Aware Q4 Revenues Slide 2.8% to $4.7M as License Revenue Drops 18.3%
Aware’s Q4 revenues fell 2.8% year over year to $4.7 million while net loss widened to $1.5 million, or $0.07 per share, compared with a $1.2 million loss in Q4 2024. Recurring revenue rose 4.7% to $3.5 million, offsetting an 18.3% drop in license sales as R&D spending climbed 7%.
1. Q4 Financial Results
Aware reported fourth-quarter revenue of $4.7 million, down 2.8% year over year, and a net loss of $1.5 million, or $0.07 per share, compared with a $1.2 million loss, or $0.06 per share, in Q4 2024. Operating expenses decreased 2.5% to $6.1 million from $6.3 million.
2. Revenue Mix Shifts
Perpetual software license revenue declined 18.3% to $2.1 million, while maintenance revenue rose 7.4% to $2.3 million and services revenue jumped 96.6% to $0.3 million. Recurring revenue grew 4.7% to $3.5 million, offsetting a 19.3% drop in non-recurring revenue to $1.2 million.
3. Investments and EBITDA
Research and development spending increased 7% to $8.3 million for the full year as the company bolstered engineering headcount and product innovation. Adjusted EBITDA loss remained steady at $0.8 million for the quarter, widening full-year adjusted EBITDA loss to $4.6 million from $3.9 million.
4. Outlook and Strategic Focus
Management expects uneven quarterly results due to lengthy federal procurement cycles but plans to convert pilot programs into production deployments. The company is advancing next-generation biometric features like Intelligent Liveness and expanding government and enterprise deployments.