Aware (AWRE) AI Stock Analysis

• Market Cap: $47.45M
• Dividend Yield: N/A
• Average Volume (3M): 38.12K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.22
• Revenue Growth: 2.73%
• EPS Growth: 25.65%
• Country: US
• Employees: 64
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.05
• Shares Outstanding: 21,373,695
• 10 Day Avg. Volume: 24,199
• 30 Day Avg. Volume: 38,119
• PEG Ratio: 0.23
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 2.37
• P/FCF Ratio: -12.86
• Enterprise Value/Market Cap: 0.44
• Enterprise Value/Revenue: 1.19
• Enterprise Value/Gross Profit: 1.30
• Enterprise Value/Ebitda: -3.75
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $2.00 ▼(-7.41% Downside)

Aware's overall stock score is primarily influenced by its financial performance challenges, including profitability and cash flow issues. While the earnings call provided some positive highlights, such as revenue growth and certifications, the valuation remains unattractive due to ongoing losses. Technical analysis shows mixed signals, adding to the cautious outlook.

Aware Business Overview & Revenue Model

Company Description

Aware, Inc. provides biometrics software products and solutions in the United States, Brazil, the United Kingdom, and internationally. It offers biometrics software products, including biometric search and matching software development kits (SDKs); biometric enrollment SDKs and application programming interfaces (APIs); and imaging products for medical and advanced imaging applications, such as JPEG2000 product to compress, store, and display images, as well as software maintenance services. The company also provides Knomi mobile biometric authentication framework; AwareABIS, an automated biometric identification system; AFIX suite of products for small-scale law enforcement focused biometric identification; BioSP, a biometric services platform; WebEnroll, a browser-based biometric enrollment and data management solution; AwareID, a software-as-a-service that provides biometric face and voice analysis for liveness-verification, and document validation; and Fortress Identity Biometric Authenticator and Onboarding Authentication Platform, which offers multi-factor authentication through passive and active biometrics for multiple modalities, including voice, fingerprint, face, and behavior to enable online onboarding and identity proofing. In addition, it offers program management and software engineering services, including project planning and management; system and architecture design; software design, development, customization, configuration, and testing; and software integration and installation. The company's software portfolio enables government agencies and commercial entities to enroll, identify, authenticate, and enable using biometrics, such as fingerprints, faces, irises, and voices. The company sells its products through systems integrators, original equipment manufacturers, value added resellers, and partners, as well as directly to end user customers. Aware, Inc. was incorporated in 1986 and is headquartered in Bedford, Massachusetts.

How the Company Makes Money

Aware generates revenue primarily through the sale of its biometric software solutions and services. Key revenue streams include licensing fees from its software development kits (SDKs), subscription fees for its cloud-based identity verification services, and consulting services related to the implementation of biometric systems. Significant partnerships with government agencies and enterprises in sectors such as banking and healthcare further contribute to its earnings, as these partnerships often involve long-term contracts and large-scale deployments of Aware's technologies.

Aware Financial Statement Overview

Summary

Aware's financial statements reflect strong revenue growth and gross margins but are challenged by profitability and cash flow issues. The balance sheet is stable with low leverage, yet the negative return on equity and cash flow issues pose significant challenges.

Income Statement

Aware's income statement shows a mixed performance. The company has a high gross profit margin of 92.02% TTM, indicating strong cost management. However, the net profit margin is negative at -32.18% TTM, reflecting ongoing losses. Revenue growth is positive at 7.92% TTM, suggesting some top-line improvement, but the negative EBIT and EBITDA margins indicate operational inefficiencies.

Balance Sheet

The balance sheet is relatively stable with a low debt-to-equity ratio of 0.15 TTM, indicating conservative leverage. However, the return on equity is negative at -19.40% TTM, highlighting profitability challenges. The equity ratio stands at 67.61% TTM, showing a strong equity base relative to total assets.

Cash Flow

Cash flow analysis reveals challenges with negative operating cash flow and free cash flow TTM. Despite a free cash flow growth of 37.65% TTM, the operating cash flow to net income ratio is negative, indicating cash flow issues. The free cash flow to net income ratio is slightly above 1, showing some alignment between cash flow and reported earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.43M	17.39M	18.24M	16.01M	16.85M	11.31M
Gross Profit	16.04M	16.26M	16.97M	14.75M	15.64M	10.50M
EBITDA	-5.54M	-4.98M	-6.08M	-7.24M	-5.41M	-8.86M
Net Income	-5.61M	-4.43M	-7.31M	-1.73M	-5.82M	-7.61M
Balance Sheet
Total Assets	40.27M	42.64M	46.30M	51.19M	48.37M	51.63M
Cash, Cash Equivalents and Short-Term Investments	22.50M	27.81M	30.91M	28.98M	29.96M	38.56M
Total Debt	4.04M	4.24M	4.47M	4.52M	0.00	0.00
Total Liabilities	13.04M	11.75M	12.00M	10.98M	6.85M	5.96M
Stockholders Equity	27.24M	30.90M	34.30M	40.21M	41.52M	45.67M
Cash Flow
Free Cash Flow	-5.81M	-3.21M	1.81M	-5.77M	-6.26M	-5.76M
Operating Cash Flow	-5.76M	-3.16M	1.82M	-5.04M	-6.23M	-5.27M
Investing Cash Flow	1.10M	6.29M	-3.14M	-11.99M	-2.48M	-2.91M
Financing Cash Flow	-266.00K	-159.00K	-426.00K	-1.18M	109.00K	-989.00K

Aware Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AWRE, the sentiment is Negative. The current price of 2.16 is below the 20-day moving average (MA) of 2.37, below the 50-day MA of 2.46, and above the 200-day MA of 2.00, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 39.46 is Neutral, neither overbought nor oversold. The STOCH value of 6.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AWRE.

Aware Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MNDO	70 Outperform	$21.59M	6.98	12.73%	18.49%	-9.54%	-40.68%
NTWK	62 Neutral	$34.68M	72.24	1.40%	―	7.70%	-36.01%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IDN	51 Neutral	$87.56M	-92.98	1.17%	―	14.20%	―
CNTM	49 Neutral	$20.05M	-0.26	―	―	419.60%	75.23%
AWRE	48 Neutral	$47.45M	-8.41	-18.98%	―	2.73%	25.65%

Aware Corporate Events

Aware Inc. Highlights Growth Amid Challenges in Earnings Call

Aware Inc. Reports Mixed Sentiment in Latest Earnings Call

Aware, Inc. Reports Strong Q3 2025 Revenue Growth

Aware, Inc. is a global leader in biometric identity and authentication solutions, providing innovative technology to verify identities and prevent fraud across various sectors. In its latest earnings report, Aware, Inc. announced a 33% year-over-year revenue increase for the third quarter of 2025, reaching $5.1 million. The company also reported an improved net loss of $1.1 million compared to the previous year’s $1.2 million loss. Aware’s strategic advancements include achieving FIDO Alliance Certification for Face Verification and launching Intelligent Liveness, a next-generation biometric capability. The company also expanded its engagement with a major U.S. federal agency and secured a new financial services customer, showcasing its successful ‘land-and-expand’ strategy. Despite an increase in operating expenses to $6.4 million, Aware’s adjusted EBITDA loss improved to $0.8 million, driven by strong customer activity and license expansions. Looking forward, Aware’s management remains focused on pursuing large, durable opportunities to drive multi-year recurring revenue and sustainable growth, while acknowledging potential fluctuations due to external factors.