Aware, Inc.

Second-quarter revenue was $3.3 million, down from $3.9 million in the prior year period. Operating expenses were $6 million versus $5.9 million a year ago; net loss was $2.6 million, or $0.12 per diluted share, versus $2 million, or $0.08 per diluted share; and adjusted EBITDA loss was $2.3 million versus $1.4 million. For the first six months, revenue was $6.6 million versus $7.5 million, operating expenses were $13 million versus $11.3 million, net loss was $6 million, or $0.28 per diluted share, and adjusted EBITDA loss was $5.5 million versus $3 million. The company ended the quarter with about $16.8 million in cash, cash equivalents and marketable securities and no debt. Management expects second-half revenue to improve from Q2 levels and expenses to be lower, supported by seasonality, subscription renewals, and the $4 million annualized expense reduction begun in Q2.

Ajay Amlani framed the quarter as part of a broader transformation toward a more focused SaaS biometric orchestration business centered on the Awareness Platform, Intelligent Liveness, and Intelligent Matching. He emphasized that AI-driven fraud is increasing the relevance of Aware’s technology and said the company is seeing renewed federal interest, especially across DHS-related modernization, border, and traveler-processing initiatives. His tone was candid about near-term weakness, saying the company is “not where we want to be yet,” but constructive about the strategy and the second half.

David Traverse said the quarter reflected continued expense pressure from 2025 hires and, for the first half, $700,000 of severance costs, partly offset by spending reductions. He reiterated that operating expenses were reduced by $4 million on an annualized basis starting in Q2 2026 and that management will keep adjusting spending to align with strategic priorities. He also highlighted a strong balance sheet with approximately $16.8 million in cash, cash equivalents and marketable securities and no debt, while noting revenue can still vary with perpetual licenses, procurement cycles, renewals, and service activity.

Analysts focused heavily on how federal momentum could translate into commercial demand, whether Aware had involvement in specific government programs, and when revenue growth could become sustainable. Management repeatedly avoided commenting on specific pursuits or bids, but said public-sector biometric modernization, buying American, and DHS normalization are creating real activity. On commercial, Ajay said government and enterprise customers face similar AI-fraud and workflow-fragmentation problems, and the Awareness Platform is meant to serve both. Brian Krause added that the platform is market-ready, that the new customer announced last quarter remains active and has renewed, and that the sales team’s productivity remains at or above expected benchmarks.