Intouch Insight Ltd (INXSF) (Q2 2026) Earnings Call Highlights: Revenue Surges 8% to $7M, SaaS ...

Q & A Highlights

Q: Merchandising delivered about $120,000 in the first half against a $1 million target. What's actually contracted for Q3 versus pipeline, and what underpins holding the full-year number? A: Cameron Watt (President & CEO): While we cannot disclose the exact Q3 figure due to selective disclosure rules, we have contracted revenues that are well ahead of the first half's total. The confidence in maintaining the $1 million full-year target is based on signed work in the field, not pipeline optimism. Merchandising is a business where a single six-week engagement with a retailer can be worth $300,000, and we are gaining traction as a vendor under consideration, expecting more project opportunities as time progresses.

Q: Your profits are already flat and margin dropped year-to-date. You mentioned product mix was a part of it. Can you expand, including how merchandising was part of this and what the impact on the rest of the year will be if merchandising grows? A: Cameron Watt (President & CEO): The margin decline is partly due to growth in our existing larger clients, who naturally have lower margins, and the ramp-up of merchandising work. While merchandising has lower gross margins, it is important to note that almost all of its costs sit within the delivery itself, meaning the programs have similar profitability to other lines. As merchandising revenue grows, we expect to see lower margins but higher absolute profits.

Q: Operating cash was negative $599,000 year-to-date, and cash is down $645,000. What in the receivables aging tells you this is collection timing rather than revenue quality? A: Cathy Smith (CFO): Three factors point to collection timing. First, the $1.05 million increase in receivables is all sitting in current or 1- to 60-day buckets, representing recently raised invoices. Second, receivables more than 60 days past due fell 44% from $420,000 at year-end to $237,000, and our provision for expected credit losses also decreased. Third, the days sales outstanding shift is only five days (from 57 to 62). Underneath it all, we generated $587,000 of cash before working capital changes, indicating the business is generating cash at the operating level.

Q: 8% growth is your strongest in seven quarters and fully organic. What changed in the business, and what makes you confident it holds through the back half? A: Cameron Watt (President & CEO): The growth is less about a recent change and more about the investments in thought leadership and sales efforts over the past few years starting to work. We are seeing more opportunities and closing more than our fair share. Expansion with existing customers is also contributing positively. Since the first-half momentum is based on activity from the last two years, there is no reason to believe we won't continue to see acceleration as we continue to ramp up our efforts.

Q: 83% of your revenue is in the U.S.A., and it is where your growth came from. Do you feel any risk from the current trade war? A: Cameron Watt (President & CEO): We do not view this as a significant risk. We anticipated American protectionism and structured our operations to be inside an American company in Delaware, with American employees and paying American taxes. We are doing exactly what the administration wants. Additionally, we are in the services business, which is traditionally not subject to tariff regimes.

Q: Product development was up 20% and G&A down 7% as reported. How much of each is actual spend versus the absence of investment tax credits and foreign exchange swing? A: Cathy Smith (CFO): The reported percentages are misleading in both directions. For product development, the $93,000 increase is almost entirely due to the absence of investment tax credits ($85,000), with actual spend up only about $8,000. For G&A, the reported 7% decrease is a currency swinga $94,000 gain this quarter versus a $229,000 loss last year. Stripping that out, underlying G&A is up about $181,000, driven by roughly $78,000 in computer and AI investment and $98,000 in salaries. On a real spend basis, we invested about $353,000 more than last year.

Q: You funded new sales capacity, merchandising, grocery, and AI investment without issuing a single share. How are you still funding this, and what should shareholders take from it? A: Cameron Watt (President & CEO): The underlying business is healthy. Even during the pandemic, when we lost 70% of our revenue in Q2 2020, we remained EBITDA positive and never raised funds. We are disciplined in watching cash and ensuring we spend less than the business can throw off. This approach means we do not have to issue shares to fund our growth program.

Q: You have a number of studies, and your convenience study now covers nearly 3,000 site visits across 14 brands. Is that a large expense, and how does it convert into pipeline and signed contracts? A: Cameron Watt (President & CEO): It is a relatively large expense, but very cost-effective relative to marketing dollars. We absorb the cost of goods sold for the visits, but the studies generate significant value: they get us on the main stage at industry events, front-page articles in leading publications, and earned media. Being a thought leader ensures people take our calls and gives us an advantage in bid processes, as clients prefer to pick the industry leader. Some studies, like our QSR Drive-thru study, are even paid for by brands who want the data, while still providing all the marketing benefits.

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