Q2 2026 Aware Inc Earnings Call

July 29, 2026

Speaker #1: Joining us today are the company CEO and president, Ajay Amlani, and CFO, David Traverse. Following their remarks, we will open the call to questions.

Speaker #1: If you would like to submit a question, you can do so at any time using the built-in Ask a Question feature in the webcast player.

Speaker #1: Before we begin today's call, I would like to remind everyone that the presentation today contains forward-looking statements that are based off current expectations of awareness management and involve inherent risks and uncertainties that could cause actual results to differ materially from those described.

Speaker #1: 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 risk inherent in forward-looking statements that management will be making today.

Speaker #1: Aware wishes to caution you that there are factors that could cause actual results to differ materially from the 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 should be considered in light of these factors.

Speaker #1: You are cautioned not to place undue reliance upon any forward-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 forward-looking statements whether as a result of new information, future events, or otherwise, except as required by applicable securities laws.

Speaker #1: Additionally, this call contains certain non-GAAP financial measures as that term is defined by the SEC in Regulation G. Non-GAAP financial measures should not be considered in isolation from or as a substitute for financial information presented in compliance with GAAP.

Speaker #1: 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.

Speaker #1: I would like to remind everyone that this presentation will be recorded and made available for replay via a link available in the investor relations section of the company's website.

Speaker #1: Now, I would like to turn the call over to Aware's CEO and president, Ajay Amlani. Ajay?

Speaker #2: Thank you, Delaney. And good afternoon, everyone. I want to begin with revenue for the quarter was $3.3 million compared with $3.9 million in the prior year period, a result that was below our expectations.

Speaker #2: Quarterly performance was affected by the timing and variability of our standalone product business. As well as the slower federal procurement activity related to the government shutdown.

Speaker #2: While the precise impact of the shutdown is difficult to quantify, it created a meaningful headwind during the quarter. The rapid advancement of AI is reinforcing the importance of the market we serve, as deepfakes, synthetic identities, injection attacks, and other AI-enabled threats become more sophisticated, identity is becoming critical infrastructure for government and enterprise organizations.

Speaker #2: That is why we are focused so deliberately on the awareness platform. We believe the platform directly addresses this tailwind, and where the market is headed by bringing biometric orchestration, decisioning, liveness detection, matching, and partner technologies together in one unified environment.

Speaker #2: We expect the second half of the year to follow our typical seasonal pattern, with revenue weighted more heavily toward the back half of the year compared to the first half of the year.

Speaker #2: The quarter reinforces the importance of the work we are doing to sharpen our focus, align our resources, and build a more scalable business around the areas where we believe aware can be most competitive.

Ajay Amlani: platform directly addresses this tailwind and where the market is headed by bringing biometric orchestration, decisioning, liveness detection, matching, and partner technologies together in one unified environment. We expect H2 to follow our typical seasonal pattern, with revenue weighted more heavily toward the back half of the year compared to H1. The quarter reinforces the importance of the work we are doing to sharpen our focus, align our resources, and build a more scalable business around the areas where we believe Aware can be most competitive. As we discussed last quarter, we are in the middle of an important transformation. We are moving away from a more fragmented product portfolio and focusing the company on the Awareness Platform, our SaaS-based biometric orchestration and decisioning platform. That transition takes time.

Ajay Amlani: Platform directly addresses this tailwind and where the market is headed by bringing biometric orchestration, decisioning, liveness detection, matching, and partner technologies together in one unified environment. We expect H2 to follow our typical seasonal pattern, with revenue weighted more heavily toward the back half of the year compared to H1.

Speaker #1: One directly addresses this tailwind, and where the market is headed by bringing biometric orchestration, decisioning, liveness detection, matching, and partner technologies together in one unified environment.

Speaker #2: As we discussed last quarter, we are in the middle of an important transformation. We are moving away from a more fragmented product portfolio and focusing the company on the awareness platform, our SaaS-based biometric orchestration and decisioning platform.

Speaker #1: We expect the second half of the year to follow our typical seasonal pattern, with revenue-weighted more heavily toward the back half of the year compared to the first half of the year.

Speaker #1: The quarter reinforces the importance of the work we are doing to sharpen our focus, align our resources, and build a more scalable business around the areas where we believe Aware can be most competitive.

Ajay Amlani: The quarter reinforces the importance of the work we are doing to sharpen our focus, align our resources, and build a more scalable business around the areas where we believe Aware can be most competitive. As we discussed last quarter, we are in the middle of an important transformation. We are moving away from a more fragmented product portfolio and focusing the company on the Awareness Platform, our SaaS-based biometric orchestration and decisioning platform. That transition takes time.

Speaker #2: That transition takes time. It also creates near-term variability as we continue to support existing customers, pursue near-term opportunities, and invest in the platform capabilities we believe will define the next phase of growth for aware.

Speaker #1: As we discussed last quarter, we are in the middle of an important transformation. We are moving away from a more fragmented product portfolio and focusing the company on the awareness platform, our SaaS-based biometric orchestration and decisioning platform.

Speaker #2: Our priority is clear. We are building a more focused company around biometric orchestration, liveness detection, matching, and the federal government, and enterprise opportunities where our technology, differentiation.

Speaker #1: That transition takes time. It also creates near-term variability as we continue to support existing customers, pursue near-term opportunities, and invest in the platform capabilities we believe will define the next phase of growth for AWARE.

Ajay Amlani: It also creates near-term variability as we continue to support existing customers, pursue near-term opportunities, and invest in the platform capabilities we believe will define the next phase of growth for Aware. Our priority is clear. We are building a more focused company around biometric orchestration, liveness detection, matching, and the federal government and enterprise opportunities where our technology, experience, and collaboration create meaningful differentiation. During the quarter, we continued to make important progress against that strategy. This quarter, we made significant updates to the Awareness Platform to help organizations make smarter identity decisions in real time. The platform is built to serve as an intelligent control plane for identity, enabling organizations to design, deploy, run, and optimize biometric workflows through one unified environment.

Speaker #2: During the quarter, we continue to make important progress against that strategy. This quarter, we made significant updates to the awareness platform to help organizations make smarter identity decisions in real time.

Speaker #1: Our priority is clear: we are building a more focused company around biometric orchestration, liveness detection, matching, and the federal government, and enterprise opportunities where our technology, experience, and collaboration create meaningful differentiation.

Speaker #2: The platform is built to serve as an intelligent control plane for identity, enabling organizations to design, deploy, run, and optimize biometric workflows through one unified environment.

Speaker #2: This is important because many government and commercial organizations are navigating increasingly complex biometric environments, often managing multiple systems, vendors, data sources, and decisioning workflows at once.

Speaker #1: During the quarter, we continued to make important progress against that strategy. This quarter, we made significant updates to the Aware platform to help organizations make smarter identity decisions in real time.

Ajay Amlani: During the quarter, we continued to make important progress against that strategy. This quarter, we made significant updates to the Awareness Platform to help organizations make smarter identity decisions in real time. The platform is built to serve as an intelligent control plane for identity, enabling organizations to design, deploy, run, and optimize biometric workflows through one unified environment.

Speaker #1: The platform is built to serve as an intelligent control plane for identity, enabling organizations to design, deploy, run, and optimize biometric workflows through one unified environment.

Speaker #2: That fragmentation makes it harder to evaluate performance, manage fraud risk, and deliver consistent user experiences. We are hearing this directly in customer conversations and at recent trade shows.

Speaker #1: This is important because many government and commercial organizations are navigating increasingly complex biometric environments, often managing multiple systems, vendors, data sources, and decisioning workflows at once.

Ajay Amlani: This is important because many government and commercial organizations are navigating increasingly complex biometric environments, often managing multiple systems, vendors, data sources, and decisioning workflows at once. That fragmentation makes it harder to evaluate performance, manage fraud risk, and deliver consistent user experiences. We are hearing this directly in customer conversations and at recent trade shows. This feedback is reinforced by our research, which found that 98% of organizations currently using biometrics are interested in biometric orchestration capabilities, with organizations already using an average of three biometric vendors. The Awareness Platform is designed to address that challenge directly. It enables organizations to configure enrollment, verification, authentication, and identification workflows; orchestrate multiple liveness detection, matching, and identity verification providers within a single transaction; evaluate and benchmark vendors in production; normalize outputs for more consistent decisioning across both government and commercial environments.

Speaker #2: This feedback is reinforced by our research, which found that 98% of organizations currently using biometrics are interested in biometric orchestration capabilities. With organizations already using an average of 3 biometric vendors, the awareness platform is designed to address that challenge directly.

Speaker #1: That fragmentation makes it harder to evaluate performance, manage fraud risk, and deliver consistent user experiences. We are hearing this directly in customer conversations and at recent trade shows.

Speaker #2: It enables organizations to configure enrollment, verification, authentication, and identification workflows. Orchestrate multiple liveness detection, matching, and identity verification providers within a single transaction, evaluate and benchmark vendors in production, normalize outputs for more consistent decisioning across both government and commercial environments.

Speaker #1: This feedback is reinforced by our research, which found that 98% of organizations currently using biometrics are interested in biometric orchestration capabilities. With organizations already using an average of three biometric vendors, the Aware platform is designed to address that challenge directly.

Ajay Amlani: This feedback is reinforced by our research, which found that 98% of organizations currently using biometrics are interested in biometric orchestration capabilities, with organizations already using an average of three biometric vendors. The Awareness Platform is designed to address that challenge directly. It enables organizations to configure enrollment, verification, authentication, and identification workflows; orchestrate multiple liveness detection, matching, and identity verification providers within a single transaction; evaluate and benchmark vendors in production; normalize outputs for more consistent decisioning across both government and commercial environments.

Speaker #2: We were also pleased to welcome two new integrated technology partners, ROC and MITEC, to the awareness platform. These partnerships strengthen the platform and expand what customers can do through a single biometric orchestration environment.

Speaker #1: It enables organizations to configure enrollment, verification, authentication, and identification workflows. Orchestrate multiple liveness detection, matching, and identity verification providers within a single transaction, evaluate and benchmark vendors in production, normalize outputs for more consistent decisioning across both government and commercial environments.

Speaker #2: ROC's biometric matching technologies provide a high-performance foundation for identity, decisioning workflows within the awareness platform. MITEC's identity verification and liveness detection capabilities bring additional high assurance fraud protection functionality into the platform.

Speaker #1: We were also pleased to welcome two new integrated technology partners, ROC and MITEC, to the Aware platform. These partnerships strengthen the platform and expand what customers can do through a single biometric orchestration environment.

Ajay Amlani: We were also pleased to welcome two new integrated technology partners, ROC and Mitek, to the Awareness Platform. These partnerships strengthen the platform and expand what customers can do through a single biometric orchestration environment. ROC's biometric matching technologies provide a high-performance foundation for identity decisioning workflows within the Awareness Platform. Mitek's identity verification and liveness detection capabilities bring additional high-assurance fraud protection functionality into the platform. Together, these partnerships reinforce one of the core principles behind our strategy. The future of identity is not only about better individual algorithms, it is also about better orchestration. Customers increasingly want flexibility, visibility, and the ability to optimize performance across multiple technologies and vendors without disrupting live operations. Second, we continue to advance our intelligent liveness capabilities. The fraud landscape is becoming more sophisticated, particularly as deepfakes, injection attacks, synthetic identities, virtual cameras, device emulators, and replay attacks become more accessible.

Speaker #2: Together, these partnerships reinforce one of the core principles behind our strategy: the future of identity is not only about better individual algorithms. It is also about better orchestration.

Speaker #1: ROC's biometric matching technologies provide a high-performance foundation for identity decisioning workflows within the Aware platform. MITEC's identity verification and liveness detection capabilities bring additional, high-assurance fraud protection functionality into the platform.

Speaker #2: Customers increasingly want flexibility, visibility, and the ability to optimize performance across multiple technologies and vendors, without disrupting live operations. Second, we continue to advance our intelligent liveness capabilities.

Speaker #1: Together, these partnerships strategy: the future of identity is not only about better individual algorithms; it is also about better orchestration. Customers increasingly want flexibility, visibility, and the ability to optimize performance across multiple technologies and vendors, without disrupting live operations.

Speaker #2: The fraud landscape is becoming more sophisticated, particularly as deepfakes, injection attacks, synthetic identities, virtual cameras, device emulators, and replay attacks become more accessible, customers are looking for solutions that can strengthen security without adding unnecessary friction for legitimate users.

Ajay Amlani: The future of identity is not only about better individual algorithms, it is also about better orchestration. Customers increasingly want flexibility, visibility, and the ability to optimize performance across multiple technologies and vendors without disrupting live operations. Second, we continue to advance our intelligent liveness capabilities. The fraud landscape is becoming more sophisticated, particularly as deepfakes, injection attacks, synthetic identities, virtual cameras, device emulators, and replay attacks become more accessible.

Speaker #2: Our latest intelligent liveness enhancements are designed to help address that need. These capabilities use advanced optical and spectral analysis to help verify that biometric images originate directly from a real device, camera sensor, in real time.

Speaker #1: Second, we continue to advance our intelligent liveness capabilities. The fraud landscape is becoming more sophisticated, particularly as deepfakes, injection attacks, synthetic identities, virtual cameras, device emulators, and replay attacks become more accessible.

Speaker #2: Importantly, this remains a passive user experience and typically operates under in under 2 seconds without requiring users to blink, move their head, or complete challenge-response actions.

Speaker #1: Customers are looking for solutions that can strengthen security without adding unnecessary friction for legitimate users. Our latest intelligent liveness enhancements are designed to help address that need.

Ajay Amlani: Customers are looking for solutions that can strengthen security without adding unnecessary friction for legitimate users. Our latest Intelligent Liveness enhancements are designed to help address that need. These capabilities use advanced optical and spectral analysis to help verify that biometric images originate directly from a real device camera sensor in real time. Importantly, this remains a passive user experience and typically operates in under 2 seconds without requiring users to blink, move their head, or complete challenge-response actions. We believe this is a critical capability for the market. As AI-driven fraud continues to evolve, organizations need liveness technology that can adapt to increasingly complex attacks while preserving speed and usability. Third, we made meaningful progress in Intelligent Matching.

Speaker #2: We believe this is a critical capability for the market. As AI-driven fraud continues to evolve, organizations need liveness technology that can adapt to increasingly complex attacks while preserving speed and usability.

Speaker #1: These capabilities use advanced optical and spectral analysis to help verify that biometric images originate directly from a real device, camera sensor, in real time.

Speaker #1: Importantly, this remains a passive user experience and typically operates in under two seconds without requiring users to blink, move their head, or complete challenge-response actions.

Ajay Amlani: Importantly, this remains a passive user experience and typically operates in under two seconds without requiring users to blink, move their head, or complete challenge-response actions. We believe this is a critical capability for the market. As AI-driven fraud continues to evolve, organizations need liveness technology that can adapt to increasingly complex attacks while preserving speed and usability. Third, we made meaningful progress in Intelligent Matching.

Speaker #2: Third, we made meaningful progress in intelligent matching. We announced advancements to our matching algorithm that are designed to deliver approximately 10 times lower false non-match rate compared to previous generations, along with a scalable architecture, intended to enable sub-second, one-to-end matching across large biometric data sets.

Speaker #1: We believe this is a critical capability for the market. As AI-driven fraud continues to evolve, organizations need liveness technology that can adapt to increasingly complex attacks while preserving speed and usability.

Speaker #2: This matters because biometric matching performance and scalability are foundational to high confidence identity systems. Particularly in government, border, travel, financial services, and other environments where accuracy and speed and scale are all essential.

Speaker #1: Third, we made meaningful progress in intelligent matching. We announced advancements to our matching algorithm that are designed to deliver approximately 10 times lower false non-match rate compared to previous generations, along with a scalable architecture intended to enable sub-second, one-to-end matching across large biometric datasets.

Ajay Amlani: We announced advancements to our matching algorithm that are designed to deliver approximately 10 times lower false non-match rate compared to previous generations, along with a scalable architecture intended to enable sub-second one-to-N matching across large biometric data sets. This matters because biometric matching performance and scalability are foundational to high-confidence identity systems, particularly in government, border, travel, financial services, and other environments where accuracy, speed, and scale are all essential. Taken together, the progress we made across the Awareness Platform, Intelligent Liveness, and Intelligent Matching strengthens our ability to help customers move from fragmented biometric systems to more intelligent, optimized identity decisioning environments. We are seeing renewed activity across the federal government market, particularly in areas tied to homeland security, border modernization, airport infrastructure, traveler processing, and biometric identity verification.

Speaker #2: Taken together, the progress we made across the awareness platform, intelligent liveness, and intelligent matching strengthens our ability to help customers move from fragmented biometric systems to more intelligent optimized identity decisioning environments.

Speaker #1: This matters because biometric matching performance and scalability are foundational to high-confidence identity systems, particularly in government, border, travel, financial services, and other environments where accuracy, speed, and scale are all essential.

Speaker #2: We are seeing renewed activity across the federal government market, particularly in areas tied to homeland security, border modernization, airport infrastructure, traveler processing, and biometric identity verification.

Speaker #1: Taken together, the progress we've made across the Aware platform, intelligent liveness, and intelligent matching strengthens our ability to help customers move from fragmented biometric systems to more intelligent, optimized identity decisioning environments.

Ajay Amlani: Taken together, the progress we made across the Awareness Platform, Intelligent Liveness, and Intelligent Matching strengthens our ability to help customers move from fragmented biometric systems to more intelligent, optimized identity decisioning environments. We are seeing renewed activity across the federal government market, particularly in areas tied to homeland security, border modernization, airport infrastructure, traveler processing, and biometric identity verification.

Speaker #2: Importantly, may represented the first full month of normalized operations for the Department of Homeland Security following the recent disruptions in government funding. We want to recognize the dedication of DHS employees and the important work they continue to do in support of national security, even through a challenging operating environment.

Speaker #1: We are seeing renewed activity across the federal government market, particularly in areas tied to homeland security, border modernization, airport infrastructure, traveler processing, and biometric identity verification.

Speaker #2: Since activity is normalized, we have seen an increase in conversations, RFIs, procurement activity, and program momentum in areas where biometric solutions are highly relevant.

Ajay Amlani: Importantly, May represented the first full month of normalized operations for the Department of Homeland Security following the recent disruptions in government funding. We want to recognize the dedication of DHS employees and the important work they continue to do in support of national security, even through a challenging operating environment. Since activity has normalized, we have seen an increase in conversations, RFIs, procurement activity, and program momentum in areas where biometric solutions are highly relevant. There are several publicly visible examples of this broader activity, including DHS Traveler Processing and Vetting Software, TSA Gold+ and Secure Identity Management support initiatives, and DHS's Interagency Border Inspection System. We believe this renewed activity aligns well with Aware's capabilities, particularly in biometric orchestration, liveness detection, matching, and high-assurance identity workflows.

Speaker #1: Importantly, this may represent the first full month of normalized operations for the Department of Homeland Security following the recent disruptions in government funding. We want to recognize the dedication of DHS employees and the important work they continue to do in support of national security, even through a challenging operating environment.

Speaker #2: There are several publicly visible examples of this broader activity, including DHS traveler processing embedding software, TSA's Gold Plus, and secure identity management support initiatives, and DHS's interagency border inspection system.

Speaker #1: Since activity has normalized, we have seen an increase in conversations, RFIs, procurement activity, and program momentum in areas where biometric solutions are highly relevant.

Speaker #2: We believe this renewed activity aligns well with awareness capabilities, particularly in biometric orchestration, liveness detection, matching, and high assurance identity workflows. It also supports a broader federal priority around modernizing security infrastructure, improving traveler and border processing, and leveraging trusted technology providers that can support mission-critical identity programs while the timing and revenue impact of these opportunities remains difficult to predict the level of activity reinforces our confidence that the federal government market remains an important area of focus for AWAIR.

Speaker #1: There are several publicly visible examples of this broader activity, including DHS traveler processing and vetting software, TSA's Gold Plus, and secure identity management support initiatives, and DHS's inter-agency border inspection system.

Ajay Amlani: There are several publicly visible examples of this broader activity, including DHS Traveler Processing and Vetting Software, TSA Gold+ and Secure Identity Management support initiatives, and DHS's Interagency Border Inspection System. We believe this renewed activity aligns well with Aware's capabilities, particularly in biometric orchestration, liveness detection, matching, and high-assurance identity workflows.

Speaker #1: We believe this renewed activity aligns well with awareness capabilities, particularly in biometric orchestration, liveness detection, matching, and high assurance identity workflows. It also supports a broader federal priority around modernizing security infrastructure, improving traveler border processing, and leveraging trusted technology providers that can support mission-critical identity programs, while the timing and revenue impact of these opportunities remains difficult to predict the level of activity reinforces our confidence that the federal government market remains an important area of focus for AWARE.

Speaker #2: We are also focused heavily on executing teaming agreements with key systems integrators and partners that are well-positioned in these pursuits. While the timing and revenue impact of these opportunities remains difficult to predict, the level of engagement reinforces our view that the market need is real, and that AWAIR has capabilities that are highly relevant to the direction federal identity infrastructure is moving.

Ajay Amlani: It also supports a broader federal priority around modernizing security infrastructure, improving traveler and border processing, and leveraging trusted technology providers that can support mission-critical identity programs. While the timing and revenue impact of these opportunities remains difficult to predict, the level of activity reinforces our confidence that the federal government market remains an important area of focus for Aware. We are also focused heavily on executing teaming agreements with key systems integrators and partners that are well-positioned in these pursuits. While the timing and revenue impact of these opportunities remains difficult to predict, the level of engagement reinforces our view that the market need is real, and that Aware has capabilities that are highly relevant to the direction federal identity infrastructure is moving.

Speaker #2: Looking at the second half of the year, we expect revenue to improve from Q2 levels and expenses to be lower as the cost deduction actions we discussed last quarter became more visible in our results.

Speaker #1: We are also focused heavily on executing teaming agreements with key systems integrators and partners that are well positioned in these pursuits. While the timing and revenue impact of these opportunities remains difficult to predict, the level of engagement reinforces our view that the market need is real, and that AWARE has capabilities that are highly relevant to the direction federal identity infrastructure is moving.

Ajay Amlani: We are also focused heavily on executing teaming agreements with key systems integrators and partners that are well-positioned in these pursuits. While the timing and revenue impact of these opportunities remains difficult to predict, the level of engagement reinforces our view that the market need is real, and that Aware has capabilities that are highly relevant to the direction federal identity infrastructure is moving.

Speaker #2: We also expect certain subscription renewals and customer activity that are typically weighted toward the second half of the year to support a more normalized baseline of recurring revenue.

Speaker #2: We will remain careful in how we discuss timing. Our business can be cyclical, and individual quarters can vary based on procurement timelines, renewal schedules, and customer decision-making.

Speaker #1: Looking at the second half of the year, we expect revenue to improve from Q2 levels and expenses to be lower as the cost reduction actions we discussed last quarter became more visible in our results.

Ajay Amlani: Looking at the H2, we expect revenue to improve from Q2 levels and expenses to be lower as those cost reduction actions we discussed last quarter became more visible in our results. We also expect certain subscription renewals and customer activity that are typically weighted toward the H2 to support a more normalized baseline of recurring revenue. We will remain careful in how we discuss timing. Our business can be cyclical, and individual quarters can vary based on procurement timelines, renewal schedules, and customer decision-making. We do believe the H2 should reflect a stronger operating profile than Q2. To be clear, we are not where we want to be yet. Q2 was a difficult quarter, and we have more work to do.

Speaker #2: But we do believe the second half of the year should reflect a stronger operating profile than Q2. To be clear, we are not where we want to be yet.

Speaker #1: We also expect certain subscription renewals and customer activity that are typically weighted toward the second half of the year to support a more normalized baseline of recurring revenue.

Speaker #2: Q2 was a difficult quarter, and we have more work to do. But we believe the actions we are taking are the right ones, focusing the company building around the awareness platform, strengthening liveness and matching, pursuing near-term opportunities with discipline, and aligning resources to the markets where we believe we can win.

Speaker #1: We will remain careful in how we discuss timing. Our business can be cyclical, and individual quarters can vary based on procurement timelines, renewal schedules, and customer decision-making.

Ajay Amlani: We will remain careful in how we discuss timing. Our business can be cyclical, and individual quarters can vary based on procurement timelines, renewal schedules, and customer decision-making. We do believe the H2 should reflect a stronger operating profile than Q2. To be clear, we are not where we want to be yet. Q2 was a difficult quarter, and we have more work to do.

Speaker #1: But we do believe the second half of the year should reflect a stronger operating profile than Q2. To be clear, we are not where we want to be yet.

Speaker #2: With that, I will turn the call over to David to review our financial results in more detail. Over to you, David.

Speaker #1: Q2 was a difficult quarter, and we have more work to do. But we believe the actions we are taking are the right ones. Focusing the company, building around the awareness platform, strengthening liveness and matching, pursuing near-term opportunities with discipline, and aligning resources to the markets where we believe we can win.

Speaker #3: Thank you, AJ. Let's review our financial results. For the second quarter ended, June 30th, 2026. Revenue for the quarter was $3.3 million. Compared to $3.9 million in the prior year period.

Ajay Amlani: We believe the actions we are taking are the right ones, focusing the company, building around the Awareness Platform, strengthening liveness and matching, pursuing near-term opportunities with discipline, and aligning resources to the markets where we believe we can win. With that, I will turn the call over to David to review our financial results in more detail. Over to you, David.

Speaker #3: This decrease reflects lower perpetual software license revenue. Operating expenses for the quarter increased to $6,000, compared to $5.9 million in the prior year quarter.

Speaker #1: With that, I will turn the call over to David to review our financial results in more detail. Over to you, David.

Speaker #2: Thank you, Ajay. Let's review our financial results. For the second quarter ended June 30th, 2026. Revenue for the quarter was $3.3 million. Compared to $3.9 million in the prior year period.

David Traverse: Thank you, Ajay. Let's review our financial results for the Q2 ended 30 June 2026. Revenue for the quarter was $3.3 million, compared to $3.9 million in the prior year period. This decrease reflects lower perpetual software license revenue. Operating expenses for the quarter increased to $6 million, compared to $5.9 million in the prior year quarter. The higher expenses include costs related to hires we made in 2025 that are partially offset by spending reductions we have made in the H1 of this year. We will continue to make adjustments to our operating expenses as we focus on our strategic objectives. Net loss for the quarter was $2.6 million, or $0.12 per diluted share, compared to $2 million or $0.08 per diluted share in the prior year period. Adjusted EBITDA loss was $2.3 million, compared to $1.4 million in the prior year period.

Speaker #3: The higher expenses include cost related to hires remaining in 2025 that are partially offset by spending reductions we have made in the first half of this year.

Speaker #3: We will continue to make adjustments to our operating expenses as we focus on our strategic objectives. Net loss for the quarter was $2.6 million, or $0.12 per diluted share.

Speaker #2: This decrease reflects lower perpetual software license revenue. Operating expenses for the quarter increased to $6,00,000 compared to $5.9 million in the prior year quarter.

Speaker #3: Compared to $2,000,000 or $0.08 per diluted share in the prior year period. Adjusted EBITDA loss was $2.3 million. Compared to $1.4 million in the prior year period.

Speaker #2: The higher expenses include costs related to hires remaining in 2025 that are partially offset by spending reductions we have made in the first half of this year.

David Traverse: The higher expenses include costs related to hires we made in 2025 that are partially offset by spending reductions we have made in the H1 of this year. We will continue to make adjustments to our operating expenses as we focus on our strategic objectives. Net loss for the quarter was $2.6 million, or $0.12 per diluted share, compared to $2 million or $0.08 per diluted share in the prior year period. Adjusted EBITDA loss was $2.3 million, compared to $1.4 million in the prior year period.

Speaker #3: Turning to our results for the six-month ended June 30th, 2026. Total revenue was $6.6 million. Compared to $7.5 million in the prior year period.

Speaker #2: We will continue to make adjustments to our operating expenses as we focus on our strategic objectives. Net loss for the quarter was $2.6 million, or $0.12 per diluted share.

Speaker #3: The decrease reflects lower perpetual software license revenue. Operating expenses increased to $13 million. Compared to $11.3 million in the prior year period. The higher expenses include one-time severance costs of $700,000, as well as higher compensation costs related to hires remaining in 2025.

Speaker #2: Compared to $2,000,000, or $0.08 per diluted share, in the prior year period. Adjusted EBITDA loss was $2.3 million, compared to $1.4 million in the prior year period.

Speaker #2: Turning to our results for the six months ended June 30, 2026, total revenue was $6.6 million, compared to $7.5 million in the prior year period.

David Traverse: Turning to our results for the H1 ended 30 June 2026. Total revenue was $6.6 million, compared to $7.5 million in the prior year period. The decrease reflects lower perpetual software license revenue. Operating expenses increased to $13 million, compared to $11.3 million in the prior year period. The higher expenses include one-time severance cost of $700,000, as well as higher compensation costs related to hires made in 2025. As we noted in our Q1 call, we reduced operating expenses by $4 million on an annualized basis starting in Q2 2026, and we will continue to make adjustments to our operating expenses as we continue to focus on our strategic objectives. Net loss was $6 million, or $0.28 per diluted share, compared to $3.4 million, or $0.16 per diluted share in the prior year period.

Speaker #3: As we noted in our Q1 call, we reduced operating expenses by $4,000,000 on annualized basis starting in Q2, 2026. And we will continue to make adjustments to our operating expenses as we continue to focus on our strategic objectives.

Speaker #2: The decrease reflects lower perpetual software license revenue. Operating expenses increased to $13 million, compared to $11.3 million in the prior year period. The higher expenses include one-time severance costs of $700,000, as well as higher compensation costs related to hires remaining in 2025.

Speaker #3: Net loss was $6,000,000 or $0.28 per diluted share. Compared to $3.4 million or $0.16 per diluted share in the prior year period. Adjusted EBITDA loss was $5.5 million.

Speaker #2: As we noted in our Q1 call, we reduced operating expenses by $4 million on an annualized basis starting in Q2 2026. We will continue to make adjustments to our operating expenses as we remain focused on our strategic objectives.

David Traverse: As we noted in our Q1 call, we reduced operating expenses by $4 million on an annualized basis starting in Q2 2026, and we will continue to make adjustments to our operating expenses as we continue to focus on our strategic objectives. Net loss was $6 million, or $0.28 per diluted share, compared to $3.4 million, or $0.16 per diluted share in the prior year period.

Speaker #3: Compared to $3,000,000 in the prior year period. At the end of the quarter, with approximately 16.8 million in cash, cash equivalents, and marketable securities, and no debt.

Speaker #3: Our balance sheet remained strong and provides flexibility as we execute our strategic plan. We continue to manage expenses carefully while investing in our strategic priorities.

Speaker #2: Net loss was $6.0 million, or $0.28 per diluted share, compared to $3.4 million, or $0.16 per diluted share, in the prior year period. Adjusted EBITDA loss was $5.5 million.

David Traverse: Adjusted EBITDA loss was $5.5 million, compared to $3 million in the prior year period. We ended the quarter with approximately $16.8 million in cash equivalents, and marketable securities, and no debt. Our balance sheet remains strong and provides flexibility as we execute our strategic plan. We continue to manage expenses carefully while investing in our strategic priorities, including the Awareness Platform and pursue opportunities in the federal government enterprise markets. As Ajay noted, we expect H2 to be stronger than H1 from a revenue perspective, based on typical seasonality supported by the timing of certain customer activity and subscription renewals that are typically weighted toward H2. We also expect lower expenses in H2 as the cost reductions we implement become more fully reflected in our results.

Speaker #3: Including the awareness platform and pursue opportunities in the federal government enterprise markets. As AJ noted, we expect the second half of the year to be stronger than the first half of the year from a revenue perspective, based on typical seasonality supported by the timing of certain customer activity and subscription renewals, that are typically weighted toward the back half of the year.

Speaker #2: Compared to $3.0 million in the prior year period. At the end of the quarter, we had approximately $16.8 million in cash, cash equivalents, and marketable securities, and no debt.

Speaker #2: Our balance sheet remained strong and provides flexibility as we execute our strategic plan. We continue to manage expenses carefully while investing in our strategic priorities.

Speaker #3: We also expect lower expenses in the second half, as the cost reductions we implement become more fully reflected in our results. That said, we expect quarter variability to continue.

Speaker #2: Including the awareness platform and pursue opportunities in the federal government enterprise markets. As Ajay noted, we expect the second half of the year to be stronger than the first half of the year from a revenue perspective, based on typical seasonality, supported by the timing of certain customer activity and subscription renewals, that are typically weighted toward the back half of the year.

David Traverse: As Ajay noted, we expect H2 to be stronger than H1 from a revenue perspective, based on typical seasonality supported by the timing of certain customer activity and subscription renewals that are typically weighted toward H2. We also expect lower expenses in H2 as the cost reductions we implement become more fully reflected in our results.

Speaker #3: Our revenue could be impacted by the timing of perpetual licenses, procurement cycles, renewals, and service activity. For that reason, we continue to believe the business is best evaluated over multiple quarters rather than any single quarter in isolation.

Speaker #2: We also expect lower expenses in the second half as the cost reductions we implement become more fully reflected in our results. That said, we expect quarter variability to continue.

Speaker #3: Our financial priorities remain unchanged. Maintain discipline on expenses, preserve balance sheet flexibility, support our existing customers, and align investment with the areas we believe create the greatest long-term value.

David Traverse: That said, we expect quarter variability to continue. Our revenue could be impacted by the timing of perpetual licenses, procurement cycles, renewals, and service activity. For that reason, we continue to believe the business is best evaluated over multiple quarters rather than any single quarter in isolation. Our financial priorities remain unchanged. Maintain discipline on expenses, preserve balance sheet flexibility, support our existing customers, and align investment with the areas we believe create the greatest long-term value. With that, I'll turn it back over to Ajay for closing remarks. Ajay?

Speaker #2: Our revenue could be impacted by the timing of perpetual licenses, procurement cycles, renewals, and service activity. For that reason, we continue to believe the business is best evaluated over multiple quarters rather than any single quarter in isolation.

Speaker #3: With that, I'll turn it back over to AJ for closing remarks. AJ?

Speaker #2: Thanks, David. We are confident that we are taking the right steps to position AWAIR for a stronger future as this transition continues. We have sharpened our strategy around the awareness platform, continued to advance our liveness and matching capabilities, and are focusing our resources on the markets and opportunities where we believe we can compete most effectively.

Speaker #2: Our financial priorities remain expenses, preserve balance sheet flexibility, support our existing customers, and align investment with the areas we believe create the greatest long-term value.

David Traverse: Our financial priorities remain unchanged. Maintain discipline on expenses, preserve balance sheet flexibility, support our existing customers, and align investment with the areas we believe create the greatest long-term value. With that, I'll turn it back over to Ajay for closing remarks. Ajay?

Speaker #2: AI continues to reinforce the importance of that strategy. It is helping us accelerate aspects of product development while also increasing the urgency of the challenges and customers that our customers face.

Speaker #2: With that, I'll turn it back over to Ajay for closing remarks. Ajay?

Speaker #1: Thanks, David. We are confident that we are taking the right steps to position AWARE for a stronger future as this transition continues. We have sharpened our strategy around the awareness platform, continued to advance our liveness and matching capabilities, and are focusing our resources on the markets and opportunities where we believe we can compete most effectively.

Ajay Amlani: Thanks, David. We are confident that we are taking the right steps to position Aware for a stronger future as this transition continues. We have sharpened our strategy around the Awareness Platform, continued to advance our liveness and matching capabilities, and are focusing our resources on the markets and opportunities where we believe we can compete most effectively. AI continues to reinforce the importance of that strategy. It is helping us accelerate aspects of product development while also increasing the urgency of the challenges that our customers face.

Speaker #2: As sophisticated AI-driven fraud becomes more accessible, identity assurance is becoming even more critical across government and enterprise environments. At the core of our view is a simple principle.

Speaker #2: Identity does not originate in a document or a database. It originates with the human being. Biometrics provide the digital translation layer that helps organizations establish trust in that human identity.

Speaker #1: AI continues to reinforce the importance of that strategy. It is helping us accelerate aspects of product development while also increasing the urgency of the challenges and customers that our customers face.

Speaker #2: We are also encouraged by the renewed activity in the federal government market. With DHS operations normalized in May, we are seeing increased momentum in conversations.

Speaker #1: As sophisticated AI-driven fraud becomes more accessible, identity assurances becoming even more critical across government and enterprise environments. At the core of our view is a simple principle.

Ajay Amlani: As sophisticated AI-driven fraud becomes more accessible, identity assurance is becoming even more critical across government and enterprise environments. At the core of our view is a simple principle. Identity does not originate in a document or a database. It originates with the human being. Biometrics provide the digital translation layer that helps organizations establish trust in that human identity. We are also encouraged by the renewed activity in the federal government market. With DHS operations normalized in May, we are seeing increased momentum in conversations. RFIs, procurement activity, and programs tied to Homeland Security, border modernization, traveler processing, and biometric identity verification. Our priorities for H2 are clear. Execute against near-term opportunities, maintain expense discipline, support our customers, and continue advancing the Awareness Platform. We know this transition will take time, but the market need is clear. Our technology is increasingly relevant.

Speaker #2: RFIs, procurement activity, and programs tied to homeland security, border and biometric identity verification. Our priorities for the second half are clear. Execute against near-term opportunities, maintain expense discipline, support our customers, and continue advancing the awareness platform.

Speaker #1: Identity does not originate in a document or a database; it originates with the human being. Biometrics provide the digital translation layer that helps organizations establish trust in that human identity.

Speaker #1: We are also encouraged by the renewed activity in the federal government market. With DHS operations normalized in May, we are seeing increased momentum in conversations.

Ajay Amlani: With DHS operations normalized in May, we are seeing increased momentum in conversations. RFIs, procurement activity, and programs tied to Homeland Security, border modernization, traveler processing, and biometric identity verification. Our priorities for H2 are clear. Execute against near-term opportunities, maintain expense discipline, support our customers, and continue advancing the Awareness Platform. We know this transition will take time, but the market need is clear. Our technology is increasingly relevant.

Speaker #2: We know this transition will take time, but the market need is clear. Our technology is increasingly relevant. The Department of Homeland Security and other government customers remain open and we believe AWAIR is moving in the right direction.

Speaker #1: RFIs, procurement activity, and programs tied to Homeland Security, border modernization, traveler processing, and biometric identity verification—our priorities for the second half are clear.

Speaker #2: That concludes our prepared remarks. We will now open the call for questions. Delaney, please provide the instructions.

Speaker #1: Execute against near-term opportunities, maintain expense discipline, support our customers, and continue advancing the Aware platform. We know this transition will take time, but the market need is clear.

Speaker #1: Our technology is increasingly relevant. The Department of Homeland Security and other government customers remain open and we believe AWARE is moving in the right direction.

Ajay Amlani: The Department of Homeland Security and other government customers remain open. We believe Aware is moving in the right direction. That concludes our prepared remarks. We will now open the call for questions. Delanie, please provide the instructions.

Speaker #1: Thank you, AJ. Please stand by while we populate any questions. First question. You've put a lot of emphasis on the government opportunity this quarter.

Speaker #1: That concludes our prepared remarks. We will now open the call for questions. Delaney, please provide the instructions.

Speaker #1: How should we think about that translating into the commercial side of the business?

Speaker #2: Yeah. Thank you for the question, actually. This is a really important one. Commercial organizations and government organizations both face increasingly similar challenges. AI-enabled fraud, regulatory pressure, operational complexity, and the need to deliver secure digital experiences without adding friction.

Speaker #3: Thank you, Ajay. Please stand by while we populate any questions. First question. You've put a lot of emphasis on the government opportunity this quarter.

Operator: Thank you, Ajay. Please stand by while we populate any questions. First question. You've put a lot of emphasis on the government opportunity this quarter. How should we think about that translating into the commercial side of the business?

Speaker #3: How should we think about that translating into the commercial side of the business?

Speaker #2: All of these things are actually shared between both commercial organizations and government organizations. There's actually a really nice two-way exchange between commercial organizations and government organizations.

Speaker #1: Yeah, thank you for the question, actually. This is a really important one. Commercial organizations and government organizations both face increasingly similar challenges: AI-enabled fraud, regulatory pressure, operational complexity, and the need to deliver secure digital experiences without adding friction.

Ajay Amlani: Yeah, thank you for the question. Actually, this is a really important one. Commercial organizations and government organizations both face increasingly similar challenges. AI-enabled fraud, regulatory pressure, operational complexity, and the need to deliver secure digital experiences without adding friction. All of these things are actually shared between both commercial organizations and government organizations. There's actually a really nice two-way exchange between commercial organizations and government organizations. Commercial organizations view technologies adopted by government vendors or by governments as government-grade, right? They look at it as a higher threshold, a higher bar for security, for accuracy, for scalability, for reliability. Commercial sort of looks at those types of government vendors favorably. Government, same way, right? They actually look at commercial companies quite a bit. They do benchmarking against commercial companies to see what kinds of vendors they're picking for some of their most important needs.

Speaker #2: Commercial organizations view technologies adopted by government vendors or by government as government-grade, right? They look at it as a higher threshold, a higher bar for security, for accuracy, for scalability, for reliability.

Speaker #1: All of these things are actually shared between both commercial organizations and government organizations. There's actually a really nice two-way exchange between commercial organizations and government organizations.

Speaker #2: So commercial sort of looks at those types of government vendors favorably. Government, same way, right? They actually look at commercial companies quite a bit as they do benchmarking against commercial companies to see what kinds of vendors they're picking.

Speaker #1: Commercial organizations view technologies adopted by government vendors or by governments as government-grade, right? They look at it as a higher threshold, a higher bar for security, for accuracy, for scalability, for reliability.

Ajay Amlani: Commercial organizations view technologies adopted by government vendors or by governments as government-grade, right? They look at it as a higher threshold, a higher bar for security, for accuracy, for scalability, for reliability. Commercial sort of looks at those types of government vendors favorably. Government, same way, right? They actually look at commercial companies quite a bit. They do benchmarking against commercial companies to see what kinds of vendors they're picking for some of their most important needs.

Speaker #2: For some of their most important needs. And they want to be able to operate at the speed of the commercial sector with the same kind of usability and flexibility that people expect.

Speaker #1: So commercial sort of looks at those types of government vendors favorably. Government, same way, right? They actually look at commercial companies quite a bit as they do benchmarking against commercial companies to see what kinds of vendors they're picking for some of their most important needs.

Speaker #2: Commercial customers recognize biometrics are very disconnected. They have multiple vendors in different places. And the workflows and the systems and the performance and the fraud risk, those are all really important components this is where the awareness platform is highly relevant for both commercial and government customers.

Speaker #1: And they want to be able to operate at the speed of the commercial sector with the same kind of usability and flexibility that people expect.

Ajay Amlani: They want to be able to operate at the speed of the commercial sector with the same kind of usability and flexibility that people expect. Commercial customers recognize biometrics are very disconnected. They have multiple vendors in different places, and the workflows, the systems, the performance, and the fraud risk, those are all really important components. This is where the Awareness Platform is highly relevant for both commercial and government customers. It's a SaaS-based biometric orchestration platform and decisioning platform, and that allows you to design, deploy, run, optimize workflows through one environment that Aware provides to our customers. Through a single transaction benchmark, you can benchmark vendors. In production, you can normalize outputs for more consistent decisioning. You can perform liveness matching, identity verification, all through the Awareness Platform. Both commercial and government really have a need for real high-confidence identity decisions.

Speaker #2: The SaaS-based biometric orchestration platform and decisioning platform. And that allows you to design, deploy, run, and optimize workflows through one environment that AWAIR provides to our customers through single transaction, benchmark you can benchmark vendors in production you can normalize outputs from work-assistant decisioning you can perform liveness matching, identity verification, all through the awareness platform.

Speaker #1: Commercial customers recognize that biometrics are very disconnected. They have multiple vendors in different places, and the workflows, the systems, the performance, and the fraud risk—those are all really important components. This is where the Aware platform is highly relevant for both commercial and government customers.

Speaker #2: So both commercial and government really have a need for real high confidence identity decisions. And basically, there's a two-way street here that basically allows us to benefit between government adoption and commercial adoption as both industries look at each other for benchmarking.

Ajay Amlani: It's a SaaS-based biometric orchestration platform and decisioning platform, and that allows you to design, deploy, run, optimize workflows through one environment that Aware provides to our customers. Through a single transaction benchmark, you can benchmark vendors. In production, you can normalize outputs for more consistent decisioning. You can perform liveness matching, identity verification, all through the Awareness Platform. Both commercial and government really have a need for real high-confidence identity decisions.

Speaker #1: The SaaS-based biometric orchestration platform and decisioning platform. And that allows you to design, deploy, run, optimize, workflows through one environment that AWARE provides to our customers through single transaction, benchmark you can benchmark vendors in production.

Speaker #1: You can normalize outputs from work-assistant decisioning. You can perform liveness matching and identity verification, all through the Aware platform. So both commercial and government really have a need for real, high-confidence identity decisions.

Speaker #1: Thank you, AJ. The next question comes from John Phillips. Has AWAIR had any involvement with the 2026 implementation of the Mexican government's unique population registry code, CURP, and national biometric ID system?

Speaker #1: And basically, there's a two-way street here that basically allows us to benefit between government adoption and commercial adoption as both industries look at each other for benchmarking.

Ajay Amlani: basically, there is a two-way street here that basically allows us to benefit between government adoption and commercial adoption as both industries look at each other for benchmarking.

Ajay Amlani: Basically, there is a two-way street here that basically allows us to benefit between government adoption and commercial adoption as both industries look at each other for benchmarking.

Speaker #1: Did AWAIR bid for any role in this project, either directly or through a channel partner?

Speaker #2: Yeah. Thank you for your question, John. The Mexican government's biometric initiative is actually a huge identity modernization effort. We believe it underscores the growing global adoption of biometric technology.

Speaker #3: Thank you, Ajay. The next question comes from John Phillips. Has AWARE had any involvement with the 2026 implementation of the Mexican government's unique population registry code, PERC, and national biometric ID system?

Operator: Thank you, Ajay. The next question comes from John Phillips. Has Aware had any involvement with the 2026 implementation of the Mexican government's unique population registry code, CURP, a national biometric ID system? Did Aware bid for any role in this project, either directly or through a channel partner?

Speaker #2: As a matter of policy, we don't comment on specific customer pursuits or bids or potential opportunities. But we do and can say, right, that government globally are leveraging biometrics as sort of the source of truth when it comes to identity frameworks.

Speaker #3: Did AWARE bid for any role in this project, either directly or through a channel partner?

Speaker #1: Yeah. Thank you for your question, John. The Mexican government's biometric initiative is actually a huge identity modernization effort. We believe it underscores the growing global adoption of biometric technology.

Ajay Amlani: Thank you for your question, John. The Mexican government's biometric initiative is actually a huge identity modernization effort. We believe it underscores the growing global adoption of biometric technology. As a matter of policy, we do not comment on specific customer pursuits or bids or potential opportunities. We do and can say that governments globally are leveraging biometrics as sort of the source of truth when it comes to identity frameworks. That is because the physical document or verifying the physical document digitally is really hard. You cannot really stick a driver's license or a passport into a computer very easily. You can maybe take a picture of it, but you cannot really tell if it is a real document. You could doctor the photo. There is a lot of different things that you can do with physical documents. Identity actually lives in the human.

Speaker #2: And that is because the physical document or verifying the physical document digitally is really hard. You can't really stick a driver's license or a passport into a computer very easily.

Speaker #1: As a matter of policy, we don't comment on specific customer pursuits, bids, or potential opportunities. But we do and can say, right, that governments globally are leveraging biometrics as the source of truth when it comes to identity frameworks.

Speaker #2: You can maybe take a picture of it, but you can't really tell if it's a real document. You can document a photo. There's a lot of different things that you can do.

Speaker #2: With. Physical documents. But identity actually lives in the human. It's that and biometrics are that translation layer and a digital format. And so biometrics are really very strong at being able to determine between deepfakes and real live humans.

Speaker #1: And that is because the physical document, or verifying the physical document digitally, is really hard. You can't really stick a driver's license or a passport into a computer very easily.

Ajay Amlani: That is because the physical document or verifying the physical document digitally is really hard. You cannot really stick a driver's license or a passport into a computer very easily. You can maybe take a picture of it, but you cannot really tell if it is a real document. You could doctor the photo. There is a lot of different things that you can do with physical documents. Identity actually lives in the human.

Speaker #1: You can maybe take a picture of it, but you can't really tell if it's a real document. You can talk to the photo. There's a lot of different things that you can do.

Speaker #2: That's why we prioritize liveness within our capabilities. And we also have significant number of there are a significant number of AI-enabled threats to identity right now.

Speaker #1: With physical documents, but identity actually lives in the human. It's that and biometrics are that translation layer between the human identity and a digital format.

Ajay Amlani: Biometrics are that translation layer between the human identity and a digital format. Biometrics are really very strong at being able to determine between deepfakes and real live humans. That is why we prioritize liveness within our capabilities. There are a significant number of AI-enabled threats to identity right now. If you look at most breaches, they are actually caused by compromised passwords or credentials, and biometrics serve to be able to protect organizations from these bad actors that are getting more and more AI capabilities to try to break systems. Organizations are turning to biometrics as a primary defense mechanism, which provides a nice tailwind for our business.

Speaker #1: And so biometrics are really a very strong at being able to determine between deepfakes and real live humans. That's why we prioritize liveness within our capabilities.

Speaker #2: If you look at most breaches, they're actually caused by compromised passwords or credentials. And biometrics serve to be able to protect organizations from these bad actors that are getting more and more AI capabilities to try to break systems.

Speaker #1: And we also have significant number of there are a significant number of AI-enabled threats to identity right now. If you look at most breaches, they're actually caused by compromised passwords or credentials.

Speaker #2: And organizations are turning to biometrics as a primary defense mechanism, which provides a nice tailwind for our business.

Ajay Amlani: There are a significant number of AI-enabled threats to identity right now. If you look at most breaches, they are actually caused by compromised passwords or credentials, and biometrics serve to be able to protect organizations from these bad actors that are getting more and more AI capabilities to try to break systems. Organizations are turning to biometrics as a primary defense mechanism, which provides a nice tailwind for our business.

Speaker #1: Thank you, AJ. This next question also comes from John Phillips. Does AWAIR have any involvement in multilateral biometric data sharing agreements that the US Department of State has signed with allied nations such as the recent DHS CARICOM partnership or other similar agreements?

Speaker #1: And biometrics serve to be able to protect organizations from these bad actors that are getting more and more AI capabilities to try to break systems.

Speaker #1: And organizations are turning to biometrics as a primary defense mechanism, which provides a nice tailwind for our business.

Speaker #2: Sure. Again, it's actually the Department of Homeland Security that signed that specifically with CARICOM. And but these are, again, specific government programs which we do not comment on agreements, pursuits, et cetera.

Speaker #3: Thank you, Ajay. This next question also comes from John Phillips. Does AWARE have any involvement in multilateral biometric data sharing agreements that the US Department of State has signed with allied nations such as the recent DHS CARECOM partnership or other similar agreements?

Operator: Thank you, Ajay. This next question also comes from John Phillips. Does Aware have any involvement in multilateral biometric data-sharing agreements that the U.S. Department of State has signed with ally nations, such as the recent DHS CARICOM partnership or other similar agreements?

Speaker #2: What we can say, though, is that there's an increased public activity around biometric modernization, interoperability, border security, traveler processing, identity verification. These are all areas where AWAIR has really deep experience or a technology is highly relevant.

Speaker #1: Sure. Again, it's actually the Department of Homeland Security that signed that specifically with CARICOM. But these are, again, specific government programs, which we do not comment on—agreements, pursuits, et cetera.

Ajay Amlani: Sure. Again, it's actually the Department of Homeland Security that signed that specifically with CARICOM. These are, again, specific government programs, which we do not comment on, agreements, pursuits, et cetera. What we can say, though, is that there's an increased public activity around biometric modernization, interoperability, border security, traveler processing, identity verification. These are all areas where Aware has a really deep experience, where our technology is highly relevant. Under new DHS policies, it's really well fit for companies like ours. There's a huge prioritization on buying American-made software. Not many biometrics companies and solutions providers are left here in the United States. In fact, we are the original U.S.-based biometrics company, founded in 1986. We are being turned to by government organizations to provide solutions directly, and that's going to help us in a variety of these different initiatives that are being introduced.

Speaker #2: And under new DHS policies, it's really well fit for companies like ours there's a huge prioritization on buying American, American-made software, not many biometrics companies and solutions providers are left here in the United States.

Speaker #1: What we can say, though, is that there's an increased public activity around biometric modernization interoperability, border security, traveler processing, identity verification. These are all areas where AWARE has really deep experience or a technology is highly relevant and under new DHS policies it's really well fit for companies like ours there's a huge prioritization on buying American and buying American-made software not many biometrics companies and solutions providers are left here in the United States.

Speaker #2: In fact, we are the original US-based biometrics company founded in 1986. And so we are being turned to by government organizations to provide solutions directly.

Ajay Amlani: Under new DHS policies, it's really well fit for companies like ours. There's a huge prioritization on buying American-made software. Not many biometrics companies and solutions providers are left here in the United States. In fact, we are the original U.S.-based biometrics company, founded in 1986. We are being turned to by government organizations to provide solutions directly, and that's going to help us in a variety of these different initiatives that are being introduced.

Speaker #2: And that's going to help us in a variety of these different initiatives that are being introduced.

Speaker #1: Okay. Thank you, AJ. Next question also from John Phillips. What were the results of your Orlando MCO airport biometric exit program trial that AWAIR participated in with iProve and others?

Speaker #1: In fact, we are the original US-based biometrics company founded in 1986. And so we are being turned to by government organizations to provide solutions directly.

Speaker #1: Did AWAIR's solution demonstrate a competitive advantage over the other two solutions provided?

Speaker #1: And that's going to help us in a variety of these different initiatives that are being introduced.

Speaker #2: Yeah. Thank you again for the detailed question. Yeah. The program itself that was announced but we don't comment on the specific programs or results of pilots, right, or performance.

Speaker #3: Okay, thank you, Ajay. Next question, also from John Phillips: What were the results of your Orlando MCO airport biometric exit program trial that Aware participated in with iProve and others?

Operator: Okay. Thank you, Ajay. Next question, also from John Phillips. What were the results of the Orlando MCO Airport biometric exit program trial that Aware participated in with iProov and others? Did Aware's solution demonstrate a competitive advantage over the other two solutions provided?

Speaker #2: Again, it's any other vendors in those environments. But what we can say is biometric exit identity verification and aviation it's one of the biggest markets for biometrics, right?

Speaker #3: Did AWARE solutions demonstrate competitive advantage over the other two solutions provided?

Speaker #2: It's deployed globally. The United States is actually one of the laggards in terms of the adoption of biometrics at airports. When you're traveling internationally everywhere across the globe, you're going through sophisticated biometric systems.

Speaker #1: Yeah. Thank you again for the detailed question. Yeah. The program itself that was announced but we don't comment on the specific programs or results of pilots, right, or performance.

Ajay Amlani: Yeah. Thank you again for the detailed question. The program itself that was announced, we don't comment on the specific programs or results of pilots, right, or performance against any other vendors in those environments. What we can say is biometric exit identity verification in aviation, it's one of the biggest markets for biometrics, right? It's deployed globally. The United States is actually one of the laggards in terms of the adoption of biometrics at airports. When you're traveling internationally everywhere across the globe, you're going through sophisticated biometric systems. They complement the officers that you are actually interacting with. They provide additional information and intel that allows them to be able to make the right decisions in terms of whether or not they should grant you access into different places.

Speaker #2: They complement the officers that you are actually interacting with. They provide additional information and intel that allows them to be able to make the right decisions in terms of whether or not they should grant you access into different places.

Speaker #1: Again, it's any other vendor's in those environments. But what we can say is biometric exit identity verification and aviation it's one of the biggest markets for biometrics, right?

Speaker #1: It's deployed globally. The United States is actually one of the laggards in terms of the adoption of biometrics at airports. When you're traveling internationally, everywhere across the globe, you're going through sophisticated biometric systems.

Speaker #2: And so these are markets that are very large internationally. And domestically, you're starting to see biometrics show up at DSA checkpoints. When you're going through border security and on the back end, there's a lot of other biometric systems that are actually operating I can tell you within the aviation, industry in general, every time you go through a TSA checkpoint, every time you log in and try to get your boarding pass and use Face ID, every time you check a bag, these are all areas where biometrics are looking to supplement and complement the use of a human employee.

Ajay Amlani: The United States is actually one of the laggards in terms of the adoption of biometrics at airports. When you're traveling internationally everywhere across the globe, you're going through sophisticated biometric systems. They complement the officers that you are actually interacting with. They provide additional information and intel that allows them to be able to make the right decisions in terms of whether or not they should grant you access into different places.

Speaker #1: They complement the officers that you are actually interacting with. They provide additional information and intel that allows them to be able to make the right decisions in terms of whether or not they should grant you access into different places.

Speaker #1: And so these are markets that are very large internationally. And domestically, you're starting to see biometrics show up at DSA checkpoints when you're going through border security.

Ajay Amlani: These are markets that are very large internationally, and domestically you're starting to see biometrics show up at TSA checkpoints. When you're going through border security and on the back end, there's a lot of other biometric systems that are actually operating. I can tell you within the aviation industry in general, every time you go through a TSA checkpoint, every time you log in and try to get your boarding pass and use Face ID, every time you check a bag, these are all areas where biometrics are looking to supplement and complement the use of a human employee. That actually allows for better technological innovation, better customer experience. You're seeing consumers turning towards biometric solutions and choosing to go through biometric access instead of human-based programs. It's able to improve security and reduce wait times at air, sea, and land borders across the board.

Speaker #1: And on the back end, there's a lot of other biometric systems that are actually operating I can tell you within the aviation industry in general, every time you go through a TSA checkpoint, every time you log in and try to get your boarding pass and use Face ID, every time you check a bag, these are all areas where biometrics are looking to supplement and complement the use of a human employee and that actually allows for better technological innovation.

Speaker #2: And that actually allows for better technological innovation. Better customer experience. You're seeing consumers turning towards biometric solutions and choosing to go through biometric access instead of human-based programs.

Speaker #2: So it's able to improve security. And reduce wait times at ARC and land borders across the board. We supplied all of the different providers in this market historically.

Ajay Amlani: That actually allows for better technological innovation, better customer experience. You're seeing consumers turning towards biometric solutions and choosing to go through biometric access instead of human-based programs. It's able to improve security and reduce wait times at air, sea, and land borders across the board.

Speaker #2: They're all our customers they've always been our customers. But what's different now is that the government and airports and airlines are wanting to be able to turn directly to AWAIR to be able to supply them with and configure identity workflows orchestrate multiple biometric technologies, evaluate performance in production, and make consistent identity decisions across complex operating environments.

Speaker #1: Better customer experience. You're seeing consumers turning towards biometric solutions and choosing to go through biometric access instead of human-based programs so it's able to improve security.

Speaker #1: And reduce wait times at ARC and land borders across the board. We supplied all of the different providers in this market historically. They're all our customers they've always been our customers.

Ajay Amlani: We've supplied all of the different providers in this market historically. They're all our customers. They've always been our customers. What's different now is that the government and airports and airlines are wanting to be able to turn directly to Aware, to be able to supply them with and configure identity workflows, orchestrate multiple biometric technologies, evaluate performance and production, and make consistent identity decisions across complex operating environments. The border and aviation market continues to invest in modernization. We believe the combination of biometric orchestration, Intelligent Liveness, Intelligent Matching, US-based company expertise positions Aware really well for the opportunity ahead.

Speaker #2: And so the border and aviation market continues to invest in modernization. We believe the combination of biometric orchestration, intelligent liveness, intelligent matching, US-based company expertise positions AWAIR really well for the opportunity ahead.

Speaker #1: But what's different now is that the government and airports and airlines are wanting to be able to turn directly to AWARE to be able to supply them.

Speaker #1: With and configure identity workflows orchestrate multiple biometric technologies evaluate performance and production and they consist in identity decisions across complex operating environments. And so the border and aviation market continues to invest in modernization.

Speaker #1: Thank you, AJ. One more from John Phillips. When do you anticipate quarterly revenue will begin sustained growth?

Speaker #2: Yeah. Thank you once again for the question. These actions we're taking are designed to create a stronger foundation for consistent performance over time. We're transitioning the business and transforming it into a more focused, scalable platform strategy.

Speaker #1: We believe the combination of biometric orchestration, intelligent liveness, intelligent matching, and US-based company expertise positions AWARE really well for the opportunity ahead.

Speaker #2: We're moving away from a fragmented portfolio of components and SDKs focusing on the resources of the awareness platform, intelligent liveness, intelligent matching. And so the government and commercial opportunities we believe we can compete very effectively.

Speaker #3: Thank you, Ajay. One more from John Phillips: When do you anticipate quarterly revenue will begin sustained growth?

Operator: Thank you, Ajay. One more from John Phillips. When do you anticipate quarterly revenue will begin sustained growth?

Speaker #1: Yeah. Thank you once again for the question. These actions we're taking are designed to create a stronger foundation for consistent performance over time. We're transitioning the business and transforming it.

Ajay Amlani: Yeah. Thank you once again for the question. These actions we're taking are designed to create a stronger foundation for consistent performance over time. We're transitioning the business and transforming it into a more focused, scalable platform strategy. We're moving away from a fragmented portfolio of components and SDKs, focusing on the resources of the Awareness Platform, Intelligent Liveness, Intelligent Matching. The government and commercial opportunities, we believe we can compete very effectively. We've also taken a lot of cost actions on the other end, right, to better align expenses with our strategic priorities.

Speaker #2: We've also taken a lot of cost actions on the other end, right, to better align expenses with our strategic priorities. And while we continue to support customers and pursue near-term opportunities, in the second half of the year, we do expect revenue to be stronger than the first half based on typical seasonality, customer activity, subscription renewals, while expenses should be lower as those cost actions that we took in the earlier part of the year become fully reflected.

Speaker #1: And so more focus scalable platform strategy. We're moving away from a fragmented portfolio of components and SDKs focusing on the resources of the awareness platform intelligent liveness intelligent matching.

Speaker #1: And so the government and commercial opportunities we believe we can compete very effectively. We've also taken a lot of cost actions on the other end, right, to better align expenses with our strategic priorities.

Speaker #2: Longer term, we expect this to continue. As the awareness platform helps unlock a more scalable model by giving customers one environment to orchestrate biometric workflows.

Speaker #1: And while we continue to support customers and pursue near-term opportunities, in the second half of the year we do expect revenue to be stronger than the first half, based on typical seasonality, customer activity, and subscription renewals. Expenses should be lower as those cost actions that we took in the earlier part of the year become fully reflected.

Ajay Amlani: While we continue to support customers and pursue near-term opportunities, in H2, we do expect revenue to be stronger than H1 based on typical seasonality, customer activity, subscription renewals, while expenses should be lower as those cost actions that we took in the earlier part of the year become fully reflected. Longer term, we expect this to continue as the Awareness Platform™ helps unlock a more scalable model by giving customers one environment to orchestrate biometric workflows. Also, right, the tailwinds from the government market and AI-driven fraud, regulatory pressure, identity modernization, this strategy positions Aware for more sustainable growth over time.

Speaker #2: And then also, right, the tailwinds from the government market and AI-driven fraud regulatory pressure, identity modernization, this strategy positions AWAIR for a more sustainable growth over time.

Speaker #1: Thank you, AJ. Next question comes from someone called MS. Is awareness market ready?

Speaker #1: Longer term, we expect this to continue, as the Aware platform helps unlock a more scalable model by giving customers one environment to orchestrate biometric workflows.

Speaker #2: For this question, Brian Krauss, our CRO, will take the answer to this question. Go ahead, Brian.

Speaker #1: And then also, right, the tailwinds from the government market and AI-driven fraud regulatory pressure, identity modernization—this strategy positions AWARE for more sustainable growth over time.

Speaker #3: Sure. Thank you, AJ. And thank you for the question. The answer to the question is yes. The awareness platform was announced earlier this year.

Speaker #3: And today is market ready and available for customers to demo, trial, and procure. As you also heard on June 9th and read into today's release, we did actually add two new technology partners to the platform over the course of second quarter.

Speaker #3: Thank you, Ajay. Next question comes from someone called MS. Is awareness market ready?

Operator: Thank you, Ajay. Next question comes from someone called MS. Is Awareness market ready?

Speaker #1: For this question, Brian Krause, our CRO, will take the answer to this question. Go ahead, Brian.

Ajay Amlani: For this question, Brian Krause, our CRO, will take the answer to this question. Go ahead, Brian.

Brian Krause: Sure. Thank you, Ajay, and thank you for the question. The answer to the question is yes. The Awareness Platform™ was announced earlier this year, and today is market ready and available for customers to demo, trial, and procure. As you also heard on 9 June and read in today's release, we did actually add two new technology partners to the platform over the course of Q2, ROC and Mitek, both of which we're very excited to have.

Speaker #4: Sure. Thank you, Ajay. And thank you for the question. The answer to the question is yes. The awareness platform was announced earlier this year.

Speaker #3: INROC and MyTech, both of which we're very excited to have.

Speaker #1: Thank you, Brian. Next question also comes from MS. What competitive advantage does AWAIR have read biometric orchestration?

Speaker #4: And today is market ready and available for customers to demo, trial, and procure. As you also heard, on June 9th and right into today's release, we did actually add two new technology partners to the platform over the course of second quarter.

Speaker #3: Thanks, Delaney. Thank you again for the question. It's a great question. We feel strongly that the awareness platform has a number of competitive advantages with respect to biometric orchestration.

Speaker #4: InRock and MyTech, both of which were very excited to have.

Speaker #3: The first of which is that ecosystem of technology providers that we are integrating or have already integrated onto the platform. The architecture of the platform essentially now allows customers, one, single API architecture development access to the very best biometric technology on the planet.

Speaker #3: Thank you, Brian. Next question also comes from MS. What competitive advantage does AWARE have read biometric orchestration?

Operator: Thank you, Brian. Next question also comes from MS. What competitive advantage does Aware have re biometric orchestration?

Speaker #4: Thanks Delaney. Thank you again for the question. It's a great question. We feel strongly that the awareness platform has a number of competitive advantages with respect to biometric ecosystem of technology providers that we are integrating or have already integrated onto the platform.

Brian Krause: Thanks, Delanie. Thank you again for the question. It's a great question. We feel strongly that the Awareness Platform has a number of competitive advantages with respect to biometric orchestration. The first of which is that ecosystem of technology providers that we are integrating or have already integrated onto the platform. The architecture of the platform essentially now allows customers one single API architecture development access to the very best biometric technology on the planet. Nowhere else can you connect to this depth of quality of technology in our space through a single API.

Speaker #3: So nowhere else can you connect to this depth of quality of technology in our space through a single API. And this roadmap for technology partners and the product design roadmap is also being managed by a company that has 35 years of expertise in this space and a team that has hundreds of collective years of experience and expertise in this space to make sure that those advantages stay defensible and continue to be fostered.

Speaker #4: The architecture of the platform essentially now allows customers, one, single API architecture development access to the very best biometric technology on the planet. So nowhere else can you connect to this depth of quality of technology in our space through a single API.

Speaker #4: And this roadmap for technology partners, and the product design roadmap, is also being managed by a company that has 35 years of expertise in this space, and a team that has hundreds of collective years of experience and expertise in this space, to make sure that those advantages stay defensible and continue to be fostered.

Brian Krause: This roadmap for technology partners and the product design roadmap is also being managed by a company that has 35 years of expertise in this space and a team that has hundreds of collective years of experience and expertise in this space to make sure that those advantages stay defensible and continue to be fostered.

Speaker #1: Thank you, Brian. Next question also comes from MS. One year ago, you announced a key customer-secured this quarter was a top 15 global financial institution.

Speaker #1: What is the current status of this new customer?

Speaker #3: Sure. Yeah. Thanks again. For the question, the customer that we're referencing here I'm happy to report is still a customer. I'm also happy to report is in year two and is beyond renewal of that first year contract at this stage.

Speaker #3: Thank you, Brian. The next question also comes from MS. One year ago, you announced that a key customer secured this quarter was a top 15 global financial institution.

Operator: Thank you, Brian. Next question also comes from MS. One year ago, you announced a key customer secured this quarter with a top 15 global financial institution. What is the current status of this new customer?

Speaker #3: Also, very excited to report that over the course of Q2, there was just reported we did work with this customer to help them test and evaluate some additional AWAIR technology for potential future use.

Speaker #3: What is the current status of this new customer?

Speaker #4: Sure. Yeah. Thanks again. For the question, the customer that we're referencing here I'm happy to report is still a customer. I'm also happy to report is in year two and is beyond renewal of that first-year contract at this stage.

Brian Krause: Sure. Yeah. Thanks again for the question. The customer that we're referencing here, I'm happy to report, is still a customer. I'm also happy to report is in year two and is beyond renewal of that first-year contract at this stage. I'm also very excited to report that over the course of Q2 that was just reported, we did work with this customer to help them test and evaluate some additional Aware technology for potential future use. Happy customer, renewed customer, and hopefully expanding relationship for Aware into the coming quarters.

Speaker #3: So happy customer, renewed customer, and hopefully expanding relationship for AWAIR into the coming quarters.

Speaker #1: Thank you, Brian. One last question from MS. How many sales pitches to new prospective customers demonstrating your products did you make at customer premises?

Speaker #4: Also, very excited to report that, over the course of Q2 that was just reported, we did work with this customer to help them test and evaluate some additional Aware technology for potential future use.

Speaker #4: So happy customer. Renewed customer. And hopefully expanding relationship for AWARE into the coming quarters.

Speaker #3: Thanks again for the question. I won't get into specific operating key results for the revenue function in particular. I will address the question by saying that both outside external market interest in meeting with AWAIR and understanding the awareness platform and our other technologies remains strong and steady.

Speaker #3: Thank you, Brian. One last question from MS: How many sales pitches to new prospective customers demonstrating your products did you make at customer premises?

Operator: Thank you, Brian. One last question from MS. How many sales pitches to new prospective customers demonstrating your products did you make at customer premises?

Speaker #3: At the same time, the productivity of our revenue team remains at or above all expected benchmarks.

Brian Krause: Thanks again for the question. I won't get into specific operating key results for the revenue function in particular. I will address the question by saying that both outside external market interest in meeting with Aware and understanding the Awareness Platform and our other technologies remains strong and steady. At the same time, the productivity of our revenue team remains at or above all expected benchmarks.

Speaker #4: Thanks again for the question. I won't get into specific operating key results for the revenue function in particular. I will address the question by saying that both outside external market interest in meeting with AWARE and understanding the awareness platform and our other technologies remains strong and steady.

Speaker #1: Thank you. That completes our Q2 FY26 broadcast. As a reminder, this presentation is recorded and made available for replay via a link available in the investor relations section of the company's website.

Speaker #4: At the same time, the productivity of our revenue team remains at or above all expected benchmarks.

Speaker #3: Thank you. That completes our Q2 FY26 broadcast. As a reminder, this presentation is recorded and made available for replay via a link in the Investor Relations section of the company's website.

Operator: Thank you. That completes our Q2 FY26 broadcast. As a reminder, this presentation is recorded and made available for replay via a link available in the investor relations section of the company's website. Thank you, and you may now disconnect.

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