authID Inc. (AUID): Business Model Canvas [Dec-2025 Updated]

You're trying to map out authID Inc.'s actual business engine, and honestly, the late 2025 numbers show a classic high-growth/high-burn scenario you see often in deep-tech security. While the value proposition-stopping AI fraud with patented, 700ms biometric verification-is compelling, the financial reality is that Operating Expenses totaled $5.1 million in Q3 2025, resulting in a negative net revenue of $(0.1) million for the quarter, even with $1.7 million in Annual Recurring Revenue. The key question for us is whether the $3.6 million in Remaining Performance Obligation and the $8.3 million cash balance (as of Q2 2025) are enough runway to convert those enterprise sales cycles into sustainable profit; let's dive into the full Business Model Canvas to see exactly how they plan to bridge that gap.

authID Inc. (AUID) - Canvas Business Model: Key Partnerships

You're looking at how authID Inc. is building out its market access and technology stack through strategic alliances as of late 2025. These partnerships are critical, especially given the company's Q3 2025 net revenue of $(0.1) million, which shows the immediate revenue impact from contract adjustments while the focus remains on scaling through these channels.

NEC Networks & System Integration (NESIC) for platform embedding

The strategic partnership with NEC Networks & System Integration Corporation (NESIC), a subsidiary of NEC Corporation, is a major play for global reach, particularly in Japan. authID launched its Identity Exchange (IDX) platform in collaboration with NESIC on July 31, 2025. This alliance means authID technology is now embedded directly into NESIC's Symphonict Trust framework. The initial focus areas for this embedding include enterprise workforce authentication across devices and contractor/vendor onboarding. authID signed an agreement for the first phase of a multi-phase strategy to integrate its identity verification and biometric authentication into this platform, targeting the Japanese market for both enterprise workforce and consumer onboarding.

Prove Identity, integrating PrivacyKey for biometric authentication

Partnering with Prove, which already powers identity verification for many of the world's most trusted financial institutions, serves as significant validation for authID Inc. Prove selected authID's PrivacyKey product to be the biometric authentication solution for its next-generation platform. This integration embeds authID's Proof^TM, Verified^TM, and PrivacyKey^TM technologies directly into Prove's offering. This move directly targets the growing threat of AI-generated deepfake fraud and synthetic identities. The Annual Recurring Revenue (ARR) as of Q3 2025 stood at $1.7 million, and these high-assurance partnerships are key to achieving the recalibrated Booked Annual Recurring Revenue (bARR) target of $6 million for 2025.

MajorKey Technologies for Microsoft Entra customer access

The alliance with MajorKey Technologies, a certified Microsoft Entra Suite services partner, opens a direct channel into the vast Microsoft ecosystem. This partnership, announced September 11, 2025, brings authID's Proof technology to Microsoft customers globally to combat AI-driven fraud, especially in remote hiring. Gartner forecasts that by 2028, one in four job candidate profiles globally could be fake, making this integration timely. authID's Proof technology delivers biometric identity verification in just 700 milliseconds, detecting deepfake attempts. MajorKey subsequently announced IDProof+, developed in collaboration with authID Inc.

Channel Partner Ecosystem and Financial Institution Reach

authID Inc. relies on a broad network to expand its market footprint. The company reports having over 25 partners, many of which are established category leaders in their respective markets. This network is essential for driving the sales pipeline, which saw a gross bARR signed in Q3 2025 of $0.2 million.

A concrete example of this channel strategy is the October 2025 agreement with a digital infrastructure platform that serves the financial sector. This fintech plans to integrate authID's Proof and PrivacyKey technologies into its universal onboarding and customer-management platform. This single partnership extends secure identity verification and reauthentication capabilities to:

• More than 100 banks.
• Banks with assets ranging from $10 billion to $150 billion.

The first bank under this new fintech agreement is on target to go live before the end of 2025.

Here's a quick look at the key partnership integrations and their associated metrics:

The company's Remaining Performance Obligation (RPO) as of September 30, 2025, stood at $3.6 million, which reflects the contracted value expected to be recognized from these and other customer agreements over the life of the contracts.

authID Inc. (AUID) - Canvas Business Model: Key Activities

You're looking at the core engine driving authID Inc. (AUID) right now-the things they absolutely must do well to make this business work, especially given the recent financial adjustments. Honestly, the focus has clearly shifted to landing those big enterprise logos, but that requires heavy lifting across the board.

Research and Development (R&D) of biometric and Agentic AI security

The investment in R&D is visible in the operating expense structure. For the third quarter of 2025, operating expenses hit $5.1 million, which is a jump from the $3.8 million reported in Q3 2024. This year-over-year increase is explicitly tied to increased headcount and continued investment in both sales and R&D. Looking at the longer nine-month period ending September 30, 2025, operating expenses totaled $15.7 million, up significantly from $10.7 million in the prior year period. This spend fuels the development of products like IDX, which management believes will lead the Agentic AI-driven enterprise category by providing accountability, compliance, security, and audit capabilities.

Enterprise sales execution with long, high-value deal cycles

Executing enterprise sales is a major activity, but the data shows the cycles are proving to be a near-term headwind. authID Inc. (AUID) had to significantly recalibrate its expectations; the booked annual recurring revenue (bARR) target for 2025 was reduced from an initial goal of $18 million down to $6 million. This adjustment directly reflects the longer sales cycles encountered with these large enterprise deals. In Q3 2025 specifically, the company booked $200,000 in new annual recurring revenue from two large enterprise customers and two smaller ones. Still, the gross amount of bARR signed in that quarter was only $0.2 million, a notable drop from the $1.15 million signed in Q3 2024. This pressure on new bookings is also reflected in the Remaining Performance Obligation (RPO), which stood at $3.6 million as of September 30, 2025, slightly below the $3.8 million reported a year prior.

Maintaining and scaling the cloud-based identity platform

Keeping the platform running and growing its recurring revenue base is critical. The Annual Recurring Revenue (ARR) metric shows progress, climbing to $1.7 million as of Q3 2025, up from $1.0 million at the same point in 2024. This growth reflects customers going live on the platform. The structure of that booked revenue is also important for understanding platform utilization.

Here's a quick look at the components of the reported bARR in Q3 2025:

The platform's ability to handle usage above minimum commitments (UAC) shows real-world adoption beyond the initial contract floor.

Partner enablement and technical integration support

To scale without having to build every single sales channel internally, authID Inc. (AUID) focuses heavily on its partners. The company reports having strong partnerships with over 25 established category leaders, naming NSIC, Prove, and Major Key as examples. These integrations are key to expanding reach. For instance, one major partnership involves a fintech platform that powers more than 150 banks; this platform contracted to embed authID's Proof and PrivacyKey technologies into its universal onboarding system, targeting go-live with the first bank this year.

Securing and managing patented technology (e.g., PrivacyKey)

Protecting the core intellectual property is a foundational activity. authID Inc. (AUID) relies on its patented biometric identity platform to offer a high level of assurance. A key feature of this technology, specifically PrivacyKey, is its ability to eliminate the storage of personal information after each transaction, which is central to its privacy-preserving claims. The technology boasts a 1-in-1-billion False Positive Rate, which is the standard they use to communicate the highest level of assurance to enterprises. Furthermore, Prove, a major identity security platform, selected PrivacyKey as the biometric authentication solution for its next-generation platform.

You should track R&D spend relative to the new bARR target reduction; Finance: draft a variance analysis comparing Q3 R&D spend to the revised 2025 bARR goal by next Tuesday.

authID Inc. (AUID) - Canvas Business Model: Key Resources

You're building a security platform, so your core assets are the intellectual property and the people who develop and sell it. Here's the breakdown of what authID Inc. (AUID) is relying on as of late 2025.

The foundation of authID Inc. (AUID)'s offering is its patented biometric identity platform, which includes the IDX and PrivacyKey technologies. The IDX platform is specifically positioned to secure the distributed workforce of employees, contractors, and vendors, while also bringing authorization and accountability for AI agents. This technology stack is a critical resource for maintaining market differentiation.

The performance metrics tied to this proprietary technology are key differentiators. authID Inc. (AUID) leverages a 1-in-1-billion False Positive Rate technology, which provides a high level of assurance for identity verification. Furthermore, the system delivers biometric identity processing in as fast as 700ms, coupled with 1-to-many sub-second search capability. These performance statistics are concrete resources that underpin the value proposition.

Investment in human capital is clearly visible in the operating expense structure, signaling a focus on scaling both the technology and its market penetration. The increase in operating expenses is directly attributed to growing headcount in sales and R&D. For the nine months ended September 30, 2025, operating expenses totaled $15.7 million, a significant increase from $10.7 million in the year-ago period. For the third quarter alone, operating expenses reached $5.1 million, up from $3.8 million a year prior.

The company's financial commitments from customers represent a tangible resource base for future revenue recognition. The Remaining Performance Obligation (RPO) as of September 30, 2025, stood at $3.6 million. This figure is slightly below the RPO of $3.8 million recorded as of September 30, 2024, reflecting revenue recognition and adjustments from earlier contracts.

Regarding liquid resources, the cash position reflects recent capital activity. As of September 30, 2025, the cash balance on the condensed consolidated balance sheets was $4,899,658. This compares to a cash balance of $8,471,561 at December 31, 2024. The company also announced a registered direct offering of approximately $3,675,000 on November 21, 2025, which would impact the year-end cash position.

Here is a summary of the key financial and operational resources as of late 2025:

The composition of the RPO as of September 30, 2025, shows how future recognized revenue is structured:

• RPO held as deferred revenue: $0.5 million
• RPO related to other non-cancellable contracted amounts: $3.1 million

This intellectual property and the associated human capital are the primary assets supporting authID Inc. (AUID)'s strategy to secure enterprise identity needs.

authID Inc. (AUID) - Canvas Business Model: Value Propositions

You're looking at the core value authID Inc. (AUID) delivers to its customers-the reasons they choose this platform over alternatives, especially as deepfake threats ramp up.

High-assurance biometric verification to stop deepfakes and AI fraud.

authID Inc. (AUID) provides a multi-layered defense against fraud, which is critical when bad actors use synthetic identities. The platform is designed to stop fraud right at the point of onboarding and prevent account takeover later on. This high assurance is backed by concrete performance metrics.

The platform achieves an industry-leading false match rate of 1-in-1 billion. This accuracy level is a key differentiator against less precise verification methods.

Fast identity proofing in 700ms for user onboarding.

Speed matters for user experience; if onboarding drags, churn risk rises. authID Inc. (AUID) delivers identity processing for onboarding in just 700ms. For subsequent daily authentication, the Verified solution operates even faster, at 25ms. This speed is what helps organizations grow by making the process frictionless for legitimate users.

Privacy-preserving authentication (PrivacyKey stores no biometric data).

The introduction of PrivacyKey™ directly addresses the liability and compliance concerns that have historically slowed biometric adoption. This technology is central to their value proposition, ensuring regulatory adherence across frameworks like BIPA, GDPR, and CCPA.

The core mechanism is cryptographic, not storage-based. The system transforms the facial image into an elliptical public/private key pair; only the public key is retained. The private key only exists during the authentication event and is deleted immediately after. This means authID Inc. (AUID) stores no biometric data whatsoever.

Securing distributed workforces and AI agents (IDX platform).

The Identity Exchange (IDX) platform extends the value proposition beyond simple customer onboarding to enterprise operational security. It is built to provide accountability, compliance, and security for the Agentic AI-driven enterprise. This secures distributed workforces, which includes employees, contractors, and vendors, and brings authorization to AI agents.

The platform is being adopted by major players, evidenced by a full production agreement signed with a top 20 global retailer based in Europe for securing their back office workforce. Furthermore, authID Inc. (AUID) has strong partnerships with over 25 established category leaders, including Prove and Major Key.

Replacing passwords with a biometric root of trust.

By establishing a biometric root of trust for each user, the platform eliminates the risks and costs associated with passwords and legacy multi-factor authentication methods like KBA or SMS-based 2FA. This is the foundation for passwordless authentication. The company's most consistent tagline reflects this: Know Who's Behind the Device™.

Here's a quick look at the business context supporting these value propositions as of late 2025:

The market is clearly demanding these features, as shown by the focus on enterprise adoption and the strategic importance of PrivacyKey. You can see the product focus in the key areas they emphasize:

• Stopping deepfakes and AI fraud.
• Achieving 1-in-1 billion false match rate.
• Delivering identity proofing in 700ms.
• Ensuring compliance by storing zero biometric data.
• Securing distributed workforces via the IDX platform.
• Eliminating password-based risks.

For instance, one recent deployment with an innovative technology organization in the criminal justice sector saw a quick deployment timeline of just two weeks. This shows the operational value of their architecture.

The financial reality is that this investment in technology is expensive right now; the net loss for the nine months ended September 30, 2025, was substantial, but the ARR base is growing, moving from $1.0 million in Q3 2024 to $1.7 million in Q3 2025. The Remaining Performance Obligation (RPO) stood at $3.6 million as of September 30, 2025.

Finance: draft 13-week cash view by Friday.

authID Inc. (AUID) - Canvas Business Model: Customer Relationships

You're navigating a market where enterprise deals take time, and authID Inc. (AUID) is clearly leaning into that reality by restructuring its customer engagement model. The focus is squarely on landing the biggest logos, which means the relationship strategy has to support longer, more complex sales cycles.

Dedicated enterprise sales team for large accounts

authID Inc. (AUID) has made significant internal investments to support its enterprise push. The operating expenses for Q3 2025 reflected this, showing a year-over-year increase primarily driven by increased headcount investment specifically in sales and R&D to execute this enterprise strategy. The target customer segment has strategically shifted from the initial 'Fast 100' companies to the 'FAT 100' clients. The math on these deals is substantial; management indicated that these large enterprise deal sizes are at least $1 million and above, with one potential opportunity cited that could cover the entire revised 2025 bookings target alone. This dedication to large accounts is evident in the Q3 2025 booking breakdown, which included two large enterprise customers among the four total new contracts signed.

The reality of this focus is reflected in the revised outlook. The company's Booked Annual Recurring Revenue (bARR) target for 2025 was reduced to $6 million from an initial $18 million, which management directly attributed to the longer sales cycles associated with these enterprise deals. Still, the pipeline remains robust, with authID Inc. (AUID) actively engaged in closing over $20 million in bARR from active enterprise prospects as of late 2025.

Here's a quick look at the new business captured in the third quarter of 2025:

Partner-led integration and deployment services

Customer relationships are heavily augmented by a network of established channel partners. authID Inc. (AUID) has over 25 partners, many described as category leaders in their respective markets. These alliances are crucial for integration and deployment scale. For instance, expanded collaborations with partners like NESIC, Prove, and MajorKey have led to joint customer wins. The agreement with Prove, one of the largest identity fraud platforms in the world, is expected to start showing revenue impact in Q3 2025. Furthermore, a partnership with NEC, a global biometric hardware provider, is aimed at demonstrating interoperability of reusable identity across two countries without changes to incumbent systems, which is a significant deployment enabler for new enterprise clients.

High-touch, consultative approach for complex enterprise deals

The consultative nature of the sales process is a direct response to the complexity of the deals being pursued. The longer sales timelines are a known factor, but the company is investing headcount early in the sales cycle to support these complex conversations. This high-touch engagement is necessary to secure wins like the one with a U.K.-based Fortune Global 500 customer, which is using the PrivacyKey product to protect its back-office employee workforce and call centers. The company is focused on bringing these market-leading organization deals over the finish line as 2025 concludes.

Performance-based production pilots to shorten time-to-revenue

To mitigate the risk of long sales cycles stalling revenue recognition, authID Inc. (AUID) has made a practical shift in its go-to-market approach. The company is now emphasizing performance-based production level pilots over traditional proof-of-concept (POC) trials. This strategy is designed to shorten the time to revenue because the integration work required for a full production environment is completed during the pilot phase. Once the pilot concludes successfully, transitioning the customer environment from pilot to full production becomes far easier since the necessary integration is already in place. This approach requires a full level of effort from the authID Inc. (AUID) teams early on, but it has proven effective in earning customer trust and accelerating the path to committed revenue.

• Transitioning from POC trials to paid pilots accelerates time-to-revenue.
• Integration is established during the pilot phase.
• This shortens the go-live timeline post-pilot completion.

Finance: draft 13-week cash view by Friday.

authID Inc. (AUID) - Canvas Business Model: Channels

You're looking at how authID Inc. gets its identity verification and authentication technology into the hands of enterprise users. The strategy relies heavily on embedding within established platforms and direct pursuit of large clients, which explains some of the near-term financial volatility you see in the Q3 2025 results.

The channel strategy is built on validation from major industry players. authID has established relationships with over 25 partners, many of which are leaders in their respective categories. This ecosystem approach is key to scaling without an equivalent scaling of direct sales headcount.

Key technology partnerships serve as force multipliers:

• The partnership with Prove, a major identity security platform, saw Prove select authID's PrivacyKey product for its next-generation platform as of June 2025.
• authID technology is now embedded inside NESIC's platform, a subsidiary of NEC, for identity verification and employee onboarding.
• A joint customer resulting from the Prove engagement, a fintech company providing digital infrastructure for more than 150 banks, contracted directly with authID.

Here's a snapshot of the key channel relationships and associated metrics as of late 2025:

The System Integrator/Reseller channel is seeing traction, particularly around major platforms. For instance, MajorKey, described as one of the largest Microsoft providers of identity solutions and services, launched its IDProof+ service based on authID's core technology. This shows a clear path to reach Microsoft-centric enterprise environments.

Direct sales efforts are intentionally focused on large enterprise clients, what management refers to as the 'FAT 100,' a shift from earlier focus on 'Fast 100' companies. This strategy is expensive in the short term, as evidenced by the operating expenses rising to $5.1 million in Q3 2025. The sales cycles are longer; management recalibrated the 2025 Booked Annual Recurring Revenue (bARR) target from an initial $18 million down to a more conservative $6 million. Still, the pipeline remains significant, with over $20 million in bARR actively being engaged in closing as of the Q3 2025 earnings call.

The underlying technology platform itself is a channel advantage due to its speed and ease of integration. The cloud-based platform supports rapid deployment, with one recent client in the correctional sector leveraging its quick 2-week deployment capability to replace a homegrown solution. This speed is critical for adoption. Furthermore, the platform delivers:

• Biometric identity proofing in 700ms.
• Biometric authentication in 25ms.
• An industry-leading assurance level targeting a 1-in-1-billion False Positive Rate.

If onboarding takes 14+ days, churn risk rises.

Finance: draft 13-week cash view by Friday.

authID Inc. (AUID) - Canvas Business Model: Customer Segments

You're looking at authID Inc.'s customer base as of late 2025, and the strategy is clearly tilting toward bigger, more established players. The company has made a deliberate pivot, moving away from the initial focus on 'Fast 100' companies to target what they call 'FAT 100' clients, which means the Large Enterprise segment is now the priority for workforce and customer identity verification.

This focus is reflected in the recent bookings. In the third quarter of 2025, authID Inc. booked new business totaling $200,000 in Booked Annual Recurring Revenue (bARR) from two large enterprise customers and two smaller ones. This is the core of where you see the value proposition landing right now.

The platform is designed to serve two main stakeholder groups across these segments: enterprise workforces and customer-facing applications. The technology boasts a 1-in-1-billion False Positive Rate, which is the kind of assurance needed when securing high-value enterprise access.

Here's a look at the key segments you asked about and the hard numbers we have from the Q3 2025 reporting period:

The company's success in landing these larger accounts is also supported by its network. authID Inc. has established strong partnerships with over 25 established category leaders, including Prove and MajorKey, which help drive joint customer wins and product integration.

For the segments where specific contract numbers aren't broken out, like Criminal Justice and Distance Learning, you can infer their inclusion based on the overall enterprise security mandate and the company's stated goal to provide identity verification for every customer or employee login and transaction.

You should keep an eye on how the new product, IDX, which targets Agentic AI security, integrates with these customer types, as that's the next frontier for enterprise adoption:

• Focus on workforce and customer identity.
• Leveraging partnerships with Prove and MajorKey.
• Securing clients in payroll technology and AI chip manufacturing.
• The platform provides audit trails for AI agents.

The total Annual Recurring Revenue (ARR) as of September 30, 2025, stood at $1.7 million, a solid increase from $1.0 million in Q3 2024, showing that the enterprise deals, even with recent headwinds, are building a larger base. Finance: draft 13-week cash view by Friday.

authID Inc. (AUID) - Canvas Business Model: Cost Structure

You're looking at where authID Inc. is putting its cash to work, and right now, it's all about scaling the team to chase those big enterprise deals. The cost structure is dominated by getting the business running, which shows up clearly in the Operating Expenses.

The dominant cost is Operating Expenses, which hit $5.1 million for the third quarter ending September 30, 2025. That's a noticeable jump from the $3.8 million seen in the third quarter of 2024. If you look at the year-to-date spend, the nine months ending September 30, 2025, saw Operating Expenses total $15.7 million, up from $10.7 million in the prior year period. Here's the quick math on that quarterly spend:

This increase isn't just inflation; it's intentional spending. The significant investment in sales and R&D headcount for growth is the main driver behind the higher Adjusted EBITDA Loss, which was $4.1 million in Q3 2025 compared to a $2.9 million loss a year ago. They are hiring ahead of the revenue curve to secure those larger, more complex enterprise contracts, even if it means a wider near-term loss. What this estimate hides, though, is the exact split between Sales and R&D personnel costs.

Beyond personnel, the operational engine requires significant resources. This includes the technology infrastructure and cloud hosting costs necessary to run their patented biometric identity platform and support new product rollouts like the Identity Exchange (IDX). While specific cloud spend isn't broken out, it scales directly with usage and platform expansion.

Finally, you have the baseline General and Administrative (G&A) overhead. This covers the necessary corporate functions-finance, legal, HR-that support the entire organization. It's baked into the total Operating Expenses, but it represents the fixed cost of maintaining the corporate structure while the company focuses on enterprise sales execution. You can see the overall pressure on profitability when OpEx is running this high:

• Net Loss for Q3 2025 was $5.2 million.
• Non-cash charges included in that loss were $1.1 million for the quarter.
• The nine-month net loss reached $13.9 million.

Finance: draft 13-week cash view by Friday.

authID Inc. (AUID) - Canvas Business Model: Revenue Streams

You're looking at the engine room of authID Inc. (AUID), specifically how they bring in money as of late 2025. It's a story of subscription momentum battling short-term accounting headwinds, which is defintely something you need to watch closely.

The core metric for the subscription side is the Annual Recurring Revenue (ARR) from their identity verification contracts. As of the end of the third quarter of 2025, authID Inc. reported that the ARR stood at $1.7 million. This is a solid year-over-year increase, up from $1.0 million as of Q3 2024, showing progress in locking in longer-term customer value. Still, you have to factor in the volatility of the current quarter's recognized revenue.

For the third quarter of 2025, the company reported a Gross revenue of $0.6 million. However, the final recognized revenue, the Net revenue, was negative at $(0.1) million. Honestly, this negative figure is the key near-term risk you need to track; it resulted from approximately $0.7 million in customer discounts and concessions recognized during the quarter, which overshadowed the gross sales. If onboarding takes 14+ days, churn risk rises, and these concessions show that risk is real right now.

The revenue streams are primarily segmented into two components when new business is booked, which is measured by Booked Annual Recurring Revenue (bARR). For Q3 2025, the gross bARR signed was only $0.2 million. This new business is broken down into the following streams:

• The portion derived from fixed license fees is the Committed Annual Recurring Revenue (cARR), which accounted for $0.11 million of the Q3 bookings.
• The second part is the Usage-based fees component, specifically the estimated usage above the minimum commitment (UAC), which was $0.08 million.

Here's the quick math on the components of the Q3 2025 Booked ARR:

The company's strategy shift towards larger enterprise clients, the 'FAT 100,' has impacted near-term bookings due to longer sales cycles. This led management to recalibrate expectations; the original 2025 Booked ARR target was reduced from $18 million down to a new target of $6 million. You need to watch Q4 execution closely to see if they can rebuild that pipeline momentum. Finance: draft 13-week cash view by Friday.