Intellicheck, Inc. (IDN) Q1 2026 Earnings Report, Transcript and Summary

Greetings, and welcome to the Intellicheck Q1 2026 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce our host, Gar Jackson of Investor Relations. Please go ahead.

Thank you, operator. Good afternoon, everyone, and thank you for joining us today for Intellicheck's First Quarter 2026 Earnings Call. Before we get started, I will take a moment to read our 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 call, words such as will, believe, expect, anticipate, encourage and similar expressions as they relate to the company or its management identify forward-looking statements. These 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 update or alter its forward-looking statements, whether resulting from new information, subsequent events or otherwise. Additional information concerning forward-looking statements is contained in the company's filings with the SEC. Throughout this call, we may reference certain financial metrics that have been rounded for ease of discussion. Statements made today are as of May 12, 2026. Management will use the financial terms adjusted EBITDA and adjusted gross margin. Please refer to our 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 President and Chief Executive Officer. He will be followed by Adam Sragovicz, our Chief Financial Officer. 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 it over to Bryan.

Thanks, Gar, and good afternoon to everyone, and thank you for joining us today. I'll start by doing something I always try to do, be direct about what drove the quarter, which was impacted in part by the macro environment. Then I will get to the numbers that showed significant EBITDA growth, marking our fourth quarter in a row of positive EBITDA and our third quarter in a row of positive net income. The first quarter of 2026 played out against one of the more challenging macroeconomic backdrops that we have seen in several years. The military conflict in Iran, which intensified in the first quarter, created a genuine economic ripple effect across virtually every sector of our economy. Oil prices surged, pushing gasoline prices toward $4 and above in many markets. This is one of the factors that impacted consumer confidence and consequentially affected our retail customers. Additionally, as evidenced by reporting on multiple news outlets, mortgage rates climbed to their highest levels in 7 months as financial markets absorbed the geopolitical shock. And consumer confidence, which I just noted was already trending in the wrong direction, deteriorated further. And inflation, which had appeared to be normalizing at around 2.4% early in the quarter, reaccelerated sharply to 3.2% year-over-year in March. For Intellicheck specifically, these forces created headwinds in 3 of our verticals. In retail, that is now approximately 30% of our revenue, consumer belt tightening continued to weigh on transaction volumes. Our retail clients scan fewer IDs when foot traffic declines, and foot traffic clearly slowed in Q1 for our customers as consumers pulled back in addition to the normal Q4 to Q1 holiday decline. In automotive, U.S. auto sales are estimated to have fallen 5% to 6% year-over-year in Q1 as high borrowing costs, record vehicle purchases and economic uncertainty kept buyers on the sidelines, impacting scanning volumes at some of our auto dealer clients. On the title insurance side, the combination of rising rates and geopolitical uncertainty slowed mortgage origination activity. Despite all of these economic factors, I am pleased to report that Intellicheck continued its growth trajectory with growth of approximately 13% year-over-year. I believe this underscores the wisdom of our decision to expand into other verticals. Our first quarter revenue was approximately $5.5 million versus $4.9 million in Q1 2025. We delivered adjusted EBITDA of $935,000, representing a margin -- EBITDA margin of approximately 17% versus our adjusted EBITDA of negative $17,000 1 year ago. This marks our fourth consecutive quarter of positive adjusted EBITDA. This is a milestone that I believe speaks directly to the operating leverage we have built into this model. We had earnings per share of $0.03, marking our third quarter in a row of profitability and ended the quarter with over $10 million in cash and $0 debt. I will tell you, delivering 13% revenue growth in this macro environment with 17% EBITDA margin is something I am generally proud of. Now let's walk through our vertical performance. Banking and lending remain our core growth engine and represented over 50% of our quarterly revenue growing strongly in Q1. This mix shift has fundamentally changed the resilience of this business. Our largest regional banking client with a 3-year contract valued in the very high 7 figures is now fully implemented throughout all their bank branches. Their team is not just ramping volumes. They are in active conversations with us about expanding the use of Intellicheck's technology in additional use cases and departments. The ROI and fraud prevention at these banks is not subtle. Account takeover losses average approximately $2,300 per incident. Some clients tell us they experienced monthly fraud losses north of $40,000 before they implemented Intellicheck. The payback on our technology is often measured in days, not months. And in addition to stopping fraud, we also help them onboard good customers faster, a significant and valuable attribute that I believe is frequently overlooked. Beyond our major bank relationships, our new desktop delivery method is opening meaningful new doors with smaller banks and credit unions. This clearly reflects the benefits of our desktop delivery of our core services. This delivery service requires no integration with the bank's core platform and implementation is immediate. You may recall that credit unions and smaller banks have historically been hampered by long technology integration queues with their core technology providers. I am pleased to report that we are seeing strong inbound interest for our desktop product that is designed to address this issue. We believe this product has the potential to materially expand our addressable market without requiring a third party to facilitate the growth. Implementing this desktop technology, we have signed 3 new clients with several others in review. While these are smaller deals, they can get up and running quickly. That being said, bank platform partnerships are also very important. I'm also excited to share that our new partnership with Alloy is starting to generate early traction. Our partnership here is a valuable one given it is one of the leading identity and fraud prevention platforms in the banking and fintech space. Their customer network is substantial. We believe being embedded in our platform significantly reduces buying friction for institutions already operating within the Alloy ecosystem. These kinds of strategic partnerships are an important element in how we grow this component of the banking vertical from here. Retail represented approximately 30% of 2025 revenues, and as I discussed earlier, was certainly challenging during the first quarter. We saw year-over-year declines in scanning volumes that was similar to the sequential period last year, and we believe that it is entirely consistent with the consumer confidence and macro headwinds I described. Through our active diversification efforts, we are no longer dependent on retail for growth. If consumer sentiment improves as the macro picture settles, any recovery in retail volumes will be an incremental upside for us. Also, as I previously discussed, our title insurance vertical was impacted in Q1 by the mortgage rate environment. However, I want to call out a milestone that I am genuinely excited about. First American Title successfully launched their digital e-commerce identity verification capability in Q1. You may remember, we told you this was coming on the last quarter's call. This is a meaningful expansion of how our technology is embedded in their platform. It is exactly the kind of deepening of the relationship that drives long-term value. When rates normalize and real estate volumes recover, we believe this vertical has substantial upside potential. We're also seeing growth in our other verticals. Our age-related and background check verticals continue to grow steadily. The nationwide rollout with our food manufacturer client addressing cargo freight fraud is showing good progress as well. That account is now running in the low 6-figure annual contract value range. Additionally, our foreign auto manufacturer clients and their supplier networks continue to expand. In the stadium concessions market vertical, we added a few additional clients, although these are starting at very low volumes. While this remains a long-term opportunity, we are building the foundation for further growth. On the product and technology front, our team continues to execute at a high level. As I shared with you, our desktop application is gaining solid traction. We are also seeing progress with our mobile SDK, hub reporting console and portal delivery method. As a reminder, our customers like our hardware-free solutions that are quick and easy to implement. And here's the thing I keep coming back to. Our core differentiation is unique and it is durable. We can verify the authenticity of a government-issued ID in less than a second with 99% decisioning. We do this by checking against the exact bar code specification embedded by each state DMV at the time of issuance. Keep in mind that no competitor has access to these specifications. This is because we continue to be the trusted test lab for state DMV systems, a relationship we've had for more years than I can count. This exclusivity is key as we see threats continue to evolve at an extraordinary pace. AI-generated fakes are becoming more sophisticated every quarter, which I believe will become an increased problem for our competitors. Synthetic identity fraud skyrocketed 300% in just the first quarter. Deepfake-driven fraud was up over 1,000%. Visual template checks, which is what most of our competitors rely on, cannot stop these fakes. We can. That is not going to change, and it gets more valuable every year. Our marketing initiatives are continuing to make a difference as they continue generating lead activity. The agency we brought on board is sharpening our messaging and building brand awareness. Our IDN threat report has been an effective thought leadership piece across banking, title, automotive and the cargo freight audiences. This original data documenting the fraud trends we observed in 2025 positions us as a credible source of industry data and intelligence. Our podcast content, white papers and industry conference presence continue to build Intellicheck's brand as the definitive authority in real-world ID verification. In closing, I'm continuing to be mindful as to how 2026 is unfolding. Clearly, the macro environment remains uncertain. The Iran conflict, elevated interest rates and consumer caution are real factors that will continue to influence some of our verticals in the near term. We are watching that carefully every day. But here's what gives me added confidence. Our banking and lending vertical is driven by fraud prevention. This is mission-critical, nondiscretionary spending for every bank and credit union we work with. This category does not soften in a difficult economy. If anything, it becomes more urgent. Keep in mind, this is now more than half of our business. We believe that we have opportunities to continue growth with our existing clients in addition to signing new clients. We believe that we are at the inflection point in our business model to profitability. At our current run rate, virtually every incremental revenue dollar flows meaningfully to the bottom line. We have over $10 million in cash, no debt and a product that we believe genuinely cannot be replicated. Without providing formal guidance, we believe EBITDA margins will remain positive, and we see potential acceleration in the back half of the year. Looking forward, we believe that we are well positioned to deliver positive net income for the full year 2026. This would be a significant milestone for this company. We also continue to advance our Investor Relations initiatives and expect to participate in a number of upcoming investor conferences, including the Sidoti Microcap Virtual Conference next week. In June, we will be participating in the RBC Financial Technology Conference in New York, the D.A. Davidson Conference in Nashville and the Planet MicroCap Showcase in Las Vegas. These events provide valuable opportunities to further expand awareness of Intellicheck and communicate our strategic priorities and long-term growth objectives. In addition, they provide valuable platforms to keep you, our shareholders, informed while at the same time engaging with the broader investment community. The headwinds we faced in Q1 are real, but so is the trajectory we are on to maintain and expand profitability. We are a fundamentally different company than we were 24 months ago, and I am confident in where the business is going. Now I will turn it over to Adam.

Thank you, Bryan. We are off to a strong start in 2026, and I want to take a moment to put that in context. Bryan described the macro backdrop and against that backdrop, I'm genuinely pleased with what we've delivered. Total revenue for the first quarter of 2026 increased $630,000 or 13% to $5.524 million compared to $4.894 million in the first quarter of 2025. SaaS revenue grew $646,000 or 13% to $5.514 million from $4.868 million in the same period of 2025. The growth was driven especially by financial services and banking, where identity fraud pressures remain elevated and customers continue to deepen the use of our platform. Gross profit as a percentage of revenues was 91% in the first quarter of 2026 compared to 89.7% in the first quarter of 2025, a 130-basis point improvement. On an adjusted basis, excluding noncash amortization of capitalized software costs, adjusted gross profit margin was 93.4% compared to 91.8% in the prior year period, representing a 160-basis point improvement. Both measures reflect the continued operating efficiency we have achieved with our cloud infrastructure. Our cost of revenue, excluding amortization, was $362,000 in Q1 of 2026, down from $399,000 in Q1 of 2025, even as revenue grew 13%. Noncash amortization allocated to cost of revenues was $137,000 in Q1 of 2026 compared to $103,000 in Q1 of 2025 as previously capitalized software development costs continue to amortize through the income statement. As we noted on our last call, our capitalization of new software costs has declined to near 0 levels, which means this amortization headwind will diminish over the next several years as earlier vintage capitalized assets roll off. Operating expenses decreased $257,000 or 5% to $4.483 million in the first quarter of 2026 compared to $4.740 million in the first quarter of 2025. In 3 of the past 5 quarters, including the last 2, operating expenses have declined year-over-year, while revenue grew at double-digit rates. SG&A expenses decreased $211,000 or 6% to $3.242 million compared to $3.453 million in Q1 of 2025. The reduction reflects continued discipline across personnel costs, marketing spend and professional fees. R&D expenses decreased $46,000 or 4% to $1.241 million from $1.287 million in Q1 of 2025. I would note that R&D costs are now almost entirely cash expenses given the near elimination of software capitalization. The GAAP number and the cash number are effectively the same, which makes our R&D line more straightforward to interpret than in prior years. As a result of these dynamics, we reported operating income of $542,000 in the first quarter of 2026 compared to an operating loss of $348,000 in the first quarter of 2025, an $890,000 year-over-year improvement at the operating line. Other income was $94,000, primarily consisting of interest earned on our cash balances compared to $30,000 in the prior year period. The increase reflects both the higher average cash balance we carried and favorable short-term rate positioning. Net income for the first quarter of 2026 was $636,000 or $0.03 per diluted share compared to a net loss of $318,000 or $0.02 per diluted share in the first quarter of 2025, a swing of nearly $1 million year-over-year. This marks our third consecutive quarter of positive net income. The weighted average diluted share count was 20.9 million for Q1 of 2026 compared to 19.8 million for Q1 of 2025. Adjusted EBITDA for the first quarter of 2026 was $935,000 compared to a loss of $17,000 in the first quarter of 2025, representing a year-over-year growth of $952,000. This is our fourth consecutive quarter of positive adjusted EBITDA. And I want to remind everyone that Q1 is seasonally our softest quarter given the absence of a certain holiday retail uplift we see in Q4. To put that in perspective, 1 year ago, we were essentially at breakeven on an adjusted EBITDA basis in Q1. This quarter, we generated nearly $1 million and delivered an adjusted EBITDA margin of approximately 17%. Depreciation and amortization was $193,000 and stock-based comp was $200,000 in Q1 of 2026, consistent with recent trends. For the first quarter of 2026, we recognized no income tax provision. We continue to carry a full valuation allowance against our net deferred tax assets of approximately $6.7 million, which GAAP requires as long as our 3-year cumulative taxable income position remains negative. As I mentioned on our last call, the prior year's losses keep that cumulative test negative for now, but the window is improving as each profitable quarter is added and loss periods roll off. At March 31, 2026, the company had cash and cash equivalents totaling $10.062 million, an increase of $412,000 from $9.650 million at December 1, 2025. The first quarter is typically a period of cash usage given the seasonality of our business, so generating operating cash flow of $444,000 in Q1 is a strong result. We have no outstanding debt, which means our balance sheet is entirely equity and business financed. Working capital at March 31, 2026, was $11.119 million. Total assets were $27.109 million and stockholders' equity was $21.533 million. Accounts receivable grew to $5.740 million at March 31 compared to $3.365 million at December 31. This increase is largely a timing artifact of our Q1 billings pattern. Annual contracts that renew in the first quarter generate substantial invoicing in the first weeks of the year with collections sometimes completing in Q2. Our allowance for credit losses remained stable at $157,000. Our capital requirements remain modest. Capital [indiscernible] only $33,000 in Q1 of 2026. Our product improvements are expensed as incurred rather than capitalized and our infrastructure runs on major cloud platforms rather than owned hardware. We are encouraged by how the year has started. The combination of consistent revenue growth, improving margins and the first profitable Q1 in company history tells us that the operating model changes we've made are working. Looking ahead, we expect gross margin profile to remain in the 90% to 91% GAAP range with adjusted gross margins continuing to run the 92% to 93% range. The noncash amortization of capitalized software costs will remain a small headwind in the near term, but will diminish over time. On the expense side, we remain committed to growing operating expenses at a rate below our revenue growth rate. That discipline is what drives the operating leverage we are seeing. Finally, I want to briefly address capital allocation. Our cash position gives us flexibility. We are investing in the business, especially in marketing and sales capacity, customer success and in product at a level we believe is appropriate given our growth targets. We will continue to regularly evaluate how to deploy that capital in ways that create long-term value for shareholders. I'll now turn the call over to the operator for questions.

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

For the retail vertical, do you guys have what revenue was 1Q '25 and 1Q '26?

Good question, Mike. I didn't run those numbers, but it roughly runs in line with, obviously, transactional volume, which was -- if you remember, generally, we drop at least 10% Q1 to -- I'm sorry, Q4 to Q1 just for the seasonality of the holidays. And we still have 2 of our major clients who have a lot to do with retail who are not on a straight-line revenue model yet. So they saw the seasonality, but we did see, I'm going to say, another good 5% to 10% drop, which I'm going to say is probably economic factor.

Got it. Got it. And then any trends you're seeing on pricing or transaction volume overall?

So that is -- so pricing, we continue to see upticks in pricing. And I think it's also very much dependent upon the market. Again, if you think about our largest clients all renewed last year, and they go into 3-year contracts with CPI kind of adjustments every year. But in the new markets that we're going to, we continually are able to show pricing power. And those new sales are moving up. And we're also really starting to price a lot of things that we're changing is minimum to play. Again, one of the things we look at is, for example, the suppliers to some of the automotive companies that we're dealing with, it's like, look, we're not going to deal with you without paying X, right? And that means the price per transaction is relatively high, but we're saying we need to do that to factor in what it costs to support you. So overall, we're seeing what I feel is people are understanding that we are a differentiated product that deserves a premium because, again, I've said this a million times, just about everybody else does it the same way. Take a picture, compare to a template. They do not have the authoritative data that we have on the barcode, and that deserves a premium.

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

So with the kind of headwinds to the scan volumes in a few of your verticals, just -- if we operate under the assumption that those persist in Q2 and likely throughout the second half of the year, how should we think about your potential growth profile throughout the rest of the year?

Look, I'm just going to go back to some of the numbers that we did. We still grew 13% year-over-year. And I think that has to do with other verticals that we're bringing in. I'd say the desktop delivery method is opening new markets. And it's not just banking. I mean it's -- desktop is working in the background check part of our business. It's working in the cargo part of our business because those folks generally don't have big IT staffs and they don't need it. They can get centralized reporting and instant implementation. So I think our expansion into new markets and expansion into new delivery methods is going to allow us to have continued growth throughout the year. And then the other thing that I'd say is that -- and I'm sure maybe your macroeconomic guys have a good idea of where things will go. But what we talk about a headwind, and we've seen it, right? When the market got good, all of a sudden, we had a tailwind from those markets. We are -- our customers continue to expand and bring on new retailers. However, until consumer confidence gets up there, and I think interest rates go down -- we've got some of our credit card customers are up around 35%, 39% on interest rates. That bumps people up. Now when that changes, I think it picks up. And in a way, just through being good stewards of our customers and the business that they're bringing in, that's a massive tailwind. So I'm happy with what I'm seeing in terms of pipeline, sales progress and then keep that going plus hopefully, the economy turns around in short order. I'm excited.

Okay. Got it. And then talk to me about the pipeline. What does that look like both from a new logo standpoint? And then also, do you have any of your large financial customers that are set to renew this year? And if so, any expectations for expansion on those contracts?

So the majority of our large customers renew on our contracts. One of them is still in the kind of buying buckets, and they are expanding because they have been bringing on new retailers. One of the things that I like about them is part of the way they win business away from their competitors for credit card programs is they can offer better rates, and we know this because we've been on some of their sales calls, offer better rates on the program if they implement Intellicheck, which does 2 things for the retailer, lower rates and faster adoption of customers. So they've been bringing on more clients. So that's why part of what they've been doing is it has been expanding with us. And generally, every year, they think they buy a bucket that's going to last them the year and it never does. So overall, anybody that's big is locked in and/or growing. And then from the pipeline standpoint, like we said in the prepared remarks, I'm very, very happy with what the marketing crew we brought in have been doing. Really good leads, new RFPs that probably we would not have seen before. I'll be quite honest, through some banking relationships, we're getting introduced to new customers that -- or new prospects, I should say, that they know could use our product. So all in all, I'd say good team, good prospects and really good customers.

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

A couple for me. First, maybe just in terms of the quarter, how did they play out monthly? It feels sort of normal. January, February fell off. March, it got ugly. Just kind of curious, I mean, obviously, we're out into May, now you're well into Q2. Just kind of curious how each of those months has strung together. Have we hit a bottom? You've got pretty good visibility through the scan volumes. Just any commentary there on a more of a real-time month-by-month basis?

I'd say that banking was growing, retail was -- and when I say retail, consumer credit. The credit cards in that regard were lower than we've seen in previous quarters. Again, I think that has a lot to do with consumer confidence certainly picked up more when the whole Iranian conflict kind of got heated up. And I think the price of oil, which runs everything went up, offset a little bit by bringing on some new customers or existing banking clients expanding their usage and their volumes. I think you can look at the numbers. I don't think consumers are any more positive in May than they might have been in March or April.

Should we think then -- I mean, if I look at the last 3 years, I think your average Q1 to Q2 sequential growth is 5%. But it sounds like from what you're saying, we should be thinking more like flattish. I know you don't give guidance, but I mean, we need to get at least in the ballpark, just are we closer to flattish than your typical 5% growth quarter? And then just while you're on that, you mentioned being happy with the pipeline. Any particularly large needle-moving deals? Or is it a lot of onesie, twosies? Just a little more color on the pipeline.

I'd say that there's a couple of things. One is, and I think I mentioned this on the last call, there is sort of a shortage of scanners out there that banks need. And we have a couple of these banking clients who want to be able to do passports in addition to just drivers' licenses, which means they're all looking to upgrade their scanning devices. But if you just go look at what it takes and the time frame to get them, that will be, I think, sort of one of the determining factors on how fast our revenue grows and in which quarter. It will depend on delivery of those scanners to several of our signed customers who want to get moving. And that's completely out of my control. The customers are signed. The customers believe in us. The customers want to be up and running as fast as they can. And that's with this desktop product, which doesn't mean we don't have to be integrated to any of those core banking platforms that take forever. So it's -- that's out of my control. What I can say is the customers have signed and are ready to go.

And just the second part of the question then on pipeline. You commented on good pipeline. I guess what I'm wondering, is there any meaningful -- assuming volumes stay bleak, the economy stays bleak, oil prices stay elevated, I'm trying to figure out where the growth comes from. And if it's not volumes, I'm wondering what opportunity there is in the second half for major needle-moving customers like what you put up in '25, and I mean, seemingly every year, 1.5 years. Just what does that mega customer pipeline look like?

We always have customers in that kind of pipeline. It's just they take a very long time, and they are, what I'd say, stop and start all the time. Now what I like about this new sector that we've really gone into that we can get to with desktop -- they're smaller, they're nimble. They might not be worth $4 million a year, but they might be worth $0.25 million a year, but they can be up and running in 3 months. And you get -- and they're much easier. You get 10 of them, I'm just as happy. So while we're always going after the whales, we're also looking at the banks that are smaller. And then there's a ton of other different opportunities, different market sectors that are coming to us. I didn't say anything about cargo, right? But the average loss of a tractor trailer is $300,000, and it's happening all the time. That's a huge, huge sector for us. And we've got some of the biggest names in manufacturing who are recommending us to other people, their competitors because they all feel it because it's the same companies ripping them off. So there's a lot going on. I don't need to have one whale every year if I can make sure that I'm hitting a bunch of doubles all the time.

Last for me then, just in terms of actual signings in the quarter, the bookings of new business versus expectations, how did you fare?

For Q1, I think that we signed everybody we expected, but 1 who signed quite shortly after the quarter ended. Just a timing issue on their lawyers and our lawyers.

The next question comes from the line of Scott Buck with Titan Partners.

Bryan, if I look at the year-over-year revenue growth, what of that -- in software, what of that of the 600 or so, 1,000 is coming from new logos versus just expansion of service with existing or legacy customers?

I'd say for this quarter -- and by the way, congratulations on the new spot. I'd say that for this quarter, the majority of it was expansion of existing clients, which kind of typically is our Q1 anyway. Given that almost nobody in banking or retail wants to touch their systems in Q4, which is -- even banking has a tad of seasonality to it, they don't want to go down. So generally, it has been we'll sign people, but they're not going to come up live because they're not doing anything in Q4 that could impact their core system that interacts with their clients. So I'd say that I think that the mix is kind of typical for what we have seen over the years that I've been with the company.

Okay. Perfect. That's helpful. And then my second question, I just wanted to ask about title insurance. How many partners in that space do you have? I mean, I guess if you were to put a -- you're touching X percent of the market or have access to X percent of the market. What does that look like today?

So the last time I ran numbers on who we have as direct clients, that would represent about 43% of the title market. If you just do a quick search, like who control the title market, ChatGPT gives you percentages of the market of each of the major names that added up to 43%.

Okay. Wow, so you already have fairly significant scale in that vertical?

Yes. And talking to the other few big guys that we don't have currently. But we have the who's who to pretty much a title.

The next question comes from the line of Logan Hennen with Northland Securities.

This is Logan jumping back in for Mike. You kind of touched on a bit already, but if you could just give some additional color into the pipeline opportunity with new and existing customers in the banking and lending vertical, that would be great.

I'm sorry, Logan. Can you clarify that question for me? What were you looking for?

Some additional color on the pipeline opportunity with new and existing customers in the banking and lending vertical.

Okay. So for existing customers, there's always new expansion. Pretty much all of our clients have been talking to us about where else they can use us. I'd say there's one of our clients -- I don't know where else they could put us is probably the way I put it. And they're the one that have been growing a lot by taking credit card programs away from some of their competitors. The rest always are talking about how do we expand, what could we do different? Sandra, who now is my Chief Commercial Officer, and I have meetings this week and next week with 2 of what I call our super regionals so that we can discuss how we get partnered better with them at their request, right? They want to see what we're doing. Through the partnership with Alloy and then also the amount of inbounds that I'm seeing through marketing, again, smaller deals, maybe $100,000 to $250,000, but quick to implement, no cost to implement and basically immediate revenue, that's where I'm seeing a lot of interest and inbound interest as these smaller credit unions and smaller banks that get hit at the exact same proportion. So I run these stats all the time. And the percentage attempts of fraud are no different at these smaller places than they are at the largest nationwide banks that we have. So they get hit and the losses are the same, and it hurts them probably even more because they have fewer assets.

This concludes the question-and-answer session. And I'd like to turn the call back to Bryan Lewis for closing remarks.

So first of all, thank you all for your time today. I'd say in closing, I'm sure is the case for every CEO, I'm very focused on the macro environment, which is challenging right now. I think we can all agree on that. But I want to leave you with this. We are a fraud prevention company that also, at the same time, speeds up the acquisition of great customers. And that is in the backdrop of a world where fraud is exploding, okay? We believe we have the best technology in this space, the right customers and the financial foundation to execute on our multiyear growth trajectory. I want to reiterate $10 million in the bank, no debt, right? That frees us up to be able to do, I believe, some good things. So we look forward to updating you on our progress when we report on our Q2 results. And with that, thank you all, and have a great evening.

Thank you. This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation.