Aware, Inc.

What they do

Aware provides biometric software for identity verification, including matching, liveness detection, and orchestration of multiple biometric vendors. Its revenue comes from software licenses, maintenance, and services. The company is focused on its Awareness Platform, which unifies biometric orchestration, decisioning, liveness, and partner technologies.

Revenue drivers

• Software licenses — Perpetual license revenue; $1.985M in H1 2026, down from $2.736M in H1 2025.
• Software maintenance — Recurring maintenance revenue; $4.066M in H1 2026, down from $4.252M in H1 2025.
• Services and other — Services revenue; $0.590M in H1 2026, up from $0.513M in H1 2025.

Recent performance

Q2 2026 revenue was $3.3M, down 16% from $3.9M in Q2 2025, driven by lower perpetual license sales. Operating expenses rose to $6.0M from $5.9M, and net loss widened to $2.6M ($0.12 per diluted share). For H1 2026, total revenue fell to $6.6M from $7.5M, and operating loss deepened to $6.4M from $3.8M. Cash and marketable securities declined to $16.8M at June 30, 2026 from $22.3M at December 31, 2025.

Strategy

Management is transitioning from standalone products to the Awareness Platform, a unified biometric orchestration environment. Investing in Intelligent Liveness and Intelligent Matching to counter AI threats and improve performance. Forming partnerships with technology providers (e.g., ROC, Mitek) to expand platform capabilities. Focusing on federal opportunities, especially with DHS, leveraging its U.S. base and Buy American alignment. Implementing cost-reduction actions to lower expenses in H2 2026.

Risks

• Revenue decline — Continued softness in standalone product offerings has caused revenue to decline in recent quarters.
• Cash burn — Operating cash flow was negative $5.4M in 2025 and cash/marketable securities fell by $5.5M in H1 2026.
• Dependence on government spending — Government funding disruptions have affected DHS operations and related business activity.
• Transition execution — Shift to the Awareness Platform may not generate sufficient revenue to offset declines in legacy products.

Outlook

Management expects typical seasonal patterns with H2 revenue higher than H1. Expenses are expected to be lower as cost-reduction actions take effect. They see increased federal business development activity and are confident in near-term opportunities, though no specific numbers were provided.