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Aware (AWRE)
NASDAQ:AWRE
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Aware
(NASDAQ:AWRE)
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Rating:48Neutral
Price Target:
$2.00
▲(2.04% Upside)
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.
Positive Factors
Revenue Growth
The significant year-over-year revenue growth indicates strong demand for Aware's products and services, enhancing its market position and potential for sustainable expansion.
Certification Achievement
Achieving FIDO Alliance Certification enhances Aware's credibility and compliance, potentially expanding its market opportunities and customer trust in its biometric solutions.
Cash Position
A strong cash position with no debt provides Aware with financial flexibility to invest in growth initiatives and weather economic uncertainties, supporting long-term stability.
Negative Factors
Profitability Challenges
Ongoing profitability challenges with negative margins indicate operational inefficiencies, which could hinder Aware's ability to generate sustainable profits and impact long-term viability.
Cash Flow Issues
Negative cash flow metrics suggest difficulties in generating sufficient cash from operations, potentially limiting Aware's capacity to fund growth and meet financial obligations.
Increased Operating Expenses
Rising operating expenses due to strategic investments could pressure margins and profitability, challenging Aware's ability to achieve cost efficiency and long-term financial health.
Aware (AWRE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$42.53M
Dividend YieldN/A
Average Volume (3M)38.12K
Price to Earnings (P/E)―
Beta (1Y)0.67
Revenue Growth2.73%
EPS Growth25.65%
CountryUS
Employees64
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.05
Shares Outstanding21,373,695
10 Day Avg. Volume24,199
30 Day Avg. Volume38,119
Financial Highlights & Ratios
PEG Ratio0.23
Price to Book (P/B)1.33
Price to Sales (P/S)2.37
P/FCF Ratio-12.86
Enterprise Value/Market Cap0.49
Enterprise Value/Revenue1.19
Enterprise Value/Gross Profit1.30
Enterprise Value/Ebitda-3.75
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Aware Business Overview & Revenue Model
Company DescriptionAware, 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 MoneyAware 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 Earnings Call Summary
Earnings Call Date:Oct 29, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 05, 2026
Earnings Call Sentiment Neutral
Aware showed strong quarterly revenue growth and achieved significant certifications, indicating solid progress. However, flat year-to-date revenue and increased operating expenses, coupled with challenges due to the federal shutdown, present notable concerns.Q3-2025 Updates
Positive Updates
Strong Year-over-Year Revenue Growth
Aware delivered a 33% year-over-year revenue growth in Q3 2025, driven by a $1 million perpetual license expansion sale and a $600,000 new term license contract.
FIDO Alliance Certification
Aware's face verification stack combining advanced liveness with facial matching earned FIDO Alliance Certification, validating its approach and reducing compliance friction.
Strategic Federal Engagement
Aware is engaged with U.S. federal agencies, aligning with Buy American requirements and modernization initiatives, and anticipates volume deal flow once federal budget issues are resolved.
Improved Bottom Line Metrics
Net loss for the quarter improved to $1.1 million from $1.2 million in the prior year, and adjusted EBITDA loss improved to $800,000 from $1.1 million.
Negative Updates
Flat Year-to-Date Revenue
Despite strong Q3 performance, year-to-date revenue was flat, reflecting timing dynamics and variability in license component business.
Federal Shutdown Impact
Federal budget delays and shutdown have impacted near-term bookings, with expected delays until the situation is resolved.
Increased Operating Expenses
Operating expenses rose to $6.4 million from $5.4 million in the prior year quarter, driven by investments in sales, marketing, and product development.
Company Guidance
During Aware's Third Quarter 2025 Conference Call, the company reported a 33% year-over-year revenue growth, reaching $5.1 million, although the year-to-date revenue remained flat at $12.6 million. Operating expenses increased to $6.4 million from $5.4 million the previous year, attributed to strategic investments in sales, marketing, and product development. The net loss improved slightly to $1.1 million or $0.05 per diluted share, compared to $1.2 million or $0.06 per share last year. The adjusted EBITDA loss also improved to $800,000 from $1.1 million. Aware ended the quarter with $22.5 million in cash and no debt. The company emphasized its focus on enhancing its biometric technology and platform, expanding federal and enterprise market presence, and achieving significant certifications like FIDO Alliance Certification. Looking forward, Aware remains focused on driving recurring revenue and maintaining disciplined expense management as it builds towards sustainable growth.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
Negative
1.96
Price Trends
2.18
Negative
2.33
Negative
2.08
Negative
Market Momentum
-0.06
Negative
41.58
Neutral
59.54
Neutral
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 1.96 is below the 20-day moving average (MA) of 2.03, below the 50-day MA of 2.18, and below the 200-day MA of 2.08, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 41.58 is Neutral, neither overbought nor oversold. The STOCH value of 59.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AWRE.
Aware Risk Analysis
Aware disclosed 25 risk factors in its most recent earnings report. Aware reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Aware Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $24.64M | 8.66 | 12.73% | 18.97% | -9.54% | -40.68% | |
62 Neutral | $128.30M | 642.42 | 1.17% | ― | 14.20% | ― | |
62 Neutral | $35.15M | 76.17 | 1.40% | ― | 7.70% | -36.01% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $62.66M | -0.87 | ― | ― | 419.60% | 75.23% | |
48 Neutral | $42.53M | -7.42 | -18.98% | ― | 2.73% | 25.65% |
* Technology Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.