Razor-razorblade business model accelerates, with Q3 cartridge revenue up 59% year-over-year, representing 66% of quarterly sales
Nine-month revenue reaches $3.07 million, up 39% year-over-year, building on record first-half performance
Gross profit margin expands to 50.5% in Q3 and 49.3% for the nine months, improving approximately 800 basis points year-over-year for the nine-month period
NEW YORK, May 13, 2026 (GLOBE NEWSWIRE) -- Intelligent Bio Solutions Inc. (Nasdaq: INBS) ("INBS" or the "Company"), a medical technology company delivering intelligent, rapid, non-invasive testing solutions, today announced its financial results and operational highlights for the fiscal third quarter and nine months ended March 31, 2026, and provided a business update.
"The third quarter marked another period of strong commercial execution and revenue growth," said Harry Simeonidis, President and CEO at INBS. "Cartridge revenue increased 59% year-over-year and accounted for 66% of Q3 revenue, confirming that customer utilization patterns align with our recurring revenue, razor-razorblade business model. Nine-month revenue of $3.07 million reflects consistent and compounding growth, and the business is continuing to strengthen ahead of important FDA regulatory milestones and our anticipated entry into the multi-billion-dollar U.S. market."
"Our results this quarter and over the past nine months demonstrate that we are delivering on our core business fundamentals," said Spiro Sakiris, CFO at INBS. "Q3 gross margin was over 50%, up from 47% a year ago. This growth was driven by operational efficiencies and increased sales volumes. Our value-driven pricing structure has also remained consistent, as customers recognize the efficiency and cost-effectiveness of our fingerprint drug screening technology compared to traditional methods. Our nine-month marketing investment of $1.77 million has been a direct contributor to our 39% revenue growth and successful capital raising of $14.67 million (net of issuance costs), and we are now seeing improved marketing efficiency in Q3, with the quarter's spend down 42% year-over-year while commercial momentum continues to accelerate."
Product Revenue Breakdown
Three Months Ended March 31, 2026 (Q3 Fiscal 2026):
-- Cartridge sales of $703,538, up 59% year-over-year, representing 66% of
Q3 revenue
-- Reader sales of $139,407, declined 16% year-over-year, reflecting normal
quarterly variability following a strong Q2
-- Other sales of $217,857, up 80% year-over-year, representing 21% of Q3
revenue
-- Total revenue of $1.06 million, up 46% year-over-year
-- Gross profit margin of 50.5%, up from 46.8% in the same period the year
prior
-- Cash and cash equivalents of $6.86 million at March 31, 2026, compared to
$740,371 at December 31, 2025
Nine Months Ended March 31, 2026:
-- Cartridge sales of $1.86 million, up 46% year-over-year, representing 61%
of nine-month revenue
-- Reader sales of $672,839, up 29% year-over-year
-- Other sales of $535,942, up 31% year-over-year
-- Total revenue of $3.07 million, up 39% year-over-year
-- Gross profit margin of 49.3%, up from 41.3% in the same period the year
prior
Fiscal Third Quarter and Nine Months Ended March 31, 2026, and Subsequent Highlights
-- Gross margin exceeds 50%: Q3 gross profit margin of 50.47%, up from
46.84% in the prior year period, shows the Company's ability to scale
revenue while improving unit economics.
-- Cartridge revenue up 59% year-over-year: Cartridge sales of $703,538
represented 66% of Q3 revenue, up from 61% a year ago. The installed base
built through prior reader placements is now generating strong, recurring
consumable demand.
-- Nine-month revenue of $3.07 million: Building on the $2.01 million
first-half milestone announced in February 2026, the Company added $1.06
million in revenue in Q3, demonstrating that commercial momentum is
sustained and accelerating.
-- Other sales surge 80% year-over-year: The 80% year-over-year growth in Q3
other sales signals a broadening product ecosystem and expanding revenue
diversification beyond core hardware and consumables.
-- FDA 510(k) regulatory program advancing: The Company continued to make
progress on its planned entry into the multi-billion-dollar U.S. drug
screening market, including successfully completing penetration testing
with no major vulnerabilities identified, completing a clinical cut-off
study, and initiating a validation study for the rapid drug screening
cartridge targeting 70% faster results.
-- New manufacturing partnership: The Company successfully manufactured and
shipped its first readers under the new partnership, supporting improved
margins and production scalability.
-- Bouygues UK partnership: The Company announced a drug-testing rollout
with Bouygues UK, part of the global construction group Bouygues
Construction, adding a significant new customer in the safety-critical
sector.
-- Eighth European patent granted: The Company strengthened its European IP
portfolio with its eighth patent grant, further protecting its
proprietary fingerprint drug screening technology.
Throughout the fiscal third quarter, INBS's growing installed base continued to drive recurring consumable demand. Crossing the 50% gross margin threshold for the first time is a significant operational milestone, reflecting the increasing contribution of higher-margin cartridge sales and the efficiencies being realized through the Company's new manufacturing partnership.
The Company's strategic investment in marketing over the nine-month period has proven its value, contributing directly to revenue growth and successful capital raising, with Q3 marketing spend down 42% year-over-year as brand awareness and market presence continue to mature. For the nine months ended March 31, 2026, cartridge revenue continued to grow as a proportion of total revenue, with gross margin improvement of approximately 800 basis points year-over-year underscoring the improving unit economics of the business as it scales.
INBS's proprietary Intelligent Fingerprinting Drug Screening System continues to gain traction across more than 27 countries, serving hundreds of customers in construction, manufacturing, transportation, mining, and other safety-critical industries where non-invasive, rapid drug screening delivers compelling operational value. With a clearly functioning razor-razorblade commercial model, expanding gross margins, record nine-month revenue, and a regulatory pathway progressing toward the multi-billion-dollar U.S. market, management believes the Company is well-positioned to deliver continued growth through the remainder of fiscal 2026. and beyond.
About Intelligent Bio Solutions Inc.
Intelligent Bio Solutions Inc. (Nasdaq: INBS) is a medical technology company delivering intelligent, rapid, non-invasive testing solutions. The Company believes that its Intelligent Fingerprinting Drug Screening System will revolutionize portable testing through fingerprint sweat analysis, which has the potential for broader applications in additional fields. Designed as a hygienic and cost-effective system, the test screens for the recent use of drugs commonly found in the workplace, including opiates, cocaine, methamphetamine, and cannabis. With sample collection in seconds and results in under ten minutes, this technology would be a valuable tool for employers in safety-critical industries. The Company's current customer segments outside the U.S. include construction, manufacturing and engineering, transport and logistics firms, mining, drug treatment organizations, and coroners.
For more information, visit: https://ibs.inc/
Forward-Looking Statements
Some of the statements in this release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995, and involve risks and uncertainties. Forward-looking statements in this press release include, without limitation, statements regarding Intelligent Bio Solutions Inc.'s ability to successfully develop and commercialize its drug and diagnostic tests, realize commercial benefits from its partnerships and collaborations, secure regulatory clearance or approvals, and timelines to enter the U.S. market, among others. Although Intelligent Bio Solutions Inc. believes that the expectations reflected in such forward-looking statements are reasonable as of the date made, actual results may differ materially from those expressed or implied by such statements. Intelligent Bio Solutions Inc. has attempted to identify forward-looking statements by terminology, including "believes," "estimates," "anticipates," "expects," "plans," "projects," "intends," "potential," "may," "could," "might," "will," "should," and "approximately," or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors, including those described in Intelligent Bio Solutions' public filings with the U.S. Securities and Exchange Commission. Any forward-looking statements contained in this release speak only as of the date of this release. Intelligent Bio Solutions undertakes no obligation to update any forward-looking statements contained in this release to reflect events or circumstances occurring after its date or to reflect the occurrence of unanticipated events.
Company Contact
Intelligent Bio Solutions Inc.
info@ibs.inc
Investor & Media Contact
Valter Pinto, Managing Director
KCSA Strategic Communications
PH: (212) 896-1254
INBS@kcsa.com
Financial Tables to Follow
Intelligent Bio Solutions Inc.
Condensed Consolidated Balance Sheets
As of March 31, As of June 30,
2026 2025
----------------- ----------------
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 6,862,204 $ 1,019,909
Accounts receivable, net 878,357 594,614
Inventories 597,469 635,215
Research and development tax
incentive receivable 568,600 734,408
Assets held for sale - 327,500
Prepaid expenses and other
current assets 843,090 826,976
------------- ------------
Total current assets 9,749,720 4,138,622
Property and equipment, net 312,276 251,325
Operating lease right-of-use
assets 1,801,622 69,520
Intangibles, net 2,999,174 3,790,319
------------- ------------
Total assets $ 14,862,792 $ 8,249,786
============= ============
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities
Accounts payable and accrued
expenses $ 3,635,719 $ 4,534,246
Current portion of operating
lease liabilities 388,746 84,659
Current employee benefit
liabilities 586,637 534,990
Notes payable - 197,146
------------- ------------
Total current liabilities 4,611,102 5,351,041
Employee benefit liabilities,
less current portion 40,696 84,921
Operating lease liabilities,
less current portion 1,459,678 -
------------- ------------
Total liabilities 6,111,476 5,435,962
------------- ------------
Commitments and contingencies
Shareholders' equity
Common stock, $0.01 par value,
100,000,000 shares authorized,
2,001,185 and 2,001,173 shares
issued and outstanding, as of
March 31, 2026, respectively;
732,338 and 732,326 shares
issued and outstanding, as of
June 30, 2025, respectively* 20,012 7,323
Treasury stock, at cost, 12
shares as of March 31, 2026
and June 30, 2025,
respectively* (1) (1)
Additional paid-in capital* 80,497,637 65,849,823
Accumulated deficit (71,056,373) (62,533,065)
Accumulated other comprehensive
loss (499,710) (327,944)
------------- ------------
Total consolidated Intelligent
Bio Solutions Inc. equity 8,961,565 2,996,136
Non-controlling interest (210,249) (182,312)
------------- ------------
Total shareholders' equity 8,751,316 2,813,824
------------- ------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 14,862,792 $ 8,249,786
============= ============
* Common stock and per share amounts have been retroactively
adjusted to reflect a 1-for-10 reverse stock split
effected on December 15, 2025, throughout the unaudited
condensed consolidated financial statements unless
otherwise stated.
Intelligent Bio Solutions Inc.
Condensed Consolidated Statements of Operations and
Other Comprehensive Income (Loss)*
(Unaudited)
2026 2025 2026 2025
----------- ----------- ------------ -----------
Three Months Ended March Nine Months Ended March
31, 31,
------------------------- --------------------------
2026 2025 2026 2025
----------- ----------- ------------ -----------
Revenue $ 1,060,802 $ 728,867 $ 3,069,373 $ 2,208,648
Cost of revenue
(exclusive of
amortization
shown separately
below) (525,421) (387,499) (1,555,962) (1,297,366)
---------- ---------- ----------- ----------
Gross profit 535,381 341,368 1,513,411 911,282
Other income
Government
support income 165,695 173,271 431,682 433,039
Operating
expenses
Selling, general
and
administrative
expenses (2,458,605) (2,414,639) (7,512,388) (6,195,490)
Development and
regulatory
approval
expenses (893,979) (358,351) (1,902,261) (1,814,047)
Depreciation and
amortization (290,393) (301,978) (875,667) (907,577)
Impairment of
long-lived
assets (5,200) - (294,127) -
---------- ---------- ----------- ----------
Total operating
expenses (3,648,177) (3,074,968) (10,584,443) (8,917,114)
---------- ---------- ----------- ----------
Loss from
operations (2,947,101) (2,560,329) (8,639,350) (7,572,793)
Other income
(expense), net
Interest expense (4,241) (7,919) (7,435) (21,027)
Realized foreign
exchange gain
(loss) 32,258 (113) 32,258 (914)
Interest income 49,444 17,687 63,282 92,464
---------- ---------- ----------- ----------
Total other
income
(expense), net 77,461 9,655 88,105 70,523
---------- ---------- ----------- ----------
Net loss (2,869,640) (2,550,674) (8,551,245) (7,502,270)
Net loss
attributable to
non-controlling
interest (6,928) (7,148) (27,937) (23,641)
---------- ---------- ----------- ----------
Net loss
attributable to
Intelligent Bio
Solutions Inc. $(2,862,712) $(2,543,526) $ (8,523,308) $(7,478,629)
========== ========== =========== ==========
Other
comprehensive
income (loss)
Foreign currency
translation gain
(loss) (233,631) 116,007 (171,766) 189,197
---------- ---------- ----------- ----------
Total other
comprehensive
income (loss) (233,631) 116,007 (171,766) 189,197
---------- ---------- ----------- ----------
Comprehensive
loss (3,103,271) (2,434,667) (8,723,011) (7,313,073)
Comprehensive
loss
attributable to
non-controlling
interest (6,928) (7,148) (27,937) (23,641)
---------- ---------- ----------- ----------
Comprehensive
loss
attributable to
Intelligent Bio
Solutions Inc. $(3,096,343) $(2,427,519) $ (8,695,074) $(7,289,432)
========== ========== =========== ==========
Net loss per
share, basic and
diluted* $ (1.80) $ (4.41) $ (7.54) $ (15.92)
========== ========== =========== ==========
Weighted average
shares
outstanding,
basic and
diluted* 1,594,496 577,191 1,129,973 469,849
========== ========== =========== ==========
* Common stock and per share amounts have been retroactively
adjusted to reflect a 1-for-10 reverse stock split
effected on December 15, 2025, throughout the unaudited
condensed consolidated financial statements unless
otherwise stated.
(END) Dow Jones Newswires
May 13, 2026 08:30 ET (12:30 GMT)