labs and Innovotech Labs, relocating the former Keystone Labs operations to a new nearby facility, and investments in a stronger sales organization.
Despite the quarterly loss, Innovotech continued to advance its strategic transformation, including strengthening its leadership and commercial teams and completing its OTCQB listing in the U.S. 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 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.”
The unaudited consolidated financial statements and Management’s Discussion and Analysis have been filed on SEDAR+ and the OTCIQ. Innovotech operates through ISO-certified and GMP-accredited laboratories and is a recognized leader in biofilm science and antimicrobial testing. The company provides advanced laboratory services supporting medical device, pharmaceutical, and industrial product development. More information is available at https://www.innovotech.ca.
This press release contains forward-looking statements subject to risks and uncertainties. Factors that could cause actual results to differ include regulatory outcomes, changes in the value of the Canadian dollar, reliance on a small number of customers, and fluctuations in operating results. The company undertakes no obligation to update forward-looking statements except as required by law.
