Negative Points

• Consolidated Adjusted EBITDA remained negative at approximately -$1.0 million in Q2 2026, reflecting ongoing corporate and public company costs.

• The company continues to require additional capital to fund operations and growth, as evidenced by the new $15 million equity purchase facility with Alumni Capital.

• Net cash used in operating activities was $3.0 million in the first half of 2026, indicating persistent cash burn despite improvements.

• Cost of services increased to $1.4 million in Q2 2026, partly due to one-time staffing costs at the Georgia clinic, pressuring margins.

• The company's reliance on acquisitions for growth carries integration risks, and the pipeline's success is not guaranteed, as acknowledged by management.

Q & A Highlights

Q: What is the current appetite in the market for fertility clinics to be acquired, and can you provide details on INVO's acquisition pipeline? A: Steve Shum, CEO, stated that while over half of the fertility industry has been consolidated within the private market, a fair number of clinics remain independently operated. He noted that many of these clinics are interested in joining a larger network, and INVO's public platform offers them an alternative route with certain advantages. He expressed confidence in executing additional acquisitions, citing ongoing conversations with several potential operators.

Q: Can you provide more details on the non-cash gain on remeasurement related to the Birmingham acquisition mentioned in the financial results? A: Terah Krigsvold, CFO, explained that the approximately $2.5 million gain was essentially the estimated fair value measurement of INVO's existing investment in the Birmingham Clinic at the time the company acquired the remaining 50% ownership interest. She clarified that this gain is not part of recurring operations.

Q: What are the broader market tailwinds currently impacting the fertility industry? A: Steve Shum, CEO, highlighted that the fertility industry benefits from a large potential patient population and steady progress toward improving affordability, particularly through better patient insurance options. He noted that supportive policy efforts from the current administration have enhanced this backdrop, and these affordability efforts are expected to drive further demand and growth for the entire industry.

Q: What were the key drivers of the 17% revenue increase in the second quarter of 2026? A: Terah Krigsvold, CFO, reported that revenue increased to $2.18 million, up approximately $312,000 from $1.86 million in the prior year quarter. The increase was primarily attributable to the full-quarter contribution from Family Beginnings in Indiana, which was acquired in February, along with continued organic growth initiatives across the clinic network.

Q: How is the company's clinic-level profitability trending, and why is this an important metric? A: Steve Shum, CEO, emphasized that clinic-level Adjusted EBITDA was approximately $333,000 for Q2 2026, compared with $164,000 in Q1 2026 and $951,000 for the full year 2025. He stated that this is one of the most important facts for investors to understand, as it demonstrates that the clinics are generating positive operating margin earnings, providing a real economic base from which to grow.

Q: What is the company's strategy for growing the clinics it already owns? A: Steve Shum, CEO, explained that INVO is building a platform that pairs strong local physicians and care teams with centralized resources across finance, billing, HR, administration, operations, and marketing. The objective is to allow clinical teams to spend more time on patients, improve execution and accountability, and help each clinic increase volumes and broaden services, while preserving the strength and reputation of each local practice.

Q: What was the impact of the Birmingham acquisition on the company's operational control and financials? A: Steve Shum, CEO, stated that acquiring the remaining ownership interests in the Birmingham, Alabama clinic gives INVO greater operational control, allows for consolidation of its results prospectively, and increases participation in the clinic's future economics. It also enables the company to apply its shared service approach more directly across billing, finance, HR, and administration.

Q: What is the company's financial priority and how does it plan to achieve sustained corporate-level profitability? A: Terah Krigsvold, CFO, stated that the financial priority is to convert improvements into better consolidated Adjusted EBITDA and lower cash usage by increasing clinic-level earnings, maintaining expense discipline, and deploying capital selectively. Steve Shum added that as the company expands, it will look to improve operating leverage to reach sustained corporate-level profitability.

Q: Can you provide details on the company's liquidity position and the new equity purchase facility? A: Terah Krigsvold, CFO, reported that cash was approximately $3.7 million at June 30, 2026, up from $2.1 million at year-end 2025. In July, the company entered into an equity purchase facility with Alumni Capital, giving INVO the right to sell up to $15 million of common stock. She emphasized this is a source of financial flexibility, not a commitment to draw the full amount, and will be evaluated based on market conditions and growth opportunities.

Q: What were the main factors contributing to the improved net income from continuing operations in Q2 2026? A: Terah Krigsvold, CFO, noted that net income from continuing operations was approximately $0.9 million, compared to a net loss of $1.5 million in the prior year quarter. The current year period included a $2.5 million non-cash gain on remeasurement related to the Birmingham acquisition. Excluding that, the year-over-year improvement reflects lower professional fees, lower stock-based compensation, and a cleaner operating structure.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .