Intellicheck (NASDAQ:IDN) reported a 5% decline in third-quarter revenue but increased its profit, as the identity verification company navigates lower volumes from its largest customer and seeks growth through new partnerships.
Revenue was $5.7 million, down from a year earlier and 3% below the second quarter. Chief Financial Officer Adam Sragovicz said the primary reason for the year-over-year decline was that the prior-year quarter included non-recurring engineering revenue.
Net income rose to $471,000, or 2 cents per diluted share, from $290,000, or 1 cent per share, a year earlier. Adjusted EBITDA increased to $892,000 from $631,000, marking the company’s sixth consecutive quarter of positive adjusted EBITDA. Intellicheck also reported its fifth consecutive profitable quarter on a net income basis.
Largest Customer Evaluates Vendor Strategy
President and CEO Bryan Lewis said the company’s largest customer continues to evaluate a strategy intended to ensure that no single vendor handles a mission-critical portion of its business. The customer has signed a new purchase order and remains committed to implementing Intellicheck’s newer application programming interface, he said.
Lewis said he could not predict how much of the customer’s business Intellicheck would retain. “They continue to tell us that this is an evaluation,” he said during the question-and-answer session, adding that volumes have fluctuated considerably from day to day.
D.A. Davidson analyst Rudy Kessinger said Intellicheck’s Form 10-Q indicated that the customer had reduced scan volumes by 65% to 75% in the fourth quarter from previous levels. Lewis did not forecast when or whether those volumes might recover.
Sragovicz said the fourth quarter could reflect a lower volume run rate at the customer for all three months, compared with only part of the third quarter. He said the company would monitor how much of the gap might be covered by its usual seasonal retail lift.
Asked about the rest of the customer base, Lewis said it grew 6% in the third quarter. He said banking, lending and automotive were among the areas showing growth.
Partnerships Extend Reach
Lewis said Intellicheck is relying on deeper adoption within existing accounts, competitive wins, rapid onboarding and customers’ acquisitions to drive growth. The company serves approximately 14 industry groups, he said, and its technology is used across more than 8,000 bank branches.
A recently signed channel partner secured a deployment with a large investment management company in August, bringing Intellicheck into wealth management for the first time, Lewis said. The company also reached an agreement in October with Agility Credit, an automotive credit bureau reseller, and partnered with Conmitto to support identity verification in freight driver check-ins.
Intellicheck and DESKO also showcased a prototype combining document capture hardware, verification software and a biometric camera. Lewis said the collaboration and Intellicheck’s desktop delivery method could help the company reach smaller banks and credit unions.
Lewis identified a potential expansion with a social media customer as uncertain. He said the customer had improved image quality, reducing the share of submissions Intellicheck could not process from as much as 30% to about 0.6%. He cautioned that he could not predict whether the customer would expand its use.
Cash Position and Outlook
For the first nine months of 2026, revenue rose 7% to $17.2 million, while software-as-a-service revenue increased 8%. Net income for the period was $1.8 million, compared with a $279,000 loss a year earlier.
Intellicheck ended September with $13.2 million in cash and no debt. Sragovicz said operating cash flow for the first nine months was $3.3 million, including approximately $1.1 million in the third quarter. Customer payment and renewal timing helped produce a better result than the company had anticipated, he said.
Management reiterated its expectation for full-year 2026 net income and positive adjusted EBITDA. Sragovicz said the company plans to control costs while continuing to fund engineering and sales efforts tied to its desktop offering and channel partnerships. It has no near-term plans to raise capital, he said.
About Intellicheck (NASDAQ:IDN)
Intellicheck, Inc. (NASDAQ: IDN) provides identity-validation and document-authentication technology. Its platform is designed to help organizations determine whether government-issued identification documents, including driver’s licenses and other identity cards, are genuine and whether the information presented is consistent with the document. The company’s solutions are delivered through mobile and digital channels and are used for applications such as customer onboarding, account opening, fraud prevention, age verification, lending, payments, retail transactions and access control.
