Aware (AWRE) Q2 2025 Earnings Call July 30, 2025 05:00 PM ET Speaker0Good afternoon, and welcome to Aware's Second Quarter twenty twenty five Conference Call. Joining us today are the company's CEO and President, A. J. Maloney CFO, David Traverse and CRO, Brian Krause. Following their remarks, we will open the Before we begin today's call, I'd like to remind everyone that the presentation contains forward looking statements that are based on the current expectations of Aware's management and involve inheren ...

Core Insights - Aware, Inc. (AWRE) experienced a 4.7% decline in share price following its earnings report for the year ended March 31, 2025, contrasting with a 2.3% gain in the S&P 500 Index during the same period [1] - The company reported total revenues of $3.6 million for Q1 2025, an 18.4% decrease from $4.4 million in the same quarter last year, primarily due to a 38.7% drop in software license sales [2] - A net loss of $1.6 million was recorded for Q1 2025, widening from a loss of $0.9 million a year earlier, with net loss per diluted share increasing to $0.08 from $0.05 [3] Revenue and Profitability - Recurring revenues fell 14.7% to $2.7 million from $3.1 million year-over-year, influenced by the timing of license renewals [2] - Operating expenses decreased by 3.9% to $5.5 million, yet the operating loss expanded to $1.9 million from $1.3 million in the prior year [4] - Cash, cash equivalents, and marketable securities totaled $24.8 million at the end of the quarter, down from $27.8 million at the end of 2024 [4] Segment Performance - Software maintenance revenue remained stable at $2.2 million, while software subscriptions dropped 46.1% to $0.5 million [5] - Non-recurring software license revenue decreased by 32.4%, whereas service-related revenue increased by 21.9% [5] Management Strategy - CEO Ajay Amlani described the quarter as transitional, focusing on long-term scalable growth and realigning the go-to-market strategy [6] - The company is engaging with Fortune 500 firms for biometric solutions aimed at identity verification and fraud prevention [6][7] - CFO David Traverse indicated that 2025 is a foundational year, with strategic changes expected to show more impact in 2026 [10] Leadership Changes - Key leadership changes were made, including the appointment of Brian Krause as Chief Revenue Officer and Gary Evee as chairman of the board, reflecting a commitment to a disciplined commercialization strategy [11]