Highlights:
| • | 2025 Revenue: | ||||
| • | 2026 Outlook: | Solid revenue growth + improved bottom line | |||
| • | Preliminary Q1’26 Revenue: | ||||
| • | 2025 Cash Position: |
BIO-key CEO,
“Both hardware and services revenues increased in 2025 due to growth in our customer base and licensed users. Based on expanding customer deployments and a broadening pipeline of opportunities, we expect growth in software license fees and overall revenues in 2026. We are off to a strong start with preliminary Q1’26 revenue expected to grow 37% over Q1’25 to approximately
Foreign Military/Defense and Financial Customer Traction
“We are seeing particular strength with foreign government, defense and financial customers that appreciate the substantial security and value provided by our biometric solutions. The traction we see is also benefited by more supportive regulatory frameworks in many foreign jurisdictions, as well as their greater proximity to escalating global tensions.
“We launched our Defense & Intelligence Cybersecurity Initiative in 2025 given expectations for increased global defense spending, particularly in
“We secured a
“Outside of defense, we are expanding our geographic reach and customer base with significant new partnerships in
“The financial sector has provided another area of strength for BIO-key as a long-standing foreign retail bank executed a
“Turning to the
Cost Management and Financial Strength
“On the cost side, we further trimmed operating expenses in 2025, reducing total SG&A expense by
“In summary, building off our 2025 accomplishments, we are off to a strong start in 2026 with momentum in several markets. We expect top-line expansion combined with expense management to advance our goal of reaching break-even in 2026. Given the timing of large orders, our financial performance will likely fluctuate on a quarterly basis; however, we are very excited about our outlook for 2026 and beyond.”
Recent Business Progress
- Government Sector: BIO-key Partnered with TD Synnex Public Sector (DLT) to Deliver IAM Solutions to the
U.S. Public Sector, and BIO-key and Visualforma were Awarded a Contract to Secure Digital Identities for a Large Portuguese Municipality. - Defense Sector: BIO-key Surpassed
$2M in Military/Defense Sales over the Latest Twelve Months through Follow-on Orders and a Significant Middle East Defense Sector Deployment. - Financial Sector: Secured
$1.04M one-year license renewal with a foreign bank for Biometric Identity Solution and partnered with Run-Level to deliver Identity Security Solution Across Mozambique’s National Payments Infrastructure. - Expanded International Reach via
New Partners : - New Product Introductions: ECOID III Fingerprint Scanner (FBI FAB 20 Certified) and Passwordless Innovations Debuted at 2025 Gartner® IAM Summit.
Financial Review
Please note that the audit our 2025 financial statements has not been completed by our independent registered public accounting firm as of the date of this press release and results are therefore subject to change.
2025 revenues decreased approximately 12% to
Gross profit declined to
BIO-key reduced its operating expenses by
Reflecting lower gross profit, offset by lower operating expenses, BIO-key’s 2025 net loss increased to
Balance Sheet
BIO-key’s book value increased to
| Conference Call Details | ||
| Date / Time: | Tuesday, | |
| Call Dial In #: | 1-877-418-5460 | |
| Live Webcast / Replay: | Webcast & Replay Link – Available for 3 months. | |
| Audio Replay: | 1-877-344-7529 | |
About
BIO-key is revolutionizing authentication and cybersecurity with biometric-centric, multi-factor identity and access management (IAM) software securing access for over forty million users. BIO-key allows customers to choose the right authentication factors for diverse use cases, including phoneless, tokenless, and passwordless biometric options. Its cloud-hosted or on-premise PortalGuard IAM solution provides cost-effective, easy-to-deploy, convenient, and secure access to computers, information, applications, and high-value transactions.
BIO-key Safe Harbor Statement
All statements contained in this press release other than statements of historical facts are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 (the "Act"). The words "estimate," "project," "intends," "expects," "anticipates," "believes" and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are made based on management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Act. These statements are not guarantees of future performance or events and are subject to risks and uncertainties that may cause actual results to differ materially from those included within or implied by such forward-looking statements. These risks and uncertainties include, without limitation, our history of losses and limited revenue; our ability to raise additional capital to satisfy working capital needs; our ability to continue as a going concern; our ability to protect our intellectual property; changes in business conditions; changes in our sales strategy and product development plans; changes in the marketplace; continued services of our executive management team; security breaches; competition in the biometric technology and identity access management industries; market acceptance of biometric products generally and our products under development; our ability to convert sales opportunities to customer contracts; our ability to expand into
| Engage with BIO-key | ||
| Facebook – Corporate: | https://www.facebook.com/BIOkeyInternational/ | |
| LinkedIn – Corporate: | https://www.linkedin.com/company/bio-key-international | |
| X – Corporate: | @BIOkeyIntl | |
| X – Investors: | @BIO_keyIR | |
| BIO_keyIR | ||
Investor Contacts
Catalyst IR
BKYI@catalyst-ir.com or 212-924-9800
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenues | ||||||||||||||||
| Services | $ | 309,400 | $ | 344,444 | $ | 1,172,107 | $ | 1,108,506 | ||||||||
| License fees | 758,066 | 1,023,701 | 3,580,862 | 5,189,370 | ||||||||||||
| Hardware | 173,879 | 94,133 | 1,342,148 | 631,695 | ||||||||||||
| Total revenues | 1,241,345 | 1,462,278 | 6,095,117 | 6,929,571 | ||||||||||||
| Costs and other expenses | ||||||||||||||||
| Cost of services | 89,997 | 73,317 | 387,144 | 396,274 | ||||||||||||
| Cost of license fees | 76,045 | 146,120 | 309,829 | 589,505 | ||||||||||||
| Cost of hardware | 109,689 | 255,927 | 1,189,464 | 516,611 | ||||||||||||
| Cost of hardware reserve | (4,360 | ) | (213,005 | ) | (513,400 | ) | (213,005 | ) | ||||||||
| Total costs and other expenses | 271,371 | 262,359 | 1,373,037 | 1,289,385 | ||||||||||||
| Gross profit | 969,974 | 1,199,919 | 4,722,080 | 5,640,186 | ||||||||||||
| Operating Expenses | ||||||||||||||||
| Selling, general and administrative | 1,918,856 | 1,807,383 | 6,372,218 | 7,140,147 | ||||||||||||
| Research, development and engineering | 694,471 | 660,150 | 2,609,893 | 2,511,080 | ||||||||||||
| Total Operating expenses | 2,613,327 | 2,467,533 | 8,982,111 | 9,651,227 | ||||||||||||
| Operating loss | (1,643.353 | ) | (1,267,616 | ) | (4,260,031 | ) | (4,011,041 | ) | ||||||||
| Other income (expense) | ||||||||||||||||
| Interest income | 1,178 | 57 | 3,787 | 110 | ||||||||||||
| Loss on foreign currency transactions | – | (13,004 | ) | – | (13,004 | ) | ||||||||||
| Loan fee amortization | (61,000 | ) | (60,000 | ) | (256,833 | ) | (124,000 | ) | ||||||||
| Interest expense | (1,905 | ) | (66,932 | ) | (60,793 | ) | (175,755 | ) | ||||||||
| Total other income (expense) | (61,727 | ) | (139,879 | ) | (313,839 | ) | (312,649 | ) | ||||||||
| Loss before provision for income taxes (tax benefits) | (1,705,080 | ) | (1,407,495 | ) | (4,573,870 | ) | (4,323,690 | ) | ||||||||
| Provision for income taxes (tax benefits) | 16,500 | 22,998 | (16,500 | ) | 22,998 | |||||||||||
| Net loss | $ | (1,721.580 | ) | $ | (1,384,498 | ) | $ | (4,590,370 | ) | $ | (4,300,692 | ) | ||||
| Comprehensive loss: | ||||||||||||||||
| Net loss | $ | (1,721,580 | ) | $ | (1,384,498 | ) | $ | (4,590,370 | ) | $ | (4,300,692 | ) | ||||
| Other comprehensive income – Foreign translation adjustment | 28,047 | (25,409 | ) | 19,745 | 26,469 | |||||||||||
| Comprehensive loss | $ | (1,693,533 | ) | $ | (1,409,907 | ) | $ | (4,570,625 | ) | $ | (4,274,223 | ) | ||||
| Basic and Diluted Loss per Common Share | $ | (0.19 | ) | $ | (0.46 | ) | $ | (0.69 | ) | $ | (2.09 | ) | ||||
| Weighted Average Common Shares Outstanding | ||||||||||||||||
| Basic and diluted | 9,293,581 | 3,032,240 | 6,647,702 | 2,059,884 | ||||||||||||
Please note that the audit our 2025 financial statements has not been completed by our independent registered public accounting firm as of the date of this press release and results are therefore subject to change.
CONSOLIDATED BALANCE SHEETS | ||||||||
| 2025 | 2024 | |||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 2,694,663 | $ | 437,604 | ||||
| Accounts receivable, net | 1,243,810 | 718,229 | ||||||
| Due from factor | – | 74,170 | ||||||
| Inventory, net of reserve | 370,879 | 378,307 | ||||||
| Prepaid expenses and other | 290,143 | 278,648 | ||||||
| Total current assets | 4,599,495 | 1,886,958 | ||||||
| Equipment and leasehold improvements, net | 67,751 | 140,198 | ||||||
| Capitalized contract costs, net | 311,591 | 409,426 | ||||||
| Deposits and other assets | 7,976 | 7,976 | ||||||
| Operating lease right-of-use assets | 47,953 | 73,372 | ||||||
| Investments | 5,000,000 | 5,000,000 | ||||||
| Intangible assets, net | 830,357 | 1,097,630 | ||||||
| Total non-current assets | 6,265,628 | 6,728,602 | ||||||
| TOTAL ASSETS | $ | 10,865,123 | $ | 8,615,560 | ||||
| LIABILITIES | ||||||||
| Accounts payable | $ | 516,468 | $ | 818,187 | ||||
| Accrued liabilities | 1,324,819 | 1,278,732 | ||||||
| Note payable | 604,102 | 1,525,977 | ||||||
| Government loan – BBVA Bank, current portion | 50,530 | 132,731 | ||||||
| Deferred revenue – current | 572,513 | 773,267 | ||||||
| Operating lease liabilities, current portion | 27,728 | 24,642 | ||||||
| Total current liabilities | 3,096,160 | 4,553,536 | ||||||
| Deferred revenue, net of current portion | 62,584 | 196,237 | ||||||
| Deferred tax liability | 16,500 | – | ||||||
| Government loan – BBVA Bank, net of current portion | – | 44,762 | ||||||
| Operating lease liabilities, net of current portion | 21,266 | 48,994 | ||||||
| Total non-current liabilities | 100,350 | 289,993 | ||||||
| TOTAL LIABILITIES | 3,196,510 | 4,843,529 | ||||||
| Commitments | ||||||||
| STOCKHOLDERS’ EQUITY | ||||||||
| Common stock — authorized, 170,000,000 shares; issued and outstanding; 10,852,118 and 3,715,483 of | 1,085 | 372 | ||||||
| Additional paid-in capital | 141,496,765 | 133,030,271 | ||||||
| Accumulated other comprehensive income | 69,035 | 49,290 | ||||||
| Accumulated deficit | (133,898,272 | ) | (129,307,902 | ) | ||||
| TOTAL STOCKHOLDERS’ EQUITY | 7,668,613 | 3,772,031 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 10,865,123 | $ | 8,615,560 | ||||
Please note that the audit our 2025 financial statements has not been completed by our independent registered public accounting firm as of the date of this press release and results are therefore subject to change.
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| Years ended | ||||||||
| 2025 | 2024 | |||||||
| CASH FLOW FROM OPERATING ACTIVITIES: | ||||||||
| Net loss | $ | (4,590,370 | ) | $ | (4,300,692 | ) | ||
| Adjustments to reconcile net loss to cash used for operating activities: | ||||||||
| Depreciation | 84,458 | 93,026 | ||||||
| Amortization of intangible assets and write-off | 267,273 | 304,983 | ||||||
| Interest payable on Note | 58,282 | 164,589 | ||||||
| Loss on foreign currency | – | 13,004 | ||||||
| Reserve for inventory | (513,400 | ) | (213,005 | ) | ||||
| Allowance for credit losses | (250,000 | ) | (372,532 | ) | ||||
| Amortization of debt discount | 261,833 | 124,000 | ||||||
| Amortization of capitalized contract costs | 173,062 | 175,900 | ||||||
| Share based and warrant compensation for employees and consultants | 146,571 | 225,245 | ||||||
| Stock based fees to directors | 20,004 | 18,006 | ||||||
| Bad debt expense | 15,000 | 100,000 | ||||||
| Deferred income tax benefit | 16,500 | (22,998 | ) | |||||
| Amortization of operating lease right-of-use assets | 25,419 | 79,521 | ||||||
| Change in operating assets and liabilities: | ||||||||
| Accounts receivable | (275,581 | ) | 855,829 | |||||
| Due from factor | 74,170 | 25,150 | ||||||
| Capitalized contract costs | (75,227 | ) | (355,520 | ) | ||||
| Deposits | – | (7,976 | ) | |||||
| Right-of-use asset | – | (115,988 | ) | |||||
| Inventory | 520,828 | 280,438 | ||||||
| Prepaid expenses and other | (11,495 | ) | 85,523 | |||||
| Accounts payable | (301,518 | ) | (502,987 | ) | ||||
| Accrued liabilities | 46,087 | (27,116 | ) | |||||
| Deferred revenue | (334,407 | ) | 526,240 | |||||
| Operating lease liabilities | (20,410 | ) | (66,712 | ) | ||||
| Net cash used for operating activities | (4,662,921 | ) | (2,914,072 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Capital expenditures | (12,012 | ) | (13,047 | ) | ||||
| Net cash used for investing activities | (12,012 | ) | (13,047 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Proceeds from the exercise of warrants | 6,966,558 | 1,908,099 | ||||||
| Costs incurred for issuance of common stock | (462,994 | ) | (172,350 | ) | ||||
| Proceeds from issuance of note payable | 1,000,000 | 2,000,000 | ||||||
| Repayment of note payable | (455,000 | ) | (762,611 | ) | ||||
| Repayment of government loan | (146,393 | ) | (150,024 | ) | ||||
| Proceeds from Employee Stock Purchase Plan | 10,076 | 3,740 | ||||||
| Net cash provided by financing activities | 6,912,247 | 2,826,854 | ||||||
| Effect of exchange rate changes | 19,745 | 26,469 | ||||||
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 2,257,059 | (73,796 | ) | |||||
| CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 437,604 | 511,400 | ||||||
| CASH AND CASH EQUIVALENTS, END OF YEAR | $ | 2,694,663 | $ | 437,604 | ||||
Please note that the audit our 2025 financial statements has not been completed by our independent registered public accounting firm as of the date of this press release and results are therefore subject to change.
