Aware Reports First Quarter Financial Results
Rhea-AI Summary
Aware (NASDAQ: AWRE) reported first quarter 2026 results for the period ended March 31, 2026. Revenue was $3.4 million versus $3.6 million year‑ago. Operating expenses were $7.0 million, including ~$0.7 million of one‑time severance. Net loss was $3.5 million, or $(0.16) per diluted share; Adjusted EBITDA loss was $3.2 million. Management said it is shifting to a platform‑first strategy with the Awareness Platform, cited 98% survey interest, and expects to reduce operating expenses by $4.0 million on an annualized basis starting Q2 2026. A webcast is scheduled April 29, 2026 at 5:00 p.m. ET.
Positive
- Planned annualized operating expense reduction of $4.0M starting Q2 2026
- Shift to a platform‑first model centered on Awareness Platform
- Reported increase in subscription license revenue versus prior year
- Intelligent Liveness performed in DHS Remote Identity Validation Rally Track 3
Negative
- Revenue $3.4M, down from $3.6M year‑ago
- Operating expenses $7.0M, including ~$0.7M one‑time severance
- Net loss $3.5M, or $(0.16) per diluted share
- Adjusted EBITDA loss $3.2M in Q1 2026
Key Figures
Market Reality Check
Peers on Argus
While selected software peers like RDZN and UPLD showed upside momentum (scanner median move noted at 12.9%), AWRE’s pre-earnings price was down 0.79%, indicating stock-specific weakness rather than a broad sector move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 04 | Q4/FY 2025 earnings | Negative | -6.5% | Flat FY2025 revenue at $17.3M with wider net and EBITDA losses. |
| Oct 29 | Q3 2025 earnings | Negative | -6.0% | Q3 2025 revenue $5.1M and continued net loss despite growth highlights. |
| Jul 30 | Q2 2025 earnings | Negative | -10.2% | Q2 2025 revenue decline to $3.9M with wider net loss and EBITDA loss. |
| Jul 16 | Q2 2025 webcast set | Neutral | -0.4% | Announcement of scheduling the Q2 2025 earnings webcast and replay details. |
| Apr 30 | Q1 2025 earnings | Negative | -2.6% | Q1 2025 revenue $3.6M with increased net loss and lower recurring revenue. |
Earnings-related news has typically drawn negative price reactions, even when operational progress was highlighted.
Over the past year, Aware’s earnings and related communications have featured mostly flat or declining revenue and persistent net losses. Q1 2025 results on Apr 30, 2025 showed revenue of $3.6M and a widened net loss, and Q2–Q4 2025 updates continued this pattern of losses despite product and certification wins. The Mar 4, 2026 Q4/FY 2025 release reported $17.3M revenue and a larger annual net loss. Historically, these earnings updates have been followed by negative price moves, framing today’s Q1 2026 release within a continued transition phase.
Historical Comparison
In the last five earnings-related releases, AWRE’s average next-day move was -5.15%, as results often paired flat revenue with ongoing net losses.
Recent earnings show recurring quarterly updates with flat to declining revenue and wider losses as Aware invests in its biometrics platform and cloud-oriented offerings.
Market Pulse Summary
This announcement details Q1 2026 revenue of $3.4M, higher operating expenses of $7.0M including $0.7M in severance, and a widened net loss of $3.5M as Aware shifts toward a unified biometric orchestration platform. Management targets a $4.0M annualized operating expense reduction starting in Q2 2026. Historically, earnings updates have paired flat revenue with ongoing losses, while recent insider purchases and ongoing platform investments frame the risk–reward around execution on this transition.
Key Terms
adjusted EBITDA financial
AI-generated analysis. Not financial advice.
BURLINGTON, Mass., April 29, 2026 (GLOBE NEWSWIRE) -- Aware, Inc. (NASDAQ: AWRE), a global leader in biometric identity and authentication solutions, today reported financial results for the first quarter ended March 31, 2026.
First Quarter 2026 and Financial Recent Operational Highlights
- Delivered strong performance in the DHS Remote Identity Validation Rally, Track 3, where Aware’s Intelligent Liveness demonstrated the ability to stop sophisticated attack vectors while maintaining a high-quality user experience.
- Revenue was
$3.4 million , compared to$3.6 million in the first quarter of 2025. - Operating expenses were
$7.0 million , including approximately$0.7 million of one-time severance costs related to a workforce reduction aligned with our strategic transition from a product-focused model to a platform-driven company, compared to$5.5 million in the first quarter of 2025.
Management Commentary
“This quarter marked an important step in our transformation as we continued aligning the business around a unified biometric orchestration platform,” said CEO Ajay Amlani. “As part of this transition, we are taking deliberate actions to streamline our cost structure and operating model, ensuring we are focused on our highest-impact opportunities.
“We are moving toward a platform-first approach with the Awareness Platform at the center—designed to meet growing demand for biometric orchestration across both government and enterprise markets. With
“We believe this shift positions Aware to operate more efficiently, execute with greater focus, and deliver more consistent, long-term value as we advance the platform and scale adoption over time.”
First Quarter 2026 Financial Results
Revenue was
Operating expenses were
As a result of efforts we’ve taken to streamline our business, we expect to reduce operating expenses by
Net loss totaled
Adjusted EBITDA loss totaled
Webcast
Aware management will host a webcast today, April 29, 2026, at 5:00 p.m. Eastern time to discuss these results and provide an update on business conditions. A question-and-answer session will follow management’s prepared remarks.
Date: Wednesday, April 29, 2026
Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time)
Webcast: Register Here
The presentation will be made available for replay in the investor relations section of the Company’s website. The audio recording will be available for approximately 90 days following the live event.
About Aware
Aware, Inc. (NASDAQ: AWRE) is a proven global leader in biometric identity and authentication solutions. Its Awareness Platform transforms biometric data into actionable intelligence, empowering organizations to verify identities and prevent fraud with speed, accuracy, and confidence. Designed for mission-critical enterprise environments, the platform delivers intelligent, scalable architecture, real-time insights, and reliable security—ensuring precise identification when every millisecond matters. Aware is headquartered in Burlington, Massachusetts. To learn more, visit our website or follow us on LinkedIn and X.
Safe Harbor Warning
Portions of this release contain forward-looking statements regarding future events and are subject to risks and uncertainties, such as estimates or projections of future revenue, earnings and non-recurring charges, and the growth of the biometrics markets. Aware wishes to caution you that there are factors that could cause actual results to differ materially from the results indicated by such statements.
Risk factors related to our business include, but are not limited to: i) the changes we are implementing in our business to drive growth in our business may not be successful on the timeline we expect, or at all; ii) our operating results may fluctuate significantly and are difficult to predict; iii) we derive a significant portion of our revenue from government customers, and our business may be adversely affected by changes in the contracting or fiscal policies of those governmental entities; iv) a significant commercial market for biometrics technology may not develop, and if it does, we may not be successful in that market; v) we derive a significant portion of our revenue from third party channel partners; vi) the biometrics market may not experience significant growth or our products may not achieve broad acceptance; vii) we face intense competition from other biometrics solution providers; viii) our business is subject to rapid technological change; ix) our software products may have errors, defects or bugs which could harm our business; x) our business may be adversely affected by our use of open source software; xi) we rely on third party software to develop and provide our solutions and significant defects in third party software could harm our business; xii) part of our future business is dependent on market demand for, and acceptance of, the cloud-based model for the use of software: xiii) our operational systems and networks and products may be subject to an increasing risk of continually evolving cybersecurity or other technological risks which could result in the disclosure of company or customer confidential information, damage to our reputation, additional costs, regulatory penalties and financial losses; xiv) our intellectual property is subject to limited protection; xv) we may be sued by third parties for alleged infringement of their proprietary rights; xvi) we must attract and retain key personnel; xvii) our business may be affected by government regulations, government cost cutting initiatives and adverse economic conditions; and xviii) we may make acquisitions that could adversely affect our results, and xix) we may have additional tax liabilities.
We refer you to the documents Aware files from time to time with the Securities and Exchange Commission, specifically the section titled Risk Factors in our annual report on Form 10-K for the fiscal year ended December 31, 2025 and other reports and filings made with the Securities and Exchange Commission.
| AWARE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (In thousands, except per share data) (unaudited) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Revenue: | ||||||||
| Software licenses | $ | 1,031 | $ | 1,316 | ||||
| Software maintenance | 2,068 | 2,106 | ||||||
| Services and other | 287 | 186 | ||||||
| Total revenue | 3,386 | 3,608 | ||||||
| Costs and expenses: | ||||||||
| Cost of revenue | 334 | 173 | ||||||
| Research and development | 3,223 | 1,922 | ||||||
| Selling and marketing | 1,824 | 1,663 | ||||||
| General and administrative | 1,655 | 1,702 | ||||||
| Total costs and expenses | 7,036 | 5,460 | ||||||
| Operating loss | (3,650 | ) | (1,852 | ) | ||||
| Interest income | 200 | 261 | ||||||
| Loss before provision for income taxes | (3,450 | ) | (1,591 | ) | ||||
| Provision for income taxes | 8 | 7 | ||||||
| Net loss | $ | (3,458 | ) | $ | (1,598 | ) | ||
| Other comprehensive (loss) income, net of tax: | ||||||||
| Unrealized (loss) gain on available-for-sale securities | (62 | ) | 44 | |||||
| Comprehensive loss | $ | (3,520 | ) | $ | (1,554 | ) | ||
| Net loss per share – basic | $ | (0.16 | ) | $ | (0.08 | ) | ||
| Net loss per share – diluted | $ | (0.16 | ) | $ | (0.08 | ) | ||
| Weighted-average shares – basic | 21,593 | 21,267 | ||||||
| Weighted-average shares – diluted | 21,593 | 21,267 | ||||||
| Prior-period amounts have been reclassified to conform to the current period presentation. | ||||||||
| AWARE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (unaudited) | ||||||||
| March 31, 2026 | December 31, 2025 | |||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 4,576 | $ | 7,269 | ||||
| Marketable securities | 14,998 | 15,026 | ||||||
| Accounts and unbilled receivables, net | 3,418 | 4,358 | ||||||
| Property and equipment, net | 427 | 477 | ||||||
| Goodwill and intangible assets, net | 4,600 | 4,689 | ||||||
| Right of use assets | 3,556 | 3,642 | ||||||
| All other assets, net | 1,625 | 1,734 | ||||||
| Total assets | $ | 33,200 | $ | 37,195 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Accounts payable and accrued expenses | $ | 1,847 | $ | 1,975 | ||||
| Deferred revenue | 4,576 | 5,115 | ||||||
| Operating lease liability | 3,891 | 3,968 | ||||||
| Total stockholders’ equity | 22,886 | 26,137 | ||||||
| Total liabilities and stockholders’ equity | $ | 33,200 | $ | 37,195 | ||||
Non-GAAP Measures
We define adjusted EBITDA as U.S. GAAP net loss plus depreciation of fixed assets and amortization of intangible assets, stock-based compensation expenses, other (expense) income, net, and income tax provision. We discuss adjusted EBITDA in our quarterly earnings releases and certain other communications, as we believe adjusted EBITDA is an important measure. We use adjusted EBITDA in internal forecasts and models when establishing internal operating budgets, supplementing the financial results and forecasts reported to our Board of Directors, and evaluating short-term and long-term operating trends in our operations. We believe that the adjusted EBITDA financial measure assists in providing an enhanced understanding of our underlying operational measures to manage the business, to evaluate performance compared to prior periods and the marketplace, and to establish operational goals. We believe that the adjusted EBITDA adjustments are useful to investors because they allow investors to evaluate the effectiveness of the methodology and information used by management in our financial and operational decision-making.
We define recurring revenue as the portion of Aware revenue that is based on a term arrangement and is likely to continue in the future, such as annual maintenance or subscription contracts. We use recurring revenue as a metric to communicate the portion of our revenue that has greater stability and predictability. We believe that recurring revenue assists in providing an enhanced understanding of effectiveness of our efforts to transition to a subscription-based business model.
Adjusted EBITDA and recurring revenue are non-GAAP financial measures and should not be considered in isolation or as a substitute for financial information provided in accordance with U.S. GAAP. These non-GAAP financial measures may not be computed in the same manner as similarly titled measures used by other companies. We expect to continue to incur expenses similar to the financial adjustments described above in arriving at adjusted EBITDA and investors should not infer from our presentation of this non-GAAP financial measure that these costs are unusual, infrequent or non-recurring. The following table includes the reconciliations of our U.S. GAAP net loss, the most directly comparable U.S. GAAP financial measure, to our adjusted EBITDA for the three months ended March 31, 2026 and 2025 and our U.S. GAAP revenue, the most directly comparable U.S. GAAP financial measure, to our recurring revenue for the three months ended March 31, 2026 and 2025.
| AWARE, INC. Reconciliation of GAAP Net loss to Adjusted EBITDA (In thousands) (unaudited) | ||||||||
| Three Months Ended | ||||||||
| March 31, | March 31, | |||||||
| 2026 | 2025 | |||||||
| Net loss | $ | (3,458 | ) | $ | (1,598 | ) | ||
| Depreciation and amortization | 139 | 144 | ||||||
| Stock based compensation | 269 | 180 | ||||||
| Interest income | (200 | ) | (261 | ) | ||||
| Provision for income taxes | 8 | 7 | ||||||
| Adjusted EBITDA loss | $ | (3,242 | ) | $ | (1,528 | ) | ||
| AWARE, INC. Revenue Breakout (In thousands) (unaudited) | ||||||||
| Three Months Ended | ||||||||
| March 31, | March 31, | |||||||
| 2026 | 2025 | |||||||
| Recurring revenue: | ||||||||
| Software subscriptions | $ | 669 | $ | 531 | ||||
| Software maintenance | 2,068 | 2,106 | ||||||
| Services and other | 148 | 47 | ||||||
| Total recurring revenue | 2,885 | 2,684 | ||||||
| Non-recurring revenue: | ||||||||
| Software licenses | 362 | 785 | ||||||
| Services and other | 139 | 139 | ||||||
| Total non-recurring revenue | 501 | 924 | ||||||
| Total revenue | $ | 3,386 | $ | 3,608 | ||||
| Prior-period amounts have been reclassified to conform to the current period presentation. | ||||||||
Aware is a registered trademark of Aware, Inc.
| Company Contact Delaney Gembis Aware, Inc. 781-687-0300 Marketing@Aware.com | Investor Contact David Traverse Aware, Inc. 781-687-0300 IR@Aware.com |
