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- **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.

Aware, Inc. (AWRE) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

AWRE

AWRE fundamentals

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