AUID

DENVER, Aug. 14, 2026 (GLOBE NEWSWIRE) -- authID® (Nasdaq: AUID) (“authID” or the “Company”), a leading provider of biometric identity verification and authentication solutions, today announced financial results for the second quarter ended June 30, 2026, and announced that its Board of Directors is evaluating a range of strategic and financing alternatives to maximize shareholder value. Second Quarter 2026 The Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, has been filed with the Securities and Exchange Commission and is available on the SEC’s website at www.sec.gov and on the Investor Relations section of the Company’s website at https://investors.authid.ai/. During the quarter and subsequently, the Company has continued to sign and onboard customers and partners, as indicated in recent announcements, as well as investing significant resources in an extensive POC for a major financial institution. This POC effort focuses on a range of consumer use cases and technology requirements.  These include hosting, model governance, scalability and performance, and user experience.  We are also in the final stage of a contract negotiation with a major manufacturer for workforce verification. They have had problems with remote workers who weren’t who they claimed to be. In addition, a critical workforce use case on which we are focused is account recovery and reset through the call center.  Solving this vulnerability has been a major objective for our customers due to numerous cases of social engineering and infiltration through the call center, affecting many organizations in retail, healthcare, and gaming. Call center compromise has literally crippled some organizations, disrupting their ability to deliver services, including critical care.  It has shut down supply chains, shut down payment systems, and caused losses in the hundreds of millions. We not only provide identity assurance, but we do it in a way that makes the entire verification process faster and more efficient for both the caller and the call center support teams.   Our integration with ServiceNow and Zendesk is particularly relevant to our solution, which enables handing off of a verified identity to the service desk platform. Finally, our channel partners continue to bring us excellent opportunities. We have upcoming workforce verification POCs planned for an athletic wear retailer and a medical manufacturer. Evaluation of Strategic and Financing Alternatives The Company’s Board of Directors is evaluating a range of strategic and financing alternatives to enhance shareholder value and support the Company’s long-term growth. These alternatives may include, among others, a strategic partnership or investment, additional debt or equity financing,  or a sale or merger of the Company.  The goal is to identify the path that best positions authID for success and delivers the strongest possible outcome for all stakeholders. The Company has not set a definitive timeline for completion of this process and does not intend to disclose further developments unless and until its Board of Directors has approved a specific transaction or otherwise determined that further disclosure is appropriate or required by law. There can be no assurance that this process will result in any transaction or other strategic outcome. Conference Call In light of the Company’s ongoing review of strategic and financing alternatives, the Company has determined not to hold a conference call to discuss its second quarter results at this time. Forward-Looking Statements This Press Release includes “forward-looking statements.” All statements other than statements of historical facts included herein, including, without limitation, those regarding any strategic partnership or investment, additional debt or equity financing, future sale or merger of the Company, or the continued execution of the Company’s current business plan,  results of operations, growth and sales, potential contract signings, cash flow, cash position and financial position, business strategy, plans and objectives of management for future operations of both authID Inc. and its business partners, are forward-looking statements. Such forward-looking statements are based on a number of assumptions regarding authID’s present and future business operations and strategies, and the environment in which authID expects to operate in the future, which assumptions may or may not be fulfilled in practice. Actual results may vary materially from the results anticipated by these forward-looking statements as a result of a variety of risk factors, including the Company’s ability to attract and retain strategic partners or investors; successful implementation of the services to be provided under new customer contracts and their adoption by customers’ users; the Company’s ability to compete effectively; changes in laws, regulations and practices; the increase in international tariffs and uncertainty over international trading conditions, changes in domestic and international economic and political conditions, the impact of the wars in Ukraine and the Middle East, inflationary pressures, changes in interest rates, and others. See the Company’s Annual Report on Form 10-K for the Fiscal Year ended December 31, 2025 filed at www.sec.gov and other documents filed with the SEC for other risk factors which investors should consider. These forward-looking statements speak only as to the date of this release and cannot be relied upon as a guide to future performance. authID expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this release to reflect any changes in its expectations with regard thereto or any change in events, conditions, or circumstances on which any statement is based. About authID Inc. authID® (Nasdaq: AUID) ensures enterprises "Know Who's Behind the Device™" for every customer or employee login and transaction through its easy-to-integrate, patented, biometric identity platform. authID quickly and accurately verifies a user's identity and eliminates any assumption of 'who' is behind a device to prevent cybercriminals from compromising account openings or taking over accounts. Our IDX platform secures the distributed workforce of employees, contractors, and vendors, as well as bringing authorization and accountability for AI agents. Combining secure digital onboarding, biometric authentication, and account recovery with a fast, accurate, user-friendly experience, authID delivers biometric identity processing in 700ms, with 1-to-1-billion false match rate and 1-to-many sub-second search capability. authID delivers all the benefits of biometric identity verification while ensuring complete privacy protection and regulatory compliance by storing no biometric data whatsoever. For more information, visit https://authid.ai. Investor Relations [email protected]

This article first appeared on GuruFocus. Release Date: May 14, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. AuthID Inc (NASDAQ:AUID) reported a 62% year-over-year revenue growth for Q1 2026, reflecting strong adoption by existing enterprise customers and new deployments. The company secured $4.2 million in bridge loan financing, providing financial stability to continue engagements with large enterprises. AuthID Inc (NASDAQ:AUID) launched the industry's first quantum-resistant biometric authentication platform, positioning itself ahead of competitors in addressing quantum computing threats. A targeted reduction in operating expenses is expected to yield approximately $3.5 million in annualized savings, improving financial efficiency. The company is actively engaged in proof-of-concept evaluations with over a dozen prospective customers across various industries, indicating strong market interest. Operating expenses for Q1 2026 increased to $5.0 million from $4.7 million in the previous year, driven by higher stock-based compensation. Net loss for Q1 2026 was $4.5 million, slightly higher than the $4.3 million loss in Q1 2025. The remaining performance obligation (RPO) decreased slightly to $2.0 million from $2.2 million in Q4 2025, indicating slower contract growth. The timeline for closing larger enterprise deals continues to extend, potentially delaying revenue realization. Cash used in operating activities was $3.4 million for the quarter, highlighting ongoing cash flow challenges despite improvements. Warning! GuruFocus has detected 4 Warning Signs with AUID. Is AUID fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide more details about the Proof of Concepts (POCs) you're currently working on? A: (Ron Taguro, CEO) We are currently targeting around 20 POCs, which include top companies across various verticals. These are high-caliber clients, and we are confident in our ability to perform well against competitors. This is the largest number of POCs we've engaged with at this level, and we anticipate converting these into contracts in the coming quarters. Q: How does AuthID's technology stack compare to competitors, especially regarding quantum resistance? A: (Ron Taguro, CEO) Our technology, particularly the Privacy Key, is designed to be quantum-resistant, addressing a major concern for enterprises. We are ahead of competitors in this area, as quantum computing poses a real threat to current encryption methods. Our platform is purpose-built to withstand these threats, and we are actively releasing it to the market. Q: Can you elaborate on the significance of the quantum-resistant biometric authentication platform? A: (Ron Taguro, CEO) This platform is a significant milestone for AuthID, offering a dual-layer approach to security with quantum-resistant encryption and cryptographic key sharding. It ensures no stored biometric data can be stolen, providing a robust defense against breaches. We are in discussions with major banks for testing and deployment, which could lead to transformative revenue. Q: What are the financial highlights for Q1 2026? A: (Ed Salito, CFO) We reported a 62% year-over-year revenue growth, reaching approximately $480,000. Operating expenses were $5.0 million, with a net loss of $4.5 million. Our adjusted EBITDA loss improved to $3.4 million. We also secured $4.2 million in bridge financing to support ongoing engagements and strategic opportunities. Q: How is AuthID planning to achieve long-term financial sustainability? A: (Ron Taguro, CEO) We are focusing on accelerating revenue, reducing costs, and expanding our enterprise pipeline. Our strategic initiatives, including the launch of quantum-resistant technology and securing bridge financing, position us for cash flow sustainability and financial independence in the long term. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

DENVER, May 14, 2026 (GLOBE NEWSWIRE) -- authID® (Nasdaq: AUID) (“authID” or the “Company”), a leading provider of biometric identity verification and authentication solutions, today reported financial and operating results for the Quarter ended March 31, 2026. First Quarter 2026 vs. First Quarter 2025 Financial Summary Total revenue for the quarter was $0.5 million, compared to $0.3 million a year ago. Operating expenses were $5.0 million, compared to $4.7 million a year ago. Net loss was $4.5 million, or $0.28 per share, compared to a loss of $4.4 million, or $0.40 per share a year ago. Adjusted EBITDA Loss of $3.4 million (non-GAAP measure as defined below), compared with $3.9 million a year ago. Gross bARR (Booked Annual Recurring Revenue) of $0.08 million (non-GAAP measure as defined below), compared with $0.01 million a year ago. "Q1 2026 represents an inflection point for authID, as the Company executed a deliberate and multi-dimensional strategy, simultaneously strengthening the balance sheet, restructuring the cost base, advancing its technology leadership, and deepening its enterprise pipeline,” said Rhon Daguro authID CEO. “We took action to reduce our cost structure and secure our runway, in closing $4.2 million in bridge financing after the quarter closed. We expanded our channel presence through new partnerships in the Microsoft ecosystem and our enterprise POC pipeline continues to progress with some of the largest organizations in the world" added Daguro. “The combination of accelerating revenue, structural cost savings, and an expanding enterprise pipeline creates the conditions for authID to reach cash flow sustainability and long-term financial independence.” Recent Business and Operational Highlights The Company has built a $40m pipeline represented by 20 major accounts, with a growing number of accounts coming from our channel partner program. We are in various phases of Proofs of Concept with more than a dozen of these prospective major enterprise customers spanning retail, banking, fintech, crypto, industrial and chip manufacturing, and healthcare. Launched what the Company believes is the only biometric identity platform purpose-built to withstand quantum-era threats. authID's PrivacyKey™ platform now incorporates quantum-resistant cryptography, using NIST-standard quantum-resistant encryption algorithms and cryptographic key sharding, which eliminates single-point-of-failure vulnerabilities. Expanded our strategic partnership program adding Formula5, a Microsoft-focused consultancy specializing in identity, security, and Zero Trust architecture, to serve as a reseller and implementation partner for authID's biometric identity platform. Formula 5, like our existing partner MajorKey, operates within the security framework of Microsoft Entra and Microsoft Verified ID ecosystems — expanding the Company's reach into a broad range of industries including financial services, healthcare, energy and manufacturing. Secured $4.2 million in bridge financing subsequent to quarter end, extending the Company's operating runway as it continues to advance enterprise proof-of-concept evaluations and work towards closing significant deals. Financial Results for the First Quarter Ended March 31, 2026 Revenue for the three months ended March 31, 2026 was $0.5 million, compared with $0.3 million a year ago. Operating expenses for the three months ended March 31, 2026, were $5.0 million, compared to $4.7 million a year ago. The 2026 was driven by an increase of in stock-based compensation for employees and advisors, partially offset by employee and vendor expense reductions. Net loss for the three months ended March 31, 2026 was $4.5 million, of which non-cash charges were $1.1 million, compared with a net loss of $4.4 million a year ago, of which non-cash charges were $0.5 million. Loss per share for the three months ended March 31, 2026 was $0.28, compared with $0.40 a year ago. Adjusted EBITDA loss (a non-GAAP measure, as defined below) was $3.4 million for the three months ended March 31, 2026, compared with a loss of $3.9 million a year ago. The decrease in adjusted EBITDA loss is primarily driven by the decrease in operating expenses, net of non-cash stock-based compensation. Please refer to Table 1 for reconciliation of net loss to adjusted EBITDA (a non-GAAP measure). Remaining Performance Obligation (RPO) as of March 31, 2026, the Company’s Remaining Performance Obligation (RPO) was $2.0 million, of which $0.38 million is recorded as deferred revenue and $1.62 million is related to other non-cancellable contracted amounts. The Company expects approximately 71% of the RPO to be recognized as revenue over the twelve months ending March 31, 2027, based on contractual commitments and expected usage patterns. The gross amount of Booked Annual Recurring Revenue or bARR, (a non-GAAP measure, as defined below), signed in the first quarter of 2026 was $0.08 million, up from $0.01 million of gross bARR a year ago. The net amount of bARR was $0.08 million, compared to a negative $0.13 million of net bARR signed in the comparable period in 2025. The Q1 bARR is comprised of $0.03 million in Committed Annual Recurring Revenue (cARR) and $0.06 million in estimated Usage Above Commitments (UAC). The net amount of bARR reflects the deduction of the bARR of contracts previously included in reported bARR, due to certain customers experiencing delays in Production Go-Live timing, volume ramping and challenges meeting their contractual obligations. The amount of Annual Recurring Revenue or ARR, (a non-GAAP measure, as defined below) as of Q1 2026 was $1.9 million, compared to $1.2 million of ARR as of Q1 2025. See below for further definition and explanation of ARR and bARR, non-GAAP measures. Conference Call A conference call and webcast will be held today at 5:00p.m. EDT, hosted by authID Chief Executive Officer Rhon Daguro and Chief Financial Officer Ed Sellitto to discuss the financial results and provide a corporate update. To participate on the live conference call, please access this registration link and you will be provided with dial-in details. To avoid delays, participants are encouraged to dial into the conference call 15 minutes ahead of the scheduled start time. A live webcast of the call will also be available here and on the “Events & Presentations” page of the Company’s website at investors.authid.ai. Only participants on the live conference call will be able to ask questions. A replay of the event will also be available for 90 days at authID’s Investor Relations site. About authID Inc. authID® (Nasdaq: AUID) ensures enterprises “Know Who's Behind the Device™” for every customer or employee login and transaction through its easy-to-integrate, patented, biometric identity platform. authID quickly and accurately verifies a user's identity, leveraging a 1-in-1-billion False Positive Rate for the highest level of assurance, coupled with industry-leading speed and privacy-preserving technology. authID's IDX platform secures the distributed workforce of employees and contractors, while enforcing authorization and accountability for AI agents. By creating a biometric root of trust for each user, authID stops fraud at onboarding, prevents account takeover, detects and stops deepfakes, eliminates password risks and costs, and provides the fastest, frictionless, and most accurate user identity experience in the industry. Investor Relations Contacts authID Investor Relations [email protected] Forward-Looking Statements This Press Release includes “forward-looking statements.” All statements other than statements of historical facts included herein, including, without limitation, those regarding the future results of operations, growth and sales, potential contract signings, booked Annual Recurring Revenue (bARR) (and its components cARR and UAC), Annual Recurring Revenue (ARR), cash flow, cash position and financial position, business strategy, plans and objectives of management for future operations of both authID Inc. and its business partners, are forward-looking statements. Such forward-looking statements are based on a number of assumptions regarding authID’s present and future business strategies, and the environment in which authID expects to operate in the future, which assumptions may or may not be fulfilled in practice. Actual results may vary materially from the results anticipated by these forward-looking statements as a result of a variety of risk factors, including the Company’s ability to attract and retain customers; successful implementation of the services to be provided under new customer contracts and their adoption by customers’ users; the Company’s ability to compete effectively; changes in laws, regulations and practices; the increase in international tariffs and uncertainty over international trading conditions, changes in domestic and international economic and political conditions, the impact of the wars in Ukraine and the Middle East, inflationary pressures, changes in interest rates, and others. See the Company’s Annual Report on Form 10-K for the Fiscal Year ended December 31, 2025 filed at www.sec.gov and other documents filed with the SEC for other risk factors which investors should consider. These forward-looking statements speak only as to the date of this release and cannot be relied upon as a guide to future performance. authID expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this release to reflect any changes in its expectations with regard thereto or any change in events, conditions, or circumstances on which any statement is based. Non-GAAP Financial Information The Company provides certain non-GAAP financial measures in this statement. These non-GAAP key business indicators, which include Adjusted EBITDA, bARR and ARR should not be considered replacements for and should be read in conjunction with the GAAP financial measures. Management believes that Adjusted EBITDA, when viewed with our results under GAAP and the accompanying reconciliations, provides useful information about our period-over-period results. Adjusted EBITDA is presented because management believes it provides additional information with respect to the performance of our fundamental business activities and is also frequently used by securities analysts, investors, and other interested parties in the evaluation of comparable companies. We also rely on Adjusted EBITDA as a primary measure to review and assess the operating performance of our Company and our management. Adjusted EBITDA is a non-GAAP financial measure that represents GAAP net loss from continuing operations adjusted to exclude (1) interest expense, (2) interest income, (3) amortization, (4) stock-based compensation expense and certain other items management believes affect the comparability of operating results. Please see Table 1 below for a reconciliation of Adjusted EBITDA – continuing operations to net loss – continuing operations, the most directly comparable financial measure calculated and presented in accordance with GAAP. TABLE 1 Reconciliation of Loss from Continuing Operations to Adjusted EBITDA Continuing Operations. Management believes that bARR and ARR, when viewed with our results under GAAP, provide useful information about the direction of future growth trends of the Company’s revenues. We also rely on bARR as one of several primary measures to review and assess the sales performance of our Company and our management team in connection with our executive compensation. The Company defines Booked Annual Recurring Revenue or bARR, as the amount of annual recurring revenue represented by the estimated amounts of annual recurring revenue we believe will be earned under contracted orders, looking out eighteen months from the date of signing of each customer contract. This estimate is comprised of two components (1) Committed Annual Recurring Revenue (cARR), which represents the minimum amounts that customers are contractually committed to pay each year over the life of the contract and (2) Usage Above Commitments (UAC), which represents our estimate of the rate of annual recurring revenue arising from actual usage of our services above the contractual minimums, that we believe the Customer will achieve after 18 months. The net amount of bARR reflects the deduction of the bARR of contracts previously included in reported bARR, which were subject to attrition, or other downward adjustments during the quarter. The Company defines Annual Recurring Revenue or ARR, as the amount of recurring revenue recognized during the last three months of the relevant period as determined in accordance with GAAP, multiplied by four. bARR may be distinguished from ARR, as bARR does not take specifically into account the time to implement any contract for authID’s services, nor for any ramp in adoption, or seasonality of usage of our biometric products but is based on the assumption that 18 months after signing these matters will have been generally resolved. Furthermore, bARR is based on estimates of future revenues under particular contracts, whereas ARR, whilst also forward-looking, is based on historical revenues recognized in accordance with GAAP during the relevant period. A reconciliation of bARR and ARR to a GAAP measure is not provided as there are no comparable GAAP measures and we believe that any attempt at such reconciliation may be confusing to investors. bARR and ARR have limitations as analytical tools, and you should not consider them in isolation from, or as a substitute for, analysis of our results as reported under GAAP. Some of these limitations are: bARR & ARR should not be considered as predictors of future revenues but only as indicators of the direction in which revenues may be trending. Actual revenue results in the future as determined in accordance with GAAP may be significantly different to the amounts indicated as bARR or ARR at any time. bARR and ARR are to be considered “forward-looking statements” and subject to the same risks, as other such statements (see note on “Forward-Looking Statements” above). authID INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) authID INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS authID INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

DENVER, March 31, 2026 (GLOBE NEWSWIRE) -- authID® (Nasdaq: AUID) (“authID” or the “Company”), a leading provider of biometric identity verification and authentication solutions, today reported financial and operating results for the Fourth Quarter and Fiscal Year ended December 31, 2025. Fourth Quarter 2025 vs. Fourth Quarter 2024 Financial Summary Total revenue for the quarter was $0.4 million, compared to $0.2 million a year ago. Operating expenses were $4.5 million, compared to $4.9 million a year ago. Net loss was $4.0 million, or $0.28 per share, compared to a loss of $4.6 million, or $0.42 per share a year ago. Adjusted EBITDA Loss of $3.0 million (non-GAAP measure as defined below), compared with $4.1 million a year ago. Gross bARR (Booked Annual Recurring Revenue) of $0.1 million (non-GAAP measure as defined below), compared with $7.1 million a year ago. Fiscal Year 2025 vs. Fiscal Year 2024 Financial Summary Total revenue for the year was $2.0 million, compared to $0.9 million a year ago. ARR (Annual Recurring Revenue) was $1.8 million (non-GAAP measure as defined below), compared with $0.8 million a year ago. Operating expenses were $20.2 million, compared to $15.6 million a year ago. Net loss was $17.9 million, or $1.38 per share, compared to a loss of $14.3 million, or $1.40 per share a year ago. Adjusted EBITDA Loss of $14.4 million (non-GAAP measure as defined below), compared with $11.9 million a year ago. Gross bARR (Booked Annual Recurring Revenue) of $2.4 million (non-GAAP measure as defined below), compared with $9.0 million a year ago. "2025 was the year the world recognized the deterministic identity problem that authID was built to solve in the new world of AI," said Rhon Daguro, authID's Chief Executive Officer. "Our published wins in 2025 and 2026, including a top-20 global retailer, a global technology leader in NESIC, a subsidiary of NEC, a fintech platform serving over 100 financial institutions and a global retailer of personal care products, validate that our biometric authentication platform technologies are setting the standard for identity authentication across a range of industries. At the same time, our product platform expanded meaningfully, with PrivacyKey earning independent industry recognition, the launch of IDX for distributed workforces, and the unveiling of our authID Mandate framework for enterprise Agentic AI governance. “As a result, we are in the final stages of our sales cycles with global multi-nationals who are the leaders in their respective industries ranging from financial services, professional services, manufacturing, high tech AI, to retail and healthcare,” added Daguro. “This includes 6 companies that are in the Proof of Concept (POC) stage in the month of March alone. We have reached another critical milestone at authID, which is the significant number of large customers entering live production pilots all at once, which require major resource and time investments by both sides. All our customers are looking to authID to solve critical identity problems that every company is facing and we are excited about our future as we continue to add large customers using the authID technology.” Recent Business and Operational Highlights Signed a full production agreement with a top-20 global retailer — one of the largest retail chains in the world — to deploy authID's PrivacyKey technology to secure identity verification and password reset for its back-office workforce, with a contractual pathway to expand into retail stores worldwide. The customer is preparing for an expanded rollout of authID’s identity platform after reporting strong operational results, comprising enrollment increase of 472% for users attaching a biometric to their account, scaling more than 5x while delivering a 97.0% acceptance rate, along with very low abandonment rates. This represents meaningful enterprise-scale validation of authID's biometric authentication platform. Expanded the Company's strategic partnership with NESIC, a subsidiary of NEC Corporation, a $20 billion global technology leader. Phase one of a multi-phase strategy is live, embedding authID's biometric identity verification and authentication into NESIC's Symphonict Trust platform for enterprise workforce onboarding in the Japanese market. Jointly launched Identity Exchange (IDX™), providing scalable identity assurance for distributed workforces, supply chains, and AI Agents. By binding human identity to AI Agents through biometric authentication, IDX directly addresses the governance and accountability gap that currently limits enterprise adoption of Agentic AI and extends authID into the Verifiable Credentials market — dramatically expanding authID's total addressable market. Signed an agreement with MajorKey Technologies, a premier identity security firm and certified Microsoft Entra Suite services partner, to bring authID's Proof™ technology to Microsoft customers globally. MajorKey subsequently launched IDProof+, developed in collaboration with authID, delivering high-assurance biometric identity verification into the Microsoft ecosystem and opening a significant new distribution channel for authID. Signed an agreement with a digital infrastructure platform serving more than 100 financial institutions — banks with assets ranging from $10 billion to $150 billion — to integrate authID's Proof™ and PrivacyKey™ technologies into its universal onboarding and customer management platform. Signed an agreement with an international bank for identity onboarding, verification, and authentication. authID and partner TurboCheck selected by global workforce solutions provider to protect its hiring, onboarding, and daily workforce operations from a fast-growing wave of employment identity fraud. Integrated with ServiceNow, adding authID to the ServiceNow Store, making authID accessible to over 8400 contact centers worldwide, including 85% of Fortune 500 companies. Signed partner deals with a background screening tech innovator for enhanced reusable digital identity credentials and with a pioneer in financial threat intelligence securing the delivery of their “Intelligence as a Service” for financial organizations with cryptographic identity assurance and full auditability. Financial Results for the Fourth Quarter and Fiscal Year Ended December 31, 2025 Gross revenue for the three months ended December 31, 2025 was $0.6 million, compared with $0.2 million a year ago. Net revenue, which reflects estimated concessions in the Fourth quarter totaling $0.2 million, was $0.4 million, compared with $0.2 million a year ago. Total net revenue for the twelve months ended December 31, 2025 which reflects estimated concessions totaling $0.9 million, was $2.0 million, compared with $0.9 million a year ago. Our gross and net revenue were impacted by certain accounting adjustments required to reflect challenges with two customer contracts, as further explained in the Annual financial statements filed today. Operating expenses for the three months ended December 31, 2025, were $4.5 million, compared to $4.9 million a year ago. Operating expenses for the twelve months ended December 31, 2025 were $20.2 million, compared with $15.6 million in the year-ago period. The 2025 increase is primarily due to a number of factors including increased headcount and continued investment in sales and R&D, as well as shares issued to management advisors and credit loss expense related to certain customer contracts of approximately $0.8 million. Operating expenses plateaued in Q4 as expenses held steady vs. last year. Net loss for the three months ended December 31, 2025 was $4.0 million, of which non-cash charges were $1.1 million, compared with a net loss of $4.6 million a year ago, of which non-cash charges were $0.6 million. Net loss for the twelve months ended December 31, 2025 was $17.9 million, of which non-cash charges were $3.8 million, compared with a net loss of $14.3 million a year ago, of which non-cash charges were $2.8 million. Loss per share for the three months ended December 31, 2025 was $0.28, compared with $0.42 a year ago. Loss per share for the twelve months ended December 31, 2025 was $1.38, compared with $1.40 a year ago. Adjusted EBITDA loss (a non-GAAP measure, as defined below) was $3.0 million for the three months ended December 31, 2025, compared with a loss of $4.1 million a year ago. Adjusted EBITDA loss was $14.4 million for the twelve months ended December 31, 2025, compared with a loss of $11.9 million a year ago. The increase in adjusted EBITDA loss is primarily driven by the increase in headcount investment in sales and R&D. Please refer to Table 1 for reconciliation of net loss to adjusted EBITDA (a non-GAAP measure). Remaining Performance Obligation (RPO) as of December 31, 2025, was $2.2 million, of which $0.5 million is held as deferred revenue and $1.7 million is related to other non-cancellable contracted amounts, compared to RPO of $14.3 million as of December 31, 2024. The Company expects to recognize the full RPO of $2.2 million over the entire life of the contracts. The gross amount of Booked Annual Recurring Revenue or bARR, (a non-GAAP measure, as defined below), signed in the fourth quarter of 2025 was $0.1 million, down from $7.1 million of gross bARR a year ago. The net amount of bARR was a negative $1.0 million, compared to a positive $6.9 million of net bARR signed in the comparable period in 2024. The Q4 bARR is comprised of $0.03 million in Committed Annual Recurring Revenue (cARR) and $0.04 million in estimated Usage Above Commitments (UAC). The gross amount of Booked Annual Recurring Revenue or bARR, signed in 2025 was $2.4 million, down from $9.0 million of gross bARR a year ago. The net amount of bARR was a negative $6.3 million compared to a positive $7.4 million of net bARR signed in 2024. The 2025 bARR is comprised of $1.06 million in Committed Annual Recurring Revenue (cARR) and $1.37 million in estimated Usage Above Commitments (UAC). The net amount of bARR reflects the deduction of the bARR of contracts previously included in reported bARR, due to certain customers experiencing delays in Production Go-Live timing, volume ramping and challenges meeting their contractual obligations. The amount of Annual Recurring Revenue or ARR, (a non-GAAP measure, as defined below) as of Q4 2025 was $1.8 million, compared to $0.8 million of ARR as of Q4 2024. See below for further definition and explanation of ARR and bARR, non-GAAP measures. Conference Call A conference call and webcast will be held today at 5:00p.m. EDT, hosted by authID Chief Executive Officer Rhon Daguro and Chief Financial Officer Ed Sellitto to discuss the financial results and provide a corporate update. To participate on the live conference call, please access this registration link and you will be provided with dial-in details. To avoid delays, participants are encouraged to dial into the conference call 15 minutes ahead of the scheduled start time. A live webcast of the call will be available at webcast registration and on the “Events & Presentations” page of the Company’s website at investors.authid.ai. Only participants on the live conference call will be able to ask questions. A replay of the event will also be available for 90 days at authID’s Investor Relations site. About authID Inc. authID® (Nasdaq: AUID) ensures enterprises “Know Who's Behind the Device™” for every customer or employee login and transaction through its easy-to-integrate, patented, biometric identity platform. authID quickly and accurately verifies a user's identity, leveraging a 1-in-1-billion False Positive Rate for the highest level of assurance, coupled with industry-leading speed and privacy-preserving technology. authID's IDX platform secures the distributed workforce of employees and contractors, while enforcing authorization and accountability for AI agents. By creating a biometric root of trust for each user, authID stops fraud at onboarding, prevents account takeover, detects and stops deepfakes, eliminates password risks and costs, and provides the fastest, frictionless, and most accurate user identity experience in the industry. Investor Relations Contacts authID Investor Relations [email protected] Forward-Looking Statements This Press Release includes “forward-looking statements.” All statements other than statements of historical facts included herein, including, without limitation, those regarding the future results of operations, growth and sales, potential contract signings, booked Annual Recurring Revenue (bARR) (and its components cARR and UAC), Annual Recurring Revenue (ARR), cash flow, cash position and financial position, business strategy, plans and objectives of management for future operations of both authID Inc. and its business partners, are forward-looking statements. Such forward-looking statements are based on a number of assumptions regarding authID’s present and future business strategies, and the environment in which authID expects to operate in the future, which assumptions may or may not be fulfilled in practice. Actual results may vary materially from the results anticipated by these forward-looking statements as a result of a variety of risk factors, including the Company’s ability to attract and retain customers; successful implementation of the services to be provided under new customer contracts and their adoption by customers’ users; the Company’s ability to compete effectively; changes in laws, regulations and practices; the increase in international tariffs and uncertainty over international trading conditions, changes in domestic and international economic and political conditions, the impact of the wars in Ukraine and the Middle East, inflationary pressures, changes in interest rates, and others. See the Company’s Annual Report on Form 10-K for the Fiscal Year ended December 31, 2025 filed at www.sec.gov and other documents filed with the SEC for other risk factors which investors should consider. These forward-looking statements speak only as to the date of this release and cannot be relied upon as a guide to future performance. authID expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this release to reflect any changes in its expectations with regard thereto or any change in events, conditions, or circumstances on which any statement is based. Non-GAAP Financial Information The Company provides certain non-GAAP financial measures in this statement. These non-GAAP key business indicators, which include Adjusted EBITDA, bARR and ARR should not be considered replacements for and should be read in conjunction with the GAAP financial measures. Management believes that Adjusted EBITDA, when viewed with our results under GAAP and the accompanying reconciliations, provides useful information about our period-over-period results. Adjusted EBITDA is presented because management believes it provides additional information with respect to the performance of our fundamental business activities and is also frequently used by securities analysts, investors, and other interested parties in the evaluation of comparable companies. We also rely on Adjusted EBITDA as a primary measure to review and assess the operating performance of our Company and our management. Adjusted EBITDA is a non-GAAP financial measure that represents GAAP net income (loss) adjusted to exclude (1) interest expense and debt discount and debt issuance costs amortization expense, (2) interest income, (3) provision for income taxes, (4) depreciation and amortization, (5) stock-based compensation expense and certain other items management believes affect the comparability of operating results. Please see Table 1 below for a reconciliation of Adjusted EBITDA – continuing operations to net loss – continuing operations, the most directly comparable financial measure calculated and presented in accordance with GAAP. TABLE 1 Reconciliation of Loss from Continuing Operations to Adjusted EBITDA Continuing Operations. Management believes that bARR and ARR, when viewed with our results under GAAP, provide useful information about the direction of future growth trends of the Company’s revenues. We also rely on bARR as one of several primary measures to review and assess the sales performance of our Company and our management team in connection with our executive compensation. The Company defines Booked Annual Recurring Revenue or bARR, as the amount of annual recurring revenue represented by the estimated amounts of annual recurring revenue we believe will be earned under contracted orders, looking out eighteen months from the date of signing of each customer contract. This estimate is comprised of two components (1) Committed Annual Recurring Revenue (cARR), which represents the minimum amounts that customers are contractually committed to pay each year over the life of the contract and (2) Usage Above Commitments (UAC), which represents our estimate of the rate of annual recurring revenue arising from actual usage of our services above the contractual minimums, that we believe the Customer will achieve after 18 months. The net amount of bARR reflects the deduction of the bARR of contracts previously included in reported bARR, which were subject to attrition, or other downward adjustments during the quarter. The Company defines Annual Recurring Revenue or ARR, as the amount of recurring revenue recognized during the last three months of the relevant period as determined in accordance with GAAP, multiplied by four. bARR may be distinguished from ARR, as bARR does not take specifically into account the time to implement any contract for authID’s services, nor for any ramp in adoption, or seasonality of usage of our biometric products but is based on the assumption that 18 months after signing these matters will have been generally resolved. Furthermore, bARR is based on estimates of future revenues under particular contracts, whereas ARR, whilst also forward-looking, is based on historical revenues recognized in accordance with GAAP during the relevant period. A reconciliation of bARR and ARR to a GAAP measure is not provided as there are no comparable GAAP measures and we believe that any attempt at such reconciliation may be confusing to investors. bARR and ARR have limitations as analytical tools, and you should not consider them in isolation from, or as a substitute for, analysis of our results as reported under GAAP. Some of these limitations are: bARR & ARR should not be considered as predictors of future revenues but only as indicators of the direction in which revenues may be trending. Actual revenue results in the future as determined in accordance with GAAP may be significantly different to the amounts indicated as bARR or ARR at any time. bARR and ARR are to be considered “forward-looking statements” and subject to the same risks, as other such statements (see note on “Forward-Looking Statements” above).

This article first appeared on GuruFocus. Total Revenue (Q4 2025): $0.4 million, up from $0.2 million in Q4 2024. Total Revenue (Full Year 2025): $2.0 million, a 129% increase from $0.9 million in 2024. Operating Expenses (Q4 2025): $4.5 million, down from $4.9 million in Q4 2024. Operating Expenses (Full Year 2025): $20.2 million, up from $15.6 million in 2024. Net Loss (Q4 2025): $4.0 million, improved from $4.6 million in Q4 2024. Net Loss (Full Year 2025): $17.9 million, compared to $14.3 million in 2024. Net Loss Per Share (Q4 2025): $0.28, improved from $0.42 in Q4 2024. Net Loss Per Share (Full Year 2025): $1.38, slightly improved from $1.40 in 2024. Adjusted EBITDA Loss (Q4 2025): $3.0 million, compared to $4.1 million in Q4 2024. Adjusted EBITDA Loss (Full Year 2025): $14.4 million, up from $11.9 million in 2024. Annual Recurring Revenue (ARR) Q4 2025: $1.8 million, up from $0.8 million in Q4 2024. Booked Annual Recurring Revenue (bARR) Full Year 2025: $2.4 million, down from $9.0 million in 2024. Remaining Performance Obligation (RPO) as of Dec 31, 2025: $2.2 million, down from $14.3 million in 2024. Warning! GuruFocus has detected 3 Warning Signs with AUID. Is AUID fairly valued? Test your thesis with our free DCF calculator. Release Date: March 31, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. AuthID Inc (NASDAQ:AUID) has seen significant market interest and engagement from major industry players, indicating strong demand for its technology. The company announced a full production agreement with a top 20 global retailer, marking a significant deployment of its PrivacyKey technology. AuthID Inc (NASDAQ:AUID) has expanded its partnerships, including a collaboration with MajorKey Technologies and integration into the Microsoft ecosystem. The company has been recognized for its technology, with PrivacyKey winning the Best Digital Trust solution for ID verification and authentication at the 2025 PayTech Awards. AuthID Inc (NASDAQ:AUID) has a growing pipeline of over $30 million in active engagements with large enterprise accounts, indicating potential future revenue growth. Two early large engagements underperformed, resulting in concessions of approximately $884,000 for the full year. The company's full-year gross bARR of $2.4 million fell short of the $6 million revised target due to longer-than-expected sales cycles. Operating expenses increased to $20.2 million for the full year, primarily due to headcount investment in sales and R&D. Net loss for the full year was $17.9 million, an increase from the previous year's net loss of $14.3 million. The remaining performance obligation (RPO) decreased to $2.2 million, down from $14.3 million the previous year, due to reductions in contracted minimum fees. Q: Can you elaborate on the strategic significance of the partnerships announced in 2025? A: Rhoniel Daguro, CEO: The partnerships we announced in 2025, such as with MajorKey Technologies and NESIC, are crucial as they expand our reach into major ecosystems like Microsoft and NEC. These collaborations allow us to integrate our technology into established platforms, enhancing distribution and credibility. For instance, our partnership with MajorKey brings our biometric identity verification to Microsoft customers globally, significantly broadening our market access. Q: What are the key challenges AuthID faced with its early large engagements, and how are they being addressed? A: Rhoniel Daguro, CEO: Two early large engagements underperformed, resulting in concessions of approximately $884,000 for the full year. These challenges are behind us, and we are not recognizing further revenue from these contracts until revised terms are reached. Despite this, our underlying revenue in Q4 doubled compared to the previous year, indicating strong growth in our core business. Q: How is AuthID leveraging AI to enhance its technology offerings? A: Rhoniel Daguro, CEO: We are leveraging AI coding platforms to rapidly enhance our technology without significantly increasing our engineering headcount. Our PrivacyKey product, which provides biometric authentication without storing biometrics, is now live at enterprise scale. Additionally, our Mandate framework addresses AI agent accountability, binding agents to verified human sponsors using biometric identity, which is crucial for enterprise AI deployments. Q: Can you provide more details on the financial performance and outlook for 2026? A: Edward Sellitto, CFO: Despite setbacks, our Q4 revenue was $0.4 million, doubling from last year. For 2025, total revenue was $2.0 million, a 129% increase year-over-year. We expect RPO growth to resume in 2026 as we close additional enterprise deals. Our ARR as of Q4 was $1.8 million, reflecting our efforts to sign and go live with market leaders. Q: What is the current status of AuthID's pipeline and market demand? A: Rhoniel Daguro, CEO: We have a pipeline of over $30 million in active engagements with large enterprise accounts. The market demand for our solutions is high, and while sales cycles are longer than anticipated, the trajectory is positive. Our technology is gaining traction, and we are in advanced engagements with some of the most sophisticated enterprises globally. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Nov. 12, 2025 at 5 p.m. ET Chief Executive Officer — Rhoniel A. Daguro Chief Financial Officer — Edward C. Sellitto Chief Technology Officer — Tom Szoke General Counsel — Graham N. Arad Need a quote from a Motley Fool analyst? Email [email protected] Operator: Good day, and thank you for standing by. Welcome to the authID Inc. Q3 Fiscal Year 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question and answer session. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Graham N. Arad, General Counsel. Please go ahead. Graham N. Arad: Thank you, Operator. Greetings and good afternoon. This is Graham N. Arad, General Counsel of authID Inc. Welcome to the authID Inc. third quarter 2025 results conference call. As a reminder, this conference is being recorded. Joining me on today's call are our CEO, Rhoniel A. Daguro, our CFO, Edward C. Sellitto, and our founder and CTO, Tom Szoke. By now, you should have access to today's press release announcing our third quarter 2025 results. If you have not received this, the release can be found on our website at investors.authid.ai under the news and events section. Throughout this conference call, we will be presenting certain non-GAAP financial information. This information is not calculated in accordance with GAAP and may be calculated differently from other companies' similarly titled non-GAAP information. Quantitative reconciliation of our non-GAAP adjusted EBITDA information to the most directly comparable GAAP financial information appears in today's press release. Before we begin our formal remarks, let me remind everyone that part of our discussion today will include forward-looking statements. Such forward-looking statements are not guarantees of future performance. Therefore, you should not put undue reliance on them. These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect. Some of these risks are mentioned in today's press release. Others are discussed in our Form 10-Ks and other filings made available at www.sec.gov. Finally, if you are listening to this call via the webcast, you will be able to see the results presentation and advance the slides yourself as prompted by our speakers. I'd now like to introduce our CEO, Rhoniel A. Daguro. Rhoniel A. Daguro: Thank you, Graham. Thank you all for joining us today. I will walk you through our top-line performance, our customer and partner updates, our product and technology updates, and our priorities for the remainder of the year. Since becoming CEO, our management team has sought to build a balanced portfolio of both FAST 100 companies with potential for explosive growth and FAT 100 companies with stable operations and strong balance sheets. Initially, we focused on the FAST 100 as authID Inc. had not yet built the reputation to be credible with the FAT 100. That began to change in 2025 with the addition of several FAT 100 clients I will be sharing with you today. While making great progress this year with numerous prospective key customers, unfortunately, we saw two major early FAST 100 engagements underperform, resulting in negative net revenue for the third quarter. In 2024, we signed a customer contract with clear assurances and the expectation that the customer would meet their contractual obligation. However, reflected in our financials, the customer faced significant challenges to meet the agreed-upon requirements. As disclosed in our 10-Q, we proactively stopped recognizing revenue from them. We are still in active conversations with this customer, who continues to make introductions to more potential customers, but we do not plan to recognize any further revenue from them until we agree on revised terms and they complete the changes they are making to implement their new business model. Regarding the second customer contract, we recorded approximately $700,000 in estimated concessions that relate to an annual usage minimum fee payable at the end of the year. While this customer is experiencing its own business challenges, they remain a valued and strategic partner to us as we believe their activity will ramp over time. But we have adjusted our revenue to reflect this timing. The accounting adjustments for these two contracts drove the negative net revenue for the quarter. On the next slide, in terms of new contracts, in the third quarter, we booked two large enterprise customers and we booked two smaller customers, which were not enough to offset the revenue adjustments. These four contracts represent $200,000 in BAR for 2025. The first contract, as announced in a press release, is one of the largest global retailers based in the UK and represents significant validation of authID Inc.'s technology. They are initially using authID Inc.'s biometric authentication to protect their back-office employee workforce and call centers. The second contract is a phase one of a multiphase strategy where we embed authID Inc. inside NESIC's platform. NESIC, a subsidiary of NEC, will use authID Inc. for identity verification and employee onboarding. The third contract is with the Pipeline Group, a fast-growing lead generation company that will use authID Inc. to onboard remote workers, monitor worker activity, and authenticate remote workers into core systems. This represents our entry into the growing lead generation market. The final contract is with an international bank for identity onboarding, identity verification, and authentication. Onto the next slide. It's important to note that authID Inc.'s new customer list and target customer list is much different today than a year ago. The caliber and the scale of customer opportunities we are now engaged in have improved significantly and reflect the excitement around our unique technology. To that end, I think it is important for me to share some of the descriptions of the customers we are actively engaged with. While we are not permitted to provide the names of these customers for contractual reasons, some notable examples include household names across target industries that will expand our reach. First, a global leader in payroll technology, the largest global biometric hardware provider, a global leader in digital payments, a tier-one AI chip manufacturer, global professional sports organizations, one of the largest European retail chains, a major US healthcare network, a global cosmetics retailer, a national US specialty retailer, a leading US energy company, a Fortune 500 identity and access management company, a major luxury hotel operator, and one of the largest hotel brands. Again, these are not just targets but active engagements with industry principals. Even a year ago, none of these top-tier organizations would have considered authID Inc. Today, they are actively engaging with us because of the quality of our technology. Just this list alone represents over $20 million in BAR authID Inc. is actively engaged in closing. Our goal was to close enough of these opportunities to achieve our $18 million BAR target for 2025. Unfortunately, due to the longer sales cycles of these enterprise deals, our new BAR target for 2025 is now reduced to $6 million. Moving to the next slide. The strongest endorsement of our technology comes from our current channel partners. We have over 25 partners, many of which are the most established category leaders in their respective markets. Let me tell you about three partners specifically. Last quarter, I described our enthusiasm and appreciation for our partnership with NESIC, a part of NEC Corporation, which is a $20 billion global company that can work with anyone they choose. They chose authID Inc. An incredibly powerful statement about our technology. AuthID Inc. is now embedded in NESIC's software. Building on this partnership, NESIC and authID Inc. have agreed to work together to deliver enterprise identity management and AgenTek AI security solutions. Another key partner is Prove, one of the largest identity security platforms in the industry. Prove has selected authID Inc.'s PrivacyKey product as the biometric authentication solution for their next-generation platform. The unique cryptographic signing capability of PrivacyKey opens new business opportunities for Prove and authID Inc. Last quarter, I mentioned that we were working on signing a joint customer with Prove. I'm happy to note that this joint customer, a fintech company that provides digital infrastructure for more than 150 banks, has contracted with authID Inc. directly to launch our technology into their platform. We signed a contract with them in October, with their first bank going live next month. Finally, MajorKey, one of the largest Microsoft providers of identity solutions and services, announced last week their launch of ID Proof Plus leveraging biometric technology developed in collaboration with authID Inc. This is another example of companies launching their most important services and capabilities on authID Inc.'s core technology. Just discussed how our partnerships lead us to new opportunities. Now I'm going to talk about our greatest strengths, authID Inc.'s products and technology. On the next slide, as part of the foundational rebuild needed when I joined authID Inc., we had to make significant product breakthroughs to unlock enterprise adoption, specifically for our FAT 100 large enterprise accounts. In response to this need, we introduced two major innovations that I've already mentioned. The first one is PrivacyKey, which is biometric authentication without storing biometrics. As expected, with the existing contract signed, PrivacyKey adoption is ramping. The next one is IDX, which provides enterprise scalability and identity assurance for distributed workforces and supply chains and biometrically secures humans, nonhumans, and AI agents. Let me comment on the term AI agents. On the next slide, AI agents represent a massive opportunity in the market today. Industry analysts project trillions to flow through AgenTek AI commerce and hundreds of billions of that will be for AgenTek AI security. We've already heard from customers that they are slow-rolling the launch of AgenTek AI projects due to the lack of governance because unaccountable AI agents bring substantial risk of misuse and abuse. In response, we have added new capabilities to our IDX platform to tie each AI agent to a human to create accountability for all AI agent actions and behaviors. IDX provides accountability, compliance, security, and audit for the AgenTek AI-driven enterprise, and I believe we are going to be the most important company leading that category. The development of these innovations was required to deliver strong foundational capabilities and tech innovation. Many customers, partners, and industry experts acknowledge we have some of the best technology in the market. If you pick any industry, you're talking to the number one and the number two in that space. The best companies want to use the best technology available, and I believe we have that capability, which brings me to my final slide. The market is starting to value biometric solutions as an indispensable technology. To us, this has been obvious for years, but the market is waking up to the identity risks of AI. I say all of this to reiterate that authID Inc. is viewed as one of the few leaders in the marketplace for biometric authentication, AI deepfake detection, and now AgenTek AI security. The demand is so high for biometrics that a major identity company just recently acquired a biometrics company. We have received incredible validation of our technology with some of the largest and most valuable companies in the world. Therefore, our mandate for the remainder of the year into 2026 is clear: continue to serve the companies that entrust us to manage their biometric authentication needs and win the $20 million-plus in enterprise deals we are currently engaged in. We have made incredible progress to date. As a shareholder myself, I've never been more excited about the future of authID Inc. Thank you very much for listening. And now I'll turn it over to our CFO, Edward C. Sellitto. Edward C. Sellitto: Thank you, Ron. Thank you all for joining us today. I'll now review the financial results for the quarter. As Ron discussed earlier, our third quarter was impacted by contractual challenges with two customers. Our resulting third-quarter revenue adjustments exceeded our sales in the quarter, resulting in negative net revenue. I will expand on these adjustments in a moment. Looking at our GAAP results, for this quarter, we are breaking out our revenue into both gross and net revenue. Net revenue is equal to gross revenue minus any customer discounts and concessions. Gross revenue for the quarter was $600,000 compared to $200,000 last year. Net revenue, which reflects Q3 concessions totaling $700,000, was a negative $100,000 compared with a positive $200,000 last year. For additional context, I'll expand on Ron's earlier comments regarding the two contracts impacting net revenue. The first contract is with a partner signed in October 2024, which is delayed in ramping their usage due in part to a change in their own go-to-market strategy as well as recent challenges that arose with doing business in international markets. After we experienced delays in payment from this customer in 2025, the customer ultimately made a partial payment in the third quarter but requested a contract amendment before committing to making further payments. Since then, we have received no further payments nor have we amended our contract. Until any further negotiations are concluded, we have ceased revenue recognition for this contract and adjusted contract balances to reflect only the amount, approximately $400,000, that has been paid to date. The second contract that impacted our third-quarter revenue relates to the $700,000 in concessions estimated to be granted to a customer who is also delayed in their usage and is tracking significantly below their annual minimum usage commitment. This customer was signed in 2023 and began ramping in 2024 toward their commitment. The customer's usage declined unexpectedly due to shifts in their marketing strategy and remained significantly below the minimum commitment by September 30, 2025, despite consistent communication from the customer that they projected their usage to resume its growth. That said, the customer has paid all amounts due for their actual usage in compliance with our agreements. Given the customer's strategic importance to the company, as well as management's belief in their future anticipated usage growth and ongoing new business development opportunities, the company expects to make a concession on the annual minimum fee in order to maintain the relationship going forward. Revenue and performance obligations for this customer were adjusted in the third quarter to account for the estimated concession. Before moving on to the remaining financial results, I want to reiterate Ron's sentiment. We hope these customers can deliver growth in their business to fulfill our signed contracts. We are encouraged by the fact that we maintain relationships with each customer, are able to collect partial payments, and have year-over-year growth in our remaining customer base. We also proactively addressed this issue by focusing our efforts to work with larger, established enterprise organizations. Moving on to the remaining GAAP metrics, operating expenses for Q3 were $5.1 million compared to $3.8 million a year ago. The year-over-year increase is primarily due to increased headcount and investment in sales and R&D as we continue to execute our enterprise sales strategy. Net loss for the quarter was $5.2 million, of which non-cash charges were $1.1 million. This compares to a net loss of $3.4 million for the same period last year, which included $600,000 in non-cash charges. Net loss per share for the quarter was $0.38, compared with $0.31 a year ago. Turning to RPO on the next slide, remaining performance obligation, or RPO, represents the minimum revenue expected to be recognized from our signed contracts based on our customers' contractual commitments. As of September 30, 2025, our total RPO was $3.6 million, a decrease of approximately $10.9 million over the prior quarter as we recognized contracted revenue in Q3 and adjusted for payment issues and concessions related to the customer contracts I described earlier. Our RPO for the quarter is slightly below the RPO at the same time last year, which was $3.8 million. The combination of the one-off challenges we incurred with earlier contracts and our resulting proactive shift to pursue major enterprise customers with longer sales cycles has resulted in a temporary decline in our RPO, which we expect to resume its upward trend as we gain traction closing deals in our pipeline in the coming months. On to our non-GAAP results on the next slide, adjusted EBITDA loss was $4.1 million for Q3, compared with a $2.9 million loss for the same period last year. As described with our operating expense results, the year-over-year increase in EBITDA loss is primarily due to increased headcount and investment in sales and R&D. Next is annual recurring revenue, or ARR, which is defined as the amount of recurring revenue recognized during the last three months of the relevant period multiplied by four. ARR as of Q3 is $1.7 million, compared to $1 million of ARR as of Q3 2024. The year-over-year growth reflects our proactive efforts to sign and go live with established market leaders, including Prove Identity and the major global retailers signed this year. Turning to BAR, or booked annual recurring revenue, which is the projected amount of annual recurring revenue we believe will be earned under contracted orders, looking at eighteen months from the date of signing of each customer contract. The gross amount of BAR signed in 2025 was $200,000, down from $1.15 million of gross BAR a year ago. The decrease in BAR for the quarter is a result of the longer sales cycles associated with our enterprise deals as we progress through these more expensive sales conversations. As previously explained during our quarterly earnings call, BAR comprises two components, which we refer to as CAR and UAC. CAR, or committed annual recurring revenue, represents the total annual customer contractual commitment through fixed license fees and minimum usage commitments. These commitments are directly recognized as revenue in each contract year after each customer goes live with the service. Q3 2025 CAR represents $110,000, approximately 58% of reported BAR. UAC, or estimated usage above commitment, is an estimate of annual customer usage that will exceed contractual commitments. Q3 UAC represents the remaining $80,000, or 42% of reported BAR. Turning to our revenue growth stages on the next slide, I'll conclude by revisiting our progress aligned to the revenue growth stages we report each quarter. The first milestone we use to monitor our growth is bookings as measured by BAR. Through Q3, we realized a total gross BAR of $2.4 million. We've seen the momentum build with a number of new enterprise prospects in our pipeline, and we've seen others progress to more advanced sales stages. While the timeline for larger enterprise deals is drawing out longer than expected, the demand for biometric solutions and excitement over our technology is there from our customers and prospects. We're focused on bringing more of these deals with market-leading organizations over the finish line as we exit 2025. The next milestone is our remaining performance obligation, or RPO. As I detailed earlier, as of Q3, we have approximately $3.6 million in RPO, a number that we expect to climb back towards its previous levels as our bookings come in during the coming months. Our third milestone is revenue recognized in accordance with GAAP. Our Q3 year-to-date revenue of $1.6 million continues to surpass our 2024 full-year revenue, and we expect this growth to continue in Q4 as our core customers continue to go live and ramp. As we've called out in prior earnings calls, customer retention and expansion remain an important focus of ours, particularly in establishing that our customers get value from using our solutions and want to continue working with us as their needs grow and we offer new product capabilities. I'll end by saying that despite the turbulence we've faced as a younger company, we are witnessing a growing market, particularly in the enterprise, that is increasingly turning to biometrics. We're watching our prospects' excitement to engage as we demonstrate our solutions. As we've already started to do, I strongly believe we can continue to sign up large household brand names to use authID Inc. to secure their workforce and their customers. I hope that at least a few will even allow us to reveal their names to you all and share in our excitement along the way. With that, Operator, we'd now like to open up for questions. Operator: Certainly. As a reminder, to ask a question, please press 11 on your telephone and wait for your name to be announced. And we do have a question in queue. Rhoniel A. Daguro: One moment. Operator: At this time, I would like to turn the call to Rhoniel A. Daguro, CEO, for closing remarks. Rhoniel A. Daguro: Thank you. We'd like to thank everyone for listening to today's call. If you have any further questions about our progress, please reach out to Investor Relations at [email protected]. We'd be happy to address the questions accordingly. We look forward to speaking with you when we report our full-year results in March. Thank you again for joining us. Operator: And this concludes today's program. Thank you for participating. You may now disconnect. Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this. On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. 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Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. authID (AUID) Q3 2025 Earnings Call Transcript was originally published by The Motley Fool

DENVER, Nov. 12, 2025 (GLOBE NEWSWIRE) -- authID® (Nasdaq: AUID) (“authID” or the “Company”), a leading provider of biometric identity verification and authentication solutions, today reported financial and operating results for the third quarter ended September 30, 2025. Third Quarter 2025 vs. Third Quarter 2024 Financial Summary Gross revenue for the quarter was $0.6 million, compared to $0.2 million a year ago. Net revenue for the quarter, after accounting for one-time concessions, was negative $(0.1) million, compared with $0.2 million a year ago Operating expenses were $5.1 million, compared to $3.8 million a year ago. Net loss was $5.2 million, or $0.38 per share, compared to a loss of $3.4 million, or $0.31 per share a year ago. Adjusted EBITDA Loss of $4.1 million (non-GAAP measure as defined below), compared with $2.9 million a year ago. Gross bARR (Booked Annual Recurring Revenue) of $0.2 million (non-GAAP measure as defined below), compared with $1.2 million a year ago. “2025 has been a transformational year for authID, and we continued to make strong progress in the third quarter,” said Rhon Daguro, authID’s Chief Executive Officer. “While we’ve taken deliberate steps to focus our pipeline on large enterprise accounts and navigate short-term revenue impacts, our growing momentum with some of the world’s most respected enterprises and technology partners underscores the strength of our platform and strategy. Over the past year, we’ve evolved from a promising technology concept into a trusted partner for global leaders in retail, finance, and identity security. The validation we’re seeing from companies like NESIC, Prove, MajorKey, and a top-tier global retailer confirms that authID’s biometric authentication and Agentic AI security technologies are setting new standards for accountability and trust.” Recent Business and Operational Highlights Signed a full production agreement with a top 20 global retailer based in Europe, for authID’s solution to secure its identity verification and password reset system, initially for its back office workforce, with a view to expansion into their retail stores worldwide. This followed a successful live production trial of our solution. By being adopted by one of the world’s largest retailers, authID is proving that enterprises can effectively protect their workforce with authID’s cutting-edge biometric technology that puts privacy first. This deployment represents meaningful validation that authID’s products meet enterprise customers’ demands for state-of-the-art digital identity. Launched Identity Exchange or IDX™, one of the biggest advances in the identity industry, with NESIC, a subsidiary of NEC Corporation, a leader in integrated IT and network solutions for digital transformation. IDX provides enterprise scalability and identity assurance for distributed workforces and supply chain, and biometrically secures humans, robots, and AI Agents. The lack of accountability and trust in the use of Agentic AI technology, is a huge concern for Enterprise CEOs that currently limits its full scale use in their companies. Without the proper governance and controls in place, companies risk massive operational impacts and financial liabilities. By binding the human identity to the AI Agent, IDX provides the needed accountability to allow Agentic AI solutions to operate in Enterprise networks with trust and security. This launch dramatically increases the Company’s total addressable market in the identity management and the Agentic AI industry. Signed an agreement for the first phase of a multi-phase strategy to integrate authID’s identity verification and biometric authentication into NESIC’s Symphonict Trust platform, providing a means to onboard both the enterprise workforce and consumers in the Japanese market. Signed an agreement with MajorKey Technologies, a premier identity security company and certified Microsoft Entra Suite services partner, to bring authID’s innovative Proof technology to Microsoft customers worldwide. MajorKey just announced IDProof+ developed in collaboration with authID. Entered into an agreement in October 2025 with a digital infrastructure platform powering financial institutions to modernize and compete in today’s digital-first banking landscape. The fintech will integrate authID’s ProofTM and PrivacyKeyTM technologies into its universal onboarding and customer-management platform, extending secure, frictionless identity verification and reauthentication to more than 100 banks with assets ranging from $10 billion to $150 billion. The first bank is on target to go live this year. Signed an agreement with The Pipeline Group, a fast growing lead generation company that will use authID to onboard remote workers, monitor worker activity, and authenticate remote workers into their core systems. This represents an entry point for authID solutions into the growing lead generation market. Signed an agreement with an international bank for identity onboarding and identity verification and authentication. Financial Results for the Third Quarter and Nine Months Ended September 30, 2025 Gross revenue for the three months ended September 30, 2025 was $0.6 million, compared with $0.2 million a year ago. Net revenue, which reflects estimated concessions in the third quarter totaling $0.7 million, was negative $(0.1) million, compared with $0.2 million a year ago. Total net revenue for the nine months ended September 30, 2025 was $1.6 million, compared to $0.7 million in the year-ago period. Our gross and net revenue were impacted by certain accounting adjustments required to reflect challenges with two particular customer contracts, as further explained in the Third Quarter financial statements filed today. Operating expenses for the three months ended September 30, 2025, were $5.1 million, compared to $3.8 million a year ago. Operating expenses for the nine months ended September 30, 2025 were $15.7 million, compared with $10.7 million in the year-ago period. The 2025 increase is primarily due to increased headcount and continued investment in sales and R&D. Net loss for the three months ended September 30, 2025 was $5.2 million, of which non-cash charges were $1.1 million, compared with a net loss of $3.4 million a year ago, of which non-cash charges were $0.6 million. Net loss for the nine months ended September 30, 2025 was $13.9 million, of which non-cash charges were $2.7 million, compared with a net loss of $9.7 million a year ago, of which non-cash charges were $2.2 million. Loss per share for the three months ended September 30, 2025 was $0.38, compared with $0.31 a year ago. Loss per share for the nine months ended September 30, 2025 was $1.11, compared with $0.97 a year ago. Adjusted EBITDA loss was $4.1 million for the three months ended September 30, 2025, compared with a loss of $2.9 million a year ago. Adjusted EBITDA loss was $11.4 million for the nine months ended September 30, 2025, compared with a loss of $7.8 million a year ago. The increase in adjusted EBITDA loss is primarily driven by the increase in headcount investment in sales and R&D. Please refer to Table 1 for reconciliation of net loss to adjusted EBITDA (a non-GAAP measure). Remaining Performance Obligation (RPO) as of September 30, 2025, was $3.6 million, of which $0.5 million is held as deferred revenue and $3.1 million is related to other non-cancellable contracted amounts, compared to RPO of $3.8 million as of September 30, 2024. The Company expects to recognize the full RPO of $3.6 million over the entire life of the contracts. The gross amount of Booked Annual Recurring Revenue or bARR, (a non-GAAP measure, as defined below), signed in the second quarter of 2025 was $0.2 million, down from $1.2 million of gross bARR a year ago. The net amount of bARR was a negative $6.8 million, compared to $0.01 million of net bARR signed in the comparable period in 2024. The Q3 bARR is comprised of $0.11 million in Committed Annual Recurring Revenue (cARR) and $0.08 million in estimated Usage Above Commitments (UAC). The net amount of bARR reflects the deduction of the bARR of contracts previously included in reported bARR, due to certain customers experiencing delays in Production Go-Live timing, volume ramping and challenges meeting their contractual obligations. The amount of Annual Recurring Revenue or ARR, (a non-GAAP measure, as defined below) as of September 30, 2025 was $1.7 million, compared to $1.0 million of ARR as of Q3 2024. See below for further definition and explanation of ARR and bARR, non-GAAP measures. Conference Call A conference call and webcast will be held today at 5:00p.m. EDT, hosted by authID Chief Executive Officer Rhon Daguro and Chief Financial Officer Ed Sellitto to discuss the financial results and provide a corporate update. To participate on the live conference call, please access this registration link and you will be provided with dial-in details. To avoid delays, participants are encouraged to dial into the conference call 15 minutes ahead of the scheduled start time. A live webcast of the call will be available at webcast registration and on the “Events & Presentations” page of the Company’s website at investors.authid.ai. Only participants on the live conference call will be able to ask questions. A replay of the event and a copy of the presentation will also be available for 90 days at authID’s Investor Relations site. About authID Inc. authID® (Nasdaq: AUID) ensures enterprises “Know Who's Behind the Device™” for every customer or employee login and transaction through its easy-to-integrate, patented, biometric identity platform. authID quickly and accurately verifies a user's identity, eliminating any assumption of 'who' is behind a1 device to prevent cybercriminals from compromising account openings or taking over accounts. Leveraging a 1-in-1-billion False Positive Rate for the highest level of assurance, coupled with industry-leading speed and privacy-preserving technology, authID provides the most secure digital identity experience. Our IDX platform secures the distributed workforce of employees, contractors, vendors, and AI Agents. By creating a biometric root of trust for each user, authID stops fraud at onboarding, detects and stops deepfakes, eliminates password risks and costs, and provides the fastest, frictionless, and most accurate user identity experience in the industry. For further information please visit authid.ai Investor Relations Contacts authID Investor Relations [email protected] Media Contacts Walter Fowler 1-631-334-3864 [email protected] Forward-Looking Statements This Press Release includes “forward-looking statements.” All statements other than statements of historical facts included herein, including, without limitation, those regarding the future results of operations, growth and sales, potential contract signings, booked Annual Recurring Revenue (bARR) (and its components cARR and UAC), Annual Recurring Revenue (ARR), cash flow, cash position and financial position, business strategy, plans and objectives of management for future operations of both authID Inc. and its business partners, are forward-looking statements. Such forward-looking statements are based on a number of assumptions regarding authID’s present and future business strategies, and the environment in which authID expects to operate in the future, which assumptions may or may not be fulfilled in practice. Actual results may vary materially from the results anticipated by these forward-looking statements as a result of a variety of risk factors, including the Company’s ability to attract and retain customers; successful implementation of the services to be provided under new customer contracts and their adoption by customers’ users; the Company’s ability to compete effectively; changes in laws, regulations and practices; the increase in international tariffs and uncertainty over international trading conditions, changes in domestic and international economic and political conditions, the impact of the wars in Ukraine and the Middle East, inflationary pressures, changes in interest rates, and others. See the Company’s Annual Report on Form 10-K for the Fiscal Year ended December 31, 2024 filed at www.sec.gov and other documents filed with the SEC for other risk factors which investors should consider. These forward-looking statements speak only as to the date of this release and cannot be relied upon as a guide to future performance. authID expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this release to reflect any changes in its expectations with regard thereto or any change in events, conditions, or circumstances on which any statement is based. Non-GAAP Financial Information The Company provides certain non-GAAP financial measures in this statement. These non-GAAP key business indicators, which include Adjusted EBITDA, bARR and ARR should not be considered replacements for and should be read in conjunction with the GAAP financial measures. Management believes that Adjusted EBITDA, when viewed with our results under GAAP and the accompanying reconciliations, provides useful information about our period-over-period results. Adjusted EBITDA is presented because management believes it provides additional information with respect to the performance of our fundamental business activities and is also frequently used by securities analysts, investors, and other interested parties in the evaluation of comparable companies. We also rely on Adjusted EBITDA as a primary measure to review and assess the operating performance of our Company and our management. Adjusted EBITDA is a non-GAAP financial measure that represents GAAP net income (loss) adjusted to exclude (1) interest expense and debt discount and debt issuance costs amortization expense, (2) interest income, (3) provision for income taxes, (4) depreciation and amortization, (5) stock-based compensation expense and certain other items management believes affect the comparability of operating results. Please see Table 1 below for a reconciliation of Adjusted EBITDA – continuing operations to net loss – continuing operations, the most directly comparable financial measure calculated and presented in accordance with GAAP. Management believes that bARR and ARR, when viewed with our results under GAAP, provide useful information about the direction of future growth trends of the Company’s revenues. We also rely on bARR as one of several primary measures to review and assess the sales performance of our Company and our management team in connection with our executive compensation. The Company defines Booked Annual Recurring Revenue or bARR, as the amount of annual recurring revenue represented by the estimated amounts of annual recurring revenue we believe will be earned under contracted orders, looking out eighteen months from the date of signing of each customer contract. This estimate is comprised of two components (1) Committed Annual Recurring Revenue (cARR), which represents the minimum amounts that customers are contractually committed to pay each year over the life of the contract and (2) Usage Above Commitments (UAC), which represents our estimate of the rate of annual recurring revenue arising from actual usage of our services above the contractual minimums, that we believe the Customer will achieve after 18 months. The net amount of bARR reflects the deduction of the bARR of contracts previously included in reported bARR, which were subject to attrition, or other downward adjustments during the quarter. The Company defines Annual Recurring Revenue or ARR, as the amount of recurring revenue recognized during the last three months of the relevant period as determined in accordance with GAAP, multiplied by four. bARR may be distinguished from ARR, as bARR does not take specifically into account the time to implement any contract for authID’s services, nor for any ramp in adoption, or seasonality of usage of our biometric products but is based on the assumption that 18 months after signing these matters will have been generally resolved. Furthermore, bARR is based on estimates of future revenues under particular contracts, whereas ARR, whilst also forward-looking, is based on historical revenues recognized in accordance with GAAP during the relevant period. A reconciliation of bARR and ARR to a GAAP measure is not provided as there are no comparable GAAP measures and we believe that any attempt at such reconciliation may be confusing to investors. bARR and ARR have limitations as analytical tools, and you should not consider them in isolation from, or as a substitute for, analysis of our results as reported under GAAP. Some of these limitations are: bARR & ARR should not be considered as predictors of future revenues but only as indicators of the direction in which revenues may be trending. Actual revenue results in the future as determined in accordance with GAAP may be significantly different to the amounts indicated as bARR or ARR at any time. bARR and ARR are to be considered “forward-looking statements” and subject to the same risks, as other such statements (see note on “Forward-Looking Statements” above).