Financial Data and Key Metrics Changes - Total revenue for Q4 2025 grew 12% to a record $6.6 million, with full-year revenue increasing 13% to $22.7 million, marking another company record [6][23] - Gross margin for Q4 2025 increased to 91.4% from 91.1% in Q4 2024, reflecting the strength of the software-driven SaaS model [6][25] - The company achieved annual operating profitability for the first time since going public, with net income of $1.3 million and EPS of $0.06 for the year [7][23] - Adjusted EBITDA for Q4 2025 was a record $1.9 million, with full-year adjusted EBITDA reaching $2.6 million, nearly five times the previous year [7][23] Business Line Data and Key Metrics Changes - SaaS revenue for Q4 2025 grew 12% to $6.62 million, representing over 99% of total revenue for the quarter [25] - The average price per transaction increased by 25% in Q4 2025 compared to the previous year, indicating pricing power for the company's unique product [18] Market Data and Key Metrics Changes - The banking and lending sector showed significant growth, with year-over-year revenue growth nearly doubling, while retail was down 1% year-over-year [39] - The automotive sector experienced a 125% year-over-year revenue growth, with significant opportunities for expansion through channel partners [71] Company Strategy and Development Direction - The company aims to build a durable, differentiated, high-margin business by expanding with existing customers and onboarding new ones while maintaining disciplined execution [21] - Continued investment in customer success and deepening presence in key verticals, particularly financial services and banking, is a strategic priority [37] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in various verticals, particularly in banking and automotive, despite current economic challenges [17][18] - The company is well-positioned to benefit from a potential decrease in interest rates, which could act as a tailwind for growth [54] Other Important Information - The company has a strong cash position, ending the year with $9.6 million in cash and cash equivalents, reflecting strong cash generation from operations [35] - The decline in software capitalization from over $2 million in 2024 to just $213,000 in 2025 indicates a cleaner financial profile moving forward [36] Q&A Session Summary Question: What was the revenue breakdown for the banking and retail channels in Q4? - Management noted that banking and lending revenue continues to grow significantly, while retail saw a seasonal increase but was down year-over-year [39][41] Question: How does the pipeline look for new customers in 2026? - The pipeline appears strong, driven by interest in the new desktop solution and partnerships, particularly with Alloy [42][43] Question: What is the status of the relationship with Ping Identity? - Management acknowledged the need for improvement in leveraging the partnership with Ping Identity to facilitate growth [47] Question: Can you provide growth expectations for 2026? - While the company does not provide formal guidance, management expressed confidence in built-in growth from existing clients and new implementations [63] Question: What metrics can be shared regarding the automotive sector? - Automotive revenue grew 125% year-over-year, with significant opportunities for further penetration through channel partners [71]

Financial Data and Key Metrics Changes - Total revenue for Q4 2025 grew 12% to a record $6.6 million, and for the full year, revenue increased 13% to $22.7 million, another company record [6][22] - Gross margin for Q4 2025 increased to 91.4% compared to 91.1% in Q4 2024, reflecting the strength of the software-driven SaaS model [6][24] - The company achieved annual operating profitability for the first time since going public, with net income of $1.3 million and EPS of $0.06 [7][22] - Adjusted EBITDA for Q4 2025 was a record $1.9 million, and for the full year, it reached $2.6 million, nearly five times the previous year [8][22] Business Line Data and Key Metrics Changes - SaaS revenue for Q4 2025 grew 12% to $6.62 million, representing over 99% of total revenue [24] - The average price per transaction increased by 25% in Q4 2025 compared to the previous year, indicating pricing power for the company's unique product [18] Market Data and Key Metrics Changes - The banking and lending sector continues to grow, with year-over-year growth nearly doubling, while retail saw a decline of 1% [37] - The automotive sector experienced a significant growth of 125% year-over-year, driven by channel partners [68] Company Strategy and Development Direction - The company aims to build a durable, differentiated, high-margin business by expanding with existing customers and onboarding new ones while maintaining disciplined execution [20] - There is a focus on diversifying into new verticals such as title insurance, automotive, specialty finance, background screening, logistics, and digital account security [18][17] - The company is refining its sales team and channel partner program to drive significant growth across various verticals [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, particularly in banking, which is less dependent on interest rates or consumer confidence [18] - The company is well-positioned to capitalize on new opportunities as interest rates change, with expectations of continued revenue growth and improved profitability [35] Other Important Information - The company ended the year with $9.6 million in cash and a strong debt-free balance sheet, reflecting strong cash generation from operations [7][33] - The company has been recognized as a leader in identity verification in financial services by the IDC MarketScape report [17] Q&A Session Summary Question: What was the performance of the bank lending channel in Q4? - The banking and lending sector continues to grow, with nearly double year-over-year growth, while retail was down 13% compared to Q4 2024 [37][39] Question: How does the pipeline look for new customers in 2026? - The pipeline looks strong, driven by the new desktop solution and partnerships, particularly with mid-sized credit unions and banking institutions [40] Question: What is the status of the relationship with Ping Identity? - The company needs to improve its channel partnership with Ping Identity to facilitate better integration and sales [45] Question: What are the growth expectations for 2026? - While the company does not provide formal guidance, there is built-in growth from existing clients, and the focus is on how quickly implementations can occur [60] Question: What metrics can be shared regarding the automotive sector? - Automotive revenue grew 125% year-over-year, with significant potential for further growth through channel partners [68]