v3.26.1
Segment information
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment information

10. Segment information

The Company operates as a single operating and reportable segment, identity and information solutions, as defined under ASC 280, “Segment Reporting.” There have been no significant changes in the basis of segmentation or in the basis of measurement of segment profit since the last annual report.

The Company’s chief operating decision maker (the “CODM”) is a group consisting of its Chief Executive Officer, President, and Chief Financial Officer. The CODM assesses performance for the identity and information solutions segment and decides how to allocate resources based on net income that also is reported on the condensed consolidated statements of operations as net income. The measure of segment assets is reported on the condensed consolidated balance sheet as total assets.

Information about reported segment revenue, segment net income, and significant segment expenses is shown as follows:

 

 

 

Three Months Ended March 31,

 

(Dollars in thousands)

 

2026

 

 

2025

 

Revenue

 

$

25,830

 

 

$

22,003

 

Less:

 

 

 

 

 

 

Cost of revenue (exclusive of depreciation and amortization)(1)

 

 

3,819

 

 

 

3,661

 

Personnel-related expenses

 

 

8,612

 

 

 

7,693

 

Advertising, marketing and agency expenses

 

 

323

 

 

 

224

 

Provision for bad debts

 

 

149

 

 

 

62

 

Share-based compensation expense

 

 

2,035

 

 

 

1,596

 

Occupancy expenses

 

 

284

 

 

 

306

 

Professional fees(2)

 

 

1,549

 

 

 

1,051

 

Other segment items(3)

 

 

805

 

 

 

649

 

Depreciation and amortization

 

 

2,810

 

 

 

2,550

 

Interest income

 

 

(344

)

 

 

(308

)

Income tax expense

 

 

1,400

 

 

 

1,079

 

Segment net income

 

$

4,388

 

 

$

3,440

 

Consolidated net income

 

$

4,388

 

 

$

3,440

 

 

(1) Cost of revenue (exclusive of depreciation and amortization) includes certain personnel-related expenses and share-based compensation expense, which are not included in the related line items below.

 

(2) Professional fees for the three months ended March 31, 2026 included $259 of acquisition-related costs incurred in connection with due diligence of potential strategic targets. No acquisition-related costs were incurred during the three months ended March 31, 2025.

 

(3) Other segment items include primarily travel and entertainment, write-off of long-lived assets, and other selling, general and administrative expenses.