BURLINGTON, Mass., Oct. 28, 2026 (GLOBE NEWSWIRE) — Awa e, I c. (NASDAQ: AWRE), a global leade i biomet ic o chest atio , today epo ted fi a cial esults fo the thi d qua te e ded Septembe 30, 2026.
- Selected by a gove me t age cy custome to deploy I tellige t Live ess capabilities f om the Awa e ess Platfo m, ma ki g a impo ta t step fo wa d fo the platfo m’s use i high-assu a ce ide tity e vi o me ts.
- Established a ew comme cial elatio ship with Adobe Ac obat Sig ‘s dist ibuto , with ew custome activity i Lati Ame ica.
- Realized the impact of cost- eductio actio s impleme ted ea lie i 2026, actio s expected to ge e ate app oximately $4.0 millio i a ualized savi gs, co t ibuti g to a eductio i ope ati g loss compa ed with the p io -yea pe iod.
“Thi d-qua te eve ue was $4.4 millio , compa ed with $5.1 millio i the p io -yea pe iod a d ecu i g eve ue g ew to app oximately $4.0 millio f om app oximately $3.6 millio a yea ago,” said Ajay Amla i, CEO a d P eside t of Awa e. ”While we made p og ess i seve al impo ta t a eas, imp ovi g eve ue co siste cy emai s a p io ity as we wo k to t a slate the oppo tu ities i f o t of us i to mo e p edictable fi a cial pe fo ma ce.”
“Du i g the qua te , Awa e was selected by a gove me t age cy custome to deploy I tellige t Live ess capabilities f om the Awa e ess Platfo m. This ep ese ts a ew gove me t age cy e gageme t a d gives us a oppo tu ity to demo st ate how biomet ic o chest atio a d I tellige t Live ess ca suppo t high-assu a ce ide tity e vi o me ts,” Amla i said. “Si ce fu di g fo most of the Depa tme t of Homela d Secu ity was esto ed, we have see i c eased solicitatio activity fo the biomet ic ide tity p og ams we pu sue, as age cies look to allocate fu di g to imp ove atio al secu ity, mode ize legacy biomet ic a d ide tity systems, a d imp ove use expe ie ces. While fede al p ocu eme t cycles emai difficult to p edict, co ve ti g ou ew fede al gove me t e gageme t i to a active custome ep ese ts mea i gful p og ess.”
Awa e also co ti ued to expa d its comme cial busi ess, i cludi g a ew elatio ship with Adobe Ac obat Sig ‘s dist ibuto , delive i g biomet ic secu ity fo custome s usi g Adobe Ac obat Sig , with ew custome activity i Lati Ame ica. The elease of the Awa e ess Platfo m a d i vestme ts i to its I tellige t Live ess module have ei vigo ated the pipeli e as comme cial custome s look to expa d thei use of biomet ics to defe d agai st AI-e abled f aud attacks. Specifically, custome s i c easi gly seek to co t ol thei ow biomet ic systems athe tha depe d o a si gle ve do .
“We a e e cou aged by the p og ess we a e seei g ac oss both custome expa sio a d ecu i g eve ue,” Amla i said. “While ecu i g eve ue ca fluctuate f om qua te to qua te , i c easi g the ecu i g compo e t of the busi ess ove time should help c eate a mo e du able eve ue fou datio .”
Ope ati g expe ses d opped to $5.4 millio f om $6.4 millio i the thi d qua te of 2025, eflecti g the cost- eductio actio s impleme ted ea lie i 2026.
“Reduci g expe ses alo e is ot the objective,” Amla i added. “We eed to pai a mo e efficie t cost st uctu e with st o ge a d mo e co siste t eve ue pe fo ma ce. Ou st ategy emai s ce te ed o the Awa e ess Platfo m a d its biomet ic o chest atio capabilities, helpi g o ga izatio s mo e easily deploy, ma age a d mode ize biomet ic ide tity systems.”
“Ou focus as we close 2026 a d e te 2027 is executio ,” Amla i co cluded. “We eed to expa d the custome s we al eady have, co ve t the oppo tu ities we a e pu sui g, imp ove the quality a d du ability of ou eve ue, a d emai discipli ed about whe e we i vest.”
Reve ue fo the qua te was $4.4 millio , compa ed with $5.1 millio i the p io -yea pe iod.
Recu i g eve ue was app oximately $4.0 millio , compa ed with app oximately $3.6 millio i the thi d qua te of 2025. Recu i g eve ue i cludes eve ue ecog ized f om subsc iptio , mai te a ce a d ecu i g usage-based a a geme ts, a d ca fluctuate f om qua te to qua te based o e ewal timi g, co t act st uctu es, custome activity a d the mix of eve ue ecog ized i a give pe iod.
Ope ati g expe ses fo the qua te we e $5.4 millio , compa ed with $6.4 millio i the p io -yea pe iod. The yea -ove -yea cha ge eflects spe di g eductio s impleme ted ea lie i 2026. Those actio s we e i te ded to educe Awa e’s ope ati g expe se base by app oximately $4.0 millio o a a ualized basis, with the thi d qua te eflecti g the fi st full qua te of those savi gs.
Ope ati g loss fo the qua te was app oximately $0.9 millio , compa ed with ope ati g loss of app oximately $1.3 millio i the thi d qua te of 2025.
Net loss fo the qua te was $0.8 millio , o $0.04 pe diluted sha e, compa ed with $1.1 millio , o $0.05 pe diluted sha e, i the p io -yea pe iod.
Adjusted EBITDA (a o -GAAP met ic eco ciled below) loss was $0.5 millio , compa ed with $0.8 millio i the p io -yea pe iod.
Reve ue fo the i e mo ths e ded Septembe 30, 2026, was $11.1 millio , compa ed with $12.6 millio i the p io -yea pe iod.
Recu i g eve ue was app oximately $9.6 millio , compa ed with app oximately $9.2 millio i the p io -yea pe iod.
Ope ati g expe ses fo the i e mo ths e ded Septembe 30, 2026, we e $18.4 millio , compa ed with $17.7 millio i the p io -yea pe iod. The yea -ove -yea compa iso i cludes o e-time seve a ce costs of app oximately $0.7 millio p ima ily ecog ized i the fi st qua te , as well as highe compe satio costs associated with hi es made i 2025, pa tially offset by spe di g eductio s impleme ted du i g 2026.
Net loss fo the i e-mo th pe iod was $6.8 millio , o $0.31 pe diluted sha e, compa ed with $4.4 millio , o $0.21 pe diluted sha e, i the p io -yea pe iod.
Adjusted EBITDA loss was $6.1 millio , compa ed with $3.8 millio i the p io -yea pe iod.
Awa e e ded the thi d qua te with app oximately $15.4 millio i cash, cash equivale ts a d ma ketable secu ities a d o debt.
Awa e ma ageme t will host a webcast today, Octobe 28, 2026, at 5:00 p.m. Easte time to discuss these esults a d p ovide a update o busi ess co ditio s. A questio -a d-a swe sessio will follow ma ageme t’s p epa ed ema ks.
The p ese tatio will be made available fo eplay i the i vesto elatio s sectio of the Compa y’s website. The audio eco di g will be available fo app oximately 90 days followi g the live eve t.
Po tio s of this elease co tai fo wa d-looki g stateme ts withi the mea i g of the P ivate Secu ities Litigatio Refo m Act of 1995. Fo wa d-looki g stateme ts a e ot stateme ts of histo ical fact athe they eflect Awa e’s cu e t expectatio s co ce i g futu e eve ts a d a e subject to isks a d u ce tai ties, such as the effective ess of Awa e’s busi ess st ategy, pipeli e a d custome co ve sio , gove me t fu di g a d p ocu eme t, costs savi gs, ope ati g expe ses, eve ue mix, fi a cial outlook a d the g owth of the biomet ics ma kets, i cludi g the possibility that gove me t selectio s, comme cial elatio ships a d sales oppo tu ities may ot esult i a ticipated deployme ts o eve ue, a d that expected cost savi gs may ot be fully ealized o sustai ed. Awa e wishes to cautio you that the e a e facto s that could cause actual esults to diffe mate ially f om the esults i dicated by such stateme ts. Awa e u de takes o obligatio to publicly update o evise a y fo wa d-looki g stateme ts, whethe as a esult of ew i fo matio , futu e eve ts o othe wise. The eade is cautio ed ot to u duly ely o fo wa d-looki g stateme ts whe evaluati g the i fo matio p ese ted i this elease.
Risk facto s elated to ou busi ess i clude, but a e ot limited to: i) the cha ges we a e impleme ti g i ou busi ess to d ive g owth i ou busi ess may ot be successful o the timeli e we expect, o at all; ii) ou ope ati g esults may fluctuate sig ifica tly a d a e difficult to p edict; iii) we de ive a sig ifica t po tio of ou eve ue f om gove me t custome s, a d ou busi ess may be adve sely affected by cha ges i the co t acti g o fiscal policies of those gove me tal e tities; iv) a sig ifica t comme cial ma ket fo biomet ics tech ology may ot develop, a d if it does, we may ot be successful i that ma ket; v) we de ive a sig ifica t po tio of ou eve ue f om thi d pa ty cha el pa t e s; vi) the biomet ics ma ket may ot expe ie ce sig ifica t g owth o ou p oducts may ot achieve b oad accepta ce; vii) we face i te se competitio f om othe biomet ics solutio p ovide s; viii) ou busi ess is subject to apid tech ological cha ge; ix) ou softwa e p oducts may have e o s, defects o bugs which could ha m ou busi ess; x) ou busi ess may be adve sely affected by ou use of ope sou ce softwa e; xi) we ely o thi d pa ty softwa e to develop a d p ovide ou solutio s a d sig ifica t defects i thi d pa ty softwa e could ha m ou busi ess; xii) pa t of ou futu e busi ess is depe de t o ma ket dema d fo , a d accepta ce of, the cloud-based model fo the use of softwa e; xiii) ou ope atio al systems a d etwo ks a d p oducts may be subject to a i c easi g isk of co ti ually evolvi g cybe secu ity o othe tech ological isks which could esult i the disclosu e of compa y o custome co fide tial i fo matio , damage to ou eputatio , additio al costs, egulato y pe alties a d fi a cial losses; xiv) ou i tellectual p ope ty is subject to limited p otectio ; xv) we may be sued by thi d pa ties fo alleged i f i geme t of thei p op ieta y ights; xvi) we must att act a d etai key pe so el; xvii) ou busi ess may be affected by gove me t egulatio s, gove me t cost cutti g i itiatives a d adve se eco omic co ditio s; xviii) we may make acquisitio s that could adve sely affect ou esults; xix) we may have additio al tax liabilities.
We efe you to the docume ts Awa e files f om time to time with the Secu ities a d Excha ge Commissio , specifically the sectio titled Risk Facto s i ou a ual epo t o Fo m 10-K fo the fiscal yea e ded Decembe 31, 2025 a d othe epo ts a d fili gs made with the Secu ities a d Excha ge Commissio .
| Reve ue: | Softwa e lice ses | $ | 1,938 | $ | 2,525 | $ | 3,923 | $ | 5,261 | Softwa e mai te a ce | 2,105 | 2,199 | 6,171 | 6,451 | Se vices a d othe | 374 | 405 | 964 | 918 | Total eve ue | 4,417 | 5,129 | 11,058 | 12,630 | Costs a d expe ses: | Cost of eve ue | 439 | 419 | 1,294 | 858 | Resea ch a d developme t | 2,296 | 2,131 | 8,051 | 6,013 | Selli g a d ma keti g | 1,148 | 2,103 | 4,357 | 5,730 | Ge e al a d admi ist ative | 1,474 | 1,771 | 4,686 | 5,136 | Total costs a d expe ses | 5,357 | 6,424 | 18,388 | 17,737 | Ope ati g loss | (940 | ) | (1,295 | ) | (7,330 | ) | (5,107 | ) | I te est i come | 155 | 247 | 531 | 726 | Loss befo e p ovisio fo i come taxes | (785 | ) | (1,048 | ) | (6,799 | ) | (4,381 | ) | P ovisio fo i come taxes | 6 | 5 | 15 | 39 | Net loss | $ | (791 | ) | $ | (1,053 | ) | $ | (6,814 | ) | $ | (4,420 | ) | Othe comp ehe sive loss i come, et of tax: | U ealized loss o available-fo -sale secu ities | (60 | ) | (110 | ) | (168 | ) | (63 | ) | Comp ehe sive loss | $ | (851 | ) | $ | (1,163 | ) | $ | (6,982 | ) | $ | (4,483 | ) | Net loss pe sha e – basic | $ | (0.04 | ) | $ | (0.05 | ) | $ | (0.31 | ) | $ | (0.21 | ) | Net loss pe sha e – diluted | $ | (0.04 | ) | $ | (0.05 | ) | $ | (0.31 | ) | $ | (0.21 | ) | Weighted-ave age sha es – basic | 21,726 | 21,202 | 21,677 | 21,188 | Weighted-ave age sha es – diluted | 21,726 | 21,202 | 21,677 | 21,188 |
P io -pe iod amou ts have bee eclassified to co fo m to the cu e t pe iod p ese tatio
| Cash a d cash equivale ts | $ | 2,428 | $ | 7,269 | Ma ketable secu ities | 12,947 | 15,026 | Accou ts a d u billed eceivables, et | 5,866 | 4,358 | P ope ty a d equipme t, et | 326 | 477 | Goodwill a d i ta gible assets, et | 4,422 | 4,689 | Right of use assets | 3,380 | 3,642 | All othe assets, et | 1,407 | 1,734 | Total assets | $ | 30,776 | $ | 37,195 | Accou ts payable a d acc ued expe ses | $ | 1,996 | $ | 1,975 | Defe ed eve ue | 5,006 | 5,115 | Ope ati g lease liability | 3,729 | 3,968 | Total stockholde s’ equity | 20,045 | 26,137 | Total liabilities a d stockholde s’ equity | $ | 30,776 | $ | 37,195 |
We defi e adjusted EBITDA as U.S. GAAP et loss plus dep eciatio of fixed assets a d amo tizatio of i ta gible assets, stock-based compe satio expe ses, i te est i come, a d i come tax p ovisio . We discuss adjusted EBITDA i ou qua te ly ea i gs eleases a d ce tai othe commu icatio s, as we believe adjusted EBITDA is a impo ta t measu e. We use adjusted EBITDA i i te al fo ecasts a d models whe establishi g i te al ope ati g budgets, suppleme ti g the fi a cial esults a d fo ecasts epo ted to ou Boa d of Di ecto s, a d evaluati g sho t-te m a d lo g-te m ope ati g t e ds i ou ope atio s. We believe that the adjusted EBITDA fi a cial measu e assists i p ovidi g a e ha ced u de sta di g of ou u de lyi g ope atio al measu es to ma age the busi ess, to evaluate pe fo ma ce compa ed to p io pe iods a d the ma ketplace, a d to establish ope atio al goals. We believe that the adjusted EBITDA adjustme ts a e useful to i vesto s because they allow i vesto s to evaluate the effective ess of the methodology a d i fo matio used by ma ageme t i ou fi a cial a d ope atio al decisio -maki g.
We defi e ecu i g eve ue as the po tio of Awa e eve ue that is based o a te m a a geme t a d is likely to co ti ue i the futu e, such as a ual mai te a ce o subsc iptio co t acts. We use ecu i g eve ue as a met ic to commu icate the po tio of ou eve ue that has g eate stability a d p edictability. We believe that ecu i g eve ue assists i p ovidi g a e ha ced u de sta di g of the effective ess of ou effo ts to t a sitio to a subsc iptio -based busi ess model.
Adjusted EBITDA a d ecu i g eve ue a e o -GAAP fi a cial measu es a d should ot be co side ed i isolatio o as a substitute fo fi a cial i fo matio p ovided i acco da ce with U.S. GAAP. These o -GAAP fi a cial measu es may ot be computed i the same ma e as simila ly titled measu es used by othe compa ies. We expect to co ti ue to i cu expe ses simila to the fi a cial adjustme ts desc ibed above i a ivi g at adjusted EBITDA a d i vesto s should ot i fe f om ou p ese tatio of this o -GAAP fi a cial measu e that these costs a e u usual, i f eque t o o – ecu i g. The followi g table i cludes the eco ciliatio s of ou U.S. GAAP et loss, the most di ectly compa able U.S. GAAP fi a cial measu e, to ou adjusted EBITDA fo the th ee a d i e mo ths e ded Septembe 30, 2026 a d 2025 a d ou U.S. GAAP eve ue, the most di ectly compa able U.S. GAAP fi a cial measu e, to ou ecu i g eve ue fo the th ee a d i e mo ths e ded Septembe 30, 2026 a d 2025.
| Net loss | $ | (791 | ) | $ | (1,053 | ) | $ | (6,814 | ) | $ | (4,420 | ) | Dep eciatio a d amo tizatio | 139 | 143 | 418 | 431 | Stock based compe satio | 253 | 342 | 843 | 904 | I te est i come | (155 | ) | (247 | ) | (531 | ) | (726 | ) | P ovisio fo i come taxes | 6 | 5 | 15 | 39 | Adjusted EBITDA loss | $ | (548 | ) | $ | (810 | ) | $ | (6,069 | ) | $ | (3,772 | ) |
| Recu i g eve ue: | Softwa e subsc iptio s | $ | 1,777 | $ | 1,182 | $ | 3,051 | $ | 2,458 | Softwa e mai te a ce | 2,105 | 2,199 | 6,171 | 6,451 | Se vices a d othe | 125 | 174 | 403 | 272 | Total ecu i g eve ue | 4,007 | 3,555 | 9,625 | 9,181 | No – ecu i g eve ue: | Softwa e lice ses | 161 | 1,343 | 872 | 2,803 | Se vices a d othe | 249 | 231 | 561 | 646 | Total o – ecu i g eve ue | 410 | 1,574 | 1,433 | 3,449 | Total eve ue | $ | 4,417 | $ | 5,129 | $ | 11,058 | $ | 12,630 |
P io -pe iod amou ts have bee eclassified to co fo m to the cu e t pe iod p ese tatio .
Awa e is a egiste ed t adema k of Awa e, I c.
