Intellicheck(IDN) - 2025 Q2 - Quarterly Results

Financial Highlights & Management Commentary This section presents Intellicheck's record second-quarter 2025 financial performance, management's strategic insights, and a snapshot of the company's financial position Second Quarter 2025 Financial Highlights Intellicheck reported record second-quarter 2025 financial results, with total revenue growing 10% year-over-year and SaaS revenue also increasing by 10%. The company achieved positive Adjusted EBITDA for the quarter, marking a significant improvement from the prior year, despite an increase in operating expenses and a higher net loss Q2 2025 Key Financial Performance (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------------- | :---------- | :---------- | :----------- | | Total Revenue | $5,123,000 | $4,672,000 | +10% | | SaaS Revenue | $5,080,000 | $4,627,000 | +10% | | Gross Profit % | 90% | 91% | -1 ppts | | Operating Expenses | $4,898,000 | $4,443,000 | +10% | | Net Loss | ($251,000) | ($127,000) | -97.6% | | Diluted EPS | ($0.01) | ($0.01) | 0% | | Adjusted EBITDA | $75,000 | ($70,000) | +$145,000 | Management Commentary & Strategic Focus CEO Bryan Lewis highlighted the company's success in expanding its market presence and securing multiple multiyear agreements with prominent financial services clients, underscoring the value of its identity verification technology in fraud prevention and customer onboarding - Achieved another record quarter by successfully expanding presence in new and existing market verticals[3] - Signed multiple multiyear agreements with prominent financial services clients[3] - Identity verification technology boasts a 99.975% decisioning success rate in stopping fraud[3] - Future growth will be driven by a keen focus on sales and marketing efforts[4] Financial Position Snapshot As of June 30, 2025, Intellicheck maintained a healthy cash position and stable stockholders' equity Financial Position as of June 30, 2025 | Metric | Amount | | :------------------- | :----------- | | Cash and Cash Equivalents | $8.6 million | | Stockholders' Equity | $18.0 million | Condensed Financial Statements This section provides detailed condensed balance sheets, statements of operations, stockholders' equity, and cash flows for the reported periods Condensed Balance Sheets The balance sheet shows an increase in total assets primarily driven by a significant rise in cash and cash equivalents, while total liabilities also increased due to higher deferred revenue. Stockholders' equity saw a modest increase Condensed Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change | | :-------------------------- | :-------------- | :---------------- | :----- | | Cash and cash equivalents | $8,573 | $4,666 | +$3,907 | | Accounts receivable, net | $2,676 | $4,675 | -$1,999 | | Total current assets | $12,143 | $9,912 | +$2,231 | | Total assets | $23,066 | $20,933 | +$2,133 | | Deferred revenue | $3,038 | $1,001 | +$2,037 | | Total current liabilities | $5,061 | $3,186 | +$1,875 | | Total liabilities | $5,061 | $3,186 | +$1,875 | | Total stockholders' equity | $18,005 | $17,747 | +$258 | Condensed Statements of Operations For the three and six months ended June 30, 2025, Intellicheck experienced revenue growth but also saw an increase in operating expenses, particularly in research and development, leading to higher operating losses and net losses compared to the prior year periods Condensed Statements of Operations (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues | $5,123 | $4,672 | $10,017 | $9,352 | | Gross profit | $4,600 | $4,228 | $8,992 | $8,473 | | Selling, general and administrative | $3,535 | $3,608 | $6,988 | $7,544 | | Research and development | $1,363 | $835 | $2,650 | $1,653 | | Total operating expenses | $4,898 | $4,443 | $9,638 | $9,197 | | Loss from operations | ($298) | ($215) | ($646) | ($724) | | Net loss | ($251) | ($127) | ($569) | ($569) | | Loss per common share - Basic/Diluted | ($0.01) | ($0.01) | ($0.03) | ($0.03) | Condensed Statements of Stockholders' Equity Stockholders' equity increased slightly for both the three and six months ended June 30, 2025, primarily due to stock-based compensation and stock option exercises, partially offset by the net loss incurred during these periods Condensed Statements of Stockholders' Equity (in thousands) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | March 31, 2024 | | :-------------------------- | :------------ | :------------- | :------------ | :------------- | | Total Stockholders' Equity (Q2) | $18,005 | $17,608 | $17,307 | $17,178 | | Stock-based compensation (Q2) | $202 | - | $256 | - | | Stock option exercises (Q2) | $446 | - | $0 | - | | Net loss (Q2) | ($251) | - | ($127) | - | | Metric | June 30, 2025 | December 31, 2024 | June 30, 2024 | December 31, 2023 | | :-------------------------- | :------------ | :---------------- | :------------ | :---------------- | | Total Stockholders' Equity (YTD) | $18,005 | $17,747 | $17,307 | $17,276 | | Stock-based compensation (YTD) | $381 | - | $600 | - | | Stock option exercises (YTD) | $446 | - | $0 | - | | Net loss (YTD) | ($569) | - | ($569) | - | Condensed Statements of Cash Flows For the six months ended June 30, 2025, the company generated significant net cash from operating activities, primarily due to a decrease in accounts receivable and an increase in deferred revenue, leading to a substantial net increase in cash compared to the prior year Condensed Statements of Cash Flows (in thousands) - Six Months Ended June 30 | Metric | 2025 | 2024 | | :------------------------------------------ | :--- | :--- | | Net cash provided by (used in) operating activities | $3,884 | ($312) | | Net cash (used in) provided by investing activities | ($232) | $3,592 | | Net cash provided by financing activities | $255 | $0 | | Net increase in cash | $3,907 | $3,280 | | CASH, end of period | $8,573 | $7,260 | Non-GAAP Financial Measures Reconciliation This section reconciles non-GAAP financial measures, including Adjusted EBITDA and Adjusted Gross Profit, to their most directly comparable GAAP measures Adjusted EBITDA Adjusted EBITDA, a non-GAAP measure, improved significantly to a positive $75,000 for Q2 2025, compared to a loss of ($70,000) in Q2 2024, reflecting operational strength by excluding non-cash and non-operating charges - Adjusted EBITDA is a non-GAAP measure used to supplement GAAP results, providing an additional tool for investors to compare financial results by excluding non-cash charges (amortization, depreciation, stock-based compensation) and non-operating charges (interest, income taxes)[16][17] Adjusted EBITDA Reconciliation (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss | ($251) | ($127) | ($569) | ($569) | | Provision for income taxes | $0 | $0 | $0 | $2 | | Other income, net | ($47) | ($88) | ($77) | ($157) | | Depreciation and amortization | $171 | $73 | $325 | $145 | | Stock-based compensation | $202 | $72 | $379 | $405 | | Adjusted EBITDA | $75 | ($70) | $58 | ($174) | Adjusted Gross Profit Adjusted Gross Profit, a non-GAAP measure, increased for both the three and six months ended June 30, 2025, reflecting improved current operating performance by excluding amortization expense allocable to cost of revenues - Adjusted Gross Profit is a non-GAAP measure that adjusts gross profit by excluding amortization expense, focusing on current operating performance as amortization reflects historical software development costs[19][20] Adjusted Gross Profit Reconciliation (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $5,123 | $4,672 | $10,017 | $9,352 | | Cost of revenue, exclusive of amortization | $401 | $421 | $800 | $832 | | Amortization allocable to cost of revenues | $122 | $23 | $225 | $47 | | Gross Profit | $4,600 | $4,228 | $8,992 | $8,473 | | Add: Amortization allocable to cost of revenues | $122 | $23 | $225 | $47 | | Adjusted Gross Profit | $4,722 | $4,251 | $9,217 | $8,520 | | Gross profit as a percentage of revenues | 89.8% | 90.5% | 89.8% | 90.6% | | Adjusted Gross Profit as a percentage of revenues | 92.2% | 91.0% | 92.0% | 91.1% | Company Information & Disclosures This section provides an overview of Intellicheck, conference call details, a safe harbor statement, and contact information for stakeholders About Intellicheck Intellicheck is an industry leader in identity verification management, providing SaaS-based solutions that utilize proprietary analysis of DMV-issued IDs to prevent identity-based fraud across various sectors - Intellicheck is an industry-leading identity verification management company[23] - Offers SaaS-based validation and proofing services using proprietary analysis of DMV-issued IDs[23] - Validates approximately 100 million identities annually across North America with 99.75% decisioning accuracy in under a second[23] Conference Call Information Intellicheck hosted an earnings conference call on August 12, 2025, to discuss its operating results, with a replay available for a limited period - Earnings conference call held on August 12, 2025, at 4:30 p.m. ET/1:30 p.m. PT[9] - Dial-in numbers: 877-407-8037 (U.S.) and 201-689-8037 (International)[9] - Replay available until August 19, 2025, using conference ID 13754628[10] Safe Harbor Statement This section provides a standard Safe Harbor Statement, indicating that statements about Intellicheck's future expectations are forward-looking and subject to various risks and uncertainties, and the company does not undertake to update them - Statements regarding future expectations, product advantages, revenue improvement, market acceptance, and strategic execution are forward-looking statements[24] - Actual results may differ materially due to factors such as market acceptance, demand levels, ability to manage expenses, successful expansion, research and development, inflation, intellectual property rights, regulatory changes, and security breaches[24] - The company does not assume any obligation to update forward-looking information[24] Contact Information Contact details for investor relations and media inquiries are provided for interested parties - Investor Relations Contact: Gar Jackson at (949) 873-2789 or gjackson@intellicheck.com[23] - Media and Public Relations Contact: Sharon Schultz at (302) 539-3747 or sschultz@intellicheck.com[23]