What is the anticipated timeline for scaling Payables Automation to a broader market?

Anticipated timeline:

Intellinetics’ management signals that Payables‑Automation will move from “commercialization” to full‑scale market rollout within the next 12‑18 months – essentially the second half of 2025 and into 2026. The comment that the solution “will be the primary drivers of our SaaS growth going forward” follows a 12.6 % YoY rise in SaaS revenue for Q2 2025, indicating that the company expects to accelerate adoption in the remainder of 2025 (Q3‑Q4) and the first half of 2026 as it broadens the customer base beyond early‑adopter pilots.

Trading implications:

- Fundamentals: The scaling of Payables Automation should lift the SaaS top‑line, improve gross margins (software‑license mix is higher‑margin than services) and expand recurring‑revenue visibility. Anticipate a mid‑single‑digit to low‑double‑digit% uplift in SaaS revenue YoY once the solution reaches a broader market.

- Technical: The stock has been trading near the 20‑day SMA on modest upside momentum after the Q2 beat. If the company delivers on the rollout, a breakout above the $0.90–$1.00 resistance zone could trigger a short‑term rally. Conversely, failure to scale will keep the price trapped below the 50‑day SMA.

- Actionable view: Keep a long‑biased stance with a primary entry around the current support level (≈ $0.85) and a target near $1.10‑$1.20, reflecting the expected SaaS‑driven earnings expansion. Monitor management’s Q3 2025 commentary for concrete rollout milestones (e.g., new client wins, expanded channel partners) and adjust the position accordingly.