Intellicheck — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue was $5.7 million for the quarter, a 5% decrease year-over-year and 3% decrease sequentially; SaaS revenue comprised substantially all total revenue.
• Net income was $0.5 million, an increase of $0.2 million year-over-year, marking the fifth consecutive quarter of profitability.
• Adjusted EBITDA was $0.9 million, an increase of $0.3 million year-over-year, marking the sixth consecutive positive quarter.
• Gross margin remained at 91% for both the third quarter of 2026 and 2025.
• Operating expenses were $4.9 million in the third quarter of 2026, down from $5.2 million in the year-ago period.
• Income from operations was $0.4 million, up from $0.2 million in the prior year period.
• Cash and cash equivalents ended the quarter at $13.2 million, the highest level since the end of 2021, with no debt outstanding.
• Cash from operations for the first nine months of 2026 was $3.3 million.
• Deferred revenue was $1.63 million as of September 30, 2026, compared to $1.66 million as of December 31, 2025.

Business Segments and Product Lines:

• Banking and lending remains the largest growing vertical in terms of total revenue.
• Momentum continued in emerging and adjacent verticals including cargo and freight, foreign auto manufacturers and their supplier networks, stadium and venue concessions, age-related and background-check verticals, and automotive dealer scanning volumes.
• The Company secured a channel partner deployment with one of the world's largest investment management companies, introducing technology into wealth management for the first time.
• New partnerships were established in automotive credit and freight logistics.

Management Commentary and Tone:

• CEO Bryan Lewis stated the Company delivered its fifth consecutive quarter of profitability and sixth consecutive quarter of positive Adjusted EBITDA, demonstrating the strength and durability of the business model.
• Management noted that almost every customer is expanding their commercial relationship with the Company.
• CFO Adam Sragovicz highlighted that cash from operations came in ahead of the previous quarter's anticipation and that the balance sheet provides flexibility to execute growth initiatives.
• Management emphasized that differentiated technology is increasingly valuable due to rising synthetic identity and deepfake-driven fraud.
• The Company plans to continue holding a tight line on costs while funding engineering and go-to-market investments for Desktop and channel partnerships.

Other Key Points:

• The Company processed identity transactions for almost half the adult population in the United States and Canada annually.
• The technology delivers 99.975% decisioning accuracy in under a second.
• Stock-based compensation for the quarter was $338,000, and $827,000 for the first nine months of 2026.
• The Company had no income tax provision for the quarter or the nine-month period.
• Weighted average diluted shares outstanding were 20,567,164 for the quarter ended September 30, 2026.
• Forward-looking statements in the release include expectations regarding future revenue, profitability, Adjusted EBITDA, cash flow, and the impact of AI on identity fraud.
• Risks identified include dependence on a limited number of customers, variability in transaction volumes, competition from providers with greater resources, and rapid evolution of AI.