Q3 2025 Intellicheck Inc Earnings Call

November 12, 2025

And we will follow the formal presentation, if anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.

Operator: A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Gar Jackson, Investor Relations. Thank you, sir. You may begin.

As a reminder, this conference is being recorded it is now my pleasure to introduce your host Gar Jackson Investor Relations. Thank you Sir you may begin.

Bryan Lewis: We held to our estimates made earlier in the year and had no capitalization of software development expenses this quarter and don't expect to see any additional capitalization this year. Q3 of 2024 saw $443,000 of capitalization expenses. That was driven by the software that we developed for deployment onto AWS that is now fully in production. Operating expenses, which consist of selling, general, and administrative, marketing, and research and development expenses, were essentially flat year over year and increased only $10,000 to $5.21 million for the third quarter of 2025 compared to $5.2 million for the same period of 2024. On an accounting basis, R&D expenses were $214,000 higher in Q3 of 2025. As I mentioned, we capitalized $443,000 of R&D expenses in Q3 of 2024. Since we had no capitalization of software development this quarter, we saw R&D costs hit the P&L in their entirety.

Thank you operator, good afternoon, and thank you for joining us today for the <unk> third quarter 2025 earnings call before we get started I will take a few minutes to read the forward looking statement certain statements. In this conference call constitute forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995 as amended when used in this conference call words such as.

Gar Jackson: Thank you, operator. Good afternoon, and thank you for joining us today for the Intellicheck Q3 2025 earnings call. Before we get started, I will take a few minutes to read the forward-looking statement. Certain statements in this conference call constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as amended. When used in this conference call, words such as will, believe, expect, anticipate, encourage, and similar expressions as they relate to the company or its management, as well as assumptions made by and information currently available to the company's management, identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Throughout this call, we may reference certain financial metrics that have been rounded for ease of discussion. These forward-looking statements are based on management's current expectations and beliefs about future events.

Will believe expect anticipate encourage and similar expressions as they relate to the company or its management as well as assumptions made by and information currently available to the company's management identify forward looking statements within the meaning of the private Securities Litigation Reform Act of $19 95.

Throughout this call we may reference certain financial metrics that have been rounded for ease of discussion. These forward looking statements are based on management's current expectations and beliefs about future events as if any projection or forecast they are inherently susceptible to uncertainty and changes in circumstances and the company undertakes no obligation to and expressly disclaims any.

Gar Jackson: As with any projection or forecast, they are inherently susceptible to uncertainty and changes in circumstances, and the company undertakes no obligation to, and expressly disclaims any obligation to update or alter its forward-looking statements, whether resulting from such changes, new information, subsequent events, or otherwise. Additional information concerning forward-looking statements is contained under the headings of Safe Harbor and Risk Factors listed from time to time in the company's filings with the Securities and Exchange Commission. Statements made on today's call are as of today, 12 November 2025. Management will use the financial terms adjusted EBITDA and adjusted gross margin on today's call. Please refer to the company's press release issued this afternoon for further definition, reconciliation, and context for the use of these terms.

The obligation to update or alter its forward looking statements, whether resulting from such changes new information subsequent events or otherwise additional information concerning forward looking statements is contained under the headings of safe Harbor and risk factors listed from time to time in the company's filings with the Securities and Exchange Commission statements made.

Bryan Lewis: Driven by our 28% revenue growth, and operating expenses that remained relatively flat, our net income improved by $1.1 million to gain $290,000 for the quarter on a GAAP basis. We currently expect net income to be slightly positive for the year. Our earnings improved from a loss of $0.04 per share last year to a gain of $0.01 this year. Adjusted EBITDA also improved nicely by $798,000 to a positive $631,000 for the third quarter versus negative $160,000 in the third quarter of 2024. We currently expect adjusted EBITDA to be positive for the year as well. The weighted average diluted common shares were 20.8 million for the third quarter of 2025 compared to 19.5 million for the same period of 2024. As to the company's liquidity and capital resources, at 30 September 2025, the company had cash and cash equivalents of $7.2 million.

On today's call are as of today November 12 2025.

Manage will use the financial terms adjusted EBITDA and adjusted gross margin on today's call. Please refer to the company's press release issued this afternoon for further definition reconciliation and context for the use of these terms. We will begin today's call with Brian Lewis <unk>, Chief Executive Officer that Adam Shrug of its intelligence Chief Financial Officer.

Gar Jackson: We will begin today's call with Bryan Lewis, Intellicheck's Chief Executive Officer, then Adam Sragovicz, Intellicheck's Chief Financial Officer, who will discuss the Q3 2025 financial results. Following their prepared remarks, we will take questions from our analysts and institutional investors. Today's call will be limited to one hour, and I will now turn the call over to Bryan.

Who will discuss the Q3 2025 financial results following their prepared remarks, we will take questions from our analysts and institutional investors today's call will be limited to one hour and I will now turn the call over to Brian.

Thanks, Karl and good afternoon to all and we appreciate you joining us today.

Bryan Lewis: Thanks, Gar, good afternoon to all. We appreciate you joining us today. I'm extremely excited by our performance in Q3, with revenues that grew 28% or $1.3 million, or to $6 million with a gross margin that was 91%. Driven by leveraging operating expenses that were relatively flat year-over-year, we had a positive net income of $290,000, earnings per share of $0.01, and adjusted EBITDA that was a Q3 record of $631,000. A significant driver of the revenue growth was the regional bank that began using Intellicheck in its bank branches. As we have previously stated, this client has a 3-year total contract value in the very high 7 digits, with the first 12 months being low 7 digits and accelerating in years 2 and 3.

Extremely excited by our performance in Q3 with revenues that grew 28% or $1 3 million were two 6 million with a gross margin that was 91% driven.

Driven by leveraging operating expenses that were relatively flat year over year. We had a positive net income of 290000 earnings per share of <unk> and adjusted EBITDA. There was a third quarter record of $631000.

Bryan Lewis: We had expected the peak in 2025 cash to be in Q3 2025, but we may see the same or even slightly higher cash balances at the end of 2025. We see this dynamic due to those customers paying us upfront in bucket-type arrangements, where the cash effect is immediate, but the revenue effect will be spread out over time. At quarter end, there was working capital, which is defined as current assets minus current liabilities, of $8.2 million, total assets of $25.3 million, and stockholders' equity of $18.9 million. We have mentioned a $2 million credit facility with Citibank in the past, which had no activity or balances during the quarter. We are gradually winding that commercial banking relationship, most likely exiting it entirely by the end of 2025.

A significant driver of the revenue growth was the regional bank that began using Intel a check and its bank branches. As we have previously stated this client has a three year total contract value and the very high seven digits with the first 12 months being low seven digits and accelerating in years, two and three.

It is going very well and they are already speaking with us about additional use cases.

Bryan Lewis: Their rollout is going very well, and they are already speaking with us about additional use cases. We also showed significant growth with a leading lease-to-own company that grew over 700% and has produced a low six-figure revenue number in Q3. Of note is our largest bank and credit card issuer that grew over 60% in Q3 versus the prior year and bought an additional bucket of transactions for a low mid seven-figure amount that we anticipate will get them through spring of 2026. This is further testament that our product is stopping fraud, both with new account applications, account lookup, and in-branch and online customer validations. On top of that, another one of our top three banks signed a three-year renewal with an annual contract value also in the low mid seven-figure amount.

We also showed significant growth with a leading lease to own company that grew over 700% and has it produced a low six figure revenue number in Q3.

Of note is our largest bank and credit card issuer that grew over 60% in Q3 versus the prior year and bought an additional bucket of transactions for a low mid seven figure amount that we anticipate we will get them through spring of 2026. This is further testament that our product is stopping fraud, both with new <unk>.

Bryan Lewis: When we reflect on 2025 so far from the financial point of view, we see the strategies of upselling to current clients and diversification into new industries bearing fruit. As CSM and sales efforts encourage clients and prospective new clients to subscribe to our offerings and annual buckets, we are especially pleased with our strong cash position in the current environment. We look forward to sharing our 2025 full-year results with you on our call in March of 2026. I'll now turn the call over to the operator who will take your questions. Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press Star 1 on your telephone keypad. A confirmation tone will indicate that your line is in the question queue. You may press Star 2 if you would like to remove your question from the queue.

Count applications account look up and in branch and online customer validation.

On top of that another one of our top three bank signed a three year renewal with an annual contract value also in the low mid seven figure amount.

We also entered into two year agreements with our top title insurance company and expanded our relationship with a top 20 bank with a two year agreement that when combined are now anticipate to generate six digit annual recurring revenue streams.

Bryan Lewis: We also had entered into 2-year agreements with our top title insurance company and expanded our relationship with a top 20 bank with a 2-year agreement that when combined are now anticipate to generate 6-digit annual recurring revenue streams. An important event in Q3 came when Intellicheck was named a leader in the IDC MarketScape Worldwide Identity Verification in Financial Services 2025 Vendor Assessment. As I said in our press release, bad actors continually change and sophisticate their tactics, which is why organizations need a partner that is proactive with state-of-the-art technology and expertise to arm them with proven solutions. We believe that our recognition underscores our role as a leader with the technology solutions that secure trust while preserving a seamless customer experience.

An important event in the third quarter came when Intel a check was named a leader in the IDC market scape worldwide identity verification in financial services 2025 vendor assessment.

Bryan Lewis: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the Star keys. One moment, please, while we pull for questions. Our first question comes from Mike Grundahl with Northland Securities. Please proceed with your question. Hey, thanks, guys, and congrats on 28% year-over-year growth. Bryan, are the retail headwinds pretty much gone? I mean, retail shrank or declined 5% year-over-year for revenues. Can you give us an update on kind of what you're seeing there, what you expect going forward? Yeah, I mean, I'm going to say two things. One, I'm glad that we keep diversifying from retail because I think that's where a lot of our growth is coming from. What I'd say, certainly throughout the year, we've seen softening in retail.

As I said in our press release bad actors continually change and sophisticate their tactics, which is why organizations need a partner that is proactive with state of the art technology and expertise to arm them with proven solutions.

We believe that our recognition underscores our role as a leader with the technology solutions that secure trust, while preserving a seamless customer experience.

We believe that this will significantly raise the visibility of Intel a chat and these third party endorsements have become a very important aspect of our visibility and associated marketing efforts in today's tech environment.

Bryan Lewis: We believe that this will significantly raise the visibility of Intellicheck, and these third-party endorsements have become a very important aspect of our visibility and associated marketing efforts in today's tech environment. We continue to make progress with the global social media company that continues to be in the build-out phase. Our team is working with their team on the image capture front. Although this has taken longer than anticipated, they are paying us for the scanning volume. During Q3, that revenue generated from this client was a mid five-figure number, and for Q4, we anticipate a low six-figure number based on the volumes we've already seen as their build-out continues. We continue to believe that there is significant potential for this client to drive more volume and revenue in the future. We just don't have any definitive answers on the timing.

We continue to make progress with the global Social media company that continues to be in the build out phase our team is working with their team on the image capture front.

Bryan Lewis: I'm looking at numbers sort of every day, and I don't know whether it's people not spending money because they were the shutdown or other things like that. Christmas hasn't come yet, is the way I'll see it, but sometimes it doesn't come this early in the quarter. Who knows, right? It's still early in the quarter. I will say that the overall slowness in retail throughout the year might mean that some of our customers who would normally were on these bucket things might have to pay us some breakage, some overage at the end of the quarter. We're watching that carefully. If you look at a lot of retail, I think even I was watching the news the other day, I think VOA said they expect retail to be down 5%.

Though this has taken longer than anticipated they are paying us for this scanning volume.

During Q3 that revenue generated from this client was a mid five figure number in for Q4, we anticipate a low six figure number based on the volumes we have already seen as their build out continues we continue to believe that there is significant potential for this client to drive more volume and revenue in the future we.

Just don't have any definitive answers on the timing.

And as a reminder, this isn't the only social media company that we work with the other social media company, we work with for email password resets grew over 60% versus last year and produced a low six figure revenue amount in the third quarter.

Bryan Lewis: As a reminder, this isn't the only social media company that we work with. The other social media company we work with for email password resets grew over 60% versus last year and produced a low six-figure revenue amount in Q3. During Q3, First American Title, a leading provider of title insurance and settlement services, and the largest subsidiary of First American Financial Corporation, announced an expansion of its fraud prevention services included with every First American transaction. Their AgentNet platform now features advanced identity verification technology powered by Intellicheck. By confirming the identities of real estate transaction participants early in the process, the new service delivers greater protection and adheres to the latest industry best practices, reducing fraud risk for First American Title agents and their customers.

During the third quarter first American title, a leading provider of title insurance and settlement surges services and the largest subsidiary of first American Financial Corporation announced an expansion of its fraud prevention services included with every first American transaction.

Bryan Lewis: I think it varies from still, it's always like industry to industry, but it's not 100%. That's what I'd say. That's why we've made sure that we're getting out of retail being our main revenue generator. You know, the last three to four years, it's been a real headwind, and now it's only down to a 30% mix, and it's only a 5% headwind. You've kind of gotten around it. That's great. Yeah. You said that pricing on new business was up 14%. How much of your $6 million in revenue qualifies as new business? A follow-up to that, just any guess at what overall pricing is doing directionally? Honestly, I would be making a wild guess to say what percentage of it.

Their agent net platform now features advanced identity verification technology powered by Intel a check.

During the third quarter first American title, a leading provider of title insurance and settlement surges services and our largest subsidiary of first American Financial Corporation announced an expansion of its fraud prevention services included with every first American transaction.

Confirming the identities of real estate transaction participants early in the process, the new service delivers greater protection and adheres to the latest industry best practices, reducing fraud risk or first American title agents and their customers.

This quarter also saw an expansion of use cases for our technology with this client as they added passport verification and also document like Natus and selfie capture they.

Their agent net platform now features advanced identity verification technology powered by Intel of checks by confirming the identities of real estate transaction participants early in the process. The new service delivers greater protection and adheres to the latest industry best practices, reducing fraud risk.

Bryan Lewis: This quarter also saw an expansion of use cases for our technology with this client as they added passport verification and also document liveness and selfie capture. They plan to launch digital e-commerce identity verification in Q1 of 2026. I'm also pleased to update you on the progress we've made in the background check market. As I've been saying, we believe that there is significant opportunity in this area. When people typically think about background checks, employment screening, apartments, auto rentals, et cetera, come to mind. We are approaching this vertical from an additional angle: supplier and vendor screening. During the quarter, we saw additional tractions from a foreign auto manufacturer building cars in the South.

Planned to launch digital e-commerce identity verification in Q1 of 2026.

I'm also pleased to update you on the progress we've made in the background check market.

For first American title agents and their customers. This.

I have been saying, we believe that there is significant opportunity in this area.

This quarter also saw an expansion of use cases for our technology with this client as they added passport verification and also document like Natus and selfie capture they plan to launch digital E Commerce identity verification in Q1 of 2026.

Bryan Lewis: If I think about some of the drivers of it, I don't know, Adam, if you've got a guess on it, it's not more than 10%, probably, would be my guess. Because it's in title, it's in auto, we could probably back into it, right? Title being about 2%, automotive, I think, was like 5%. Then some of our new banking customers coming in there. Probably make that 7 to, because most of that's new business, make that 7 to 10% might be part of that new business. The second question was, I'm sorry, I forgot it. If you had to look at overall pricing, total pricing year-over-year, what kind of tailwind is that? I'd say overall pricing, when we go into renewals, we're raising prices still. That really hasn't been an issue.

When people typically think about background checks employment screening apartments auto rentals et cetera come to mind, we are approaching this vertical from an additional angle supplier and vendor screening during the quarter. We saw additional traction from a foreign auto manufacturer of building cars in the south.

I'm also pleased to update you on the progress we've made in the background check market as I've been saying, we believe that there is significant opportunity in this area.

Not only are they using us on site to make sure that people are who they say they are they are so happy with our experience with our technology that they are encouraging their suppliers to adopt our technology.

Bryan Lewis: Not only are they using us on site to make sure that people are who they say they are, they're so happy with our experience with our technology that they are encouraging their suppliers to adopt our technology. We've had one of their suppliers sign up this quarter. This remains a market of interest, and we will continue to look at future opportunities to expand our market penetration. Automotive retail was another growth driver during the quarter as auto retailers, particularly with high-end cars, continue to see the value of our product offering to stop fraud. Although not material to volumes during the quarter, these two categories drove an increase in our year-over-year new business average price per scan by approximately 14%. Additionally, we are getting some traction on the stadium concessions front.

We've had one of their suppliers sign up this quarter.

This remains a market of interest and we will continue to look at future opportunities to expand our market penetration.

Automotive retail was another growth driver during the quarter as auto retailers, particularly with high end cars continue to see the value of our product offering to stop fraud.

Only or they're using us on site to make sure that people are who they say they are they are so happy with our experience with our technology that they are encouraging their suppliers to adopt our technology.

Although not material to volumes during the quarter. These two categories drove an increase in our year over year, new business average price per scan by approximately 14%.

We've had one of their suppliers sign up this quarter.

This remains a market of interest and we will continue to look at future opportunities to expand our market penetration.

Bryan Lewis: The more significant increases, obviously, are with new clients because it's sort of like we know what we're worth now. When I first started, we were like, we needed the business, so we were going to make deals. Now we know that we don't have to do that anymore. Got it. Great. Hey, thanks, guys. All right. Talk to you later. Thank you. Our next question comes from Jeff Van Ree with Craig-Hallum Capital Group. Please proceed with your question. Hey, this is Daniel Hibschman on for Jeff Van Ree. Thanks for taking my questions, Bryan and Adam. Just on the SaaS revenue sequential pickup this quarter, real strong, like you said, the regional bank being a significant driver there. Is there anything one-time or seasonal as well to call out about the number for this quarter on SaaS, or is that a pretty good baseline to think about?

Additionally, we are getting some traction on the stadium concessions front.

Automotive retail was another growth driver during the quarter as auto retailers, particularly with high end cars continue to see the value of our product offering to stop fraud.

Well this is slow process and lower average cost per scan due to the anticipated high volumes. We believe this remains an opportunity for growth, particularly if we can integrate with significant Pos system providers, which is a long process during.

Bryan Lewis: While this is slow process and lower average cost per scan due to the anticipated high volumes, we believe this remains an opportunity for growth, particularly if we can integrate with significant POS system providers, which is a long process. During the quarter, we added 1 stadium and 1 concessions provider. We are also exploring additional opportunities in the area of cargo freight fraud. We are continuing to move forward with a food manufacturer that was dealing with fraud from drivers. They are continuing their nationwide rollout of our technology, and this account is now running in the low 6-figure ACV. As far as our vertical breakdown by business segment goes, keeping in mind that there is a fair amount of volatility in the mix, as I spoke of last quarter, this is how we stand.

Although not material to volumes during the quarter. These two categories drove an increase in our year over year, new business average price per scan by approximately 14%.

During the quarter, we added one stadium and one concessions provider.

Additionally, we are getting some traction on the stadium concessions frac.

We are also exploring additional opportunities in the area of cargo freight fraud, we are continuing to move forward with the food manufacturer that was dealing with fraud from drivers. They are continuing their nationwide rollout of our technology and this account is now running in the low six figure a C V.

Well this is slow process and lower average cost per scan due to the anticipated high volumes. We believe this remains an opportunity for growth, particularly if we can integrate with significant P. O S system providers, which is a long process during.

Yeah.

During the quarter, we added one stadium and one concessions provider.

As far as our vertical breakdown by business segment goes keeping in mind that there is a fair amount of volatility in the mixed as I spoke of last quarter. This is how we stand.

Bryan Lewis: It was there's nothing one-time. I think we had in, yeah, overall revenues, I think we had about $140,000, $150,000 worth of professional services fees, which we're going to start doing going forward because otherwise implementations can drag on. Nothing that I would say is sort of out of the ordinary other than just some sequential smaller new customers, this bank really starting to come on. Adam, anything else you might add? No, I think it's a great point that the, I suppose that's non-SaaS revenue, right, of the implementation from professional services, that that kind of serves two purposes, like Bryan said, to accelerate the implementation, but also it's really a selling point, sort of a competitive differentiator for Intellicheck, and we expect to see more and more of that non-SaaS revenue with sort of larger financial institution implementations. Okay.

Banking and lending grew approximately 80% and represented approximately 50% of our quarterly revenue.

Bryan Lewis: Banking and lending grew approximately 80% and represented approximately 50% of our quarterly revenue. Retail declined approximately 5% and represented approximately 30% of our quarterly revenue. Age-related grew approximately 15% and represented approximately 8% of our quarterly revenue. Title grew approximately 120% and represented just over 2% of our quarterly revenue. As I've spoken of in the past, we continue to focus on signing multiyear commitments with straight line revenue recognition that reduces the seasonality of the business. As we look at fiscal year 2025, we anticipate approximately 24% of our total revenue will be accounted for that way.

Retail declined approximately 5% and represented approximately 30% of our quarterly revenue age.

Yeah.

As far as our vertical breakdown by business segment goes keeping in mind that there is a fair amount of volatility in the mixed as I spoke of last quarter. This is how we stand.

Age related grew approximately 15% and represented approximately 8% of our quarterly revenue.

Title grew approximately 120% and represented just over 2% of our quarterly revenue.

Banking and lending grew approximately 80% and represented approximately 50% of our quarterly revenue.

As I've spoken of in the past, we continue to focus on signing multiyear commitments with straight line revenue recognition that reduces the seasonality of the business.

Retail declined approximately 5% and represented approximately 30% of our quarterly revenue age.

Age related grew approximately 15% and represented approximately 8% of our quarterly revenue.

As we look at fiscal year 2025, we anticipate approximately 24% of our total revenue will be accounted for that way.

Title grew approximately 120% and represented just over 2% of our quarterly revenue.

Now on the it front the development efforts our I T team has been focused on for quite some time has resulted in a number of important advancements and we are very excited about the product innovations and milestones that we have achieved this quarter.

As I've spoken of in the past, we continue to focus on signing multiyear commitments with straight line revenue recognition that reduces the seasonality of the business.

Bryan Lewis: Now on the IT front, the development efforts our IT team has been focused on for quite some time has resulted in a number of important advancements. We are very excited about the product innovations and milestones that we have achieved this quarter. We have introduced a new and enhanced optical character recognition or OCR product. This is a machine learning model used to read the printed text on the front of IDs to match the data in the barcode. We made the strategic decision to move this development in-house instead of continuing through a third-party provider to eventually reduce costs. We believe that OCR is a beneficial additional signal to the ID verification process for those clients who want to add it to their workflow to stop fraud.

Bryan Lewis: On the uplift side from the regional bank, is that a full quarter of impact we're getting here, or how should we think about that? Yeah, that was a full quarter of impact. Okay. Just last for me is on the social media customer, just a little bit of clarification on sort of where they stand with ramping into volumes, five-figure this quarter, expecting maybe you get to six-figure dollar value in terms of the volume. My understanding from last quarter was there was that coding change that needed to be made on their side to make the data processable. Just clarify sort of where that's at. If they're ramping volumes, is that them paying for developmental work, or you're saying they're actually running operational volume through that's ramping and it's going to be ramping into Q4?

As we look at fiscal year 2025, we anticipate approximately 24% of our total revenue will be accounted for that way.

We have introduced a new and enhanced optical character recognition or OCR product. This is a machine learning model used to read the printed text on the front of Ids to match the data in the barcode.

Now on the I T front the development efforts, our I T team has been focused on for quite some time as resulted in a number of important advancements and we are very excited about the product innovations and milestones that we have achieved this quarter.

We made this strategic decision to move this development in house instead of continuing through a third party provider to eventually reduce cost. We believe that OCR is a beneficial additional signal to the I D verification process for those clients, who want to add it to their workflow to stop fraud.

Bryan Lewis: They are not running full operational volume, but what they do is they've been, it's almost like they tweak it, it works, they put more in, right? Because the main thing was so much of what they were sending us was just, you could not process it. I mean, the images were that bad. We have met with them in person. They know that it is something, it's still a major priority to get identity right. They know that there are three areas on the platform where fraud is taking place, and they need and want to attack that. It's just, dealing with massive organizations is very fulfilling once you're done, but it takes a lot to get fulfilled. Priorities move, priorities change, and they have said that they're doing their dev priorities for Q1, and they've told us that this is a very, very high priority.

Our new hub customer console is an advanced streamlined web application that now provides a simple interface for our customers to view their transactions that they have submitted for processing from all of our access methods, whether it be portal direct capture mobile or desktop.

Bryan Lewis: Our new Hub customer console is an advanced, streamlined web application that now provides a simple interface for our customers to view their transactions that they have submitted for processing from all of our access methods, whether it be portal, direct capture, mobile, or desktop. This unified approach gives our customers a sleek, efficient method to review their transactions, view stats, and download reports on their transaction data. We updated our portal product, which is our web application used by any client to validate people remotely without integration, such as auto dealers and call centers.

This unified approach gives our customers asleep efficient method to review their transactions you stats and download reports on their transaction data.

We updated our portal product, which is our web application used by any client then to validate people remotely without integration such as auto dealers and call centers.

It always used to perform IV verification with a link to a web app sent via text message for the user to use their mobile device to take pictures of their I D and a selfie.

This unified approach gives our customers a sleek efficient method to review their transactions you stats and download reports on their transaction data.

Bryan Lewis: Portal is used to perform ID verification with a link to a web app sent via text message for the user to use their mobile device to take pictures of their ID and a selfie. The new portal further enhances the application and now also supports sending the link to run the ID verification process via WhatsApp, which is used extensively internationally. We also now have an all-new desktop application. It features a new user interface and leverages our improved ID verification signals that ties to our hub reporting tool. This desktop application is installed on Windows computers with a locally connected ID scanner, the same ones the banks generally have already installed. We believe the significance of this product is twofold. First is that it requires no integration, but still provides centralized reporting and a simpler customer experience.

The new portal further enhances the application and now also supports sending linked to run the I'd verification process via Whatsapp, which is used extensively internationally.

We updated our portal products, which is our web application used by any client to validate people remotely without integration such as auto dealers and call centers.

Bryan Lewis: Fingers crossed they actually get to it. We're working with them, and we're also, in a way, on our side, it's one of the things that our AI teams are doing is how do we augment their images so that we can do it better? That's part of even sort of what we just did with the OCR. How can we take a blurry, poor-quality image and make it look better, which might also help, right? We're sort of working hand in hand with them to figure out how do we solve this problem the best way. All right. Great. Thanks, Bryan. Thanks, Adam. Congrats on the growth this quarter. Great. Thank you. Bye. Our next question comes from Rudy Kirsner with D.A. Davidson. Please proceed with your question. Hi, this is Andres Miranda for Rudy.

We also now have an all new desktop application. It features a new user interface and Leverages, our improved I'd verification signals that ties to our hub reporting tool.

It always used to perform I D bear vacation with a link to a web apps sent via text message for the user to use their mobile device to take pictures of their I D in itself.

This desktop application is installed on windows computers, with a locally connected <unk> scanner the same ones the banks generally have already installed.

The new portal further enhances the application and now also supports sending linked to run the IV verification process via Whatsapp, which is used extensively internationally.

We believe the significance of this product is two fold.

We also now have an all new desktop application. It features a new user interface and Leverages, our improved I D verification signals that ties to our hub reporting tool.

First is that it requires no integration, but still provide centralized reporting and a simpler customer experience.

Second is the smaller banks and credit unions are often tied to and at the whim of the banking technology providers and their schedules to install our services.

This desktop application isn't solid on windows computers, with a locally connected <unk> scanner the same ones the banks generally have already installed.

Bryan Lewis: The second is that smaller banks and credit unions are often tied to, and at the whim of, the banking technology providers and their schedules to install our services. As we have discussed on calls in the past, even though we are signing these service providers as resellers, their development queues can be quite long. This product allows us to immediately enter the market. Our new mobile SDK provides mobile application developers with the screens and logic necessary to integrate the ID verification process into an existing native mobile application running on iOS or Android with minimal code. The mobile SDK provides image capture and barcode re-reading required to perform ID verification, eliminating the need for developers to perform complex image processing. Like the new desktop, the transaction information is centrally stored in the cloud via hub for searching and reporting.

We believe the significance of this product is twofold first is that it requires no integration, but still provide centralized reporting and a simpler customer experience.

And as we have discussed on calls in the past, even though we are assigning these service providers as resellers. They are development queues can be quite long.

Bryan Lewis: I just have a couple of questions, and congrats on a great quarter. If our math is right, incremental EBITDA margins were 62% on a year-over-year basis. That's a huge and fantastic number. Could you maybe just talk about the dynamics driving it, and how should we think about margins moving forward? Is it a new baseline, a new normal, having 10% EBITDA margins, or how should we think about it? Thank you. I'm going to throw that over to Adam. Thanks. I think there's a few moving parts to that question, right? The first part of that question is the sort of what we call adjusted gross profit or gross margin. I think that number is we're comfortable with that number being sort of in the very low 90%.

This product allows us to immediately enter the market.

Second is the smaller banks and credit unions are often tied to and at the whim of the banking technology providers and their schedules to install our services.

Our new mobile SDK provides mobile application developers with the screens and logic necessary to integrate the idea verification process into an existing native mobile application running on iOS or Android with minimal code.

And we have as we have discussed on calls in the past, even though we are assigning these service providers as resellers. They are development queues can be quite long. This product allows us to immediately enter the market.

Mobile SDK provides image capture and barcode reading required to perform I'd verification, eliminating the need for developers to perform complex image processing.

The new desktop the transaction information is essentially stored in the cloud via hub for searching and reporting.

We will be launching new marketing initiatives around these updated features shortly.

Bryan Lewis: We will be launching new marketing initiatives around these updated features shortly. Another significant development came when we achieved an important milestone with the migration of our last large bank onto the AWS platform. This project is now basically complete, and I'm giving big credit to our team for getting us over the finish line. Our marketing team is continuing to make great progress. We believe that a key component of our recent growth has been driven by our marketing efforts, and these efforts continue to gain momentum. The podcast the marketing team introduced are generating interest with their informative look at key issues from call center fraud and hiring and employment fraud to first-person stories on identity theft. The same is true of our blogs.

Another significant development came when we achieved an important milestone with the migration of our last large bank onto the AWS platform. This project is now basically complete I'm, giving big credit to our team for getting us over the finish line.

Required to perform I D verification, eliminating the need for developers to perform complex image processing like the new desktop the transaction information is essentially stored in the cloud via hub for searching and reporting.

Bryan Lewis: As revenue grows, we think that we'll be able to maintain that even at a higher level of revenue. I mean, as far as adjusted EBITDA is concerned, I think our operating costs have been remarkably stable as we've been able to grow. I mean, to be honest, I think in 2024, you saw this quarter still had negative EBITDA, and now we've delivered EBITDA positive this quarter as well as a previous quarter. I do think that you have certain fixed costs in the business that as the revenue grows, you're just going to see more and more contribution. I think the question becomes, which is a big strategic question that I couldn't answer. That's more for Bryan, but how does the company grow forward in terms of investments in marketing, and how does it reinvest in its own growth?

Our marketing team is continuing to make great progress, we believe that a key component of our recent growth has been driven by our marketing efforts and these efforts continue to gain momentum.

We will be launching new marketing initiatives around these updated features shortly.

Another significant development came when we achieved an important milestone with the migration of our last large bank onto the AWS platform. This project is now basically complete.

The podcast the marketing team introduced are generating interest, but they're informative look at key issues from call center fraud, and hiring and employment fraud.

Giving big credit to our team for getting us over the finish line.

First person stories on identity theft, the same is true of our blogs they.

Our marketing team is continuing to make great progress, we believe that a key component of our recent growth has been driven by our marketing efforts and these efforts continue to gain momentum.

They have successfully created a great platform for thought leadership as we dive into a range of issues from the importance of the customer experience to the rise of Doe student fraud.

Bryan Lewis: They have successfully created a great platform for thought leadership as we dive into a range of issues from the importance of the customer experience to the rise of ghost student fraud. Another area of strategic importance continues to be our attendance at selected industry trade shows as we leverage opportunities to grow brand awareness and recognition as thought leaders. We recently attended four important industry trade shows. At ACAMS, the Association of Certified Anti-Money Laundering Specialists, our visibility was important because it is the world's largest annual conference dedicated to anti-financial crime. This is a premier global gathering for professionals fighting financial crime with thousands of compliance officers, regulators, law enforcement officials, and industry leaders gathering to explore the latest strategies and technologies shaping the future of anti-financial crime. I was pleased to present an innovation session.

The podcast the marketing team introduced are generating interest, but they're informative look at key issues from call center fraud, and hiring and employment fraud. The first person stories on identity theft. The same is true of our blogs.

Another area of strategic importance continues to be our attendance at selected industry trade shows as we leverage opportunities to grow brand awareness and recognition as thought leaders.

Bryan Lewis: I don't know exactly what that looks like for the future, but I feel pretty good that margins are going to stay where they are. They're going to be solid where they are, and the company doesn't have plans currently to really expand its operating expenses. I think as, God willing, we're able to grow revenue, you'll continue to see improvement on those fronts. Yeah. The only thing I'd add to that, I've said forever that we do not need legions of people to run the company. We don't need a ton more development staff or anything like that. If we added a bunch more customers, I'd probably need to add one or two customer success people, somebody on the support desk, those types of things.

We recently attended four important industry trade shows at a Cam The association of certified anti money laundering specialists or visibility was important because it is the world's largest annual conference dedicated to anti financial crime.

They have successfully created a great platform for thought leadership as we dive into a range of issues from the importance of the customer experience.

Is a ghost student fraud.

Another area of strategic importance continues to be our attendance at selected industry trade shows as we leverage opportunities to grow brand awareness and recognition as thought leaders.

This is a premier global gathering for professionals fighting financial crime with thousands of compliance officers regulators law enforcement officials and industry leaders gathering to explore the latest strategies and technologies shaping the future of anti financial crime.

We recently attended four important industry trade shows and a Cam the association of certified and a mind anti money laundering specialists or visibility was important because it is the world's largest annual conference dedicated to anti financial crime.

I was pleased to present, an innovation session. My topic was the innovation blind spot why identity starts with real verification of detailed way every system is only as strong as its entry point.

Bryan Lewis: My to-topic was The Innovation Blind Spot: Why Identity Starts with Real Verification. I detailed why every system is only as strong as its entry point. I explained why the most important part of the battle to protect against fraud should start with real-time ID verification as the very first step. I also discussed the latest fraud trends, highlighting how rapidly evolving threats such as synthetic identity fraud and deepfake-driven schemes are undermining traditional identity verification methods. The significance of these threats can be seen in the impact during Q1 2025 alone. Synthetic identity fraud skyrocketed by an enormous 311%, while deepfake-driven fraud soared by a whopping 1,100%. At the prominent FinovateFall 2025 conference, I was pleased to be a keynote speaker.

Bryan Lewis: What we're going to do is we've always been rather prudent, make sure that we're not spending money stupidly, but certainly we can tell there's a massive ROI to marketing. We will certainly divert some of the money that we're bringing into marketing, but my goal is to make sure we're also making sure we put cash in the bank. Sounds good. Maybe following up with marketing and sales productivity, Tim Poulin joining maybe a couple of quarters ago, could you talk a little bit about how is that progress going with the sales organization and what new initiatives are driving new business? I'd say that a couple of things are driving new business, certainly marketing. Outbound sales reach is bringing in some, what I would consider, some very good, interesting partners.

And why the most important part of the battle to protect against fraud should start with real time I'd verification is the very first step.

I also discussed the latest fraud trends highlighting how rapidly evolving threats, such as synthetic identity fraud, and deep fakes driven schemes are undermining traditional identity verification methods.

I was pleased to present, an innovation session. Mike topic was the innovation blind spot why identity starts with real verification.

A detailed way every system is only as strong as its entry point.

The significance of these threats can be seen it and the impact during the first quarter of 2025 alone.

Why the most important part of the battle to protect against fraud should start with real time I'd verification is the very first step.

Synthetic identity fraud skyrocketed by an enormous 311%, while deep fake driven fraud soared by a whopping 1100%.

At the prominent innovate fall 'twenty twenty-five conference I was pleased to be a keynote speaker my presentation on the hidden threat and identity verification by the first step is everything reinforced one of our key messages, which distinguishes Intel it checks industry, leading technology solution.

The significance of these threats can be seen in the impact during the first quarter of 2025 alone.

Bryan Lewis: My presentation on The Hidden Threat in Identity Verification: Why the First Step Is Everything reinforced one of our key messages which distinguishes Intellicheck's industry-leading technology solution from the many templated solutions that are not up to the task. We stop fraud before it starts with that critical first step. Just last month, we were at Money20/20, a show that is considered the premier industry event. With over 11,500 attendees from 3,000 plus companies, it is a concentrated, high-powered event that is packed with activities leading it to often be described as similar to speed dating, networking on steroids. Having a product that doesn't require hardware and can render a decisioning result 99.9% of the time in less than 1 second with industry-leading accuracy generated a lot of interest. We also had a team at MoneyLIVE North America.

Synthetic identity fraud skyrocketed by an enormous 311% well deep fake driven fraud soared by a whopping 1100%.

Bryan Lewis: The thing is, the larger the client, the longer it takes to land it. So far, the combination of marketing, sales, and customer success has done a lot to bring in the revenue that we're seeing. Sounds good. Thank you. That's all for me. Cool. Our next question comes from Scott Buck with HC Wainwright. Please proceed with your question. Hi. Good afternoon, guys. Just one for me today. Bryan, I'm curious, as the business has branched out into these new verticals, are you coming across any new tricks that fraudsters are using or anything that might identify a blind spot in the current product offering you have? I wouldn't say new tricks other than things that I've learned. Honestly, I learned this from the social media company.

From the many template it solutions that are not up to the task.

We stop fraud before it starts with that critical first step.

At the prominent Synovate fall 'twenty twenty-five conference I was pleased to be a keynote speaker my presentation on the hidden threat and identity verification by the first step is everything reinforced one of our key messages, which distinguishes Intel it checks industry, leading technology solution.

Just last month, we were at money 2020.

A show that is considered the premier industry event with over 11500 attendees from 3000 plus companies is a concentrated high powered event that is packed with activities leading it to often be described as similar to speed dating networking on steroids.

From the many template edge solutions that are not up to the task.

We stop fraud before it starts with that critical first step.

Having a product that doesn't require hardware and can render a decisioning result, 99, 9% at a time in less than a second with industry, leading accuracy generated a lot of interest.

Just last month, we were at money 2020.

A show that is considered the premier industry event with over 11500 attendees from 3000 plus companies use a concentrated high powered event that is packed with activities leading it to often be described as similar to speed dating networking on steroids.

We also had a team at money live North America.

This event brings together key stakeholders from across consumer banking and payment.

Bryan Lewis: This event brings together key stakeholders from across consumer banking and payment. Our Vice President of Account Management and Customer Experience, Sandra Bauer, and Chief Technology Officer, Jonathan Robins, networked with a number of industry representatives there. Jonathan was a presenter at the conference delivering a focused look at the needed vital first step in verification, which is Intellicheck. I will now turn the call over to Adam, who will provide additional details about our financial results.

Our vice President of account management and customer experience, Sandra Bauer and Chief Technology Officer, Jonathan Robertson network with a number of industry Representatives. There Jonathan was a presenter at the conference delivering focused look at the needed vital first step and verification, which is Intel a check.

Having a product that doesn't require hardware and can render a decisioning result, 99, 9% of the time in less than a second with industry, leading accuracy generated a lot of interest.

Bryan Lewis: They're trying to drive people to do things more mobile versus a laptop because they're finding that it's easier for people to commit fraud through a laptop. Thankfully, we've got really good, a laptop can kick off our tools, which pushes somebody onto their mobile device. No new tricks. Certainly, the big tricks that they're doing where we're seeing massive increases in attempts are deepfakes. Again, we stop a deepfake because it doesn't matter how good your deepfake is, you can't fake the license. Where they're looking, sort of the new vectors of fraud that we're seeing on this are synthetic identity theft seems to be growing. I think that was up like 311%, and deepfakes were up like, I think, 1,100% sort of year over year.

We also had a team at money live North America.

This event brings together key stakeholders from across consumer banking and payment.

I will now turn the call over to Adam who will provide additional details about our financial results.

Our vice President of account management and customer experience, Sandra Bauer and Chief Technology Officer, Jonathan Robertson network with a number of industry Representatives. There Jonathan was a presenter at the conference delivering a focus look at did needed vital first step and verification, which is Intel a check.

Thank you Brian. In addition regards forward looking statements. Please note we use rounding for convenience during this call for more detailed and authoritative financial information. Please refer to our press release and to our quarterly report filed at the close of the market today on Form 10-Q.

Adam Sragovicz: Thank you, Bryan. In addition to Gar's forward-looking statements, please note we use rounding for convenience during this call. For more detailed and authoritative financial information, please refer to our press release and to our quarterly report filed at the close of the market today on Form 10-Q. We are excited to tell you more about our record Q3 2025. As Bryan mentioned, revenues were 28% higher versus the same period in the prior year. We also saw strong pricing, up 14% for new business versus Q3 2024. You can see the strategy paying off of upselling existing clients and pursuing verticals such as title insurance companies, auto dealers, and background check firms that generate higher revenues per scan.

I will now turn the call over to Adam who will provide additional details about our financial results.

We are excited to tell you more about our record third quarter of 2025, as Brian mentioned revenues were 28% higher versus the same period in the prior year. We also saw strong pricing up 14% for new business versus the third quarter of 2024, you can see the strategy paying off of upsell.

<unk> existing clients and pursuing vertical such as title insurance companies auto dealers and background check firms that generate higher revenues per scan.

Bryan Lewis: They're trying, and in my opinion, they can get past the people who can't detect a fake license as well as we can. Go ahead, keep doing all that stuff, bad guys. We'll catch you because your license won't get past us. Right. All right. That's helpful. I guess I'll sneak one more in. On cash, how are you kind of prioritizing what you're doing with the cash balance? As you start to stack more, what makes the most sense here? Is it just continuing to reinvest in R&D and in the business, or are there some inorganic opportunities that might make some sense? If inorganic, if somebody showed us something that made the most sense to like, oh, you got to go buy that, obviously, we would think about it.

Total revenue for the third quarter of 2025 increased by 28% or by $1.3 million to a third quarter record of $6 million compared to $4 $7 million in the same period of 2024.

Adam Sragovicz: Total revenue for Q3 2025 increased by 28% or by $1.3 million to a Q3 record of $6 million, compared to $4.7 million in the same period of 2024. Our SaaS revenue for Q3 2025 was up 26% to $5.9 million from $4.7 million during the same period of 2024 and represented about 98% of our Q3 revenue. Gross profit as a percentage of revenues was 90.5% for Q3, which included $137,000 of amortization expense related to the software development projects we have talked with you about in the past. This gross profit compares to 91% that included only $24,000 of amortization expense in Q3 2024.

<unk> existing clients and pursuing vertical such as title insurance companies auto dealers and background check firms that generate higher revenues per scan.

Our SaaS revenue for the third quarter of 2025 was up 26% to $5 9 million from $4 7 million. During the same period of 2024 and represented about 98% of our third quarter revenue.

Total revenue for the third quarter of 2025 increased by 28% or by $1.3 million to a third quarter record of $6 million compared to $4 $7 million in the same period of 2024.

Gross.

<unk> as a percentage of revenues was 95% for the third quarter, which included $137000 of amortization expense related to the software development projects, we have talked with you about in the past.

Our SaaS revenue for the third quarter of 2025 was up 26% to $5 $9 million from $4 7 million. During the same period of 2024 and represented about 98% of our third quarter revenue.

Bryan Lewis: Where we're looking right now is continuing to execute on a plan that is working by the numbers. That means making sure that we're doing the right things in marketing, I think, doing the right things in the tools that we're doing a lot with machine, large language models, AI, that type of stuff to make our customer experience, our customer's customer experience, much, much better. Then making sure we're giving the sales and the CX team what they need to bring in more revenue. That's how we're looking at it. Again, it's not going to be like massive headcount or any of those types of things. With the right marketing people, you can do a lot without having to spend huge amounts of dollars. Yep. No, that makes sense. Congrats on all the progress, guys. That's it for me. Great. Thank you. Thanks.

This gross profit compared to 91% that included only $24000 of amortization expense in the third quarter of 2024.

Gross profit as a percentage of revenues was 95% for the third quarter, which included $137000 of amortization expense related to the software development projects. We have talked with you about in the past this.

Our adjusted gross margin, which you remember as a new metric we introduced in the first quarter of 2025 improved to 92, 8% in Q3 of 2025 compared to <unk> 91, 5% in Q3 of 2024, our margin has also gradually improving as we.

Adam Sragovicz: Our adjusted gross margin, which you may remember as a new metric we introduced in Q1 of 2025, improved to 92.8% in Q3 of 2025, compared to 91.5% in Q3 of 2024. Our margin is also gradually improving as we migrate customers away from Microsoft Azure, and we use that service less and less. We held to our estimates made earlier in the year and had no capitalization of software development expenses this quarter and don't expect to see any additional capitalization this year. Q3 of 2024 saw $443,000 of capitalization expenses. That was driven by the software that we developed for deployment onto AWS that is now fully in production.

This gross profit compared to 91% that included only $24000 of amortization expense in the third quarter of 2024.

Migrate customers away from Microsoft Azure, and we use that service less and less.

Our adjusted gross margin, which you.

We held to our estimates made earlier in the year and had no capitalization of software development expenses this quarter and don't expect to see any additional capitalization this year Q.

Remember as a new metric we introduced in the first quarter of 2025 improved to 92, 8% in Q3 of 2025 compared to 91, 5% in Q3 of 2024. Our margin has also gradually improving as we migrate customers away from Microsoft Azure.

Q3 of 2024 saw $443000 of capitalization expense that was driven by the software that we developed for deployment onto AWS that is now fully in production.

Bryan Lewis: We've reached the end of our question and answer session. I would now like to turn the floor back over to Bryan Lewis for closing comments. Thank you, Operator. Last quarter, I closed the call with a commitment to continue our efforts to expand our market penetration in both new and existing markets and with existing customers. I believe this quarter demonstrates that we've done just that. I'm particularly pleased that we've done this in light of some economic headwinds and developments that normally would have really hurt us. I think the diversification has helped. We will continue to execute on this plan. We're going to build on this success, manage our business resources smartly, but remain aggressive to continue to grow with both existing and new clients. I thank you all for joining, and have a great evening. This concludes today's teleconference.

And we use that service less and less.

We held to our estimates made earlier in the year and had no capitalization of software development expenses this quarter and don't expect to see any additional capitalization this year Q.

Operating expenses, which consist of selling general and administrative marketing and research and development expenses were essentially flat year over year and increased only $10000 to $5 two $1 million for the third quarter of 2025.

Adam Sragovicz: Operating expenses, which consist of selling, general and administrative, marketing, and research and development expenses, were essentially flat year over year and increased only $10,000 to $5.21 million for Q3 of 2025, compared to $5.2 million for the same period of 2024. On an accounting basis, R&D expenses were $214,000 higher in Q3 of 2025. As I mentioned, we capitalized $443,000 of R&D expenses in Q3 of 2024. Since we had no capitalization of software development this quarter, we saw R&D costs hit the P&L in their entirety.

Q3 of 2024 saw $443000 of capitalization expense that was driven by the software that we developed for deployment onto AWS that is now fully in production.

<unk> to $5 2 million for the same period of 2024.

On an accounting basis, R&D expenses were $214000 higher than Q3 of 2025, but as I mentioned, we capitalized $443000 of R&D expenses in Q3 of 2024.

Since we had no capitalization of software development. This quarter, we saw R&D costs hit the P&L in their entirety.

<unk> to $5 2 million for the same period of 2024.

Driven by our 28% revenue growth and operating expenses that remained relatively flat our net income improved by $1 $1 million to gain.

On an accounting basis, R&D expenses were $214000 higher in Q3 of 2025, but as I mentioned, we capitalized $443000 of R&D expenses in Q3 of 2024.

Adam Sragovicz: Driven by our 28% revenue growth and operating expenses that remained relatively flat, our net income improved by $1.1 million to gain $290,000 for the quarter on a GAAP basis. We currently expect net income to be slightly positive for the year. Our earnings improved from a loss of $0.04 per share last year to a gain of 1% this year. adjusted EBITDA also improved nicely by $798,000 to +$631,000 for Q3 versus -$160,000 in Q3 2024. We currently expect adjusted EBITDA to be positive for the year as well.

Bryan Lewis: You may disconnect your lines at this time. Thank you for your participation.

$290000 for the quarter on a GAAP basis. We currently expect net income to be slightly positive for the year.

Since we had no capitalization of software development. This quarter, we saw R&D costs hit the P&L in their entirety.

Our earnings improved from a loss of <unk> <unk> per share last year to a gain of 1%. This year. Adjusted EBITDA also improved nicely by 798000 to a positive $631000 for the third quarter versus negative $160000 in the third quarter of <unk>.

Driven by our 28% revenue growth and operating expenses that remained relatively flat our net income improved by $1.1 million to gain.

$290000 for the quarter on a GAAP basis. We currently expect net income to be slightly positive for the year.

24, we currently expect adjusted EBITDA to be positive for the year as well.

Our earnings improved from a loss of four cents per share last year to a gain of 1%. This year. Adjusted EBITDA also improved nicely by 798000 to a positive $631000 for the third quarter versus negative $160000 in the third quarter of two.

The weighted average diluted common shares were $20 8 million for the third quarter of 2025 compared to $19 5 million for the same period of 2024.

Adam Sragovicz: The weighted average diluted common shares were 20.8 million for Q3 2025, compared to 19.5 million for the same period of 2024. As to the company's liquidity and capital resources, at 30 September 2025, the company had cash and cash equivalents of $7.2 million. We had expected the peak in 2025 cash to be in Q3 2025, but we may see the same or even slightly higher cash balances at the end of 2025. We see this dynamic due to those customers paying us upfront in bucket type arrangements where the cash effect is immediate, but the revenue effect will be spread out over time. At quarter end, there was working capital, which is defined as current assets minus current liabilities of $8.2 million.

As to the company's liquidity and capital resources at September 30 of 2025, the company had cash and cash equivalents of $7 $2 million.

24, we currently expect adjusted EBITDA to be positive for the year as well.

We had expected to peak in 2025 cash to be in Q3 of 2025, but we may see the same or even slightly higher cash balances at the end of 2025.

The weighted average diluted common shares were $20 8 million for the third quarter of 2025 compared to $19 5 million for the same period of 2024.

We see this dynamic due to those customers paying us upfront in bucket type arrangements.

As to the company's liquidity and capital resources.

The cash effect is immediate but the revenue effect will be spread out over time.

September 30th 2025, the company had cash and cash equivalents of $7 $2 million we.

At quarter end, there was working capital, which is defined as current assets minus current liabilities of $8 2 million total assets of $25 3 million and stockholders equity of $18 9 million.

We had expected to peak in 2025 cash to be in Q3 of 2025, but we may see the same or even slightly higher cash balances at the end of 2025.

Adam Sragovicz: Total assets of $25.3 million and stockholders' equity of $18.9 million. We have mentioned a $2 million credit facility with Citibank in the past, which had no activity or balances during the quarter. We are gradually winding that commercial banking relationship, most likely exiting it entirely by the end of 2025. When we reflect on 2025 so far from the financial point of view, we see the strategies of upselling to current clients and diversification into new industries bearing fruit. As CSM and sales efforts encourage clients and prospective new clients.

We see this dynamic due to those customers paying us upfront in bucket type arrangements.

We have mentioned a $2 million credit facility with Citibank in the past, which had no activity or balances during the quarter.

Where the cash effect is immediate but the revenue effect will be spread out over time.

We are gradually winding that commercial banking relationship most likely exiting entirely by the end of 2025.

At quarter end, there was working capital, which is defined as current assets minus current liabilities of $8 2 million total assets of $25 $3 million and stockholders equity of $18 9 million.

When we reflect on 2025, so far from the financial point of view, we see the strategies of Upselling to current clients and diversification into new industries bearing fruit.

We have mentioned a $2 million credit facility with Citibank in the past, which had no activity or balances during the quarter. We are gradually winding that commercial banking relationship most likely exiting entirely by the end of 2025.

<unk> sales efforts encourage clients and prospective new clients to subscribe to our offerings and annual buckets, we are especially pleased with our strong cash position in the current environment.

Bryan Lewis: To subscribe to our offerings in annual buckets, we are especially pleased with our strong cash position in the current environment. We look forward to sharing our 2025 full year results with you on our call in March of 2026. I'll now turn the call over to the operator who will take your questions.

We look forward to sharing our 2025 full year results with you on our call in March of 2026, and I will now turn the call over to the operator, who will take your questions.

When we reflect on 2025, so far from the financial point of view, we see the strategies of Upsells to current clients and diversification into new industries bearing fruit.

Thank you we will now be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate that your line is in the question queue. You May press star two if he would like to remove your question from the queue for participants using speaker equipment, it may be necessary to pick up your.

Our CSM and sales efforts encourage clients and prospective new clients to subscribe to our offerings and annual buckets, we are especially pleased with our strong cash position in the current environment.

Operator: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate that your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. Our first question comes from Mike Grondahl with Northland Securities. Please proceed with your question.

We look forward to sharing our 2025 full year results with you on our call in March of 2026, and I will now turn the call over to the operator, who will take your questions.

Handset before pressing the star keys, one moment, please while we poll for questions.

Thank you we will now be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate that your line is in the question queue. You May Press Star two if you would like to remove your question from the queue.

Our first question comes from Mike Grondahl with Northland Securities. Please proceed with your question.

Hey, Thanks, guys and congrats on 28% year over year growth.

Mike Grondahl: Thanks, guys, and congrats on 28% year-over-year growth. Bryan, are the retail headwinds pretty much gone? I mean, retail shrank or declined 5% year-over-year for revenues. Can you give us an update on kind of what you're seeing there, what you expect going forward?

Ryan is.

Are the retail headwinds.

For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys, one moment, please while we poll for questions.

Pretty much gone I mean.

Retail shrink.

Ore declined 5% year over year for revenue was just can you give us an update on kind of what youre seeing there what you expect going forward.

Our first question comes from Mike Grondahl with Northland Securities. Please proceed with your question.

Hey, Thanks, guys and congrats on 28% year over year growth.

Yes, I mean, I'm going to say two things one I'm glad that we keep diversifying from retail because I think that's where a lot of our growth is coming from.

Bryan Lewis: You know, yeah, I mean, I'm gonna say two things. One, I'm glad that we keep diversifying from retail because I think that's where, you know, a lot of our growth is coming from. You know, what I'd say, you know, certainly throughout the year, we've seen softening in retail. I'm looking at numbers sort of every day, and I don't know whether it's, you know, people not spending money 'cause they were, you know, the shutdown or other things like that. You know, Christmas hasn't come yet, is the way I'll see it, but sometimes it doesn't come this early in the quarter. Who knows, right? It's still early in the quarter.

<unk>.

Ryan is.

Are the retail headwinds.

What I would say certainly throughout the year, we've seen softening in retail.

Pretty much gone I mean.

Retail shrink.

Ore declined 5% year over year for revenue was just can you give us an update on kind of what youre seeing there what you expect going forward.

And I'm looking at <unk>.

Number sort of every day and I don't know whether its you know people are not spending money because they were.

Yeah, I mean, I'm going to say two things one I'm glad that we keep diversifying from retail because I think that's where a lot of our growth is coming from.

The shutdown or other things like that but.

Christmas hasn't come yet is the way I'll see it but sometimes it doesn't come this early in the quarter.

What I would say certainly throughout the year, we've seen softening in retail.

But who knows right it's still early in the quarter.

And I'm looking at <unk>.

I will say that the overall slowness in retail throughout the year might mean that some of our customers who would normally you know are on these bucket things might have to pay us some breakage. Some overage at the end of the quarter.

Number sort of every day and I don't know whether its people not spending money because they were.

Bryan Lewis: You know, I will say that the overall slowness in retail throughout the year might mean that some of our customers who would normally, you know, are on these bucket things might have to pay us some breakage, some overage at the end of the quarter. You know, we're watching that carefully. Yeah, if you look at a lot of retail, you know, I think even, you know I was watching the news the other day, I think BofA said they expect retail to be down 5%. I think it varies from still, it's always like industry to industry. You know, it's not 100%. That's what I'd say. That's why we made sure that we're getting out of retail being our main-

The shutdown or other things like that but.

Christmas hasn't come yet is the way I see it but sometimes it doesn't come this early in the quarter.

We're watching that carefully but yet if you look at a lot of retail I think even.

But who knows right it's still early in the quarter.

I was watching the news the other day I think Bofa said, they expect retail to be down 5%. So.

You know I will say that the overall slowness in retail throughout the year might mean that some of our customers who would normally on these bucket things might have to pay us some breakage. Some overage at the end of the quarter.

I think it varies from still it's always like industry to industry, but you know.

It's not 100%, that's what I would say, but that's why we've made sure that we're getting out of retail being our main revenue generator.

We're watching that carefully but yet if you look at a lot of retail I think even.

The last three years to four years, it's been a real headwind in that now it's only down to a 30% mix and it's only a five person so you've you've kind of gotten around that's great. Yeah, and then you.

Mike Grondahl: Yeah

Bryan Lewis: revenue generator.

Mike Grondahl: You know, the last three to four years, it's been a real headwind.

Watching the news the other day I think Bofa said, they expect retail to be down 5%. So.

Bryan Lewis: Yeah

Mike Grondahl: down to a 30% mix, and it's only a 5% headwind.

I think it varies from still it's always like industry to industry, but you know it's.

Bryan Lewis: Yeah.

Mike Grondahl: You've kinda gotten around it. That's great.

You said that pricing on new business.

Bryan Lewis: Yeah.

Mike Grondahl: You said that pricing on new business was up.

It's not 100%, that's what I'd say, but that's why we've made sure that we're getting out of retail being our main revenue generator.

14%.

How would you sort of your 6 million in revenue qualifies as new business.

Mike Grondahl: 14%.

Bryan Lewis: Yeah.

Mike Grondahl: How much of your $6 million in revenue qualifies as new business? A follow-up to that, just any guess at what overall pricing is doing directionally?

The last three to four years, it's been a real headwind in that now it's only down to 30% mix and it's only a 5% headwind.

And then a follow up to that just any guess.

At what overall pricing is doing directionally.

You've kind of gotten around that's great. Yeah, and then you said that pricing on new business.

Honestly I would be making a wild guess to say what percentage of it if I think about.

Bryan Lewis: Honestly, I would be making a wild guess to say what percentage of it. If I think about, you know, some of the drivers of it's I don't know, Adam, if you've got a guess on it. You know, it's not more than 10% probably would be my guess. Because, you know, it's in title, it's in auto, you know, we could probably back into it, right? Title being about 2%, automotive I think was like 5%, and then some of our new banking customers coming in there. You know, probably make that 7% to 'cause most of that's new business, make that, you know, 7% to 10% might be part of that new business. The second question was? I'm sorry, I forgot it, Mike.

It was up 14%.

One of your 6 million in revenue qualifies as new business in.

Some of the drivers of it.

It's it's.

Then a follow up to that just yet.

I don't know Adam if you you've got a guess on it.

Yes.

What overall pricing is doing directionally.

It's not it's not more than 10% probably would be my guess.

Because it's entitled in auto, we could probably back into it right title being about 2% automotive I think was like 5%.

Honestly.

We'd be making a wild guess to say what percentage of it if I think about.

Some of the drivers of it.

And then some of our new banking customers coming in there so probably make that seven to cause most of that's new business make that 7% to 10% might be part of that new business.

It's it's.

I don't know Adam if you you've got a guess on it.

It's not 10 is not more than 10% probably would be my guess.

And then the second question was I'm, sorry forgot it like just if you had to look at overall pricing total pricing Oh, yeah over here.

Because it's in title is in auto we could probably back into it right title being about 2% automotive I think was like 5%.

Mike Grondahl: Just if you had to look at overall pricing, total pricing.

What kind of tailwind.

And then some of our new banking customers coming in there. So you know probably make that seven to cause most of that's new business make that 7% to 10% might be part of that new business.

Bryan Lewis: Oh, yeah.

Tailwind is that.

Mike Grondahl: year-over-year.

Bryan Lewis: Mm-hmm. Yep.

Mike Grondahl: what kind of tailwind is that?

I'd say overall pricing when we go into renewals were raising prices still so that's that really hasnt been an issue.

Bryan Lewis: I'd say overall pricing, you know, when we go into renewals, we're raising prices still. That really hasn't been an issue. You know, the more significant increases obviously are with new clients because, you know, it's sort of like we know what we're worth now. You know, when I first started, we were like, you know, we needed the business, so we were gonna make deals. Now we know that we don't have to do that anymore.

The more significant increases obviously are with new clients because.

And then the second question was I'm, sorry forgot it like just if you had to look at overall pricing total pricing Oh yea over year.

It's sort of like we knew what we're we know what we're worth now.

When I first started where like you know.

Needed to business. So we were gonna make deals now we know that we don't have to do that anymore.

What kind of tailwind is that.

I'd say overall pricing when we go into renewals were raising prices still so that's that really hasn't been an issue. The more significant increases obviously are with new clients because.

Got it great.

Thanks, guys.

Mike Grondahl: Got it. Great. Hey, thanks, guys.

Alright. Thank you later thank you.

Yeah.

Bryan Lewis: All right. Talk to you later. Thank you.

Our next question comes from Jeff Van <unk> with Craig Hallum Capital Group. Please proceed with your question.

Operator: Our next question comes from Jeff Van Rhee with Craig-Hallum Capital Group. Please proceed with your question.

It's sort of like we knew what we're we know worse now.

Hey, this is Daniel Hibshman on for Jeff Van Lee Thanks for taking my questions, Brian Adam just one.

When I when I first started where like you know we needed the business. So we were going to make deals now we know that we don't have to do that anymore.

Daniel Hibshman: Hey, this is Daniel Hibshman on for Jeff Van Rhee. Thanks for taking my questions, Bryan, Adam. Just on the SaaS revenue sequential pickup this quarter, real strong, like you said, you know, the regional bank being a significant driver there. Is there anything?

The SaaS revenue sequential pick up this quarter, a real strong like you said the regional bank being a significant driver. There is there anything one time or seasonal as well to call out about the number for this quarter on SaaS, whereas.

Got it great. Thanks.

Thanks, guys.

Alright. Thank you later thank you.

Daniel Hibshman: you know, one time or seasonal as well to call out about the number for this quarter on SaaS? Is that a pretty good baseline to think about?

Our next question comes from Jeff Van <unk> with Craig Hallum Capital Group. Please proceed with your question.

That a pretty good baseline to think about.

That's it was there's nothing one time I think we had.

Hey, this is Daniel <unk> on for Jeff Van Lee. Thanks for taking my questions, Brian Adam just wonder SaaS revenue sequential pick up this quarter real strong like you said the regional bank being a significant driver there is there any.

Bryan Lewis: That's, you know, it was. There's nothing one time. You know, I think we had, you know, in overall revenues, I think we had about $140,000, $150,000 worth of professional services fees, which we're going to start doing going forward, because otherwise implementations can drag on. Nothing that I would say is sort of out of the ordinary other than just, you know, some sequential smaller new customers, you know, this bank really starting to come on. Adam Sragovicz, anything else you might add?

Yes overall revenues I think we had about 140 $850000 worth of professional services fees, which were going to start doing going forward because otherwise implementations can drag on.

One time or seasonal as well to call out about the number for this quarter on SaaS, whereas that a pretty good baseline to think about.

Nothing that I would say is sort of out of the ordinary other than just some sequential smaller new customers. This bank really starting to come on.

That's it was there's nothing one time I think we had.

Yeah overall revenues I think we had about 140 <unk> hundred $50000 worth of professional services fees, which were going to start doing going forward because otherwise implementations can drag on.

<unk>.

Adam anything else you might add.

No I think I think it's a great point that the.

Adam Sragovicz: No, I think, I think it's a great point that the, I suppose that's non-SaaS revenue, right, of the implementation from professional services, that that kind of serves two purposes, like Bryan said, to accelerate the implementation. Also, it's really a selling point, sort of a competitive differentiator for Intellicheck, and we expect to see more and more of that non-SaaS revenue with sort of larger financial institution implementations.

I suppose thats not SaaS revenue rate of the of the implementation from professional services that that kind of serves two purposes like Brian said to accelerate the implementation, but also it's really a selling point sort of a competitive differentiator for our <unk> and we.

Nothing that I would say is sort of out of the ordinary other than just some sequential smaller new customers. This bank really starting to come on.

Adam anything else you might add.

Back to see more and more of that non SaaS revenue with sort of larger financial institution implementations.

No I think I think it's a great point that the.

I suppose that's not SaaS revenue rate of the of the implementation from professional services that that kind of serves two purposes like Brian said to accelerate the implementation, but also it's really a selling point sort of a competitive differentiator for our Intel tracking and we expect.

Okay, and then on the uplift side from the regional bank is that a full quarter of impact we're getting here how should we think about that yeah that was if that was a full quarter of impact.

Daniel Hibshman: Okay. Then on the uplift side from the regional bank, is that a full quarter of impact we're getting here? How should we think about that?

Bryan Lewis: Yeah. That was a full quarter of impact.

Okay and then just last for me is on a social media customer just a little bit of clarification on sort of where they stand with ramping into volume still five figure this quarter expecting maybe you get to six figure dollar value in terms of the volume.

Daniel Hibshman: Okay. Just last for me is on the social media customer, just a little bit of clarification on sort of where they stand with ramping-

To see more and more of that non SaaS revenue with sort of larger financial institution implementations.

Daniel Hibshman: you know, into volumes. You know, five-figure this quarter, expecting maybe you get to six-figure dollar value in terms of the volume. You know, my understanding from last quarter was there was that coding change that needed to be made on their side.

Okay, and then on the uplift side from the regional bank is that a full quarter of impact we're getting here how should we think about that yeah that was if there was a full quarter of impact.

My understanding from last quarter was there was that coding change needed to be made on their side to make the data processible. So how do you just clarify sort of where that's at if theyre ramping volumes is that them paying for development work or youre, saying, they're actually running operational volume through that's ramping and it can be ramping into Q4.

Bryan Lewis: Yeah

Daniel Hibshman: to make the data processable. Just clarify sort of where that's at. If they're ramping volumes, you know, is that them paying for developmental work, or you're saying they're actually running operational volumes through that's ramping.

Okay and then just last for me is on a social media customer just a little bit of clarification on sort of where they stand with ramping into volume figure this quarter expecting maybe you get to six figure.

Bryan Lewis: They-

They are not running full operational volume, but you know what they do is they have been.

Daniel Hibshman: it's gonna be ramping into Q4?

Bryan Lewis: They are not running full operational volume, but, you know, what they do is they've been. It's almost like they tweak it. It works, they put more in, right? 'Cause the main thing was so much of what they were sending us was just you could not process it. I mean, the images were that bad. You know, we've met with them in person. They know that it is something. You know, it's still a major priority to get identity right. They know that there's, you know, three areas on the platform where fraud is taking place, you know, and they need and want to attack that. It's just, you know, dealing with massive organizations is very fulfilling once you're done, but it takes a lot to get fulfilled.

Value in terms of the volume I know my understanding from last quarter was there was that coding change needed to be made on there, yes, I can make a data processible. So how do you just clarify sort of where that's at if theyre ramping volumes is that I'm paying for development work or youre, saying, they're actually running operational volume through that demand can be ramping into Q4.

It's almost like they stay tweak it.

It works they put more in right and because the main thing was so much of what they were sending US was just you could not process. It in the images.

Where that bad so we've met with them in person.

They are not running full operational volume, but you know what they do is they have been.

They know that is something it's still a major priority to get identity right. They know that there's three.

It's almost like they they tweak it.

Three areas on the platform where.

It works they put more in right and because the main thing was so much of what they were sending US was just you could not process. It in the images were that bad so we've met with them in person.

Fraud is taking place.

And they want to they need and want to attack that is just.

Dealing with massive organizations is very fulfilling once you're done but it takes a lot to get fulfilled.

They know that is something it's still a major priority to get identity right. They know that Sears.

And priority is moving priorities change and they have said that theyre doing their dev priorities for Q1.

Bryan Lewis: You know, priorities move, priorities change, and they have said that they're doing their dev priorities for Q1. You know, they've told us that this is a very, very high priority. Fingers crossed they actually get to it. We're working with them and we're also, in a way, on our side, you know, it's one of the things that our AI teams are doing is, you know, how do we augment their images so that we can do it better? That's part of even sort of what we just did with the OCR. You know, how can we take a, you know, a blurry, poor quality image and make it look better, which might also help, right? We're sort of working hand-in-hand with them to figure out how do we solve this problem the best way.

Three areas on the platform where.

Fraud is taking place.

And they want to they need and want to attack that is just <unk>.

And they told US that this is a very very high priority so fingers crossed they actually get to it.

<unk> with massive organizations is very fulfilling once you're done but it takes a lot to get fulfilled and priorities moving priorities change and they have said that theyre doing their dev priorities for Q1 and you know.

We're working with them.

They told US that this is a very very high priority, so fingers crossed they actually get to it.

We're working with them and we're also in a way on our side. It's one of the things that our AI teams are doing is how do we augment their images. So that we can do it better that's part of even sort of what we just did with the OCR how can we take.

Daniel Hibshman: All right. Great. Thanks, Bryan. Thanks, Adam, and congrats on the growth this quarter.

Bryan Lewis: Great. Thank you. Bye.

Operator: Our next question comes from Rudy Kessinger with D.A. Davidson. Please proceed with your question.

A blurry poor quality image and make it look better which might also help alright. So we're sort of working hand in hand with them to figure out how do we solve this problem the best way.

Andres Miranda: Hi, this is Andres Miranda for Rudy. I just have a couple of questions, and congrats on a great quarter. If our math is right, incremental EBITDA margins were 62% on a year-over-year basis. That's a huge and fantastic number. Could you maybe just talk about the dynamics driving it and how should we think about margins moving forward? Is it like a new baseline, a new normal having 10% EBITDA margins, or how should we think about it? Thank you.

Alright, great. Thanks, Brian Thanks, Adam and congrats on the growth this quarter.

Great. Thank you.

It's a huge and fantastic number could you maybe just talk about the dynamics driving it on household we think about margins moving forward.

Our next question comes from really Kirschner with D. A Davidson. Please proceed with your question.

Like a new baseline.

Hi, This is on bridge me on that already.

New normal having 10% EBITDA margin for a hospital would think about it.

Just have a couple of questions and congrats on a great quarter. Thanks.

King.

And a throw that over to Adam.

So.

If our math is right.

Bryan Lewis: Gonna throw that over to Adam.

Incremental EBITDA margins were 62% on a year over year basis.

Thanks.

<unk>.

So I think I mean, I think there is a there's a few moving parts to that question right. So the first the.

Adam Sragovicz: Thanks. I mean, I think there's a few moving parts to that question, right? The first part of that question is, you know, the sort of what we call adjusted gross profit or gross margin. I think that number, We're comfortable with that number being sort of in the very low 90%. As revenue grows, you know, we think that we'll be able to maintain that even at a higher level of revenue. I mean, as far as adjusted EBITDA is concerned, you know, I think our operating costs have been remarkably stable as we've been able to grow. I mean, to be honest, I think, you know, in 2024, you saw this quarter, you know, still had negative EBITDA.

It's a huge and fantastic number could you maybe just talk about the dynamics driving it on household we think about margins moving forward.

The first part of that question is you know.

Sort of what we call adjusted gross profit or gross margin. So I think that number.

Like a new baseline.

New normal having 10% EBITDA margin to a hospital would think about it.

We're comfortable with that number being sort of in the very low 90%.

King.

And a throw that over to Adam.

So as revenue grows.

Thanks.

Sure.

So I think I mean, I think theres, a theres a few moving parts to that question right. So the first the first part of that question is you know the sort of what we call adjusted gross profit or gross margin. So I think that number.

Adjusted EBITDA is concerned I think.

Our operating costs have been remarkably stable as we've been able to grow so.

We're comfortable with that number being sort of in the very low 90%.

I mean to be honest I think in.

2024, you saw.

So as revenue grows.

This quarter.

We think that will we'll be able to maintain that even at a higher.

Still had negative EBITDA and.

And now we've delivered EBITDA positive this quarter as well as the previous quarter and so I do think that you have certain fixed costs in the business that as the revenue grows youre just going to see more and more contribution I think the question becomes which is a big strategic question.

Level of revenue I mean as far as.

Adam Sragovicz: Now we've delivered, you know, EBITDA positive this quarter as well as the previous quarter. I do think that you have certain fixed costs in the business that as the revenue grows, you're just gonna see more and more contribution. I think the question becomes, which is a big strategic question, that I couldn't answer, that's more for Bryan, but, you know, how does the company grow forward in terms of investments in marketing and how does it reinvest, you know, in its own growth? I don't know exactly what that looks like for the future, but I feel pretty good that, you know, margins are gonna stay where they are. They're gonna be solid where they are, and that the company doesn't have plans currently to really expand its operating expenses.

Adjusted EBITDA is concerned I think.

Our operating costs have been remarkably stable as we've been able to grow so I.

I mean to be honest I think in <unk>.

24, you saw.

This quarter.

I Couldnt answer that's more for Brian, but how does the company grow forward in terms of investments in marketing and how does it reinvest.

Still had negative EBITDA.

In its own growth. So I don't know exactly what that looks like for the future, but I feel pretty good that.

Margins are going to stay.

Where they are they're going to be solid where they are in that.

The company doesn't have plans currently to really expand its operating expenses. So I think.

That I Couldnt answer that's more for Brian, but how does the company grow forward in terms of investments in marketing and how does it reinvest.

As God willing we're able to grow revenue.

Adam Sragovicz: I think, as, God willing, we're able to grow revenue, you know, you'll continue to see improvement on those fronts.

In its own growth. So I don't know exactly what that looks like for the future, but I feel pretty good that margins are going to stay.

You'll continue to see improvement on those fronts.

Yes, and what they.

Only thing I'd add to that and you know I have said forever that we do not need legions of people to run the company. We could we don't need a ton more development staff or anything like that if we added a bunch more customers.

Bryan Lewis: Yeah. The only thing I'd add to that, you know, I've said forever that we do not need legions of people to run the company. You know, we don't need a ton more development staff or anything like that. You know, if we added a bunch more customers, I probably need to add 1 or 2 customer success people, you know, somebody on the support desk, you know, those types of things. You know, what we're gonna do is we've always been rather prudent, is make sure that we're not spending money stupidly. Certainly we can tell there's a massive ROI to marketing. We will certainly divert some of the money that we're bringing in to marketing. You know, my goal is to make sure we're also making sure we put cash in the bank.

Where they are they're going to be solid where they are and that the.

The company doesn't have plans currently to really expand its operating expenses. So I think as God willing we're able to grow revenue.

We need to add one or two customer success people you know somebody on the support desk.

You'll continue to see improvement on those fronts.

Those types of things so what we're going to do as we've always been rather prudent is make sure that we're not spending money stupidly.

Yeah, and the only thing I'd add to that and you know I've said forever that we do not need legions of people to run the company. We could we don't need a ton more development staff or anything like that if we added a bunch more customers.

Certainly.

We can tell there is a massive ROI to marketing. So we will certainly divert some of the money that we're bringing in to marketing but.

We need to add one or two customer success people you know somebody on the support desk.

My goal is to make sure. We're also making sure we put cash in the bank.

Those types of things so what we're going to do as we've always been rather prudent is make sure that we're not spending money stupidly.

Sounds good and maybe maybe following up with marketing and sales productivity.

Andres Miranda: Sounds good. Maybe following up with, you know, marketing and sales productivity. Tim Poulin joined maybe a couple quarters ago. Could you talk a little bit about how is that progress going with the sales organization and, you know, what, you know, what new initiatives are driving, you know, new business?

Paul enjoying maybe a couple of quarters ago could you talk a little bit about how these type programs going with the sales organization.

Certainly.

We can tell there is a massive ROI to marketing. So we will certainly divert some of the money that we're bringing in to marketing but.

What.

One you need to do self driving new business.

My goal is to make sure. We're also making sure we put cash in the bank.

So I would say that a couple of things are driving new business certainly marketing.

Bryan Lewis: I'd say that, you know, a couple things are driving new business, certainly marketing. You know, outbound sales reach is bringing in some, you know, what I would consider some very good, interesting partners. You know, the thing is, the larger the client, the longer it takes to land it. You know, so far, you know, the combination of sales, marketing sales and customer success has done a lot to bring in the revenue that we're seeing.

Sounds good and maybe maybe following up with marketing and sales productivity came falling going maybe a couple of quarters ago could you talk a little bit about Hollywood.

Outbound sales reach is bringing in some.

What I would consider some very good interesting partners.

Yes.

The thing is the larger the client the large longer it takes to land it.

Brokers going with with the sales organization.

What.

But so far.

One you need to do self driving new business.

The combination of <unk>.

So I would say that a couple of things are driving new business certainly marketing.

Sales marketing sales and customer success.

Outbound sales reach is bringing in some.

<unk> done a lot to bring in the revenue that we're seeing.

What I would consider some very good interesting partners.

Sounds good. Thank you that's all for me.

Yeah.

The thing is the larger the client the longer it takes to land it.

Andres Miranda: Sounds good. Thank you. That's all for me.

Well.

Our next question comes from Scott Buck with H C. Wainwright. Please proceed with your question.

Bryan Lewis: Cool.

But so far.

Operator: Our next question comes from Scott Buck with H.C. Wainwright. Please proceed with your question.

The combination of.

Hi, Good afternoon, guys just one from me today Mhm, Brian I'm curious as the businesses branched out into these new verticals are you coming across any new tricks.

Sales marketing sales and customer success.

Scott Buck: Hi, good afternoon, guys. Just one from me today.

Has done a lot to bring in the revenue that we're seeing.

Scott Buck: Bryan, I'm curious, as the business has, you know, branched out into these new verticals, are you coming across any new tricks the fraudsters are using or anything that might, you know, identify a blind spot in the current product offering you have?

Sounds good. Thank you that's all for me.

Rosters are using or anything that may might.

Hello.

Identify a blind spot in the current product offering you have.

Our next question comes from Scott Buck with H C. Wainwright. Please proceed with your question.

I wouldn't say new tricks.

Hi, good afternoon guys.

Bryan Lewis: I wouldn't say new tricks, other than, you know, things that I've learned. You know, honestly, I learned this from the social media company. They're trying to drive people to do things more mobile versus a laptop because they're finding that it's easier for people to commit fraud through a laptop. You know, thankfully, we've got really good. You know, a laptop can kick off our tools, which pushes somebody onto their mobile device. You know, no new tricks. You know, certainly, the big tricks that they're doing, you know, where we're seeing massive increases in attempts are deepfakes. Again, we stop a deepfake because it doesn't matter how good your deepfake is, you can't fake the license.

Other than.

One for me today, Brian I'm curious as the businesses branched out into these new verticals are you coming across any new.

Things that I've learned and I honestly I learned this from the social media company Theyre trying to drive people.

And to do things more mobile versus a laptop because they are finding that it's easier for people to commit fraud through a laptop and thankfully we've got really good.

New tricks.

Fraudsters are using or anything that may might.

Identify a blind spot in the current product offering you have.

I wouldn't say new tricks.

Our laptop can kick off our tools, which pushes somebody onto their mobile device.

Other than.

Things that I've learned and I honestly I learned this from the social media company, they're trying to drive people.

So yes.

Yes.

No new tricks certainly the big tricks that Theyre doing you know, where we're seeing massive increases in attempts are deep fakes, but again, we stopped the deep fake because it doesn't matter how fake you how good your deep fake is you can't take the license, so where theyre looking like sort of the new vectors of fraud that we're seeing on this or synthetic.

To do things more mobile versus a laptop because they are finding that it's easier for people to commit fraud through a laptop and thankfully we've got really good.

A laptop can kick off our tools, which pushes somebody onto their mobile device.

Bryan Lewis: Where they're looking, like sort of the new vectors of fraud that we're seeing on this are synthetic identity fraud seems to be growing. You know, I think that was up like 311%, and deepfakes were up like, I think 1,100% sort of year-over-year. You know, they're trying, you know. In my opinion, they can get past the people who can't detect a fake license as well as we can. Go ahead, keep doing all that stuff, bad guys. We'll catch you because your license won't get past us.

Identity theft seems to be growing.

I think that was up like 311%.

Yes.

No new tricks certainly the big tricks that Theyre doing you know, where we're seeing massive increases in attempts are deep fakes, but again, we stop a deep fake because it doesn't matter how fake youre how good your deep fake is you can't fake the license, so where theyre looking like sort of the new vectors of fraud that we're seeing on this or synthetic.

And deep fakes were up like I think 1100% sort of year over year.

So theyre trying you know and in my opinion, you can get past the people who can't detect fake license as well as we can but go ahead keep doing all of that stuff bad guys. We will catch you because your license when we get past us.

Identity theft seems to be growing.

I think that was up like 311%.

Alright, alright.

That's helpful. I guess I'll sneak one more in on cash how are you how are you kind of prioritizing.

Scott Buck: Right. All right. That's helpful. I guess I'll sneak one more in.

And deep fakes were up like I think 1100% sort of year over year.

Bryan Lewis: Sure.

Scott Buck: On cash, how are you prioritizing what you're doing with the cash balance and as you start to stack more, you know, what makes the most sense here? Is it just continuing to reinvest in R&D and in the business, or are there some, you know, inorganic opportunities that might make some sense?

What youre doing with the cash balance and as you start to stack more.

So they're trying you know and in my opinion, you can get past the people who can't detect fake license as well as we can but go ahead keep doing all that stuff bad guys will catch you because your license when we get past us.

Alright, alright.

Bryan Lewis: We're, If inorganic, you know, if somebody showed us something that made the most sense to like, "Oh, you gotta go buy that," obviously we would think about it. Where we're looking right now is, you know, continuing to execute on a plan that, you know, is working, you know, by the numbers. That means making sure that we're doing the right things in marketing. I think doing the right things in the tools that, you know, we're doing a lot with, you know, large language models, AI, that type of stuff to make our customer experience, you know, our customer's customer experience much, much better. Making sure we're giving the sales and the CX team what they need to bring in more revenue. That's how we're looking at it.

That's helpful. I guess I'll sneak one more in on.

<unk> is somebody showed as something that made the most sense to like Oh, you Gotta go by that obviously, we would think about it.

On cash how are you how are you kind of prioritizing.

What youre doing with the cash balance and as you start to stack more.

But.

Where we're looking right now is continuing to execute on a plan that is working you know by the numbers.

What makes the most sense here or is it just continuing to reinvest in R&D and in the business or are there some inorganic opportunities that might make some sense.

And that means making sure that we're doing the right things in marketing I think doing the right things in the tools that we're doing a lot with.

Well it is inorganic.

If somebody showed as something that made the most sense to like Oh, you Gotta go by that obviously, we would think about it.

Machine large language models AI that type of stuff to make our customer experience our customers customer experience much much better.

But.

Where we're looking right now is continuing to execute on a plan that is working you know by the numbers.

And then making sure we're given the sales and the CX team what they need to bring in more revenue. So that's how we're looking at it again, it's not going to be like massive head count or any of those types of things.

And that means making sure that we're doing the right things in marketing I think doing the right things in the tools that we're doing a lot with.

Bryan Lewis: Again, it's not gonna be like massive headcount or any of those types of things. With, you know, the right marketing people, you can do a lot without having to spend, you know, huge amounts of dollars.

And with the right marketing people you can do a lot without having to spend.

The machine large language models AI that type of stuff to make our customer experience our customers customer experience much much better.

Huge amounts of dollars.

Yes that makes sense Ah congrats on all the progress guys and that's it for me.

Scott Buck: Yep. No, that makes sense. Congrats on all the progress, guys. That's it for me.

And then making sure we're given the sales and the CX team what they need to bring in more revenue. So that's how we're looking at it and again, it's not going to be like massive head count or any of those types of things.

Great. Thank you.

Thanks.

Bryan Lewis: Great. Thank you.

We have reached the end of our question and answer session I would now like to turn the floor back over to Brian Lewis for closing comments.

Adam Sragovicz: Thanks.

Operator: We've reached the end of our question and answer session. I would now like to turn the floor back over to Bryan Lewis for closing comments.

And with the right marketing people you can do a lot without having to spend.

Thank you operator, so last quarter I close the call with a commitment to continue our efforts to expand our.

Bryan Lewis: Thank you, operator. Last quarter, I closed the call with a commitment to continue our efforts to expand, you know, our market penetration in both new and existing markets and with existing customers. I believe this quarter demonstrates that we've done just that. I'm particularly pleased that we've done this in light of some economic headwinds and developments that normally would have really hurt us, but I think the diversification has helped. We will continue to execute on this plan. We're gonna build on this success, manage our business resources, you know, smartly, but remain aggressive to continue to grow with both existing and new clients. I thank you all for joining, and have a great evening.

Huge amounts of dollars.

Our market penetration in both new and existing markets and with existing customers.

Yes, no that makes sense Ah congrats on all the progress guys and that's it for me.

And I believe this quarter demonstrates that we've done just that.

Great. Thank you.

Thanks.

We have reached the end of our question and answer session I would now like to turn the floor back over to Brian Lewis for closing comments.

I am, particularly pleased that we've done this in light of some economic headwinds in developments that normally would've really hurt us, but I think the diversification has helped so we will continue to execute on this plan.

Thank you operator, so last quarter I close the call with a commitment to continue our efforts to expand.

Our market penetration in both new and existing markets and with existing customers.

We're going to build on this success manage our business resources.

Partly.

And I believe this quarter demonstrates that we have done just that.

But remain aggressive to continue to grow with both existing and new clients. So I. Thank you all for joining and have a great evening.

I am, particularly pleased that we've done this in light of some economic headwinds in developments that normally would have really hurt us, but I think the diversification has helped.

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

Operator: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

So we will continue to execute on this plan, we're going to build on this success manage our business resources.

Partly.

But remain aggressive to continue to grow with both existing and new clients. So I. Thank you all for joining and have a great evening.

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

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Yeah.

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