Q2 2026 Aware Inc Earnings Call Transcript
Key Points
- Aware Inc (AWRE) is making significant updates to the Awareness Platform, a SaaS-based biometric orchestration and decisioning platform, to help organizations make smarter identity decisions in real time.
- The company welcomed two new integrated technology partners, Rock and Mitek, to the Awareness Platform, expanding its capabilities and strengthening its ecosystem.
- Aware Inc (AWRE) advanced its intelligent liveness capabilities to combat sophisticated AI-driven fraud, such as deepfakes and injection attacks, with a passive user experience that operates in under 2 seconds.
- The company announced advancements in its matching algorithm, delivering approximately 10x lower false non-match rate and enabling sub-second one-to-end matching across large biometric data sets.
- Aware Inc (AWRE) is seeing renewed activity in the federal government market, particularly in homeland security, border modernization, and traveler processing, with increased RFIs and procurement activity since DHS operations normalized in May.
- Revenue for the second quarter was $3.3 million, below expectations and down from $3.9 million in the prior year period, impacted by timing of stand-alone product business and slower federal procurement due to the government shutdown.
- Operating expenses increased to $6 million in Q2 2026 compared to $5.9 million in the prior year quarter, including costs from hires made in 2025 and $700,000 in one-time severance costs.
- Net loss widened to $2.6 million or $0.12 per diluted share in Q2 2026, compared to $2 million or $0.08 per diluted share in the prior year period.
- Adjusted EBITDA loss increased to $2.3 million in Q2 2026 from $1.4 million in the prior year period, reflecting higher operating expenses.
- The company is in the middle of a transformation from a fragmented product portfolio to a focused platform strategy, which creates near-term variability and uncertainty in revenue timing and performance.
Good afternoon, and welcome to Aware's second-quarter fY26 conference call. Joining us today are the company's CEO and President, A.J. Amlani; and CFO, David Traverse.
(Operator Instructions)
Before we begin today's call, I would like to remind everyone that the presentation today contains forward-looking statements that are based on current expectations of Aware's management and involve inherent risks and uncertainties that could cause actual results to differ materially from those described. Listeners should please take note of the safe harbor paragraph that is included at the end of today's press release. This paragraph emphasizes the major uncertainties and risks inherent in forward-looking statements that management will be making today. Aware wishes to caution you that there are factors that could cause actual results to differ materially from the results indicated by such statements.
These risks and uncertainties are also outlined in the company's SEC filings, including its annual report on Form 10-K and quarterly reports on Form 10-Q. Any forward-looking statements
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