Aware, Inc. (AWRE) Q3 2025 Earnings Call Transcript
Revenue Revenue in the third quarter was $5.1 million, an increase of 33% year-over-year. The increase was primarily driven by a $1 million perpetual license expansion sale with an existing customer and a $600,000 new term license contract, partially offset by typical fluctuations in perpetual license and lower services and other revenue.
Operating Expenses Operating expenses for the quarter were $6.4 million compared to $5.4 million in the prior year quarter. The increase reflects targeted investments in sales, marketing and product development as we execute our go-to-market strategy.
Net Loss Net loss for the quarter was $1.1 million or $0.05 per diluted share, an improvement compared to a net loss of $1.2 million or $0.06 per diluted share in the prior year quarter.
Adjusted EBITDA Loss Adjusted EBITDA loss was $800,000, an improvement compared to a loss of $1.1 million in the prior year quarter.
Year-to-Date Revenue Revenue for the first 9 months of 2025 was $12.6 million, similar to last year.
Year-to-Date Net Loss Net loss for the first 9 months of 2025 was $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 period last year.
Year-to-Date Adjusted EBITDA Loss Adjusted EBITDA loss year-to-date was $3.8 million compared to an adjusted EBITDA loss of $3 million in the prior year period.
Cash and Marketable Securities Ended the quarter with $22.5 million in cash, cash equivalents and marketable securities and no debt. The change primarily reflects the operating loss for the period as well as normal fluctuations in working capital, including the timing of accounts receivable collections.
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Zacks Analyst Insights: Morgan Stanley, Union Pacific, The Southern, and Aware
Zacks Analyst Blog Highlights: The Zacks Equity Research team featured stocks such as Morgan Stanley, Union Pacific Corp., The Southern Co., and Aware, Inc., providing insights into their performance and market conditions.
Morgan Stanley Performance: Morgan Stanley's shares have outperformed its industry, driven by its focus on wealth management and strategic acquisitions, although rising costs may impact future profitability.
Union Pacific Challenges: Union Pacific has underperformed its industry due to softening consumer markets and high inflation, prompting the company to cut costs while maintaining dividends amidst revenue pressures.
Southern Company and Aware, Inc. Updates: Southern Company shows stable growth potential despite high leverage risks, while Aware, Inc. is experiencing growth in its SaaS model but faces execution risks and volatile revenue streams.
Aware Stock Declines After Q3 Earnings Release Despite Robust Revenue Increase
Stock Performance: Aware, Inc. (AWRE) shares have declined 7.4% since their earnings report for the year ending September 30, 2025, underperforming the S&P 500 Index, which saw a slight decline of 0.3% during the same period.
Revenue Growth: The company reported a 33.3% year-over-year increase in third-quarter revenues to $5.1 million, driven by expanded license sales and new contracts, although net losses improved slightly to $1.1 million.
Recurring Revenue Increase: Recurring revenue rose to $3.6 million, accounting for 69.3% of total revenue, with significant growth in software subscriptions, while non-recurring revenue also saw a notable increase.
Strategic Focus and Future Outlook: Aware's management emphasized a commitment to expanding recurring revenue and pursuing large opportunities, despite potential variability in near-term results due to government contract timing and licensing activities.
