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.

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.

JesterAI is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. All articles published by JesterAI are reviewed by our editorial team, and The Motley Fool takes ultimate responsibility for the content of this article. JesterAI cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Summary

• Windows Recall is back to record your activities on your Windows 11 PC so you can search them later. It’s still a privacy problem for many.
• Windows 11 Pro users can disable it permanently using Local Group Policy.
• Windows 11 Home users can prevent Recall from running by disabling Biometric authentication or device encryption, or not upgrading their PC.

Windows Recall, the AI-powered assistant that takes regular screenshots of your screen so that you can ask it about things you’ve done in the past, is back for good after (yet again) being recalled for privacy concerns. Here’s how Windows 11 Pro users can disable it (again, and this time hopefully forever).

A Windows Recall Refresher

Much has been written about the Windows Recall saga, but it’s worth a quick recap: Microsoft announced that Windows 11 would start taking regular screenshots while you use your PC so that it could be processed by AI, so that you can ask questions and look up your prior activity.

Everyone balked at this obvious security and privacy nightmare. It was then discovered that the screenshots (that would include your private PC usage, such as online banking, personal conversations, and so on) were stored unencrypted where any app could read them, justifying those concerns.

Microsoft then put Recall on hold while it made some tweaks and tried again. Then it came back, and more problems were pointed out, and back to the drawing board they went. Now, Recall is back again in its supposedly final form. Users can now opt specific applications and websites out of being recorded, but it’s almost certainly something that most won’t know about, or bother to do.

While there’s an option to turn off Recall in the Windows Settings app (and even though “off” is now supposed to be the default), some users seek a more permanent solution to make sure it doesn’t sneak back in, especially as Windows features have a strange habit of silently enabling themselves after operating system updates.

Of course, some people find this kind of thing useful and aren’t concerned about potential threats to their privacy. If you’re one of this enviable care-free group, you can skip the rest of this article and go and enjoy yourself. Seriously, ignorance is bliss when it comes to online privacy.

How to Disable Windows Recall on Windows 11 Pro

The Pro edition of Windows 11 lets you access the Local Group Policy Editor (so do the Enterprise and Education editions, but most people don’t use these at home). This tool lets you make tweaks and configuration changes to your Windows system beyond what is available in the Control Panel or Settings app.

Now that Recall is being rolled out for real this time, Group Policy settings are available to turn it off completely, and hopefully permanently. As Group Policy is used by many enterprise entities to control how data is used for compliancy reasons, it’s unlikely this setting will be overruled by a future update.

So, here’s how to disable Windows Recall using Local Group Policy: Right-click on the Start button, click Run, enter the command “gpedit.msc” and then press OK to launch the Local Group Policy Editor.

Then, navigate to User Configuration > Administrative Templates > Windows Components > Windows AI in the navigation tree to the left.

Double-click on the “Turn off saving snapshots for use with Recall” setting to edit it, change its value to Enabled, then click OK to close the change. Close the Local Group Policy Editor, and you’re done. Goodbye Recall.

If you’re curious about the impact of changing this setting, you can read the official Microsoft documentation for it.

Recall Workarounds for Windows 11 Home Users

If you haven’t shelled out the extra money for Windows 11 Pro, you can still make sure Recall can’t run with a few workarounds. You can turn off Biometric authentication or disable device encryption and BitLocker, all of which are system requirements for Recall to function.

To remove biometric authentication and disable Windows Recall, open the Windows Settings app from the Start menu, then navigate to Accounts > Sign-in Options. Select each biometric option, then click the “Remove” button.

Keep in mind that disabling improved authentication methods and disk encryption could be a bad idea if you’re using a portable device or work in a shared environment where your Windows PC isn’t always 100% under your control.

Another option is just not to upgrade your PC to meet Windows Recall’s lofty system requirements, which isn’t all that difficult.

Making Windows More Safe, Secure, and Private

If you want to make Windows 11 more private, here are 6 features to disable, and additional 11 privacy settings to change.

Your operating system isn’t the only thing trying to spy on you: Spyware and malware are still prolific, and hackers and scammers are finding new ways to trick you into giving them access to your devices and accounts (or just steal your money).

Stay vigilant, use best-in-class antivirus, and follow security best practices. You can also give Linux a try—it sometimes takes a little bit of tech know-how, but it puts you in full control of your computing experience.