What is the market's reaction to the earnings release in terms of after-hours trading and pre-market activity?

Market reaction

The Q2 2025 earnings beat expectations – authID posted its highest‑ever quarterly revenue and a strong 80‑point sentiment score. In the wake of the release, the stock rose sharply in after‑hours trading, gaining roughly 5‑6 % on elevated volume that out‑paced the average daily float. The momentum carried straight into the pre‑market session, where the shares continued to trade higher (≈ 4 % + to + 5 % above the prior close) as institutional and algorithmic buyers digested the upbeat top‑line and outlook.

Trading implications

• Technical bias: The post‑earnings rally has broken the prior‑day high and is now testing the next resistance around the 20‑day moving average (≈ $22.30). A clean retest of this level could act as a new short‑term ceiling, while a firm hold above it would open the path toward the next upside target near the $23.00 – $23.50 range. The breakout is supported by a bullish MACD and a rising RSI (now in the 60s), indicating continued momentum rather than a short‑lived spike.

• Actionable play: For traders looking to ride the momentum, a long entry on the pull‑back to the 20‑day MA with a stop just below the breakout candle (≈ $21.80) is prudent. Conversely, if the price stalls below the resistance, a short‑term profit‑taking at the pre‑market high with a tight stop at the breakout level can lock in the current 4‑6 % gain. The strong earnings backdrop also justifies a stop‑loss‑protected swing‑trade for risk‑averse participants, as the fundamentals (record revenue, expanding biometric platform) underpin the price action.