Loading...
01/11 03:36
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reflects strong financial performance with revenue growth, improved net income, and record EBITDA. The company is diversifying away from retail and focusing on high-margin verticals, with stable operating expenses and a strong cash position. The Q&A section indicates positive sentiment despite retail headwinds, with new business contributing to revenue and incremental EBITDA margins expected to remain stable. The company is also addressing fraud trends effectively. Overall, these factors suggest a positive outlook for the stock price over the next two weeks.
Revenue $6 million, a 28% increase year-over-year ($1.3 million increase). The growth was driven by a regional bank contract, a leading lease-to-own company growing over 700%, and a major bank and credit card issuer growing over 60%.
Gross Margin 91%, slightly down from 91.5% in Q3 2024. Adjusted gross margin improved to 92.8% from 91.5% in Q3 2024. The improvement was due to reduced reliance on Microsoft Azure and migration to AWS.
Net Income $290,000, an improvement of $1.1 million year-over-year. This was driven by revenue growth and flat operating expenses.
Earnings Per Share (EPS) $0.01, improved from a loss of $0.04 per share in Q3 2024. This was due to increased revenue and controlled expenses.
Adjusted EBITDA $631,000, a record for Q3, improved by $798,000 year-over-year. This was driven by revenue growth and flat operating expenses.
SaaS Revenue $5.9 million, up 26% year-over-year, representing 98% of total revenue. Growth was driven by upselling existing clients and entering new verticals.
Operating Expenses $5.21 million, essentially flat year-over-year (increased by $10,000). R&D expenses increased due to no capitalization of software development expenses in Q3 2025.
Cash and Cash Equivalents $7.2 million as of September 30, 2025. The strong cash position was due to upfront payments from customers in bucket-type arrangements.
New OCR product: Introduced a new and enhanced optical character recognition (OCR) product developed in-house to reduce costs and improve ID verification.
Hub customer console: Launched a streamlined web application for customers to view and manage transactions across all access methods.
Updated portal product: Enhanced web application for remote ID validation, now supporting WhatsApp for international use.
New desktop application: Introduced a desktop app for ID verification without integration, targeting smaller banks and credit unions.
Mobile SDK: Launched a mobile SDK for easy integration of ID verification into iOS and Android apps.
Banking and lending growth: Revenue from banking and lending grew approximately 80%, representing 50% of quarterly revenue.
Title insurance expansion: Revenue from title insurance grew 120%, representing over 2% of quarterly revenue.
Background check market: Expanded into supplier and vendor screening, gaining traction with an auto manufacturer and its suppliers.
Automotive retail: Growth in high-end auto retailers using the product to stop fraud.
Stadium concessions: Added one stadium and concessions provider, exploring integration with POS systems.
Cargo freight fraud: Expanded use cases with a food manufacturer, generating low 6-figure annual contract value.
Revenue growth: Achieved 28% revenue growth year-over-year, reaching $6 million in Q3 2025.
Gross margin: Maintained a gross margin of 91%.
AWS migration: Completed migration of the last large bank onto the AWS platform, reducing costs.
Marketing efforts: Increased visibility through podcasts, blogs, and attendance at major industry trade shows.
Recognition as a leader: Named a leader in the IDC MarketScape Worldwide Identity Verification and Financial Services 2025 Vendor Assessment.
Fraud prevention focus: Highlighted the importance of real-time ID verification to combat synthetic identity fraud and deep fake-driven schemes.
Trade show participation: Enhanced brand awareness and thought leadership through presentations at major conferences like ACAMS and Money20/20.
Social Media Client Build-Out Delays: The build-out phase with a global social media company is taking longer than anticipated, which could delay revenue realization and impact financial projections.
Fraud Trends: The rise in synthetic identity fraud (311%) and deep fake-driven fraud (1,100%) poses significant risks to the company's ability to maintain the effectiveness of its fraud prevention solutions.
Dependency on Banking Technology Providers: Smaller banks and credit unions are often tied to the schedules of banking technology providers, which can delay the implementation of Intellicheck's services.
Stadium Concessions Market: The process of integrating with significant POS system providers in the stadium concessions market is slow, which could hinder growth in this segment.
Economic Environment: The company’s reliance on upfront payments and bucket-type arrangements could expose it to risks if customers face financial difficulties or economic downturns.
Regulatory and Compliance Risks: The company operates in highly regulated industries, and changes in regulations or compliance requirements could increase operational costs or limit market opportunities.
Customer Concentration: A significant portion of revenue comes from a few large clients, which poses a risk if any of these clients reduce or terminate their contracts.
Supply Chain and IT Migration: The migration of customers to AWS and away from Microsoft Azure, while beneficial in the long term, could pose short-term operational challenges.
Revenue Growth: The company anticipates a significant increase in revenue from a regional bank client with a 3-year total contract value in the very high 7 digits, with revenue accelerating in years 2 and 3. Additionally, revenue from a global social media company is expected to grow to a low 6-figure number in Q4 2025 as their build-out continues.
Market Expansion: Intellicheck plans to launch digital e-commerce identity verification in Q1 2026. The company is also exploring growth opportunities in stadium concessions and cargo freight fraud markets, with ongoing rollouts and integrations.
Product Development: The company has introduced new products, including an enhanced OCR product, a new hub customer console, an updated portal product, a new desktop application, and a mobile SDK. These innovations aim to improve customer experience and expand market penetration.
Strategic Partnerships: Intellicheck has signed multiyear agreements with top banks, title insurance companies, and other clients, ensuring recurring revenue streams. The company is also working with a foreign auto manufacturer and its suppliers to expand its technology adoption.
Financial Projections: The company expects net income and adjusted EBITDA to remain positive for the year 2025. Approximately 24% of total revenue for fiscal year 2025 is anticipated to come from multiyear commitments with straight-line revenue recognition.
The selected topic was not discussed during the call.
The earnings call reflects strong financial performance with revenue growth, improved net income, and record EBITDA. The company is diversifying away from retail and focusing on high-margin verticals, with stable operating expenses and a strong cash position. The Q&A section indicates positive sentiment despite retail headwinds, with new business contributing to revenue and incremental EBITDA margins expected to remain stable. The company is also addressing fraud trends effectively. Overall, these factors suggest a positive outlook for the stock price over the next two weeks.
The earnings call reveals strong revenue growth, improved EBITDA, and positive cash flow, indicating financial health. The Q&A highlights potential growth in banking and new verticals, despite challenges in retail and technical issues with a social media client. The management's optimistic guidance and strategic focus on high-value sectors contribute to a positive outlook, likely leading to a stock price increase.
The earnings call reveals strong financial metrics, including a revenue increase and better-than-expected EPS. Despite a slight decline in gross margin, adjusted margins improved. The company maintained strong cash reserves and working capital. The Q&A highlighted significant growth in new verticals and a robust pipeline, offsetting concerns about retail exposure. The positive guidance for revenue growth in 2025 and improved EBITDA outlook further supports a positive sentiment. The lack of negative factors such as guidance cuts or new offerings suggests a positive stock price movement in the short term.
The earnings call presents mixed signals: positive revenue growth and strong cash reserves are offset by declining consumer confidence and competitive pressures. The slight increase in revenue and SaaS growth is promising, but the lack of a shareholder return plan and the decrease in gross profit margin are concerns. The Q&A highlighted potential growth in banking and auto sectors, but retail remains weak. Overall, the sentiment is neutral due to balanced positive and negative factors, with no strong catalysts for significant stock price movement.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
