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1. Company Snapshot

1.a. Company Description

Aware, Inc.provides biometrics software products and solutions in the United States, Brazil, the United Kingdom, and internationally.It offers biometrics software products, including biometric search and matching software development kits (SDKs); biometric enrollment SDKs and application programming interfaces (APIs); and imaging products for medical and advanced imaging applications, such as JPEG2000 product to compress, store, and display images, as well as software maintenance services.


The company also provides Knomi mobile biometric authentication framework; AwareABIS, an automated biometric identification system; AFIX suite of products for small-scale law enforcement focused biometric identification; BioSP, a biometric services platform; WebEnroll, a browser-based biometric enrollment and data management solution; AwareID, a software-as-a-service that provides biometric face and voice analysis for liveness-verification, and document validation; and Fortress Identity Biometric Authenticator and Onboarding Authentication Platform, which offers multi-factor authentication through passive and active biometrics for multiple modalities, including voice, fingerprint, face, and behavior to enable online onboarding and identity proofing.In addition, it offers program management and software engineering services, including project planning and management; system and architecture design; software design, development, customization, configuration, and testing; and software integration and installation.The company's software portfolio enables government agencies and commercial entities to enroll, identify, authenticate, and enable using biometrics, such as fingerprints, faces, irises, and voices.


The company sells its products through systems integrators, original equipment manufacturers, value added resellers, and partners, as well as directly to end user customers.Aware, Inc.was incorporated in 1986 and is headquartered in Bedford, Massachusetts.

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1.b. Last Insights on AWRE

Aware, Inc.'s recent performance was driven by the appointment of Ajay Amlani as the new Chief Executive Officer, who brings extensive experience in security and biometrics. This change in leadership is expected to lead the company's next phase of growth and innovation. Additionally, the company reported strong Q4 2024 financial results, with revenue and earnings beating expectations. The growth in the biometric authentication market, particularly in voice recognition technology, also contributed to the company's positive performance.

1.c. Company Highlights

2. Aware's Fiscal 2025: A Foundation for Growth

Aware's Q4 revenue was $4.7 million, a slight decrease from $4.8 million in the prior year period, primarily due to lower perpetual software license revenue, partially offset by higher maintenance and services revenue. For the full year, revenue was $17.3 million, a slight decrease from $17.4 million in 2024. The net loss was $1.5 million or $0.07 per diluted share in Q4, and $5.9 million or $0.28 per diluted share for the full year. Adjusted EBITDA loss was $800,000 in Q4 and $4.6 million for the full year. Actual EPS came out at -$0.07 relative to estimates at -$0.02.

Publication Date: Mar -08

📋 Highlights
  • Strategic Certifications:: Achieved NIST IR 8491 best-in-class parity and ISO-30107 Level 3 certification, enhancing market credibility and procurement eligibility.
  • Fiscal 2025 Revenue Trends:: Annual revenue slightly declined to $17.3M (vs. $17.4M in 2024), driven by lower perpetual license revenue offset by maintenance/services growth.
  • Financial Position:: Closed the year with $22.3M in cash, cash equivalents, and marketable securities, maintaining a debt-free balance sheet.
  • Operational Efficiency:: Q4 operating expenses reduced to $6.1M, with net loss of $1.5M ($0.07 per share) and adjusted EBITDA loss of $800K.
  • 2026 Growth Focus:: Prioritizing pipeline conversion, recurring deployments, and scaling government-enterprise programs post-pilot, leveraging LLMs for cost/productivity gains.

Financial Position

The company ended the year with $22.3 million in cash, cash equivalents, and marketable securities and no debt, providing a solid financial foundation. With a Net Debt / EBITDA ratio of 0.55, Aware's debt position is manageable.

Operational Highlights

Aware made significant progress in 2025, advancing its core biometric technology, strengthening its customer-obsessed approach, and deepening strategic partnerships. The company achieved best-in-class gender and race parity in the NIST IR 8491 evaluation and earned the lowest ratio bias rating in the market. As Aware's CEO mentioned, "these certifications are typically listed within procurement requirements from major customers and serve as a strategic differentiator."

Outlook and Expectations

Aware expects quarterly results to remain uneven due to procurement cycles and customer conversion timing, particularly in government and large enterprise markets. The company is focused on converting pilot programs, strengthening its awareness platform, scaling revenue, and delivering durable long-term growth. For 2026, investors should look for improving execution, stronger conversion of pipeline into program wins, and progression from pilots to production deployments.

Valuation

With a P/S Ratio of 1.99 and an EV/EBITDA ratio of -5.2, the market is pricing in a certain level of growth. However, the current ROE of -21.18% and ROIC of -19.58% indicate that the company's profitability is a concern. As Aware builds a more predictable and scalable biometric identity business, investors will be watching for improvements in these metrics.

3. NewsRoom

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Aware Sets First Quarter 2026 Webcast for Wednesday, April 29, 2026, at 5:00 p.m. Eastern Time

Apr -15

Source: globenewswire.com

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Aware Finds 98% of Organizations Signal Urgent Need for Biometric Orchestration as AI-Driven Fraud Surges

Apr -14

Source: globenewswire.com

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Aware Delivers High-Security Liveness with a Frictionless User Experience in DHS Evaluation

Mar -31

Source: globenewswire.com

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Aware (NASDAQ:AWRE) Stock Passes Below 200 Day Moving Average – Time to Sell?

Mar -25

Source: defenseworld.net

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Forefront Analytics Expands iShares ESG Aware MSCI EM ETF Stake to $16 Million

Mar -23

Source: fool.com

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Roundhill Launches Tax-Aware Short Duration ETF (XBOX)

Mar -18

Source: prnewswire.com

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Druva Pioneers Identity-Aware Resilience for Okta, Active Directory, and Entra ID

Mar -17

Source: businesswire.com

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Aware Stock Declines Post Q4 Earnings as Revenue Dips Year Over Year

Mar -09

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (14.89%)

6. Segments

License and Service

Expected Growth: 14%

Aware, Inc.'s 14% growth in License and Service is driven by increasing demand for biometric software solutions, expansion into new markets, and strategic partnerships. Additionally, the company's focus on innovation, particularly in AI-powered identity verification, has contributed to its growth. Furthermore, the rising need for secure and efficient identity management solutions across various industries has also fueled the segment's growth.

Subscription-based

Expected Growth: 18%

Aware, Inc.'s 18% subscription-based growth is driven by increasing demand for biometric software solutions, expansion into new markets, and strategic partnerships. The company's focus on innovation, customer retention, and upselling/cross-selling also contribute to its growth. Additionally, the shift towards cloud-based services and the need for secure identity verification solutions further fuel the segment's expansion.

7. Detailed Products

AwareABIS

AwareABIS is a biometric identification system that provides fingerprint, facial, and iris recognition capabilities for law enforcement, border control, and national identity management.

Aware Nexus

Aware Nexus is a cloud-based platform that provides identity management, authentication, and authorization for government and commercial organizations.

Aware Biometric Services Platform (BSP)

Aware BSP is a software development kit (SDK) that provides biometric functionality for fingerprint, facial, and iris recognition.

Aware Identity

Aware Identity is a software platform that provides identity proofing, authentication, and authorization for government and commercial organizations.

Aware Insight

Aware Insight is a data analytics platform that provides insights and visualization for biometric and identity data.

8. Aware, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Aware, Inc. faces moderate threat from substitutes due to the availability of alternative biometric solutions.

Bargaining Power Of Customers

Aware, Inc. has a diverse customer base, which reduces the bargaining power of individual customers.

Bargaining Power Of Suppliers

Aware, Inc. relies on a few key suppliers for its biometric software and hardware, giving them moderate bargaining power.

Threat Of New Entrants

The biometric technology industry is rapidly evolving, and new entrants with innovative solutions can easily disrupt the market.

Intensity Of Rivalry

The biometric technology industry is highly competitive, with many established players and new entrants vying for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 11.54%
Debt Cost 3.95%
Equity Weight 88.46%
Equity Cost 7.77%
WACC 7.33%
Leverage 13.05%

11. Quality Control: Aware, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Domo

A-Score: 4.7/10

Value: 7.7

Growth: 4.9

Quality: 5.6

Yield: 0.0

Momentum: 8.0

Volatility: 2.0

1-Year Total Return ->

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Aware

A-Score: 4.7/10

Value: 7.9

Growth: 3.6

Quality: 5.3

Yield: 0.0

Momentum: 9.0

Volatility: 2.3

1-Year Total Return ->

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Where Food Comes From

A-Score: 4.4/10

Value: 3.2

Growth: 6.4

Quality: 7.3

Yield: 0.0

Momentum: 5.0

Volatility: 4.7

1-Year Total Return ->

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MoneyLion

A-Score: 4.2/10

Value: 3.6

Growth: 6.1

Quality: 5.8

Yield: 0.0

Momentum: 6.0

Volatility: 3.7

1-Year Total Return ->

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SurgePays

A-Score: 3.9/10

Value: 9.6

Growth: 2.9

Quality: 3.5

Yield: 0.0

Momentum: 6.0

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
PubMatic

A-Score: 3.5/10

Value: 6.5

Growth: 6.6

Quality: 5.0

Yield: 0.0

Momentum: 1.5

Volatility: 1.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.24$

Current Price

1.24$

Potential

-0.00%

Expected Cash-Flows