Aware (AWRE) AI Stock Analysis

• Market Cap: $51.92M
• Dividend Yield: N/A
• Average Volume (3M): 49.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.20
• Revenue Growth: -17.18%
• EPS Growth: -9.69%
• Country: US
• Employees: 64
• Sector: Technology
• Sector Strength: 89
• Industry: Software - Application
• EPS (TTM): -0.08
• Shares Outstanding: 21,314,236
• 10 Day Avg. Volume: 26,788
• 30 Day Avg. Volume: 49,278
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.40
• Enterprise Value/Revenue: 1.25
• Enterprise Value/Gross Profit: 1.35
• Enterprise Value/Ebitda: -3.73
• 1Y Price Target: $2.00
• Price Target Upside: -18.03% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: $2.00 ▼(-18.03% Downside)

Aware's overall stock score reflects substantial financial challenges, with negative profitability and declining revenues being the most significant factors. While technical analysis shows some positive short-term momentum, poor valuation and increased operating losses further impact the score. Strategic efforts and leadership changes offer potential future growth, but immediate financial performance remains weak.

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 through multiple streams, primarily by selling software licenses for its biometric authentication products and solutions. The company also earns income from subscription-based services, where clients pay for ongoing access to its software and support. Additionally, Aware partners with various organizations to integrate its technology into larger systems, which can lead to revenue-sharing agreements. Consulting and customization services for its software further enhance its revenue model, allowing the company to tailor solutions to meet specific client needs.

Aware Financial Statement Overview

Summary

Aware's financial performance indicates significant challenges with negative income and declining revenues, impacting profitability. The balance sheet is strong, with no net debt, but cash flow sustainability remains a concern due to inconsistent free cash flow.

Income Statement

Aware's income statement shows persistent challenges, with negative EBIT and net income for the past several years, indicating profitability issues. The gross profit margin is decent at 100% for the latest period, but the company has experienced a decline in revenue compared to previous years, indicative of growth challenges.

Balance Sheet

The balance sheet reflects a strong cash position with no net debt due to substantial cash and short-term investments. However, the debt-to-equity ratio increased due to higher relative liabilities, and total assets have been declining. The equity ratio remains robust, showing a strong equity base.

Cash Flow

Cash flows are under pressure with negative operating and free cash flow in the latest period, though the company had positive operating cash flow in the prior year. The lack of consistent free cash flow generation is a concern for sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.58M	17.39M	18.24M	16.01M	16.85M	11.31M
Gross Profit	15.44M	16.26M	16.97M	14.75M	15.64M	10.50M
EBITDA	-5.57M	-4.98M	-6.08M	-7.24M	-5.41M	-8.86M
Net Income	-5.05M	-4.43M	-7.31M	-1.73M	-5.82M	-7.61M
Balance Sheet
Total Assets	39.90M	42.64M	46.30M	51.19M	48.37M	51.63M
Cash, Cash Equivalents and Short-Term Investments	24.83M	27.81M	30.91M	28.98M	29.96M	38.56M
Total Debt	4.18M	4.24M	4.47M	4.99M	0.00	0.00
Total Liabilities	10.43M	11.75M	12.00M	10.98M	6.85M	5.96M
Stockholders Equity	29.47M	30.90M	34.30M	40.21M	41.52M	45.67M
Cash Flow
Free Cash Flow	-3.78M	-3.21M	1.81M	-5.77M	-6.26M	-5.76M
Operating Cash Flow	-3.69M	-3.16M	1.82M	-5.04M	-6.23M	-5.27M
Investing Cash Flow	-1.96M	6.29M	-3.14M	-11.99M	-2.48M	-2.91M
Financing Cash Flow	-212.00K	-159.00K	-426.00K	-1.18M	109.00K	-989.00K

Aware Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AWRE, the sentiment is Positive. The current price of 2.44 is above the 20-day moving average (MA) of 2.31, above the 50-day MA of 2.08, and above the 200-day MA of 1.72, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 61.14 is Neutral, neither overbought nor oversold. The STOCH value of 72.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AWRE.

Aware Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MNDO	71 Outperform	$22.61M	7.31	14.42%	19.82%	-8.02%	-39.67%
NTWK	67 Neutral	$48.48M	198.09	0.75%	―	9.18%	―
Sector *	61 Neutral	€6.61B	18.52	3.81%	2.08%	2.15%	-33.06%
AWRE	55 Neutral	$51.92M	―	-18.88%	―	-17.18%	-9.69%
IDN	51 Neutral	$100.59M	―	-5.20%	―	7.13%	-99.15%
STEC	―	$16.55M	―		―	―	―
CNTM	28 Underperform	$14.26K	―	-108.59%	―	―	-24.81%

Aware Corporate Events

Aware Holds Annual Meeting with Key Shareholder Votes

On June 11, 2025, Aware held its Annual Meeting where shareholders voted on several key issues. Brent P. Johnstone and John S. Stafford, III were re-elected as Class II directors for three-year terms. Additionally, an advisory proposal on executive compensation was approved, and RSM US LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025.