DENVER, Aug. 14, 2025 (GLOBE NEWSWIRE) -- authID(R) (Nasdaq: AUID) ("authID" or the "Company"), a leading provider of biometric identity verification and authentication solutions, today reported financial and operating results for the second quarter ended June 30, 2025.

Second Quarter 2025 vs. Second Quarter 2024 Financial Summary

   -- Total revenue for the quarter increased significantly to a record $1.4 
      million, compared to $0.3 million a year ago. 
 
   -- Operating expenses were $5.9 million, compared to $3.6 million a year 
      ago. 
 
   -- Net loss was $4.5 million, or $0.33 per share, compared to a loss of $3.3 
      million, or $0.34 per share a year ago. 
 
   -- Adjusted EBITDA Loss of $3.4 million (non-GAAP measure as defined below), 
      compared with $2.5 million a year ago. 
 
   -- Gross bARR (Booked Annual Recurring Revenue) of $2.2 million (non-GAAP 
      measure as defined below), compared with $0.6 million a year ago. 

"In the second quarter, we delivered our highest quarterly revenue in the history of our business, further demonstrating that we are executing our plan to drive growth and value for shareholders," said Rhon Daguro, authID's Chief Executive Officer. "Overall, our strong second quarter results reflect both the dedication of our team and the progress we've made in strengthening our technology and expanding our market reach. More recently, we launched IDX, a major step forward in delivering value to our customers and significantly expanding our total addressable market. Alongside these achievements, combined with ongoing product enhancements and a robust sales pipeline, we believe we are positioned for continued momentum."

Recent Business and Operational Highlights

   -- Launched IDX, one of the biggest advances in the identity industry, with 
      NEC, the largest global biometric hardware provider. This launch 
      dramatically increases the Company's total addressable market in the 
      identity management industry. 
 
   -- Launched a paid live production trial agreement with a Fortune Global 500 
      company in the UK to deliver authID's solution in a controlled rollout. 
      Upon completion, authID expects to secure a longer-term agreement. 
 
   -- Signed an agreement with Prove, one of the largest identity fraud 
      platforms in the world, and are in the final stages of launching with the 
      Company's first joint customer. 
   -- Enhanced PrivacyKeyTM with a one-to-many search capability, giving 
      companies the ability to scan multiple faces, and launched it in 
      production pilots.  PrivacyKey offers our customers the fastest speed and 
      highest accuracy in the market. 
   -- Added highly qualified board members to strengthen authID's mission and 
      drive value creation for all stakeholders. 

Financial Results for the Second Quarter and Six Months Ended June 30, 2025

Total revenue for the three months ended June 30, 2025 was $1.4 million, compared with $0.3 million a year ago. Total revenue for the six months ended June 30, 2025 was $1.7 million, compared to $0.4 million in the year-ago period.

Operating expenses for the three months ended June 30, 2025, were $5.9 million, compared to $3.6 million a year ago. Operating expenses for the six months ended June 30, 2025 were $10.6 million, compared with $6.9 million in the year-ago period. The 2025 increase is primarily due to increased headcount and continued investment in sales and R&D. There was also an increase of $0.8M in provision for estimated credit loss expense, which represents the Company's updated assessment of credit risk as of June 30, 2025 related to certain customer contracts.

Net loss for the three months ended June 30, 2025 was $4.4 million, of which non-cash charges were $1.1 million, compared with a net loss of $3.3 million a year ago, of which non-cash charges were $0.8 million. Net loss for the six months ended June 30, 2025 was $8.7 million, of which non-cash charges were $1.6 million, compared with a net loss of $6.3 million a year ago, of which non-cash charges were $1.6 million.

Loss per share for the three months ended June 30, 2025 was $0.33, compared with $0.34 a year ago. Loss per share for the six months ended June 30, 2025 was $0.72, compared with $0.67 a year ago.

Adjusted EBITDA loss was $3.4 million for the three months ended June 30, 2025, compared with a loss of $2.5 million a year ago. Adjusted EBITDA loss was $7.3 million for the six months ended June 30, 2025, compared with a loss of $4.9 million a year ago. The increase in adjusted EBITDA loss is primarily driven by the increase in headcount investment in sales and R&D as well as the provision for estimated credit loss expense. Please refer to Table 1 for reconciliation of net loss to adjusted EBITDA (a non-GAAP measure).

Remaining Performance Obligation (RPO) as of June 30, 2025, was $13.8 million, of which $1.2 million is held as deferred revenue and $12.6 million is related to other non-cancellable contracted amounts, compared to RPO of $4.2 million as of June 30, 2024. The Company expects to recognize the full RPO of $13.8 million over the entire life of the contracts, which are typically signed with a 3-year term.

The gross amount of Booked Annual Recurring Revenue or bARR, (a non-GAAP measure, as defined below), signed in the second quarter of 2025 was $2.2 million, up from $0.63 million of gross bARR a year ago. The net amount of bARR was $1.9 million compared to $0.63 million of net bARR signed in the comparable period in 2024. The Q2 bARR is comprised of $0.9 million in Committed Annual Recurring Revenue (cARR) and $1.2 million in estimated Usage Above Commitments (UAC).

The gross amount of Booked Annual Recurring Revenue or bARR, signed in the six months ended June 30, 2025 was $2.2 million, up from $0.73 million of gross bARR a year ago. The net amount of bARR was $1.8 million compared to $0.73 million of net bARR signed in the comparable period in 2024. The 2025 bARR is comprised of $0.9 million in Committed Annual Recurring Revenue (cARR) and $1.3 million in estimated Usage Above Commitments (UAC).

The net amount of bARR reflects the deduction of the bARR of contracts previously included in reported bARR, due to certain customers experiencing delays in Production Go-Live timing and volume ramping.

The amount of Annual Recurring Revenue or ARR, (a non-GAAP measure, as defined below) as of June 30, 2025 was $5.8 million, compared to $1.1 million of ARR as of Q2 2024 and $1.2 million as of Q1 2025.

See below for further definition and explanation of ARR and bARR, non-GAAP measures.

Conference Call

A conference call and webcast will be held today at 5:00p.m. EDT, hosted by authID Chief Executive Officer Rhon Daguro and Chief Financial Officer Ed Sellitto to discuss the financial results and provide a corporate update.

To participate on the live conference call, please access this registration link and you will be provided with dial-in details. To avoid delays, participants are encouraged to dial into the conference call 15 minutes ahead of the scheduled start time. A live webcast of the call will be available at webcast registration and on the "Events & Presentations" page of the Company's website at investors.authid.ai. Only participants on the live conference call will be able to ask questions.

A replay of the event and a copy of the presentation will also be available for 90 days at authID's Investor Relations site.

About authID Inc.

authID (Nasdaq: AUID) ensures enterprises "Know Who's Behind the Device$(TM)$" for every customer or employee login and transaction through its easy-to-integrate, patented biometric identity platform. authID powers biometric identity proofing in 700ms, biometric authentication in 25ms, and account recovery with a fast, accurate, user-friendly experience. With our ground-breaking PrivacyKey Solution, authID provides a 1-to-1-billion false match rate, while storing no biometric data. authID stops fraud at onboarding, blocks deepfakes, prevents account takeover, and eliminates password risks and costs, through the fastest, most frictionless, and most accurate user identity experience demanded by today's digital ecosystem.

For further information please visit authid.ai

Investor Relations Contacts

authID Investor Relations

investor-relations@authID.ai

Media Contacts

Walter Fowler

1-631-334-3864

wfowler@nexttechcomms.com

Forward-Looking Statements

This Press Release includes "forward-looking statements." All statements other than statements of historical facts included herein, including, without limitation, those regarding the future results of operations, growth and sales, potential contract signings, booked Annual Recurring Revenue (bARR) (and its components cARR and UAC), Annual Recurring Revenue $(ARR)$, cash flow, cash position and financial position, business strategy, plans and objectives of management for future operations of both authID Inc. and its business partners, are forward-looking statements. Such forward-looking statements are based on a number of assumptions regarding authID's present and future business strategies, and the environment in which authID expects to operate in the future, which assumptions may or may not be fulfilled in practice. Actual results may vary materially from the results anticipated by these forward-looking statements as a result of a variety of risk factors, including the Company's ability to attract and retain customers; successful implementation of the services to be provided under new customer contracts and their adoption by customers' users; the Company's ability to compete effectively; changes in laws, regulations and practices; the increase in international tariffs and uncertainty over international trading conditions, changes in domestic and international economic and political conditions, the impact of the wars in Ukraine and the Middle East, inflationary pressures, changes in interest rates, and others. See the

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