Aware Financials
This page shows Aware (AWRE) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 17 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
High-gross-margin economics are being outweighed by persistent cash-funded operating losses, steadily shrinking Aware's liquidity cushion.
The brief cash-positive year in FY2023 looks less like a durable earnings turn and more like a working-capital release: accounts receivable fell to$2.5M as operating cash flow reached$1.8M . By FY2025, operating cash flow had slipped back to-$5.4M even though revenue remained around$17.3M , implying the underlying cost structure still prevents the business from funding itself.
Gross margin stayed above
The balance sheet still shows limited leverage—there is no reported long-term debt and debt-to-equity was 0.4x in FY2025—but liquidity is being spent down. Cash fell from
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Aware's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Aware has an operating margin of -37.9%, meaning the company retains $-38 of operating profit per $100 of revenue. This results in a moderate score of 33/100, indicating healthy but not exceptional operating efficiency. This is down from -31.9% the prior year.
Aware's revenue declined 0.6% year-over-year, from $17.4M to $17.3M. This contraction results in a growth score of 23/100.
Aware has a moderate D/E ratio of 0.42. This balance of debt and equity financing earns a leverage score of 63/100.
With a current ratio of 3.77, Aware holds $3.77 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 84/100.
While Aware generated -$5.4M in operating cash flow, capex of $165K consumed most of it, leaving -$5.6M in free cash flow. This results in a low score of 12/100, reflecting heavy capital investment rather than weak cash generation.
Aware generates a 22.5% ROE, indicating limited profit relative to shareholders' investment. This results in a returns score of 29/100. This is up from 14.3% the prior year.
Aware scores -0.68, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($29.9M) relative to total liabilities ($11.1M). This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Aware passes 3 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 2 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Aware generates $-0.92 in operating cash flow (-$5.4M OCF vs $5.9M net income). This low ratio suggests earnings are primarily driven by accounting accruals rather than cash generation, which may not be sustainable.
Key Financial Metrics
Earnings & Revenue
Aware generated $17.3M in revenue in fiscal year 2025. This represents a decrease of 0.6% from the prior year.
Aware's EBITDA was -$6.0M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 20.1% from the prior year.
Aware reported $5.9M in net income in fiscal year 2025. This represents an increase of 32.5% from the prior year.
Aware earned $-0.28 per diluted share (EPS) in fiscal year 2025. This represents a decrease of 33.3% from the prior year.
Cash & Balance Sheet
Aware generated -$5.6M in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 73.5% from the prior year.
Aware held $7.3M in cash against $0 in long-term debt as of fiscal year 2025.
Aware had 21M shares outstanding in fiscal year 2025. This represents an increase of 1.6% from the prior year.
Margins & Returns
Aware's gross margin was 92.3% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 2.8 percentage points from the prior year.
Aware's operating margin was -37.9% in fiscal year 2025, reflecting core business profitability. This is down 6.0 percentage points from the prior year.
Aware's net profit margin was 34.0% in fiscal year 2025, showing the share of revenue converted to profit. This is up 8.5 percentage points from the prior year.
Aware's ROE was 22.5% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 8.1 percentage points from the prior year.
Capital Allocation
Aware invested $8.3M in research and development in fiscal year 2025. This represents an increase of 7.0% from the prior year.
Aware spent $115K on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 44.4% from the prior year.
Aware invested $165K in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 266.7% from the prior year.
AWRE Income Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $3.4M-27.4% | $4.7M-9.1% | $5.1M+31.7% | $3.9M+8.0% | $3.6M-24.8% | $4.8M+24.6% | $3.8M-10.9% | $4.3M |
| Cost of Revenue | $334K+4.4% | $320K-34.8% | $491K+44.8% | $339K+96.0% | $173K+810.5% | $19K-93.0% | $270K0.0% | $270K |
| Gross Profit | $3.1M-29.7% | $4.3M-6.4% | $4.6M+30.4% | $3.6M+3.5% | $3.4M-28.1% | $4.8M+33.5% | $3.6M-11.7% | $4.1M |
| R&D Expenses | $3.2M+40.9% | $2.3M+7.3% | $2.1M+8.7% | $2.0M+2.0% | $1.9M+4.7% | $1.8M-2.0% | $1.9M+0.3% | $1.9M |
| SG&A Expenses | $1.7M-12.9% | $1.9M+11.9% | $1.7M+6.7% | $1.6M-6.4% | $1.7M-34.0% | $2.6M+95.7% | $1.3M-8.2% | $1.4M |
| Operating Income | -$3.6M-151.9% | -$1.4M-11.9% | -$1.3M+34.0% | -$2.0M-5.9% | -$1.9M-25.6% | -$1.5M-0.5% | -$1.5M-9.4% | -$1.3M |
| Interest Expense | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Income Tax | $8K-96.3% | $219K+4280.0% | $5K-80.8% | $26K+271.4% | $7K+800.0% | -$1K-106.7% | $15K-61.5% | $39K |
| Net Income | -$3.5M-133.6% | $10.3M+1077.5% | -$1.1M+40.5% | -$1.8M-10.7% | -$1.6M-120.8% | $7.7M+757.2% | -$1.2M-7.1% | -$1.1M |
| EPS (Diluted) | $-0.16 | N/A | $-0.05+37.5% | $-0.080.0% | $-0.08 | N/A | $-0.06-20.0% | $-0.05 |
AWRE Balance Sheet
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $33.2M-10.7% | $37.2M-7.6% | $40.3M+5.7% | $38.1M-4.5% | $39.9M-6.4% | $42.6M-2.5% | $43.7M+1.2% | $43.2M |
| Current Assets | $24.5M-13.3% | $28.3M-9.5% | $31.2M+8.3% | $28.8M-5.2% | $30.4M-7.8% | $33.0M-2.5% | $33.8M+2.2% | $33.1M |
| Cash & Equivalents | $4.6M-37.0% | $7.3M+15.5% | $6.3M-13.8% | $7.3M-13.7% | $8.5M-34.8% | $13.0M+15.6% | $11.2M-2.5% | $11.5M |
| Inventory | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | $2.4M-20.5% | $3.0M-51.5% | $6.2M+149.1% | $2.5M-11.8% | $2.8M-3.2% | $2.9M-27.6% | $4.0M+10.4% | $3.7M |
| Goodwill | $3.1M0.0% | $3.1M0.0% | $3.1M0.0% | $3.1M0.0% | $3.1M0.0% | $3.1M0.0% | $3.1M0.0% | $3.1M |
| Total Liabilities | $10.3M-6.7% | $11.1M-15.2% | $13.0M+29.8% | $10.0M-3.6% | $10.4M-11.3% | $11.7M-0.7% | $11.8M+11.4% | $10.6M |
| Current Liabilities | $6.9M-8.4% | $7.5M-19.2% | $9.3M+47.7% | $6.3M-4.1% | $6.6M-16.6% | $7.9M+0.4% | $7.8M+20.8% | $6.5M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Equity | $22.9M-12.4% | $26.1M-4.0% | $27.2M-2.9% | $28.1M-4.8% | $29.5M-4.6% | $30.9M-3.1% | $31.9M-2.2% | $32.6M |
| Retained Earnings | -$79.3M-4.6% | -$75.8M-2.0% | -$74.4M-1.4% | -$73.3M-2.5% | -$71.5M-2.3% | -$69.9M-1.7% | -$68.8M-1.7% | -$67.6M |
AWRE Cash Flow Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$2.7M-355.9% | $1.0M+144.5% | -$2.4M-104.4% | -$1.2M+60.9% | -$2.9M-530.5% | $683K+189.3% | -$765K-14.5% | -$668K |
| Capital Expenditures | $0-100.0% | $120K | $0 | $0-100.0% | $45K | $0 | $0 | N/A |
| Free Cash Flow | -$2.7M-389.1% | $926K+139.4% | -$2.4M-104.4% | -$1.2M+61.4% | -$3.0M-537.0% | $683K+189.3% | -$765K | N/A |
| Investing Cash Flow | -$16K+86.7% | -$120K-109.0% | $1.3M+4084.4% | $32K+102.1% | -$1.5M-222.0% | $1.3M+2740.9% | $44K+102.5% | -$1.7M |
| Financing Cash Flow | $0-100.0% | $51K+750.0% | $6K+117.1% | -$35K+34.0% | -$53K+71.2% | -$184K-1315.4% | -$13K | N/A |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | $0 | $0 | $0-100.0% | $62K+17.0% | $53K | N/A | N/A | N/A |
AWRE Financial Ratios
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 90.1%-3.0pp | 93.1%+2.7pp | 90.4%-0.9pp | 91.3%-3.9pp | 95.2%-4.4pp | 99.6%+6.6pp | 93.0%-0.8pp | 93.8% |
| Operating Margin | -107.8%-76.7pp | -31.1%-5.8pp | -25.3%+25.1pp | -50.3%+1.0pp | -51.3%-20.6pp | -30.8%+7.4pp | -38.1%-7.1pp | -31.0% |
| Net Margin | -102.1%-323.0pp | 220.8%+241.4pp | -20.5%+24.9pp | -45.4%-1.1pp | -44.3%-204.2pp | 159.9%+190.2pp | -30.3%-5.1pp | -25.2% |
| Return on Equity | -15.1%-54.5pp | 39.4%+43.3pp | -3.9%+2.4pp | -6.3%-0.9pp | -5.4%-30.3pp | 24.8%+28.5pp | -3.7%-0.3pp | -3.3% |
| Return on Assets | -10.4%-38.1pp | 27.7%+30.3pp | -2.6%+2.0pp | -4.6%-0.6pp | -4.0%-22.0pp | 18.0%+20.7pp | -2.7%-0.2pp | -2.5% |
| Current Ratio | 3.56-0.2 | 3.77+0.4 | 3.36-1.2 | 4.59-0.1 | 4.64+0.4 | 4.19-0.1 | 4.32-0.8 | 5.11 |
| Debt-to-Equity | 0.45+0.0 | 0.42-0.1 | 0.48+0.1 | 0.360.0 | 0.35-0.0 | 0.380.0 | 0.37+0.0 | 0.33 |
| FCF Margin | -79.1%-98.9pp | 19.9%+65.8pp | -45.9%-16.3pp | -29.5%+53.2pp | -82.7%-97.0pp | 14.2%+34.1pp | -19.9% | N/A |
Similar Companies
Frequently Asked Questions
What is Aware's annual revenue?
Aware (AWRE) reported $17.3M in total revenue for fiscal year 2025. This represents a -0.6% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Aware's revenue growing?
Aware (AWRE) revenue declined by 0.6% year-over-year, from $17.4M to $17.3M in fiscal year 2025.
Is Aware profitable?
Yes, Aware (AWRE) reported a net income of $5.9M in fiscal year 2025, with a net profit margin of 34.0%.
What is Aware's EBITDA?
Aware (AWRE) had EBITDA of -$6.0M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is Aware's gross margin?
Aware (AWRE) had a gross margin of 92.3% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Aware's operating margin?
Aware (AWRE) had an operating margin of -37.9% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Aware's net profit margin?
Aware (AWRE) had a net profit margin of 34.0% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Aware's return on equity (ROE)?
Aware (AWRE) has a return on equity of 22.5% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Aware's free cash flow?
Aware (AWRE) generated -$5.6M in free cash flow during fiscal year 2025. This represents a -73.5% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Aware's operating cash flow?
Aware (AWRE) generated -$5.4M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Aware's total assets?
Aware (AWRE) had $37.2M in total assets as of fiscal year 2025, including both current and long-term assets.
What are Aware's capital expenditures?
Aware (AWRE) invested $165K in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Aware spend on research and development?
Aware (AWRE) invested $8.3M in research and development during fiscal year 2025.
What is Aware's current ratio?
Aware (AWRE) had a current ratio of 3.77 as of fiscal year 2025, which is generally considered healthy.
What is Aware's debt-to-equity ratio?
Aware (AWRE) had a debt-to-equity ratio of 0.42 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Aware's return on assets (ROA)?
Aware (AWRE) had a return on assets of 15.8% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Aware's cash runway?
Based on fiscal year 2025 data, Aware (AWRE) had $7.3M in cash against an annual operating cash burn of $5.4M. This gives an estimated cash runway of approximately 16 months at the current burn rate. Cash runway measures how long a company can continue operating before running out of cash, assuming no additional funding.
What is Aware's Altman Z-Score?
Aware (AWRE) has an Altman Z-Score of -0.68, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Aware's Piotroski F-Score?
Aware (AWRE) has a Piotroski F-Score of 3 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Aware's earnings high quality?
Aware (AWRE) has an earnings quality ratio of -0.92x, considered low quality (accrual-driven). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
How financially healthy is Aware?
Aware (AWRE) scores 41 out of 100 on our Financial Health Score, indicating moderate standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.