[Management View]
Aware management emphasized the strategic priority of building recurring and predictable revenue streams. They highlighted the company's focus on advancing core biometric technology, strengthening their go-to-market model, and deepening strategic relationships and certifications.

[Outlook]
Management expects an increase in operating expenses in Q4 2025 due to recent growth investments. They anticipate significant deal flow once the federal shutdown is resolved and are focused on expanding in both federal and commercial sectors.

[Financial Performance]
- Revenue: $5.1 million in Q3 2025, up 33% YoY.
- Operating Expenses: $6.4 million, up from $5.4 million YoY.
- Net Loss: $1.1 million, or $0.05 per diluted share.
- Adjusted EBITDA Loss: $800,000, improved from $1.1 million YoY.
- Cash, Cash Equivalents, and Marketable Securities: $22.5 million with no debt.

[Q&A Highlights]
Question 1: Q3 revenue grew 33% year-over-year but was flat year-to-date. Can you elaborate on the drivers of that variance and how investors should think about the sustainability of that top-line growth into 2026?
Answer: The strong year-over-year growth in Q3 shows demand is there, but the flat year-to-date trend reflects timing dynamics. Management is focusing on driving more recurring and predictable revenue for smoother results and consistent growth over time.

Question 2: You mentioned that quarterly results may fluctuate based on the timing of customer decisions and license mix. Can you give more color to the pipeline conversion patterns and how much visibility you have in the near-term deals and recurring revenue contribution?
Answer: Management is improving the go-to-market engine and pipeline management. They see healthy engagement and good visibility into opportunities, though customer decision timing can affect quarterly results. They expect more consistency and better conversion over time.

Question 3: How significant has the federal budget delays and shutdown impacts been to near-term bookings, and are those revenues expected to shift into FY 2026?
Answer: The shutdown has impacted near-term bookings, but most conversations are still occurring. Management expects significant deal flow once the shutdown is over, with the total budget remaining the same and urgency to deploy capital high.

Question 4: As enterprises move toward biometric-anchored digital identity, who do you view as your primary competitors in this space? What differentiates Aware's awareness platform technically and commercially?
Answer: The primary competition is internal development within enterprises. Aware's platform offers economies of scale, faster capability increases, and partnerships with the best vendors for specific use cases, ensuring secure and pleasurable customer experiences.

Question 5: How do you prioritize new certifications like ISO or FedRAMP in your roadmap? Are there any gating factors for certain federal or enterprise contracts?
Answer: Certifications like ISO, FedRAMP, and FIDO are crucial for customer requirements and protecting against modern threats. Aware advocates for better standards and invests in certifications to ensure they remain a premium provider of biometric systems.

Question 6: Operating expenses rose due to investments in sales, marketing, and products. How should we think about expense levels and operating leverage in FY 2026 as revenue scales?
Answer: Management will continue to invest in growth opportunities while maintaining a disciplined focus on efficiency. They will lean in and invest when there is a clear line to driving top-line revenue expansion.

Question 7: Can you share any color on the national ID contract?
Answer: Management is not in a position to share details on the national ID contract but emphasizes the importance of global partnerships to address national ID programs while focusing resources on direct conversations in The Americas.

Question 8: Has Aware considered enabling interactions with smaller platforms?
Answer: Aware prioritizes partners with the most opportunity for scale based on management team, customer contacts, and product capabilities. They focus on aligning resources effectively to better serve partners and enable growth.

[Sentiment Analysis]
Analysts and management maintained a cautiously optimistic tone. Management emphasized strategic priorities and growth opportunities while acknowledging near-term challenges due to the federal shutdown.

[Quarterly Comparison]
| Metric | Q3 2025 | Q3 2024 |
|----------------------------|-----------------|-----------------|
| Revenue | $5.1 million | $3.8 million |
| Operating Expenses | $6.4 million | $5.4 million |
| Net Loss | $1.1 million | $1.2 million |
| Adjusted EBITDA Loss | $800,000 | $1.1 million |
| Cash, Equivalents, Securities | $22.5 million | $23.6 million |

[Risks and Concerns]
- Federal shutdown impacting near-term government bookings.
- Variability in quarterly results due to timing of customer decisions and license mix.
- Increased operating expenses due to growth investments.

[Final Takeaway]
Aware is focused on building recurring and predictable revenue streams while navigating near-term challenges such as the federal shutdown. The company is investing in growth opportunities in both federal and commercial sectors, with a strong emphasis on certifications and strategic partnerships. Management remains optimistic about the future, expecting significant deal flow once the shutdown is resolved and continued progress in their transformation strategy.