Aware, Inc. filed its Form 10-Q for the quarterly period ended September 30, 2026 with the U.S. Securities and Exchange Commission on October 30, 2026, reporting a net loss of $791 thousand for the third quarter and $6.814 million for the nine months year-to-date.

Key Highlights

  • Third-quarter total revenue: $4.417 million, down from $5.129 million in the same quarter of 2025, according to the filing.
  • Nine-month net loss: $6.814 million for the nine months ended September 30, 2026, compared with a net loss of $4.420 million for the same period in 2025.
  • Cash and cash equivalents: Declined to $2.428 million as of September 30, 2026, from $7.269 million at December 31, 2025.
  • Total stockholders' equity: Decreased to $20.045 million at September 30, 2026, from $26.137 million at December 31, 2025.
  • Net cash used in operating activities: $6.872 million for the nine months ended September 30, 2026, compared with $6.444 million in the prior-year period.
  • Shares outstanding: 21,871,737 as of October 27, 2026, per the filing's cover page.

Aware's Financial Position and Operating Results Through September 30, 2026

According to the filing, Aware, Inc. (NASDAQ:AWRE) reported total revenue of $4.417 million for the three months ended September 30, 2026, compared with $5.129 million in the corresponding prior-year quarter. Revenue components for the third quarter included software licenses of $1.938 million, software maintenance of $2.105 million, and services and other of $374 thousand. For the nine months ended September 30, 2026, total revenue was $11.058 million, down from $12.630 million in the same nine-month period of 2025.

The company disclosed total costs and expenses of $5.357 million for the third quarter of 2026, resulting in an operating loss of $940 thousand, compared with an operating loss of $1.295 million in the third quarter of 2025. For the nine-month period, total costs and expenses were $18.388 million against revenues of $11.058 million, producing an operating loss of $7.330 million, wider than the $5.107 million operating loss in the comparable prior-year period. Research and development expense rose to $8.051 million for the nine months ended September 30, 2026, from $6.013 million in the prior-year nine-month period, while selling and marketing expense declined to $4.357 million from $5.730 million over the same comparison.

The consolidated balance sheet as of September 30, 2026 showed total assets of $30.776 million, down from $37.195 million at December 31, 2025. Marketable securities stood at $12.947 million, and accounts receivable, net, were $4.357 million. The accumulated deficit widened to $82.630 million from $75.816 million at year-end 2025. Net cash used in operating activities for the nine months was $6.872 million, while investing activities provided $1.984 million, primarily from net sales of marketable securities. The filing reported cash and cash equivalents of $2.428 million at the end of the period.

What Was Disclosed

Aware, Inc. disclosed its unaudited consolidated financial statements for the quarter and nine months ended September 30, 2026, showing declining revenues, widening year-to-date losses, reduced cash balances, and a smaller stockholders' equity position compared with December 31, 2025.