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Aware
(NASDAQ:AWRE)
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Rating:44Neutral
Price Target:
$0.86
▼(-31.75% Downside)
Action:Reiterated
Date:10/31/26
The score is held down primarily by weak financial performance (declining revenue, deep losses, and ongoing negative operating/free cash flow) and bearish technical momentum (price below major moving averages and negative MACD). These are partially offset by a somewhat constructive earnings call focused on recurring revenue progress and confirmed cost reductions, while valuation inputs are not supportive due to losses (negative P/E) and no dividend.
Positive Factors
Recurring Revenue
Recurring revenue above 90% of quarterly sales, with 11% year-over-year growth, improves revenue visibility and reduces reliance on new project wins. Continued expansion of term-license revenue can support a more durable base as Aware develops its platform model.
Negative Factors
Revenue and Profitability
Declining revenue alongside a deeply negative and worsening net margin shows that Aware has not yet achieved a scalable operating model. Strong gross margins are being overwhelmed by operating costs, leaving profitability dependent on renewed growth and further cost discipline.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Revenue
Recurring revenue above 90% of quarterly sales, with 11% year-over-year growth, improves revenue visibility and reduces reliance on new project wins. Continued expansion of term-license revenue can support a more durable base as Aware develops its platform model.
Read all positive factors
Aware (AWRE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$19.37M
Dividend Yield35%
Average Volume (3M)30.62K
Price to Earnings (P/E)―
Beta (1Y)1.43
Revenue Growth-9.81%
EPS Growth-45.08%
CountryUS
Employees80
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.38
Shares Outstanding21,812,637
10 Day Avg. Volume32,197
30 Day Avg. Volume30,622
Financial Highlights & Ratios
PEG Ratio-0.20
Price to Book (P/B)1.50
Price to Sales (P/S)2.27
P/FCF Ratio-7.04
Enterprise Value/Market Cap0.66
Enterprise Value/Revenue0.81
Enterprise Value/Gross Profit0.89
Enterprise Value/Ebitda-1.66
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Aware Business Overview & Revenue Model
Company Description
Aware, Inc. stands as a global purveyor of biometric software solutions and products, with its operations spanning the United States, Brazil, the United Kingdom, and numerous other international markets. The company's comprehensive product line fe...
How the Company Makes Money
Aware primarily makes money by selling its biometric software and related services. Key revenue streams generally include: (1) Software license revenue from its biometric matching/identity software (e.g., biometric engines and identity management ...
Aware Earnings Call Summary
Earnings Call Date:Oct 28, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Mar 10, 2027
Earnings Call Sentiment Positive
The call was cautiously positive. Management highlighted meaningful progress in recurring revenue, cost savings, government customer adoption, customer expansion and the Awareness Platform strategy. However, total and nine-month revenue declined, nine-month losses worsened, federal procurement remains unpredictable, the cloud transition is incomplete and no breakeven timeline was provided. The number and significance of the stated operational improvements outweighed the challenges, but management emphasized that revenue performance still needs to improve.Positive Updates
Recurring Revenue Growth
Third-quarter recurring revenue grew 11% to $4.0 million from $3.6 million in the prior-year period and represented more than 90% of total revenue. The increase was driven primarily by on-premise term licenses.
Negative Updates
Third-Quarter Revenue Decline
Third-quarter revenue declined to $4.4 million from $5.1 million in the prior-year period. Management said the decrease was driven primarily by lower perpetual license sales.
Read all updates
Q3-2026 Updates
Positive
Negative
Recurring Revenue Growth
Third-quarter recurring revenue grew 11% to $4.0 million from $3.6 million in the prior-year period and represented more than 90% of total revenue. The increase was driven primarily by on-premise term licenses.
Read all positive updates
Company Guidance
For the remainder of 2026, Aware expects “a typical seasonal pattern of growth” with “a generally similar mix of recurring and nonrecurring revenue to what we saw in the third quarter” while maintaining the lower cost structure established this year; fourth quarter operating expenses are expected to remain “generally consistent” with that lower cost structure, following approximately $4 million of annualized cost savings achieved in Q3, and the company will continue to make adjustments to operating expenses as appropriate.Aware Financial Statement Overview
Summary
Income Statement
27
Negative
Balance Sheet
62
Positive
Cash Flow
24
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 15.72M | 17.29M | 17.39M | 18.24M | 16.01M | 16.85M |
| Gross Profit | 14.18M | 15.97M | 16.26M | 16.97M | 14.75M | 15.64M |
| EBITDA | -7.63M | -5.04M | -3.82M | -6.08M | -7.24M | -5.41M |
| Net Income | -8.27M | -5.87M | -4.43M | -7.31M | -1.73M | -5.82M |
Balance Sheet | ||||||
| Total Assets | 30.78M | 37.20M | 42.64M | 46.30M | 51.19M | 48.37M |
| Cash, Cash Equivalents and Short-Term Investments | 15.38M | 22.30M | 27.81M | 30.91M | 28.98M | 29.96M |
| Total Debt | 3.73M | 3.97M | 4.24M | 4.47M | 4.52M | 0.00 |
| Total Liabilities | 10.73M | 11.06M | 11.75M | 12.00M | 10.98M | 6.85M |
| Stockholders Equity | 20.05M | 26.14M | 30.90M | 34.30M | 40.21M | 41.52M |
Cash Flow | ||||||
| Free Cash Flow | -5.95M | -5.56M | -3.21M | 1.81M | -5.77M | -6.26M |
| Operating Cash Flow | -5.83M | -5.40M | -3.16M | 1.82M | -5.04M | -6.23M |
| Investing Cash Flow | 1.86M | -274.00K | 6.29M | -3.14M | -11.99M | -2.48M |
| Financing Cash Flow | 98.00K | -31.00K | -159.00K | -426.00K | -1.18M | 109.00K |
Aware Technical Analysis
Negative
1.26
Price Trends
1.09
Negative
1.19
Negative
1.33
Negative
Market Momentum
-0.07
Negative
40.35
Neutral
53.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AWRE, the sentiment is Negative. The current price of 1.26 is above the 20-day moving average (MA) of 0.93, above the 50-day MA of 1.09, and below the 200-day MA of 1.33, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 40.35 is Neutral, neither overbought nor oversold. The STOCH value of 53.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AWRE.
Aware Risk Analysis
Aware disclosed 25 risk factors in its most recent earnings report. Aware reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Aware Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $18.09M | 5.55 | 14.09% | 22.00% | -3.72% | 4.50% | |
69 Neutral | $91.80M | 30.61 | 7.84% | ― | 12.53% | -0.08% | |
65 Neutral | $47.93M | 15.65 | 15.02% | ― | 16.70% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
44 Neutral | $19.37M | -2.31 | -36.87% | 35.00% | -9.81% | -45.08% | |
44 Neutral | $24.08M | -9.41 | -18.91% | ― | 25.50% | 88.69% |
* Technology Sector Average
AWRE
Aware
0.89
-1.32
-59.86%
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MNDO
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NTWK
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CNTM
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4.20
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.