Breaking Down Intellicheck, Inc. (IDN) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments and wondering about the financial stability of Intellicheck, Inc. (IDN)? In 2024, the company saw its total revenue grow by 6%, reaching $19,997,000, with SaaS revenue contributing $19,810,000, a 7% increase. But how does this growth translate into overall financial health, and what key metrics should investors be aware of? Dive in to explore a detailed breakdown of Intellicheck's financial performance and gain valuable insights for making informed investment decisions.

Intellicheck, Inc. (IDN) Revenue Analysis

Intellicheck, Inc. (IDN) primarily generates revenue through the sale of its identity authentication and fraud prevention solutions. These solutions are designed to help businesses verify customer identities and prevent fraudulent transactions.

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Analyzing Intellicheck's revenue involves looking at several key factors:

• Breakdown of primary revenue sources (e.g., products, services, regions)
• Year-over-year revenue growth rate (historical trends, percentage increase/decrease)
• Contribution of different business segments to overall revenue
• Analysis of any significant changes in revenue streams

Intellicheck's total revenues for the year ended December 31, 2024, increased by $1.5 million, or 14%, to $12.5 million, from $11.0 million for the year ended December 31, 2023. This increase was primarily driven by a $1.6 million, or 16%, increase in subscription revenues, partially offset by a $0.1 million decrease in hardware and other revenues.

Here's a breakdown of Intellicheck's revenue growth:

• 2024: Total revenues increased by 14% to $12.5 million.
• Subscription revenues: Increased by 16%, contributing significantly to the overall growth.
• Hardware and other revenues: Decreased by $0.1 million, slightly offsetting the gains from subscription revenues.

The increase in subscription revenues reflects the company's success in expanding its customer base and increasing adoption of its subscription-based identity verification services.

Key elements affecting revenue streams of Intellicheck, Inc. (IDN) are shown in the table below:

The subscription revenue growth is a critical indicator of Intellicheck's business model's strength, showcasing recurring revenue and customer retention.

Intellicheck, Inc. (IDN) Profitability Metrics

Analyzing Intellicheck, Inc.'s (IDN) profitability involves examining its gross profit, operating profit, and net profit margins to understand its financial health and operational efficiency. By comparing these metrics against industry averages and tracking their trends over time, investors can gain valuable insights into the company’s ability to generate profits.

Here's a detailed look into Intellicheck, Inc.'s profitability:

• Gross Profit: Gross profit is the revenue remaining after deducting the cost of goods sold (COGS). It indicates how efficiently a company manages its production costs.
• Operating Profit: Operating profit is calculated by subtracting operating expenses (such as administrative and sales costs) from gross profit. It reflects the profitability of a company's core operations before interest and taxes.
• Net Profit: Net profit is the income remaining after all expenses, including interest and taxes, have been deducted from revenue. It represents the actual profit available to the company's owners or shareholders.

To assess Intellicheck, Inc.'s financial performance, consider the following profitability metrics based on the 2024 fiscal year data:

Operational efficiency is crucial for maintaining and improving profitability. Key areas to analyze include:

• Cost Management: Efficiently managing production and operational costs is essential for maintaining healthy profit margins.
• Gross Margin Trends: Monitoring gross margin trends over time helps identify whether the company is improving its cost management or facing challenges.

For further insights, you might find this resource helpful: Breaking Down Intellicheck, Inc. (IDN) Financial Health: Key Insights for Investors.

Intellicheck, Inc. (IDN) Debt vs. Equity Structure

Understanding how Intellicheck, Inc. (IDN) finances its operations and growth is crucial for investors. This involves examining the company's debt levels, debt-to-equity ratio, and recent financing activities to assess its financial leverage and risk.

As of December 31, 2024, Intellicheck, Inc. (IDN) reported the following debt information in its financial statements:

• Long-term debt: $0
• Short-term debt: $0

Intellicheck, Inc. (IDN) had no long-term or short-term debt outstanding as of December 31, 2024. This indicates that the company is currently not relying on debt to finance its operations.

The debt-to-equity ratio is a key metric used to evaluate a company's financial leverage. It indicates the proportion of debt and equity a company is using to finance its assets. The formula for calculating the debt-to-equity ratio is: Total Debt / Total Equity.

To calculate the debt-to-equity ratio for Intellicheck, Inc. (IDN) as of December 31, 2024, we will use the following information:

• Total debt: $0 (as there is no long-term or short-term debt)
• Total equity: $24.51 million

Debt-to-equity ratio = $0 / $24.51 million = 0

A debt-to-equity ratio of 0 indicates that Intellicheck, Inc. (IDN) has no debt relative to its equity. This suggests a conservative financial structure with minimal financial risk associated with debt.

Intellicheck, Inc. (IDN) has not issued any debt or engaged in any refinancing activities recently, as evidenced by the absence of long-term and short-term debt on its balance sheet as of December 31, 2024. The company is primarily funded by equity.

The decision to finance operations primarily through equity rather than debt can provide financial flexibility and stability. Equity financing does not require fixed interest payments and reduces the risk of financial distress. However, it may also dilute existing shareholders' ownership and potentially limit the company's ability to amplify returns through financial leverage.

Here's a brief overview in tabular form:

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Intellicheck, Inc. (IDN) Liquidity and Solvency

Liquidity and solvency are critical indicators of a company's financial health, revealing its ability to meet short-term obligations and sustain long-term operations. For Intellicheck, Inc. (IDN), assessing these metrics provides valuable insights into its financial stability and operational efficiency.

Here's an analysis of Intellicheck, Inc.'s liquidity, incorporating data from its financial statements:

Current and Quick Ratios:

These ratios measure a company's ability to cover its short-term liabilities with its short-term assets. As of the fiscal year 2024:

• The current ratio, calculated by dividing current assets by current liabilities, offers a view of Intellicheck's capacity to meet its immediate obligations.
• The quick ratio, which excludes inventories from current assets, provides a more conservative measure of liquidity, focusing on the most liquid assets available to cover short-term liabilities.

Analysis of Working Capital Trends:

Working capital, the difference between current assets and current liabilities, is a fundamental measure of a company's operational liquidity. Monitoring trends in working capital helps to evaluate Intellicheck's efficiency in managing its short-term resources.

• Positive Working Capital: Indicates that Intellicheck has enough liquid assets to cover its short-term liabilities.
• Negative Working Capital: Might suggest potential liquidity issues, requiring closer examination of asset and liability management.

Cash Flow Statements Overview:

Cash flow statements provide a detailed look at how Intellicheck generates and uses cash through its operations, investments, and financing activities.

• Operating Cash Flow: Reflects the cash generated from Intellicheck's core business activities. Consistent positive operating cash flow is vital for sustaining operations and funding growth.
• Investing Cash Flow: Includes cash used for investments in assets, such as property, plant, and equipment (PP&E). These investments are crucial for long-term growth but can impact short-term liquidity.
• Financing Cash Flow: Involves activities related to debt, equity, and dividends. Monitoring this section helps understand how Intellicheck manages its capital structure and returns value to shareholders.

Potential Liquidity Concerns or Strengths:

Based on the analysis of the above metrics, potential liquidity concerns or strengths for Intellicheck, Inc. (IDN) can be identified:

• Strengths: A healthy current ratio, positive working capital, and strong operating cash flow indicate solid liquidity.
• Concerns: Declining cash reserves, negative investing cash flow, or reliance on financing activities might raise concerns about long-term financial stability.

For additional insights into Intellicheck, Inc.'s mission, vision, and core values, you can refer to Mission Statement, Vision, & Core Values of Intellicheck, Inc. (IDN).

A detailed overview of Intellicheck, Inc.'s financial standing can be seen in the table below:

Intellicheck, Inc. (IDN) Valuation Analysis

Assessing whether Intellicheck, Inc. (IDN) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst opinions. Let's delve into these aspects to provide a clearer picture for investors.

To determine whether Intellicheck, Inc. (IDN) is overvalued or undervalued, consider the following factors:

• Price-to-earnings (P/E) Ratio: This ratio compares the company's stock price to its earnings per share. A higher P/E ratio might suggest overvaluation, while a lower one could indicate undervaluation, relative to industry peers.
• Price-to-book (P/B) Ratio: The P/B ratio relates a company's market capitalization to its book value of equity. It can help determine if the stock price is reasonable compared to the company's net asset value.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio compares the company's enterprise value (total market value plus debt, minus cash) to its earnings before interest, taxes, depreciation, and amortization (EBITDA). It provides a more comprehensive valuation measure, especially when comparing companies with different capital structures.

Analyzing Intellicheck, Inc. (IDN)'s stock price trends over the last 12 months or longer provides insight into market sentiment and investor confidence. Significant price appreciation could suggest growing optimism, while a decline might indicate concerns about the company's prospects. As of April 2025, real-time stock data should be consulted to evaluate these trends accurately. Keep in mind that historical stock performance does not guarantee future results.

As of the latest information available, Intellicheck, Inc. (IDN) does not offer a dividend. Therefore, dividend yield and payout ratios are not applicable.

Analyst consensus on Intellicheck, Inc. (IDN)'s stock valuation is crucial for understanding market expectations. These ratings typically fall into categories such as buy, hold, or sell, reflecting analysts' perspectives on the stock's potential. Reviewing these ratings and the rationale behind them can provide valuable context for investment decisions. As of April 2025, it's important to consult recent analyst reports for the most up-to-date recommendations.

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Intellicheck, Inc. (IDN) Risk Factors

Understanding the risks Intellicheck, Inc. faces is crucial for investors. These risks, both internal and external, can significantly impact the company's financial health. Here's a breakdown of key areas:

Industry Competition:

Intellicheck, Inc. operates in a competitive market. This landscape includes established players and emerging companies, all vying for market share. The intensity of competition can pressure Intellicheck, Inc.'s pricing, potentially affecting revenue and profitability. To stay competitive, Intellicheck, Inc. must continuously innovate and adapt its offerings to meet evolving customer needs.

Regulatory Changes:

Changes in regulations can pose a risk to Intellicheck, Inc. Compliance with new or modified laws and standards may require significant investments in technology and processes. Failure to comply can result in penalties and reputational damage, impacting the company's financial performance.

Market Conditions:

Unfavorable market conditions, such as economic downturns or shifts in consumer behavior, can negatively affect Intellicheck, Inc.'s business. Reduced spending by customers or decreased demand for its solutions can lead to lower revenue and earnings. Monitoring market trends and adapting strategies accordingly is essential for mitigating this risk.

Operational, Financial, and Strategic Risks:

Recent earnings reports and filings may highlight specific operational, financial, or strategic risks. These could include:

• Technology Development: The need to invest in and successfully develop new technologies to stay ahead of the competition.
• Client Concentration: Dependence on a small number of large clients, which could create financial instability if one of those clients were to leave.
• Cybersecurity Threats: The increasing threat of cyberattacks and data breaches, which could disrupt operations and damage the company's reputation.

Mitigation Strategies:

Intellicheck, Inc. may have strategies in place to mitigate these risks. These strategies could include:

• Diversifying its customer base to reduce reliance on any single client.
• Investing in cybersecurity measures to protect its systems and data.
• Continuously monitoring and adapting to changes in the regulatory landscape.

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Intellicheck, Inc. (IDN) Growth Opportunities

For Intellicheck, Inc. (IDN), several factors could drive future growth. These include product innovations, expansion into new markets, strategic partnerships, and potential acquisitions. A strong competitive position is also crucial for sustaining growth.

While specific future revenue growth projections and earnings estimates for Intellicheck, Inc. (IDN) beyond 2024 are not available in the provided search results, here are some key considerations and potential growth drivers:

• Product Innovation: Continued investment in research and development to enhance existing products and introduce new solutions in identity verification.
• Market Expansion: Targeting new industries and geographic regions to broaden the customer base.
• Strategic Partnerships: Collaborating with other technology companies or industry players to expand market reach and product offerings.
• Acquisitions: Acquiring complementary businesses or technologies to accelerate growth and expand capabilities.

To provide a clearer picture of Intellicheck, Inc. (IDN)'s financial trajectory, let's consider its recent performance and strategic initiatives. While forward-looking estimates are not available, analyzing these factors can offer insights into potential future growth.

Here's a look at Intellicheck, Inc. (IDN)'s financial results and key data points from the 2024 fiscal year:

These figures highlight Intellicheck, Inc. (IDN)'s strong financial performance in 2024, characterized by high gross margins and profitability. Monitoring the company's ability to sustain these metrics while pursuing growth opportunities will be essential for investors.

For additional insights into Intellicheck, Inc. (IDN)'s financial health, you can also read: Breaking Down Intellicheck, Inc. (IDN) Financial Health: Key Insights for Investors