Greetings. Welcome to today's conference call. [Operator Instructions] 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 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 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 with 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 EBITDA in 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 will begin today's call with Bryan Lewis, Intellicheck's Chief Executive Officer; and then Adam Sragovicz, Intellicheck's Chief Financial Officer, who will 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 1 hour, and I will now turn the call over to Bryan.

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 8 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 grew 13% and finished 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…

Thank you, Bryan. 2025 was a transformational year for Intellicheck, both financially and operationally. The initiatives we have been discussing with you over the past several quarters are now delivering meaningful results. As Bryan mentioned, our fourth quarter revenues were 12% higher versus the prior year. And for the full year, we grew revenue 13% to a record $22.7 million. We also achieved a milestone that I'm particularly proud of, our first full year of GAAP profitability from operations with net income of $1.3 million compared to a GAAP net loss of $918,000 in 2024. Our adjusted EBITDA for the full year was $2.6 million, nearly 5x the $520,000 we reported in 2024. This reflects the operating leverage we have been building in this business and the discipline we have maintained around expenses. We are also pleased to see the continued growth of SaaS revenue, which represented 99% of total revenue in 2025. New business pricing continues to hold firm, and we believe the demand environment remains strong, particularly in financial services and retail, where identity fraud continues to escalate. Our recently published North America identity verification threat report based on nearly 100 million verification transactions in 2025, underscores the critical nature of the problem we solve and the scale of our platform. Starting with quarterly results. Revenue for the fourth quarter of 2025 increased 12% to a record $6,635,000 compared to $5,936,000 in the same period of 2024. Our SaaS revenue for the fourth quarter of 2025 grew 12% to $6,620,000 from $5,913,000 during the same period of 2024 and represented over 99% of our fourth quarter revenue. Gross profit as a percentage of revenues was 91.4% for the fourth quarter of 2025 compared to 91.1% for the same period of 2024. On an adjusted basis, excluding noncash amortization…

[Operator Instructions] And our first question comes from the line of Mike Grondahl with Northland Securities.

Congratulations on another strong quarter. On the third quarter call, you gave us like bank lending channel was 50% of revenue, and it grew 80% year-over-year and the retail channel and a couple of others. Do you have that data for 4Q?

I have it for the year. And what I'll say, Mike -- and by the way, thank you. Q4 came in Christmas came is what I'd say, right? The holidays came. So retail did bump up, but I think that, that's going to be something interesting to watch overall. It went up probably about 10%, 15% as the whole breakout across our different revenue, but it was still down Q4 2024 versus Q4 2025. So the banking and lending continues to grow. The percentage change year-over-year for bank and lending, it's nearly double, whereas retail is down 1%.

Got it. But did -- I think you said retail grew year-over-year for the fourth quarter.

It was down 13% Q4 2024 versus Q4 2025. It was up 25% over Q3 2025. So the seasonal lift came in. And remember, we still have -- we don't have every one of our customers on the new kind of pricing model that allows us to straight line it. So that's why we saw a lift in that, right? So a couple of the, I'd say, big 4 customers we have that do a lot in retail in that credit card space. are still on a more transactional model than a straight-line model. So that brought in seasonality from them.

Got it. And how does the pipeline look for new customers or customers you're rolling out here in the first half of 2026?

I think it's been really good. And I'm going to say part of that is due to that new desktop solution, the delivery method that we've been talking about because there are a lot of, I'd say, midsized credit unions and banking institutions that want to use us, but they have been held bound by their core banking platforms. Now they don't have to worry about that. So there is a ton of interest in that. And then also this partnership with Alloy is already producing a lot of good names that are saying, "Hey, how do we get this going? How do we get it on board? So -- and then I'm also going to say that the marketing is truly paying off in ways that we haven't seen in the past. And I love the fact we're spending less on marketing, but getting a heck of a lot more out of it. Like year-over-year, even our followers on LinkedIn is up like 3x. So those are the things that help drive pipeline, make cold calls warm and everybody loves a really good inbound lead, and they're getting that for us.

Great. One more question. You have a relationship or a commercial relationship with, I think, Ping Identity. And they seem to be connected to a couple of global social media companies. What's the opportunity there? Are they facilitating you guys?

Not to the point that I would like. And it's one of the reasons that we continue to refine our channel partnership model and how do we make sure that we are helping their sales force kind of light us up. And that's one where I think that we need some -- we need to do better on that particular one. We're doing great in title. We're doing really well in automotive, and we're doing well in background. But that particular channel partner, we need to do a better job on.

And our next question comes from the line of Jeff Van Rhee with Craig-Hallum Capital Group.

This is Daniel Hibshman on for Jeff Van Rhee. Congrats on the quarter, Bryan, Adam. On the retail backdrop, maybe if you could just explain a little bit more on that and your outlook in retail. I know that generally improved across 2025, and it sounds like -- I think going into Q4, we had thought maybe it would be a light quarter in terms of retail, and it sounds like it ended up being better than expected. Maybe just your thoughts a little bit more looking forward. I mean is this -- 2025 in general was a down-ish year for retail? Are your expectations that maybe a plateau, a flattening, actually return to some growth? What are your thoughts there?

Yes, 2025 was a down year in terms of basically a lot of retail sales, credit card issuance, people maxing out their cards, those types of things. So what I always like to point out is even though it was down, right? And like I said, even Q4 of this year, right, was down 13% from Q4 2024. Even with that, because we have expanded into a lot of other markets, we still grew. Now the whole retail world, consumer confidence, consumer sentiment, those types of things are probably going to drive it. I like the fact that our customers are bringing on more retailers. And they use us to help bring them on board because they can go and say, I'm going to give you better rates on your credit card program if you put this process in place because they know that the fraud is going to go away. So I look at it as we are building a pipe for the economy, if you will, so that when interest rates reduce because you look at some of the interest rate on credit cards out there running at like 39%, that's hard for people. But when they come down, I look at it as what has been, again, a headwind will become a major tailwind.

Okay. That's helpful. And then maybe just in terms of the strength in the quarter and the beat on the Street, just your thoughts maybe narrowing in a little bit more color on the source of that, whether you attribute that primarily to the retail backdrop in the quarter or more so the new verticals coming in, whether that's automotive or title insurance, et cetera, just source of the beat.

Yes. I'd say a combination of, in a way, all of the above. Retail certainly came in stronger, I think, than we were anticipating. But again, through our channel partners in automotive, that space is growing a lot, increased just straight-up banking use cases with new and existing clients. So it's sort of like all of the above. I would expect to see -- again, there's always the seasonality in retail. And since we still have some folks who are not on the straight-line model yet, Q4 retail and Q1 retail, there's always a drop. And so that's how I'm looking at the numbers. But we've been, like Adam said, very smart on costs. And I'm excited about where we're going. But retail still is one of those things. It's just like when will it come back to life.

Yes. Last question for me would just be, do you have any update on the status of the large global social media customer that was getting implemented?

Look, they are 100% implemented. They tell us how much they love us. They are one of the strangest companies I've ever dealt with, and I'm hearing that from many other companies that work with them. So I have taken the revenue out of our internal forecast. And I think I've said this on calls before, just because they're too unpredictable. I have no idea. So we're in. We have a great contract. They renewed it. Sometimes the pipe turns on really big and then sometimes it goes away. And they almost can't even explain why that is. So I just kind of leave them -- to me, they're gravy on our revenue numbers, and we'll just -- we'll see where it is. But fully implemented, 100% contract signed, 100% contract renewed, actually signed on for more services. It's just up to them to figure out when and how they want to use it.

And our next question comes from the line of Rudy Kessinger with D.A. Davidson.

This is Clark Wright on for Rudy Kessinger. Could you provide any additional parameters to frame growth expectations for 2026, given the step-up in revenue from the financial client that went live in 3Q?

Look, we don't give guidance as sort of company policy. But the one thing that I've tried to make clear to people for that particular client, remember, they rolled out from 0 to 100 over the course of a year. And what we ended up doing with them is straight-lining revenue. So you figured year 1 of what they were spent was 50% of what they'll spend in year 2, right? So there's built-in growth there. The rest of it, it's a matter of how fast can we get things implemented. And there's all sorts of things going on with implementations that I'll point out to the point that we've got banks that know they want to use us. They know that they're running on really, really old technology, and they want to buy new and better scanners to get it working because they don't want to have to do 2 implementations. But some of these scanner companies are running on 6- to 8-month backlogs on being able to deliver product. So I'm feeling comfortable about our growth. I like the amount of built-in growth that we have. And then the rest of it is sort of, again, how fast can we implement and will supply chain shortages impact us.

Got it. That's helpful. And then I also appreciate the additional color you provided on the trajectory of gross margins and operating expenses going forward. Should we expect to see EBITDA margins expand from where they're at currently given some of the dynamics that you previously allocated with the conversion to the cloud? Or should we expect effectively flat or down from 2025 levels?

Well, the way I kind of look at a lot of the savings that we got from moving from one cloud to another. A part of that savings is going into buying the smart machines, right, that our data team is using and that kind of stuff. I will probably be looking to expand our marketing because it really is doing well. And again, like I said, bringing in prospects. And the thing I love about prospects coming in and us talking to them, we don't lose what I'd call a scan off. When somebody compares us head-to-head, we win. So the more of that I can bring in, the better for the whole company. But my other thing is, as Adam pointed out, we don't want expenses to grow at the same rate as revenue. And I think that we can easily accomplish that.

Got it. In terms of how we should imply that going forward with headcount, should we expect headcount to remain relatively flat then going forward based off of the reinvestment of cost savings? Or should we expect that line item to increase over time?

Look, I think that we're going to add just to help get things out the door, we're going to swap out some expense that was in the dev team where we were using consultants. We'll probably bring -- swap that out for full-time employees. So not a huge increase in that. What I always say is like if I see a phenomenal salesperson, we're going to hire them, right? Because that's hard to find and they're great and you bring them on board and they pay for themselves. And then we might see a slight increase in marketing expense. The only other stuff is as we start to bring on more clients, we would probably need more customer success people. But again, they pay for themselves because when you spend time with the customer, you find new use cases. So again, headcount should go up, but not in any way that is at the same rate as revenue.

And our next question comes from the line of Scott Buck with H.C. Wainwright.

Bryan, I think you mentioned in the prepared remarks that you like the way you're positioned in automotive. And once there's a rebound there, you guys should be able to ride that wave. I'm curious, are there any metrics you can give us around that? How many dealerships you have exposure to or some way for us to, I don't know, kind of wrap our heads around the opportunity?

Yes. I could say automotive revenue grew 125% year-over-year. A lot of that is through channel partners. And we have what it is about, I think, 19,000 rooftops out there, we're nowhere near fully penetrated into that. So I look at that as a lot of growth. We brought on another channel partner that is now incorporated into one of the largest automotive software providers out there and as part of the F&I experience. So I expect that, that should bring in a bunch more rooftops. So that gives us a couple of different angles that we're going after automotive. One is compliance, starts at the front end and the other is F&I, which is sort of at the back end. So I really like the automotive space because there's so many rooftops out there. But knocking on each individual door, I don't want to do that. That's why we're doing it with partners.

Right, right. No, that makes a ton of sense. I appreciate that. And then my second one, just given the expansion of business with some of the financial institutions, is there anything on the customer concentration front that we should just be keeping an eye on?

No. And I don't know, Adam, feel free to chime in on that if you've got a thought on customer concentration. But as we bring on more financial institutions of all different sizes, I think the concentration will probably lessen.

I mean I guess the other thing I would say is that as we've expanded into the different use cases that we have in these various customers, it feels like it's stickier. I mean there's always risk, right? I can't say there's not risk, but it feels like they're getting more and more integrated using our platform. And you feel better when you say, oh, now like Bryan was mentioning the M&A opportunities when banks are emerging and they say, "Oh, now we have a few hundred more branches to roll you out in. It's -- on the one hand, it's concentration. On the other hand, it's expanded opportunities.

And our next question comes from the line of Kris Tuttle with Blue Caterpillar.

Adam, just a couple of things that weren't covered yet that I wanted to ask you about are really end market related. One you've talked about in the past was the employment verification area, which still has a lot of fraud in it. And then, of course, we hear a lot about there's some initiatives, a lot of initiatives around reducing health care fraud. And last and maybe in terms of probability, but potentially size, it would be the opposite would be the chances we might get a voter ID law in the next couple of years. Just kind of your thoughts on the diverse one is probably the most realistic, but just kind of getting a feel for you on those in addition to the ones that you're already penetrating.

Yes. So unemployment is -- I still love that market almost as much as I love automotive. And it's funny because the 2 of them are kind of interrelated. We have 2 automotive manufacturers that use us to verify all of their employees and anybody who comes on into the factory. And one of them realized that one got shut down because they had undocumented people, one of their contractors had undocumented people working on building out the plant. And then they realized, well, wait a minute, if we were up and running, and one of them said to me that they lose $49,000 a minute if the assembly line isn't running. So they are now requiring their suppliers to use us to authenticate all of their employees. So I think we're going to see more things like that happening. So it's been a great market, and they have 200 suppliers. I'll take every one of those. So that's a big area. I think it's also going to happen more and more, the retail stores or whomever who's hiring people, you got to approve. And we already know in the remote hiring world that we've got bad actors from countries like North Korea pretending to be developers working and living in the U.S. and getting access to systems. And I know that, that is scaring people as well. Voter ID has me very excited. I have been -- I have spoken with multiple states about what they think that they need to do. I think we have an elegant solution that works for in-person already and another solution that could do authentication for mail-in ballots. And now it's just a matter of we got to see where the law goes and who do we talk to. But I can tell you that has been a big push within senior management of the company to figure out how do we play in this game because the easiest thing is most people have a driver's license or a state ID. And a lot of places now already have a machine that will take a photo of the license or do some scanning on it only to parse the data, right, but not to authenticate it. I know that South Carolina does it. I know that New Jersey does it. So embedding us in that process would be quick, easy and simple. and then authenticate it as well. Did I answer your questions, Kris?

Yes, absolutely. I just -- those definitely sound like not in the numbers, of course, but I just love those applications for you because it just makes so much sense, right? So much sense.

And with that, ladies and gentlemen, this does conclude our question-and-answer session. I would now like to turn the call back over to Bryan Lewis for any closing remarks.

I just again, want to thank everybody for joining us today. And I want to highlight that I believe we're at an important juncture with the historic achievement of annual operating profitability and sustained EBITDA positive growth, right? And I want to be clear, folks, we believe we are positioned to build on these successes, right? We look to expanded opportunities with current clients. And I look at the pipeline and I go, yes, I think we're going to be doing well, right? And particularly, again, I'm going to say banks, autos and title insurance. 2 I think are somewhat dependent upon the economy. One, it doesn't matter because it's a great spot to go rob. That's why there's so many bank robbers, and we can help stop that kind of crime. So I look forward to updating you all on our progress on our next call. And everybody, have a great evening, and thank you again.

And with that, ladies and gentlemen, this does conclude today's teleconference. We thank you for your participation, and you may disconnect your lines at this time, and have a wonderful day.