Aware, Inc. (NASDAQ: AWRE) reported financial results for the third quarter ended September 30, 2026. The company reported total revenue of $4.4 million for the quarter, a decrease from $5.1 million in the prior-year period. Recurring revenue, which includes software licenses, maintenance, and usage-based arrangements, was approximately $4.0 million, up from approximately $3.6 million in the third quarter of 2025.
Operating expenses for the quarter were $5.4 million, a decrease from $6.4 million in the prior year. The company stated that these reductions reflect cost-reduction actions implemented earlier in 2026, which are expected to generate approximately $4.0 million in annualized savings. As a result, the operating loss for the quarter was approximately $0.9 million, compared with an operating loss of approximately $1.3 million in the prior year.
Net loss for the quarter was $0.8 million, or $0.04 per diluted share, compared with a net loss of $1.1 million, or $0.05 per diluted share, in the prior year. Adjusted EBITDA loss was $0.5 million, compared with $0.8 million in the prior year.
For the nine months ended September 30, 2026, total revenue was $11.1 million, compared with $12.6 million in the prior year. Recurring revenue for the nine-month period was approximately $9.6 million, compared with approximately $9.2 million in the prior year. The company reported a net loss of $6.8 million, or $0.31 per diluted share, for the nine-month period, compared with a net loss of $4.4 million, or $0.21 per diluted share, in the prior year.
At the end of the third quarter, Aware reported approximately $15.4 million in cash, cash equivalents, and marketable securities, with no debt.
Operational highlights for the quarter included a new government agency customer deploying Intelligent Liveness capabilities from the Awareness Platform and a new commercial relationship with a distributor for Adobe Acrobat Sign, with activity in Latin America.
