Aware, Inc. Reports 18.4% Revenue Decline and Leadership Change in Q1 2025

Aware, Inc. reported its financial results for the first quarter of 2025, revealing a total revenue of $3.6 million, a decline of 18.4% from $4.4 million in the same period last year. The decrease in revenue was primarily attributed to a significant drop in software license sales, which fell by 39% to $1.3 million, down from $2.1 million in the prior year. Software maintenance revenue remained stable at $2.2 million, while services and other revenue accounted for $0.1 million, unchanged from the previous year. The company recorded a net loss of $1.6 million, compared to a loss of $1.0 million in the first quarter of 2024.

In terms of operational changes, Aware, Inc. underwent a leadership transition with the appointment of Ajay Amlani as the new Chief Executive Officer on February 3, 2025, following the resignation of Robert Eckel. This change in leadership is part of the company's strategy to enhance its focus on both government and emerging commercial biometrics markets. The company also reported a reduction in operating expenses, which decreased by $0.2 million due to temporary cost reductions related to a reduced headcount.

The company’s total assets as of March 31, 2025, were $39.9 million, down from $42.6 million at the end of 2024. Cash and cash equivalents decreased to $8.5 million from $13.0 million, while marketable securities increased to $16.4 million from $14.8 million. Aware, Inc. had 21,091,531 shares of common stock outstanding as of April 28, 2025. The company’s stockholders’ equity also declined to $29.5 million from $30.9 million at the end of the previous fiscal year.

Looking ahead, Aware, Inc. anticipates continued fluctuations in software license revenue due to the timing of customer projects. The company plans to invest in strategic product development initiatives, which may lead to increased engineering expenses in the latter part of 2025. Aware, Inc. also expects to enhance its sales and marketing efforts to capitalize on market opportunities, particularly in the commercial biometrics sector. The company believes its current cash and cash equivalents will be sufficient to fund operations for at least the next twelve months, although it may seek additional financing depending on future growth and operational needs.