Intellicheck, Inc.

Greetings and welcome to the IntelliCheck third quarter 2025 earnings call. At this time, all participants are in a listen-only mode. 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.

Thank you, operator. Good afternoon and thank you for joining us today for the IntelliCheck 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 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. 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 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, November 12th, 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'll begin today's call with Brian Lewis, IntelliCheck's Chief Executive Officer, then Adam Stragovitz, 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 Brian.

Thanks, Gar, and 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 one cent, and adjusted EBITDA that was a third quarter 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 three-year total contract value in the very high seven digits, with the first 12 months being low seven digits and accelerating in years two and three. 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 issue 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 entered into two-year agreements with our top title insurance company and expanded our relationship with the top 20 bank with a two-year agreement that, when combined, are now anticipate to generate six-digit annual recurring revenue streams. An important event in the third quarter 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. 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 environments. 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 have already seen as their build-out continues. We continue to believe that there is a 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. During the third quarter, 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. 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's 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 attractions from a foreign auto manufacturer building cars in the south. 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. 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 one stadium and one concessions provider. 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 ACV. 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. Banking and lending grew approximately 80 percent and represented approximately 50 percent of our quarterly revenue. Retail declined approximately 5 percent and represented approximately 30 percent of our quarterly revenue. Age-related grew approximately 15 percent and represented approximately 8 percent 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 multi-year 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. 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 and 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 this 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. 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. 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 in 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 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. 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 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 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 podcasts the marketing team introduced are generating interest with their informative look at key issues from call center fraud and hiring and employment fraud to the first person stories on identity theft. The same is true of our blogs. 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. My 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 the first quarter of 2025 alone. Synthetic identity fraud skyrocketed by an enormous 311% while deepfake-driven fraud soared by a whopping 1,100%. At the prominent Finnovate Fall 2025 conference, I was pleased to be a keynote speaker. My presentation on the hidden threat and 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 Money 2020, 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 a second with industry-leading accuracy generated a lot of interest. We also had a team at Money Live North America. 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 Robertson 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. Thank you, Brian.