📊 AWRE Key Takeaways
Is Aware Inc. /Ma/ (AWRE) a Good Investment?
AWRE is operationally insolvent with negative profitability across all metrics (-107.8% operating margin, -102.1% net margin), declining revenue of $3.4M, and negative free cash flow of -$2.7M. Despite a strong balance sheet, the current cash burn rate provides less than two years of runway without significant operational improvement.
AWARE INC's fundamentals are weak, with declining revenue, deeply negative operating and net margins, and continued cash burn that points to a challenged software business model. The balance sheet is a mitigating factor because liquidity is solid and leverage is effectively zero, but absent a credible turnaround in revenue growth and profitability, the current financial profile remains unfavorable.
Aware Inc. /Ma/ Key Strengths (AWRE)
- Zero long-term debt with 0.00x debt-to-equity ratio
- Strong liquidity position with 3.56x current ratio and 3.47x quick ratio
- Cash reserves of $4.6M provide temporary operational cushion
- Positive stockholders equity of $22.9M relative to small asset base
- Strong liquidity with current ratio of 3.77x and quick ratio of 3.68x
- Debt-free capital structure reduces financial risk and preserves flexibility
- Positive equity base of $26.14M provides some balance sheet cushion despite losses
AWRE Stock Risks: Aware Inc. /Ma/ Investment Risks
- Deeply unprofitable with -107.8% operating margin and -102.1% net margin
- Negative free cash flow of -$2.7M annually indicating operational cash burn
- Revenue declining (-0.6% YoY) and deteriorating on micro-scale at only $3.4M
- Estimated 1.7 years cash runway at current burn rate without revenue stabilization
- Severely negative returns on equity (-15.1%) and assets (-10.4%) with worsening net income trend (-32.5% YoY)
- Operating margin of -37.9% and net margin of -34.0% indicate severe profitability pressure
- Negative operating cash flow of $-5.40M and free cash flow of $-5.56M suggest the business is not self-funding
- Revenue declined year over year while net loss worsened, indicating weak growth quality and limited operating leverage
Key Metrics to Watch
- Operating cash flow trajectory and path to cash flow breakeven
- Revenue stabilization and customer retention metrics
- Quarterly burn rate and remaining cash runway
- Operating margin improvement and cost structure management
- Revenue growth and recurring software revenue trends
- Operating cash flow and pace of cash burn
Aware Inc. /Ma/ (AWRE) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.56x current ratio provides a solid financial cushion.
AWRE Profit Margin, ROE & Profitability Analysis
AWRE vs Technology Sector: How Aware Inc. /Ma/ Compares
How Aware Inc. /Ma/ compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Aware Inc. /Ma/ Stock Overvalued? AWRE Valuation Analysis 2026
Based on fundamental analysis, Aware Inc. /Ma/ has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Aware Inc. /Ma/ Balance Sheet: AWRE Debt, Cash & Liquidity
AWRE Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Aware Inc. /Ma/'s revenue has shown modest growth of 3% over the 5-year period. The most recent EPS of $-0.21 indicates the company is currently unprofitable.
AWRE Revenue Growth, EPS Growth & YoY Performance
AWRE Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $3.4M | -$1.6M | $-0.08 |
| Q3 2025 | $3.8M | -$982.0K | $-0.05 |
| Q2 2025 | $3.9M | -$982.0K | $-0.05 |
| Q1 2025 | $3.6M | -$982.0K | $-0.05 |
| Q3 2024 | $3.8M | -$982.0K | $0.05 |
| Q2 2024 | $3.2M | -$982.0K | $-0.05 |
| Q1 2024 | $4.3M | -$982.0K | $-0.05 |
| Q3 2023 | $3.0M | $31.0K | $0.00 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Aware Inc. /Ma/ Dividends, Buybacks & Capital Allocation
AWRE SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Aware Inc. /Ma/ (CIK: 0001015739)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AWRE
What is the AI rating for AWRE?
Aware Inc. /Ma/ (AWRE) has a Combined AI Grade of C from Claude (D) and ChatGPT (C) with 86% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AWRE's key strengths?
Claude: Zero long-term debt with 0.00x debt-to-equity ratio. Strong liquidity position with 3.56x current ratio and 3.47x quick ratio. ChatGPT: Strong liquidity with current ratio of 3.77x and quick ratio of 3.68x. Debt-free capital structure reduces financial risk and preserves flexibility.
What are the risks of investing in AWRE?
Claude: Deeply unprofitable with -107.8% operating margin and -102.1% net margin. Negative free cash flow of -$2.7M annually indicating operational cash burn. ChatGPT: Operating margin of -37.9% and net margin of -34.0% indicate severe profitability pressure. Negative operating cash flow of $-5.40M and free cash flow of $-5.56M suggest the business is not self-funding.
What is AWRE's revenue and growth?
Aware Inc. /Ma/ reported revenue of $3.4M.
Does AWRE pay dividends?
Aware Inc. /Ma/ does not currently pay dividends.
Where can I find AWRE SEC filings?
Official SEC filings for Aware Inc. /Ma/ (CIK: 0001015739) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AWRE's EPS?
Aware Inc. /Ma/ has a diluted EPS of $-0.16.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is AWRE's fundamental grade?
Based on our AI fundamental analysis in June 2026, Aware Inc. /Ma/ has a C grade with 86% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is AWRE stock overvalued or undervalued?
Valuation metrics for AWRE: ROE of -15.1% (sector avg: 22%), net margin of -102.1% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is AWRE's AI grade for 2026?
Our dual AI analysis gives Aware Inc. /Ma/ a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is AWRE's free cash flow?
Aware Inc. /Ma/'s operating cash flow is $-2.7M, with capital expenditures of $0.0. FCF margin is -79.1%.
How does AWRE compare to other Technology stocks?
Vs Technology sector averages: Net margin -102.1% (avg: 18%), ROE -15.1% (avg: 22%), current ratio 3.56 (avg: 2.5).