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Aware Inc. (AWRE)
:AWRE
US Market

Aware (AWRE) AI Stock Analysis

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AW

Aware

(NASDAQ:AWRE)

Rating:49Neutral
Price Target:
$2.00
▲(9.29%Upside)
Aware's overall stock score is primarily influenced by its challenging financial performance and poor valuation metrics, which are somewhat offset by positive technical indicators suggesting short-term momentum. The mixed sentiment from the earnings call indicates potential strategic progress, but significant risks remain.

Aware (AWRE) vs. SPDR S&P 500 ETF (SPY)

Aware Business Overview & Revenue Model

Company DescriptionAware, Inc. (AWRE) is a leading provider of biometrics software and solutions. The company specializes in offering a comprehensive range of biometric products that enhance security and identity verification across various sectors, including government, law enforcement, and commercial enterprises. Aware's core offerings include fingerprint, face, and iris recognition technologies, as well as advanced analytics and data management solutions that help organizations improve their identity verification processes.
How the Company Makes MoneyAware makes money primarily through the sale of its biometric software products and solutions. The company's revenue model is built on licensing fees from its software products, which are used by clients to enhance their security and identity verification systems. Aware also generates income through professional services, such as consulting, training, and support, which help clients effectively implement and utilize their biometric technologies. Additionally, Aware may engage in partnerships and collaborations with government agencies and private sector organizations to deploy its solutions in large-scale identity management projects, contributing to its revenue streams.

Aware Earnings Call Summary

Earnings Call Date:Apr 30, 2025
(Q1-2025)
|
% Change Since: 10.24%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
The earnings call highlights a company in transition, with strategic transformations and growth initiatives being implemented. Despite a decline in revenue and increased losses, the company is making progress in strategic partnerships, technology advancements, and federal government positioning. The sentiment is mixed, with significant challenges balanced by strong strategic initiatives.
Q1-2025 Updates
Positive Updates
Strategic Transformation and Growth Initiatives
The company has introduced a streamlined go-to-market strategy aimed at unlocking new revenue streams and addressing new markets. They are in active conversations with several Fortune 500 companies and have strengthened their leadership team with key appointments.
Advancements in Core Technology
Aware is consolidating efforts under the awareness platform, which integrates core biometric capabilities with third-party algorithms. They have revitalized their brand presence and increased visibility at key industry events.
Operational Efficiency and Leadership Changes
Operating expenses were reduced by 5% year-over-year. New leadership, including a new CRO and Board Chairman, has been installed to drive disciplined execution and strategic alignment.
Strong Federal Government Positioning
Aware solutions are relied upon by U.S. Federal agencies, providing a foundation for growth as they expand into new markets. They are strategically aligned with government priorities around secure digital identity and modernization.
Negative Updates
Decline in Total Revenue
Total revenue for Q1 decreased to $3.6 million from $4.4 million in the prior year, primarily due to lower software license sales.
Increased Operating and Net Losses
Operating loss increased to $1.8 million from $1.3 million, and GAAP net loss was $1.6 million compared to $1 million in the previous year.
Decrease in Cash Reserves
Cash, cash equivalents, and marketable securities totaled $24.8 million, down from $27.8 million at the end of the previous year.
Recurring Revenue Decline
Recurring revenue was $2.7 million, down from $3.1 million in the prior year, attributed to the timing of subscription term license renewals.
Company Guidance
During Aware's First Quarter 2025 Conference Call, the company provided several key metrics and strategic updates. Total revenue for Q1 2025 was reported at $3.6 million, a decrease from $4.4 million in the same quarter last year. Recurring revenue also declined from $3.1 million to $2.7 million, attributed to the timing of subscription renewals. Operating expenses were reduced to $5.5 million, down from $5.7 million, while the operating loss increased to $1.8 million compared to $1.3 million in the prior year. The GAAP net loss was $1.6 million or $0.08 per diluted share, contrasted with a $1 million loss or $0.05 per diluted share in Q1 2024. Adjusted EBITDA loss stood at $1.5 million, up from $1 million, reflecting lower revenues slightly offset by reduced expenses. The company maintained cash and marketable securities totaling $24.8 million as of March 31, 2025, down from $27.8 million at the end of 2024. Aware emphasized its strategic transformation, focusing on scalable growth, deepening strategic partnerships, advancing core technology, and scaling sustainably, with a particular emphasis on engaging Fortune 500 companies and expanding federal government opportunities.

Aware Financial Statement Overview

Summary
Aware's financial performance is under pressure due to persistent profitability challenges and declining revenues. Although the balance sheet shows a strong cash position, cash flow sustainability is a concern with negative operating and free cash flows. Improvement in profitability and growth is essential.
Income Statement
45
Neutral
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
60
Neutral
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
50
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue16.58M17.39M18.24M16.01M16.85M11.31M
Gross Profit15.44M16.26M16.97M14.75M15.64M10.50M
EBITDA-5.71M-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 Assets39.90M42.64M46.30M51.19M48.37M51.63M
Cash, Cash Equivalents and Short-Term Investments24.83M27.81M30.91M28.98M29.96M38.56M
Total Debt0.004.24M4.47M4.99M0.000.00
Total Liabilities10.43M11.75M12.00M10.98M6.85M5.96M
Stockholders Equity29.47M30.90M34.30M40.21M41.52M45.67M
Cash Flow
Free Cash Flow-3.78M-3.21M1.81M-5.77M-6.26M-5.76M
Operating Cash Flow-3.69M-3.16M1.82M-5.04M-6.23M-5.27M
Investing Cash Flow-1.96M6.29M-3.14M-11.99M-2.48M-2.91M
Financing Cash Flow-212.00K-159.00K-426.00K-1.18M109.00K-989.00K

Aware Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.83
Price Trends
50DMA
1.71
Positive
100DMA
1.64
Positive
200DMA
1.67
Positive
Market Momentum
MACD
0.05
Positive
RSI
55.37
Neutral
STOCH
27.78
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 1.83 is above the 20-day moving average (MA) of 1.80, above the 50-day MA of 1.71, and above the 200-day MA of 1.67, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 55.37 is Neutral, neither overbought nor oversold. The STOCH value of 27.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AWRE.

Aware Risk Analysis

Aware disclosed 24 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

Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
$38.88M158.850.75%9.18%
66
Neutral
$38.88M158.850.75%9.18%
65
Neutral
$28.92M7.7518.26%15.49%-5.54%-27.40%
65
Neutral
$28.92M7.7518.26%15.49%-5.54%-27.40%
IDIDN
51
Neutral
$108.15M-4.57%5.78%54.19%
50
Neutral
AU$1.52B1.82-28.25%3.28%16.21%-7.40%
49
Neutral
$38.60M-16.05%-9.72%25.68%
28
Underperform
$8.02M-108.59%-85.24%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AWRE
Aware
1.83
-0.05
-2.66%
IDN
Intellicheck Mobilisia
5.45
1.99
57.51%
MNDO
MIND CTI
1.44
-0.26
-15.29%
MNDO
MIND CTI
1.44
-0.26
-15.29%
NTWK
Netsol Technologies
3.32
0.64
23.88%
NTWK
Netsol Technologies
3.32
0.64
23.88%
CNTM
ConnectM Technology Solutions
0.22
-8.85
-97.57%

Aware Corporate Events

Executive/Board ChangesShareholder Meetings
Aware Holds Annual Meeting with Key Shareholder Votes
Neutral
Jun 13, 2025

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.

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.Date of analysis: Jun 19, 2025