INVE Technologies — Third Quarter 2026 Earnings Summary

Financial Performance:

• Third quarter 2026 revenue was $3.1 million, a decrease from $5.0 million in the third quarter of 2025, driven by lower RFID transponder unit sales and the divestiture of the IoT business.
• GAAP gross margin improved to 18.3% in Q3 2026 from 10.7% in Q3 2025; non-GAAP gross margin rose to 31.6% from 19.1%.
• GAAP operating expenses increased to $8.8 million in Q3 2026 from $6.1 million in Q3 2025 due to asset sale transaction costs; non-GAAP operating expenses decreased to $4.0 million from $4.5 million.
• GAAP net income was $0.6 million ($0.02 per share) in Q3 2026, compared to a GAAP net loss of $3.5 million ($0.15 per share) in Q3 2025.
• Non-GAAP adjusted EBITDA loss narrowed to $3.0 million in Q3 2026 from $3.6 million in Q3 2025.
• Balance sheet as of September 30, 2026, shows cash and cash equivalents of $86.8 million, down from $128.6 million as of December 31, 2025; accounts receivable and inventories are reported as $0.
• Equity investments increased to $50.2 million as of September 30, 2026, from $0.2 million as of December 31, 2025.

Guidance and Future Outlook:

• The company is not providing financial guidance as it currently has no commercial revenue following the sale of its IoT Business to Trackonomy on September 15, 2026.

Business Segments and Product Lines:

• The company divested its IoT business to Trackonomy, with net revenue for Q3 2026 reflecting activity only through the closing date of September 15, 2026.
• Production transitioned to a Thailand facility, resulting in higher utilization and cost savings.
• The company's strategy focuses on acquiring and operating enterprise-enabled intelligent software businesses that integrate physical AI capabilities.

Market and Competitive Landscape:

• No specific market share data or competitive landscape details were provided in the press release.

Risks and Challenges:

• Risks include the ability to successfully execute the business strategy and acquire enterprise software companies.
• Future results depend on the success of the strategic partnership agreement with Trackonomy.
• Forward-looking statements are subject to risks that could cause actual results to differ materially from expectations.

Management Commentary and Tone:

• Management attributed the improvement in gross margins to cost savings, efficiencies from the Thailand facility transition, and the non-recurrence of prior-year inventory obsolescence charges.
• The reduction in non-GAAP operating expenses was attributed to disciplined cost control.
• The net income increase was driven by a gain on the asset sale and a net gain on the dissolution of a foreign subsidiary, partially offset by higher strategic transaction-related costs and accelerated stock-based compensation.

Other Key Points:

• INVE Technologies signed a strategic partnership agreement with Trackonomy.
• A gain of $6.1 million was recognized on the asset sale of the IoT business.
• A net gain of $1.8 million was recognized on the dissolution of a foreign subsidiary.
• Stock-based compensation accelerated due to the closing of the asset sale transaction.
• A conference call was held on November 12, 2026, to discuss results and business strategy.