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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 Q3 2025 Earnings: A Story of Disciplined Execution

Aware's third-quarter 2025 financial performance was marked by a 33% year-over-year revenue growth, driven by a $1 million perpetual license expansion sale and a $600,000 new term license contract. The company reported a net loss of $1.1 million or $0.05 per diluted share in the quarter, with actual EPS coming in at '-0.07' relative to estimates at '-0.02'. Despite the loss, the company's financial performance reflects progress towards sustainable growth, with $22.5 million in cash, cash equivalents, and marketable securities and no debt.

Publication Date: Nov -21

📋 Highlights
  • 33% Revenue Growth:: Year-over-year revenue growth driven by a $1 million perpetual license expansion and a $600,000 new term license contract.
  • Net Loss:: Reported a net loss of $1.1 million ($0.05 per diluted share) in Q3 2025.
  • Strong Cash Position:: Maintains $22.5 million in cash, cash equivalents, and marketable securities with no debt.
  • Technology Certifications:: Passive Liveness achieved best-in-class DHS benchmarks, and face verification stack earned FIDO Alliance Certification.
  • Government & Enterprise Expansion:: Expanded federal work with a major U.S. agency and secured contracts in financial services and workforce management sectors.

Operational Highlights

Aware's strategy focuses on advancing core biometric technology, strengthening its science-forward customer-obsessed go-to-market model, and deepening strategic relationships and partnerships. The company achieved significant milestones, including Passive Liveness achieving best-in-class performance in the Department of Homeland Security remote identity validation benchmark. As the CEO Ajay Amlani mentioned, the company is seeing diverse demand for biometric solutions across both government and enterprise sectors, with the direct federal team engaged across multiple U.S. and international government programs.

Customer and Go-to-Market Strategy

Aware is expanding its work with a major U.S. federal agency by adding its Intelligent Liveness to a previously successful program and securing new enterprise contracts in financial services and workforce management sectors. The company's partner strategy is helping it scale without over-investing in a direct sales force. Aware is also seeing strong customer retention and growth opportunities, with a clear focus on deepening direct engagement across all agencies in the U.S. federal government and expanding in fraud-prone verticals.

Valuation and Outlook

With a P/S Ratio of 2.59, the market is pricing in significant growth expectations for Aware. The company's EV/EBITDA ratio stands at -7.73, indicating that the market is factoring in significant losses in the short term. As Aware continues to invest in sales, marketing, and products, operating expenses are expected to rise. However, the company's disciplined approach to expenses and focus on sustainable growth may lead to increasing operating leverage and stronger recurring revenue contributions in the long term.

Certifications and Partnerships

Aware prioritizes biometric technology to secure enterprises against password compromises, the largest vulnerability in cybersecurity attacks. Certifications like ISO, FedRAMP, and FIDO are crucial for customers to require in RFP processes, and the company's face verification stack earning FIDO Alliance Certification is a significant achievement. The company is also exploring partners to address global needs, with a focus on direct conversations in the Americas.

3. NewsRoom

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Income Investors Be Aware: FSK's 2026 Dividend Policy Sets The Tone

Nov -18

Source: seekingalpha.com

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The Zacks Analyst Blog Morgan Stanley, Union Pacific, The Southern and Aware

Nov -07

Source: zacks.com

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Aware Stock Down Post Q3 Earnings Despite Strong Revenue Growth

Nov -04

Source: zacks.com

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World Investment Advisors Raises Holdings in iShares ESG Aware MSCI EAFE ETF $ESGD

Nov -04

Source: defenseworld.net

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iShares ESG Aware 1-5 Year USD Corporate Bond ETF (NASDAQ:SUSB) Sees Significant Increase in Short Interest

Nov -04

Source: defenseworld.net

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Hartford Schroders Tax-Aware Bond ETF (NYSEARCA:HTAB) Short Interest Up 178.2% in October

Nov -01

Source: defenseworld.net

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Aware, Inc. (AWRE) Q3 2025 Earnings Call Transcript

Oct -29

Source: seekingalpha.com

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Aware Reports Third Quarter and Nine-Month 2025 Financial Results

Oct -29

Source: globenewswire.com

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: 5.1/10

Value: 9.2

Growth: 4.9

Quality: 5.1

Yield: 0.0

Momentum: 9.5

Volatility: 2.0

1-Year Total Return ->

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MoneyLion

A-Score: 4.8/10

Value: 4.0

Growth: 6.2

Quality: 6.3

Yield: 0.0

Momentum: 9.0

Volatility: 3.3

1-Year Total Return ->

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Where Food Comes From

A-Score: 4.7/10

Value: 2.4

Growth: 6.4

Quality: 7.2

Yield: 0.0

Momentum: 8.0

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Aware

A-Score: 4.4/10

Value: 7.8

Growth: 3.6

Quality: 4.7

Yield: 0.0

Momentum: 8.0

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
SurgePays

A-Score: 3.7/10

Value: 7.2

Growth: 2.9

Quality: 2.4

Yield: 0.0

Momentum: 8.5

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
PubMatic

A-Score: 3.5/10

Value: 6.3

Growth: 6.6

Quality: 5.0

Yield: 0.0

Momentum: 0.5

Volatility: 2.7

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

2.27$

Current Price

2.27$

Potential

-0.00%

Expected Cash-Flows