This article first appeared on GuruFocus .
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Revenue:$5.524 million in Q1 2026, up 13% from $4.894 million in Q1 2025.
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SaaS Revenue:$5.514 million, a 13% increase from $4.868 million in Q1 2025.
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Adjusted EBITDA:$935,000, with a margin of approximately 17%, compared to a loss of $17,000 in Q1 2025.
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Net Income:$636,000 or $0.03 per diluted share, compared to a net loss of $318,000 or $0.02 per diluted share in Q1 2025.
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Gross Profit Margin:91% in Q1 2026, up from 89.7% in Q1 2025.
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Adjusted Gross Profit Margin:93.4%, up from 91.8% in the prior year period.
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Operating Expenses:Decreased 5% to $4.483 million from $4.740 million in Q1 2025.
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Cash and Cash Equivalents:$10.062 million as of March 31, 2026, with no debt.
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Operating Cash Flow:$444,000 generated in Q1 2026.
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Accounts Receivable:Increased to $5.740 million from $3.365 million at December 31, 2025.
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Warning! GuruFocus has detected 7 Warning Signs with SAU:2082.
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Release Date: May 12, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Intellicheck Inc ( NASDAQ:IDN ) reported a 13% year-over-year revenue growth, reaching approximately $5.5 million in Q1 2026.
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The company achieved its fourth consecutive quarter of positive adjusted EBITDA, with a margin of approximately 17%.
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Intellicheck Inc ( NASDAQ:IDN ) ended the quarter with over $10 million in cash and no debt, indicating a strong financial position.
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The banking and lending vertical, which represents over 50% of quarterly revenue, continues to grow strongly, driven by fraud prevention needs.
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The company is expanding its market reach with new desktop delivery methods, opening opportunities with smaller banks and credit unions.
Negative Points
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The macroeconomic environment, including the military conflict in Iran and rising oil prices, negatively impacted consumer confidence and retail transaction volumes.
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Retail, which accounts for approximately 30% of revenue, experienced a decline in scanning volumes due to reduced foot traffic and consumer belt-tightening.
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The automotive vertical faced challenges as US auto sales fell 5% to 6% year-over-year in Q1 2026, affecting scanning volumes at auto dealer clients.
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Title insurance vertical was impacted by rising mortgage rates and geopolitical uncertainty, slowing mortgage origination activity.
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The company faces headwinds from elevated interest rates and consumer caution, which may continue to influence some verticals in the near term.
Q & A Highlights
Q: For the retail vertical, do you have the revenue figures for Q1 2025 and Q1 2026? A: Bryan Lewis, President and CEO, mentioned that while he didn't run the exact numbers, the revenue generally aligns with transactional volume. Typically, there's a 10% drop from Q4 to Q1 due to seasonality, and an additional 5% to 10% drop likely due to economic factors.
Q: Are there any trends in pricing or transaction volume overall? A: Bryan Lewis noted that pricing continues to see upticks, particularly in new markets. The company is able to demonstrate pricing power, and new sales are moving up. They are also implementing a "minimum to play" pricing strategy, especially with suppliers to automotive companies.
Q: With headwinds in scan volumes across some verticals, how should we think about growth for the rest of the year? A: Bryan Lewis emphasized that despite headwinds, Intellicheck grew 13% year over year. The expansion into new markets and delivery methods, such as desktop delivery, is expected to support continued growth. He also mentioned that improvements in consumer confidence and interest rates could provide additional tailwinds.
Q: What does the pipeline look like for new logos and existing financial customers? A: Bryan Lewis stated that most large customers are on contracts and expanding. The company is seeing good leads and new RFPs, partly due to banking relationships. Existing customers are also expanding their use of Intellicheck's services.
Q: How did the quarter play out monthly, and what are the expectations for Q2? A: Bryan Lewis explained that banking grew while consumer credit was lower than previous quarters, influenced by consumer confidence and geopolitical factors. He suggested that Q2 might be closer to flat compared to typical 5% growth, depending on scanner availability and economic conditions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
