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Shares of Aware, Inc. AWRE have lost 4.7% since the company reported its earnings for the year ended March 31, 2025. This compares to the S&P 500 Index’s 2.3% gain over the same time frame. Over the past month, the stock gained 14.1% compared with the S&P 500’s 12.3% rise.
Revenue and Profitability Slide Year Over Year
Aware reported total revenues of $3.6 million for the first quarter of 2025, down 18.4% from $4.4 million in the prior-year quarter. This decline was primarily due to a drop in software license sales, which fell 38.7% to $1.3 million from $2.1 million in the prior-year quarter. Recurring revenues, comprising subscriptions and maintenance, also decreased 14.7% to $2.7 million from $3.1 million a year ago, largely driven by the timing of license renewals.
AWRE posted a net loss of $1.6 million for the first quarter of 2025 compared with $0.9 million in the year-ago period. Net loss per diluted share widened to $0.08 from $0.05 a year earlier. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Adjusted EBITDA loss widened to $1.5 million from $0.9 million a year earlier, reflecting the revenue decline despite slightly lower operating expenses.
Aware, Inc. Price, Consensus and EPS Surprise
Aware, Inc. price-consensus-eps-surprise-chart | Aware, Inc. Quote
Other Key Business Metrics
Operating expenses were $5.5 million, down 3.9% from $5.7 million in the year-ago period, indicating progress in cost management. However, the operating loss widened to $1.9 million from $1.3 million in the year-ago period. Cash, cash equivalents, and marketable securities totaled $24.8 million at quarter-end, a decrease from $27.8 million at the end of 2024.
Segment-wise, software maintenance revenue remained nearly flat year over year at $2.2 million, indicating stability in the installed base. However, software subscriptions dipped 46.1% to $0.5 million from $0.9 million in the prior-year quarter, further highlighting challenges in growing recurring revenue streams. Non-recurring software license revenue and service-related revenue declined 32.4% and increased 21.9%, respectively.
Management Commentary
CEO Ajay Amlani characterized the quarter as a transitional period aimed at laying the foundation for long-term scalable growth. Aware has realigned its go-to-market strategy, strengthened its executive team with the addition of Brian Krause as chief revenue officer, and revitalized its brand and sales processes. Amlani emphasized a science-forward and customer-centric platform strategy, noting that the company is in active discussions with several Fortune 500 firms exploring biometric solutions for identity verification, fraud prevention, and digital modernization.