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Aware (AWRE)
NASDAQ:AWRE
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Aware
(NASDAQ:AWRE)
53Neutral
Aware (AWRE) vs. S&P 500 (SPY)
Market Cap
$33.96M
Dividend YieldN/A
Average Volume (3M)25.66K
Price to Earnings (P/E)―
Beta (1Y)1.39
Revenue Growth-9.72%
EPS Growth25.68%
CountryUS
Employees64
SectorTechnology
Sector Strength66
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.07
Shares Outstanding21,091,532
10 Day Avg. Volume24,116
30 Day Avg. Volume25,662
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.38
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit0.80
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Aware Business Overview & Revenue Model
Company DescriptionAware, Inc. (AWRE) is a leading provider of biometrics software and services, specializing in solutions that enhance security and identification processes. The company operates primarily in the biometrics and security sectors, offering a suite of products that include fingerprint, face, and iris recognition technologies. Aware's solutions are utilized in various applications, such as border management, law enforcement, and access control systems, providing both government and commercial clients with robust and reliable identification tools.
How the Company Makes MoneyAware, Inc. generates revenue through the sale of its biometrics software licenses and related services. The company's primary revenue streams include software licensing fees, maintenance contracts, and professional services such as consulting and integration support. Aware also earns income from custom development projects tailored to meet specific client needs. Significant partnerships with government agencies and commercial enterprises help drive sales, as these collaborations often require sophisticated security solutions that Aware is well-positioned to provide. Additionally, Aware's focus on innovation and efficiency in biometrics technology contributes to its competitive advantage and financial performance.
Aware Financial Statement Overview
Summary
Aware faces profitability and growth challenges, reflected by negative income and declining revenues. The balance sheet is strong with significant cash reserves, but cash flow sustainability is uncertain. Continued emphasis on improving profitability and cash flow generation is essential.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.45
Neutral
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.60
Neutral
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.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 17.39M | 18.24M | 16.01M | 16.85M | 11.31M | Gross Profit |
| 16.26M | 16.97M | 14.75M | 15.64M | 10.50M | EBIT |
| -5.54M | -8.54M | -7.89M | -6.10M | -9.42M | EBITDA |
| -4.98M | -6.08M | -7.24M | -5.41M | -8.86M | Net Income Common Stockholders |
| -4.43M | -7.31M | -1.73M | -5.82M | -7.61M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 27.81M | 30.91M | 28.98M | 29.96M | 38.56M | Total Assets |
| 42.64M | 46.30M | 51.19M | 48.37M | 51.63M | Total Debt |
| 4.24M | 4.47M | 4.99M | 0.00 | 0.00 | Net Debt |
| -8.73M | -5.53M | -6.76M | -29.96M | -38.56M | Total Liabilities |
| 11.75M | 12.00M | 10.98M | 6.85M | 5.96M | Stockholders Equity |
| 30.90M | 34.30M | 40.21M | 41.52M | 45.67M |
| Cash Flow | Free Cash Flow | |||
| -3.21M | 1.81M | -5.77M | -6.26M | -5.76M | Operating Cash Flow |
| -3.16M | 1.82M | -5.04M | -6.23M | -5.27M | Investing Cash Flow |
| 6.29M | -3.14M | -11.99M | -2.48M | -2.91M | Financing Cash Flow |
| -159.00K | -426.00K | -1.18M | 109.00K | -989.00K |
Aware Technical Analysis
Positive
1.75
Price Trends
1.58
Positive
1.60
Positive
1.77
Negative
Market Momentum
0.03
Negative
64.68
Neutral
75.61
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 1.75 is above the 20-day moving average (MA) of 1.59, above the 50-day MA of 1.58, and below the 200-day MA of 1.77, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 64.68 is Neutral, neither overbought nor oversold. The STOCH value of 75.61 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $33.10M | 7.47 | 18.26% | 13.54% | -5.54% | -27.40% | |
60 Neutral | $10.83B | 10.47 | -6.71% | 2.99% | 7.73% | -12.97% | |
55 Neutral | $27.87M | 39.37 | -2.43% | ― | 9.28% | 60.89% | |
53 Neutral | $33.96M | ― | -16.05% | ― | -9.72% | 25.68% | |
51 Neutral | $51.92M | ― | -5.24% | ― | 5.78% | 54.19% | |
28 Underperform | $15.63M | ― | -108.59% | ― | ― | -85.24% |
* Technology Sector Average
Performance Comparison
AWRE
Aware
1.75
-0.40
-18.60%
IDN
Intellicheck Mobilisia
2.79
-0.14
-4.78%
MNDO
MIND CTI
1.45
-0.26
-15.20%
NTWK
Netsol Technologies
2.40
-0.19
-7.34%
CNTM
ConnectM Technology Solutions
0.26
-10.98
-97.69%
Aware Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 5.42%|
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 Corporate Events
Executive/Board Changes
Aware Appoints CFO David Traverse as Interim CEO
Neutral
Jan 2, 2025
Aware, Inc. has appointed its Chief Financial Officer, David Traverse, as interim Chief Executive Officer following the resignation of Bob Eckel, effective January 1, 2025. Traverse, who joined Aware in 2020 and held various financial roles, will serve as interim CEO until a permanent replacement is found, as the company continues its search for a new leader.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.