The revenue decline and lack of forward guidance are the primary concerns. Monitor the next quarter for stabilization in total revenue and progress on converting the new government Intelligent Liveness deployment into a recurring revenue stream. Cash burn rate and the trajectory of operating expenses will be key to assessing runway.
Price Chart
Executive Summary
Aware reported Q3 2026 revenue of $4.4M, down 14% YoY from $5.1M, with a net loss of $0.8M ($0.04/share) compared to a $1.1M loss in Q3 2025. Recurring revenue grew to $4.0M from $3.6M, and operating expenses fell to $5.4M from $6.4M due to cost-cutting actions. The revenue decline and lack of guidance overshadow the recurring revenue growth and narrower operating loss.
Key Financial Metrics
Key Facts
- Q3 2026 total revenue $4.4M vs $5.1M in Q3 2025, a 14% decline
- Recurring revenue grew to $4.0M from $3.6M, up 11% YoY
- Operating loss narrowed to $0.9M from $1.3M in the prior-year period
- Net loss was $0.8M ($0.04/diluted share) vs $1.1M ($0.05/diluted share)
- Adjusted EBITDA loss improved to $0.5M from $0.8M
- Cash, cash equivalents and marketable securities were $15.4M at quarter end, down from $22.3M at Dec 31, 2025
- Cost-reduction actions expected to generate ~$4.0M in annualized savings, first full quarter reflected
- No guidance provided for future periods
Financial Impact
Revenue declined $0.7M (14%) YoY; operating loss improved $0.4M; cash burn of ~$6.9M in 9 months
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Software licenses | $1.9M | -23.2% |
| Software maintenance | $2.1M | -4.3% |
| Services and other | $374.0K | -7.7% |
Risk Factors
- Revenue declined 14% YoY, driven by a sharp drop in non-recurring software license revenue ($0.2M vs $1.3M)
- Cash and marketable securities fell to $15.4M from $22.3M at year-end 2025, a $6.9M decline in 9 months
- No financial guidance provided, adding uncertainty about near-term revenue trajectory
- Nine-month net loss widened to $6.8M from $4.4M in the prior-year period
- Dependence on government procurement cycles which remain unpredictable
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-436157 |
| Document: awre-20260930.htm | 0001193125-26-436157 |
| Document: 0001193125-26-436157-index-headers.html | 0001193125-26-436157 |
| Document: 0001193125-26-436157-index.html | 0001193125-26-436157 |
| Document: 0001193125-26-436157.txt | 0001193125-26-436157 |
| 8-K Data (Synthetic) | 0001193125-26-436157 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 28, 2026 1d ago | 8-K | No price | awaiting T+20 | awaiting T+20 | No price |
Oct 28, 2026 1d ago | Press Release | $0.9346 | awaiting T+20 | awaiting T+20 | $0.8600 (+7.98%) |
Jun 9, 2026 20w ago | Press Release | $1.35 $1.36 | ▲ +0.74% | ▼ −0.71% | $0.8600 (−36.30%) |
May 26, 2026 22w ago | Insider Cluster | $1.54 $1.34 | ▼ −12.99% | ▼ −11.09% | $0.8600 (−44.16%) |
May 22, 2026 22w ago | DEFA14A | $1.30 $1.37 | ▲ +5.38% | ▲ +7.33% | $0.8600 (−33.85%) |
May 8, 2026 25w ago | Insider Cluster | $1.30 $1.35 | ▲ +3.85% | ▲ +3.82% | $0.8600 (−33.85%) |
May 5, 2026 25w ago | Insider Cluster | $1.28 $1.44 | ▲ +12.50% | ▲ +9.33% | $0.8600 (−32.81%) |
Apr 15, 2026 28w ago | Press Release | $1.25 $1.26 | ▲ +0.80% | ▼ −5.24% | $0.8600 (−31.20%) |
Mar 13, 2026 33w ago | Insider Cluster | $1.37 $1.20 | ▼ −12.41% | ▼ −16.00% | $0.8600 (−37.23%) |
Mar 4, 2026 34w ago | 8-K | $1.57 $1.31 | ▲ +16.56% | ▲ +12.77% | $0.8600 (+45.22%) |
US Market Status
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