INVO Fertility’s clinic operations generated approximately $333,000 of Clinic-Level Adjusted EBITDA during Q2 2026, more than double the $164,000 generated during Q1, even as consolidated Adjusted EBITDA loss widened to approximately $1.03 million from $587,000 a year earlier.
The divergence highlights the economics at the center of INVO’s acquisition strategy. Its fertility clinics are generating positive EBITDA before corporate operating and public-company expenses, while the centralized infrastructure required to manage the public company and build a larger acquisition platform continues to leave consolidated results negative.
Clinic-Level Adjusted EBITDA increased approximately 103% sequentially from $163,945 in Q1 to $333,026 in Q2. For fiscal 2025, the clinic platform generated approximately $951,000 under the same measure.
Q2 revenue increased 17% to $2.18 million from $1.86 million, while clinic revenue rose 18% to approximately $2.17 million. The increase was driven primarily by the first full-quarter contribution from Family Beginnings following its February acquisition.
INVO is attempting to solve the gap between clinic-level profitability and consolidated losses through greater scale. Management is evaluating a pipeline of established and profitable U.S. fertility clinics that could be added to the platform, allowing corporate operating expenses to be supported by a larger revenue and earnings base.
The company also increased its ownership of existing operations during Q2. INVO acquired the remaining interests in its Birmingham, Alabama clinic in June, converting the former joint venture into a wholly owned subsidiary and giving INVO full participation in its future economics.
The Birmingham transaction materially affected reported earnings. INVO reported $0.9 million of GAAP net income compared with a $3.6 million loss a year earlier, but the Q2 result included approximately $2.5 million of remeasurement gains associated with the acquisition.
The underlying operating loss improved to approximately $1.29 million from $2.99 million despite the wider Adjusted EBITDA loss. Selling, general and administrative expenses declined to approximately $1.9 million from $2.2 million, primarily due to lower professional-services expenses.
INVO ended Q2 with approximately $3.7 million in cash, up from $2.1 million at the end of 2025. The company is continuing to invest in shared capabilities across operations, finance, billing, human resources and administration to support a larger clinic network.
The strategic question is whether additional clinic revenue and EBITDA can scale faster than centralized costs. INVO’s Q2 clinic-level performance demonstrates improving operating contribution from the underlying fertility assets, while consolidated Adjusted EBITDA shows that substantially greater scale is still needed to absorb the platform’s broader expense base.
KEY QUOTES:
“The second quarter continued the progress we demonstrated in the first quarter and provided further validation of our strategy. Revenue increased 17% supported by the first full-quarter contribution from Family Beginnings and continued growth initiatives across our clinic network. Just as importantly, the clinic platform remained profitable on an Adjusted EBITDA basis before corporate operating and public company expenses, generating approximately $333,000 during the second quarter and $0.95 million during fiscal 2025. We believe these results demonstrate both the underlying earnings power of the clinics we have assembled and the value of building a larger platform around them.”
“Looking ahead, we intend to drive organic growth across our existing clinic network, leverage our corporate infrastructure across a larger revenue base, and pursue disciplined acquisitions of established, profitable fertility practices. With a growing operating platform, demonstrated clinic-level Adjusted EBITDA generation, an improved financial position, and a robust pipeline of opportunities, we believe INVO is increasingly well positioned to build a scaled fertility services company and create meaningful long-term value.”
Steve Shum, Chief Executive Officer of INVO Fertility
