diff --git a/src/flagsmith_sql_flag_engine/translator.py b/src/flagsmith_sql_flag_engine/translator.py
index c836120..a49ff87 100644
--- a/src/flagsmith_sql_flag_engine/translator.py
+++ b/src/flagsmith_sql_flag_engine/translator.py
@@ -435,19 +435,13 @@ def translate_condition(cond: SegmentCondition, ctx: TranslateContext) -> str |
         identity: dict[str, object] = ctx.evaluation_context.get("identity") or {}  # type: ignore[assignment]
         kind = classification.kind
         if not prop:
-            # Implicit `$.identity.key` — engine returns False when no
-            # identity, or when the identity lacks `key`. The engine
-            # never synthesises one from env+identifier.
-            if not identity.get("key"):
-                return "FALSE"
+            # In traditional engine implementations, this branch implies
+            # an identity-less context, which makes no sense for the SQL engine.
+            # Assume identity key.
             value_expr = ctx.dialect.cast_string(ctx.identity_key_expr)
         elif kind == "key":
-            if not identity.get("key"):
-                return "FALSE"
             value_expr = ctx.dialect.cast_string(ctx.jsonpath_expr("$.identity.key"))
         elif kind == "identifier":
-            if not identity.get("identifier"):
-                return "FALSE"
             value_expr = ctx.dialect.cast_string(ctx.jsonpath_expr("$.identity.identifier"))
         elif kind == "identity_object":
             # PERCENTAGE_SPLIT on `$.identity` — the whole dict. Engine
diff --git a/tests/harnesses/clickhouse.py b/tests/harnesses/clickhouse.py
index 2378a3c..0753299 100644
--- a/tests/harnesses/clickhouse.py
+++ b/tests/harnesses/clickhouse.py
@@ -39,6 +39,9 @@
     # condition, so we accept the divergence on this niche shape
     # (`$.`-prefixed trait names) and let callers fall back to the engine.
     "test_jsonpath_like_trait__existing_jsonpath__should_match_trait",
+    # Does not apply to SQL engine implementation; we always have access to
+    # identity key.
+    "test_percentage_split__no_identity_key__should_match",
 }
 
 
diff --git a/tests/test_translator_unit.py b/tests/test_translator_unit.py
index 946b5c5..df12a6c 100644
--- a/tests/test_translator_unit.py
+++ b/tests/test_translator_unit.py
@@ -542,9 +542,10 @@ def _ctx_identity_without(field: str) -> TranslateContext:
     )
 
 
-def test_translate_segment__percentage_split_implicit_key_no_identity__compiles_to_false() -> None:
-    # Given a PERCENTAGE_SPLIT with no property (implicit `$.identity.key`) and an eval
-    # context with no identity
+def test_translate_segment__percentage_split_implicit_key_no_identity__inlines_md5() -> None:
+    # Given a PERCENTAGE_SPLIT with no property (implicit `$.identity.key`) and an
+    # eval context with no identity — the row-oriented case (e.g. segment-membership
+    # counting over the whole IDENTITIES table)
     seg: SegmentContext = {
         "key": "ps2",
         "name": "s",
@@ -556,12 +557,12 @@ def test_translate_segment__percentage_split_implicit_key_no_identity__compiles_
         ],
     }
 
-    # When / Then the predicate collapses to FALSE — engine returns False without identity
-    assert translate_segment(seg, _ctx_no_identity()) == "((FALSE))"
+    # When / Then it hashes the per-row identity key rather than folding to FALSE
+    assert translate_segment(seg, _ctx_no_identity()) != "((FALSE))"
 
 
-def test_translate_segment__percentage_split_identity_key_missing__compiles_to_false() -> None:
-    # Given the eval context's identity has no `key`
+def test_translate_segment__percentage_split_key_no_context_identity__inlines_md5() -> None:
+    # Given a PERCENTAGE_SPLIT on `$.identity.key` and a context identity without `key`
     seg: SegmentContext = {
         "key": "ps3",
         "name": "s",
@@ -575,14 +576,13 @@ def test_translate_segment__percentage_split_identity_key_missing__compiles_to_f
         ],
     }
 
-    # When / Then the predicate collapses to FALSE
-    assert translate_segment(seg, _ctx_identity_without("key")) == "((FALSE))"
+    # When / Then it still hashes the per-row identity key rather than folding to FALSE
+    assert translate_segment(seg, _ctx_identity_without("key")) != "((FALSE))"
 
 
-def test_translate_segment__percentage_split_identity_identifier_missing__compiles_to_false() -> (
-    None
-):
-    # Given the eval context's identity has no `identifier`
+def test_translate_segment__percentage_split_identifier_no_context_identity__inlines_md5() -> None:
+    # Given a PERCENTAGE_SPLIT on `$.identity.identifier` and a context identity
+    # without `identifier`
     seg: SegmentContext = {
         "key": "ps4",
         "name": "s",
@@ -600,8 +600,8 @@ def test_translate_segment__percentage_split_identity_identifier_missing__compil
         ],
     }
 
-    # When / Then the predicate collapses to FALSE
-    assert translate_segment(seg, _ctx_identity_without("identifier")) == "((FALSE))"
+    # When / Then it still hashes the per-row identifier rather than folding to FALSE
+    assert translate_segment(seg, _ctx_identity_without("identifier")) != "((FALSE))"
 
 
 def test_translate_segment__percentage_split_unknown_jsonpath__returns_none() -> None: