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AWRE Stock Analysis - AWARE INC /MA/ AI Rating

AWRE Nasdaq Services-Prepackaged Software MA CIK: 0001015739
Recently Updated • Analysis: Mar 20, 2026 • SEC Data: 2025-12-31
AI Rating
STRONG SELL
92% Confidence

📊 AWRE Key Takeaways

Revenue: $17.3M
Net Margin: -34.0%
Free Cash Flow: $-5.6M
Current Ratio: 3.77x
Debt/Equity: 0.00x
EPS: $-0.28
AI Rating: STRONG SELL with 92% confidence

Investment Thesis

Aware Inc demonstrates severe operational distress with negative operating income of -6.6M on only 17.3M in revenue, resulting in a -37.9% operating margin and deteriorating profitability. The company is burning cash with negative operating cash flow of -5.4M annually and negative free cash flow, unsustainable without material business restructuring or revenue acceleration.

AWRE Strengths

  • + Strong liquidity position with current ratio of 3.77x and 7.3M in cash providing runway
  • + Zero long-term debt indicating no leverage risk or debt servicing burden
  • + Stable revenue base with only -0.6% YoY decline despite profitability challenges

AWRE Risks

  • ! Persistent operating losses with -37.9% operating margin indicating fundamental business model dysfunction
  • ! Negative cash flow generation of -5.4M operating cash flow annually with no clear path to profitability
  • ! Deteriorating net income down 32.5% YoY with negative ROE of -22.5% and ROA of -15.8% destroying shareholder value
  • ! Limited cash runway of approximately 1.3 years at current burn rate despite adequate liquidity

Key Metrics to Watch

AWRE Financial Metrics

Revenue
$17.3M
Net Income
$-5.9M
EPS (Diluted)
$-0.28
Free Cash Flow
$-5.6M
Total Assets
$37.2M
Cash Position
$7.3M

💡 AI Analyst Insight

Strong liquidity with a 3.77x current ratio provides a solid financial cushion.

AWRE Profitability Ratios

Gross Margin N/A
Operating Margin -37.9%
Net Margin -34.0%
ROE -22.5%
ROA -15.8%
FCF Margin -32.2%

AWRE vs Technology Sector

How AWARE INC /MA/ compares to Technology sector averages

Net Margin
AWRE -34.0%
vs
Sector Avg 18.0%
AWRE Sector
ROE
AWRE -22.5%
vs
Sector Avg 22.0%
AWRE Sector
Current Ratio
AWRE 3.8x
vs
Sector Avg 2.5x
AWRE Sector
Debt/Equity
AWRE 0.0x
vs
Sector Avg 0.5x
AWRE Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

AWRE Balance Sheet & Liquidity

Current Ratio
3.77x
Quick Ratio
3.68x
Debt/Equity
0.00x
Debt/Assets
0.0%
Interest Coverage
N/A
Long-term Debt
N/A

AWRE 5-Year Financial Trend

AWRE 5-year financial data: Year 2021: Revenue $16.9M, Net Income -$7.6M, EPS $-0.35. Year 2022: Revenue $16.9M, Net Income -$5.8M, EPS $-0.27. Year 2023: Revenue $18.2M, Net Income -$1.7M, EPS $-0.08. Year 2024: Revenue $18.2M, Net Income -$7.3M, EPS $-0.35. Year 2025: Revenue $17.4M, Net Income -$4.4M, EPS $-0.21.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: AWARE INC /MA/'s revenue has shown modest growth of 3% over the 5-year period. The most recent EPS of $-0.21 indicates the company is currently unprofitable.

AWRE Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-32.2%
Free cash flow / Revenue

AWRE Quarterly Performance

Quarterly financial performance data for AWARE INC /MA/ including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $3.8M -$982.0K $-0.05
Q2 2025 $3.9M -$982.0K $-0.05
Q1 2025 $3.6M -$982.0K $-0.05
Q3 2024 $3.8M -$982.0K $0.05
Q2 2024 $3.2M -$982.0K $-0.05
Q1 2024 $4.3M -$982.0K $-0.05
Q3 2023 $3.0M $31.0K $0.00
Q2 2023 $3.2M -$1.3M $-0.06

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

AWRE Capital Allocation

Operating Cash Flow
-$5.4M
Cash generated from operations
Stock Buybacks
$115.0K
Shares repurchased (TTM)
Capital Expenditures
$165.0K
Investment in assets
Dividends
None
No dividend program

AWRE SEC Filings

Access official SEC EDGAR filings for AWARE INC /MA/ (CIK: 0001015739)

📋 Recent SEC Filings

Date Form Document Action
Mar 17, 2026 4 xslF345X05/ownership.xml View →
Mar 17, 2026 4 xslF345X05/ownership.xml View →
Mar 12, 2026 8-K awre-20260310.htm View →
Mar 6, 2026 10-K awre-20251231.htm View →
Mar 4, 2026 8-K awre-20251231.htm View →

Frequently Asked Questions about AWRE

What is the AI rating for AWRE?

AWARE INC /MA/ (AWRE) has an AI rating of STRONG SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.

What are AWRE's key strengths?

Strong liquidity position with current ratio of 3.77x and 7.3M in cash providing runway. Zero long-term debt indicating no leverage risk or debt servicing burden.

What are the risks of investing in AWRE?

Persistent operating losses with -37.9% operating margin indicating fundamental business model dysfunction. Negative cash flow generation of -5.4M operating cash flow annually with no clear path to profitability.

What is AWRE's revenue and growth?

AWARE INC /MA/ reported revenue of $17.3M.

Does AWRE pay dividends?

AWARE INC /MA/ does not currently pay dividends.

Where can I find AWRE SEC filings?

Official SEC filings for AWARE INC /MA/ (CIK: 0001015739) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is AWRE's EPS?

AWARE INC /MA/ has a diluted EPS of $-0.28.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 20, 2026 | Data as of: 2025-12-31 | Powered by Claude AI