Innovative Designs Swings to $161,641 Profit as Q1 Revenue Climbs 16%
The Delaware-based company posted net income of $161,641 for the three months ending January 31, reversing a year-earlier profit of $36,202. Revenue rose to $632,201 from $543,916.
Innovative Designs, Inc., a Delaware-incorporated small-cap firm, reported net income of $161,641 for the three months ending January 31, 2026, up sharply from $36,202 in the same quarter a year earlier. The swing came as revenue climbed 16% to $632,201 from $543,916. Read more earnings reports.
Operating income surged to $168,079 from $40,787 in the year-ago period, driven by a 7.7% decline in operating expenses to $464,122 from $503,129. Selling, general and administrative expenses fell 20% to $216,557 from $272,099.
The company generated $227,062 in cash from operations during the quarter, a sharp reversal from negative cash flow of $162,155 in the prior-year period. Cash and cash equivalents stood at $721,372 as of January 31, up from $605,052 at the end of October 2025.
Total assets rose to $2.47 million from $2.21 million at the end of the prior quarter. Stockholders' equity increased to $2.22 million from $2.06 million over the same span.
The company reported diluted earnings per share of $0.004 for the quarter, compared to $0.000 in the year-earlier period, based on 37.9 million weighted average diluted shares outstanding.
| Metric | Q1 FY2026 | Q1 FY2025 |
|---|---|---|
| Total Revenue | $632,201 | $543,916 |
| Operating Expenses | $464,122 | $503,129 |
| Operating Income | $168,079 | $40,787 |
| Net Income | $161,641 | $36,202 |
| Cash from Operations | $227,062 | ($162,155) |
| Total Assets | $2,470,337 | — |
Inventory increased to $599,217 from $537,713 at the end of October, while accounts receivable declined to $255,561 from $344,700. Accounts payable rose to $124,539 from $78,750.
The company invested $110,742 in the quarter, primarily in property, plant and equipment, which increased to $96,608 from $30,530 at the end of the prior quarter. Interest expense fell to $2,188 from $3,262 in the year-ago period.
As of January 31, the company had 38.5 million shares outstanding. The retained earnings deficit narrowed to $9.88 million from $10.05 million at the end of October 2025.