authID (AUID) Q3 2025 earnings summary

Executive summary

• Q3 2025 resulted in negative net revenue due to significant customer concessions and contract amendments, despite signing major new contracts with large enterprise clients, including a top 10 supermarket retailer, NECIC, and a fintech platform serving over 100 banks.

• The company shifted focus from high-growth, less-established clients to larger, stable enterprise customers, leading to longer sales cycles but a higher quality pipeline.

• Technology and product innovation, such as PrivacyKey and IDX, drove increased engagement and partnerships with top-tier organizations and industry leaders.

• Cash used in operations was $11.8 million for the nine months ended September 30, 2025, with $4.9 million in cash and $4.6 million in working capital at quarter-end.

• $8.5 million was raised in equity financing in April and May 2025 to support ongoing operations.

Financial highlights

• Gross revenue for Q3 2025 was $0.6 million (up from $0.2 million year-over-year), but net revenue was negative $0.1 million due to $0.7 million in concessions and ceased revenue recognition for a major customer.

• Operating expenses rose to $5.1 million in Q3 2025 (up from $3.8 million), with a nine-month total of $15.7 million.

• Net loss for Q3 2025 was $5.2 million ($0.38/share), and $13.9 million for the nine months ended September 30, 2025.

• Adjusted EBITDA loss was $4.1 million for Q3 and $11.4 million for the nine months.

• Annual Recurring Revenue (ARR) as of Q3 2025 was $1.7 million, up from $1.0 million in Q3 2024.

Outlook and guidance

• BAR target for 2025 was reduced from $18 million to $6 million due to longer enterprise sales cycles.

• Management plans to raise additional funds to support operations, with no assurance of profitability or positive cash flow in the near term.

• RPO at Q3 2025 was $3.6 million, with about 48% expected to be recognized as revenue over the next twelve months, though timing is uncertain.

• Focus remains on signing large enterprise clients, expanding product adoption, and building a sustainable recurring revenue stream.

• 2025 strategy emphasizes leveraging best technology and team to maximize shareholder value.