Aware (AWRE) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was $3.3 million, down from $3.9 million year-over-year, primarily due to lower perpetual/software license sales and federal procurement delays.

• The company is transitioning to a SaaS-based biometric orchestration platform, focusing on government and enterprise markets, with operational highlights including new technology partnerships and platform advancements.

• Operating loss increased to $2.7 million from $2.0 million year-over-year, driven by reduced revenue and one-time severance costs.

• Significant product enhancements were made to the Awareness Platform, including advanced liveness and matching capabilities and integration of ROC and Mitek as technology partners.

• A cost-saving plan was implemented in March 2026, resulting in $0.7 million in severance charges and expected future savings.

Financial highlights

• Six-month 2026 revenue was $6.6 million, down from $7.5 million year-over-year.

• Q2 net loss was $2.6 million ($0.12/share), compared to $1.8 million ($0.08/share) prior year; six-month net loss was $6.0 million ($0.28/share) versus $3.4 million ($0.16/share) prior year.

• Q2 adjusted EBITDA loss was $2.3 million (vs. $1.4 million prior year); six-month adjusted EBITDA loss was $5.5 million (vs. $3 million prior year).

• Operating expenses for Q2 2026 were $6.0 million, up from $5.9 million in Q2 2025, including $0.7 million in one-time severance.

• Cash, cash equivalents, and marketable securities totaled $16.8 million at June 30, 2026, with no debt.

Outlook and guidance

• Revenue and operating profile are expected to improve in the second half of FY26, with lower expenses as cost reductions take effect.

• Management expects incremental cost savings from workforce reductions to benefit results through the remainder of 2026.

• Cash resources are expected to be sufficient for at least the next twelve months.

• Recurring revenue to be supported by subscription renewals and typical seasonality, but continued quarter-to-quarter variability is anticipated.

• Focus remains on executing near-term opportunities, maintaining expense discipline, and advancing the Awareness Platform.