GICS Sector : Technology
authID Inc.operates an Identity as a Service (IDaaS) platform that delivers a suite of secure, mobile, and biometric identity solutions worldwide.The company develops an IDaaS platform to enable users to verify and authenticate their identity through a mobile phone or desktop with camera.
The company's financial performance for the third quarter of 2025 was marked by negative net revenue due to accounting adjustments related to two contracts. One contract was impacted by changes in the customer's go-to-market strategy and international market challenges, resulting in a partial payment and a contract amendment request. The second contract involved concessions estimated to be granted to a customer tracking below their annual minimum usage commitment. The net loss for the quarter was $5.2 million, with non-cash charges of $1.1 million. Operating expenses increased by 34% year-over-year, primarily due to increased headcount and investment in sales and R&D. The non-GAAP adjusted EBITDA loss was $4.1 million for Q3, compared to a $2.9 million loss for the same period last year.
Publication Date: Nov -26
Despite the current challenges, the company remains optimistic about its revenue growth prospects. Annual recurring revenue (ARR) as of Q3 is $1.7 million, compared to $1 million of ARR as of Q3 2024, representing a 70% year-over-year increase. The company's remaining performance obligation (RPO) decreased to $3.6 million, but it expects to resume its upward trend as it gains traction closing deals in its pipeline. As CEO Rhoniel A. Daguro noted, "We're excited about our prospects' enthusiasm to engage with our solutions and believe we can continue to sign up large household brand names to use authID Inc. to secure their workforce and customers."
To understand what's priced into the stock, we can examine various valuation metrics. The current P/S Ratio is 7.61, indicating that investors are pricing in significant revenue growth. The EV/EBITDA ratio is -0.51, reflecting the company's current loss-making position. The ROE and ROIC are both negative, at -139.8% and -131.26%, respectively, highlighting the challenges the company faces in generating profits. Given the current financial performance, it's essential to monitor the company's progress in achieving its revenue growth milestones and improving its profitability.
The company has made progress in building a balanced portfolio of FAST 100 and FAT 100 companies, with several FAT 100 clients, including a global leader in payroll technology and a global leader in digital payments. The company's products and technology have been recognized as industry-leading, with innovations such as PrivacyKey and IDX. The company has also added new capabilities to its IDX platform to tie each AI agent to a human, creating accountability for all AI agent actions and behaviors. With a growing pipeline and expanding customer relationships, the company is well-positioned to drive future revenue growth.
authID Selected to Biometrically Secure Identities for Online Educational Services at Correctional Facilities
Dec -04
authID Announces Closing of Approximately $3,675,000 Registered Direct Offering
Nov -24
authID Announces Pricing of Approximately $3,675,000 Registered Direct Offering
Nov -21
authID Joins NVIDIA Connect to Advance Enterprise and AI Agent Security Innovation and Opportunities
Nov -20
authID Unveils Mandate Framework to Establish the Critical Trust and Governance Layer for the Accelerating Agentic AI Market
Nov -18
authID Unveils Mandate Framework to Establish the Critical Trust and Governance Layer for the Accelerating Agentic AI Market
Nov -18
authID Inc. (AUID) Q3 2025 Earnings Call Transcript
Nov -13
authID Reports Financial and Operating Results for the Third Quarter 2025
Nov -12
The digital identity verification market is driven by increasing cybersecurity threats, growing demand for cloud-based services, and rising adoption of IoT devices. Verified Software License from authID Inc. is well-positioned to capitalize on these trends, ensuring software authenticity and preventing counterfeiting.
Growing demand for passwordless authentication, increasing adoption of cloud-based services, and need for modernizing legacy systems drive the growth of Legacy Authentication Services. Integration with existing infrastructure and enhanced security features further boost the market.
A solution that verifies an individual's age, ensuring compliance with regulations and preventing underage access to age-restricted products and services.
A solution that verifies an individual's identity, ensuring that users are who they claim to be.
A solution that uses facial recognition and liveness detection to verify an individual's identity.
A solution that verifies the authenticity of identification documents, such as passports and driver's licenses.
A solution that helps businesses comply with Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations.
The threat of substitutes for authID Inc. is medium due to the presence of alternative identity verification solutions.
The bargaining power of customers for authID Inc. is low due to the company's strong brand reputation and lack of substitutes.
The bargaining power of suppliers for authID Inc. is medium due to the presence of multiple suppliers for identity verification services.
The threat of new entrants for authID Inc. is high due to the growing demand for identity verification services and low barriers to entry.
The intensity of rivalry for authID Inc. is high due to the presence of established competitors in the identity verification market.
| Value | |
|---|---|
| Debt Weight | 1.67% |
| Debt Cost | 16.25% |
| Equity Weight | 98.33% |
| Equity Cost | 16.25% |
| WACC | 16.25% |
| Leverage | 1.70% |
Value: 3.6
Growth: 4.8
Quality: 7.8
Yield: 0.0
Momentum: 8.5
Volatility: 5.7
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