UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2025 (State or Other Jurisdiction of (I.R.S. Employer Identification No.) 76 Blanchard Road, Burlington, Massachusetts, 01803 (Address of Principal Executive Offices) OR ☐ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ___ ...

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Financial Data and Key Metrics Changes - Revenue in Q3 2025 reached $5.1 million, reflecting a 33% year-over-year growth, primarily driven by a $1 million perpetual license expansion sale and a $600,000 new term license contract [10][11] - Operating expenses increased to $6.4 million from $5.4 million in the prior year, attributed to investments in sales, marketing, and product development [10][11] - Net loss for the quarter improved to $1.1 million or $0.05 per diluted share, compared to a net loss of $1.2 million or $0.06 per diluted share in the prior year [11] - Adjusted EBITDA loss was $800,000, an improvement from a loss of $1.1 million in the prior year [11] - Cash, cash equivalents, and marketable securities at the end of the quarter totaled $22.5 million, with no debt [11][12] Business Line Data and Key Metrics Changes - The company is focused on two core markets: government and commercial enterprises, with growing demand for biometric solutions in both sectors [12][14] - In the government sector, there is an emphasis on modernization initiatives and compliance with Buy American requirements, particularly within the Department of Homeland Security [9][14] - On the commercial side, enterprises are increasingly adopting biometric solutions for workforce and customer use cases, emphasizing privacy and interoperability [9][15] Market Data and Key Metrics Changes - The shift in customer perceptions around biometrics has been significant, with everyday use of biometric technologies making them familiar and expected [4][5] - The federal government is experiencing tailwinds from funding for biometric modernization, although the federal shutdown has caused delays in appropriations [6][14] - The commercial sector is seeing a trend towards biometric-anchored digital identity solutions, particularly in fraud-prone verticals like financial services and travel [15][16] Company Strategy and Development Direction - The company is executing a three-pronged transformation strategy focused on advancing core biometric technology, strengthening the go-to-market model, and deepening strategic relationships [4][5] - Aware aims to deliver adaptive liveness detection and interoperability, positioning itself as a trusted provider in the biometric space [5][17] - The strategy includes prioritizing large, durable opportunities in federal and enterprise markets to drive multi-year recurring revenue [17][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the impact of the federal budget delays on near-term bookings but expects significant deal flow once the shutdown is resolved [23][24] - The company is focused on building a sustainable revenue model and improving pipeline conversion patterns to achieve more consistent growth [21][22] - Aware is committed to investing in certifications and partnerships that enhance its competitive position and reduce adoption friction for customers [30][32] Other Important Information - The company has upgraded leadership across revenue, marketing, and product to align the organization for disciplined scaling [8] - Aware's platform has achieved significant certifications, including FIDO Alliance certification, which enhances its credibility and reduces compliance friction [8][30] Q&A Session Summary Question: Q3 revenue grew 33% year-over-year but was flat year to date. Can you elaborate on the drivers of that variance? - The variance is due to the timing of customer decisions and license mix, with a focus on building a more sustainable revenue model [21] Question: Can you give more color to the pipeline conversion patterns? - There is healthy engagement and visibility into opportunities, but customer decision timing can still affect quarterly results [22] Question: How significant has the federal budget delays been to near-term bookings? - The government shutdown has impacted near-term bookings, but there is still ongoing conversation and expected urgency to deploy budgets once resolved [23][24] Question: Who do you view as your primary competitors in the biometric space? - The primary competition includes internal development within large enterprises, with Aware focusing on providing scalable solutions [25][26] Question: How do you prioritize new certifications like ISO or FedRAMP? - Certifications are crucial for customer trust and are prioritized to ensure compliance with modern cybersecurity threats [30][32] Question: How should we think about expense levels and operating leverage in FY2026? - Operating expenses will continue to rise as investments are made in growth, with a focus on efficiency and driving top-line revenue [34]

Company Contact Delaney Gembis Aware, Inc. 781-687-0300 marketing@aware.com Investor Contact Matt Glover Gateway Group, Inc. 949-574-3860 AWRE@gateway-grp.com Aware Reports Third Quarter and Nine-Month 2025 Financial Results BURLINGTON, MASS. – October 29, 2025 – Aware, Inc. (NASDAQ: AWRE), a global leader in biometric identity and authentication solutions, today reported financial results for the third quarter and nine months ended September 30, 2025. Third Quarter 2025 Financial and Recent Operational Hig ...

Core Insights - Aware, Inc. reported a 33% year-over-year revenue growth in Q3 2025, reaching $5.1 million, driven by new customer activity and expansion within existing accounts [3][5][9] - The company is focused on a three-pronged transformation strategy that includes advancing biometric technology, enhancing customer engagement, and building strategic partnerships [3][4] - Aware achieved FIDO Alliance Certification for Face Verification, reinforcing its position in biometric security solutions [9] Financial Performance - Revenue for Q3 2025 increased to $5.1 million from $3.8 million in Q3 2024, reflecting a 33% growth [5][9] - Operating expenses rose to $6.4 million in Q3 2025 from $5.3 million in the same quarter of 2024, attributed to investments in sales, marketing, and product development [6] - The net loss improved to $1.1 million, or $(0.05) per diluted share, compared to a net loss of $1.2 million, or $(0.06) per diluted share, in Q3 2024 [6][9] Operational Highlights - Adjusted EBITDA loss for Q3 2025 was $0.8 million, an improvement from $1.1 million in Q3 2024, primarily due to increased revenue [7][9] - Cash, cash equivalents, and marketable securities totaled $22.5 million as of September 30, 2025, down from $27.8 million at the end of 2024, mainly due to operating losses [8] - The company launched Intelligent Liveness, a next-generation biometric liveness-detection capability, which significantly reduces false-negative rates [9] Nine-Month Financial Results - For the nine months ended September 30, 2025, revenue was $12.6 million, compared to $12.6 million in the same period of 2024 [10] - Operating expenses for the nine months increased to $17.7 million from $16.7 million year-over-year [10] - The net loss for the nine months was $4.4 million, or $(0.21) per diluted share, compared to a net loss of $3.2 million, or $(0.15) per diluted share, in the prior year [10]

BURLINGTON, Mass., Oct. 15, 2025 (GLOBE NEWSWIRE) -- Aware, Inc. (NASDAQ: AWRE), global leader in biometric identity and authentication solutions, will hold a webcast on Wednesday, October 29, 2025, at 5:00 p.m. Eastern time to discuss its financial results for the third quarter ended September 30, 2025. Financial results will be issued in a press release before the call. Aware management will host the webcast presentation, followed by a question-and-answer session. Date: Wednesday, October 29, 2025Time: 5: ...

BURLINGTON, Mass., Oct. 14, 2025 (GLOBE NEWSWIRE) -- Aware, Inc. (NASDAQ: AWRE), global leader in biometric identity and authentication solutions, today announced that its identity verification technology, including its advanced liveness detection and facial matching capabilities, has earned FIDO Alliance Certification for Face Verification, marking a significant milestone in the company’s commitment to accurate, secure, and equitable biometric solutions. This certification follows a decade of dedicated col ...

Core Insights - Franklin Templeton has expanded its Canvas platform to include tax-aware long-short capabilities, enhancing its investment offerings and providing clients with more strategic options [1] Company Developments - The expansion of the Canvas platform signifies Franklin Templeton's commitment to innovation in investment strategies, particularly in the realm of tax efficiency [1] - The new tax-aware long-short capabilities are designed to help investors manage tax implications while pursuing long and short investment opportunities [1] Industry Trends - The move reflects a broader trend in the investment management industry towards integrating tax considerations into investment strategies, as firms seek to provide more comprehensive solutions to clients [1]

Core Insights - Aware, Inc. has launched Intelligent Liveness, a new liveness detection capability that combines the speed of passive detection with the accuracy of active verification, enhancing user experience while maintaining security [1][3][5] Company Overview - Aware, Inc. is a global leader in biometric identity and authentication solutions, providing a platform that transforms biometric data into actionable intelligence for organizations to verify identities and prevent fraud [6] Product Features - Intelligent Liveness reduces the error rate and false negatives by 50%, and improves capture speed from 3-4 seconds to under one second, ensuring a frictionless user experience [3][4] - The solution utilizes machine learning-trained models, allowing R&D timelines to be compressed from 9-12 months to as little as three weeks, enabling quick adaptation to new spoofing techniques [4][5] Strategic Importance - The launch of Intelligent Liveness reflects the industry's shift towards low-friction, high-confidence verification, balancing trust, usability, speed, and security [2][5] - This product addresses critical needs across various sectors, including finance, healthcare, government, and travel, by preserving secure user experiences [4][8]

Core Insights - Aware, Inc. (AWRE) has experienced a 6.9% decline in share price since its earnings report for the year ended June 30, 2025, compared to a 2.1% decline in the S&P 500 Index, although the stock rallied 18.3% over the past month, outperforming the S&P 500's 0.4% gain [1] Financial Performance - For Q2 2025, Aware reported total revenues of $3.9 million, a 9.9% decrease from $4.3 million in Q2 2024, primarily due to the timing of perpetual license sales [2] - Revenues for the first half of 2025 were $7.5 million, down 14.2% from $8.7 million a year earlier [2] - The net loss widened to $1.8 million, or $(0.08) per diluted share, in Q2 2025, compared to a loss of $1.1 million, or $(0.05) per share, a year ago [3] - For the six-month period, the net loss increased to $3.4 million or $(0.16) per share from $2.1 million or $(0.10) per share last year [3] - Adjusted EBITDA loss expanded to $1.4 million in Q2 2025 from $0.9 million in the prior-year quarter [3] Segment Performance - Recurring revenue grew 1.5% to $2.7 million in Q2 2025, thanks to stronger software maintenance revenue [4] - Non-recurring revenue declined sharply by 28.9%, falling to $1.1 million from $1.6 million, with software license revenue dropping 31% from $1.3 million to $0.9 million [4] Business Metrics - Operating expenses in Q2 2025 rose 3.4% to $5.9 million from $5.7 million in the prior-year quarter, mainly due to investments in headcount and executive leadership [5] - Aware reported a cash position of $23.7 million as of June 30, 2025, down from $27.8 million at the end of 2024 [5] - Gross margin remained solid, with cost of revenue increasing 25.6% to $339,000 from $270,000 [6] Management Commentary - CEO Ajay Amlani emphasized a strategic roadmap focused on advancing the Awareness platform, refining go-to-market execution, and deepening partnerships [7] - The company received recognition from the Department of Homeland Security's RIVTD test and the Prism Project's identity technology report [7] - Management acknowledged the current revenue decline as part of a transformation strategy aimed at long-term growth [8] Revenue Influences - The revenue dip was largely due to the absence of large perpetual license deals, which are subject to variability based on customer purchasing cycles [9] - Some adjustments in recurring revenues occurred as clients modified their prepayment commitments based on historical usage trends [9] Future Outlook - Aware did not provide specific revenue guidance for the remainder of 2025 but expects progress in customer onboarding and potential revenue realization in the second half of the year [11] - For 2026, Aware aims to leverage growth opportunities in federal government programs, law enforcement upgrades, and commercial sector demand for biometric security solutions [12] - The company clarified that its current focus is on internal execution and technological innovation rather than mergers or acquisitions [13]