Greetings, and welcome to the Intellicheck Third Quarter 2025 Earnings Call. This conference is being recorded. It is now my pleasure to introduce your host, Gar Jackson from 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 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 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 12, 2025. Management 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 will begin today's call with Bryan Lewis, Intellicheck's Chief Executive Officer; then Adam Sragovicz, 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 1 hour, and I will now turn the call over to Bryan.

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 to a third quarter record of $6 million, with a gross margin of 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 $0.01 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 3-year total contract value in the very high 7 digits, with the first 12 months being low 7 digits and accelerating in years 2 and 3. The 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 6-figure revenue number in Q3. Of note is our largest bank and credit card issuer that grew over 60% in Q3 versus the prior year and bought an additional bucket of transactions for a low mid-7-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 3 banks signed a 3-year renewal with an annual contract value also in the low mid-7-figure amount. We also entered into 2-year agreements with our top title insurance company and expanded our relationship with a top 20 bank with a 2-year agreement that when combined are now anticipated to generate 6-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 and 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 environment. We continue to make progress with a 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-5-figure number. And for Q4, we anticipate a low 6-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 6-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. The 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 is significant opportunity in this area. When people typically think about background checks, employment screening, apartments, auto rentals, etc., come to mind. We are approaching this vertical from an additional angle, supplier and vendor screening. During the quarter, we saw additional traction 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 a 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 concessions provider. We are also exploring additional opportunities in the area of cargo freight fraud. We are continuing to move forward with a 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 6-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 mix, as I spoke of last quarter, this is how we stand. Banking and lending grew approximately 80% and represented approximately 50% of our quarterly revenue. Retail declined approximately 5% and represented approximately 30% of our quarterly revenue. Age-related grew approximately 15% and represented approximately 8% 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 the strategic decision to move this development in-house instead of continuing through a third-party provider to eventually reduce cost. 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. The 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 and 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 tie 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 that 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, 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 those 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 deep fake-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 deep fake-driven fraud soared by a whopping 1,100%. At the prominent FinnovateFall 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 Money20/20, 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 MoneyLIVE 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, Bryan. In addition to Gar's forward-looking statements, please note we use rounding for convenience during this call. For more detailed and authoritative financial information, please refer to our press release and to our quarterly report filed at the close of the market today on Form 10-Q. We are excited to tell you more about our record third quarter of 2025. As Bryan mentioned, revenues were 28% higher versus the same period in the prior year. We also saw strong pricing, up 14% for new business versus the third quarter of 2024. You can see the strategy paying off of upselling existing clients and pursuing verticals such as title insurance companies, auto dealers, and background check firms that generate higher revenues per scan. Total revenue for the third quarter of 2025 increased by 28% or by $1.3 million to a third quarter record of $6 million compared to $4.7 million in the same period of 2024. Our SaaS revenue for the third quarter of 2025 was up 26% to $5.9 million from $4.7 million during the same period of 2024 and represented about 98% of our third quarter revenue. Gross profit as a percentage of revenues was 90.5% for the third quarter, which included $137,000 of amortization expense related to the software development projects we have talked with you about in the past. This gross profit compares to 91% that included only $24,000 of amortization expense in the third quarter of 2024. Our adjusted gross margin, which you may remember as a new metric we introduced in the first quarter of 2025, improved to 92.8% in Q3 of 2025 compared to 91.5% in Q3 of 2024. Our margin is also gradually improving as we migrate customers away from Microsoft Azure, and we use that service less and less. We held to our estimates made earlier in the year and had no capitalization of software development expenses this quarter and don't expect to see any additional capitalization this year. Q3 of 2024 saw $443,000 of capitalization expenses. That was driven by the software that we developed for deployment onto AWS that is now fully in production. Operating expenses, which consist of selling, general and administrative, marketing, and research and development expenses were essentially flat year-over-year and increased only $10,000 to $5.21 million for the third quarter of 2025 compared to $5.2 million for the same period of 2024. On an accounting basis, R&D expenses were $214,000 higher in Q3 of 2025. But as I mentioned, we capitalized $443,000 of R&D expenses in Q3 of 2024. Since we had no capitalization of software development this quarter, we saw R&D costs hit the P&L in their entirety. Driven by our 28% revenue growth and operating expenses that remained relatively flat, our net income improved by $1.1 million to gain $290,000 for the quarter on a GAAP basis. We currently expect net income to be slightly positive for the year. Our earnings improved from a loss of $0.04 per share last year to a gain of 1% this year. Adjusted EBITDA also improved nicely by $798,000 to a positive $631,000 for the third quarter versus negative $160,000 in the third quarter of 2024. We currently expect adjusted EBITDA to be positive for the year as well. The weighted average diluted common shares were 20.8 million for the third quarter of 2025 compared to 19.5 million for the same period of 2024. As to the company's liquidity and capital resources at September 30, 2025, the company had cash and cash equivalents of $7.2 million. We had expected the peak in 2025 cash to be in Q3 of 2025, but we may see the same or even slightly higher cash balances at the end of 2025. We see this dynamic due to those customers paying us upfront in bucket-type arrangements where the cash effect is immediate, but the revenue effect will be spread out over time. At quarter end, there was working capital, which is defined as current assets minus current liabilities of $8.2 million, total assets of $25.3 million, and stockholders' equity of $18.9 million. We have mentioned a $2 million credit facility with Citibank in the past, which had no activity or balances during the quarter. We are gradually winding that commercial banking relationship, most likely exiting it entirely by the end of 2025. When we reflect on 2025 so far from the financial point of view, we see the strategies of upselling to current clients and diversification into new industries bearing fruit. As CSM and sales efforts encourage clients and prospective new clients to subscribe to our offerings in annual buckets, we are especially pleased with our strong cash position in the current environment. We look forward to sharing our 2025 full-year results with you on our call in March of 2026. And I'll now turn the call over to the operator who will take your questions.

Our first question comes from Mike Grondahl with Northland Securities.

Congratulations on 28% year-over-year growth. Bryan, are the retail headwinds largely behind us? Retail shrink or decline was 5% year-over-year for revenues. Can you provide an update on what you're observing and your expectations moving forward?

Yes, I want to mention two things. First, I'm pleased that we continue to diversify away from retail, as that's where much of our growth is coming from. Throughout the year, I've observed a decline in retail. I'm looking at the numbers daily, and I can't say if people are spending less due to the shutdown or other factors. Christmas hasn’t arrived yet, which can be indicative of how the quarter will turn out, but it’s still early. The overall sluggishness in retail this year might mean that some customers who typically engage with us in certain ways may have to pay us for any shortfall or extras at the end of the quarter. We're monitoring that closely. Additionally, from recent news, BofA mentioned that they expect retail to drop by 5%. The situation varies significantly across different industries, but it's not uniformly negative. This is why we've made a concerted effort to move away from relying solely on retail as our primary source of revenue.

The last 3 to 4 years have posed a real challenge, but now it's down to a 30% mix and it’s only a 5% impact. You've effectively managed that situation, which is great. You mentioned that pricing on new business increased by 14%. How much of your $6 million in revenue is classified as new business? Additionally, could you provide an estimate of the overall pricing trends?

Honestly, I would be making a wild guess to say what percentage of it. If I think about some of the drivers, I don’t know, Adam, if you have a guess on it, but it’s not more than 10% probably. Title is about 2%, automotive is around 5%, and then some of our new banking customers coming in there. So that might make it 7% to 10%, with most of that being new business. And then I apologize, I forgot the second question, Mike.

Just if you had to look at overall pricing, total pricing year-over-year, what kind of tailwind is that?

I'd say overall pricing, when we go into renewals, we're raising prices still. So that really hasn't been an issue. The more significant increases, obviously, are with new clients because it's sort of like we know what we're worth now. When I first started, we were like we needed the business, so we were going to make deals. Now we know that we don't have to do that anymore.

Our next question comes from Jeff Van Rhee with Craig-Hallum Capital Group.

This is Daniel Hibshman on for Jeff Van Rhee. Just on the SaaS revenue sequential pickup this quarter, real strong, like you said, the regional bank being a significant driver there. Is there anything onetime or seasonal as well to call out about the number for this quarter on SaaS? Or is that a pretty good baseline to think about?

There’s nothing unusual to report. Overall revenues included approximately $140,000 to $150,000 in professional services fees, which we plan to continue in the future to prevent delays in implementations. The only notable aspect is the sequential growth from a few smaller new customers, particularly the regional bank that's beginning to contribute significantly. Adam, do you have anything to add?

No, I think it's a great point that the non-SaaS revenue from the implementation of professional services serves two purposes, as Bryan mentioned. It accelerates the implementation and acts as a competitive differentiator for Intellicheck. We expect to see an increase in that non-SaaS revenue with larger implementations in financial institutions.

Okay. And then on the uplift side from the regional bank, is that a full quarter of impact we're getting here? Or how should we think about that?

Yes, that was a full quarter of impact.

Okay. I just need clarification on the social media customer regarding their volume ramp-up. They're starting with five-figure volumes this quarter and may reach six-figure volumes soon. Last quarter, I noted they had a coding change to implement on their end for data processing. Can you clarify their current status? If they're increasing volumes, does that mean they're funding developmental work, or are they actually processing operational volumes that will continue to increase into Q4?

They are not operating at full capacity, but they are adjusting and gradually increasing their output. A significant portion of what they previously sent was not processable due to poor image quality. We have met with them in person, and they understand the importance of getting identity verification right. They are aware of three areas on the platform where fraud is occurring and are determined to address those issues. Working with large organizations can be rewarding once completed, but it requires a lot of effort to reach that point. Priorities can shift, but they have indicated that this is a high priority for their development in the first quarter. We remain hopeful that they will address it. We are collaborating with them, and on our end, our AI teams are focused on improving their image processing to enhance results. For example, we are exploring ways to enhance blurry or low-quality images, which could be beneficial. We are working closely together to find the best solution to this challenge.

Our next question comes from Rudy Kessinger with D.A. Davidson.

This is Andres Miranda for Rudy. I have a couple of questions and congratulations on a great quarter. If our calculations are correct, incremental EBITDA margins were 62% year-over-year, which is a fantastic number. Could you discuss the factors driving this? Additionally, how should we view margins going forward? Are we looking at a new baseline or normal with 10% EBITDA margins?

I'm going to throw that over to Adam.

I believe there are several factors to consider in response to your question. First, regarding our adjusted gross profit or gross margin, we are comfortable with that figure being in the very low 90%. As revenue increases, we expect to maintain that margin even with higher revenue levels. In terms of adjusted EBITDA, our operating costs have remained surprisingly stable as we’ve grown. To be honest, in 2024, we still faced negative EBITDA in one quarter, but we've since achieved positive EBITDA in both this quarter and the previous one. It's important to note that certain fixed costs will contribute more as revenue grows. The larger strategic question, which I can't fully address, relates to how the company will invest in marketing and reinvest in its growth moving forward. While I can’t predict exactly how that will unfold, I feel positive about our margins remaining strong, and we currently have no plans to significantly increase our operating expenses. If we are fortunate enough to grow our revenue, you can expect to see further improvements in these areas.

Yes. I want to emphasize that we don't need a large number of people to operate the company. We don't require a significant increase in development staff. If we gain more customers, I may need to hire one or two customer success representatives and some support staff. As always, we will be careful with our spending. However, it's clear that there is a strong return on investment in marketing, so we will allocate some of our revenue towards that. My primary goal is to ensure that we are also saving cash.

Sounds good. And maybe following up with marketing and sales productivity. Tim Poulin joined maybe a couple of quarters ago. Could you talk a little bit about how is that progress going with the sales organization and what new initiatives are driving new business?

I would say that several factors are contributing to new business, particularly marketing and our outbound sales efforts, which are attracting some very promising partners. However, securing larger clients tends to take more time. Overall, the combination of marketing, sales, and customer success has significantly contributed to the revenue we are currently experiencing.

Our next question comes from Scott Buck with H.C. Wainwright.

Just one for me today. Bryan, I'm curious, as the business is branched out into these new verticals, are you coming across any new tricks that fraudsters are using or anything that might identify a blind spot in the current product offering you have?

I wouldn't say there are new tricks, just things I've learned, especially from the social media company. They are trying to encourage users to engage more on mobile instead of laptops because they find it easier for people to commit fraud on laptops. Fortunately, our tools can prompt users to switch to their mobile devices. There aren't any new tricks. The major issues we've noticed include a significant rise in deep fakes. However, we can thwart deep fakes because, regardless of their quality, a fake license won't hold up. The emerging threats we're observing include synthetic identity theft, which has reportedly increased by about 311%, while deep fakes have surged by around 1,100% year-over-year. Fraudsters may think they can bypass those who can't detect fake licenses, but they should know we will catch them because those licenses won’t fool us.

Right. All right. That's helpful. I guess I'll sneak one more in. On cash, how are you kind of prioritizing what you're doing with the cash balance and as you start to stack more what makes the most sense here? Is it just continuing to reinvest in R&D and in the business? Or are there some inorganic opportunities that might make some sense?

In terms of inorganic opportunities, if something presented itself that we felt strongly about pursuing, we would definitely consider it. However, our current focus is on executing a plan that is proving effective. This involves ensuring we are making smart decisions in marketing and utilizing advanced tools like machine learning, AI, and similar technologies to significantly enhance the customer experience. We are also dedicated to providing our sales and customer experience teams with the necessary resources to drive revenue growth. Our approach doesn’t require a large increase in headcount, and with the right marketing personnel, we can achieve a lot without incurring major expenses.

We've reached the end of our question-and-answer session. I would now like to turn the floor back over to Bryan Lewis for closing comments.

Thank you, operator. So last quarter, I closed the call with a commitment to continue our efforts to expand our market penetration in both new and existing markets and with existing customers. And I believe this quarter demonstrates that we've done just that. I'm particularly pleased that we've done this in light of some economic headwinds and developments that normally would have really hurt us, but I think the diversification has helped. So we will continue to execute on this plan. We're going to build on this success, manage our business resources smartly, but remain aggressive to continue to grow with both existing and new clients. So I thank you all for joining, and have a great evening.

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.