Aware, Inc.

good afternoon and welcome to aware's third quarter 2025 conference call joining us today are the company's ceo and president aj mlani cfo david traverse and cro brian kraus following the remarks we open the call to questions if you'd like to submit a question you can do so at any time using the built-in ask a question feature in the webcast player before we begin today's call i'd like to remind everyone that the presentation today contains forward-looking statements that are based on the current expectations of awares 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 four linking 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 those 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 poor-looking statements should be considered in light of these factors. Your caution not to place undue reliance on any poor-looking statements which speak only as of the date made. Although it may voluntarily do so from time to time, AWARE undertakes no commitment to update or revise the poor-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable securities laws. Additionally, this call contains certain non-GAAP financial measures, as the term is defined by the SEC in Regulation G. Non-GAAP financial measures should be considered an isolation from or a substitute for financial information presented in compliance with GAAP. Accordingly, AWARE has provided a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures in the company's earnings release issued today. I would like to remind everyone that this presentation will be recorded and made available for replay via link available in the investor relations section of the company's website. Now I'd like to turn the call over to AWARE CEO and President, A.J. Amlani. A.J.? ?

Thank you, Matt, and good afternoon, everyone. Q3 reflects disciplined execution and continued progress in AWARE's transformation strategy. This quarter, we delivered 33% year-over-year revenue growth while improving our bottom line. We recognize there's still important work ahead to build consistency and scale, and we expect near-term quarterly results may vary based on timing of customer decisions and license mix. These results reinforce our three-pronged transformation, which centers on, first, advancing core biometric technology with a focus on liveness and the awareness platform. Second, strengthening our science-forward, customer-obsessed, go-to-market model. And third, deepening strategic relationships and partnerships and certifications that build trust and scale. Before diving into Q3 highlights, Let me set some market context. As I shared at the Gateway Conference in September, customer perceptions around biometrics have fundamentally shifted. Everyday use of Face ID and biometric travel checkpoints has made biometrics both familiar and expected. In the age of AI, it's not only getting harder to prove identity, individuals must also prove they are human in real time against increasingly sophisticated spoofing attempts. This elevates liveness detection from a nice-to-have into a critical control for fraud prevention and trust. Against this backdrop, our strategy is to meet customers where risk is rising most, delivering adaptive liveness, interoperable matching, and a platform architecture that allows enterprises and agencies interoperable orchestration without vendor lock-in. Aware isn't just selling technology. We're delivering solutions that help customers maintain uptime while solving their most pressing trust and safety challenges. Aware is a US-based company with three decades of biometric innovation and a blue-chip customer base across government and enterprise. That foundation of trust matters as buyers raise the bar on security, privacy, and interoperability. and as governments increasingly emphasize domestic providers for critical identity infrastructure. On the government side, we see tailwinds from broader funding for biometric modernization within DHS agencies, coupled with a strong bi-American orientation. Having helped launch some of the earliest biometric programs at DHS, I've seen firsthand how federal adoption sets global standards And Aware is uniquely positioned to lead as a U.S.-based science-led provider. On the commercial side, enterprises are moving to anchor digital identity on a biometric backbone with strong privacy controls, replacing fragile combinations of passwords and device trust with biometric proof of presence and proof of person. Our platform is designed for choice. speed to value, and standards alignment, a differentiator that customers and partners increasingly value. Our awareness platform integrates matching engines, adaptive liveness, and anti-spoofing, and interoperability layers to deliver flexibility at scale. Earlier this year, our passive liveness achieved best-in-class performance in the Department of Homeland Security Remote Identity Validation Benchmarks, providing clear third party validation that we're solving real world identity fraud with less friction. In October, our face verification stack combining advanced liveness with facial matching earned Fido Alliance certification. This is one of the most rigorous global benchmarks in biometric security. It not only validates our approach, but also reduces compliance friction in enterprise procurements and accelerates integrations with major partners and identity ecosystems. It also complements our roadmap to build additional certifications that customers expect. Over the past several quarters, we've upgraded leadership across revenue, marketing, and product, aligning the organization to scale with discipline. We are focused on prioritizing large, durable opportunities in federal and the enterprise market that can translate into multi-year recurring revenue and product leverage. With this team in place, we are executing across two core markets. First, government, building a direct presence with agencies, aligning to Buy American requirements and modernization initiatives across the Department of Homeland Security, the Department of War, and many other related programs and departments. where liveness and interoperability are central. Growing demand for mobile identity and modernization of legacy systems plays directly to our ABUS and mobile capture strengths. Second, commercial enterprises. Companies are adopting biometric anchored journeys for both workforce and customer use cases, emphasizing privacy, standards, and interoperability all well aligned with our awareness platform and aware SDK. Our strategy is translating into both top line momentum and greater operating discipline. I'll now hand it over to David to review our third quarter financial performance in more detail. Over to you, David.

Thank you, AJ. I'll now walk through our third quarter financial results. Revenue in the third quarter is 5.1 million, an increase of 33% year over year. The increase was primarily driven by a $1 million perpetual license expansion sale with an existing customer and a $600,000 new term license contract, partially offset by typical fluctuations in perpetual license and lower services and other revenue. Operating expenses for the quarter were $6.4 million compared to $5.4 million in the prior year quarter. The increase reflects targeted investments in sales, marketing, and product development as we execute our go-to-market strategy. Looking ahead, we do expect an increase in our operating expenses in the fourth quarter, reflecting the full quarter impact of the investments made during the third quarter to support our growth strategy. Net loss for the quarter is $1.1 million, or $0.05 per diluted share. An improvement compared to a net loss of $1.2 million, or $0.06 per diluted share, in the prior year quarter. Adjusted EBITDA loss was $800,000, and an improvement compared to a loss of $1.1 million in the prior year quarter. Turning to our results for the first nine months of 2025, revenue was $12.6 million, similar to last year. Net loss was $4.4 million, or 21 cents per diluted share, compared to a net loss of $3.2 million, or 15 cents per diluted share in the same period last year. Adjusted EBITDA loss year-to-date was $3.8 million, compared to an adjusted EBITDA loss of $3 million in the prior year period. We ended the quarter with $22.5 million in cash, cash equivalents, and marketable securities, and no debt. The change primarily reflects the operating loss for the period, as well as normal fluctuations in working capital, including a timing of accounts receivable collections. Our balance sheet provides us with flexibility to continue investing and growth while maintaining a disciplined approach to expenses. Our Q3 results reflect progress towards sustainable growth. We are executing with discipline, scaling revenue, and positioning the company for operating leverage as our top line continues to expand. With that, I'll hand it over to Brian to provide more color on our product, customers, and go-to-market progress.