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Image source: The Motley Fool. Thursday, Aug. 13, 2026 at 4:30 p.m. ET Investor Relations Manager - Keaton Olsen President and Chief Executive Officer - Bryan Lewis Chief Financial Officer - Adam Sragovicz Operator: As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Keaton Olsen, Investor Relations Manager. Thank you. You may begin. Keaton Olsen: Thank you, operator. Good afternoon, everyone, and thank you for joining us today for Intellicheck's second quarter 2026 earnings call. Before we get started, I will take a moment to read our forward-looking statement. Certain statements on this conference call constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as amended. When used in this call, words such as will, believe, expect, anticipate, encourage, and similar expressions as they relate to the company or its management identify forward-looking statements. This includes statements regarding the customer transition we will discuss today, the pace, extent, and duration of the resulting volume reductions, whether any volumes are retained or restored, and the economics of any retained or restored business, our expectations regarding future revenue, profitability and adjusted EBITDA, and our ability to recover or replace affected revenue. These statements are based on management's current expectations and beliefs about future events. As with any projection or forecast, they are inherently susceptible to uncertainty and changes in circumstances, and the company undertakes no obligation to update or alter its forward-looking statements, whether resulting from new information, subsequent events, or otherwise. Additional information concerning forward-looking statements is contained in the company's filings with the SEC. Throughout this call, we may reference certain financial metrics that have been rounded for ease of discussion. Statements made today are as of August 13th, 2026. Management will use the financial terms adjusted EBITDA and adjusted gross margin. Please refer to our press release issued this afternoon for further definition, reconciliation, and context for the use of these terms. We will begin today's call with Bryan Lewis, Intellicheck's President and Chief Executive Officer, and he will be followed by Adam Sragovicz, Chief Financial Officer. Following their prepared remarks, we will take questions. I will now turn it over to Bryan. Bryan Lewis: Hey, thanks, Keaton, and good afternoon, everyone. I will say this, for the first time, we are doing this call live. I do not know how many people know that you can actually pre-record these things and make yourself sound pretty smart because you do not mess up. So if I stumble, I hope you all will understand why I like just talking. A couple of things. Our diversification strategy, now in its second-plus year of execution, continues to produce results in the second quarter. The operating discipline behind that strategy has generated four consecutive quarters of profitability. Revenue for the second quarter was up 7% versus last year and up 16% year-over-year. Gross margin came in at 91%, and adjusted EBITDA was positive for the fifth consecutive quarter. These results were generated despite the same macro challenges we described last quarter, persisting through the second quarter and continuing to weigh on our retail, automotive, and title insurance verticals. Let me start with the hard things, and then I can move on to the great things. As you all know from our historical filings, we often talk about customer concentration. A question I get all the time. A customer that represents about 29% of our revenue in the first half of the year recently informed us that as part of a broader vendor review, looking across all vendors, departments, and use cases, not just IDV, so they can evaluate redundancy, ensure there is no single point of failure internally. As a result, they are currently evaluating a multi-vendor IDV approach that is expected to negatively affect our transaction levels with this customer. I want to emphasize the word evaluation. That is their word, not mine. As of today, I can say that the traffic shift is nowhere near the extent they said it would be. Additionally, to use the client's own words, this is being driven by not being single-threaded to any one vendor. This is their words, this is what they told me. Not driven by a flaw in our system and not a sentence on how we perform. I can also say they recently signed another purchase order. They have also indicated intention to transition to our newest API, which will give them access to many more of our risk signals to detect fraud. But we believe this reflects recognition of the broader capabilities we can provide and the opportunity to further expand our support of their needs in the longer term. Again, we believe if you add all the things we do in the digital world to what I believe is the gold standard in document verification, great things happen. I want to be direct, and I remember my very first earnings call as a CEO when I was direct and reset expectations. I got a lot of angry calls. But one of my favorite quotes from the Bible is "The truth shall set you free." The truth is this is an evaluation. In their words, an evaluation. A new purchase order has been signed. Volumes have not been down to the level they indicated. Sometimes corporate strategies call for an evaluation. I look forward to this evaluation. I want to frame this correctly. This reflects a change in the customer's strategy, not a verdict on the accuracy of our results. Intellicheck remains the gold standard in identity verification. Sub-second, 99% barcode-level decisioning that no competitor can replicate because of our exclusive long-standing DMV relationships. Some customers may choose evaluation or adopt other products based on their own goals. That is their prerogative. It does not change the accuracy gap between our platform and any alternative. Let us move on to what I would call great. Q2 revenues grew by 7% sequentially, and we expect that underlying growth to continue, thanks to the consistent and deliberate customer diversification we have built and our strengthened balance sheet with $11.8 million in cash and no debt. Let me now walk through progress that we are seeing across each one of our verticals. The banking and lending vertical remains one of our core focus areas, particularly with medium and smaller organizations. They are far easier to integrate and get running than large organizations. I am very happy with the delivery mechanism of our platform that we call Intellicheck Desktop. It is a no integration required method. We have signed three new clients and are in discussion with several others. It is our belief that this will add significant growth at a faster pace than landing the whales. I will also point out that we continue to whale hunt. I also believe there was some confusion about hardware during the Q&A on our last call. If our clients choose to upgrade their scanners, they may have a sourcing problem, not us. I will say we have helped our clients find sources for scanners and have sped up the acquisition for them. Retail remained about 26% of Q2 revenue. This quarter, retail revenues were down approximately 2% compared to the same period last year. Any improvement here is consumer sentiment, as it stabilizes, will be an incremental upside for us. In the title market, our direct client relationships still represent an estimated 43% of the market. Mortgage loan origination in Q2 were up 14% year-over-year, and we benefited from this trend. When interest rates will, and I hope we all agree, eventually fall, this market should become, in our belief, a significant tailwind. Momentum has continued across our emerging and adjacent verticals as well. In cargo and freight, our nationwide rollout with our food manufacturer client, already in low six-figure annual contract value, is expected to grow. The roughly $300,000 average loss per truck stolen proves this is a good market for us. I am also excited this client continues to introduce us to other manufacturing and shipping companies. In manufacturing, we continue to see major clients who use us to keep their assembly lines rolling. In stadium and venue concessions, we see somewhat increased revenue over the same period last year. Most of that, again, is in college and university stadiums. Our age verification verticals and our background check verticals saw some volatility on their smaller bases of revenue. In automotive, scanning volumes at our dealer clients and via our channel partners have been trending lower, but we anticipate that trend reversing. Car sales figures for the quarter overall were roughly flat nationwide. One consistent question I get a lot relates to the social media vertical and the activity of a large global customer within that vertical. Again, in the interest of full disclosure, I will tell you they are back. They have fixed their image capture issues, and we can process from the data we are seeing, over 99% of the data they are sending us. They are actively engaged, and I will be meeting with them in person in the coming weeks. What this means in terms of volumes, I cannot forecast. But the recent discussions, even the ones I was having over this weekend, have me excited. I will reiterate that we have no revenue from them in our current forecast. As I learn more, and I hope you will all understand my honesty, I will keep you informed. Before I hand the call over to Adam, I want to emphasize that rising fraud activity makes our differentiation more valuable, not less. Synthetic identity fraud overall is up 300%, and deepfake-driven fraud is up over 1,000%, according to multiple studies, and it shows no sign of slowing down. Fraud prevention is not optional spending for any industry, which is why I like where the company sits. We are seeing new markets come to us as fraudsters increasingly target new channels, creating additional opportunities for us to address. What many companies rely on, a visual review of a license or a template check, which is what our competitors offer, does not adequately address these sophisticated fakes. That is where our technology stands apart. We want to assure our employees, customers, shareholders, and all stakeholders that Intellicheck is dedicated to exceeding expectations and expanding our leadership position in the rapidly evolving industry of fraud prevention. With that, I am going to hand it over to Adam to walk you through the quarter and financial details. Adam Sragovicz: Thanks, Bryan. The vendor resiliency initiative at our customer that Bryan mentioned commenced in late June and early July and did not materially affect our results for the three or six months ended June 30. Revenue for the second quarter was $5.9 million, and SaaS revenue comprised substantially all of total revenue. Operating expenses were $4.9 million, down 1% from a year ago. We earned $573,000 from operations and $633,000 of net income. Adjusted EBITDA was $1.1 million, our fifth consecutive positive quarter. For the six-month period, revenue was $11.5 million, net income was $1.3 million, and adjusted EBITDA was $2 million. Cash from operations for the first half was $2.2 million. Accounts receivable was $2.7 million, down from $3.4 million at year-end 2025. Deferred revenue was $1.2 million. We will be disciplined on cost while continuing to invest in engineering to enhance our offerings and maintain industry-leading accuracy. We will also invest in go-to-market initiatives to increase market share, expand within existing customers, win new customers, and grow through channel partnerships. We ended the quarter with a strong balance sheet with $11.8 million in cash and no debt. No plans to raise capital in the near term. We expect cash generated from operations to decline slightly in 2026, and we expect to use some cash in operations in future periods. Some of that is timing rather than performance. A portion of our customers' fees have historically been invoiced ahead of usage, so the cash conversion declines faster than the reported results as we recognize that balance. We expect that we will generate positive EBITDA in the second half of this year. We also expect to be profitable for the 2026 fiscal year on a GAAP basis. Assuming the customer that Bryan referenced completes its plan as communicated, and as we noted in the 10-Q, we have not seen that level of volume reduction. We would expect total revenue for 2026 to be slightly lower than 2025. With that, I will hand the call back to Bryan. Bryan Lewis: Before we go to questions, let me leave you with this. Our pipeline at Intellicheck Desktop in our channel partners across multiple industries and among smaller institutions is where I am very happy to see growth come from. We have rebuilt this revenue base before. Retail went from 55% of our revenue at its peak to about 26%, and banking continues to grow, and that does not change. Our core differentiator, gold standard barcode-level decisioning, is durable, and it gets more valuable, not less, as AI gets more intelligent. I stand behind this business, our people, our product, what we do, and I will say this every single day, I love looking at the number of people that I stop being. And I should not say I, we as a company stop being victims of crime. With that, operator, I will turn it over for questions. Operator: Thank you. We will now be conducting a question and answer session, and we will be taking questions only from institutional analysts of Intellicheck. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. Our first question comes from the line of Rudy Kessinger with D.A. Davidson. Please proceed with your question. Rudy Kessinger: Hey, guys. Great. Thanks for taking my questions and appreciate the candor on the call and obviously difficult situation with your largest customer. Bryan, with this customer where they are evaluating alternatives, is that across all use cases you currently serve them for, or is it for some use cases? I'm trying to get a sense, like is that full 29% of revenue potentially going to be disrupted or at risk, or is it only certain use cases? Bryan Lewis: I'm going to tell you this. It is across not just us. It's everything that they do. I will also say that they are changing what they say almost minute by minute in terms of what we expect. It puts me, in a way, in a hard spot because I can't give. I don't know. We got an update from them literally an hour ago. I don't know. When a company has a merger, things happen, and I can't say yes, no, or to anything. So it puts me in a tough spot, you in a tough spot, and I'm just saying that I believe, and I'll use all those terms. I believe, we believe they understand we're the best at stopping their fraud. Rudy Kessinger: Yeah. Bryan Lewis: That's about as much as I could say, Rudy. Rudy Kessinger: Okay. Got it. Okay. I guess you had mentioned they had just signed a new purchase order. That does indicate you're very much still going to be in the mix. I guess with respect to what they did communicate to you, as far as how much you should expect to see transaction volumes go down, did they indicate they might go down 25%, 50%? What's the kind of range that they communicated? Bryan Lewis: Honestly, the honest way I can answer that question is that it's nowhere. They gave us, I'll say this, kind of like a doomsday scenario, and they are nowhere near it. Adam, please jump in here. The purchase order they gave us will not support them for very long, in a way. It's like one of their normal purchase orders because their volume is still so high that unless something drastically changes, they're going to have to do another purchase order. Adam, would you agree? Adam Sragovicz: Yeah, I would agree. I just sympathize with Rudy and our other folks following, because if you look in our queue, and I know you guys haven't had a lot of time to look at it, but if you look in the notes and MD&A, we do talk about what the customer said would happen. We are on this call today halfway through the quarter, and six weeks after the June 30th date, not seeing what they told us, right? Bryan Lewis: Correct. Adam Sragovicz: We're in this never no man's land of trying to tell you guys what we see and what we expect. What do we expect? We probably expect, if it continues in the way that it is right now, that revenue in 2026 would be higher than 2025. But it's early days, and it's very volatile. It is substantially all the use cases. It's not all of them, but it's substantially all where the volume is. We wish we had more detail to share with you. Bryan Lewis: Yeah. Rudy Kessinger: Yeah. Okay. Bryan Lewis: Adam and I were talking about how we need higher blood pressure medication because these guys are up and down and up and down in terms of what they're telling us. Adam Sragovicz: Yeah. Bryan Lewis: Yeah. Rudy Kessinger: Got it. Okay. Last one from me. I know there's going to be a lot more questions on this specific customer. So I want to maybe ask something else. Banking and lending, 48% of revenue. What was the growth rate on that total vertical year-over-year? You also mentioned the rest of your customer base, excluding this one customer, 19% revenue growth in the first half. Just want to, again, housecleaning clarify. Was that 19% year-over-year growth first half 2026 versus first half 2025 for the rest of the base, ex that customer? Or just if you could clarify that'd be great. Adam Sragovicz: I think the first one there, Rudy, with the banking being about 40% of revenue in the second quarter in 2025. It's a shift of the pie from, let's say, 40-ish percent to about 48%. Then the growth of 19%, I'm assuming is, I think, Bryan, it's fair to say that's pretty broad across the whole. Bryan Lewis: Yeah, it's across all verticals. Yeah, I know. Rudy Kessinger: Got it. Okay. Thank you. Thanks for taking my questions, guys. Bryan Lewis: Thanks. Operator: Thank you. Our next question comes from the line of Jeff Van Rhee with Craig-Hallum. Please proceed with your question. Vijay Homan: Hey, guys, this is Vijay on for Jeff. First kind of question here, just as I'm trying to think about this large customer. In general, you kind of have two other large customers that you call out in the Q. Is there any sense that those customers are using you in a sole source capacity and they might eventually take on more vendors, or is this kind of a one-off situation? Bryan Lewis: In my opinion, it is a one-off that I'm not quite sure people are happy with where they're at, and I think it has to do with the merger. The rest of our customers, I have been at one of what I think will end up being one of our largest customers in their offices four times in the last month, and they tell us that their goal is to do more with us. I look at this as companies will do what companies do when they want to put strategies in place. Our other customers are telling us they want to do more with us. Now, what does that mean? I can't say. I am not going to put out any projections or any of that kind of stuff. But when you've got some pretty cool regional banks wanting us to come visit them every week to talk about how we can do more and help them, I think that's telling about what our company does. Vijay Homan: Yeah. No, absolutely. On those that banking and lending section you said, I think it was 48% of Q2 revenue, just based on the current kind of growth rates, what could that get to as a percentage of total revenue? Do you at all worry, maybe less about customer concentration, but a little bit more about industry concentration maybe being beholden to some of the macro trends there, or does that not really worry you? Bryan Lewis: I'm not so worried about macro trends when it comes to banking because people have to bank. The way that I'm looking at this, and particularly where I live, there's 10 banks I never heard of in my life. They all have fraud. I guarantee almost everybody on this call will have some little bank they never heard of outside their area. They all need us. That's kind of the cool thing that we're going after because they're simple to install. They might have 10 branches or they might have 177. That's why I really like going after the banking sector because, and just weird stuff that I've learned as I'm going along. In South Carolina, if you have a HELOC, it's public information, South Carolina and Georgia. People are going in and know you have a HELOC that you've not taken money out of, and they're going to try and steal your identity to get like $45,000 out of a bank. We stop that. I think that's the cool stuff that we do. Vijay Homan: Yeah, no, absolutely. Then just kind of last one from me. I was wondering, moving to kind of the competitive landscape, if you might provide some of the kind of nuances between you guys and Socure. I've seen their name kind of popping up a little bit, and I was wondering just if you could provide what you guys do better or what the differences are. Bryan Lewis: In my opinion, Socure is much more an orchestration layer than they are doing IDV. Socure, in my opinion, is doing what I would call templating. So does it look like the REAL ID? And I want to be careful on how I use that word REAL ID because REAL ID just means you have a star in the upper right-hand corner of the license. So what I'm saying is, does it look like an authentic license? We do something very, very different. And I tell everybody on the planet, "Don't believe me. Go Google DL/ID card verification program, and you will see what we do with the DMVs." And it's a very, very different thing. Vijay Homan: Mm-hmm. Great. Thanks for following that up. Appreciate you guys taking the questions. Bryan Lewis: Okay. Thank you. Operator: Thank you. Our next question comes from the line of Mike Grondahl with Northland. Please proceed with your question. Logan Hennen: Hey, this is Logan on for Mike. Thanks for taking our question, guys. Bryan, we really appreciate all the color and being straightforward in the prepared remarks. First one from us, could you maybe just provide us some insight into this evaluation process, as you called it, and if it started, when it started, and any insight into how long we could expect it to last? Thank you. Bryan Lewis: They are trying to set up a call with me and Sandra in just a couple of weeks. Logan Hennen: That will begin the evaluation process? Bryan Lewis: No, no. Look, their evaluation process was supposed to start, didn't go in my mind as fast as they thought it would. Again, my opinion. Adam, jump in if I'm saying things I probably shouldn't say, but in my opinion— Adam Sragovicz: No, go ahead. Bryan Lewis: Yeah. In my opinion, and I'm sure the lawyers will love that I said in my opinion, it isn't working. So we don't know. But we will know in short order, and I think that most people who know me and Adam will know that if something significant comes out that is negative, we will 8-K it. Great. Right, Adam? We're— Adam Sragovicz: To just answer directly, we did disclose in the Q, we talk about how we heard about this sort of at the very end of the second quarter, and it was basically supposed to be a third quarter evaluation project. It has not gone as quickly as they said, and it has not resulted in as much volume shift, as they said, and the reasons for that are opaque and mysterious to us. We can sort of only guess, but we certainly see them in an environment where the merger weighs heavy on them. Vendor resiliency. We laid out a lot of that stuff in the Q, but there's a lot of factors and a lot of things going on. So we're doing our best to try to keep you guys informed. Logan Hennen: Thanks, that's very helpful. We appreciate that color. Then one more from us, just looking at the other side of operations. Can you maybe provide some more color on the three new banking and lending clients you guys signed and the several additional opportunities currently in discussion that you mentioned in the prepared remarks? Just trying to think through about- Bryan Lewis: Yeah Logan Hennen: -how I can balance growth. Yep. Bryan Lewis: Yeah. Logan Hennen: Balancing growth between existing and new logos. That's what we're thinking about. Bryan Lewis: Well, look, my thing is, I don't want to say beat my team up, but I do like new logos. What I believe is that with this new delivery mechanism that doesn't require major integration, we will get a lot more of the smaller banks, right? When I say smaller banks, like one of the things I said earlier, it could be 15 or it could be 170 branches. Their fraud rates. I look at the fraud rate between some of our very small saving and loan customers and the fraud rate across our largest banks. The percentage fraud is the exact same. So they need us as much as anybody else, and they generally don't have the same issues of 80 million people needing to be on the call, right? I laugh, and I've said this probably on some of these calls, and I certainly tell it to clients. But when we were integrating one of our largest customers, we would have a weekly phone call with them. They had 102 people on that call. So you understand how it's like almost dealing with the federal government. It takes a really long time. But when you get a bank that maybe only has 100 branches, and they're going to pay more per transaction than somebody who's doing a ton more branches, a ton more transactions. I'd rather get them. That's where we want to make sure that we are looking at where do we go. Logan Hennen: Yep, understood. Thank you, Bryan. Thank you, Adam. Appreciate all the color there. Bryan Lewis: Cool. Operator: Thank you. We have reached the end of the question and answer session. Therefore, I'll now turn the call back over to CEO Bryan Lewis for closing remarks. Bryan Lewis: All right. Thank you all. Thank you all for your time today. I truly appreciate people wanting to be on the call, wanting to hear what we have to say. I'll say this in closing: We are laser-focused on execution. Here's what I want to leave you all with. We are a fraud prevention company that also speeds up the acquisition of good customers. Operating in a world where fraud is exploding and the fraud is getting more sophisticated by the quarter. AI, everybody asks me about AI. I think AI is going to hurt the folks that people believe we compete with more than us. We've changed our customer mix. We've rebuilt before. When I started, this place was a bit of a mess. The other thing is we got $11.8 million in the bank and no debt. That gives us the room to go out and grow revenue on our own terms, funded by our own balance sheet, and we're going to do just that. We look forward to updating you on the progress. I'm looking forward to meeting with additional clients and seeing what we can do with some of the folks you've always been asking me about. I think we've got good sunny days ahead of us. Thank you all. Have a great evening. Operator: Thank you. This concludes today's conference, and you may disconnect your lines at this time. We thank you for your participation. Before you buy stock in Intellicheck, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Intellicheck wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Intellicheck (IDN) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributed the 7% sequential revenue growth to a deliberate multi-year diversification strategy, reducing reliance on the retail sector which now represents 26% of revenue. A top-tier customer representing 29% of H1 revenue is conducting a vendor resiliency evaluation to avoid single-point-of-failure risks, though management noted this is a strategic shift rather than a verdict on Intellicheck's performance. The banking and lending vertical remains a core focus area for the company, and management expects future growth to be driven by 'Intellicheck Desktop,' a no-integration delivery mechanism designed to onboard medium and small institutions faster than larger clients. Management highlighted a significant accuracy gap between their DMV-linked barcode decisioning and competitors' visual template checks, which they believe is increasingly critical as deepfake fraud rises over 1,000%. Operational discipline resulted in the fifth consecutive quarter of positive adjusted EBITDA, supported by a 91% gross margin and a debt-free balance sheet. The company is seeing a recovery in the social media vertical, with a major global customer returning after resolving internal image capture issues that previously hindered processing. Full-year 2026 revenue is expected to be slightly lower than 2025, assuming the major customer completes its planned volume reduction, though current traffic shifts are currently less severe than initially indicated. The company expects to remain GAAP profitable for the 2026 fiscal year and maintain positive adjusted EBITDA through the second half of the year. Management anticipates that falling interest rates will serve as a significant tailwind for the title market, where their direct client relationships represent an estimated 43% of the market. Future cash generation from operations is expected to decline slightly in 2026 due to the timing of historical upfront invoicing transitioning to recognized revenue. Strategic focus will remain on 'whale hunting' large enterprise clients while simultaneously accelerating growth through smaller, faster-to-integrate banking logos. Customer concentration remains a primary risk, with one client accounting for nearly one-third of revenue currently evaluating a multi-vendor approach. Macroeconomic headwinds continue to weigh on the retail, automotive, and title insurance verticals, though management views any stabilization in consumer sentiment as incremental upside. The company maintains a strong liquidity position with $11.8 million in cash and no debt, stating there are no plans to raise capital in the near term. Management flagged that while automotive scanning volumes have trended lower, they anticipate a reversal as nationwide car sales stabilize. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified the evaluation covers substantially all use cases but noted the customer recently signed a new purchase order, indicating continued reliance on the platform. The volume reduction has not yet reached the 'doomsday scenario' levels initially communicated by the client, and the situation remains highly volatile due to the client's internal merger activity. CEO Bryan Lewis distinguished Intellicheck's DMV-validated barcode verification from competitors who primarily use 'templating' or visual reviews to see if a license looks authentic. He argued that Intellicheck's exclusive DMV relationships provide a level of sub-second decisioning that orchestration layers cannot replicate. The shift in revenue mix toward banking (now 48%) is expected to continue as smaller banks are easier to onboard and face the same fraud percentages as 'whales'. Management prefers the higher per-transaction margins and faster sales cycles of regional banks compared to the lengthy, complex integration processes of Tier-1 institutions.

Interested in Intellicheck, Inc.? Here are five stocks we like better. Intellicheck reported solid second-quarter results, with revenue of $5.9 million, net income of $633,000, 91% gross margin and a fifth consecutive quarter of positive adjusted EBITDA. The company ended the quarter with $11.8 million in cash and no debt. A major customer representing roughly 29% of first-half revenue is reviewing its vendor strategy, creating uncertainty around transaction volumes. Management said the review has had limited impact so far but warned that 2026 revenue could be slightly below 2025 if the customer follows through on planned reductions. Intellicheck is pursuing diversification, particularly among banking and lending customers, which grew to about 48% of second-quarter revenue. Management expects positive EBITDA in the second half of 2026 and full-year GAAP profitability while continuing investments in engineering and go-to-market efforts. 3 Penny Stocks Analysts Believe Are Headed Higher Intellicheck (NASDAQ:IDN) reported second-quarter revenue of $5.9 million and net income of $633,000, while management said a major customer’s vendor-resiliency review could pressure transaction volumes and cause full-year revenue to fall modestly below 2025 levels if the customer completes its plan as communicated. Chief Financial Officer Adam Sragovicz said the customer represented approximately 29% of the company’s revenue during the first half of 2026. The customer began a broader review of vendors, departments and use cases in late June and early July, including but not limited to identity verification services. The initiative did not materially affect Intellicheck’s financial results for the three or six months ended June 30, he said. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be “Assuming the customer that Bryan referenced completes its plan as communicated, and as we noted in the 10-Q, we have not seen that level of volume reduction,” Sragovicz said. “We would expect total revenue for 2026 to be slightly lower than 2025.” President and Chief Executive Officer Bryan Lewis said the customer is evaluating a multi-vendor identity-verification approach intended to reduce reliance on any one provider. He emphasized that the review was driven by the customer’s vendor strategy rather than an issue with Intellicheck’s system or performance. → Nebius’ Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand Lewis said transaction traffic has not shifted to the extent the customer initially indicated, and that the customer recently issued another purchase order. The customer has also expressed an intention to migrate to Intellicheck’s newest application programming interface, which would provide access to additional fraud-risk signals, according to Lewis. During the question-and-answer session, management said the review covers substantially all of the use cases that generate volume, though not every use case. Sragovicz said the company learned of the initiative near the end of the second quarter and that it was expected to be a third-quarter evaluation project. → On Holding's Price Stumble May Be an Opening for a Company Built to Run “It has not gone as quickly as they said, and it has not resulted in as much volume shift as they said,” Sragovicz told analysts. He added that if current transaction patterns continued, Intellicheck would expect 2026 revenue to exceed 2025 revenue, but characterized the situation as early-stage and volatile. Lewis attributed some uncertainty surrounding the customer’s process to its merger-related environment. He said Intellicheck plans to provide further disclosure if developments become significant. Intellicheck recorded $573,000 of operating income and adjusted EBITDA of $1.1 million during the second quarter, its fifth consecutive quarter of positive adjusted EBITDA. Gross margin was 91%, according to Lewis. Second-quarter revenue: $5.9 million Second-quarter net income: $633,000 Second-quarter operating expenses: $4.9 million, down 1% year over year First-half revenue: $11.5 million First-half net income: $1.3 million First-half adjusted EBITDA: $2 million First-half cash from operations: $2.2 million The company ended the quarter with $11.8 million of cash and no debt. Accounts receivable declined to $2.7 million from $3.4 million at the end of 2025, while deferred revenue was $1.2 million. Sragovicz said Intellicheck expects to remain disciplined on expenses while continuing to invest in engineering and go-to-market initiatives. The company expects positive EBITDA in the second half of 2026 and expects to be profitable on a GAAP basis for the full fiscal year. However, it expects cash generated from operations to decline slightly during 2026 and said it could use cash in operations in future periods, partly because some customer fees have historically been invoiced ahead of usage. Lewis said the company’s diversification strategy has continued to shift its revenue mix. Banking and lending accounted for about 48% of second-quarter revenue, compared with roughly 40% in the prior-year quarter, according to management’s comments during the call. Retail represented about 26% of second-quarter revenue, with retail revenue down approximately 2% from a year earlier. The company signed three new banking and lending customers through Intellicheck Desktop, a delivery method that does not require a major integration, Lewis said. Management is also in discussions with several additional institutions, particularly smaller and mid-sized banks. Lewis said these customers can be implemented more quickly than large financial institutions and may pay higher per-transaction rates despite having lower volumes. In title insurance, Intellicheck said its direct customer relationships represent an estimated 43% of the market. Lewis said mortgage loan originations rose 14% year over year in the second quarter and benefited the company. Elsewhere, the company said a nationwide cargo and freight deployment with a food manufacturer, already carrying a low six-figure annual contract value, is expected to grow. Revenue in stadium and venue concessions increased from a year earlier, primarily at college and university locations. Automotive scanning volumes at dealer and channel-partner customers trended lower, while age-verification and background-checking businesses experienced volatility from smaller revenue bases. Lewis also said a large global customer in the social-media vertical has resolved image-capture issues and is again actively sending data to Intellicheck. The company can process more than 99% of the data it is receiving from that customer, he said, but Intellicheck has not included any revenue from the customer in its current forecast. Lewis said increasing synthetic identity and deepfake-driven fraud supports demand for Intellicheck’s identity-verification technology. He said the company’s barcode-level decisioning and its long-standing relationships with state motor vehicle departments differentiate its offering from alternatives that rely on visual document reviews or templates. “Our core differentiator, gold standard barcode-level decisioning, is durable,” Lewis said, adding that it becomes more valuable as artificial intelligence advances. Intellicheck, Inc is a provider of mobile identity verification and authentication solutions designed to help organizations verify credentials and combat fraud. The company’s technology leverages optical character recognition, machine learning, and biometric facial recognition to validate government‐issued IDs, passports, and other identity documents in real time. These solutions are deployed via on‐premises hardware or cloud‐based platforms, enabling clients to integrate identity checks directly into digital workflows and point‐of‐sale systems. The firm’s flagship offerings include mobile credential scanning applications and software development kits (SDKs) that support Know Your Customer (KYC), Anti–Money Laundering (AML), age verification, and regulatory compliance across multiple industries. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Intellicheck Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Revenue Grows 16% to $5.9 Million Net Income Rises to $0.7 Million Adjusted EBITDA Increases to $1.1 Million MELVILLE, N.Y., August 13, 2026--(BUSINESS WIRE)--Intellicheck, Inc. (Nasdaq: IDN) ("Intellicheck" or the "Company"), an industry-leading identity company delivering proprietary on-demand digital and physical identification validation solutions, today reported financial results for the second quarter ended June 30, 2026. The Company today also provided an update on a customer. Business Highlights Revenue was $5.9 million in the second quarter, up 16% year-over-year and 7% on a quarterly sequential basis. SaaS revenue comprised substantially all of total revenue. Adjusted EBITDA, a non-GAAP metric, was $1.1 million in the second quarter, increasing $1.0 million year-over-year, and marking the Company’s fifth consecutive positive quarter. Banking and lending represented approximately 48% of Q2 revenue and continues to be the Company’s largest growing vertical in terms of total revenue as it continues to gain traction in Desktop, the Alloy channel, and among smaller institutions. Retail represented approximately 29% of Q2 revenue. Momentum continued across emerging and adjacent verticals including cargo and freight, foreign auto manufacturers and their supplier networks, stadium and venue concessions, age-related and background-check verticals, and automotive dealer scanning volumes. "Our second quarter results reflect the benefits from continued progress on our diversification initiative as we now generate revenue from about 500 customers across 14 segments, both of which are diversified significantly from two years ago when we began these efforts," said Bryan Lewis, President and Chief Executive Officer of Intellicheck. "The momentum in our business was clear as revenue rose 16% year-over-year to a Q2 record of $5.9 million. In addition, our focus on operating discipline has helped drive four consecutive quarters of profitability, and five consecutive quarters of positive adjusted EBITDA which improved $1.0 million compared to the same period last year to $1.1 million." Customer Update At the end of the second quarter of 2026, the Company was informed by its customer, which represented approximately 29% of first-half 2026 revenue, the "Customer", that the Customer is shifting from a sole-source to a multi-source vendor architecture and is testing an alternative solution on select use cases that is expected to negatively affect our transaction levels with the Customer. The main phase of the transition was scheduled to commence in late July and as such had no material impact on Intellicheck’s results for the three- and six-month periods ended June 30, 2026. As of August 12, 2026, the Company has not yet seen the level of volume reductions this Customer’s plans call for. Lewis commented, "We are actively engaged with this Customer as they test their alternative solution. To date, the total traffic shift has not been to the extent their plan called for. Additionally, the Customer has indicated that their shift from a single source to a multi-source vendor architecture is not being driven by our results, as they have recently signed another purchase order and have indicated an intention to transition to our newest API. We believe this reflects recognition of the broader capabilities we can provide and the opportunity to further expand our support of their needs over the longer term." "Our business is significantly stronger and more diversified today than it was even several years ago, and as such is much better positioned to address this challenge than at any other time in our history. Excluding this Customer, revenue from our remaining base grew approximately 19% in the first half of 2026, and we expect this growth will continue as we continue to execute on our customer and vertical diversification initiative. We are focused on accelerating our pipeline of new customers and expanding the scope of what we do with existing customers which we expect will help drive positive adjusted EBITDA generation for the second half of the year as well as position the Company to be profitable for the full year." Financial and Balance Sheet Highlights Gross margin was 91% in the second quarter as compared to 90% in the year-ago period. Operating expenses were $4.9 million in both the 2026 and 2025 second quarters. Income from operations was $0.6 million and net income was $0.7 million, up from a loss of $(0.3) million and a net loss of $(0.3) million in the year-ago period. Adjusted EBITDA was $1.1 million in the second quarter, marking the Company’s fifth consecutive positive quarter. Adjusted EBITDA was $0.1 million in the second quarter of 2025 The Company ended the quarter with $11.8 million in cash and no debt. Cash from operations for the first half was $2.2 million. "We remain focused on cost discipline, while continuing to fund the engineering behind our platform accuracy and availability, and the go-to-market investment required to grow our revenue from current and new customers," said Adam Sragovicz, Chief Financial Officer of Intellicheck. "Importantly, we have a strong balance sheet, with $11.8 million in cash and no debt, which provides us the flexibility to execute on our growth initiatives." Earnings Conference Call Details Date / Time: Thursday, August 13 at 4:30 PM ET / 1:30 PM PT U.S. Dial-in: 877-407-8037 International Dial-in: 201-689-8037 A replay of the conference call will be available shortly after completion of the live event. To listen to the replay, please dial 877-660-6853 and use conference identification number 13761557. For callers outside the U.S., please dial 201-612-7415 and use conference identification number 13761557. The replay will be available beginning approximately three hours after the completion of the live event and will remain available until August 20, 2026. Adjusted EBITDA We use Adjusted EBITDA as a non-GAAP financial performance measurement. Adjusted EBITDA is calculated by adjusting net income (loss) for certain reductions such as restructuring severance expenses, interest and other income, provisions for income taxes, depreciation, amortization and stock-based compensation expense. Adjusted EBITDA is provided to investors to supplement the results of operations reported in accordance with GAAP. Management believes that Adjusted EBITDA provides an additional tool for investors to use in comparing our financial results with other companies that also use Adjusted EBITDA in their communications to investors. By excluding non-cash charges such as amortization, depreciation and stock-based compensation, as well as non-operating charges for interest and provisions for income taxes, investors can evaluate our operations and can compare the results on a more consistent basis to the results of other companies. In addition, Adjusted EBITDA is one of the primary measures that management uses to monitor and evaluate financial and operating results. We consider Adjusted EBITDA to be an important indicator of our operational strength and performance of our business and a useful measure of our historical operating trends. However, there are significant limitations to the use of Adjusted EBITDA since it excludes restructuring severance expenses, interest and other income, provisions for income taxes, stock-based compensation expense, all of which impact our profitability, as well as depreciation and amortization related to the use of long-term assets which benefit multiple periods. We believe that these limitations are compensated by providing Adjusted EBITDA only with GAAP net income (loss) and clearly identifying the difference between the two measures. Consequently, Adjusted EBITDA should not be considered in isolation or as a substitute for net income (loss) presented in accordance with GAAP. Adjusted EBITDA as defined by us may not be comparable with similarly named measures provided by other companies. Adjusted Gross Profit We use Adjusted Gross Profit as a non-GAAP financial performance measurement. Adjusted Gross Profit is calculated by adjusting gross profit for the reduction of amortization expense. Adjusted Gross Profit is provided to investors to supplement the results of operations reported in accordance with GAAP. We believe Adjusted Gross Profit is important because it focuses on the current operating performance, as amortization expense does not accurately reflect the current costs required to maintain the operational usage of our service. Rather, amortization expense reflects the allocation of historical software development costs over their estimated useful lives. As an indicator of our operating performance, Adjusted Gross Profit should not be considered an alternative to, or more meaningful than, gross profit as determined in accordance with GAAP. Our Adjusted Gross Profit may not be comparable to a similarly titled measure of another company because other entities may not calculate Adjusted Gross Profit in the same manner. About Intellicheck Intellicheck (Nasdaq: IDN), the industry leader in identity verification management, prevents the use of unauthorized IDs to stop identity-based fraud. Intellicheck is the only SaaS-based validation and proofing service that uses a unique and proprietary analysis of DMV-issued IDs to create trusted, real-time customer identity verification experiences across a wide variety of sectors, both in-person and digitally. Intellicheck is processing identity transactions for almost half the adult population in the United States and Canada annually with state-of-the-art technology solutions that are providing a seamless, invisible ID verification experience while delivering 99.975% decisioning in under a second when a customer is using our tools to capture the document. For more information on Intellicheck, visit us on the web and follow us on LinkedIn, X, Facebook, and YouTube. Safe Harbor Statement Statements in this news release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (PSLRA). These include statements regarding our customer's vendor transition and multi-vendor architecture; the pace, extent and duration of the resulting volume reductions; whether any volumes are retained or restored and the economics of any retained or restored business; and our ability to recover or replace affected revenue. They also include statements regarding future demand for our products and services; our expectations for future revenue, profitability, Adjusted EBITDA, cash flow and other financial metrics; our growth strategy and ability to scale the business; expansion into new vertical markets and customer segments; the anticipated impact of artificial intelligence on identity fraud and on demand for our products; and our ability to leverage existing partnerships or enter into new ones. These statements express management's current views and use words like "anticipate," "believe," "estimate," "expect," "intend," "plan," "project," "target," "will," "would" and similar terms. This statement is included for the express purpose of availing Intellicheck, Inc. of the protections of the safe harbor provisions of the PSLRA. Actual results could differ materially due to factors including: customer concentration; market acceptance and adoption of our SaaS offerings; competition, including from providers with greater resources; the rapid evolution of artificial intelligence, including the use of generative AI to create synthetic identities and deepfakes, and our ability to maintain technological advantages; cybersecurity incidents, data breaches or service interruptions; changes in privacy, biometric, data protection and AI laws and regulations; pending or future litigation and regulatory inquiries; our ability to attract and retain key personnel; macroeconomic and geopolitical conditions and the effect on the economy of the ongoing conflict in the Middle East, including effects to consumer sentiment and inflationary pressures; our ability to utilize net operating loss carryforwards, including limitations under Section 382; and risks associated with being a smaller reporting and micro-cap company. Other risks are described in our filings with the Securities and Exchange Commission, including under "Risk Factors" in our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. We do not assume any obligation to update the forward-looking information contained in this release. View source version on businesswire.com: https://www.businesswire.com/news/home/20260813268771/en/ Contacts Investor Relations:Keaton [email protected] Media and Public Relations:Sharon Schultz (302) [email protected]

Intellicheck Mobilisa, Inc. (IDN) came out with quarterly earnings of $0.03 per share, in line with the Zacks Consensus Estimate . This compares to a loss of $0.01 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this company would post earnings of $0.03 per share when it actually produced earnings of $0.03, delivering no surprise. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Intellicheck Mobilisa, which belongs to the Zacks Security and Safety Services industry, posted revenues of $5.94 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.14%. This compares to year-ago revenues of $5.12 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Intellicheck Mobilisa shares have lost about 44.8% since the beginning of the year versus the S&P 500's gain of 13.2%. While Intellicheck Mobilisa has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Intellicheck Mobilisa was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.03 on $6.68 million in revenues for the coming quarter and $0.17 on $25.44 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Security and Safety Services is currently in the top 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. ClearSign Technologies (CLIR), another stock in the broader Zacks Industrial Products sector, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 19. This combustion systems technology company is expected to post quarterly loss of $0.25 per share in its upcoming report, which represents a year-over-year change of +16.7%. The consensus EPS estimate for the quarter has been revised 6.8% higher over the last 30 days to the current level. ClearSign Technologies' revenues are expected to be $0.61 million, up 369.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intellicheck Mobilisa, Inc. (IDN) : Free Stock Analysis Report ClearSign Technologies Corporation (CLIR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Revenue: $5.524 million in Q1 2026, up 13% from $4.894 million in Q1 2025. SaaS Revenue: $5.514 million, a 13% increase from $4.868 million in Q1 2025. Adjusted EBITDA: $935,000, with a margin of approximately 17%, compared to a loss of $17,000 in Q1 2025. Net Income: $636,000 or $0.03 per diluted share, compared to a net loss of $318,000 or $0.02 per diluted share in Q1 2025. Gross Profit Margin: 91% in Q1 2026, up from 89.7% in Q1 2025. Adjusted Gross Profit Margin: 93.4%, up from 91.8% in the prior year period. Operating Expenses: Decreased 5% to $4.483 million from $4.740 million in Q1 2025. Cash and Cash Equivalents: $10.062 million as of March 31, 2026, with no debt. Operating Cash Flow: $444,000 generated in Q1 2026. Accounts Receivable: Increased to $5.740 million from $3.365 million at December 31, 2025. Warning! GuruFocus has detected 7 Warning Signs with SAU:2082. Is IDN fairly valued? Test your thesis with our free DCF calculator. Release Date: May 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Intellicheck Inc (NASDAQ:IDN) reported a 13% year-over-year revenue growth, reaching approximately $5.5 million in Q1 2026. The company achieved its fourth consecutive quarter of positive adjusted EBITDA, with a margin of approximately 17%. Intellicheck Inc (NASDAQ:IDN) ended the quarter with over $10 million in cash and no debt, indicating a strong financial position. The banking and lending vertical, which represents over 50% of quarterly revenue, continues to grow strongly, driven by fraud prevention needs. The company is expanding its market reach with new desktop delivery methods, opening opportunities with smaller banks and credit unions. The macroeconomic environment, including the military conflict in Iran and rising oil prices, negatively impacted consumer confidence and retail transaction volumes. Retail, which accounts for approximately 30% of revenue, experienced a decline in scanning volumes due to reduced foot traffic and consumer belt-tightening. The automotive vertical faced challenges as US auto sales fell 5% to 6% year-over-year in Q1 2026, affecting scanning volumes at auto dealer clients. Title insurance vertical was impacted by rising mortgage rates and geopolitical uncertainty, slowing mortgage origination activity. The company faces headwinds from elevated interest rates and consumer caution, which may continue to influence some verticals in the near term. Q: For the retail vertical, do you have the revenue figures for Q1 2025 and Q1 2026? A: Bryan Lewis, President and CEO, mentioned that while he didn't run the exact numbers, the revenue generally aligns with transactional volume. Typically, there's a 10% drop from Q4 to Q1 due to seasonality, and an additional 5% to 10% drop likely due to economic factors. Q: Are there any trends in pricing or transaction volume overall? A: Bryan Lewis noted that pricing continues to see upticks, particularly in new markets. The company is able to demonstrate pricing power, and new sales are moving up. They are also implementing a "minimum to play" pricing strategy, especially with suppliers to automotive companies. Q: With headwinds in scan volumes across some verticals, how should we think about growth for the rest of the year? A: Bryan Lewis emphasized that despite headwinds, Intellicheck grew 13% year over year. The expansion into new markets and delivery methods, such as desktop delivery, is expected to support continued growth. He also mentioned that improvements in consumer confidence and interest rates could provide additional tailwinds. Q: What does the pipeline look like for new logos and existing financial customers? A: Bryan Lewis stated that most large customers are on contracts and expanding. The company is seeing good leads and new RFPs, partly due to banking relationships. Existing customers are also expanding their use of Intellicheck's services. Q: How did the quarter play out monthly, and what are the expectations for Q2? A: Bryan Lewis explained that banking grew while consumer credit was lower than previous quarters, influenced by consumer confidence and geopolitical factors. He suggested that Q2 might be closer to flat compared to typical 5% growth, depending on scanner availability and economic conditions. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Tuesday, May 12, 2026 at 4:30 p.m. ET President and Chief Executive Officer — Bryan Lewis Chief Financial Officer — Adam Sragovicz Investor Relations — Gar Jackson Gar Jackson: Thank you, operator. Good afternoon, everyone, and thank you for joining us today for Intellicheck's First Quarter 2026 Earnings Call. Before we get started, I will take a moment to read our forward-looking statement. Certain statements in this conference call constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as amended. When used in this call, words such as will, believe, expect, anticipate, encourage and similar expressions as they relate to the company or its management identify forward-looking statements. These statements are based on management's current expectations and beliefs about future events. As with any projection or forecast, they are inherently susceptible to uncertainty and changes in circumstances, and the company undertakes no obligation to update or alter its forward-looking statements, whether resulting from new information, subsequent events or otherwise. Additional information concerning forward-looking statements is contained in the company's filings with the SEC. Throughout this call, we may reference certain financial metrics that have been rounded for ease of discussion. Statements made today are as of May 12, 2026. Management will use the financial terms adjusted EBITDA and adjusted gross margin. Please refer to our press release issued this afternoon for further definition, reconciliation and context for the use of these terms. We will begin today's call with Bryan Lewis, Intellicheck's President and Chief Executive Officer. He will be followed by Adam Sragovicz, our Chief Financial Officer. Following their prepared remarks, we will take questions from our analysts and institutional investors. Today's call will be limited to 1 hour, and I will now turn it over to Bryan. Bryan Lewis: Thanks, Gar, and good afternoon to everyone, and thank you for joining us today. I'll start by doing something I always try to do, be direct about what drove the quarter, which was impacted in part by the macro environment. Then I will get to the numbers that showed significant EBITDA growth, marking our fourth quarter in a row of positive EBITDA and our third quarter in a row of positive net income. The first quarter of 2026 played out against one of the more challenging macroeconomic backdrops that we have seen in several years. The military conflict in Iran, which intensified in the first quarter, created a genuine economic ripple effect across virtually every sector of our economy. Oil prices surged, pushing gasoline prices toward $4 and above in many markets. This is one of the factors that impacted consumer confidence and consequentially affected our retail customers. Additionally, as evidenced by reporting on multiple news outlets, mortgage rates climbed to their highest levels in 7 months as financial markets absorbed the geopolitical shock. And consumer confidence, which I just noted was already trending in the wrong direction, deteriorated further. And inflation, which had appeared to be normalizing at around 2.4% early in the quarter, reaccelerated sharply to 3.2% year-over-year in March. For Intellicheck specifically, these forces created headwinds in 3 of our verticals. In retail, that is now approximately 30% of our revenue, consumer belt tightening continued to weigh on transaction volumes. Our retail clients scan fewer IDs when foot traffic declines, and foot traffic clearly slowed in Q1 for our customers as consumers pulled back in addition to the normal Q4 to Q1 holiday decline. In automotive, U.S. auto sales are estimated to have fallen 5% to 6% year-over-year in Q1 as high borrowing costs, record vehicle purchases and economic uncertainty kept buyers on the sidelines, impacting scanning volumes at some of our auto dealer clients. On the title insurance side, the combination of rising rates and geopolitical uncertainty slowed mortgage origination activity. Despite all of these economic factors, I am pleased to report that Intellicheck continued its growth trajectory with growth of approximately 13% year-over-year. I believe this underscores the wisdom of our decision to expand into other verticals. Our first quarter revenue was approximately $5.5 million versus $4.9 million in Q1 2025. We delivered adjusted EBITDA of $935,000, representing a margin -- EBITDA margin of approximately 17% versus our adjusted EBITDA of negative $17,000 1 year ago. This marks our fourth consecutive quarter of positive adjusted EBITDA. This is a milestone that I believe speaks directly to the operating leverage we have built into this model. We had earnings per share of $0.03, marking our third quarter in a row of profitability and ended the quarter with over $10 million in cash and $0 debt. I will tell you, delivering 13% revenue growth in this macro environment with 17% EBITDA margin is something I am generally proud of. Now let's walk through our vertical performance. Banking and lending remain our core growth engine and represented over 50% of our quarterly revenue growing strongly in Q1. This mix shift has fundamentally changed the resilience of this business. Our largest regional banking client with a 3-year contract valued in the very high 7 figures is now fully implemented throughout all their bank branches. Their team is not just ramping volumes. They are in active conversations with us about expanding the use of Intellicheck's technology in additional use cases and departments. The ROI and fraud prevention at these banks is not subtle. Account takeover losses average approximately $2,300 per incident. Some clients tell us they experienced monthly fraud losses north of $40,000 before they implemented Intellicheck. The payback on our technology is often measured in days, not months. And in addition to stopping fraud, we also help them onboard good customers faster, a significant and valuable attribute that I believe is frequently overlooked. Beyond our major bank relationships, our new desktop delivery method is opening meaningful new doors with smaller banks and credit unions. This clearly reflects the benefits of our desktop delivery of our core services. This delivery service requires no integration with the bank's core platform and implementation is immediate. You may recall that credit unions and smaller banks have historically been hampered by long technology integration queues with their core technology providers. I am pleased to report that we are seeing strong inbound interest for our desktop product that is designed to address this issue. We believe this product has the potential to materially expand our addressable market without requiring a third party to facilitate the growth. Implementing this desktop technology, we have signed 3 new clients with several others in review. While these are smaller deals, they can get up and running quickly. That being said, bank platform partnerships are also very important. I'm also excited to share that our new partnership with Alloy is starting to generate early traction. Our partnership here is a valuable one given it is one of the leading identity and fraud prevention platforms in the banking and fintech space. Their customer network is substantial. We believe being embedded in our platform significantly reduces buying friction for institutions already operating within the Alloy ecosystem. These kinds of strategic partnerships are an important element in how we grow this component of the banking vertical from here. Retail represented approximately 30% of 2025 revenues, and as I discussed earlier, was certainly challenging during the first quarter. We saw year-over-year declines in scanning volumes that was similar to the sequential period last year, and we believe that it is entirely consistent with the consumer confidence and macro headwinds I described. Through our active diversification efforts, we are no longer dependent on retail for growth. If consumer sentiment improves as the macro picture settles, any recovery in retail volumes will be an incremental upside for us. Also, as I previously discussed, our title insurance vertical was impacted in Q1 by the mortgage rate environment. However, I want to call out a milestone that I am genuinely excited about. First American Title successfully launched their digital e-commerce identity verification capability in Q1. You may remember, we told you this was coming on the last quarter's call. This is a meaningful expansion of how our technology is embedded in their platform. It is exactly the kind of deepening of the relationship that drives long-term value. When rates normalize and real estate volumes recover, we believe this vertical has substantial upside potential. We're also seeing growth in our other verticals. Our age-related and background check verticals continue to grow steadily. The nationwide rollout with our food manufacturer client addressing cargo freight fraud is showing good progress as well. That account is now running in the low 6-figure annual contract value range. Additionally, our foreign auto manufacturer clients and their supplier networks continue to expand. In the stadium concessions market vertical, we added a few additional clients, although these are starting at very low volumes. While this remains a long-term opportunity, we are building the foundation for further growth. On the product and technology front, our team continues to execute at a high level. As I shared with you, our desktop application is gaining solid traction. We are also seeing progress with our mobile SDK, hub reporting console and portal delivery method. As a reminder, our customers like our hardware-free solutions that are quick and easy to implement. And here's the thing I keep coming back to. Our core differentiation is unique and it is durable. We can verify the authenticity of a government-issued ID in less than a second with 99% decisioning. We do this by checking against the exact bar code specification embedded by each state DMV at the time of issuance. Keep in mind that no competitor has access to these specifications. This is because we continue to be the trusted test lab for state DMV systems, a relationship we've had for more years than I can count. This exclusivity is key as we see threats continue to evolve at an extraordinary pace. AI-generated fakes are becoming more sophisticated every quarter, which I believe will become an increased problem for our competitors. Synthetic identity fraud skyrocketed 300% in just the first quarter. Deepfake-driven fraud was up over 1,000%. Visual template checks, which is what most of our competitors rely on, cannot stop these fakes. We can. That is not going to change, and it gets more valuable every year. Our marketing initiatives are continuing to make a difference as they continue generating lead activity. The agency we brought on board is sharpening our messaging and building brand awareness. Our IDN threat report has been an effective thought leadership piece across banking, title, automotive and the cargo freight audiences. This original data documenting the fraud trends we observed in 2025 positions us as a credible source of industry data and intelligence. Our podcast content, white papers and industry conference presence continue to build Intellicheck's brand as the definitive authority in real-world ID verification. In closing, I'm continuing to be mindful as to how 2026 is unfolding. Clearly, the macro environment remains uncertain. The Iran conflict, elevated interest rates and consumer caution are real factors that will continue to influence some of our verticals in the near term. We are watching that carefully every day. But here's what gives me added confidence. Our banking and lending vertical is driven by fraud prevention. This is mission-critical, nondiscretionary spending for every bank and credit union we work with. This category does not soften in a difficult economy. If anything, it becomes more urgent. Keep in mind, this is now more than half of our business. We believe that we have opportunities to continue growth with our existing clients in addition to signing new clients. We believe that we are at the inflection point in our business model to profitability. At our current run rate, virtually every incremental revenue dollar flows meaningfully to the bottom line. We have over $10 million in cash, no debt and a product that we believe genuinely cannot be replicated. Without providing formal guidance, we believe EBITDA margins will remain positive, and we see potential acceleration in the back half of the year. Looking forward, we believe that we are well positioned to deliver positive net income for the full year 2026. This would be a significant milestone for this company. We also continue to advance our Investor Relations initiatives and expect to participate in a number of upcoming investor conferences, including the Sidoti Microcap Virtual Conference next week. In June, we will be participating in the RBC Financial Technology Conference in New York, the D.A. Davidson Conference in Nashville and the Planet MicroCap Showcase in Las Vegas. These events provide valuable opportunities to further expand awareness of Intellicheck and communicate our strategic priorities and long-term growth objectives. In addition, they provide valuable platforms to keep you, our shareholders, informed while at the same time engaging with the broader investment community. The headwinds we faced in Q1 are real, but so is the trajectory we are on to maintain and expand profitability. We are a fundamentally different company than we were 24 months ago, and I am confident in where the business is going. Now I will turn it over to Adam. Adam Sragovicz: Thank you, Bryan. We are off to a strong start in 2026, and I want to take a moment to put that in context. Bryan described the macro backdrop and against that backdrop, I'm genuinely pleased with what we've delivered. Total revenue for the first quarter of 2026 increased $630,000 or 13% to $5.524 million compared to $4.894 million in the first quarter of 2025. SaaS revenue grew $646,000 or 13% to $5.514 million from $4.868 million in the same period of 2025. The growth was driven especially by financial services and banking, where identity fraud pressures remain elevated and customers continue to deepen the use of our platform. Gross profit as a percentage of revenues was 91% in the first quarter of 2026 compared to 89.7% in the first quarter of 2025, a 130-basis point improvement. On an adjusted basis, excluding noncash amortization of capitalized software costs, adjusted gross profit margin was 93.4% compared to 91.8% in the prior year period, representing a 160-basis point improvement. Both measures reflect the continued operating efficiency we have achieved with our cloud infrastructure. Our cost of revenue, excluding amortization, was $362,000 in Q1 of 2026, down from $399,000 in Q1 of 2025, even as revenue grew 13%. Noncash amortization allocated to cost of revenues was $137,000 in Q1 of 2026 compared to $103,000 in Q1 of 2025 as previously capitalized software development costs continue to amortize through the income statement. As we noted on our last call, our capitalization of new software costs has declined to near 0 levels, which means this amortization headwind will diminish over the next several years as earlier vintage capitalized assets roll off. Operating expenses decreased $257,000 or 5% to $4.483 million in the first quarter of 2026 compared to $4.740 million in the first quarter of 2025. In 3 of the past 5 quarters, including the last 2, operating expenses have declined year-over-year, while revenue grew at double-digit rates. SG&A expenses decreased $211,000 or 6% to $3.242 million compared to $3.453 million in Q1 of 2025. The reduction reflects continued discipline across personnel costs, marketing spend and professional fees. R&D expenses decreased $46,000 or 4% to $1.241 million from $1.287 million in Q1 of 2025. I would note that R&D costs are now almost entirely cash expenses given the near elimination of software capitalization. The GAAP number and the cash number are effectively the same, which makes our R&D line more straightforward to interpret than in prior years. As a result of these dynamics, we reported operating income of $542,000 in the first quarter of 2026 compared to an operating loss of $348,000 in the first quarter of 2025, an $890,000 year-over-year improvement at the operating line. Other income was $94,000, primarily consisting of interest earned on our cash balances compared to $30,000 in the prior year period. The increase reflects both the higher average cash balance we carried and favorable short-term rate positioning. Net income for the first quarter of 2026 was $636,000 or $0.03 per diluted share compared to a net loss of $318,000 or $0.02 per diluted share in the first quarter of 2025, a swing of nearly $1 million year-over-year. This marks our third consecutive quarter of positive net income. The weighted average diluted share count was 20.9 million for Q1 of 2026 compared to 19.8 million for Q1 of 2025. Adjusted EBITDA for the first quarter of 2026 was $935,000 compared to a loss of $17,000 in the first quarter of 2025, representing a year-over-year growth of $952,000. This is our fourth consecutive quarter of positive adjusted EBITDA. And I want to remind everyone that Q1 is seasonally our softest quarter given the absence of a certain holiday retail uplift we see in Q4. To put that in perspective, 1 year ago, we were essentially at breakeven on an adjusted EBITDA basis in Q1. This quarter, we generated nearly $1 million and delivered an adjusted EBITDA margin of approximately 17%. Depreciation and amortization was $193,000 and stock-based comp was $200,000 in Q1 of 2026, consistent with recent trends. For the first quarter of 2026, we recognized no income tax provision. We continue to carry a full valuation allowance against our net deferred tax assets of approximately $6.7 million, which GAAP requires as long as our 3-year cumulative taxable income position remains negative. As I mentioned on our last call, the prior year's losses keep that cumulative test negative for now, but the window is improving as each profitable quarter is added and loss periods roll off. At March 31, 2026, the company had cash and cash equivalents totaling $10.062 million, an increase of $412,000 from $9.650 million at December 1, 2025. The first quarter is typically a period of cash usage given the seasonality of our business, so generating operating cash flow of $444,000 in Q1 is a strong result. We have no outstanding debt, which means our balance sheet is entirely equity and business financed. Working capital at March 31, 2026, was $11.119 million. Total assets were $27.109 million and stockholders' equity was $21.533 million. Accounts receivable grew to $5.740 million at March 31 compared to $3.365 million at December 31. This increase is largely a timing artifact of our Q1 billings pattern. Annual contracts that renew in the first quarter generate substantial invoicing in the first weeks of the year with collections sometimes completing in Q2. Our allowance for credit losses remained stable at $157,000. Our capital requirements remain modest. Capital [indiscernible] only $33,000 in Q1 of 2026. Our product improvements are expensed as incurred rather than capitalized and our infrastructure runs on major cloud platforms rather than owned hardware. We are encouraged by how the year has started. The combination of consistent revenue growth, improving margins and the first profitable Q1 in company history tells us that the operating model changes we've made are working. Looking ahead, we expect gross margin profile to remain in the 90% to 91% GAAP range with adjusted gross margins continuing to run the 92% to 93% range. The noncash amortization of capitalized software costs will remain a small headwind in the near term, but will diminish over time. On the expense side, we remain committed to growing operating expenses at a rate below our revenue growth rate. That discipline is what drives the operating leverage we are seeing. Finally, I want to briefly address capital allocation. Our cash position gives us flexibility. We are investing in the business, especially in marketing and sales capacity, customer success and in product at a level we believe is appropriate given our growth targets. We will continue to regularly evaluate how to deploy that capital in ways that create long-term value for shareholders. I'll now turn the call over to the operator for questions. Operator: [Operator Instructions] And the first question comes from the line of Mike Grondahl with Northland Securities. Mike Grondahl: For the retail vertical, do you guys have what revenue was 1Q '25 and 1Q '26? Bryan Lewis: Good question, Mike. I didn't run those numbers, but it roughly runs in line with, obviously, transactional volume, which was -- if you remember, generally, we drop at least 10% Q1 to -- I'm sorry, Q4 to Q1 just for the seasonality of the holidays. And we still have 2 of our major clients who have a lot to do with retail who are not on a straight-line revenue model yet. So they saw the seasonality, but we did see, I'm going to say, another good 5% to 10% drop, which I'm going to say is probably economic factor. Mike Grondahl: Got it. Got it. And then any trends you're seeing on pricing or transaction volume overall? Bryan Lewis: So that is -- so pricing, we continue to see upticks in pricing. And I think it's also very much dependent upon the market. Again, if you think about our largest clients all renewed last year, and they go into 3-year contracts with CPI kind of adjustments every year. But in the new markets that we're going to, we continually are able to show pricing power. And those new sales are moving up. And we're also really starting to price a lot of things that we're changing is minimum to play. Again, one of the things we look at is, for example, the suppliers to some of the automotive companies that we're dealing with, it's like, look, we're not going to deal with you without paying X, right? And that means the price per transaction is relatively high, but we're saying we need to do that to factor in what it costs to support you. So overall, we're seeing what I feel is people are understanding that we are a differentiated product that deserves a premium because, again, I've said this a million times, just about everybody else does it the same way. Take a picture, compare to a template. They do not have the authoritative data that we have on the barcode, and that deserves a premium. Operator: The next question comes from the line of Rudy Kessinger with D.A. Davidson. Rudy Kessinger: So with the kind of headwinds to the scan volumes in a few of your verticals, just -- if we operate under the assumption that those persist in Q2 and likely throughout the second half of the year, how should we think about your potential growth profile throughout the rest of the year? Bryan Lewis: Look, I'm just going to go back to some of the numbers that we did. We still grew 13% year-over-year. And I think that has to do with other verticals that we're bringing in. I'd say the desktop delivery method is opening new markets. And it's not just banking. I mean it's -- desktop is working in the background check part of our business. It's working in the cargo part of our business because those folks generally don't have big IT staffs and they don't need it. They can get centralized reporting and instant implementation. So I think our expansion into new markets and expansion into new delivery methods is going to allow us to have continued growth throughout the year. And then the other thing that I'd say is that -- and I'm sure maybe your macroeconomic guys have a good idea of where things will go. But what we talk about a headwind, and we've seen it, right? When the market got good, all of a sudden, we had a tailwind from those markets. We are -- our customers continue to expand and bring on new retailers. However, until consumer confidence gets up there, and I think interest rates go down -- we've got some of our credit card customers are up around 35%, 39% on interest rates. That bumps people up. Now when that changes, I think it picks up. And in a way, just through being good stewards of our customers and the business that they're bringing in, that's a massive tailwind. So I'm happy with what I'm seeing in terms of pipeline, sales progress and then keep that going plus hopefully, the economy turns around in short order. I'm excited. Rudy Kessinger: Okay. Got it. And then talk to me about the pipeline. What does that look like both from a new logo standpoint? And then also, do you have any of your large financial customers that are set to renew this year? And if so, any expectations for expansion on those contracts? Bryan Lewis: So the majority of our large customers renew on our contracts. One of them is still in the kind of buying buckets, and they are expanding because they have been bringing on new retailers. One of the things that I like about them is part of the way they win business away from their competitors for credit card programs is they can offer better rates, and we know this because we've been on some of their sales calls, offer better rates on the program if they implement Intellicheck, which does 2 things for the retailer, lower rates and faster adoption of customers. So they've been bringing on more clients. So that's why part of what they've been doing is it has been expanding with us. And generally, every year, they think they buy a bucket that's going to last them the year and it never does. So overall, anybody that's big is locked in and/or growing. And then from the pipeline standpoint, like we said in the prepared remarks, I'm very, very happy with what the marketing crew we brought in have been doing. Really good leads, new RFPs that probably we would not have seen before. I'll be quite honest, through some banking relationships, we're getting introduced to new customers that -- or new prospects, I should say, that they know could use our product. So all in all, I'd say good team, good prospects and really good customers. Operator: The next question comes from the line of Jeff Van Rhee with Craig-Hallum Capital Group. Jeff Van Rhee: A couple for me. First, maybe just in terms of the quarter, how did they play out monthly? It feels sort of normal. January, February fell off. March, it got ugly. Just kind of curious, I mean, obviously, we're out into May, now you're well into Q2. Just kind of curious how each of those months has strung together. Have we hit a bottom? You've got pretty good visibility through the scan volumes. Just any commentary there on a more of a real-time month-by-month basis? Bryan Lewis: I'd say that banking was growing, retail was -- and when I say retail, consumer credit. The credit cards in that regard were lower than we've seen in previous quarters. Again, I think that has a lot to do with consumer confidence certainly picked up more when the whole Iranian conflict kind of got heated up. And I think the price of oil, which runs everything went up, offset a little bit by bringing on some new customers or existing banking clients expanding their usage and their volumes. I think you can look at the numbers. I don't think consumers are any more positive in May than they might have been in March or April. Jeff Van Rhee: Should we think then -- I mean, if I look at the last 3 years, I think your average Q1 to Q2 sequential growth is 5%. But it sounds like from what you're saying, we should be thinking more like flattish. I know you don't give guidance, but I mean, we need to get at least in the ballpark, just are we closer to flattish than your typical 5% growth quarter? And then just while you're on that, you mentioned being happy with the pipeline. Any particularly large needle-moving deals? Or is it a lot of onesie, twosies? Just a little more color on the pipeline. Bryan Lewis: I'd say that there's a couple of things. One is, and I think I mentioned this on the last call, there is sort of a shortage of scanners out there that banks need. And we have a couple of these banking clients who want to be able to do passports in addition to just drivers' licenses, which means they're all looking to upgrade their scanning devices. But if you just go look at what it takes and the time frame to get them, that will be, I think, sort of one of the determining factors on how fast our revenue grows and in which quarter. It will depend on delivery of those scanners to several of our signed customers who want to get moving. And that's completely out of my control. The customers are signed. The customers believe in us. The customers want to be up and running as fast as they can. And that's with this desktop product, which doesn't mean we don't have to be integrated to any of those core banking platforms that take forever. So it's -- that's out of my control. What I can say is the customers have signed and are ready to go. Jeff Van Rhee: And just the second part of the question then on pipeline. You commented on good pipeline. I guess what I'm wondering, is there any meaningful -- assuming volumes stay bleak, the economy stays bleak, oil prices stay elevated, I'm trying to figure out where the growth comes from. And if it's not volumes, I'm wondering what opportunity there is in the second half for major needle-moving customers like what you put up in '25, and I mean, seemingly every year, 1.5 years. Just what does that mega customer pipeline look like? Bryan Lewis: We always have customers in that kind of pipeline. It's just they take a very long time, and they are, what I'd say, stop and start all the time. Now what I like about this new sector that we've really gone into that we can get to with desktop -- they're smaller, they're nimble. They might not be worth $4 million a year, but they might be worth $0.25 million a year, but they can be up and running in 3 months. And you get -- and they're much easier. You get 10 of them, I'm just as happy. So while we're always going after the whales, we're also looking at the banks that are smaller. And then there's a ton of other different opportunities, different market sectors that are coming to us. I didn't say anything about cargo, right? But the average loss of a tractor trailer is $300,000, and it's happening all the time. That's a huge, huge sector for us. And we've got some of the biggest names in manufacturing who are recommending us to other people, their competitors because they all feel it because it's the same companies ripping them off. So there's a lot going on. I don't need to have one whale every year if I can make sure that I'm hitting a bunch of doubles all the time. Jeff Van Rhee: Last for me then, just in terms of actual signings in the quarter, the bookings of new business versus expectations, how did you fare? Bryan Lewis: For Q1, I think that we signed everybody we expected, but 1 who signed quite shortly after the quarter ended. Just a timing issue on their lawyers and our lawyers. Operator: The next question comes from the line of Scott Buck with Titan Partners. Scott Buck: Bryan, if I look at the year-over-year revenue growth, what of that -- in software, what of that of the 600 or so, 1,000 is coming from new logos versus just expansion of service with existing or legacy customers? Bryan Lewis: I'd say for this quarter -- and by the way, congratulations on the new spot. I'd say that for this quarter, the majority of it was expansion of existing clients, which kind of typically is our Q1 anyway. Given that almost nobody in banking or retail wants to touch their systems in Q4, which is -- even banking has a tad of seasonality to it, they don't want to go down. So generally, it has been we'll sign people, but they're not going to come up live because they're not doing anything in Q4 that could impact their core system that interacts with their clients. So I'd say that I think that the mix is kind of typical for what we have seen over the years that I've been with the company. Scott Buck: Okay. Perfect. That's helpful. And then my second question, I just wanted to ask about title insurance. How many partners in that space do you have? I mean, I guess if you were to put a -- you're touching X percent of the market or have access to X percent of the market. What does that look like today? Bryan Lewis: So the last time I ran numbers on who we have as direct clients, that would represent about 43% of the title market. If you just do a quick search, like who control the title market, ChatGPT gives you percentages of the market of each of the major names that added up to 43%. Scott Buck: Okay. Wow, so you already have fairly significant scale in that vertical? Bryan Lewis: Yes. And talking to the other few big guys that we don't have currently. But we have the who's who to pretty much a title. Operator: The next question comes from the line of Logan Hennen with Northland Securities. Logan Hennen: This is Logan jumping back in for Mike. You kind of touched on a bit already, but if you could just give some additional color into the pipeline opportunity with new and existing customers in the banking and lending vertical, that would be great. Bryan Lewis: I'm sorry, Logan. Can you clarify that question for me? What were you looking for? Logan Hennen: Some additional color on the pipeline opportunity with new and existing customers in the banking and lending vertical. Bryan Lewis: Okay. So for existing customers, there's always new expansion. Pretty much all of our clients have been talking to us about where else they can use us. I'd say there's one of our clients -- I don't know where else they could put us is probably the way I put it. And they're the one that have been growing a lot by taking credit card programs away from some of their competitors. The rest always are talking about how do we expand, what could we do different? Sandra, who now is my Chief Commercial Officer, and I have meetings this week and next week with 2 of what I call our super regionals so that we can discuss how we get partnered better with them at their request, right? They want to see what we're doing. Through the partnership with Alloy and then also the amount of inbounds that I'm seeing through marketing, again, smaller deals, maybe $100,000 to $250,000, but quick to implement, no cost to implement and basically immediate revenue, that's where I'm seeing a lot of interest and inbound interest as these smaller credit unions and smaller banks that get hit at the exact same proportion. So I run these stats all the time. And the percentage attempts of fraud are no different at these smaller places than they are at the largest nationwide banks that we have. So they get hit and the losses are the same, and it hurts them probably even more because they have fewer assets. Operator: This concludes the question-and-answer session. And I'd like to turn the call back to Bryan Lewis for closing remarks. Bryan Lewis: So first of all, thank you all for your time today. I'd say in closing, I'm sure is the case for every CEO, I'm very focused on the macro environment, which is challenging right now. I think we can all agree on that. But I want to leave you with this. We are a fraud prevention company that also, at the same time, speeds up the acquisition of great customers. And that is in the backdrop of a world where fraud is exploding, okay? We believe we have the best technology in this space, the right customers and the financial foundation to execute on our multiyear growth trajectory. I want to reiterate $10 million in the bank, no debt, right? That frees us up to be able to do, I believe, some good things. So we look forward to updating you on our progress when we report on our Q2 results. And with that, thank you all, and have a great evening. Operator: Thank you. This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Intellicheck IDN Q1 2026 Earnings Transcript was originally published by The Motley Fool

Net income improved to $636,000 with EPS of $0.03 Q1 record Adjusted EBITDA of $935,000 Quarter end cash balance of $10.1 million MELVILLE, N.Y., May 12, 2026--(BUSINESS WIRE)--Intellicheck, Inc. (Nasdaq: IDN), an industry-leading identity company delivering on-demand digital and physical identity validation solutions, today announced its financial results for the first quarter ended March 31, 2026. Total revenue for the first quarter ended March 31, 2026 grew 13% to a record $5,524,000 compared to $4,894,000 in the same period of 2025. First quarter SaaS revenue grew 13% and totaled $5,514,000 compared to $4,868,000 in the same period of 2025. "This quarter further validates our belief that Intellicheck has reached a key inflection point in the evolution of our business and our path to profitability. At our current operating run rate, incremental revenue is expected to flow meaningfully to the bottom line. We believe this demonstrates the leverage in our business model and the successful execution across the organization. We ended the quarter with more than $10 million in cash, no debt, and what we believe is a truly differentiated identity verification platform," said Intellicheck CEO Bryan Lewis. Gross profit as a percentage of revenues improved to 91.0% for the three months ended March 31, 2026 compared to 89.7% in the same period in 2025. Operating expenses for the three months ended March 31, 2026, which consist of selling, general and administrative expenses and research and development expenses decreased by 5.4% to $4,483,000 for the first quarter of 2026 compared to $4,740,000 for the same period of 2025. Included within operating expenses for the first quarters of 2026 and 2025 were $200,000 and $177,000, respectively, of non-cash equity compensation expense. Net income for the three months ended March 31, 2026 improved significantly to $636,000 or $0.03 per diluted share compared to Net loss of ($318,000) or ($0.02) per diluted share for the same period in 2025. Adjusted EBITDA (earnings before interest and other income, provision for income taxes, sales tax accrual, depreciation, amortization, stock-based compensation expense and certain non-recurring charges) also improved significantly to $935,000 for the first quarter of 2026 as compared to ($17,000) for the same period of 2025. A reconciliation of adjusted EBITDA to net income (loss) is provided in this release. As of March 31, 2026, the Company had cash of $10,062,000 and stockholders’ equity totaled $21,533,000. Conference Call Information The Company will hold an earnings conference call on May 12 at 4:30 p.m. ET/1:30 p.m. PT to discuss operating results. To listen to the earnings conference call, please dial 877-407-8037. For callers outside the U.S., please dial 201-689-8037. A replay of the conference call will be available shortly after completion of the live event. To listen to the replay, please dial 877-660-6853 and use conference identification number 13759884. For callers outside the U.S., please dial 201-612-7415 and use conference identification number 13759884. The replay will be available beginning approximately three hours after the completion of the live event and will remain available until May 19, 2026. Adjusted EBITDA We use Adjusted EBITDA as a non-GAAP financial performance measurement. Adjusted EBITDA is calculated by adjusting net income (loss) for certain reductions such as restructuring severance expenses, interest and other income, provisions for income taxes, depreciation, amortization and stock-based compensation expense. Adjusted EBITDA is provided to investors to supplement the results of operations reported in accordance with GAAP. Management believes that Adjusted EBITDA provides an additional tool for investors to use in comparing our financial results with other companies that also use Adjusted EBITDA in their communications to investors. By excluding non-cash charges such as amortization, depreciation and stock-based compensation, as well as non-operating charges for interest and provisions for income taxes, investors can evaluate our operations and can compare the results on a more consistent basis to the results of other companies. In addition, Adjusted EBITDA is one of the primary measures that management uses to monitor and evaluate financial and operating results. We consider Adjusted EBITDA to be an important indicator of our operational strength and performance of our business and a useful measure of our historical operating trends. However, there are significant limitations to the use of Adjusted EBITDA since it excludes restructuring severance expenses, interest and other income, provisions for income taxes, stock-based compensation expense, all of which impact our profitability, as well as depreciation and amortization related to the use of long-term assets which benefit multiple periods. We believe that these limitations are compensated by providing Adjusted EBITDA only with GAAP net income (loss) and clearly identifying the difference between the two measures. Consequently, Adjusted EBITDA should not be considered in isolation or as a substitute for net income (loss) presented in accordance with GAAP. Adjusted EBITDA as defined by us may not be comparable with similarly named measures provided by other companies. Adjusted Gross Profit We use Adjusted Gross Profit as a non-GAAP financial performance measurement. Adjusted Gross Profit is calculated by adjusting gross profit for the reduction of amortization expense. Adjusted Gross Profit is provided to investors to supplement the results of operations reported in accordance with GAAP. We believe Adjusted Gross Profit is important because it focuses on the current operating performance, as amortization expense does not accurately reflect the current costs required to maintain the operational usage of our service. Rather, amortization expense reflects the allocation of historical software development costs over their estimated useful lives. As an indicator of our operating performance, Adjusted Gross Profit should not be considered an alternative to, or more meaningful than, gross profit as determined in accordance with GAAP. Our Adjusted Gross Profit may not be comparable to a similarly titled measure of another company because other entities may not calculate Adjusted Gross Profit in the same manner. About Intellicheck Intellicheck (Nasdaq: IDN), the industry leader in identity verification management, prevents the use of unauthorized IDs to stop identity-based fraud. Intellicheck is the only SaaS-based validation and proofing service that uses a unique and proprietary analysis of DMV-issued IDs to create trusted, real-time customer identity verification experiences across a wide variety of sectors, both in-person and digitally. Intellicheck is processing identity transactions for almost half the adult population in the United States and Canada annually with state-of-the-art technology solutions that are providing a seamless, invisible ID verification experience while delivering 99.975% decisioning in under a second when a customer is using our tools to capture the document. For more information on Intellicheck, visit us on the web and follow us on LinkedIn, X, Facebook, and YouTube. Safe Harbor Statement Statements in this news release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (PSLRA), including statements regarding future demand for our products and services, future revenue, profitability, Adjusted EBITDA, cash flow and other financial metrics, our growth strategy and ability to scale the business, expansion into new vertical markets and customer segments, the anticipated impact of artificial intelligence on identity fraud and on demand for our products, and our ability to leverage existing partnerships or enter into new ones. These statements express management's current views and use words like "anticipate," "believe," "estimate," "expect," "intend," "plan," "project," "target," "will," "would" and similar terms. This statement is included for the express purpose of availing Intellicheck, Inc. of the protections of the safe harbor provisions of the PSLRA. Actual results could differ materially due to factors including: market acceptance and adoption of our SaaS offerings; customer concentration; competition, including from providers with greater resources; the rapid evolution of artificial intelligence, including the use of generative AI to create synthetic identities and deepfakes, and our ability to maintain technological advantages; changes in privacy, biometric, data protection and AI laws and regulations; pending or future litigation and regulatory inquiries; cybersecurity incidents, data breaches or service interruptions; macroeconomic and geopolitical conditions and the effect on the economy of the ongoing conflict in the Middle East, including effects to consumer sentiment and inflationary pressures; our ability to attract and retain key personnel; our ability to utilize net operating loss carryforwards, including limitations under Section 382; risks associated with being a smaller reporting and micro-cap company; and other risks described in our filings with the Securities and Exchange Commission, including under "Risk Factors" in our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. We do not assume any obligation to update the forward-looking information contained in this release. View source version on businesswire.com: https://www.businesswire.com/news/home/20260512159117/en/ Contacts Investor Relations: Gar Jackson (949) 873-2789 / [email protected] Media and Public Relations: Sharon Schultz (302) 539-3747 / [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributed the 13% revenue growth to a strategic pivot toward banking and lending, which now represents over 50% of revenue and acts as a non-discretionary hedge against macro volatility. Macroeconomic headwinds, including geopolitical conflict in Iran and high interest rates, led to a 5% to 6% decline in U.S. auto sales and reduced retail foot traffic, impacting transaction volumes in those specific verticals. The company achieved its first profitable Q1 in history, driven by significant operating leverage where double-digit revenue growth was paired with a 5% year-over-year decrease in operating expenses. The 'desktop delivery' method is cited as a key strategic pivot to bypass long IT integration queues at smaller banks and credit unions, allowing for immediate implementation and immediate revenue generation. Management emphasized that their core differentiation—checking state-issued barcode specifications—is increasingly valuable as visual-based competitors struggle with a 1,000% increase in deepfake-driven fraud. The partnership with Alloy is expected to reduce buying friction by embedding Intellicheck's technology directly into an existing identity and fraud prevention ecosystem used by major fintechs. Management expects to deliver positive net income for the full year 2026, marking a major transition from historical loss periods to sustained profitability. EBITDA margins are projected to remain positive with potential acceleration in the second half of the year as incremental revenue flows directly to the bottom line. Guidance assumes that while retail and title insurance remain pressured by high interest rates, the mission-critical nature of fraud prevention in banking will sustain growth. The company anticipates a diminishing headwind from non-cash amortization over the next several years as older capitalized software assets roll off the balance sheet. Growth in the back half of 2026 is partially dependent on the delivery of scanning hardware to signed banking customers, a factor management noted is currently outside their direct control. The company maintains a strong balance sheet with over $10 million in cash and zero debt, providing flexibility for marketing and sales investments. A full valuation allowance of approximately $6.7 million remains against net deferred tax assets due to historical cumulative losses, though this may change as profitable quarters continue. The cargo freight fraud vertical has reached a low six-figure annual contract value, representing a successful expansion into non-traditional identity verification markets. Accounts receivable increased to $5.740 million due to a timing artifact of Q1 annual contract renewals rather than underlying credit issues. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management stated that even if headwinds persist, growth will be sustained by the desktop delivery method opening new markets like background checks and cargo. Any improvement in consumer confidence or interest rate reductions would act as a 'massive tailwind' on top of current baseline growth. While large 'whale' deals remain in the pipeline, management is shifting focus toward 'hitting doubles'—signing multiple smaller banks ($100,000 to $250,000 range) that can be implemented quickly. The desktop product is the primary driver for this high-velocity sales strategy as it requires no core system integration. Intellicheck continues to see pricing upticks and is implementing 'minimums to play' for smaller suppliers to ensure profitability. Management argues their authoritative barcode data justifies a premium price over competitors who rely on visual template matching. The company currently has direct relationships representing approximately 43% of the title insurance market. Management is in active discussions with the remaining major players to further expand this footprint once real estate volumes recover.

Interested in Intellicheck Mobilisa, Inc.? Here are five stocks we like better. Intellicheck Mobilisa posted a strong Q1, with revenue up 13% year over year to $5.524 million and net income of $636,000, marking its third straight quarter of profitability. Adjusted EBITDA also turned sharply positive at $935,000 versus a small loss a year earlier. Banking and lending remained the company’s main growth engine, generating more than half of quarterly revenue and benefiting from a large regional bank rollout plus new desktop-based clients and an Alloy partnership. Management said fraud prevention spending in this segment remains mission-critical. Weaker consumer activity pressured retail, automotive and title insurance, with lower transaction volumes tied to soft confidence, higher rates and macro uncertainty. Despite those headwinds, Intellicheck said diversification helped offset the slowdown and it expects positive EBITDA and full-year 2026 net income. 3 Penny Stocks Analysts Believe Are Headed Higher Intellicheck Mobilisa (NASDAQ:IDN) reported higher first-quarter revenue and profitability, with management saying growth in banking and lending helped offset weaker transaction volumes in retail, automotive and title insurance amid a challenging macroeconomic backdrop. President and CEO Bryan Lewis said the first quarter of 2026 was affected by economic pressure tied to the conflict in Iran, higher oil and gasoline prices, rising mortgage rates, weaker consumer confidence and renewed inflation pressure. He said those conditions weighed on several customer segments that depend on consumer activity and transaction volumes. → MercadoLibre Boldly Invests in Growth: Discount Deepens “For Intellicheck specifically, these forces created headwinds in three of our verticals,” Lewis said, citing retail, automotive and title insurance. Even so, he said the company continued to grow because of its diversification into other markets, particularly banking and lending. Chief Financial Officer Adam Sragovicz said total revenue for the first quarter increased $630,000, or 13%, to $5.524 million, compared with $4.894 million in the same quarter of 2025. SaaS revenue rose 13% to $5.514 million from $4.868 million a year earlier. → Rocket Lab Just Hit a New All-Time High—Time to Buy or Let It Breathe? Gross profit as a percentage of revenue improved to 91% from 89.7% in the prior-year quarter. On an adjusted basis, excluding non-cash amortization of capitalized software costs, adjusted gross margin was 93.4%, compared with 91.8% a year earlier. Operating expenses declined 5% to $4.483 million from $4.740 million in the first quarter of 2025. Sragovicz said SG&A expenses fell 6% to $3.242 million, while research and development expenses declined 4% to $1.241 million. → MP Materials Is Quietly Building a Rare Earth Powerhouse The company reported operating income of $542,000, compared with an operating loss of $348,000 in the prior-year period. Net income was $636,000, or $0.03 per diluted share, compared with a net loss of $318,000, or $0.02 per diluted share, in the first quarter of 2025. Sragovicz said the quarter marked Intellicheck’s third consecutive quarter of positive net income. Adjusted EBITDA was $935,000, compared with an adjusted EBITDA loss of $17,000 a year earlier. Lewis said the result represented an adjusted EBITDA margin of about 17% and marked the company’s fourth consecutive quarter of positive adjusted EBITDA. Lewis said banking and lending represented more than half of quarterly revenue and remained the company’s primary growth engine. He said a large regional banking client, operating under a three-year contract valued in the “very high seven figures,” is now fully implemented across its branches and is discussing additional use cases and departments. Lewis said fraud prevention remains a mission-critical expense for banks and credit unions, noting that account takeover losses average approximately $2,300 per incident and that some clients have reported monthly fraud losses above $40,000 before implementing Intellicheck. The company also highlighted progress with its desktop delivery method, which Lewis said requires no integration with a bank’s core platform and can be implemented immediately. He said the product is helping Intellicheck reach smaller banks and credit unions that historically faced long technology integration queues. The company has signed three new clients using the desktop technology, with several others under review. Lewis also pointed to an emerging partnership with Alloy, which he described as a leading identity and fraud prevention platform in banking and fintech. He said being embedded in Alloy’s platform could reduce buying friction for institutions already operating within that ecosystem. Retail represented about 30% of 2025 revenue, according to Lewis, and was challenging during the first quarter. He said scanning volumes declined year over year, consistent with consumer confidence and macroeconomic pressures. In response to an analyst question, Lewis said retail volume typically falls from the fourth quarter to the first quarter because of seasonality, but the company saw an additional 5% to 10% drop that he attributed to economic factors. In automotive, Lewis said U.S. auto sales were estimated to have fallen 5% to 6% year over year in the first quarter, pressuring scanning volumes at some auto dealer clients. In title insurance, he said rising rates and geopolitical uncertainty slowed mortgage origination activity. Despite the near-term slowdown in title insurance, Lewis said First American Title launched its digital e-commerce identity verification capability during the quarter, calling it a meaningful expansion of Intellicheck’s role in that platform. In response to another analyst question, he said Intellicheck’s direct title insurance clients represent about 43% of the title market, based on the company’s most recent review. Lewis said Intellicheck continues to see growth in age-related and background check verticals. He also said a nationwide rollout with a food manufacturer client addressing cargo freight fraud is progressing and is now running in the low six-figure annual contract value range. Foreign auto manufacturer clients and supplier networks also continue to expand, he said. The company added a few stadium concessions clients, though Lewis said those accounts are starting at very low volumes and remain a longer-term opportunity. Lewis emphasized Intellicheck’s product differentiation, saying the company can verify the authenticity of a government-issued ID in less than a second with 99% decisioning by checking barcode specifications embedded by state DMVs at issuance. He said competitors generally rely on visual template checks and do not have access to the same specifications. Intellicheck ended the quarter with $10.062 million in cash and cash equivalents, up from $9.650 million at Dec. 31, 2025, and no outstanding debt. Sragovicz said the company generated $444,000 of operating cash flow in the first quarter, which he characterized as strong given typical seasonal cash usage. Accounts receivable increased to $5.740 million at March 31 from $3.365 million at year-end, which Sragovicz said was largely due to the timing of first-quarter billings for annual contract renewals. Capital expenditures were $33,000 in the quarter. Management did not provide formal guidance. Sragovicz said the company expects GAAP gross margins to remain in the 90% to 91% range, with adjusted gross margins in the 92% to 93% range. He said Intellicheck remains committed to growing operating expenses at a rate below revenue growth. Lewis said the company expects EBITDA margins to remain positive and sees potential acceleration in the second half of the year. He also said Intellicheck believes it is well positioned to deliver positive net income for full-year 2026. During the question-and-answer session, Lewis said most first-quarter revenue growth came from expansion of existing clients. He said the company signed the customers it expected in the quarter except for one that signed shortly after quarter-end due to legal timing. He also said the pipeline includes larger potential customers, though those opportunities can take longer, while smaller desktop-based deals may be implemented more quickly. Intellicheck Mobilisa, Inc is a provider of mobile identity verification and authentication solutions designed to help organizations verify credentials and combat fraud. The company's technology leverages optical character recognition, machine learning, and biometric facial recognition to validate government‐issued IDs, passports, and other identity documents in real time. These solutions are deployed via on‐premises hardware or cloud‐based platforms, enabling clients to integrate identity checks directly into digital workflows and point‐of‐sale systems. The firm's flagship offerings include mobile credential scanning applications and software development kits (SDKs) that support Know Your Customer (KYC), Anti–Money Laundering (AML), age verification, and regulatory compliance across multiple industries. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Intellicheck Mobilisa Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.