Core Insights - Identity validation is a niche market within the security sector, which is often overshadowed by more glamorous technologies like biometrics and AI tools [1] Company Overview - Intellicheck, Inc. (IDN) is highlighted as a promising company in the identity validation space due to its strong fundamentals and growth potential [1] Analyst Background - The analyst has a background in petroleum and gas engineering and has transitioned into finance, focusing on technology, infrastructure, and internet services [1]

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Core Insights - Intellicheck Mobilisa, Inc. reported quarterly earnings of $0.01 per share, exceeding the Zacks Consensus Estimate of a loss of $0.01 per share, and showing improvement from a loss of $0.02 per share a year ago, resulting in an earnings surprise of +200.00% [1] - The company achieved revenues of $6.01 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 8.46%, compared to revenues of $4.71 million in the same quarter last year [2] - Intellicheck Mobilisa shares have increased approximately 60.7% year-to-date, significantly outperforming the S&P 500's gain of 16.4% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.02 on revenues of $6.3 million, while the estimate for the current fiscal year is -$0.01 on revenues of $21.86 million [7] - The estimate revisions trend for Intellicheck Mobilisa was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Security and Safety Services industry, to which Intellicheck Mobilisa belongs, is currently ranked in the top 20% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Data and Key Metrics Changes - Revenues grew by 28% or $1.3 million to a record $6 million in Q3 2025 compared to $4.7 million in Q3 2024 [5][26] - Gross margin was 91%, with adjusted gross margin improving to 92.8% from 91.5% year-over-year [5][27] - Net income improved to $290,000 from a loss of $810,000 in the prior year, with earnings per share increasing to $0.01 [5][28] - Adjusted EBITDA reached a record $631,000, up from a negative $160,000 in Q3 2024 [5][29] Business Line Data and Key Metrics Changes - Banking and lending grew approximately 80%, representing about 50% of quarterly revenue [14] - Retail declined approximately 5%, accounting for about 30% of quarterly revenue [14] - Title insurance grew approximately 120%, representing just over 2% of quarterly revenue [14] - SaaS revenue increased by 26% to $5.9 million, making up about 98% of total revenue [26] Market Data and Key Metrics Changes - Significant growth was noted with a leading lease-to-own company, which grew over 700% [6] - A major bank and credit card issuer grew over 60% year-over-year and purchased additional transaction capacity [6] - The company entered into two-year agreements with a top title insurance company, expected to generate six-digit annual recurring revenue [7] Company Strategy and Development Direction - The company aims to diversify its revenue sources, reducing reliance on retail, which has been a headwind [33] - Focus on upselling existing clients and pursuing verticals such as title insurance and automotive [25] - Continued investment in product innovations, including a new Optical Character Recognition product and enhanced customer interfaces [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth despite economic headwinds, attributing success to diversification [76] - The company anticipates maintaining strong cash positions and positive adjusted EBITDA for the year [29][31] - Management highlighted the importance of real-time ID verification as a critical step in fraud prevention [21] Other Important Information - Intellicheck was named a Leader in the IDC MarketScape Worldwide Identity Verification and Financial Services 2025 Vendor Assessment [8] - The company is making progress with a global social media client, although the ramp-up has taken longer than expected [9][10] Q&A Session Summary Question: Are retail headwinds pretty much gone? - Management noted that retail has seen softening but diversification has helped mitigate impacts [33][34] Question: How much of the $6 million in revenue qualifies as new business? - Management estimated that new business might account for about 7-10% of total revenue [38] Question: Is there anything one-time or seasonal affecting SaaS revenue? - Management confirmed that there were no one-time impacts, and the regional bank's contribution was a full quarter's impact [44][47] Question: What are the dynamics driving incremental EBITDA margins? - Management indicated that stable operating costs and revenue growth are contributing to improved margins [55][60] Question: How is the company prioritizing cash balance? - Management emphasized reinvesting in R&D and marketing while remaining prudent with spending [71]

Revenue Growth - Revenues for the three months ended September 30, 2025 increased by $1,305, or 28%, to approximately $6,014 compared to $4,709 for the same period of 2024[115] - Revenues for the nine months ended September 30, 2025 increased by $1,971, or 14%, to approximately $16,031 compared to $14,060 for the same period of 2024[120] - Revenues for Q3 2025 reached $6,014 million, a 27.6% increase from $4,709 million in Q3 2024[133] - For the nine months ended September 30, 2025, revenues totaled $16,031 million, up from $14,060 million in the same period of 2024[133] Gross Profit and Margins - Gross profit for the three months ended September 30, 2025 increased by $1,158, or 27%, to $5,443, maintaining a gross profit margin of 91%[116] - Gross profit for the nine months ended September 30, 2025 increased by $1,678, or 13%, to $14,435, with a gross profit margin of 90%[121] - Gross profit for Q3 2025 was $5,443 million, representing a gross profit margin of 90.5%, slightly down from 91.0% in Q3 2024[133] - Adjusted gross profit for Q3 2025 was $5,580 million, with an adjusted gross profit margin of 92.8%, compared to 91.5% in Q3 2024[133] Operating Expenses - Operating expenses for the three months ended September 30, 2025 increased by $10, or 0.2%, to $5,205 compared to $5,195 for the same period of 2024[117] - Operating expenses for the nine months ended September 30, 2025 increased by $452, or 3%, to $14,843 compared to $14,391 for the same period of 2024[122] - Stock-based compensation for Q3 2025 amounted to $204 million, down from $237 million in Q3 2024[137] Net Income and Loss - The company reported a net income of $290 for the three months ended September 30, 2025, compared to a net loss of $(837) for the same period of 2024[118] - The company had an improved net loss of $(279) for the nine months ended September 30, 2025, compared to a net loss of $(1,406) for the same period of 2024[123] - Net income for Q3 2025 was $290 million, a significant improvement from a net loss of $837 million in Q3 2024[137] Adjusted EBITDA - Adjusted EBITDA for Q3 2025 was $631 million, compared to an adjusted EBITDA loss of $167 million in Q3 2024[137] - Adjusted EBITDA is considered an important indicator of operational strength, although it has limitations due to the exclusion of certain expenses[135] Cash and Working Capital - As of September 30, 2025, the company had cash and cash equivalents of $7,223 and working capital of $8,150[125] Financing Arrangements - The company has not engaged in any off-balance sheet financing arrangements or guaranteed any debt of other entities[138]

Financial Performance - Third quarter revenue increased by 28% to a record $6,014,000 compared to $4,709,000 in the same period of 2024[2] - Net income improved to $290,000 or $0.01 per diluted share, compared to a net loss of ($837,000) or ($0.04) per diluted share for the same period in 2024[6] - Adjusted EBITDA improved by $798,000 to $631,000 for the third quarter of 2025, compared to a loss of ($167,000) for the same period in 2024[7] - Revenues for the nine months ended September 30, 2025, were $16,031 million, up from $14,060 million in 2024, representing a growth of approximately 14%[21] - Adjusted EBITDA for the nine months ended September 30, 2025, was $688 million, compared to a loss of $341 million in the same period of 2024[18] - The company achieved a $1.1 million improvement in net income and a $798,000 improvement in adjusted EBITDA versus the prior year[3] Revenue Breakdown - SaaS revenue increased by 26% to $5,868,000 compared to $4,661,000 in the same period of 2024[2] - Adjusted Gross Profit for the nine months ended September 30, 2025, was $14,797 million, compared to $12,828 million in 2024, indicating an increase of about 15%[21] - Adjusted Gross Profit as a percentage of revenues for the nine months ended September 30, 2025, was 92.3%, compared to 91.2% in 2024[21] Cash and Equity - Cash and cash equivalents totaled $7.2 million as of September 30, 2025[8] - Total stockholders' equity increased to $18.9 million as of September 30, 2025, up from $17.7 million at the end of 2024[11] - The cash provided by operating activities for the nine months ended September 30, 2025, was $2,147 million, a significant turnaround from cash used in operating activities of $1,373 million in 2024[15] - The company reported a net increase in cash of $2,557 million for the nine months ended September 30, 2025, compared to an increase of $1,767 million in 2024[15] Operating Expenses - Operating expenses were relatively flat at $5,205,000 for the third quarter of 2025 compared to $5,195,000 for the same period in 2024[5] Market Strategy - The company plans to continue growing its customer base and advancing existing customer usage of its technology[3] - The company is focused on expanding its market presence, particularly in healthcare and auto dealerships, as part of its growth strategy[23] Identity Validation - The company validated around 100 million identities across North America annually, achieving a 99.75% decisioning rate in under a second[22] Financial Metrics Clarification - The company emphasizes that Adjusted EBITDA should not be considered in isolation from GAAP net loss, highlighting the importance of both metrics for evaluating financial performance[17] Loss Improvement - For the nine months ended September 30, 2025, the net loss was $279 million, an improvement from a net loss of $1,406 million in the same period of 2024[15]

Core Points - Intellicheck, Inc. will announce its third quarter 2025 financial results on November 12, 2025, after the U.S. stock markets close [1] - An earnings conference call will be held on the same day at 4:30 p.m. ET to discuss the operating results [2] - A replay of the conference call will be available shortly after the live event and will remain accessible until November 19, 2025 [3] Company Overview - Intellicheck is a leader in identity verification management, focusing on preventing unauthorized ID usage to combat identity-based fraud [4] - The company offers a unique SaaS-based validation service that analyzes DMV-issued IDs, providing real-time customer identity verification across various sectors [4] - Intellicheck processes identity transactions for nearly half of the adult population in the U.S. and Canada annually, achieving a decision accuracy of 99.975% in under one second [4] Industry Recognition - Intellicheck has been recognized as a Leader in the IDC MarketScape: Worldwide Identity Verification in Financial Services 2025 Vendor Assessment, highlighting its commitment to advanced technology solutions for fraud prevention [7]

Core Viewpoint - Intellicheck, Inc. will announce its third quarter 2025 financial results on November 12, 2025, after the U.S. stock markets close, followed by a conference call to discuss the operating results [1][2]. Company Overview - Intellicheck is a leading identity verification management company that provides proprietary on-demand digital and physical identity validation solutions, aimed at preventing identity-based fraud [4]. - The company processes identity transactions for nearly half of the adult population in the U.S. and Canada annually, utilizing advanced technology to deliver a seamless ID verification experience with a decision accuracy of 99.975% in under one second [4]. Upcoming Events - An earnings conference call will take place on November 12, 2025, at 4:30 p.m. ET/1:30 p.m. PT, with dial-in options provided for both U.S. and international callers [2]. - A replay of the conference call will be available shortly after the live event, accessible until November 19, 2025 [3]. Recognition - Intellicheck has been recognized as a Leader in the IDC MarketScape: Worldwide Identity Verification in Financial Services 2025 Vendor Assessment, highlighting its commitment to advanced technology solutions for fraud prevention [7]. Leadership Engagement - CEO Bryan Lewis will present at the ACAMS Las Vegas 2025 conference, focusing on innovation in identity verification, and will also be a keynote speaker at the FinovateFall 2025 conference [8][9].

Core Insights - Intellicheck, Inc. has been recognized as a Leader in the IDC MarketScape: Worldwide Identity Verification in Financial Services 2025 Vendor Assessment, highlighting its strong position in the identity verification market [1] Company Summary - The recognition emphasizes Intellicheck's commitment to advancing technology solutions that enhance fraud prevention for businesses and their customers [1]