Aware(US:AWRE)2025-10-31 20:00Revenue Performance - Revenue for the three months ended September 30, 2025, was $5.1 million, an increase of 34% from $3.8 million in the same period of 2024[76] - Software license revenue increased 115% from $1.2 million in Q3 2024 to $2.5 million in Q3 2025, representing 49% of total revenue[80] - Software maintenance revenue increased 5% from $2.3 million in Q3 2024 to $2.4 million in Q3 2025, accounting for 46% of total revenue[84] - Services and other revenue decreased 45% from $0.4 million in Q3 2024 to $0.2 million in Q3 2025, representing 5% of total revenue[87] - Software license revenue for the nine months ended September 30, 2025, was $5.3 million, a 2% increase from $5.1 million in the same period of 2024[81] Operating Loss and Expenses - Operating loss for the three months ended September 30, 2025, was $1.3 million, a decrease from an operating loss of $1.5 million in the same period of 2024[76] - Total engineering costs increased 13% from $2.0 million in Q3 2024 to $2.2 million in Q3 2025, decreasing as a percentage of total revenue from 51% to 43%[95] - Selling and marketing expense increased 13% from $1.9 million in Q3 2024 to $2.1 million in Q3 2025, decreasing as a percentage of total revenue from 48% to 41%[99] - General and administrative expense increased 29% from $1.3 million in Q3 2024 to $1.7 million in Q3 2025, remaining stable at 33% of total revenue[104] - For the nine months ended September 30, 2025, total expenses increased by $1 million, primarily due to a $0.1 million signing bonus, a $0.3 million increase in compensation, and $0.4 million in professional services and stock compensation fees[107] Cash and Liquidity - As of September 30, 2025, cash, cash equivalents, and marketable securities totaled $22.5 million, a decrease of $5.3 million from December 31, 2024, primarily due to $6.4 million used in operating activities[113] - Cash used in investing activities was $0.2 million in the first nine months of 2025, mainly for net purchases of marketable securities and fixed assets[114] - Cash used by financing activities was $82 thousand in the first nine months of 2025, primarily for share repurchases[114] - The company believes its cash and cash equivalents will be sufficient to fund operations for at least the next twelve months, but future liquidity needs will depend on growth and operating results[115] Interest and Tax - Interest income decreased to $0.7 million for the nine months ended September 30, 2025, down from $0.9 million in the same period of 2024, attributed to lower average cash balances[108] - Total income tax expense for the nine months ended September 30, 2025, was $38 thousand, a decrease from $54 thousand in 2024, reflecting limitations on net operating loss carryforwards[110] Future Outlook - The company anticipates an increase in engineering expenses to support strategic product development initiatives throughout 2025[97] - Inflation has not materially impacted financial results to date, but future effects remain uncertain[116]