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 in the prior year. The decline was primarily attributed to a change in activities within a large project for a major customer, which had been expected to continue through 2026. The company is actively expanding its service offerings and capabilities to generate consistent recurring revenue and mitigate such 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 company recorded a net and comprehensive loss of $401,295 for the quarter, compared to net income of $63,523 in Q1 2025. Operating expenses increased year over year, reflecting the integration of Keystone Labs and Innovotech Labs, the relocation of former Keystone Labs operations to a new facility, and investments in a stronger sales organization.
Innovotech continued to advance its strategic transformation, including strengthening its leadership and commercial teams, and completing its OTCQB listing in the United States. The company operates with a strong liquidity position and maintains 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 operational and commercial initiatives required to support long-term growth and reduce revenue concentration risk.”
The company’s unaudited consolidated financial statements and Management’s Discussion and Analysis have been filed on SEDAR+ and the OTCIQ. Innovotech is an established life sciences services and technology company specializing in contract research, analytical, and microbial testing within regulated healthcare markets. It is a recognized leader in biofilm science and antimicrobial testing and provides advanced laboratory services supporting medical device, pharmaceutical, and industrial product development. The company combines deep scientific expertise with proprietary methodologies and products, including its MBEC Assay® platform for high-throughput antimicrobial and antibiotic testing. Operating through ISO-certified and GMP-accredited laboratories, Innovotech supports clients across multiple sectors and geographies, delivering reliable, decision-enabling data aligned with regulatory expectations such as those of the U.S. Food and Drug Administration and Health Canada. More information is available at https://www.innovotech.ca.
