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Ipsidy Inc. (AUID)
:AUID
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Ipsidy (AUID) AI Stock Analysis

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AUID

Ipsidy

(NASDAQ:AUID)

Rating:46Neutral
Price Target:
$4.00
▼(-10.31% Downside)
Ipsidy's overall stock score is primarily impacted by its weak financial performance, characterized by negative profitability and cash flow challenges. While the earnings call revealed promising growth prospects through record revenue and strategic partnerships, these are overshadowed by ongoing financial difficulties. Technical indicators and valuation metrics further reflect a cautious outlook, with the stock trading below key moving averages and a negative P/E ratio.

Ipsidy (AUID) vs. SPDR S&P 500 ETF (SPY)

Ipsidy Business Overview & Revenue Model

Company DescriptionauthID Inc. operates an Identity as a Service (IDaaS) platform that delivers a suite of secure, mobile, and biometric identity solutions worldwide. The company develops an IDaaS platform to enable users to verify and authenticate their identity through a mobile phone or desktop with camera. It provides VERIFIED, a multi-factor authentication solution designed to provide a secure and convenient application for identity verification and transaction consent; PROOF, which establishes the trusted identity of users based on chip based electronic machine-readable travel documents, national IDs, and drivers licenses, as well as direct verification by national registries and other international databases; AUTHENTIFID that delivers FIDO2 authentication for password less login and transaction authentication tied to a trusted identity; and IDENTITY – PORTAL, which allows an enterprise to enroll customers using the Ipsidy portal. The company also offers SEARCH, a biometric matching software for desktop fingerprint capture and image processing; CARDPLUS, a secure plastic identity credentials and loyalty card products. In addition, it provides payment processing solutions, such as TRANXA, a multi-application payment gateway and switch that provides payment solutions for online retailers and physical merchant locations; and an unattended kiosk application and backend management system, which is integrated with a transit ticketing system. The company was formerly known as Ipsidy Inc. and changed its name to authID Inc. authID Inc. was founded in 2009 and is headquartered in Denver, Colorado.
How the Company Makes MoneyIpsidy generates revenue through a subscription-based model that offers clients access to its identity verification and biometric authentication services. These services are often tailored to specific industries, allowing Ipsidy to charge fees based on usage or tiered subscription plans. Key revenue streams include transaction fees for each identity verification performed, licensing fees for software solutions, and long-term contracts with enterprise clients. Additionally, Ipsidy has formed strategic partnerships with technology providers and financial institutions, which help expand its market reach and enhance its offerings, contributing to its overall revenue growth.

Ipsidy Earnings Call Summary

Earnings Call Date:Aug 14, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements including record revenue, new strategic partnerships, and product launches, signaling strong growth and market demand. However, increased operating expenses and net losses pose financial challenges.
Q2-2025 Updates
Positive Updates
Record Quarterly Revenue
AuthID recorded its highest quarterly revenue in history with $1.4 million, a significant increase from $0.3 million in Q2 2024 and Q1 2025.
Launch of IDX Platform
AuthID launched the IDX platform in late July, aimed at eliminating identity fraud in supply chain workforce by integrating biometric authentication.
Partnership with NEC
AuthID announced a partnership with NEC, a leader in IT and biometric solutions, to demonstrate interoperability of a reusable identity across countries (U.S. and Japan).
Agreement with Prove
AuthID signed an agreement with Prove, one of the largest identity fraud platforms, to enhance capabilities and expects revenue impact starting in Q3 2025.
Fortune Global 500 Customer
AuthID went live with a UK-based Fortune Global 500 customer using the PrivacyKey product, post a successful pilot.
Increase in Annual Recurring Revenue (ARR)
ARR increased significantly to $5.8 million in Q2 2025 compared to $1.1 million in Q2 2024 and $1.2 million in Q1 2025.
Negative Updates
Increased Operating Expenses
Operating expenses for Q2 2025 were $5.9 million, up from $3.6 million in Q2 2024, primarily due to increased headcount investment in sales and R&D.
Net Loss and Credit Loss Provision
Q2 2025 net loss was $4.4 million, with an $0.8 million provision for estimated credit loss expense, reflecting credit risk assessment related to customer contracts.
Company Guidance
During authID's second quarter 2025 earnings call, the company reported its highest quarterly revenue to date, totaling $1.4 million, up from $0.3 million in the previous year and quarter. Operating expenses increased to $5.9 million, primarily due to investments in sales and R&D, leading to a net loss of $4.4 million. The company's remaining performance obligation (RPO) stood at $13.8 million, with annual recurring revenue (ARR) reaching $5.8 million compared to $1.1 million in the prior year. AuthID also highlighted a partnership with NEC and Prove, contributing to a booked annual recurring revenue (BAR) of $2.2 million for Q2. The company maintains a target of $18 million in BAR for 2025.

Ipsidy Financial Statement Overview

Summary
Ipsidy faces significant financial challenges with negative profitability and cash flow metrics. Despite some improvement in equity, the company struggles with consistent operational losses, indicating a need for strategic improvements to achieve financial stability and growth.
Income Statement
25
Negative
Ipsidy has experienced significant revenue volatility, with a decline from 2020 to 2023, followed by a slight increase in 2024. The EBIT and EBITDA margins are negative, indicating operational inefficiencies. Net profit margins are also negative, reflecting persistent losses.
Balance Sheet
40
Negative
The company's debt-to-equity ratio has improved as debt levels decreased over time. However, low equity and consistent losses pose a risk to financial stability. The equity ratio is moderate, but the company still faces challenges in maintaining a solid capital structure.
Cash Flow
30
Negative
Cash flow from operations remains negative, indicating challenges in generating cash. Free cash flow growth is inconsistent, and the free cash flow to net income ratio is unfavorable, showing inefficiencies in converting sales into cash.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.03M886.49K190.29K527.41K2.29M2.14M
Gross Profit933.49K886.49K190.29K527.41K1.63M1.48M
EBITDA-15.35M-14.05M-18.25M-21.56M-14.96M-9.04M
Net Income-15.56M-14.28M-19.40M-24.23M-17.67M-11.30M
Balance Sheet
Total Assets9.97M14.47M15.41M9.37M13.83M13.87M
Cash, Cash Equivalents and Short-Term Investments2.87M8.47M10.18M3.24M6.04M3.84M
Total Debt0.00240.88K224.42K7.84M743.95K6.46M
Total Liabilities2.34M2.96M2.21M9.09M2.93M9.29M
Stockholders Equity7.63M11.52M13.20M283.54K10.90M4.58M
Cash Flow
Free Cash Flow-14.08M-11.69M-8.39M-12.81M-8.88M-4.97M
Operating Cash Flow-14.03M-11.62M-8.37M-12.79M-8.76M-4.67M
Investing Cash Flow-67.49K-65.79K75.15K-182.27K-116.74K-299.44K
Financing Cash Flow9.74M9.99M15.38M10.23M11.09M8.18M

Ipsidy Technical Analysis

Technical Analysis Sentiment
Negative
Last Price4.46
Price Trends
50DMA
4.28
Negative
100DMA
5.13
Negative
200DMA
5.56
Negative
Market Momentum
MACD
0.08
Negative
RSI
51.86
Neutral
STOCH
77.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AUID, the sentiment is Negative. The current price of 4.46 is above the 20-day moving average (MA) of 4.07, above the 50-day MA of 4.28, and below the 200-day MA of 5.56, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 51.86 is Neutral, neither overbought nor oversold. The STOCH value of 77.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AUID.

Ipsidy Risk Analysis

Ipsidy disclosed 31 risk factors in its most recent earnings report. Ipsidy reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Ipsidy Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
$282.06M42.7419.65%27.84%-13.78%
61
Neutral
$35.45B8.20-10.08%1.91%8.56%-9.51%
58
Neutral
$168.58M-600.12%-31.11%-52.32%
46
Neutral
$59.96M-106.55%295.86%-2.95%
43
Neutral
$189.00M-70.04%111.83%73.52%
42
Neutral
$141.49M-128.83%7.05%19.75%
42
Neutral
$136.71M-116.76%-60.93%10.46%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AUID
Ipsidy
4.27
-3.73
-46.63%
VERI
Veritone
3.11
0.16
5.42%
PAYS
PaySign
5.11
0.48
10.37%
REKR
Rekor Systems
1.09
-0.09
-7.63%
ARBE
Arbe Robotics
1.25
-0.71
-36.22%
BKKT
Bakkt Holdings, Inc. Class A
9.20
-3.84
-29.45%

Ipsidy Corporate Events

Executive/Board Changes
Ipsidy Announces Board Resignation and New Appointment
Neutral
Aug 20, 2025

On August 18, 2025, Michael C. Thompson resigned from his roles as a director and committee member at authID Inc. for personal reasons, with no disagreements related to the company’s operations or policies. The Board of Directors appointed Shrikrishna Venkataraman to fill the vacancy on the Audit Committee, ensuring continuity in the company’s governance structure.

Executive/Board ChangesShareholder Meetings
Ipsidy Holds Annual Meeting, Elects New Directors
Neutral
Jun 26, 2025

authID Inc. held its Annual Meeting on June 26, 2025, where shareholders voted on several key proposals. Ten directors were elected to the board, Cherry Bekaert LLP was ratified as the independent auditor for 2025, and an additional 295,000 shares were authorized for issuance under the 2024 Equity Incentive Plan.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 03, 2025