Innovotech Reports 44% Revenue Drop in Q1 2026 Amid Customer Project Shift, Advances Strategic Transformation

Innovotech Inc. (TSX Venture Exchange: IOT; OTCQB: IOTCF) announced its financial results for the first quarter ended March 31, 2026, revealing a 44% decrease in revenue to $648,140 compared to the same period last year. The decline was primarily attributed to a change in activities for a large project with a major customer, which had been anticipated to continue through 2026. The company reported a net loss of $401,295 for the quarter, versus net income of $63,523 in Q1 2025.

Gross profit fell to $202,231, with gross margin dropping to 31.2% from 53.6% in the prior year. Margins were negatively impacted by underutilized capacity as Innovotech maintained staffing and operational readiness in expectation of executing the planned customer work. Operating expenses increased year over year due to 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.

Despite the challenging quarter, 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 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.”

Innovotech is a life sciences services and technology company focusing on applied microbiology, analytical chemistry, and regulated laboratory services. It operates through ISO-certified and GMP-accredited laboratories, supporting clients across medical device, pharmaceutical, and industrial product development. The company’s MBEC Assay® platform is widely used for high-throughput antimicrobial and antibiotic testing. More information is available at https://www.innovotech.ca.

The unaudited consolidated financial statements and Management’s Discussion and Analysis have been filed on SEDAR+ and the OTCIQ. The company cautions that forward-looking statements in this release are subject to risks and uncertainties, including regulatory outcomes, customer concentration, and fluctuations in operating results.