authID (AUID -3.45%), the identification know-how agency specializing in privacy-focused biometric authentication, reported its second quarter 2025 outcomes on Aug. 14, 2025. Probably the most important information within the launch was a pointy soar in GAAP income to $1.4 million, reflecting substantial buyer and reserving momentum, whilst Working bills and web losses continued to climb. There have been no analyst estimates with which to match outcomes. Administration highlighted document progress throughout a number of metrics, however persistent losses and new credit score provisions underlined continued monetary challenges.
MetricQ2 2025Q2 2024Y/Y ChangeRevenue$1.4 million$0.3 million366.7percentEPS$(0.33)$(0.34)N/AAdjusted EBITDA$(3.4 million)$(2.5 million)N/AOperating Bills$5.9 million$3.6 million63.9percentGross Booked Annual Recurring Income (bARR) (Non-GAAP)$2.2 million$0.6 million266.7%
authID’s enterprise mannequin and strategic focus
authID supplies identification authentication options, together with its biometric platform referred to as PrivacyKey. The platform transforms biometric knowledge — like facial photographs — into cryptographic keys, which permits for fast and extremely safe identification verification. Crucially, no precise biometric knowledge is saved, aiding regulatory compliance and privateness.
The corporate’s enterprise targets regulated sectors and high-risk transactions that require a excessive stage of authentication assurance. Latest firm focus areas embrace driving technological innovation, broadening its partnership community, and increasing recurring income. Key success components are product management, strategic alliances, and effectiveness in changing pilots or trials into long-term contracts.
Quarterly evaluation: Income progress, metrics, and execution
The interval noticed authID put up document GAAP income, marking a notable year-over-year enhance in GAAP income. AuthID additionally secured a dwell manufacturing trial with a Fortune World 500 firm within the UK, an settlement anticipated to transition right into a full contract if profitable. The corporate’s annual recurring income (ARR, non-GAAP) reached $5.8 million, up from $1.1 million of ARR (non-GAAP) as of Q2 2024 and $1.2 million of ARR (non-GAAP) as of Q1 2025.
Gross booked annual recurring income (bARR, non-GAAP) jumped to $2.2 million from $0.63 million in Q2 2024. Web bARR (non-GAAP), which subtracts the worth from contracts delayed or misplaced, grew to $1.9 million. The corporate’s remaining efficiency obligation (RPO), which exhibits the contracted however not but acknowledged income, was $13.8 million.—greater than triple the determine from Q2 2024.
On the know-how facet, authID launched IDX, a brand new biometric authentication product developed in partnership with NEC, a supplier of biometric {hardware}. Administration claims this product permits ultra-fast and correct authentication for regulated industries, whereas sustaining buyer privateness. The interval additionally featured enhancements to the PrivacyKey product, now able to one-to-many search — which means it may well determine an individual out of a big group shortly — with out the necessity to retailer any biometric knowledge.
Strategic partnerships performed a task within the quarter’s outcomes. Alongside NEC, administration highlighted a brand new settlement with Show, which operates a large-scale identification fraud platform. These partnerships are supposed to allow sooner market entry and broaden the person base, notably by embedding authID’s options into third-party ecosystems. As well as, the corporate expanded its board with new members and advisors, aiming to help ongoing progress and worth creation for stakeholders.
Working bills elevated roughly 63.9% year-over-year, totaling $5.9 million, primarily reflecting investments in hiring, gross sales, and analysis and improvement. The corporate cited a $0.8 million provision for estimated credit score losses, which displays new assessments round credit score danger for sure buyer contracts. These expense will increase, together with persistent web losses, spotlight the stress of scaling operations forward of realized income. Notably, web loss (GAAP) widened to $4.4 million, in comparison with $3.3 million for Q2 2024. Web money flows from operations (GAAP) confirmed an outflow of $8.4 million for the primary half of 2025, with $8.3 million in money readily available on the finish of the quarter.
Share depend elevated, reaching 13.2 million on a diluted foundation versus 9.5 million a yr in the past.
There have been additionally challenges throughout the interval. AuthID needed to guide new credit score loss provisions, signaling some delays or potential points with accumulating income on sure buyer contracts. Some signed offers confronted slowdowns shifting from contract to full go-live, impacting acknowledged bARR (non-GAAP) and creating challenges on the trail towards extra predictable recurring income.
All through the quarter, the corporate continued to emphasise its privacy-by-design method. Compliance with privateness and biometric laws is a key promoting level, particularly for big enterprises and public sector purchasers. There have been no new regulatory hurdles cited for the interval, however the continued assertion that the platform shops no biometric knowledge is a core strategic differentiator.
Wanting forward: Outlook and potential dangers
Administration didn’t present particular forward-looking monetary steerage for income, margin, or revenue for upcoming quarters or the total yr. In public commentary earlier within the yr, administration referenced a bookings goal of $18 million in gross bARR (a non-GAAP measure) for fiscal 2025. With half-year bARR (non-GAAP) totaling $2.2 million for the primary six months of 2025, reaching this full-year objective would require a major acceleration in reserving massive contracts and ramping deployments within the subsequent two quarters.
For buyers and stakeholders, areas to watch in coming quarters embrace the tempo of contract conversions, expense administration, success of partnership-driven gross sales, and determination of credit score danger exposures. Given the persistent excessive working prices and web losses, the corporate’s means to reveal path to sustained profitability and optimistic money circulate stays a crucial watchpoint. AUID doesn’t at the moment pay a dividend.
Income and web revenue introduced utilizing U.S. typically accepted accounting rules (GAAP) except in any other case famous.
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