Intellicheck, Inc.

Second-quarter revenue was $5.9 million, up 7% versus last year and 16% year over year, with gross margin at 91%. Operating expenses were $4.9 million, down 1% year over year, and the company posted $573,000 of operating income, $633,000 of net income, and $1.1 million of adjusted EBITDA. For the first half, revenue was $11.5 million, net income was $1.3 million, adjusted EBITDA was $2 million, and cash from operations was $2.2 million. The company ended the quarter with $11.8 million in cash and no debt. Management said the customer review did not materially affect results for the three or six months ended June 30, but if the customer completes the plan as communicated, total 2026 revenue would be slightly lower than 2025; Adam Sragovicz also said if current trends continue, 2026 revenue could be higher than 2025, though it is early and volatile.

Bryan Lewis emphasized diversification, saying the company’s strategy is now in its second-plus year and has produced four consecutive quarters of profitability. He framed the large customer issue as a strategy change by that customer rather than a flaw in Intellicheck’s product, and repeatedly argued that Intellicheck remains the “gold standard” in identity verification because of sub-second barcode-level decisioning and DMV relationships. His tone was confident and forceful, with a strong focus on fraud trends, new banking opportunities, and the company’s ability to grow from a broader customer mix.

Adam Sragovicz highlighted the quarter’s profitability and balance sheet: $5.9 million of revenue, $4.9 million of operating expenses, $573,000 of operating income, $633,000 of net income, and $1.1 million of adjusted EBITDA, with $11.8 million in cash and no debt. He said first-half cash from operations was $2.2 million, accounts receivable fell to $2.7 million from $3.4 million at year-end 2025, and deferred revenue was $1.2 million. On outlook, he said cash from operations should decline slightly in 2026, some cash may be used in future periods, the company expects positive EBITDA in the second half, expects to be profitable on a GAAP basis for 2026, and would expect total 2026 revenue to be slightly lower than 2025 if the large customer’s plan proceeds as described.

Analysts focused heavily on the large customer’s vendor review, asking whether the risk covered all use cases and how much volume could shift. Management said the review is across substantially all use cases where the volume sits, but emphasized the customer’s communications have been changing frequently and that actual volume reduction so far is far below the original warning. Questions also covered whether other large customers could adopt similar multi-vendor strategies; Bryan Lewis called this situation a one-off, while saying other customers want to do more with Intellicheck. Analysts asked about the competitive landscape versus Socure, and Lewis said Socure is more of an orchestration/template layer, while Intellicheck’s DMV-linked verification is fundamentally different.