Aware(US:AWRE)2025-10-29 20:14Financial Performance - Revenue for Q3 2025 increased 33% year-over-year to $5.1 million, driven by $1.0 million in perpetual license expansion and $0.6 million in new term license contracts [4]. - 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]. - Adjusted EBITDA loss improved to $0.8 million from $1.1 million in Q3 2024, primarily due to increased total revenue [7]. - For the nine months ended September 30, 2025, revenue was $12.6 million, compared to $12.6 million for the same period in 2024 [9]. - Net loss for the nine months totaled $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 same year-ago period [9]. - For the three months ended September 30, 2025, total revenue was $5,129,000, an increase of 33.3% compared to $3,849,000 for the same period in 2024 [26]. - Recurring revenue for the three months ended September 30, 2025, was $3,555,000, up 26.2% from $2,818,000 in the prior year [26]. - Total revenue for the nine months ended September 30, 2025, was $12,631,000, slightly up from $12,592,000 in the same period of 2024 [26]. Operating Expenses - Operating expenses rose to $6.4 million from $5.3 million in Q3 2024, reflecting targeted growth investments in sales, marketing, and product development [6]. - Stock-based compensation for the three months ended September 30, 2025, was $342,000, up from $220,000 in the same period of 2024, representing a 55.5% increase [24]. Cash and Securities - Cash, cash equivalents, and marketable securities totaled $22.5 million as of September 30, 2025, down from $27.8 million as of December 31, 2024 [8]. Product Development and Innovation - Aware achieved FIDO Alliance Certification for Face Verification in October, enhancing its position in secure, passwordless authentication [4]. - Launched Intelligent Liveness, a next-generation biometric liveness-detection capability that reduces false-negative rates by approximately 50% [4]. - Expanded engagement with a major U.S. federal agency by integrating Intelligent Liveness into a critical biometric program [4]. Revenue Breakdown - Software subscriptions revenue increased to $1,182,000 for the three months ended September 30, 2025, compared to $561,000 in 2024, representing a growth of 110.5% [26]. - Total non-recurring revenue for the three months ended September 30, 2025, was $1,574,000, a rise of 52.7% from $1,031,000 in the same quarter of 2024 [26]. - Software maintenance revenue for the three months ended September 30, 2025, was $2,373,000, an increase from $2,257,000 in 2024, reflecting a growth of 5.1% [26]. Interest Income - Interest income for the three months ended September 30, 2025, was $(247,000), an improvement from $(315,000) in the same quarter of 2024 [24].