Aware (AWRE) investor relations material

Executive summary

• Advanced strategic transformation with operational rigor, market alignment, and technology differentiation, including new leadership hires and CEO transition in February 2025.

• Achieved strong third-party validation, including top performance in DHS biometric benchmarks and recognition as an industry Luminary.

• Expanded presence in federal and international markets, securing national ID programs in the Middle East and a top 15 global financial institution as a customer.

• Introduced 14X faster face matching and enhanced mobile face capture, driving product innovation.

• Growing late-stage pipeline and focus on onboarding to drive revenue acceleration in 2025 and 2026.

Financial highlights

• Q2 2025 revenue was $3.9M, down from $4.3M year-over-year, mainly due to timing of perpetual license sales and lower software license revenue.

• Net loss for Q2 2025 was $1.8M ($0.08/share) vs. $1.1M ($0.05/share) prior year; six-month net loss was $3.4M ($0.16/share) vs. $2.1M ($0.10/share).

• Adjusted EBITDA loss for Q2 2025 was $1.4M, up from $1.0M year-over-year; six-month adjusted EBITDA loss was $3.0M vs. $1.9M.

• Operating expenses for Q2 2025 were $5.9M, up from $5.7M; six-month total was $11.3M, flat year-over-year.

• Cash, cash equivalents, and marketable securities totaled $23.7M as of June 30, 2025, down from $27.8M at year-end 2024.

Outlook and guidance

• Focus on pipeline advancement, customer onboarding, and scaling business, with revenue timing uncertain due to deal-specific factors.

• Investments targeted at growth-supporting areas like customer success, commercial execution, and innovation for sustainable value creation into 2026.

• Key growth levers identified in federal government, law enforcement, and commercial markets, with government budget increases expected.

• Cash resources expected to be sufficient for at least the next twelve months, though future financing may be needed.