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Aware (AWRE)
NASDAQ:AWRE
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Aware
(NASDAQ:AWRE)
49Neutral
Aware (AWRE) vs. S&P 500 (SPY)
Market Cap
$32.17M
Dividend YieldN/A
Average Volume (3M)33.27K
Price to Earnings (P/E)―
Beta (1Y)1.46
Revenue Growth-4.69%
EPS Growth39.86%
CountryUS
Employees64
SectorTechnology
Sector Strength55
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.21
Shares Outstanding21,096,580
10 Day Avg. Volume26,105
30 Day Avg. Volume33,274
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.04
Price to Cash Flow (P/CF)13.00
P/FCF Ratio13.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Aware Business Overview & Revenue Model
Company DescriptionAware, Inc. (AWRE) is a leading provider of biometrics software and services, specializing in solutions that enhance security and identification processes. The company operates primarily in the biometrics and security sectors, offering a suite of products that include fingerprint, face, and iris recognition technologies. Aware's solutions are utilized in various applications, such as border management, law enforcement, and access control systems, providing both government and commercial clients with robust and reliable identification tools.
How the Company Makes MoneyAware, Inc. generates revenue through the sale of its biometrics software licenses and related services. The company's primary revenue streams include software licensing fees, maintenance contracts, and professional services such as consulting and integration support. Aware also earns income from custom development projects tailored to meet specific client needs. Significant partnerships with government agencies and commercial enterprises help drive sales, as these collaborations often require sophisticated security solutions that Aware is well-positioned to provide. Additionally, Aware's focus on innovation and efficiency in biometrics technology contributes to its competitive advantage and financial performance.
Aware Financial Statement Overview
Summary
Aware faces profitability and growth challenges as reflected by negative income and declining revenues. The balance sheet is strong with significant cash reserves, but cash flow sustainability is uncertain.Income Statement
Aware's income statement shows persistent challenges, with negative EBIT and net income for the past several years, indicating profitability issues. The gross profit margin is decent at 100% for the latest period, but the company has experienced a decline in revenue compared to previous years, indicative of growth challenges.45
Neutral
Balance Sheet
The balance sheet reflects a strong cash position with no net debt due to substantial cash and short-term investments. However, the debt-to-equity ratio increased due to higher relative liabilities, and total assets have been declining. The equity ratio remains robust, showing a strong equity base.60
Neutral
Cash Flow
Cash flows are under pressure with negative operating and free cash flow in the latest period, though the company had positive operating cash flow in the prior year. The lack of consistent free cash flow generation is a concern for sustainability.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 17.39M | 18.24M | 16.01M | 16.85M | 11.31M | Gross Profit |
| 16.26M | 16.97M | 14.75M | 15.64M | 10.50M | EBIT |
| -4.41M | -8.54M | -7.89M | -6.10M | -9.42M | EBITDA |
| -4.98M | -6.08M | -7.24M | -5.41M | -8.86M | Net Income Common Stockholders |
| -4.43M | -7.31M | -1.73M | -5.82M | -7.61M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 27.81M | 30.91M | 28.98M | 29.96M | 38.56M | Total Assets |
| 42.64M | 46.30M | 51.19M | 48.37M | 51.63M | Total Debt |
| 4.24M | 4.47M | 4.99M | 0.00 | 0.00 | Net Debt |
| -8.73M | -5.53M | -6.76M | -29.96M | -38.56M | Total Liabilities |
| 11.75M | 12.00M | 10.98M | 6.85M | 5.96M | Stockholders Equity |
| 30.90M | 34.30M | 40.21M | 41.52M | 45.67M |
| Cash Flow | Free Cash Flow | |||
| -3.21M | 1.81M | -5.77M | -6.26M | -5.76M | Operating Cash Flow |
| -3.16M | 1.82M | -5.04M | -6.23M | -5.27M | Investing Cash Flow |
| 6.29M | -3.14M | -11.99M | -2.48M | -2.91M | Financing Cash Flow |
| -159.00K | -426.00K | -1.18M | 109.00K | -989.00K |
Aware Technical Analysis
Negative
1.48
Price Trends
1.58
Negative
1.59
Negative
1.79
Negative
Market Momentum
-0.04
Positive
40.06
Neutral
46.13
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 1.48 is below the 20-day moving average (MA) of 1.56, below the 50-day MA of 1.58, and below the 200-day MA of 1.79, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 40.06 is Neutral, neither overbought nor oversold. The STOCH value of 46.13 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 24 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
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
58 Neutral | $11.04B | 9.83 | -6.56% | 3.16% | 7.59% | -10.43% | |
58 Neutral | $47.76M | ― | -5.24% | ― | 5.78% | 54.19% | |
58 Neutral | $139.11M | ― | -169.61% | ― | 0.60% | -115.20% | |
56 Neutral | $231.63M | 2.74 | 35.11% | 2.32% | 3828.94% | 129.01% | |
49 Neutral | $32.17M | ― | -13.59% | ― | -4.69% | 39.86% | |
49 Neutral | $75.50M | ― | -21.97% | ― | -63.51% | -326.18% |
* Technology Sector Average
Performance Comparison
AWRE
Aware
1.45
-0.23
-13.69%
INVE
Identiv
3.25
-1.59
-32.85%
IMMR
Immersion
7.29
0.51
7.52%
IDN
Intellicheck Mobilisia
2.38
-0.78
-24.68%
KOPN
Kopin
0.84
-0.44
-34.38%
Aware Earnings Call Summary
Earnings Call Date: Mar 5, 2025 | % Change Since: -1.99% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted several positive financial developments, including a significant increase in fourth-quarter revenue and a reduction in operating expenses. However, the company also faces challenges, such as a decline in full-year revenue and expected revenue headwinds in 2025. While efforts to refine the go-to-market strategy and deepen partnerships are promising, the balanced mix of highlights and lowlights suggests a cautious outlook.Highlights
Fourth Quarter Revenue Increase
Total revenue for the fourth quarter increased by 10% to $4.8 million, compared to $4.4 million in Q4 of last year, largely driven by higher software license revenue, including a $1 million one-time license sale to a European government.
Reduction in Operating Expenses
Operating expenses were reduced to $6.3 million, down 29% from $8.9 million in Q4 of 2023, reflecting a disciplined approach to cost optimization.
Improved Operating Loss
Operating loss improved to $1.5 million, compared to an operating loss of $4.5 million in the same period last year.
Positive Adjusted EBITDA Trend
Adjusted EBITDA loss for the fourth quarter was $800,000, compared to an adjusted EBITDA loss of $1.2 million in the prior year.
Strong Cash Position
As of December 31st, 2024, Aware had cash, cash equivalents, and marketable securities totaling $27.8 million.
Commitment to Strategic Growth
Ajay Amlani highlighted Aware's strategic focus on deepening partnerships, advancing technological innovation, and scaling sustainably to drive growth.
Lowlights
Full Year Revenue Decline
Total revenue for the full year was $17.4 million, compared to $18.2 million in the same period last year, due to lower software license revenue.
Expected Revenue Headwinds
The company anticipates revenue headwinds throughout 2025 as they refine their go-to-market strategy and adapt to industry dynamics.
Decline in Recurring Revenue for Q4
Recurring revenue was $3.3 million in Q4, compared to $3.7 million in the prior year period, due to timing of revenue recognition for contracts.
Missed Recurring Revenue Growth Target
Annual recurring revenue increased by 9% year-over-year, falling short of the company's double-digit growth target for 2024.
Company Guidance
During Aware's fourth quarter and full year 2024 conference call, CEO Ajay Amlani outlined strategic priorities aimed at positioning the company for sustainable growth in 2026 and beyond. The call highlighted a 10% increase in fourth-quarter revenue to $4.8 million, driven by a $1 million one-time license sale to a European government, despite a slight year-over-year decline in recurring revenue to $3.3 million. Operating expenses in Q4 were reduced by 29% to $6.3 million, and the operating loss improved by $1.5 million. For the full year, total revenue was $17.4 million, with recurring revenue growing 9% to $12 million, comprising 69% of total revenue. Operating expenses decreased by 14%, resulting in an improved operating loss of $5.5 million. Amlani emphasized a strategic focus on deepening partnerships, advancing technological innovation, and refining the go-to-market strategy to address anticipated revenue headwinds in 2025, with the goal of driving meaningful revenue growth.Aware Corporate Events
Executive/Board Changes
Aware Appoints CFO David Traverse as Interim CEO
Neutral
Jan 2, 2025
Aware, Inc. has appointed its Chief Financial Officer, David Traverse, as interim Chief Executive Officer following the resignation of Bob Eckel, effective January 1, 2025. Traverse, who joined Aware in 2020 and held various financial roles, will serve as interim CEO until a permanent replacement is found, as the company continues its search for a new leader.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.