authID (AUID -3.45%), the identity technology firm specializing in privacy-focused biometric authentication, reported its second quarter 2025 results on Aug. 14, 2025. The most significant news in the release was a sharp jump in GAAP revenue to $1.4 million, reflecting substantial customer and booking momentum, even as Operating expenses and net losses continued to climb. There were no analyst estimates with which to compare results. Management highlighted record growth across several metrics, but persistent losses and new credit provisions underlined continued financial challenges.
| Metric | Q2 2025 | Q2 2024 | Y/Y Change |
|---|---|---|---|
| Revenue | $1.4 million | $0.3 million | 366.7% |
| EPS | $(0.33) | $(0.34) | N/A |
| Adjusted EBITDA | $(3.4 million) | $(2.5 million) | N/A |
| Operating Expenses | $5.9 million | $3.6 million | 63.9% |
| Gross Booked Annual Recurring Revenue (bARR) (Non-GAAP) | $2.2 million | $0.6 million | 266.7% |
authID’s business model and strategic focus
authID provides identity authentication solutions, including its biometric platform called PrivacyKey. The platform transforms biometric data — like facial images — into cryptographic keys, which allows for quick and highly secure identity verification. Crucially, no actual biometric data is stored, aiding regulatory compliance and privacy.
The company’s business targets regulated sectors and high-risk transactions that require a high level of authentication assurance. Recent company focus areas include driving technological innovation, broadening its partnership network, and expanding recurring revenue. Key success factors are product leadership, strategic alliances, and effectiveness in converting pilots or trials into long-term contracts.
Quarterly review: Revenue growth, metrics, and execution
The period saw authID post record GAAP revenue, marking a notable year-over-year increase in GAAP revenue. AuthID also secured a live production trial with a Fortune Global 500 company in the UK, an agreement anticipated to transition into a full contract if successful. The company’s annual recurring revenue (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 revenue (bARR, non-GAAP) jumped to $2.2 million from $0.63 million in Q2 2024. Net bARR (non-GAAP), which subtracts the value from contracts delayed or lost, grew to $1.9 million. The company’s remaining performance obligation (RPO), which shows the contracted but not yet recognized revenue, was $13.8 million.—more than triple the figure from Q2 2024.
On the technology side, authID launched IDX, a new biometric authentication product developed in partnership with NEC, a provider of biometric hardware. Management claims this product enables ultra-fast and accurate authentication for regulated industries, while maintaining customer privacy. The period also featured enhancements to the PrivacyKey product, now capable of one-to-many search — meaning it can identify a person out of a large group quickly — without the need to store any biometric data.
Strategic partnerships played a role in the quarter’s results. Alongside NEC, management highlighted a new agreement with Prove, which operates a large-scale identity fraud platform. These partnerships are intended to enable faster market entry and broaden the user base, particularly by embedding authID’s solutions into third-party ecosystems. In addition, the company expanded its board with new members and advisors, aiming to support ongoing growth and value creation for stakeholders.
Operating expenses increased approximately 63.9% year-over-year, totaling $5.9 million, primarily reflecting investments in hiring, sales, and research and development. The company cited a $0.8 million provision for estimated credit losses, which reflects new assessments around credit risk for certain customer contracts. These expense increases, along with persistent net losses, highlight the pressure of scaling operations ahead of realized revenue. Notably, net loss (GAAP) widened to $4.4 million, compared to $3.3 million for Q2 2024. Net cash flows from operations (GAAP) showed an outflow of $8.4 million for the first half of 2025, with $8.3 million in cash on hand at the end of the quarter.
Share count increased, reaching 13.2 million on a diluted basis versus 9.5 million a year ago.
There were also challenges during the period. AuthID had to book new credit loss provisions, signaling some delays or potential issues with collecting revenue on certain customer contracts. Some signed deals faced slowdowns moving from contract to full go-live, impacting recognized bARR (non-GAAP) and creating challenges on the path toward more predictable recurring revenue.
Throughout the quarter, the company continued to emphasize its privacy-by-design approach. Compliance with privacy and biometric regulations is a key selling point, especially for large enterprises and public sector clients. There were no new regulatory hurdles cited for the period, but the continued assertion that the platform stores no biometric data is a core strategic differentiator.
Looking ahead: Outlook and potential risks
Management did not provide specific forward-looking financial guidance for revenue, margin, or profit for upcoming quarters or the full year. In public commentary earlier in the year, management referenced a bookings target 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 first six months of 2025, achieving this full-year goal would require a significant acceleration in booking large contracts and ramping deployments in the next two quarters.
For investors and stakeholders, areas to observe in coming quarters include the pace of contract conversions, expense management, success of partnership-driven sales, and resolution of credit risk exposures. Given the persistent high operating costs and net losses, the company’s ability to demonstrate path to sustained profitability and positive cash flow remains a critical watchpoint. AUID does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
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