Intellicheck(IDN) - 2025 Q1 - Quarterly Results

First Quarter 2025 Financial Results Intellicheck's Q1 2025 results show revenue growth, reduced net loss, and strategic client diversification Financial and Operational Highlights Intellicheck reported record Q1 2025 revenue of $4.9 million, a 5% increase, with a 90% gross margin and reduced net loss, while diversifying its client base Financial and Operational Summary | Financial Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $4,894,000 | $4,680,000 | +5% | | SaaS Revenue | $4,868,000 | $4,609,000 | +6% | | Gross Profit Margin | 90% | 91% | -1 ppt | | Operating Expenses | $4,740,000 | $4,768,000 | -1% | | Net Loss | ($318,000) | ($442,000) | +28% Improvement | | Diluted EPS | ($0.02) | ($0.02) | No Change | | Adjusted EBITDA | ($17,000) | ($117,000) | +85% Improvement | - The company is making significant progress in diversifying its client base, with rapid growth in sectors such as retail banking, title insurance, auto, email account security, background checks, logistics, and shipping[2] - As of March 31, 2025, the company held $5.1 million in cash and cash equivalents and had stockholders' equity of $17.6 million[6] Financial Statements The unaudited financial statements for Q1 2025 detail increased total assets to $24.6 million, revenue growth, reduced net loss, and positive cash flow from operations Unaudited Condensed Balance Sheets Total assets increased to $24.6 million as of March 31, 2025, driven by accounts receivable and deferred revenue, while stockholders' equity slightly decreased Balance Sheet Summary (in thousands) | Balance Sheet Item (in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $5,148 | $4,666 | | Total current assets | $13,527 | $9,912 | | Total assets | $24,561 | $20,933 | | Total current liabilities | $6,953 | $3,186 | | Total liabilities | $6,953 | $3,186 | | Total stockholders' equity | $17,608 | $17,747 | Unaudited Condensed Statements of Operations Q1 2025 revenue grew to $4.9 million, with gross profit increasing to $4.4 million, leading to a narrowed loss from operations and a reduced net loss Income Statement Summary (in thousands) | Income Statement Item (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenues | $4,894 | $4,680 | | Gross profit | $4,392 | $4,245 | | Total operating expenses | $4,740 | $4,768 | | Loss from operations | ($348) | ($523) | | Net loss | ($318) | ($442) | | Loss per common share (Basic/Diluted) | ($0.02) | ($0.02) | Unaudited Condensed Statements of Stockholders' Equity Total stockholders' equity decreased to $17.61 million by March 31, 2025, primarily due to the net loss, partially offset by stock-based compensation - For the three months ended March 31, 2025, stockholders' equity decreased by $139,000, resulting from a net loss of $318,000 and stock-based compensation of $179,000[11] Unaudited Condensed Statements of Cash Flows Net cash from operating activities was $750,000 in Q1 2025, with a net increase in cash of $482,000, bringing the quarter-end cash balance to $5.1 million Cash Flow Summary (in thousands) | Cash Flow Item (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $750 | $869 | | Net cash (used in) provided by investing activities | ($173) | $4,390 | | Net cash (used in) financing activities | ($95) | $0 | | Net increase in cash | $482 | $5,259 | | Cash, end of period | $5,148 | $9,239 | Non-GAAP Financial Measures The company presents Adjusted EBITDA and Adjusted Gross Profit to provide a clearer view of operating performance by excluding non-cash and non-operating charges - Management uses Adjusted EBITDA and Adjusted Gross Profit to monitor and evaluate financial and operating results, believing they provide a more consistent basis for comparison by excluding items like amortization, depreciation, and stock-based compensation[13][16] Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA Adjusted EBITDA loss significantly improved to $17,000 in Q1 2025, reflecting adjustments for depreciation, amortization, and stock-based compensation from GAAP net loss Adjusted EBITDA Reconciliation (in thousands) | Reconciliation Item (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss | ($318) | ($442) | | Depreciation and amortization | $154 | $72 | | Stock-based compensation | $177 | $334 | | Other adjustments | ($30) | ($81) | | Adjusted EBITDA | ($17) | ($117) | Reconciliation of GAAP Gross Profit to Non-GAAP Adjusted Gross Profit Adjusted Gross Profit reached $4.5 million, or 91.8% of revenue, in Q1 2025, after adding back amortization expense allocable to cost of revenues Adjusted Gross Profit Reconciliation (in thousands) | Metric (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Gross Profit | $4,392 | $4,245 | | Add: Amortization | $103 | $24 | | Adjusted Gross Profit | $4,495 | $4,269 | | Gross profit as a % of revenues | 89.7% | 90.7% | | Adjusted Gross Profit as a % of revenues | 91.8% | 91.2% | Other Information This section provides details on the earnings conference call, an overview of Intellicheck's identity verification services, and the Safe Harbor Statement for forward-looking statements Conference Call Information An earnings conference call was held on May 13, 2025, to discuss quarterly results, with replay information available for interested parties - An earnings conference call was scheduled for May 13, 2025, at 4:30 p.m. ET, with replay information available for those who missed the live event[7][8] About Intellicheck Intellicheck is a leading SaaS provider of real-time identity verification solutions, utilizing DMV-issued IDs to combat identity-based fraud across North America - Intellicheck is a SaaS company specializing in real-time identity verification by analyzing government-issued IDs to combat identity-based fraud[20] Safe Harbor Statement The press release contains forward-looking statements subject to risks and uncertainties, and actual results may differ materially, with no obligation to update - This release includes forward-looking statements concerning future business performance, which are protected under the Private Securities Litigation Reform Act of 1995, involving risks and not guaranteeing future results[21]