Financial Data and Key Metrics Changes - For Q4 2025, total revenue grew 12% to a record $6.6 million, and for the full year, revenue increased 13% to $22.7 million, marking another company record [6][23] - 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][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 [7][33] - 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 $520,000 reported in 2024 [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 continues to grow, with year-over-year growth nearly doubling, while retail saw a decline of 1% [40] - The automotive revenue grew 125% year-over-year, with significant potential for further growth 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] - 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 committed to creating new opportunities for growth and profitability while refining its sales team and channel partner program [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in banking, which is less dependent on interest rates or consumer confidence [18] - The company is well-positioned to capitalize on future opportunities as interest rates decline, which could turn current headwinds into tailwinds [55] - Management highlighted the importance of maintaining expense discipline and expects operating expenses to grow at a slower rate than revenue [38][66] 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][35] - The significant 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 performance of the bank lending channel and retail channel in Q4? - The banking and lending channel continues to grow, with retail experiencing a seasonal bump but ultimately down 13% year-over-year [40][42] 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 [43][44] 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 collaboration [48] Question: Can you provide 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 [63] 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 [71]

Financial Data and Key Metrics Changes - The company's first quarter revenues increased by 5% year-over-year, reaching a record of $4,894,000 compared to $4,680,000 in the same period of 2024 [22] - SaaS revenue grew by 6% to $4,868,000, representing over 99% of total revenue for the quarter [22] - Adjusted EBITDA improved by $100,000, resulting in a small loss of $17,000 for the quarter, indicating a near breakeven performance [22] - Gross profit margin was 89.7%, slightly down from 90.7% in the previous year, while adjusted gross margin improved to 91.8% from 91.2% [23][24] - Operating expenses decreased by 1% to $4,740,000, with a notable reduction in selling, general, and administrative expenses [25] Business Line Data and Key Metrics Changes - The company has diversified its client base beyond retail credit cards, now seeing significant growth in retail banking, title insurance, auto, email account security, and background checks [6][7] - Revenue from title insurance increased by approximately 350% in Q1, indicating strong market penetration [32] - Retail banking revenue grew by 50% year-over-year, showcasing the effectiveness of the company's diversification strategy [33] Market Data and Key Metrics Changes - The company reported a 26% decline in revenue from retail, reflecting challenges in the retail sector [36] - Despite the retail decline, the overall revenue growth was driven by gains in other sectors, demonstrating the success of the diversification strategy [39] Company Strategy and Development Direction - The company is focused on a diversification strategy, moving away from a retail-first emphasis to capture opportunities in various sectors [20] - The migration from Azure to AWS is expected to yield cloud savings and improve client onboarding processes [6][15] - The appointment of a new senior vice president of sales is anticipated to drive revenue growth and enhance client relationships [10][90] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer confidence is down nearly 8% from the previous year, impacting retail purchases [20] - The company remains optimistic about future growth, driven by strategic initiatives and a revitalized sales team [90] - Management emphasized the importance of adapting to market changes and economic conditions as they evolve [21] Other Important Information - The company had cash and cash equivalents of $5,100,000 at the end of Q1, exceeding consensus estimates [26] - The company has a $2,000,000 revolving credit line with Citibank, which was not utilized during 2025 [28] Q&A Session Summary Question: What is the company's penetration in the title insurance market? - The company estimates it has exposure to about 40% of the title insurance market, with revenue from title insurance up 350% in Q1 [31][32] Question: What are the next largest verticals after credit cards? - The next largest verticals are banking and auto, with retail banking revenue up 50% year-over-year [33] Question: What percentage of revenue does retail represent now? - Retail revenue was down 26% year-over-year, indicating a declining percentage of total revenue [36] Question: What drove the increase in deferred revenue and SaaS RPOs? - The increase was largely due to moving customers to a pricing model that encourages upfront payments [45] Question: Any updates on the large social media customer and regional bank? - The social media customer is progressing well, while the regional bank is in procurement discussions [48][49] Question: How is the company addressing the shipping and logistics market? - The company is addressing fraud in shipping and logistics, with significant losses reported per truck due to organized crime [52][53] Question: What is the status of the reseller strategy? - The company sees plenty of room for improvement in its reseller strategy and is actively engaging with potential partners [55] Question: What is the current state of accounts receivable? - The increase in accounts receivable is primarily due to changes in the pricing model, moving towards prepayment [58]