Company: AWRE
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0000950170-25-101395
Chunk: 20

Company: AWARE INC /MA/
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 8
Chunk 20
---
1.3 million for the three months ended June 30, 2024.  The decrease in revenue and operating loss in the current three month period was primarily due to a $0.4 million decrease in software license revenue and an increase by $0.2 million in operating expenses resulting from additional headcount hired in the first half of 2025.Revenue and operating loss for the six months ended June 30, 2025 were $7.5 million and $3.8 million, respectively.  These results compared to revenue of $8.7 million and operating loss of $2.6 million for the six months ended June 30, 2024.  The decrease in revenue and operating loss in the current six month period was primarily due to a $1.2 million decrease in software license revenue.  These and all other financial results are discussed in more detail in the results of operations section that follows.	

16

Results of OperationsSoftware licenses. Software licenses consist of revenue from the sale of biometrics and imaging software products. Sales of software products depend on our ability to win proposals to supply software for biometrics systems projects either directly to end user customers or indirectly through channel partners.Software license revenue decreased 22% from $1.8 million in the three months ended June 30, 2024 to $1.4 million for the three months ended June 30, 2025.  As a percentage of total revenue, software license revenue decreased from 42% in the second quarter of 2024 to 36% in the current year quarter.  The $0.4 million decrease in software license revenue was due primarily to a decrease in perpetual licenses sales due to fewer one-time license deals in the current quarter.   Software license revenue decreased 31% from $4.0 million in the six months ended June 30, 2024 to $2.7 million for the six months ended June 30, 2025.  As a percentage of total revenue, software license revenue decreased from 45% in the six months ended June 30, 2024 to 36% in the six months ended June 30, 2025.  The $1.2 million decrease in software license revenue was due primarily to a decrease in perpetual licenses sales of $0.8 million due to fewer one-time license deals in the current quarter and a $0.4 million decrease in license revenue related to subscription contracts as a result of timing of renewal of licenses.