Executive Summary

Record Q3 revenue of $6.014M (+28% YoY) with gross margin ~91%; GAAP net income turned positive to $0.29M ($0.01 diluted EPS), and Adjusted EBITDA improved to $0.631M from a $(0.167)M loss a year ago .
Versus S&P Global consensus, IDN delivered a revenue beat ($6.014M vs $5.484M est.) and a significant EBITDA beat ($0.426M actual vs $0.147M est.); Primary EPS consensus was $0.01 and SPGI shows Primary EPS actual of ~$0.024, while company-reported diluted EPS was $0.01 (methodology difference) *.
Mix shifted further toward banking/lending (~50% of revenue) with retail at ~30%; management highlighted strong traction with a large regional bank rollout (year 1 low-7 figures, total contract value very high-7 figures) and multi-year renewals at top banks .
Management reiterated no formal numerical guidance but expects FY25 GAAP net income to be slightly positive and Adjusted EBITDA positive; cash stood at $7.2M with deferred revenue up to $4.2M (cash flow visibility) .

What Went Well and What Went Wrong

What Went Well
- Banking expansion: regional bank rollout contributed materially; top issuer grew >60% YoY and purchased additional transaction “bucket” (low mid-7 figures) extending into spring 2026 .
- Profitability inflection: GAAP net income $0.29M and record Q3 Adjusted EBITDA $0.631M on flat OpEx YoY ($5.205M vs $5.195M) and ~91% gross margin .
- Product/recognition tailwinds: IDC MarketScape named IDN a Leader in financial services identity verification; new in-house OCR, desktop app, mobile SDK, and AWS migration completion support margin and sales velocity .
What Went Wrong
- Retail softness persisted: retail revenue mix ~30% and down low-single-digit YoY in Q3; management remains cautious on retail demand .
- Social media client timing: one platform’s buildout/ramp is taking longer; Q3 revenue was mid-5 figures with Q4 expected low-6 figures, but full operational volume not yet in place .
- Cash balance declined sequentially ($7.223M vs $8.573M in Q2) as accounts receivable and deferred revenue rose; management notes cash may be similar or slightly higher at FY-end due to upfront bucket arrangements .

Financial Results

GAAP and Non-GAAP Metrics

Metric	Q3 2024	Q2 2025	Q3 2025
Revenue ($USD)	$4,709,000	$5,123,000	$6,014,000
Gross Profit ($USD)	$4,285,000	$4,600,000	$5,443,000
Gross Margin %	91.0%	89.8%	90.5%
Operating Expenses ($USD)	$5,195,000	$4,898,000	$5,205,000
Net Income ($USD)	$(837,000)	$(251,000)	$290,000
Diluted EPS ($USD)	$(0.04)	$(0.01)	$0.01
Adjusted EBITDA ($USD)	$(167,000)	$75,000	$631,000
Adjusted Gross Margin %	91.5%	92.2%	92.8%

KPIs and Balance Sheet Highlights

KPI	Q3 2024	Q2 2025	Q3 2025
SaaS Revenue ($USD)	$4,661,000	$5,080,000	$5,868,000
SaaS % of Revenue	n/a	>99%	~98%
Deferred Revenue ($USD)	n/a	$3,038,000	$4,192,000
Cash & Equivalents ($USD)	n/a	$8,573,000	$7,223,000
Working Capital ($USD)	n/a	$7.1M	$8.2M

Vertical Mix (Management disclosure)

Vertical	Q2 2025 Mix	Q3 2025 Mix
Banking & Lending	~38%	~50%
Retail	~25%	~30%
Age-Related	~7%	~8%
Auto	~5%	n/a
Title	~2%	just over 2%

Results vs S&P Global Consensus

Metric (Q3 2025)	Consensus (S&P Global)*	Reported Actual	Surprise
Revenue ($USD)	$5,484,300*	$6,014,000	Beat (~$529,700)
Primary EPS ($USD)	$0.01*	$0.01 (diluted EPS)	In line (see note)
EBITDA ($USD)	$146,580*	$426,000*	Beat (~$279,420)

Note: S&P Global also shows Primary EPS actual ~0.0238, while the company reported diluted EPS of $0.01; differences reflect methodology/definitions (Primary vs diluted, normalization, and rounding). Values retrieved from S&P Global.*

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
GAAP Net Income	FY 2025	None provided	“Slightly positive” expected	Introduced
Adjusted EBITDA	FY 2025	None provided	Positive expected	Introduced
R&D Capitalization	FY 2025	Capitalization curtailed	No further capitalization expected in 2025	Maintained/clarified
Cash Balance Outlook	FY 2025	Peak in Q3 expected	Year-end cash same or slightly higher vs Q3	Updated
Revenue/Margins/OpEx specifics	FY/Q4	None provided	None provided	No formal guidance

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3 2025)	Trend
Banking expansion	Q2: Regional bank 3-yr deal; invoicing began in July; issuer on multi-year tiered mid-7 figure ACV	Regional bank rollout a key Q3 driver; top issuer +60% YoY, bought extra bucket (low mid-7 figures)	Accelerating
Retail softness	Q2: Retail down 20% YoY; mix ~25%	Retail ~30% mix; down ~5% YoY; management cautious	Stabilizing but weak
Social media client	Q2: Integration issues after initial ramp; solution work ongoing	Mid-5 figure Q3; low-6 figure Q4 expected; not full operational volume	Gradual progress, timing risk
Pricing per scan	Q2: New business price up; mix shift to higher-priced verticals	New business average price per scan +~14% YoY; continued pricing power	Positive
Platform/migration	Q2: ~95% to AWS; >$300k annual savings expected	Final large bank migrated; project effectively complete	Complete
Product innovation	Q2: Modernization toward AWS benefits	In-house OCR, new desktop app, mobile SDK, Hub Console enhancements	Expanding
Partnerships/channels	Q2: Signed core platform partner; $20B credit union going live Nov	First American Title expands with Intellicheck in AgentNet; 2-year deals in title and with top-20 bank	Building
Marketing/branding	Q2: Inbound up; podcasts/blogs; conference presence	IDC MarketScape Leader recognition; continued conference presence	Strengthening
Cash/working capital	Q2: Cash $8.6M; WC $7.1M	Cash $7.2M; WC $8.2M; upfront bucket cash drives timing	Mixed (timing), solid liquidity

Management Commentary

“We had an excellent third quarter… 28 percent increase in revenue… $1.1 million improvement in net income and $798,000 improvement in adjusted EBITDA versus the prior year.” — CEO Bryan Lewis .
“Gross profit as a percentage of revenues was 90.5%… adjusted gross margin… 92.8% in Q3 2025…” — CFO Adam Sragovicz .
“On a GAAP basis, we currently expect net income to be slightly positive for the year… adjusted EBITDA to be positive for the year as well.” — CFO Adam Sragovicz .
“An important event… Intellicheck was named a Leader in the IDC MarketScape Worldwide Identity Verification… 2025 Vendor Assessment.” — CEO Bryan Lewis .
Product updates: new in-house OCR, Hub Customer Console, updated Portal with WhatsApp, new desktop app, and mobile SDK; last large bank migrated to AWS .

Q&A Highlights

Retail outlook: Management sees continued softness; diversification away from retail has mitigated impact .
Pricing and mix: New business pricing up ~14% YoY; renewals seeing increases; banking/title/auto/background checks supporting ARPU .
Social media customer: Not full operational volume; Q3 mid-5 figure revenue, Q4 low-6 figure expected; joint workstreams to improve image quality and workflow, including OCR advances .
Margin durability: Incremental EBITDA margins strong; OpEx discipline expected to sustain margins as revenue scales, with targeted reinvestment in marketing .
Liquidity/capital allocation: Strong cash; focus on marketing, sales enablement, and AI/LLM-driven CX improvements; open to inorganic opportunities if compelling .

Estimates Context

Revenue: Beat S&P Global consensus ($6.014M vs $5.484M est.) driven by banking rollout and upsells; EBITDA also beat materially as leverage flowed through on flat OpEx *.
EPS: S&P “Primary EPS” consensus was $0.01; SPGI shows Primary EPS actual ~0.024 vs company-reported diluted EPS $0.01—indicative of methodology differences; we anchor reported EPS to company filings when citing GAAP EPS *.
Revisions implications: Given vertical mix shift toward higher-priced banking/title and continued pricing power, estimates for forward EBITDA margin may drift higher; retail headwinds temper top-line trajectory, but deferred revenue growth and bucket prepayments improve visibility .
Values retrieved from S&P Global.*

Key Takeaways for Investors

Revenue and EBITDA upside: Clear beat on revenue and EBITDA vs consensus, with profitability inflecting on sustained >90% gross margins and disciplined OpEx *.
Banking-led mix shift: Banking/lending now ~50% of mix with multi-year commitments, supporting revenue durability and pricing .
Product and platform readiness: Feature upgrades (OCR, desktop, SDK) and completed AWS migration reduce friction and cost, aiding sales velocity and margins .
Retail exposure manageable: Retail remains a headwind but smaller part of mix (~30%); diversification into title, auto, background checks continues .
Social media ramp is a real but timed risk: Near-term upside exists if integration and image quality solutions unlock larger volumes; timing remains uncertain .
Cash/visibility: $7.2M cash and rising deferred revenue provide liquidity and revenue visibility; management expects FY25 GAAP profitability and positive Adjusted EBITDA .
Trading lens: The narrative is shifting to durable growth with operating leverage; catalysts include continued banking rollout, social media ramp progress, and additional third-party validations/partnerships .

Appendix: Additional Data Points

Q3 SaaS revenue: $5.868M (+26% YoY) vs $4.661M in Q3’24 .
Deferred revenue: $4.192M at 9/30/25 vs $3.038M at 6/30/25 (sequential increase on prepayments) .
Cash & equivalents: $7.223M at 9/30/25; WC $8.2M .

Intellicheck, Inc. (IDN)·Q3 2025 Earnings Summary