BIO-key Releases 2026 Financial Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 hours ago
0mins
Should l Buy BKYI?
Source: seekingalpha
- Financial Performance: BIO-key reported a GAAP EPS of -$0.19 for Q4, with revenue of $1.24 million, reflecting a 15.1% year-over-year decline, indicating pressure in the competitive landscape.
- Preliminary Forecast: The company anticipates Q1 2026 revenue of $2.2 million, representing a 37% increase compared to Q1 2025 and an 80% increase from Q4 2025, suggesting positive signs of recovery in growth.
- Future Outlook: The outlook for 2026 indicates solid revenue growth and an improved bottom line, reflecting management's confidence in a rebound in market demand.
- Market Reaction: Despite the current financial struggles, the preliminary revenue forecast and future outlook may help bolster investor confidence and support a potential recovery in stock price.
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Analyst Views on BKYI
About BKYI
BIO-key International, Inc. is a provider of workforce and customer identity and access management (IAM) solutions featuring passwordless, phoneless and token-less Identity-Bound Biometric (IBB) authentication. The Company’s IAM platform enables secure work-from-anywhere for enterprise, education, and government customers using secure multi-factor authentication (MFA). Its products include PortalGuard and PortalGuard Identity-as-a-Service (IDaaS) enterprise IAM, WEB-key biometric civil and large-scale ID infrastructure, MobileAuth mobile phone authentication application for iOS and Android, and quality accessory fingerprint scanner and FIDO-compliant hardware to provide complete solution for identity-innovating customers. Its PortalGuard is a cloud-based identity platform that allows its customers to integrate with any cloud or on-premise SaaS application, service or cloud host, as well as Windows device authentication through a single IAM platform.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
BIO-key Reports Q4 2025 Results and 2026 Outlook
- 2025 Revenue Overview: BIO-key reported $6.1 million in revenue for 2025, a 12% decrease from 2024 primarily due to exiting the Swivel Secure distribution agreement, although hardware revenue surged over 100% to $1.3 million, indicating strong demand in the biometric hardware market.
- 2026 Outlook: The company anticipates solid revenue growth in 2026, with preliminary Q1'26 revenue at $2.2 million, up 37% year-over-year and 80% sequentially, suggesting positive progress towards achieving profitability.
- Defense and Financial Client Growth: Military and defense sales exceeded $2.2 million over the past twelve months, bolstered by strong partnerships with foreign governments and defense clients, while a foreign retail bank executed a $1.04 million annual license renewal, further solidifying its position in the financial sector.
- Cost Management and Financial Health: The company successfully trimmed operating expenses in 2025, reducing SG&A costs by 11% and total operating expenses by 7%, resulting in a cash balance of $2.7 million at year-end, enhancing its financial capacity to execute growth plans in 2026.
See More
BIO-key Releases 2026 Financial Outlook
- Financial Performance: BIO-key reported a GAAP EPS of -$0.19 for Q4, with revenue of $1.24 million, reflecting a 15.1% year-over-year decline, indicating pressure in the competitive landscape.
- Preliminary Forecast: The company anticipates Q1 2026 revenue of $2.2 million, representing a 37% increase compared to Q1 2025 and an 80% increase from Q4 2025, suggesting positive signs of recovery in growth.
- Future Outlook: The outlook for 2026 indicates solid revenue growth and an improved bottom line, reflecting management's confidence in a rebound in market demand.
- Market Reaction: Despite the current financial struggles, the preliminary revenue forecast and future outlook may help bolster investor confidence and support a potential recovery in stock price.
See More
BIO-key Secures $280K Order to Expand Biometric System
- Significant Order Value: BIO-key International Inc announced a $280,000 order from a foreign defense ministry's cyber-defense unit to expand its biometric authentication system, indicating sustained demand and trust in its technology.
- User Base Expansion: The system currently supports over 50,000 licensed users, demonstrating the company's increasing market penetration in biometric identity and access management, thereby enhancing its competitive edge in the security technology sector.
- Total Order Volume Growth: This deal brings the customer's total orders to approximately $1.14 million over the past 12 months, reflecting the company's ongoing growth potential and customer loyalty in the biometric technology space.
- Market Reaction Volatility: Despite securing the new order, BIO-key's shares reversed initial gains to trade 5% lower in pre-market, indicating a cautious market sentiment regarding the company's future performance.
See More
BIO-key Secures $280K Order to Expand Biometric Deployment
- New Order Expansion: BIO-key International has secured a $280,000 order from a foreign defense ministry's cyber-defense unit to expand its biometric user authentication deployment, bringing the total business booked from this customer in the past 12 months to $1.14 million, with additional orders anticipated.
- Growing Market Demand: Rising geopolitical tensions, particularly in the Middle East, have driven BIO-key to secure over $2 million in total orders within the military and defense sector over the last year, representing a substantial increase compared to the previous year, highlighting the strong demand for hardened authentication solutions.
- User Base Expansion: BIO-key now supports authentication for over 50,000 licensed users at this customer, providing continuous availability and detailed auditability, and as personnel expands, the company's biometric platform is designed to scale to millions of users, catering to large enterprises and government agencies.
- Strategic Initiative Implementation: The Defense & Intelligence Cybersecurity Initiative launched by BIO-key in mid-2025 focuses on delivering hardened biometric authentication solutions to military and intelligence customers, successfully enhancing the security posture of several new defense agency clients, and is expected to continue driving growth in the global market.
See More
BIO-key Secures $1.04M License Renewal Order from Foreign Retail Bank
- Renewal Order Growth: BIO-key has secured a $1.04 million license renewal and expansion order from a foreign retail bank, a customer since 2015, reflecting a 30% increase over the previous year, indicating strong ongoing demand for its biometric solutions.
- Client Base Expansion: The bank's biometric technology deployment has grown from 7 million enrolled clients in 2015 to over 30 million today, with an anticipated 5% growth in client enrollment over the coming year, further solidifying BIO-key's market position.
- Robust Cash Flow: With a year-end cash position of $2.7 million, BIO-key expects sufficient cash inflows from renewal activities and receivables to support its internal growth plans, enhancing its financial stability.
- Importance of Identity Verification: As banking operations become more automated and AI-assisted, BIO-key's biometric platform is increasingly vital for ensuring customer identity verification, helping banks maintain client trust and reduce fraud risks.
See More
BIO-key Signs Strategic Agreement with Mozambique's SIMO for IAM Solutions
- Strategic Partnership: BIO-key has signed a multi-year strategic agreement with Mozambique's SIMO to enhance identity and access security across the national electronic payments network using its PortalGuard® IAM platform and PIN:You™ tokenless authentication, which is expected to significantly improve governance and cybersecurity resilience in the financial ecosystem.
- Market Demand Response: As digital banking rapidly evolves in Mozambique, the growing need for robust identity security among the country's 36.6 million residents will be addressed through this partnership, helping SIMO maintain trust and compliance in modern financial services while supporting its long-term strategic goals.
- Technology Integration and Implementation: BIO-key's solutions will be integrated with RunLevel's expertise in identity and cybersecurity, ensuring secure interoperability and efficient clearing and settlement services among financial service providers, thereby enhancing the security of the national payments infrastructure.
- Global Customer Expansion: This agreement marks BIO-key's 11th banking and financial sector customer globally, further solidifying its position in the international market while showcasing its growth potential in Africa and commitment to strengthening digital trust.
See More
BIO-key Reports Q4 2025 Results and 2026 Outlook
- 2025 Revenue Overview: BIO-key reported $6.1 million in revenue for 2025, a 12% decrease from 2024 primarily due to exiting the Swivel Secure distribution agreement, although hardware revenue surged over 100% to $1.3 million, indicating strong demand in the biometric hardware market.
- 2026 Outlook: The company anticipates solid revenue growth in 2026, with preliminary Q1'26 revenue at $2.2 million, up 37% year-over-year and 80% sequentially, suggesting positive progress towards achieving profitability.
- Defense and Financial Client Growth: Military and defense sales exceeded $2.2 million over the past twelve months, bolstered by strong partnerships with foreign governments and defense clients, while a foreign retail bank executed a $1.04 million annual license renewal, further solidifying its position in the financial sector.
- Cost Management and Financial Health: The company successfully trimmed operating expenses in 2025, reducing SG&A costs by 11% and total operating expenses by 7%, resulting in a cash balance of $2.7 million at year-end, enhancing its financial capacity to execute growth plans in 2026.
See More
BIO-key Releases 2026 Financial Outlook
- Financial Performance: BIO-key reported a GAAP EPS of -$0.19 for Q4, with revenue of $1.24 million, reflecting a 15.1% year-over-year decline, indicating pressure in the competitive landscape.
- Preliminary Forecast: The company anticipates Q1 2026 revenue of $2.2 million, representing a 37% increase compared to Q1 2025 and an 80% increase from Q4 2025, suggesting positive signs of recovery in growth.
- Future Outlook: The outlook for 2026 indicates solid revenue growth and an improved bottom line, reflecting management's confidence in a rebound in market demand.
- Market Reaction: Despite the current financial struggles, the preliminary revenue forecast and future outlook may help bolster investor confidence and support a potential recovery in stock price.
See More
BIO-key Secures $280K Order to Expand Biometric System
- Significant Order Value: BIO-key International Inc announced a $280,000 order from a foreign defense ministry's cyber-defense unit to expand its biometric authentication system, indicating sustained demand and trust in its technology.
- User Base Expansion: The system currently supports over 50,000 licensed users, demonstrating the company's increasing market penetration in biometric identity and access management, thereby enhancing its competitive edge in the security technology sector.
- Total Order Volume Growth: This deal brings the customer's total orders to approximately $1.14 million over the past 12 months, reflecting the company's ongoing growth potential and customer loyalty in the biometric technology space.
- Market Reaction Volatility: Despite securing the new order, BIO-key's shares reversed initial gains to trade 5% lower in pre-market, indicating a cautious market sentiment regarding the company's future performance.
See More
BIO-key Secures $280K Order to Expand Biometric Deployment
- New Order Expansion: BIO-key International has secured a $280,000 order from a foreign defense ministry's cyber-defense unit to expand its biometric user authentication deployment, bringing the total business booked from this customer in the past 12 months to $1.14 million, with additional orders anticipated.
- Growing Market Demand: Rising geopolitical tensions, particularly in the Middle East, have driven BIO-key to secure over $2 million in total orders within the military and defense sector over the last year, representing a substantial increase compared to the previous year, highlighting the strong demand for hardened authentication solutions.
- User Base Expansion: BIO-key now supports authentication for over 50,000 licensed users at this customer, providing continuous availability and detailed auditability, and as personnel expands, the company's biometric platform is designed to scale to millions of users, catering to large enterprises and government agencies.
- Strategic Initiative Implementation: The Defense & Intelligence Cybersecurity Initiative launched by BIO-key in mid-2025 focuses on delivering hardened biometric authentication solutions to military and intelligence customers, successfully enhancing the security posture of several new defense agency clients, and is expected to continue driving growth in the global market.
See More
BIO-key Secures $1.04M License Renewal Order from Foreign Retail Bank
- Renewal Order Growth: BIO-key has secured a $1.04 million license renewal and expansion order from a foreign retail bank, a customer since 2015, reflecting a 30% increase over the previous year, indicating strong ongoing demand for its biometric solutions.
- Client Base Expansion: The bank's biometric technology deployment has grown from 7 million enrolled clients in 2015 to over 30 million today, with an anticipated 5% growth in client enrollment over the coming year, further solidifying BIO-key's market position.
- Robust Cash Flow: With a year-end cash position of $2.7 million, BIO-key expects sufficient cash inflows from renewal activities and receivables to support its internal growth plans, enhancing its financial stability.
- Importance of Identity Verification: As banking operations become more automated and AI-assisted, BIO-key's biometric platform is increasingly vital for ensuring customer identity verification, helping banks maintain client trust and reduce fraud risks.
See More
BIO-key Signs Strategic Agreement with Mozambique's SIMO for IAM Solutions
- Strategic Partnership: BIO-key has signed a multi-year strategic agreement with Mozambique's SIMO to enhance identity and access security across the national electronic payments network using its PortalGuard® IAM platform and PIN:You™ tokenless authentication, which is expected to significantly improve governance and cybersecurity resilience in the financial ecosystem.
- Market Demand Response: As digital banking rapidly evolves in Mozambique, the growing need for robust identity security among the country's 36.6 million residents will be addressed through this partnership, helping SIMO maintain trust and compliance in modern financial services while supporting its long-term strategic goals.
- Technology Integration and Implementation: BIO-key's solutions will be integrated with RunLevel's expertise in identity and cybersecurity, ensuring secure interoperability and efficient clearing and settlement services among financial service providers, thereby enhancing the security of the national payments infrastructure.
- Global Customer Expansion: This agreement marks BIO-key's 11th banking and financial sector customer globally, further solidifying its position in the international market while showcasing its growth potential in Africa and commitment to strengthening digital trust.
See More
