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What factors drove the changes in Aware's revenue and profit?

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Did Aware beat or miss consensus estimates last quarter?

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What were the key takeaways from Aware’s earnings call?

What were the key takeaways from Aware's earnings call?

What guidance did Aware's management provide for the next earnings period?

- **33% YoY Revenue Growth**: Q3 2025 revenue of $5.1M driven by federal and enterprise license expansions.
- **Strategic Focus**: Biometric tech innovation (adaptive liveness), federal partnerships, and enterprise digital identity solutions.
- **Federal Shutdown Impact**: Near-term bookings delayed but FY26 budget intact; expects post-shutdown acceleration.
- **Competitive Edge**: FIDO certification, passive liveness benchmark success, and science-driven platform scalability.
- **Expense Management**: Q3 operating expenses +18% to $6.4M; targeting recurring revenue leverage in 2026.

**【CEO Opening Remarks】**
- Q3 2025 revenue grew 33% YoY to $5.1 million, driven by a $1 million perpetual license expansion and a $600k new term license contract.
- Emphasized 3-pronged strategy: advancing biometric tech (esp. adaptive liveness), science-forward go-to-market, and strategic partnerships.
- Highlighted market shift: biometrics moving from niche to essential for fraud prevention, with enterprises prioritizing proof of presence over passwords.
- Noted federal tailwinds from DHS modernization and Buy American policies, but cautioned on near-term quarterly volatility due to customer timing.

**【CFO Financial Commentary】**
- Q3 GAAP net loss narrowed to $1.1M (-$0.05/share) vs. $1.2M (-$0.06) prior year, with Adjusted EBITDA loss of $0.8M vs. $1.1M.
- Operating expenses rose 18% to $6.4M due to investments in sales, marketing, and R&D, with Q4 expenses expected to remain elevated.
- Year-to-date cash balance of $22.5M provides flexibility for growth while maintaining expense discipline.

**【CRO Go-to-Market Update】**
- Expanded federal work with a major U.S. agency, adding Intelligent Liveness to an existing program.
- Secured new enterprise contracts in financial services and workforce management, leveraging platform interoperability.
- Partner ecosystem expansion focused on system integrators and device providers to scale without over-investing in direct sales.
- Federal shutdown delayed appropriations but did not reduce program scope; expects deals to close post-shutdown.

**【CEO Closing Remarks】**
- Reiterated focus on federal and high-fraud enterprise markets (financial services, travel) for multiyear recurring revenue.
- Highlighted Awareness Platform differentiators: FIDO certification, passive liveness benchmark success, and enterprise-grade delivery.
- Committed to building operating leverage through predictable recurring revenue and disciplined expense management.

**【Q&A Highlights】**
- **Revenue Volatility**: Q3 growth (33% YoY) vs. flat YTD reflects license timing; 2026 growth sustainability hinges on recurring revenue conversion.
- **Federal Impact**: Shutdown delays near-term bookings but preserves FY26 budget; expects accelerated deal flow post-resumption.
- **Competition**: Differentiates via platform economies of scale vs. internal development, and superior adaptive liveness tech.
- **Certifications**: Prioritizes FIDO, ISO, and FedRAMP to meet enterprise security standards and reduce adoption friction.
- **Expenses**: Will maintain investment in go-to-market while optimizing for operating leverage as revenue scales.

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