Focused on Providing Physical AI Solutions Through Targeted Acquisitions of Enterprise SaaS Companies Signed Strategic Partnership Agreement with Trackonomy Santa Ana, Calif. — November 12, 2026 — INVE Technologies, Inc. (NASDAQ: INVE) today released its financial results for the third quarter ended September 30, 2026.
Financial Results for Fiscal Third Quarter 2026
Revenue for the third quarter of 2026 was $3.1 million, compared to $5.0 million in the third quarter of 2025. The year-over-year decrease was due to lower unit sales of RFID transponder products and the IoT business divestiture to Trackonomy during Q3. Net revenue for the third quarter of 2026 reflects only activity through September 15, 2026, the closing date of the asset sale transaction, and therefore is not comparable to the full prior-year period.
Third quarter 2026 GAAP gross margin was 18.3% and non-GAAP gross margin was 31.6%, compared to third quarter 2025 GAAP gross margin of 10.7% and non-GAAP gross margin of 19.1%. The year-over-year improvement was primarily driven by continued cost savings and efficiencies resulting from the transition of production to the Thailand facility, higher utilization at the Thailand facility, and the non-recurrence of prior-year inventory obsolescence charges.
GAAP operating expenses, including research and development, selling and marketing, general and administrative, and restructuring and severance, were $8.8 million in the third quarter of 2026, compared to $6.1 million in the third quarter of 2025. The year-over-year increase in GAAP operating expenses was primarily driven by an increase in costs associated with the asset sale transaction. Non-GAAP operating expenses were $4.0 million in the third quarter of 2026, compared to $4.5 million in the third quarter of 2025. The year-over-year decrease in non-GAAP operating expenses reflects management’s disciplined cost control.
Third quarter 2026 GAAP net income was $0.6 million, or $0.02 per basic and diluted share, compared to GAAP net loss of $3.5 million, or $0.15 per basic and diluted share, in the third quarter of 2025. The year-over-year increase was primarily driven by a gain recognized on the asset sale and a net gain recognized on the dissolution of a foreign subsidiary, partially offset by higher strategic transaction-related costs and higher stock-based compensation related to the acceleration of unvested RSUs associated with the closing of the asset sale.
Third quarter 2026 non-GAAP adjusted EBITDA loss was $3.0 million, compared to a non-GAAP adjusted EBITDA loss of $3.6 million in the third quarter of 2025. The year-over-year improvement was primarily driven by disciplined management of operating expenses in support of the Company’s strategic initiatives.
Financial Outlook
Following the sale of its IoT Business to Trackonomy on September 15, 2026, the Company currently has no commercial revenue. Consequently, the Company is not providing financial guidance.
Conference Call
INVE Technologies management will hold a conference call today, November 12, 2026, at 5:00 p.m. EST (2:00 p.m. PST) to discuss the company's third quarter 2026 financial results and its business strategy.
Toll-Free: +1 877-545-0320
International Number: +1 973-528-0002
Call ID: 779755
Webcast link: Register and Join
The teleconference replay will be available through Thursday, November 26, 2026, by dialing +1 877-481-4010 (Toll-Free Replay Number) or +1 919-882-2331 (International Replay Number) and entering passcode 54742.
About INVE Technologies
INVE Technologies, Inc. is a publicly traded operating company focused on acquiring and operating enterprise-enabled intelligent software businesses that require the addition of physical AI in compliance driven industries. Its strategy is to combine established enterprise SaaS platforms with Physical AI capabilities to support automated, continuous, and verifiable operational data. For additional information, visit invetechnologies.com.
Non-GAAP Financial Measures
This press release includes financial information that has not been prepared in accordance with accounting principles generally accepted in the United States (GAAP), including non-GAAP adjusted EBITDA, non-GAAP gross profit, non-GAAP gross margin and non-GAAP operating expenses. INVE Technologies uses non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating operational performance. INVE Technologies believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating operating results and trends. Non-GAAP gross profit and margin exclude stock-based compensation and amortization and depreciation. Non-GAAP adjusted EBITDA excludes items that are included in GAAP net income (loss), GAAP operating expenses, and GAAP gross margin, and excludes income tax provision (benefit), interest income, net, foreign currency gains (losses), net, stock-based compensation, amortization and depreciation, gain on asset sale, net gain on dissolution of foreign subsidiary, restructuring and severance, and strategic review-related costs. Non-GAAP operating expenses exclude stock-based compensation, amortization and depreciation, strategic review-related costs, and restructuring and severance. The exclusions are detailed in the reconciliation table included in this press release. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures as detailed in this press release.
Note Regarding Forward-Looking Information
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those involving future events and future results that are based on current expectations as well as the current beliefs and assumptions of management of INVE Technologies and can be identified by words such as “anticipate,” “believe,” “continue,” “plan,” “will,” “intend,” “expect,” “outlook,” and similar references to the future. Any statement that is not a historical fact is a forward-looking statement, including statements regarding INVE Technologies’ strategy and focus. Forward-looking statements are only predictions and are subject to a number of risks and uncertainties, many of which are outside INVE Technologies’ control, which could cause actual results to differ materially and adversely from those expressed in any forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: INVE Technologies’ ability to successfully execute its business strategy; INVE Technologies’ ability to successfully acquire one or more enterprise software companies; the success of the strategic partnership agreement with Trackonomy; and the other risk factors discussed in its periodic reports, including its Annual Report on Form 10-K for the year ended December 31, 2025, as amended, Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, and subsequent reports filed with the Securities and Exchange Commission. All forward-looking statements are based on information available to INVE Technologies on the date hereof, and INVE Technologies assumes no obligation to update such statements.
INVE Technologies Investor Relations Contact:
IR@invetechnologies.com
INVE Technologies, Inc. |
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Condensed Consolidated Statements of Operations |
||||||||||||||
(in thousands, except per share data) |
||||||||||||||
(unaudited) |
||||||||||||||
Three Months Ended |
Nine Months Ended |
|||||||||||||
September 30, |
September 30, |
September 30, |
September 30, |
|||||||||||
2026 |
2025 |
2026 |
2025 |
|||||||||||
Net revenue |
$ |
3,088 |
$ |
5,009 |
$ |
16,182 |
$ |
15,318 |
||||||
Cost of revenue |
2,524 |
4,475 |
13,411 |
15,126 |
||||||||||
Gross profit |
2,771 |
|||||||||||||
Operating expenses: |
||||||||||||||
Research and development |
1,228 |
3,179 |
2,505 |
|||||||||||
Selling and marketing |
1,455 |
1,369 |
4,094 |
4,322 |
||||||||||
General and administrative |
5,958 |
3,517 |
13,209 |
9,720 |
||||||||||
Restructuring and severance |
1,082 |
|||||||||||||
Total operating expenses |
8,805 |
6,116 |
20,727 |
17,629 |
||||||||||
Loss from operations |
(8,241 |
) |
(5,582 |
) |
(17,956 |
) |
(17,437 |
) |
||||||
Non-operating income (expense): |
||||||||||||||
Interest income, net |
1,309 |
2,908 |
3,841 |
|||||||||||
Gain on Asset Sale |
6,127 |
— |
6,127 |
— |
||||||||||
Net gain on dissolution of foreign subsidiary |
1,817 |
— |
1,817 |
— |
||||||||||
Foreign currency gains (losses), net |
(25 |
) |
(327 |
) |
(1,425 |
) |
||||||||
Income (loss) before income tax benefit (provision) |
(4,298 |
) |
(7,431 |
) |
(15,021 |
) |
||||||||
Income tax benefit (provision) |
(65 |
) |
(82 |
) |
||||||||||
Net income (loss ) |
(3,451 |
) |
(7,513 |
) |
(14,282 |
) |
||||||||
Cumulative dividends on Series B convertible preferred stock |
(214 |
) |
(207 |
) |
(636 |
) |
(617 |
) |
||||||
Net income (loss) available to common stockholders |
$ |
$ |
(3,658 |
) |
$ |
(8,149 |
) |
$ |
(14,899 |
) |
||||
Net income (loss) per common share: |
||||||||||||||
Basic |
$ |
0.02 |
$ |
(0.15 |
) |
$ |
(0.34 |
) |
$ |
(0.63 |
) |
|||
Diluted |
$ |
0.02 |
$ |
(0.15 |
) |
$ |
(0.34 |
) |
$ |
(0.63 |
) |
|||
Weighted average common shares outstanding: |
||||||||||||||
Basic |
24,193 |
23,849 |
24,151 |
23,736 |
||||||||||
Diluted |
24,213 |
23,849 |
24,151 |
23,736 |
||||||||||
INVE Technologies, Inc. |
||||||||
Condensed Consolidated Balance Sheets |
||||||||
(in thousands) |
||||||||
(unaudited) |
||||||||
September 30, |
December 31, |
|||||||
2026 |
2025 |
|||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ |
86,789 |
$ |
128,609 |
||||
Restricted cash |
||||||||
Accounts receivable, net of allowances |
— |
4,070 |
||||||
Inventories |
— |
7,419 |
||||||
Prepaid expenses and other current assets |
1,375 |
2,267 |
||||||
Total current assets |
88,464 |
142,665 |
||||||
Property and equipment, net |
7,316 |
|||||||
Operating lease right-of-use assets |
— |
|||||||
Equity investments |
50,200 |
|||||||
Other assets |
— |
|||||||
Total assets |
$ |
138,696 |
$ |
151,337 |
||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ |
$ |
3,619 |
|||||
Operating lease liabilities |
— |
|||||||
Deferred revenue |
— |
2,760 |
||||||
Accrued compensation and related benefits |
||||||||
Accrued income taxes payable |
||||||||
Other accrued expenses and liabilities |
5,568 |
1,619 |
||||||
Total current liabilities |
7,057 |
9,393 |
||||||
Long-term operating lease liabilities |
— |
|||||||
Other long-term liabilities |
||||||||
Total liabilities |
7,811 |
10,636 |
||||||
Total stockholders' equity |
130,885 |
140,701 |
||||||
Total liabilities and stockholders' equity |
$ |
138,696 |
$ |
151,337 |
||||
INVE Technologies, Inc. |
||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Information |
||||||||||||||
(in thousands) |
||||||||||||||
(unaudited) |
||||||||||||||
Three Months Ended |
Nine Months Ended |
|||||||||||||
September 30, |
September 30, |
September 30, |
September 30, |
|||||||||||
2026 |
2025 |
2026 |
2025 |
|||||||||||
Reconciliation of GAAP gross margin to non-GAAP gross margin |
||||||||||||||
GAAP gross profit |
$ |
$ |
$ |
2,771 |
$ |
|||||||||
Reconciling items included in GAAP gross profit: |
||||||||||||||
Stock-based compensation |
||||||||||||||
Amortization and depreciation |
1,312 |
1,277 |
||||||||||||
Total reconciling items included in GAAP gross profit |
1,366 |
1,292 |
||||||||||||
Non-GAAP gross profit |
$ |
$ |
$ |
4,137 |
$ |
1,484 |
||||||||
Non-GAAP gross margin |
% |
% |
% |
% |
||||||||||
Reconciliation of GAAP operating expenses to non-GAAP operating expenses |
||||||||||||||
GAAP operating expenses |
$ |
8,805 |
$ |
6,116 |
$ |
20,727 |
$ |
17,629 |
||||||
Reconciling items included in GAAP operating expenses: |
||||||||||||||
Stock-based compensation |
(1,436 |
) |
(702 |
) |
(2,767 |
) |
(2,396 |
) |
||||||
Amortization and depreciation |
(91 |
) |
(117 |
) |
(256 |
) |
(235 |
) |
||||||
Strategic review-related costs |
(3,102 |
) |
(372 |
) |
(4,981 |
) |
(376 |
) |
||||||
Restructuring and severance |
(164 |
) |
(402 |
) |
(245 |
) |
(1,082 |
) |
||||||
Total reconciling items included in GAAP operating expenses |
(4,793 |
) |
(1,593 |
) |
(8,249 |
) |
(4,089 |
) |
||||||
Non-GAAP operating expenses |
$ |
4,012 |
$ |
4,523 |
$ |
12,478 |
$ |
13,540 |
||||||
Reconciliation of GAAP net income (loss) to non-GAAP adjusted EBITDA |
||||||||||||||
GAAP net income (loss) |
$ |
$ |
(3,451 |
) |
$ |
(7,513 |
) |
$ |
(14,282 |
) |
||||
Reconciling items included in GAAP net income (loss): |
||||||||||||||
Income tax provision (benefit) |
(847 |
) |
(739 |
) |
||||||||||
Interest income, net |
(866 |
) |
(1,309 |
) |
(2,908 |
) |
(3,841 |
) |
||||||
Foreign currency (gains) losses, net |
(84 |
) |
1,425 |
|||||||||||
Stock-based compensation |
1,477 |
2,821 |
2,411 |
|||||||||||
Amortization and depreciation |
1,568 |
1,512 |
||||||||||||
Gain on Asset Sale |
(6,127 |
) |
— |
(6,127 |
) |
— |
||||||||
Net gain on dissolution of foreign subsidiary |
(1,817 |
) |
— |
(1,817 |
) |
— |
||||||||
Strategic review-related costs |
3,102 |
4,981 |
||||||||||||
Restructuring and severance |
1,082 |
|||||||||||||
Total reconciling items included in GAAP net income (loss) |
(3,623 |
) |
(117 |
) |
(828 |
) |
2,226 |
|||||||
Non-GAAP adjusted EBITDA |
$ |
(3,035 |
) |
$ |
(3,568 |
) |
$ |
(8,341 |
) |
$ |
(12,056 |
) |
||