Aware (AWRE) Q3 2025 earnings summary

Executive summary

• Achieved 33% year-over-year revenue growth in Q3 2025, reaching $5.1 million, driven by new customer activity, expansion within the existing base, and strong software license sales.

• Net loss improved to $1.1 million ($0.05 per diluted share) in Q3 2025 from $1.2 million ($0.06 per share) in the prior year, with adjusted EBITDA loss narrowing to $0.8 million from $1.1 million.

• Operating expenses rose to $6.4 million in Q3 2025 from $5.3 million in Q3 2024, reflecting investments in sales, marketing, and product development.

• Launched Intelligent Liveness and achieved FIDO Alliance Certification for Face Verification, reinforcing leadership in biometric security.

• CEO transition from Robert Eckel to Ajay Amlani in early 2025.

Financial highlights

• Q3 2025 revenue was $5.1 million, up 33% year-over-year, with software license revenue rising 115% to $2.5 million and maintenance revenue up 5% to $2.4 million.

• Services and other revenue declined 45% to $0.2 million in Q3 2025.

• Gross margin for Q3 2025 was 90%, down from 93% in Q3 2024; cost of revenue increased to $0.5 million.

• Cash, cash equivalents, and marketable securities totaled $22.5 million as of September 30, 2025, down from $27.8 million at year-end 2024.

• Deferred revenue increased to $6.5 million as of September 30, 2025.

Outlook and guidance

• Quarterly results may vary due to timing of customer decisions, license mix, and potential short-term impacts such as government shutdowns.

• Operating expenses are expected to increase in Q4 due to the full impact of Q3 investments.

• Cash resources are expected to be sufficient to fund operations for at least the next twelve months.

• Anticipate more consistent and recurring revenue as the go-to-market engine matures.

• Long-term strategy remains focused on sustainable growth and value creation.