Release Date: April 30, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Aware Inc (NASDAQ:AWRE) has introduced a streamlined go-to-market strategy aimed at unlocking new revenue streams and addressable markets.
• The company is in active conversations with several Fortune 500 companies, indicating potential for significant new partnerships.
• Aware Inc (NASDAQ:AWRE) has strengthened its leadership team with experienced executives, including a new Chief Revenue Officer and Chairman of the Board.
• The company is advancing its core technology by consolidating efforts under the Awareness Platform, integrating core biometric capabilities with third-party algorithms.
• There is growing interest from large enterprises and the US federal government in Aware Inc (NASDAQ:AWRE)'s biometric solutions, providing a strong foundation for future growth.

Negative Points

• Total revenue for Q1 2025 decreased to $3.6 million from $4.4 million in the same period last year.
• Recurring revenue also saw a decline, dropping to $2.7 million from $3.1 million in the prior year period.
• Operating loss increased to $1.8 million compared to $1.3 million in the same period last year.
• GAAP net loss widened to $1.6 million or $0.08 per diluted share, up from $1 million or $0.05 per diluted share in Q1 2024.
• The company anticipates expenses to rise in the second half of 2025, potentially impacting profitability.

Q & A Highlights

• Warning! GuruFocus has detected 2 Warning Sign with AWRE.

Q: Will Aware continue to pursue growth in annual recurring revenues via sales of the Aware ID product? If yes, what do you expect to change between the immediate future and the last 3 years where no measurable revenue growth progress has been made? A: Our focus is not on driving growth through any single product. It's on solving large-scale identity challenges for Fortune 500 enterprises and government agencies where biometrics are becoming mission-critical. We're now solution-first, engaging directly with senior decision-makers on enterprise-wide risk mitigation, fraud prevention, and digital identity modernization. We're aligning our technology across the full portfolio to deliver scalable high-impact solutions where customers need them most. - AJ Amlani, CEO

Q: Have you made progress in adding customers or growing sales on the AWS marketplace or any of the other partner programs? A: Our top priority is direct engagement with customers, delivering science-forward, customer-obsessed solutions to solve their most critical identity challenges. Partners like AWS and others can complement our efforts. Still, we are selective. We will only work with partners who share our mindset, add real strategic value, and help us deliver the scalable, high-impact outcomes that our customers demand. - AJ Amlani, CEO

Q: Could you provide more color on the types of industries or use cases Fortune 500 companies are exploring with Aware's biometric solutions? A: We are seeing strong engagement across several industries where secure, seamless identity verification is becoming mission-critical. This includes financial services, trusted networks, e-commerce, healthcare, travel, and hospitality. The common thread is that large enterprises increasingly recognize that passwords and traditional authentication are no longer sufficient. Biometrics provide a faster, more secure, and frictionless experience. - AJ Amlani, CEO

Q: How should we think about the timing and potential revenue contribution from some of the new strategic opportunities you're developing in the second half of 2025 and into 2026? A: While we don't give specific guidance for 2025 on revenue, we're viewing 2025 as a foundational year for Aware with the new leadership. We're focusing on high-impact customers and rebuilding the pipeline aligned with where we can win. We expect some early wins later this year and for more contributions to build over time. - David Traverse, CFO

Q: Can you expand on the Aware platform? How does the open architecture approach differentiate Aware from competitors and create a competitive advantage? A: The Aware platform is a fundamental shift for both Aware and the biometric industry. Rather than force customers into a closed stack, we're offering open modular architecture where they can orchestrate best-in-class algorithms through a unified platform. This flexibility is very attractive to large enterprises and governments who want choice, scalability, and future-proofing. - AJ Amlani, CEO

For the complete transcript of the earnings call, please refer to the full earnings call transcript.