Innovotech Inc. reported financial results for the first quarter ended March 31, 2026, revealing a 44% decline in revenue to $648,140 compared to the same period last year. The decrease was driven almost entirely by a change in activities within a large project for a major customer, which had been expected to continue through 2026. Management is actively expanding the company's service offerings and capabilities to generate consistent recurring revenue and mitigate client concentration risk.
Gross profit for the quarter was $202,231, with 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 loss of $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, 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 maintains a strong liquidity position and a meaningful equity base, providing flexibility to manage near-term volatility while continuing to execute 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 a 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, providing advanced laboratory services supporting medical device, pharmaceutical, and industrial product development. The company operates through ISO-certified and GMP-accredited laboratories and supports clients across multiple sectors. More information is available at https://www.innovotech.ca.
The original press release is available at www.newmediawire.com.
