Executive Summary

Record Q2 revenue of $5.123M (+10% y/y) with SaaS at $5.080M (+10% y/y); gross margin 89.8% and Adjusted EBITDA turned positive at $0.075M, while GAAP EPS was ($0.01) .
Revenue modestly beat Wall Street consensus ($5.123M vs $5.008M estimate), while EPS missed GAAP vs consensus (($0.01) vs ($0.005) estimate); Q1 also beat revenue and missed EPS vs consensus (context in Estimates section). Values retrieved from S&P Global.
Mix shift continues: banking/lending ~38% of Q2 revenue, retail ~25% (retail volumes down y/y), with ongoing expansion in title insurance, auto, notary, and background checks; AWS migration ~95% complete with >$300K expected annual savings . Retail down y/y was more than offset by strong banking growth; management highlighted multi‑year expansions at major financials and a new three‑year regional bank contract with invoicing that began in July (impacting Q3) .
Key catalysts: (1) Regional bank contract step-up active for full Q3 ; (2) social media client fix/embedding scan tech could unlock large volume ramp once integration issue is resolved ; (3) AWS savings and channel partnerships/credit union platform access underpin margin and pipeline execution .

What Went Well and What Went Wrong

What Went Well
- Multi‑year upsells/renewals with marquee financials: large regional bank signed a three‑year deal (year one “low seven figures,” ramps in years 2–3; invoicing began July), and a large bank/card issuer moved to a new three‑year tiered contract pacing mid‑seven‑figure ACV .
- Pricing power and vertical diversification improved resilience: continued focus on higher price-per-scan verticals (title insurance, auto, notary, background checks); CFO noted strong pricing and mix benefits .
- Infrastructure and cost efficiency: ~95% of clients migrated to AWS with expected savings >$300K annually; migration also improves onboarding, data feeds, and platform agility .
What Went Wrong
- Social media client integration issue: a code change on the client side caused failure to process “nearly all” documents; engineering teams are working to embed Intellicheck scanning earlier in the workflow to restore volumes .
- Retail softness persisted: retail volumes down 2% q/q and ~20% y/y in Q2; banking growth offset, but retail remains a headwind .
- GAAP profitability still negative: net loss of ($0.251M) and diluted EPS ($0.01), though adjusted EBITDA turned positive; R&D capitalization largely complete, implying more R&D expense will hit P&L beginning Q3 .

Financial Results

Metric	Q4 2024	Q1 2025	Q2 2025
Total Revenue ($M)	$5.936	$4.894	$5.123
SaaS Revenue ($M)	$5.913	$4.868	$5.080
Gross Margin (%)	91.1%	89.7%	89.8%
Adjusted Gross Margin (%)	N/A	91.8%	92.2%
Operating Expenses ($M)	$4.928	$4.740	$4.898
Net Income (Loss) ($M)	$0.488	($0.318)	($0.251)
Diluted EPS (GAAP)	$0.03	($0.02)	($0.01)
Adjusted EBITDA ($M)	$0.860	($0.017)	$0.075

KPIs and Balance Sheet | KPI | Q4 2024 | Q1 2025 | Q2 2025 | |---|---|---|---| | Cash & Equivalents ($M) | $4.666 | $5.148 | $8.573 | | Accounts Receivable ($M) | $4.675 | $7.506 | $2.676 | | Deferred Revenue – current ($M) | $1.001 | $4.518 | $3.038 | | Stockholders’ Equity ($M) | $17.747 | $17.608 | $18.005 |
Mix/Verticals (management disclosures; approximate) | Vertical Mix | Q1 2025 | Q2 2025 | |---|---|---| | Banking & Lending | “About equal” to retail in Q1 | ~38% | | Retail | “About equal” to banking; retail rev down 26% y/y in Q1 | ~25%; retail rev down ~20% y/y | | Age‑Restricted | ~8% | ~7% | | Auto | ~8% | ~5% (approx.; management disclosure) | | Title Insurance | Not quantified | ~2% |

Notes: Adjusted Gross Margin excludes amortization tied to software development; Adjusted EBITDA excludes interest/other, taxes, D&A, stock‑based compensation, and certain non‑recurring items .

Guidance Changes

Intellicheck does not provide formal revenue/EPS guidance; management gave qualitative updates and cost/operational outlook.

Metric	Period	Previous Guidance	Current Guidance/Commentary	Change
Cash trend	FY 2025	Q1 commentary: expected higher cash in Q2 and to end year above Q1	CFO reiterated cash strength; expects to finish year higher than Q1; solid liquidity; S‑3 shelf to maintain flexibility (no current plan to sell)	Maintain positive cash trajectory
R&D capitalization	2H 2025	Q1: capitalizing modest AWS migration costs through mid‑2025	Beginning Q3, R&D costs to hit P&L in full for current offerings (little/no further capitalization)	Transition to expensing
AWS migration savings	Run-rate	N/A	~95% migrated; expected savings >$300K annually; benefits include faster onboarding and richer data feeds	New savings disclosed
Large regional bank contract	Q3 2025	Terms agreed in Q1; rollout expected around Q3	Integration completed; invoicing began July; step‑up present for full Q3	Activated; revenue step-up in Q3
Social media client	2H 2025	Anticipated rollout; high potential volumes	Client code change disrupted document processing; teams working on embedding Intellicheck scanning; timing TBD	Delay until integration fix

Earnings Call Themes & Trends

Topic	Q4 2024 (Q-2)	Q1 2025 (Q-1)	Q2 2025 (Current)	Trend
Vertical diversification	Emphasis on moving beyond retail; record Q4 revenue	Fast growth in banking, title, auto, email security, background checks; retail softness	Banking ~38%; retail ~25%; continued expansion into title/auto/notary/background checks	Positive mix shift away from retail
Pricing power	Not highlighted	New business pricing up 9% vs Q4	Continued strong pricing/mix; focus on higher price per scan verticals	Improving
AWS migration & cost	Not detailed	Migration underway; expected cloud savings	~95% migrated; >$300K annual savings; improved onboarding/data feeds	Executing; cost tailwind
Large financials contracts	Strong Q4	Mid‑Atlantic/other renewals; multi‑year discussions	Three‑year regional bank (invoicing Jul); three‑year tiered contract at large bank/card issuer	Step-ups adding predictability
Retail/macro	Record Q4 despite retail contraction	Retail rev down 26% y/y	Retail down ~20% y/y; banking offset	Retail headwind persists
Social media client	N/A	Anticipated ramp; volumes could be volatile	Integration issue halted most docs; working on embedding scan tech	Near‑term pause; medium‑term upside
Channels/resellers	N/A	Building reseller strategy; background checks via partners (e.g., Accio)	Dedicated channel manager; credit union core platform live by Nov and first $20B CU slated	Scaling indirect GTM

Management Commentary

“We are particularly excited by the signing of multiple multiyear agreements with our most prominent financial services clients.”
“We completed the extensive contract negotiations with a large regional bank… They began their rollout, and we began invoicing that bank in July.”
“We expect our savings to be in excess of $300,000 annually [from AWS migration]… also designed to make it easier… to onboard new customers faster and more easily.”
On social media client: “This client has recently changed some code… we are currently unable to process nearly all of the documents… we believe the most effective solution is to embed our scanning technology as the first step in their workflow.”
“Gross profit as a percentage of revenues was 89.8% for the quarter… our adjusted gross margin… improved to 92.2% in 2025 compared to 91% in 2024.”

Q&A Highlights

Regional bank contract: invoicing began in July; revenue step-up should be present for all of Q3 .
Retail volumes: down 2% q/q and ~20% y/y; banking up 12% q/q and ~85% y/y, offsetting retail softness .
Social media client: significant potential; current processing break due to client-side code change; working to embed Intellicheck scanning to address image quality/latency; timing uncertain but engagement at senior levels .
Channels/credit unions: signed with a core banking platform; go‑live in November with a $20B credit union; pipeline includes other CUs on that platform .
Background checks: seen as a promising growth vertical; reseller‑led approach to reach fragmented demand .

Estimates Context

Metric	Q4 2024 Estimate*	Q4 2024 Actual	Q1 2025 Estimate*	Q1 2025 Actual	Q2 2025 Estimate*	Q2 2025 Actual
Revenue ($)	5,033,470*	5,936,000	4,783,500*	4,894,000	5,007,680*	5,123,000
Primary EPS ($)	0.000*	0.03	-0.015*	-0.02	-0.005*	-0.01

Values retrieved from S&P Global.

Q2 2025: Revenue beat vs consensus; GAAP EPS missed vs consensus*.
Prior quarters: Q4 2024 revenue and EPS beat; Q1 2025 revenue beat and EPS miss vs consensus*.

Key Takeaways for Investors

Banking‑led growth and multi‑year contract step‑ups are offsetting persistent retail headwinds; Q3 should reflect the regional bank revenue step‑up that started in July .
Operating leverage is improving: Adjusted EBITDA turned positive; AWS migration nearing completion should drive >$300K annual savings and faster onboarding .
Near‑term watch item: resolution of social media client integration; a fix and embedded scanning could unlock substantial volume; timing remains uncertain .
Mix shift to higher price‑per‑scan verticals (title, auto, background checks) and channel partnerships (core banking/credit unions) supports durable growth and monetization .
Liquidity solid with $8.6M cash and no revolver usage; S‑3 shelf is housekeeping, not an immediate capital raise plan per CFO .
Consensus context: revenue beats and EPS near breakeven underscore the margin of execution; as R&D capitalization rolls off in Q3, investors should expect more expense flowing through the P&L before AWS and revenue scale benefits fully accrue .
Trading set‑up: Q3 print is positioned for sequential growth on the banking step‑up; any positive update on the social media client and continued contract momentum with financials/credit unions are likely stock catalysts .

Additional Context: Other Q2‑Relevant Press Releases

Ping Identity DaVinci integration adds a distribution channel and simplifies orchestration for enterprise identity workflows, potentially aiding pipeline and partner-led adoption .

Intellicheck, Inc. (IDN)·Q2 2025 Earnings Summary