Intelligent Bio Solutions Reports Fiscal Third Quarter Revenue Growth of 46% Year-over-Year
Rhea-AI Summary
Intelligent Bio Solutions (Nasdaq: INBS) reported fiscal Q3 2026 revenue of $1.06 million, up 46% year-over-year, with cartridge sales rising 59% and contributing 66% of revenue. Gross margin reached 50.5%, nine-month revenue grew 39% to $3.07 million, and cash was $6.86 million.
The company highlighted progress toward FDA 510(k) clearance, a new manufacturing partnership, a Bouygues UK rollout, and its eighth European patent for its fingerprint drug screening technology.
AI-generated analysis. Not financial advice.
Positive
- Q3 2026 revenue $1.06 million, up 46% year-over-year
- Q3 cartridge revenue $703,538, up 59% and 66% of sales
- Nine-month revenue $3.07 million, up 39% year-over-year
- Q3 gross margin 50.5%, up from 46.8% year-over-year
- Nine-month gross margin 49.3%, about 800 bps higher year-over-year
- Cash and equivalents $6.86 million vs. $0.74 million at December 31, 2025
Negative
- Q3 reader sales $139,407, down 16% year-over-year
News Market Reaction – INBS
On the day this news was published, INBS gained 25.47%, reflecting a significant positive market reaction. Argus tracked a peak move of +54.4% during that session. Our momentum scanner triggered 15 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $2M to the company's valuation, bringing the market cap to $11.19M at that time. Trading volume was above average at 1.8x the daily average, suggesting increased trading activity.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Peer moves appear mixed: among key peers, one scanner-flagged name (SINT) was up ~9.58% without news, while others showed varied smaller moves. This suggests INBS trading reflects stock-specific factors rather than a clear sector trend.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 12 | Q2 2026 earnings | Positive | -6.7% | Q2 revenue up 48% YoY, H1 margin improved to 49%, plus $10M placement. |
| Nov 12 | Q1 2026 earnings | Positive | -1.7% | Record Q1 revenue, higher cartridge mix, margin up 690 bps, new accounts. |
| May 13 | Q3 2025 earnings | Positive | +11.5% | 20% sequential revenue growth, 91% YoY gross profit growth, more accounts. |
| Feb 13 | Q2 2025 earnings | Positive | -4.8% | Higher gross margin and new accounts but higher net loss and lower sales. |
| Nov 07 | Q1 2025 earnings | Positive | +13.2% | Revenue up 10% YoY and 20% QoQ, cartridge-led growth, advancing FDA plans. |
Earnings releases typically highlight strong revenue and margin expansion, but share-price reactions have been mixed, with several prior positive reports followed by negative next-day moves.
Over the past five earnings releases, INBS has consistently reported revenue growth and improving gross margins, particularly from higher-margin cartridge sales and expanding global accounts. Prior quarters featured record revenues, margin gains of several hundred basis points, and capital raises such as a $10.0M private placement. Despite this, price reactions have been split between gains and selloffs, indicating that strong operational updates have not always translated into sustained positive trading responses.
Historical Comparison
INBS earnings headlines have averaged a 2.29% next-day move. Today’s pre-news change of 1.27% sits within the typical range seen after prior financial result updates.
Earnings updates show a progression of rising cartridge-driven revenue, expanding gross margins, and recurring-revenue traction, supported by capital raises and manufacturing scale to prepare for broader market entry.
Regulatory & Risk Context
An effective Form S-3 resale registration dated Jan 9, 2026 covers 6,896,550 shares from a prior private placement. The company received $10.0 million gross in that deal and could receive up to $18.87 million upon full cash exercise of registered warrants, which may add selling pressure if large blocks are resold.
Market Pulse Summary
The stock surged +25.5% in the session following this news. A strong positive reaction aligns with INBS’s report of 46% Q3 revenue growth, cartridge sales up 59%, and gross margins above 50%. Historically, earnings moves have averaged about 2.29% with mixed follow-through, so outsized gains have not always persisted. Investors would need to weigh recurring cartridge traction and higher cash balances against potential selling from registered resale shares and past instances where positive fundamentals were followed by pullbacks.
Key Terms
razor-razorblade business model financial
gross profit margin financial
510(k) regulatory
penetration testing technical
validation study medical
clinical cut-off study medical
at-the-market financial
AI-generated analysis. Not financial advice.
Razor-razorblade business model accelerates, with Q3 cartridge revenue up
Nine-month revenue reaches
Gross profit margin expands to
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
"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
Product Revenue Breakdown
Three Months Ended March 31, 2026 (Q3 Fiscal 2026):
- Cartridge sales of
$703,538 , up59% year-over-year, representing66% of Q3 revenue - Reader sales of
$139,407 , declined16% year-over-year, reflecting normal quarterly variability following a strong Q2 - Other sales of
$217,857 , up80% year-over-year, representing21% of Q3 revenue - Total revenue of
$1.06 million , up46% year-over-year - Gross profit margin of
50.5% , up from46.8% 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 , up46% year-over-year, representing61% of nine-month revenue - Reader sales of
$672,839 , up29% year-over-year - Other sales of
$535,942 , up31% year-over-year - Total revenue of
$3.07 million , up39% year-over-year - Gross profit margin of
49.3% , up from41.3% 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 of50.47% , up from46.84% 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 represented66% of Q3 revenue, up from61% 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: The80% 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
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
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, | 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 31, | Nine Months Ended March 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. |
