Intellicheck, Inc.

Greetings and welcome to today's conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero or your telephone keypad. Please note that this conference is being recorded. I will now turn the conference over to Gar Jackson. Thank you. You may begin.

Thank you, operator. Good afternoon, and thank you for joining us today for the IntelliCheck fourth quarter and full year 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 are 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. These forward-looking statements are based on management's current expectations and beliefs about future events. As with 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 in from such changes as new information, subsequent events, or otherwise. Additional information concerning forward-looking statements is contained under the headings of safe harbor statement and risk factors listed from time to time in the company's filings of the Securities and Exchange Commission. Statements made on today's call are as of today, March 19, 2026. Management will use the financial term adjusted even 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 this term. We'll begin today's call with Brian Lewis, IntelliCheck's Chief Executive Officer, and then Adam Schragowitz, IntelliCheck's Chief Financial Officer. We'll discuss the Q4 and full year 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.

Thank you, Gar, and good afternoon, everyone. I appreciate you all joining us today to review IntelliCheck's fourth quarter and full year 2025 results. I've been with IntelliCheck for about eight years now, and this call today has me the most excited I have been since I joined the company. We've come a long way over that time. To reach the milestone of annual profitability and to be well on our way to being a Rule of 40 SaaS company are significant milestone achievements. We'll talk about more of this in a few minutes. First, I'll share a summary of the quarter, then spend some time discussing how we think about growth, our key verticals, and what we believe to be the pivot point to profitability in our operating model. Then I'll turn the call over to Adam for a deeper review of the financials. For the fourth quarter of 2025, total revenue grew 12% to a record $6.6 million, And for the full year, we go 13% and finish the year at $22.7 million, another company record. The investments we made transitioning over to AWS are working on a number of fronts. Gross margin for this quarter increased to 91.4% compared to 91.1% in Q4 of last year, underscoring the continued strength and leverage of our software-driven SaaS model. The AWS platform is also much more versatile and provides better reporting metrics for both us and our clients. I am very excited to report that we achieved annual operating profitability for the first time since becoming a public company. We generated cash during the quarter and ended the year with $9.6 million, a clean cap table, and a strong debt-free balance sheet. Since I came on board, I committed to you that we would remain laser-focused on revenue growth and delivering value for our shareholders and stakeholders alike. With net income of $1.3 million for the year and an EPS of $0.06, I am very pleased we have succeeded in delivering on this commitment. We also set a goal to be adjusted EBITDA positive while still investing in the business. We more than achieved this objective with three consecutive quarters of adjusted EBITDA positive results for the year. Adjusted EBITDA in Q4 of 2025 was a record $1.9 million, and we finished the year at $2.6 million, another record. With the realization of this goal, we demonstrated with consistency the operating leverage inherent in the business model and profitability at these revenue levels. I am proud of the IntelliCheck team for the hard work and dedication that allowed us to succeed. At the same time, I want to make it clear that our commitment doesn't end with these successes. We're going to continue our efforts to create new opportunities for growth and profitability as we build on our relationships with our clients and expand our presence in an increasing number of market verticals. Our contract renewals over the past two years have been very successful. Senator Bauer is doing a fantastic job working with our partners to secure renewals, along with an expansion of those partnerships use cases. A great example of this is the renewal and expansion of our partnership with a leading national U.S. bank that is a top three client. They are using IntelliCheck's innovative technology to facilitate customer onboarding, account name verification, and account modifications. We anticipate the year-over-year increase in revenue from this client to be approximately 15%. We exceeded those expectations and grew by approximately 33% when comparing 2024 to 2025. This growth is another testament that our product is effectively stopping fraud and is very appropriate for multiple use cases within the banking environment. More recently, another top financial client that is a recognized preeminent regional bank signed a three-year agreement. It, too, is expanding its use of intelligence technology to include teller workstation transactions in their 1,900 branches. This is an area where we continue to see incremental interest. This client went live with us with this new use case in Q3 of 2025, so the revenue will be up significantly in 2026 with a full-year run rate. Additionally, this client is looking at increasing the use cases beyond what they are currently doing. The total contract value over three years is currently in the high seven-figure range. This has made this client a top revenue generator for the company and another significant growth driver. Another area of growth that I believe is often overlooked is via our clients' active M&A and branch expansion growth. Three of our largely regional banks are expanding their branch presence, particularly in the southeast region of the country. These are areas that are seeing significant population migrations. More branches lead to more transactions and quick and easy implementations for our clients. We are very pleased that they continue to give us positive feedback on our product offerings. This work to drive record revenues and profitability hasn't come easy. Sandra's efforts have had a significant impact on IntelliCheck. and as a result, she was recently promoted into the newly created role of Chief Commercial Officer. In addition to customer success, Sandra will now have sales reporting to her as well. Along with this new alignment, we are continuing to refine our sales team to meet the changes we are seeing in the rapidly evolving marketplace. Our channel partner program remains a strong We believe it will drive significant growth across a number of verticals. We are making great progress with providers of 30-party services. Our recent partnership with Alloy is an example of how our program is growing with great partners. They have incorporated our technology into their banking-focused software platform. As a result of this partnership, any of their customers can now utilize us. For those not on the Alloy platform who depend on third-party providers, we have a technology solution that is getting serious market interest. With the rollout of our enriched desktop application, any size organization can immediately implement us with no system integration needed. You may remember that we shared with you that many industry businesses rely on core provider platforms. This typically results in long deployment delays because these providers have lengthy development queues. We believe that we are ideally suited to serve these businesses, and we know they are solving a serious pain point. Partnerships like this allow us to scale distribution more efficiently, reach new markets faster, and remain true to our capital light operating model. Sandra will also be overseeing the growth of these important relationships in her new role. We are very excited about the opportunities they create to stop fraud on a broader level. Throughout the year, we scaled up our marketing and public relations efforts to build awareness of IntelliCheck and our state-of-the-art technology solutions. We participated in key industry conferences, including Finnovate Fall 2025. My keynote presentation was, hidden threat, and identity verification, why the first step is everything. I also spoke about the key role of the barcode. It provided a great platform to directly speak to misconceptions such as why facial recognition alone is not sufficient as an authentication strategy. Finnovate Fall 2025 is a highly regarded conference hosted by Finnovate. Finnovate is a leading research and events firm focused on innovation in finance and banking technology. It consistently attracts large, high-impact audiences, including senior financial and banking executives and investors. At the Association of Certified Anti-Money Laundering Specials Conference, I presented an innovative session on the innovation blind spot, why identity starts with real verification. Here I spoke about why every system is only as strong as its entry point. It also gave me the opportunity to explain why the smartest fight against fraud starts before it begins. Technology with real-time ID verification defeats bad actors at the very first step. Drawing on the latest fraud trends, I discussed rapidly evolving threats, reviewed synthetic identity fraud, and deep fake-driven schemes that are undermining traditional identity verification methods. This was an important event for us because it is recognized as the premier global gathering for professionals fighting financial crime. The conference brings together thousands of compliance officers, regulators, law enforcement officials, and industry leaders to explore the latest strategies and technologies that are shaping the future of anti-financial crime. We were also very active in building our efforts related to investor relations. Programs we participated in included the Sedoti Microcap Virtual Conference, the Lautenberg Common Technology Expo 2025, DA Davidson's Technology Conference, the Craig Hallam Alpha Select Conference, and the Planet Microcap Conference. These interactions are very valuable because they allow us to communicate our strategic goals and assure that you, our shareholders, and the investment community are kept current as we grow. There is another important sign of the growing recognition we are achieving as a leader in providing ID verification in the financial services market. I hope that all of you have now seen the IDC Marketscape report, on worldwide identity verification in financial services. Their 2025 vendor assessment named IntelliCheck a leader. As I said in our press release, and I believe it's worth noting again, we believe this recognition affirms that IntelliCheck is not just one in the pack. We are a leader with the state-of-the-art technology solutions that secure trust while preserving a seamless customer experience. Although banking and lending continue to be our primary verticals and growth drivers at this time, we are continuing to focus on new verticals we've been targeting. Many of these new verticals are dependent on interest rates to drive volume, particularly in the automotive and title insurance verticals. While there is recent volatility in interest rates, waning of consumer confidence and fear of inflation increasingly concerning consumers, we believe we are well positioned in these markets when the interest rate environment changes. I'm excited to see what will happen when rates go down. In the meantime, we are succeeding in the banking, which is not so dependent on interest rates or consumer confidence. We all need to bank. As a reminder, over the past several years, we've been very deliberate about diversifying away from lower-value transactional use cases, such as age-verification-focused transactions. We've been targeting verticals where identity theft is expensive, pricing for transactions is stronger, and customer relationships tend to be stickier, and grow with additional use cases while generating significantly less churn. Among the targeted verticals, in addition to banking, are title insurance, automotive, specialty finance, background screening, logistics, and digital account security. Driven in part by these new categories and contract renewals at higher rates, our average price per transaction increased 25% in Q4 versus the previous first fourth quarter. This further illustrates that we continue to have pricing power for our unique product, a product that delivers a decision our customers can rely on for their business processes greater than 99% of the time in under a second. And typically, our software work with the existing hardware a prospect has for in-person validation and on any person's phone or device for digital validation. With this in mind, I want to reiterate the benefits of our operating model. We continue to operate with very high gross margins and limited incremental costs to support additional revenue growth. Our platform today is capable of handling significantly more activity than it does currently, which provides structural operating leverage as revenue scales. While we don't provide formal revenue or earnings guidance, our objective remains straightforward, to build a durable, differentiated, high-margin business by expanding with our existing customers and onboarding new customers, improving our revenue mix, and maintaining disciplined execution. I also want to respond to those of you who've been asking about AI. AI can mimic an ID. AI is no match for a barcode. AI can figure out how an ID is supposed to look, making visual inspection and tap learning outdated and ineffectual. We do not rely on AI to authenticate an ID. We use AI to make our clients' customers' journey We use intelligence to see what our clients' customers are doing. If they do it wrong, we correct it. Our clients tell us we help them onboard good customers faster. At the same time, a byproduct of speedy onboarding is we stop fraud. One simple process, two great solutions. With that overview, I will now turn the call over to Adam to walk you through the financials in more detail.