AWRE

Shares of Aware, Inc. AWRE have gained 13.8% since the company reported results for the quarter ended June 30, 2026, outperforming the S&P 500 Index’s 4.2% gain over the same period. However, over the past month, the stock lost 6.3%, lagging the broader market, as the S&P 500 advanced 2.4%. Aware reported second-quarter 2026 revenues of $3.3 million, down 16.5% from $3.9 million a year earlier, primarily reflecting lower perpetual software license revenue. Net loss widened to $2.6 million, or $0.12 per diluted share, from a loss of $1.8 million, or $0.08 per diluted share, in the prior-year quarter. Revenues from software licenses fell 32.8% to $954,000, software maintenance revenues declined 6.9% to $1.9 million, while services and other revenues slipped 7.6% to $302,000. AWRE does not report results by operating segment. Recurring revenues were broadly stable at $2.73 million compared with $2.75 million a year ago, while non-recurring revenues dropped 54.4% to $523,000. Within recurring revenues, software subscriptions increased 10.2% to $605,000 from $549,000, partially offsetting lower software maintenance revenues. Total subscription-based contract revenues increased 19.9% to $865,000. Aware ended the quarter with $16.8 million in cash, cash equivalents and marketable securities and no debt, which management said provides flexibility to execute its strategic plan. Adjusted EBITDA loss widened to $2.3 million from $1.4 million in the year-ago quarter. Operating expenses increased 2.3% to $5.99 million from $5.86 million, reflecting costs related to employees hired in 2025 that were partly offset by spending reductions implemented during the first half of 2026. Aware, Inc. price-consensus-eps-surprise-chart | Aware, Inc. Quote Chief executive officer Ajay Amlani said that AWRE remains focused on transforming its business around the Awareness Platform, its SaaS-based biometric orchestration and decisioning platform. Management believes the rapid evolution of AI-driven threats, including deepfakes and synthetic identities, is increasing demand for biometric identity solutions. During the quarter, Aware enhanced the platform’s orchestration capabilities, advanced its Intelligent Liveness technology and introduced improvements to its Intelligent Matching solution, including an approximately tenfold reduction in the false non-match rate compared with previous generations. AWRE also added ROC and Mitek as integrated technology partners to broaden platform capabilities. Management attributed the weaker quarterly revenues to continued softness in the standalone product business and slower federal procurement activity associated with the government shutdown, which created what it described as a meaningful headwind. Lower perpetual software license revenues were the primary driver of the year-over-year sales decline. At the same time, Aware said activity in the federal market improved following the normalization of Department of Homeland Security operations, leading to increased requests for information, procurement activity and discussions related to border modernization, traveler processing and biometric identity verification initiatives. Aware did not provide formal financial guidance but said it expects the second half of 2026 to be stronger than the first half, consistent with its typical seasonal pattern. Management expects revenues to improve from second-quarter levels, supported by subscription renewals and customer activity that is generally weighted toward the back half of the year. AWRE also anticipates lower operating expenses as previously announced cost-reduction measures become more fully reflected in results. However, executives cautioned that quarterly performance will likely remain variable because of procurement cycles, perpetual license timing, renewals and customer decision-making. During the quarter, Aware expanded its biometric ecosystem by integrating ROC and Mitek into the Awareness Platform. AWRE did not announce any acquisitions, divestitures or restructuring transactions during the quarter, although management continued executing its previously disclosed strategy to streamline operations and focus resources on biometric orchestration, liveness detection, matching technologies and government and enterprise opportunities. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Aware, Inc. (AWRE): Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Revenue: $3.3 million for Q2 2026, compared to $3.9 million in the prior year period. Operating Expenses: $6.0 million for Q2 2026, compared to $5.9 million in the prior year quarter. Net Loss: $2.6 million, or $0.12 per diluted share, compared to $2.0 million, or $0.08 per diluted share, in the prior year period. Adjusted EBITDA Loss: $2.3 million, compared to $1.4 million in the prior year period. Six-Month Revenue: $6.6 million for the six months ended June 30, 2026, compared to $7.5 million in the prior year period. Six-Month Operating Expenses: $13.0 million for the six months ended June 30, 2026, compared to $11.3 million in the prior year period. Six-Month Net Loss: $6.0 million, or $0.28 per diluted share, compared to $3.4 million, or $0.16 per diluted share, in the prior year period. Six-Month Adjusted EBITDA Loss: $5.5 million, compared to $3.0 million in the prior year period. Cash and Equivalents: Approximately $16.8 million in cash, cash equivalents, and marketable securities with no debt at the end of the quarter. Warning! GuruFocus has detected 3 Warning Signs with AWRE. Is AWRE fairly valued? Test your thesis with our free DCF calculator. Release Date: July 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Aware Inc (NASDAQ:AWRE) is making significant updates to the Awareness Platform, a SaaS-based biometric orchestration and decisioning platform, to help organizations make smarter identity decisions in real time. The company welcomed two new integrated technology partners, Rock and Mitek, to the Awareness Platform, expanding its capabilities and strengthening its ecosystem. Aware Inc (NASDAQ:AWRE) advanced its intelligent liveness capabilities to combat sophisticated AI-driven fraud, such as deepfakes and injection attacks, with a passive user experience that operates in under 2 seconds. The company announced advancements in its matching algorithm, delivering approximately 10x lower false non-match rate and enabling sub-second one-to-end matching across large biometric data sets. Aware Inc (NASDAQ:AWRE) is seeing renewed activity in the federal government market, particularly in homeland security, border modernization, and traveler processing, with increased RFIs and procurement activity since DHS operations normalized in May. Revenue for the second quarter was $3.3 million, below expectations and down from $3.9 million in the prior year period, impacted by timing of stand-alone product business and slower federal procurement due to the government shutdown. Operating expenses increased to $6 million in Q2 2026 compared to $5.9 million in the prior year quarter, including costs from hires made in 2025 and $700,000 in one-time severance costs. Net loss widened to $2.6 million or $0.12 per diluted share in Q2 2026, compared to $2 million or $0.08 per diluted share in the prior year period. Adjusted EBITDA loss increased to $2.3 million in Q2 2026 from $1.4 million in the prior year period, reflecting higher operating expenses. The company is in the middle of a transformation from a fragmented product portfolio to a focused platform strategy, which creates near-term variability and uncertainty in revenue timing and performance. Here are the key highlights from Aware Inc's Q2 2026 earnings call, focusing on the most significant Q&A exchanges. Q: How should we think about the government opportunity translating into the commercial side of the business?A: (CEO A.J. Amlani) Both commercial and government organizations face increasingly similar challenges, such as AI-enabled fraud, regulatory pressure, and the need for secure, frictionless digital experiences. There is a beneficial two-way exchange: commercial organizations view technology adopted by the government as "government grade," implying a higher bar for security and reliability. Conversely, the government benchmarks against commercial companies to operate with the same speed and usability. The Awareness Platform, a SaaS-based biometric orchestration and decisioning platform, is highly relevant for both sectors, allowing them to design, deploy, and optimize workflows in one environment. Q: When do you anticipate quarterly revenue will begin to sustain growth?A: (CEO A.J. Amlani) The actions being taken are designed to create a stronger foundation for consistent performance over time. The company is transitioning from a fragmented portfolio to a focused, scalable platform strategy around the Awareness Platform. In the second half of the year, revenue is expected to be stronger than the first half due to typical seasonality, customer activity, and subscription renewals, while expenses should be lower as cost actions are fully reflected. Longer term, the Awareness Platform's scalable model and tailwinds from the government market and AI-driven fraud are expected to position Aware for more sustainable growth. Q: Is the Awareness Platform market ready?A: (CRO Brian Krause) Yes, the Awareness Platform is market ready and available for customers to demo, trial, and procure. The company also announced the addition of two new technology partners, Rock and Mitek, to the platform during the second quarter. Q: What competitive advantages does Aware have in biometric orchestration?A: (CRO Brian Krause) The Awareness Platform has several competitive advantages. The primary one is its ecosystem of integrated technology partners, which allows customers to access the best biometric technology on the planet through a single API architecture. This depth and quality of technology is unmatched. This advantage is further defended by the company's 35 years of expertise and a team with hundreds of collective years of experience in the space. Q: One year ago, you announced a key customer secured with a top 15 global financial institution. What is the current status of this customer?A: (CRO Brian Krause) The customer is still a customer and is now in year two, having renewed their first-year contract. During Q2, Aware worked with this customer to test and evaluate additional Aware technology for potential future use, indicating a happy, renewed, and potentially expanding relationship. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

BURLINGTON, Mass., July 29, 2026 (GLOBE NEWSWIRE) -- Aware, Inc. (NASDAQ: AWRE), a global leader in biometric orchestration, today reported financial results for the second quarter ended June 30, 2026. Second Quarter 2026 Operational Highlights Welcomed ROC and Mitek as integrated technology partners to the Awareness Platform, expanding matching, identity verification and liveness capabilities available through the platform. Advanced the Awareness Platform’s Intelligent Liveness capabilities that are designed to strengthen protection against deepfake, injection, presentation, virtual camera, device emulator and replay attacks while preserving a passive user experience. Announced Intelligent Matching advancements designed to deliver approximately 10 times lower False Non-Match Rate compared to previous generations, along with scalable architecture intended to enable sub-second 1:N matching across large biometric datasets. Management Commentary “Revenue came in at $3.3 million, reflecting continued softness in our standalone product offerings as we invest to bring the Awareness Platform to market and explore newly funded federal government opportunities,” said Ajay Amlani, CEO and President of Aware. “We remain confident in the opportunities we are investing in and pursuing for the coming quarters.” “The rapid advancement of AI is reinforcing the importance of the market we serve. As deepfakes, synthetic identities, injection attacks and other AI-enabled threats become more sophisticated, identity is becoming critical infrastructure for government and enterprise organizations. That is why we are focused on the Awareness Platform, which brings biometric orchestration, decisioning, liveness detection, matching and partner technologies together in one unified environment.” “This quarter, we made significant innovations to the Awareness Platform to help organizations make smarter identity decisions in real time. Many government and commercial organizations are managing increasingly complex biometric environments across multiple systems, vendors, data sources and decisioning workflows. The Awareness Platform is designed to address that challenge by helping customers configure workflows, orchestrate multiple biometric and identity verification providers, evaluate vendor performance and normalize outputs for more consistent decisioning.” Amlani continued, “We were also pleased to welcome ROC and Mitek as integrated technology partners to the Awareness Platform. These partnerships strengthen the platform and reinforce one of the core principles behind our strategy: the future of identity is not only about better individual algorithms, it is also about better orchestration.” “We saw increased business development activity within Aware’s public sector business following the normalization of Department of Homeland Security operations after recent funding disruptions,” Amlani added. “We want to recognize the dedication of DHS employees and the important work they continue to do in support of national security through challenging operating environments. Since activity has normalized, we have seen an increase in RFIs, procurement activity and program momentum in areas where biometric solutions are highly relevant. We also believe Aware’s U.S. base and long history supporting mission-critical biometric programs provide an important differentiator as federal agencies continue to prioritize trusted, domestically based technology partners aligned with broader Buy American objectives.” “Looking ahead, we expect the second half of the year to follow our typical seasonal pattern, with revenue increasing compared to the first half. We also expect expenses to be lower as the cost reduction actions we discussed last quarter become more visible in our results. Our priorities remain clear: execute against near-term opportunities, maintain expense discipline, support our customers and continue advancing the Awareness Platform.” Second Quarter 2026 Financial Results Revenue for the quarter was $3.3 million, compared to $3.9 million in the prior-year period. The decrease reflects lower perpetual software license revenue. Operating expenses for the quarter were $6.0 million, compared to $5.9 million in the prior-year period. The higher expenses include costs related to hires made in 2025, partially offset by spending reductions made in the first half of 2026. Net loss for the quarter was $2.6 million, or $0.12 per diluted share, compared to net loss of $1.8 million, or $0.08 per diluted share, in the prior-year period. Adjusted EBITDA loss was $2.3 million, compared to adjusted EBITDA loss of $1.4 million in the prior-year period. Six Month 2026 Financial Results Revenue for the six months ended June 30, 2026 was $6.6 million, compared to $7.5 million in the prior-year period. The decrease reflects lower perpetual software license revenue. Operating expenses for the six months ended June 30, 2026 were $13.0 million, compared to $11.3 million in the prior-year period. The higher expenses include one-time severance costs of $0.7 million and higher compensation costs related to hires made in 2025, which were partially offset by spending reductions made in the first half of 2026. Net loss for the six months ended June 30, 2026 was $6.0 million, or $0.28 per diluted share, compared to net loss of $3.4 million, or $0.16 per diluted share, in the prior-year period. Adjusted EBITDA loss for the six months ended June 30, 2026 was $5.5 million, compared to adjusted EBITDA loss of $3.0 million in the prior-year period. Webcast Aware management will host a webcast today, July 29, 2026, at 5:00 p.m. Eastern time to discuss these results and provide an update on business conditions. A question-and-answer session will follow management’s prepared remarks. Date: Wednesday, July 29, 2026Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time)Webcast: Register Here The presentation will be made available for replay in the investor relations section of the Company’s website. The audio recording will be available for approximately 90 days following the live event. About Aware Aware, Inc. (NASDAQ: AWRE) is a proven global leader in biometric orchestration and identity solutions. Its Awareness Platform transforms biometric data into actionable intelligence, empowering organizations to verify identities and prevent fraud with speed, accuracy, and confidence. Designed for mission-critical enterprise environments, the platform delivers intelligent, scalable architecture, real-time insights, and reliable security—ensuring precise identification when every millisecond matters. Aware is headquartered in Burlington, Massachusetts. To learn more, visit our website or follow us on LinkedIn and X. Safe Harbor Warning Portions of this release contain forward-looking statements regarding future events and are subject to risks and uncertainties, such as estimates or projections of future revenue, earnings and non-recurring charges, and the growth of the biometrics markets. Aware wishes to caution you that there are factors that could cause actual results to differ materially from the results indicated by such statements. Risk factors related to our business include, but are not limited to: i) the changes we are implementing in our business to drive growth in our business may not be successful on the timeline we expect, or at all; ii) our operating results may fluctuate significantly and are difficult to predict; iii) we derive a significant portion of our revenue from government customers, and our business may be adversely affected by changes in the contracting or fiscal policies of those governmental entities; iv) a significant commercial market for biometrics technology may not develop, and if it does, we may not be successful in that market; v) we derive a significant portion of our revenue from third party channel partners; vi) the biometrics market may not experience significant growth or our products may not achieve broad acceptance; vii) we face intense competition from other biometrics solution providers; viii) our business is subject to rapid technological change; ix) our software products may have errors, defects or bugs which could harm our business; x) our business may be adversely affected by our use of open source software; xi) we rely on third party software to develop and provide our solutions and significant defects in third party software could harm our business; xii) part of our future business is dependent on market demand for, and acceptance of, the cloud-based model for the use of software: xiii) our operational systems and networks and products may be subject to an increasing risk of continually evolving cybersecurity or other technological risks which could result in the disclosure of company or customer confidential information, damage to our reputation, additional costs, regulatory penalties and financial losses; xiv) our intellectual property is subject to limited protection; xv) we may be sued by third parties for alleged infringement of their proprietary rights; xvi) we must attract and retain key personnel; xvii) our business may be affected by government regulations, government cost cutting initiatives and adverse economic conditions; and xviii) we may make acquisitions that could adversely affect our results, and xix) we may have additional tax liabilities. We refer you to the documents Aware files from time to time with the Securities and Exchange Commission, specifically the section titled Risk Factors in our annual report on Form 10-K for the fiscal year ended December 31, 2025 and other reports and filings made with the Securities and Exchange Commission. Prior-period amounts have been reclassified to conform to the current period presentation. Non-GAAP Measures We define adjusted EBITDA as U.S. GAAP net loss plus depreciation of fixed assets and amortization of intangible assets, stock-based compensation expenses, other (expense) income, net, and income tax provision. We discuss adjusted EBITDA in our quarterly earnings releases and certain other communications, as we believe adjusted EBITDA is an important measure. We use adjusted EBITDA in internal forecasts and models when establishing internal operating budgets, supplementing the financial results and forecasts reported to our Board of Directors, and evaluating short-term and long-term operating trends in our operations. We believe that the adjusted EBITDA financial measure assists in providing an enhanced understanding of our underlying operational measures to manage the business, to evaluate performance compared to prior periods and the marketplace, and to establish operational goals. We believe that the adjusted EBITDA adjustments are useful to investors because they allow investors to evaluate the effectiveness of the methodology and information used by management in our financial and operational decision-making. We define recurring revenue as the portion of Aware revenue that is based on a term arrangement and is likely to continue in the future, such as annual maintenance or subscription contracts. We use recurring revenue as a metric to communicate the portion of our revenue that has greater stability and predictability. We believe that recurring revenue assists in providing an enhanced understanding of the effectiveness of our efforts to transition to a subscription-based business model. Adjusted EBITDA and recurring revenue are non-GAAP financial measures and should not be considered in isolation or as a substitute for financial information provided in accordance with U.S. GAAP. These non-GAAP financial measures may not be computed in the same manner as similarly titled measures used by other companies. We expect to continue to incur expenses similar to the financial adjustments described above in arriving at adjusted EBITDA and investors should not infer from our presentation of this non-GAAP financial measure that these costs are unusual, infrequent or non-recurring. The following table includes the reconciliations of our U.S. GAAP net loss, the most directly comparable U.S. GAAP financial measure, to our adjusted EBITDA for the three and six months ended June 30, 2026 and 2025 and our U.S. GAAP revenue, the most directly comparable U.S. GAAP financial measure, to our recurring revenue for the three and six months ended June 30, 2026 and 2025. Prior-period amounts have been reclassified to conform to the current period presentation. Aware is a registered trademark of Aware, Inc.

Shares of Aware, Inc. AWRE have lost 9.5% since the company reported its earnings for the quarter ended March 31, 2026, underperforming the S&P 500 Index, which gained 1.9% over the same period. Shares plunged 12.3% over the past month against the S&P 500’s 10.5% gain. Aware reported first-quarter 2026 revenue of $3.4 million, down 6.2% from $3.6 million in the year-ago quarter. The dip was primarily due to lower perpetual software license revenue, partially offset by higher subscription, maintenance, and services revenue. Net loss widened significantly to $3.5 million, or $0.16 per diluted share, from a loss of $1.6 million, or $0.08 per share, in the prior-year period, highlighting increased cost pressures. Segment-wise, software license revenue fell 21.7% to $1 million from $1.3 million, while software maintenance remained relatively stable at roughly $2.1 million. Services and other revenue increased 54.3% to $0.3 million from $0.2 million, indicating some resilience in recurring and service-related streams. Recurring revenue rose 7.5% to $2.9 million from $2.7 million in the prior-year quarter, reflecting growth in subscription-based offerings as the company transitions its business model. Software subscriptions, in particular, increased 25.9% to $669,000 from $531,000, underscoring progress in building a more predictable revenue base. However, non-recurring revenue declined 45.8% to $0.5 million from $0.9 million, primarily due to weaker license sales. On the profitability front, operating expenses climbed 28.9% to $7 million from $5.5 million, driven by higher compensation costs and approximately $0.7 million in one-time severance charges tied to restructuring efforts. Adjusted EBITDA loss widened to $3.2 million from $1.5 million a year ago, reflecting the combined impact of declining high-margin license revenue and elevated expenses. Research and development expenses increased 67.7%, reflecting continued investment in technology, while selling and marketing expenses also rose 9.7%. Aware reported an operating loss of $3.7 million compared with $1.9 million in the prior year. AWRE ended the quarter with approximately $19.6 million in cash, cash equivalents and marketable securities and no debt, providing financial flexibility despite ongoing losses. Aware, Inc. price-consensus-eps-surprise-chart | Aware, Inc. Quote Management acknowledged that quarterly performance fell short of expectations, citing a slower-than-anticipated response to rapid changes in the biometric market driven by artificial intelligence (AI). CEO Ajay Amlani noted that Aware underestimated both the pace of market evolution and the need to modernize its product architecture to address emerging threats such as deepfakes and spoofing. AWRE is undergoing a strategic transformation toward a platform-first model centered on its Awareness Platform, which aims to unify biometric capabilities into a scalable orchestration solution for enterprise and government clients. Management emphasized that this shift is aligned with market demand, supported by internal research indicating strong customer interest in biometric orchestration capabilities. The decline in revenue and widening losses were primarily influenced by reduced perpetual license sales, which traditionally carry higher margins and increased operating expenses related to workforce restructuring and prior hiring. Additionally, Aware is investing in transitioning away from legacy product lines toward a unified platform, which has introduced near-term revenue variability and cost pressures. At the same time, the evolving threat landscape in biometric security — particularly the rise of AI-driven fraud — has accelerated the need for advanced capabilities like liveness detection, prompting Aware to redirect resources toward these areas. While this repositioning is expected to strengthen long-term competitiveness, it has weighed on near-term results. Aware did not provide formal financial guidance but indicated that quarterly variability is expected to persist as the transformation progresses. Management highlighted planned cost reductions of approximately $4 million on an annualized basis beginning in the second quarter of 2026, which should help align expenses with strategic priorities. AWRE’s focus remains on long-term growth through scaling its platform, expanding capabilities and targeting federal and enterprise customers. Management signaled that broader platform rollout and scaling efforts are expected later in the year, though near-term financial performance may remain uneven. During the quarter, Aware implemented a workforce reduction as part of its restructuring efforts, incurring $0.7 million in severance costs. The company also streamlined its operating model and reduced expenses by approximately $4 million on an annualized basis to support its transition to a platform-driven strategy. Additionally, Aware reported strong performance in a Department of Homeland Security remote identity validation evaluation, highlighting continued progress in its core liveness detection technology. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Aware, Inc. (AWRE): Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

BURLINGTON, Mass., April 29, 2026 (GLOBE NEWSWIRE) -- Aware, Inc. (NASDAQ: AWRE), a global leader in biometric identity and authentication solutions, today reported financial results for the first quarter ended March 31, 2026. First Quarter 2026 and Financial Recent Operational Highlights Delivered strong performance in the DHS Remote Identity Validation Rally, Track 3, where Aware’s Intelligent Liveness demonstrated the ability to stop sophisticated attack vectors while maintaining a high-quality user experience. Revenue was $3.4 million, compared to $3.6 million in the first quarter of 2025. Operating expenses were $7.0 million, including approximately $0.7 million of one-time severance costs related to a workforce reduction aligned with our strategic transition from a product-focused model to a platform-driven company, compared to $5.5 million in the first quarter of 2025. Management Commentary “This quarter marked an important step in our transformation as we continued aligning the business around a unified biometric orchestration platform,” said CEO Ajay Amlani. “As part of this transition, we are taking deliberate actions to streamline our cost structure and operating model, ensuring we are focused on our highest-impact opportunities. “We are moving toward a platform-first approach with the Awareness Platform at the center—designed to meet growing demand for biometric orchestration across both government and enterprise markets. With 98% of organizations we surveyed in a new report expressing interest in these capabilities, we are confident we are building toward a clear and expanding market need. “We believe this shift positions Aware to operate more efficiently, execute with greater focus, and deliver more consistent, long-term value as we advance the platform and scale adoption over time.” First Quarter 2026 Financial Results Revenue was $3.4 million, compared to $3.6 million in the first quarter of 2025. The decline in revenue was primarily due to a decrease in perpetual license revenue compared to the prior-year first quarter and partially offset by an increase in subscription license revenue. Operating expenses were $7.0 million, compared to $5.5 million in the first quarter of 2025. The year-over-year decrease was primarily driven by one-time severance costs related to our restructuring of $0.7 million and higher compensation costs related to hires we made in 2025. As a result of efforts we’ve taken to streamline our business, we expect to reduce operating expenses by $4.0 million on an annualized basis, as compared to the current quarter, starting in Q2 2026. We will continue to make adjustments to our operating expense as we continue to focus on our strategic goals. Net loss totaled $3.5 million, or $(0.16) per diluted share, compared to net loss of $1.6 million, or $(0.08) per diluted share, in the first quarter of 2025. Adjusted EBITDA loss totaled $3.2 million in the first quarter of 2026, compared to adjusted EBITDA loss of $1.5 million in the first quarter of 2025. Webcast Aware management will host a webcast today, April 29, 2026, at 5:00 p.m. Eastern time to discuss these results and provide an update on business conditions. A question-and-answer session will follow management’s prepared remarks. Date: Wednesday, April 29, 2026 Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time) Webcast: Register Here The presentation will be made available for replay in the investor relations section of the Company’s website. The audio recording will be available for approximately 90 days following the live event. About Aware Aware, Inc. (NASDAQ: AWRE) is a proven global leader in biometric identity and authentication solutions. Its Awareness Platform transforms biometric data into actionable intelligence, empowering organizations to verify identities and prevent fraud with speed, accuracy, and confidence. Designed for mission-critical enterprise environments, the platform delivers intelligent, scalable architecture, real-time insights, and reliable security—ensuring precise identification when every millisecond matters. Aware is headquartered in Burlington, Massachusetts. To learn more, visit our website or follow us on LinkedIn and X. Safe Harbor Warning Portions of this release contain forward-looking statements regarding future events and are subject to risks and uncertainties, such as estimates or projections of future revenue, earnings and non-recurring charges, and the growth of the biometrics markets. Aware wishes to caution you that there are factors that could cause actual results to differ materially from the results indicated by such statements. Risk factors related to our business include, but are not limited to: i) the changes we are implementing in our business to drive growth in our business may not be successful on the timeline we expect, or at all; ii) our operating results may fluctuate significantly and are difficult to predict; iii) we derive a significant portion of our revenue from government customers, and our business may be adversely affected by changes in the contracting or fiscal policies of those governmental entities; iv) a significant commercial market for biometrics technology may not develop, and if it does, we may not be successful in that market; v) we derive a significant portion of our revenue from third party channel partners; vi) the biometrics market may not experience significant growth or our products may not achieve broad acceptance; vii) we face intense competition from other biometrics solution providers; viii) our business is subject to rapid technological change; ix) our software products may have errors, defects or bugs which could harm our business; x) our business may be adversely affected by our use of open source software; xi) we rely on third party software to develop and provide our solutions and significant defects in third party software could harm our business; xii) part of our future business is dependent on market demand for, and acceptance of, the cloud-based model for the use of software: xiii) our operational systems and networks and products may be subject to an increasing risk of continually evolving cybersecurity or other technological risks which could result in the disclosure of company or customer confidential information, damage to our reputation, additional costs, regulatory penalties and financial losses; xiv) our intellectual property is subject to limited protection; xv) we may be sued by third parties for alleged infringement of their proprietary rights; xvi) we must attract and retain key personnel; xvii) our business may be affected by government regulations, government cost cutting initiatives and adverse economic conditions; and xviii) we may make acquisitions that could adversely affect our results, and xix) we may have additional tax liabilities. We refer you to the documents Aware files from time to time with the Securities and Exchange Commission, specifically the section titled Risk Factors in our annual report on Form 10-K for the fiscal year ended December 31, 2025 and other reports and filings made with the Securities and Exchange Commission. Non-GAAP Measures We define adjusted EBITDA as U.S. GAAP net loss plus depreciation of fixed assets and amortization of intangible assets, stock-based compensation expenses, other (expense) income, net, and income tax provision. We discuss adjusted EBITDA in our quarterly earnings releases and certain other communications, as we believe adjusted EBITDA is an important measure. We use adjusted EBITDA in internal forecasts and models when establishing internal operating budgets, supplementing the financial results and forecasts reported to our Board of Directors, and evaluating short-term and long-term operating trends in our operations. We believe that the adjusted EBITDA financial measure assists in providing an enhanced understanding of our underlying operational measures to manage the business, to evaluate performance compared to prior periods and the marketplace, and to establish operational goals. We believe that the adjusted EBITDA adjustments are useful to investors because they allow investors to evaluate the effectiveness of the methodology and information used by management in our financial and operational decision-making. We define recurring revenue as the portion of Aware revenue that is based on a term arrangement and is likely to continue in the future, such as annual maintenance or subscription contracts. We use recurring revenue as a metric to communicate the portion of our revenue that has greater stability and predictability. We believe that recurring revenue assists in providing an enhanced understanding of effectiveness of our efforts to transition to a subscription-based business model. Adjusted EBITDA and recurring revenue are non-GAAP financial measures and should not be considered in isolation or as a substitute for financial information provided in accordance with U.S. GAAP. These non-GAAP financial measures may not be computed in the same manner as similarly titled measures used by other companies. We expect to continue to incur expenses similar to the financial adjustments described above in arriving at adjusted EBITDA and investors should not infer from our presentation of this non-GAAP financial measure that these costs are unusual, infrequent or non-recurring. The following table includes the reconciliations of our U.S. GAAP net loss, the most directly comparable U.S. GAAP financial measure, to our adjusted EBITDA for the three months ended March 31, 2026 and 2025 and our U.S. GAAP revenue, the most directly comparable U.S. GAAP financial measure, to our recurring revenue for the three months ended March 31, 2026 and 2025. Aware is a registered trademark of Aware, Inc.

This article first appeared on GuruFocus. Revenue: $3.4 million for Q1 FY26, down from $3.6 million in the prior year period. Operating Expenses: Increased to $7 million from $5.5 million in the prior year quarter, including $700,000 in onetime severance costs. Net Loss: $3.5 million or $0.16 per diluted share, compared to $1.6 million or $0.08 per diluted share in the prior year period. Adjusted EBITDA Loss: $3.2 million, compared to $1.5 million in the prior year period. Cash and Equivalents: Approximately $19.6 million, with no debt. Expense Reduction: $4 million reduction in operating expenses on an annualized basis starting Q2 FY26. Warning! GuruFocus has detected 3 Warning Signs with AWRE. Is AWRE fairly valued? Test your thesis with our free DCF calculator. Release Date: April 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Aware Inc (NASDAQ:AWRE) is aligning its business with a platform-first strategy, focusing on a unified biometric orchestration platform. The company has reduced operating expenses by approximately $4 million annually to support a more efficient organization. Aware Inc (NASDAQ:AWRE) has a strong intellectual property portfolio, particularly in liveness detection, which is a critical capability in the biometric space. The company is prioritizing investment in the Awareness Platform, which is designed to support scalable enterprise-grade deployments. Aware Inc (NASDAQ:AWRE) has a strong balance sheet with approximately $19.6 million in cash, cash equivalents, and marketable securities, and no debt. Revenue for the first quarter was $3.4 million, which was below expectations and a decrease from the prior year period. Operating expenses increased to $7 million, partly due to onetime severance costs and higher compensation costs. Net loss for the quarter was $3.5 million, a significant increase from the $1.6 million loss in the prior year period. The company underestimated the pace of market shifts and the demands of AI advancements on biometric systems. Aware Inc (NASDAQ:AWRE) expects near-term variability to continue as it transitions its business model. Q: Can you provide an overview of Aware Inc's financial performance for the first quarter of 2026? A: Ajay Amlani, CEO, reported that revenue for the first quarter was $3.4 million, which was below expectations. The company underestimated the market's pace and the need for evolving product infrastructure. Operating expenses increased to $7 million, with a net loss of $3.5 million or $0.16 per diluted share. Adjusted EBITDA loss was $3.2 million. The company ended the quarter with $19.6 million in cash and no debt. Q: What strategic actions has Aware Inc taken to address the challenges faced this quarter? A: Ajay Amlani, CEO, stated that the company has removed approximately $4 million in expenses and simplified its go-to-market operating model. They are focusing on a platform-first strategy centered around the Awareness Platform, moving away from a fragmented portfolio to a unified biometric orchestration platform. Q: How is Aware Inc positioning itself in the biometric market? A: Ajay Amlani, CEO, emphasized that Aware is prioritizing investment in the Awareness Platform, which is designed to serve federal government and enterprise customers. The company is leveraging its experience, scientific foundation, and intellectual property in liveness detection to lead in the biometric orchestration space. Q: What are the future plans for the Awareness Platform? A: Ajay Amlani, CEO, mentioned that the company plans to roll out expanded platform capabilities, including advancements in liveness detection. The platform aims to provide single integration access to top-performing systems, allowing customers to deploy biometrics across their businesses efficiently. Q: How does Aware Inc plan to achieve long-term growth? A: Ajay Amlani, CEO, stated that the focus is on building a durable, modern, and scalable business. The company is concentrating resources on areas with a proven durable advantage, such as combating AI-powered spoofing and deep fake threats, and serving the federal government. The goal is to achieve consistent long-term growth from a defensible position. For the complete transcript of the earnings call, please refer to the full earnings call transcript.