authID 2025 Q3 Earnings Deepened Losses Amid Revenue Decline and Strategic Shifts

authID (AUID) reported a 142.6% revenue decline to -$106,146 in Q3 2025, missing expectations, while losses widened to $0.38 per share and $5.17 million net loss, reflecting ongoing challenges. The company slashed its 2025 bARR target from $18 million to $6 million due to extended enterprise sales cycles, signaling a strategic pivot toward larger clients despite short-term financial setbacks.

Revenue

authID’s total revenue plummeted to -$106,146 in Q3 2025, a stark 142.6% decline from $248,920 in the prior-year period. The negative net revenue stemmed from accounting adjustments tied to underperforming FAT 100 clients, which offset gains from new enterprise contracts.

Earnings/Net Income

The company’s losses deepened to $0.38 per share in Q3 2025, a 22.6% increase in per-share losses compared to $0.31 in Q3 2024. Net losses expanded to $5.17 million, a 53.7% year-over-year surge, as operating expenses rose to $5.1 million. The EPS decline and net loss widening underscore persistent financial pressures.

Price Action

authID’s stock surged 8.63% in the latest trading day, 15.90% over the past week, and 4.53% month-to-date, defying its earnings performance. The post-earnings price action review revealed a 12.5% average gain for investors buying shares on revenue raise dates and holding for 30 days, though market timing risks remain.

CEO Commentary

CEO Rhoniel Daguro acknowledged Q3’s negative net revenue due to underperforming FAT 100 clients but highlighted progress in securing $200,000 in bARR from enterprise deals with a UK retailer, NESIC/NEC, and an international bank. Despite lowering 2025 bARR guidance, Daguro expressed confidence in authID’s Agentic AI security and biometric authentication leadership, emphasizing long-term growth potential.

Guidance

authID reported Q3 2025 revenue of -$106,146, EPS of -$0.38, and a $5.17 million net loss. The company revised its 2025 bARR target downward to $6 million from $18 million, citing extended sales cycles for enterprise clients. CFO Ed Sellitto noted $3.6 million in remaining performance obligations (RPO) as of September 30, 2025, with expectations of a rebound as deals close.

Additional News

authID announced a strategic shift toward enterprise clients, securing contracts with a top 20 global retailer and expanding partnerships with NESIC and Prove. The company launched PrivacyKey and IDX, targeting Agentic AI security and enterprise scalability. Despite a 53.7% year-over-year net loss increase, authID signed $200,000 in Q3 bARR from new clients.

The company’s focus on enterprise accounts and technology partnerships underscores its long-term vision, even as short-term revenue challenges persist. Investors should monitor progress in closing high-value deals and RPO growth as key indicators of future performance.