Free cash flow remains highly volatile, swinging from a positive $3.1M in 2023Q4 to a negative $2.7M in 2026Q1, reflecting the difficulty of achieving a self-funding model.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | -5.13M | -5.4M | -3.16M | 1.82M | -5.04M | -6.23M | -5.27M | -2.94M | 660K | 3.67M | 3.81M | 6.68M | 6.26M | 2.83M | -15.29M | 6.83M | 710K | -3.4M | 9.41M | -1.26M | 2.81M | -2.01M | -925K | -8.06M | -9.46M | 1.24M | 14.47M | 4.34M | -2.3M | -2.6M | -600K |
| Operating CF Margin % | - | -31.21% | -18.18% | 9.99% | -31.5% | -36.99% | -46.64% | -24.13% | 4.09% | 22.53% | 17.69% | 34.07% | 26.37% | 14.61% | -76.85% | 27.78% | 3.01% | -15.41% | 30.82% | -4.77% | 11.68% | -12.84% | -5.61% | -74.37% | -68.31% | 6.66% | 47.18% | 21.12% | -19.49% | -41.94% | -11.32% |
| Operating CF Growth % | -217.79% | -70.77% | -273.4% | 136.16% | 19.12% | -18.2% | -79.08% | -546.21% | -82.01% | -3.8% | -42.94% | 6.84% | 121.14% | 118.5% | -323.96% | 861.83% | 120.9% | -136.12% | 845.32% | -144.91% | 239.66% | -117.51% | 88.53% | 14.73% | -864.51% | -91.45% | 233.7% | 288.52% | 11.54% | -333.33% | -200% |
| Net Income | -7.73M | -5.87M | -4.43M | -7.31M | -1.73M | -5.82M | -7.61M | -8.34M | 1.23M | 1.28M | 4.1M | 4.61M | 4.58M | 2.6M | 72.31M | 2.57M | 180K | 982K | 1.78M | 160K | 1.03M | -2.47M | -1.37M | -8.04M | -18.73M | -2.52M | 15.03M | 4.9M | -2.2M | -4.4M | 300K |
| Depreciation & Amortization | 567K | 572K | 562K | 578K | 888K | 687K | 561K | 441K | 443K | 518K | 622K | 640K | 541K | 458K | 453K | 475K | 536K | 823K | 921K | 878K | 686K | 614K | 969K | 1.47M | 1.84M | 1.72M | 1.74M | 1.78M | 1.5M | 900K | 400K |
| Stock-Based Compensation | 1.26M | 1.17M | 1.13M | 1.52M | 0 | 1.57M | 838K | 692K | 580K | 663K | 558K | 689K | 915K | 662K | 321K | 1.28M | 1.5M | 1.74M | 1.5M | 1.14M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 219K | 257K | 0 | 0 | 0 | -269K | 0 | 5.17M | -100K | -9K | -24K | -1.9M | -66K | 81K | -1.76M | 0 | 0 | 0 | -1.5M | -1.14M | 0 | 0 | 0 | 0 | 0 | 0 | -2.72M | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 364K | -1K | 140K | 2.01M | -3.83M | -64K | 118K | 0 | 100K | -40K | -13K | -66K | -2.07M | 20K | -84.73M | -9K | 0 | -6.23M | 1.48M | 1.12M | 1.94M | 0 | -50K | -150K | 707K | 25K | -1.29M | 0 | 0 | 200K | 0 |
| Working Capital Changes | 191K | -1.52M | -564K | 5.02M | -375K | -2.33M | 823K | -909K | -1.6M | 1.25M | -1.43M | 2.7M | 2.35M | -988K | -1.88M | 2.52M | -1.5M | -709K | 5.23M | -3.42M | -847K | -158K | -477K | -1.35M | 6.72M | 2.01M | 1.71M | -2.34M | -1.6M | 700K | -1.3M |
| Change in Receivables | 267K | -342K | -289K | 3.77M | 261K | -2.25M | 84K | -477K | 379K | 615K | 1.73M | -1.12M | 963K | -1.13M | 85K | 1.42M | -1.4M | -1.35M | 5.47M | -2.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | -48K | -231K | -2M | 176K | 2K | 2K | 1.6M | -1.6M | 547K | 1.32M | -750K | 542K | -232K | -605K | -733K | 57K | -95K | 2K | 232K | -115K | -45K | -1.15K | 100K | 200K | -400K |
| Change in Payables | -16K | 151K | 614K | -359K | 356K | -249K | 307K | 61K | -40K | 31K | -99K | -24K | -1.26M | 1.19M | -71K | -166K | 239K | -473K | -473K | 247K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | 1.24M | -274K | 6.29M | -3.14M | -11.99M | -2.48M | -2.91M | -111K | -206K | 937K | -87K | 125K | 3.42M | -1.36M | 85.07M | -1.07M | -278K | 6.49M | 36.3M | -6.07M | -8.2M | 6.38M | 5.62M | 2.2M | -1.48M | -17.19M | -5.63M | -1.54M | -1.5M | -7.6M | -6.7M |
| Capital Expenditures | -120K | -165K | -45K | -16K | -730K | -27K | -484K | -111K | -206K | -82K | -87K | -127K | -135K | -160K | -116K | -331K | -218K | -168K | -445K | -559K | -666K | -368K | -256K | -190K | -807K | -1.42M | -1.3M | -3.07M | -1M | -10.6M | -1.1M |
| CapEx % of Revenue | 0.7% | 0.95% | 0.26% | 0.09% | 4.56% | 0.16% | 4.28% | 0.91% | 1.28% | 0.5% | 0.4% | 0.65% | 0.57% | 0.83% | 0.58% | 1.35% | 0.93% | 0.76% | 1.46% | 2.11% | 2.77% | 2.35% | 1.55% | 1.75% | 5.83% | 7.67% | 4.26% | 14.98% | 8.47% | 170.97% | 20.75% |
| Acquisitions | 0 | 0 | 0 | 0 | 8.55M | -2.45M | -2.43M | 0 | 0 | 0 | 0 | 0 | 2.01M | 24K | 0 | 0 | 0 | -36.74M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | -2.5M | 0 | 0 | 0 | 0 | 1.02M | -517K | -277K | 2.13M | -338K | 86.39M | 0 | -60K | 6.66M | 0 | 0 | 0 | -338K | 0 | 0 | -52K | -375K | 500K | -500K | -100K | 0 | 0 |
| Cash from Financing | 22K | -31K | -159K | -426K | -1.18M | 109K | -989K | -814K | -450K | -4.91M | -3.05M | 438K | -38.35M | 122K | -45.28M | 867K | -152K | -8.94M | -1.99M | 568K | 896K | 1.22M | 483K | 100K | 150K | 343K | 7.57M | 8.94M | 3.8M | 2.6M | 36.3M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 25K | -28K | -207K | -506K | -1.16M | 163K | -896K | -722K | -343K | -4.72M | -3.61M | 40K | 508K | 65K | 6.53M | 1.09M | 9K | -8.94M | -1.99M | 609K | 896K | 1.22M | 483K | 100K | 150K | 343K | 7.57M | 8.94M | 3.8M | 2.6M | 36.3M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -39.91M | 0 | -66.02M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -62K | -115K | -207K | -506K | -1.31M | 0 | -946K | -765K | -393K | -4.8M | -3.65M | 0 | 0 | 0 | 0 | -735K | 0 | -8.95M | -2.36M | -38K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -3K | -3K | 48K | 80K | -26K | -54K | -93K | -92K | -107K | -186K | 565K | 398K | 1.04M | 57K | 14.22M | -224K | -161K | 0 | 0 | -41K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Change in Cash | -3.88M | -5.7M | 2.97M | -1.75M | -18.21M | -8.6M | -9.18M | -3.87M | 4K | -305K | 681K | 7.25M | -28.68M | 1.59M | 24.5M | 6.63M | 280K | -5.85M | 43.71M | -6.76M | -4.5M | 5.59M | 5.18M | -5.76M | -10.79M | -15.61M | 16.41M | 11.74M | 0 | 2.6M | 36.3M |
| Free Cash Flow | -5.25M | -5.56M | -3.21M | 1.81M | -5.77M | -6.26M | -5.76M | -3.06M | 454K | 3.59M | 3.73M | 6.56M | 6.12M | 2.67M | -15.41M | 6.5M | 492K | -3.56M | 8.96M | -1.82M | 2.14M | -2.38M | -1.18M | -8.25M | -10.26M | -187K | 13.16M | 1.26M | -3.3M | -13.2M | -1.7M |
| FCF Margin % | -30.78% | -32.17% | -18.44% | 9.9% | -36.06% | -37.15% | -50.92% | -25.04% | 2.81% | 22.03% | 17.28% | 33.42% | 25.81% | 13.79% | -77.44% | 26.43% | 2.09% | -16.17% | 29.36% | -6.89% | 8.91% | -15.19% | -7.16% | -76.12% | -74.14% | -1.01% | 42.93% | 6.14% | -27.97% | -212.9% | -32.08% |
| FCF Growth % | -39.02% | -73.52% | -277.42% | 131.31% | 7.81% | -8.74% | -88.42% | -773.13% | -87.34% | -3.76% | -43.16% | 7.12% | 129.34% | 117.32% | -337.15% | 1220.73% | 113.8% | -139.78% | 592.09% | -184.93% | 190.08% | -101.52% | 85.69% | 19.58% | -5388.77% | -101.42% | 943.71% | 138.22% | 75% | -676.47% | -325% |
| FCF per Share | -0.24 | -0.26 | -0.15 | 0.09 | -0.27 | -0.29 | -0.27 | -0.14 | 0.02 | 0.16 | 0.16 | 0.29 | 0.27 | 0.12 | -0.70 | 0.31 | 0.02 | -0.17 | 0.38 | -0.07 | 0.09 | -0.10 | -0.05 | -0.36 | -0.45 | -0.01 | 0.55 | 0.05 | -0.16 | -0.68 | -0.09 |
| FCF Conversion (FCF/Net Income) | 0.68x | 0.92x | 0.71x | -0.25x | 2.92x | 1.07x | 0.69x | 0.35x | 0.54x | 2.86x | 0.93x | 1.45x | 1.37x | 1.09x | -0.21x | 2.66x | 3.94x | -3.46x | 5.30x | -7.89x | 2.72x | 0.82x | 0.68x | 1.00x | 0.50x | -0.49x | 1.08x | 0.89x | 1.05x | 0.59x | -2.00x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 172K | 136K | 0 | 0 | 0 | 43K | 96K | 488K | 1.55M | 571K | 1.02M | 542K | 7.95M | 2K | 2K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Persistent Operating Cash Burn
According to the provided cash flow data, Aware's operating cash flow frequently diverges from net income, with the OCF/NI ratio reaching as high as 2.46 in 2024Q1, suggesting that non-cash items and working capital fluctuations are significantly distorting the company's underlying earnings quality and cash generation profile.
The persistent gap between net income and operating cash flow indicates that the company's reported losses do not fully capture the cash-based operational requirements of the business. Investors should monitor this volatility, as it suggests that accrual-based accounting may be obscuring the true extent of the cash burn required to sustain current operations.
As reported in financial statements, Aware's free cash flow trajectory remains highly erratic, swinging from a positive $3.1M in 2023Q4 to a negative $2.7M in 2026Q1, which highlights the difficulty in achieving a sustainable, self-funding model during the ongoing transition to a recurring SaaS revenue structure.
The lack of a consistent positive FCF trend suggests that the company's current business model is not yet optimized for cash generation. This instability warrants further investigation into whether the SaaS pivot will eventually stabilize cash flows or if the high fixed-cost base will continue to necessitate periodic cash infusions.
Based on reported figures, Aware's cash flow is heavily influenced by working capital movements, such as the $1.9M inflow in 2025Q4 followed by a $1.9M outflow in 2025Q3, indicating that the timing of government contract payments and deferred revenue recognition creates significant, unpredictable liquidity fluctuations for the firm.
These working capital swings suggest that the company's cash position is highly sensitive to the billing cycles of its sovereign clients. Analysts should interpret these movements as a reflection of the 'lumpy' nature of government-centric revenue rather than a sign of operational efficiency or improved collection processes.
Data from recent filings indicates that stock-based compensation, which reached $505K in 2024Q4, consistently acts as a non-cash add-back that masks the true economic cost of talent acquisition, thereby potentially inflating the company's reported operating cash flow figures relative to its actual cash-based operational performance.
By relying on SBC to manage compensation expenses, the company effectively shifts the burden of dilution onto shareholders while keeping cash on the balance sheet. This practice warrants further investigation, as it may be masking the true cash-burn rate required to retain the specialized engineering talent necessary for biometric innovation.
Quick answers to the most common questions about buying AWRE stock.
Aware, Inc. (AWRE) generated $-5.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Aware, Inc. (AWRE) reported negative free cash flow of $5.6M in 2025, indicating capital requirements exceeded cash from operations.
Aware, Inc. (AWRE) spent $0.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Aware, Inc. (AWRE) spent $0.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.