Executive Summary

Record quarter: Revenue rose 314% year over year to $0.975M, driven by clinic revenue and the partial-quarter contribution from the Wisconsin Fertility Institute (WFI); net loss narrowed to $(1.25)M, and Adjusted EBITDA improved to $(0.57)M .
On a pro forma basis (full-quarter WFI), Q3 revenue would have been ~$1.49M and pro forma Adjusted EBITDA $(0.32)M, highlighting a visible path toward breakeven as WFI scales within the model .
Management reiterated a 2024 profitability goal, citing clinic-level profitability (excluding corporate overhead) and ongoing corporate expense reductions as the key levers .
Strategic catalysts: WFI acquisition closed Aug 10, 2023; announced definitive merger agreement to acquire NAYA Biosciences (subject to multiple closing conditions), positioning combined operations across fertility and oncology .

What Went Well and What Went Wrong

What Went Well

Strong top-line inflection: Revenue up 314% YoY to $0.975M on clinic revenue growth (+437% YoY to $0.948M) and partial-quarter WFI consolidation .
Operating leverage emerging: SG&A fell ~46% YoY to ~$1.26M; total operating costs declined to ~$1.86M from ~$2.76M YoY; Adjusted EBITDA improved to $(0.57)M from $(2.0)M .
Clinic-level profitability: “Exclusive of corporate overhead, the clinics generated positive net income in the period,” underscoring unit economics at the center level .

What Went Wrong

Interest/financing drag: Interest expense and financing fees increased materially to ~$0.35M in Q3 amid use of convertible notes and a revenue loan; net loss still $(1.25)M .
Liquidity remains tight: Cash was ~$1.06M at quarter-end; company continues to rely on external financing pending sustainable operating cash flow .
Closing risk on NAYA deal: Merger subject to numerous conditions (shareholder approvals, interim private financing, warrant waivers, Nasdaq listing, S-4 effectiveness), introducing execution risk and timeline uncertainty .

Financial Results

Income Statement Snapshot and EPS (oldest → newest)

Metric	Q1 2023	Q2 2023	Q3 2023
Total Revenue ($)	$348,025	$315,902	$974,894
Clinic Revenue ($)	$297,381	$254,364	$947,891
Product Revenue ($)	$50,644	$61,538	$27,003
Total Operating Expenses ($)	$2,581,891	$2,381,879	$1,861,184
Loss from Operations ($)	$(2,306,420)	$(2,065,977)	$(886,290)
Net Loss ($)	$(2,550,879)	$(2,240,511)	$(1,248,440)
Basic/Diluted EPS ($)	$(0.20)	$(3.06)	$(0.70)
Weighted Avg Shares (Basic)	12,450,072	732,255	1,776,898

Note: The company effected a 1-for-20 reverse split on July 28, 2023; Q2 and Q3 EPS reflect post-split share context, while Q1 report preceded the split (10-Q later retroactively reflects share counts; use caution when comparing EPS across periods) .

YoY Reference (Q3 2023 vs Q3 2022)

Revenue: $974,894 vs $235,321 (+314% YoY) .
Clinic Revenue: $947,891 vs $176,395 (+437% YoY) .
Net Loss: $(1,248,440) vs $(2,549,623) (improved) .

Non-GAAP and Cash

Metric	Q1 2023	Q2 2023	Q3 2023
Adjusted EBITDA ($)	$(1,747,831)	$(1,574,095)	$(565,362)
Adjusted EBITDA (Pro forma, full-qtr WFI) ($)	N/A	N/A	$(315,302)
Cash & Equivalents ($)	$2,188,245	$112,485	$1,055,544

Segment/Mix Detail

Revenue Mix	Q1 2023	Q2 2023	Q3 2023
Clinic Revenue ($)	$297,381	$254,364	$947,891
Product Revenue ($)	$50,644	$61,538	$27,003
Total Revenue ($)	$348,025	$315,902	$974,894

Additional Operating KPIs

KPI	Q1 2023	Q2 2023	Q3 2023
Revenue from All Clinics (incl. equity method) ($)	$646,707	$712,433	$1,352,881
Clinics Net Income (combined; consolidated + equity method) ($)	$(88,439)	$(86,237)	$121,607

Estimates: Wall Street consensus (S&P Global) for INVO was unavailable; no comparisons to consensus EPS/revenue can be provided (S&P Global data mapping not available for this ticker in our feed).

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Profitability Target	FY 2024	Not quantified previously	Management reiterated visibility to 2024 profitability, citing clinic-level profitability and SG&A reductions	Reiterated
Clinic-Level Profitability	Q3 2023	N/A	Clinics generated positive net income excluding corporate overhead	New KPI disclosure
Earnings Call Timing	Q3 2023	Standard timing	Call expected after Nov 20, contingent on merger closing condition progress	Updated timing
Formal Financial Guidance (Revenue/EPS/Margins)	N/A	None	None provided	Maintained (no formal guidance)

Earnings Call Themes & Trends

Note: A Q3 2023 call transcript was not available in our document set; themes below reflect press release and 10-Q disclosures.

Topic	Previous Mentions (Q1 2023)	Previous Mentions (Q2 2023)	Current Period (Q3 2023)	Trend
M&A / Scale	Signed binding agreement to acquire WFI to accelerate scale	Closed WFI; ~550 IVF cycles (2022) and $5.4M revenue/$1.7M net income (2022)	Pro forma Q3 revenue ~$1.49M with full WFI; clinics profitable ex-corp	Improving scale
Regulatory/Tech	Focus on IVC; INVOcell platform	FDA 510(k) clearance for 5-day incubation (improved outcomes)	5-day clearance reiterated in 10-Q; competitive differentiation	Positive
Expense Discipline	SG&A $2.51M; working to reduce	SG&A down to ~$2.04M	SG&A ~$1.26M; total operating costs down; path to profitability	Improving
Capital/Liquidity	RD offering ~$3M; cash $2.19M	Public offering ~$4.5M; end-Q2 cash $0.11M	Cash $1.06M; revenue loan $1.5M; financing costs elevated	Mixed: improved cash, higher financing drag
Strategic Combination	N/A	N/A	Definitive merger to acquire NAYA; extensive closing conditions	New catalyst with execution risk

Management Commentary

“The results of the quarter highlight the transformation of INVO into a growing, innovative healthcare services company… When you look at the pro forma results… our adjusted EBITDA would have been $(0.3) million… our clinics, exclusive of our corporate costs, generated positive net income… achieving our stated goal of profitability in 2024 becomes increasingly visible.” – Steve Shum, CEO .
“Acquired Wisconsin Fertility Institute… further accelerates INVO’s transition to a healthcare services company and provides an opportunity to advance IVC volume and the ability to secure a greater share of total fertility cycle revenue.” .
“We made significant progress… our three existing INVO Centers… achieving record levels of revenue and patient cycles… nearing break-even… look forward to… positive cashflows and profits in the near future.” .

Q&A Highlights

No Q3 2023 earnings call transcript was available; the company indicated it expected to host a conference call after November 20 pending progress on merger closing conditions .

Estimates Context

Wall Street consensus (S&P Global) for INVO (EPS and revenue) was unavailable in our S&P Global feed for Q1–Q3 2023; we cannot present or compare to consensus. As a result, no “beat/miss” assessment versus consensus is provided.

Key Takeaways for Investors

The WFI acquisition is scaling the services model: clinic revenue mix is rising sharply, and clinics generated positive net income excluding corporate overhead, supporting the 2024 profitability narrative .
Operating discipline is visible: SG&A and total operating costs declined meaningfully YoY, while loss from operations narrowed significantly as revenue scaled .
Financing remains a headwind: elevated interest/financing expenses and reliance on external capital persist near term, partially offset by the $1.5M revenue loan; cash at quarter-end was $1.06M .
Strategic optionality: the NAYA merger could broaden the platform (fertility + oncology) but carries multiple closing conditions (financing, approvals, warrant waivers, Nasdaq listing), introducing execution risk .
KPI momentum: “all clinics” revenue rose to $1.35M in Q3, with pro forma Q3 adjusted EBITDA trending toward breakeven, indicating positive operating trajectory as WFI contribution normalizes .
Near-term focus: integrate WFI, maintain cost discipline, and advance INVO Centers (Atlanta, Birmingham, Monterrey) while managing liquidity and financing costs carefully .
No formal guidance provided; monitoring for post–Nov 20 call details and any quantification of 2024 profitability path and merger updates is key for catalysts .

Appendix: Additional References and Disclosures

Balance sheet snapshot (Q3 2023): Total assets $19.48M; total liabilities $19.10M; stockholders’ equity $0.37M .
WFI purchase accounting and pro forma allocations included in Q3 10-Q .
Nasdaq listing compliance updates and reverse split details included in Q3 10-Q .

Sources:

Q3 2023 8-K earnings press release and exhibits .
Q3 2023 Form 10-Q (financials, MD&A, merger terms, financing) .
Q2 2023 8-K earnings press release .
Q1 2023 8-K earnings press release .

INVO Bioscience, Inc. (INVO)·Q3 2023 Earnings Summary