v3.26.1
Segment information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment information

9. 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 June 30,

 

 

Six Months Ended June 30,

 

(Dollars in thousands)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Revenue

 

$

26,718

 

 

$

21,774

 

 

$

52,548

 

 

$

43,777

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

3,818

 

 

 

3,501

 

 

 

7,637

 

 

 

7,162

 

Personnel-related expenses

 

 

8,635

 

 

 

8,024

 

 

 

17,247

 

 

 

15,717

 

Advertising, marketing and agency expenses

 

 

363

 

 

 

287

 

 

 

686

 

 

 

511

 

Provision for bad debts

 

 

218

 

 

 

212

 

 

 

367

 

 

 

274

 

Share-based compensation expense

 

 

2,222

 

 

 

1,827

 

 

 

4,257

 

 

 

3,423

 

Occupancy expenses

 

 

280

 

 

 

265

 

 

 

564

 

 

 

571

 

Professional fees(2)

 

 

1,403

 

 

 

1,560

 

 

 

2,952

 

 

 

2,611

 

Other segment items(3)

 

 

897

 

 

 

700

 

 

 

1,702

 

 

 

1,349

 

Depreciation and amortization

 

 

2,787

 

 

 

2,647

 

 

 

5,597

 

 

 

5,197

 

Interest income

 

 

(394

)

 

 

(339

)

 

 

(738

)

 

 

(647

)

Income tax expense

 

 

1,529

 

 

 

404

 

 

 

2,929

 

 

 

1,483

 

Segment net income

 

$

4,960

 

 

$

2,686

 

 

$

9,348

 

 

$

6,126

 

Consolidated net income

 

$

4,960

 

 

$

2,686

 

 

$

9,348

 

 

$

6,126

 

 

(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 and six months ended June 30, 2026 included $49 and $308, respectively, of acquisition-related costs incurred in connection with due diligence of potential strategic targets. Comparable acquisition-related costs were $370 for each of the three and six months ended June 30, 2025.

 

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