Summary
Intellicheck posted record second quarter revenue of $5.1 million for the three months ended June 30, 2025, up 9.7% from $4.7 million a year earlier. SaaS revenue did the heavy lifting, rising 10% to $5.1 million from $4.6 million. For the six months ended June 30, 2025, revenue was $10.0 million, up 7.1% from $9.4 million. Management credited the quarter to expansion in new and existing verticals and to multiple multiyear agreements signed with prominent financial services clients.
Gross profit rose 8.8% to $4.6 million in the quarter from $4.2 million. Gross margin slipped to 89.8% from 90.5%, a decline of 0.7 percentage points. On a non-GAAP basis, adjusted gross profit was $4.7 million, or 92.2% of revenue, versus $4.3 million and 91.0% a year ago. The gap between the two measures reflects amortization allocable to cost of revenues of $122,000 in the quarter, up from $23,000.
Operating expenses climbed 10% to $4.9 million from $4.4 million. The increase came mostly from less capitalization of research and development costs. Research and development jumped to $1.4 million from $0.8 million, while selling, general and administrative expense fell to $3.5 million from $3.6 million. Stock-based compensation included in operating expenses was $202,000, up from $72,000.
The higher expense base pushed the operating loss to $0.3 million for the quarter from $0.2 million, a wider loss. Net loss was $0.25 million, or $0.01 per diluted share, compared with a net loss of $0.13 million, or $0.01 per diluted share. On a year-to-date basis the picture is steadier. The operating loss narrowed to $0.6 million from $0.7 million, and net loss was flat at $0.57 million. Diluted EPS was flat at a loss of $0.03 for the six months. Adjusted EBITDA turned positive at $75,000 for the quarter, an improvement of $145,000 from a loss of $70,000 a year earlier. For the six months, adjusted EBITDA was $58,000 versus a loss of $174,000.
Cash generation was the standout. Operating cash flow was $3.13 million in the quarter, up from a use of $1.18 million a year earlier. Year to date, operating cash flow was $3.88 million versus a use of $0.31 million. Capital expenditures were $13,000 in the quarter, up from $10,000. Cash and cash equivalents totaled $8.6 million at June 30, 2025, and stockholders equity was $18.0 million. Deferred revenue, which is the current portion, rose 69% to $3.04 million from $1.80 million. Remaining performance obligations matched that at $3.04 million, also up 69%.
Intellicheck did not provide numeric guidance for the third quarter or the full fiscal year. Management said it would keep driving growth with a focus on sales and marketing. The company points to a 99.975% decisioning success rate on its technology and says it validates around 100 million identities a year across North America. Risks remain familiar for a small-cap identity vendor: long sales and implementation cycles, reliance on government-provided data, potential liability from security breaches or product failure, and the possibility of needing to raise additional funds. The company had roughly $28.5 million in net operating loss carryforwards as of December 31, 2024, with $10.9 million expiring between 2035 and 2037.
Forecast
No forward guidance in this quarter's filings.
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2025 | Q1 FY2025 | QoQ | Q2 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $5.1M | $4.9M | +4.7% | $4.7M | +9.7% |
| Gross profit | $4.6M | $4.4M | +4.7% | $4.2M | +8.8% |
| Gross margin | 89.8% | 89.7% | +0.1 pp | 90.5% | -0.7 pp |
| Research & development | $1.4M | $1.3M | +5.9% | $835.0K | +63.2% |
| Sales & marketing | $3.5M | $3.5M | +2.4% | $3.6M | -2.0% |
| Total operating expenses | $4.9M | $4.7M | +3.3% | $4.4M | +10.2% |
| Operating income (loss) | -$298.0K | -$348.0K | +14.4% | -$215.0K | -38.6% |
| Operating margin | -5.8% | -7.1% | +1.3 pp | -4.6% | -1.2 pp |
| Net income (loss) | -$251.0K | -$318.0K | +21.1% | -$127.0K | -97.6% |
| Net margin | -4.9% | -6.5% | +1.6 pp | -2.7% | -2.2 pp |
| Diluted EPS | -$0.01 | -$0.02 | +$0.01 | -$0.01 | ±$0.00 |
Risks
Net loss widened to $(251) in FY2025 Q2 from $(127) in FY2024 Q2, and operating loss widened to $(298) from $(215), even as revenue rose 9.7% to $5.12 million. This indicates profitability remains under pressure despite top-line growth.
MD&A attributes the increase in operating expenses to less capitalization of research and development costs related to software development. This reduces operating leverage and contributed to the quarter's operating loss widening.
Management states it may raise additional funds to respond to business contingencies, including funding more rapid expansion, marketing, new markets, or acquisitions, and there can be no assurance it can secure funds on satisfactory terms.
Gross margin declined to 89.8% in FY2025 Q2 from 90.5% in FY2024 Q2, down 0.7 percentage points, and declined 0.8 percentage points for the six months ended June 30, 2025. Amortization allocable to cost of revenues increased in the quarter.
A portion of net operating loss carryforwards expires between 2035 and 2037, and another portion is subject to an 80% utilization limitation under the Tax Cuts and Jobs Act. This may limit future tax benefits.
SaaS KPIs
All quarters →Adjusted EBITDA
SaaS Revenue
Adjusted Gross Profit
Adjusted Gross Profit Margin
Summary, forecast, risks and KPIs are extracted from Intellicheck, Inc.'s SEC filings for Q2 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.