BIO-key CEO Expects Solid Performance Improvements in H1 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 16 2026
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Should l Buy BKYI?
BIO-key CEO, Mike DePasquale commented, "Our groundwork last year positioned BIO-key for solid top- and bottom-line improvements that are now coming into focus in the first half of 2026. Building on our growing base of annually recurring software licenses and services revenues, we see improving traction with larger contract opportunities, which we expect will benefit our results in the second half of 2026 and into 2027. These include an opportunity to deploy our biometric authentication technology with a foreign tax agency and potential deployment with a new foreign defense ministry, in addition to discussions with new enterprise customers, particularly in regulated industries where positive identity is essential.
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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 International Receives Nasdaq Notice for Filing Delay
- Nasdaq Notice: BIO-key International received a notice from Nasdaq for failing to comply with listing requirements due to a delay in filing its fiscal 2025 annual report, which pertains to Listing Rule 5250(c)(1) requiring timely submission of financial reports to the SEC.
- Impact Assessment: Despite the notice, BIO-key stated that it has no immediate impact on the listing or trading of its shares, indicating the company's stability in compliance matters.
- Audit Progress: The company is working with auditors and expects to submit the Form 10-K next week, demonstrating its proactive approach and plans to resolve compliance issues.
- Future Outlook: BIO-key anticipates approximately $2.2 million in revenue for Q1 2026, targeting breakeven and profitability in 2026, reflecting the company's confidence in its future financial health.
See More
BIO-key International Inc Reports Mixed 2025 Financial Results
- Revenue Growth Expectations: BIO-key International Inc anticipates Q1 2026 revenue of approximately $2.2 million, reflecting a 37% increase over Q1 2025, indicating potential recovery in the market despite a 12% decline in total revenue to $6.1 million in 2025.
- Hardware and Service Revenue Increase: In 2025, hardware revenue surged over 100% to $1.3 million, while service revenue rose 6% to $1.2 million, demonstrating ongoing growth in product sales and services, even as overall gross margin decreased to 77.5%.
- Improved Cash Flow and Asset Position: By the end of 2025, the company reported cash reserves of $2.7 million, up more than $2 million from 2024, enhancing financial stability, while book value increased from $3.8 million to $7.6 million, reflecting healthy asset growth.
- Increased Net Loss: The net loss for 2025 rose to $4.6 million, or $0.69 per share, compared to $4.3 million and $2.09 per share in 2024, highlighting challenges faced during the transition, particularly in the slower-than-expected brand shift in the EMEA region.
See More
BIO-key International Q4 2025 Earnings Call Insights
- Revenue Expectations Rise: BIO-key anticipates Q1 2026 revenue of approximately $2.2 million, representing a 37% increase over Q1 2025, indicating significant progress in revenue recovery that is expected to enhance overall financial performance.
- Strategic Transition Completed: The company completed its strategic shift to selling only BIO-key branded solutions in 2025, which is expected to improve gross margins and enhance growth prospects, particularly in the competitive EMEA market.
- Cost Control Effectiveness: In 2025, BIO-key successfully reduced SG&A expenses by nearly $800,000, an 11% decrease, while cash reserves reached $2.7 million, demonstrating ongoing improvements in operational efficiency.
- Product Release Progress: BIO-key formally introduced the FBI FAP 20 certified EcoID III fingerprint scanner and expects PortalGuard 7.0 to be released in Q2 2026, which will further strengthen its market position in regulated industries.
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 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 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 International Receives Nasdaq Notice for Filing Delay
- Nasdaq Notice: BIO-key International received a notice from Nasdaq for failing to comply with listing requirements due to a delay in filing its fiscal 2025 annual report, which pertains to Listing Rule 5250(c)(1) requiring timely submission of financial reports to the SEC.
- Impact Assessment: Despite the notice, BIO-key stated that it has no immediate impact on the listing or trading of its shares, indicating the company's stability in compliance matters.
- Audit Progress: The company is working with auditors and expects to submit the Form 10-K next week, demonstrating its proactive approach and plans to resolve compliance issues.
- Future Outlook: BIO-key anticipates approximately $2.2 million in revenue for Q1 2026, targeting breakeven and profitability in 2026, reflecting the company's confidence in its future financial health.
See More
BIO-key International Inc Reports Mixed 2025 Financial Results
- Revenue Growth Expectations: BIO-key International Inc anticipates Q1 2026 revenue of approximately $2.2 million, reflecting a 37% increase over Q1 2025, indicating potential recovery in the market despite a 12% decline in total revenue to $6.1 million in 2025.
- Hardware and Service Revenue Increase: In 2025, hardware revenue surged over 100% to $1.3 million, while service revenue rose 6% to $1.2 million, demonstrating ongoing growth in product sales and services, even as overall gross margin decreased to 77.5%.
- Improved Cash Flow and Asset Position: By the end of 2025, the company reported cash reserves of $2.7 million, up more than $2 million from 2024, enhancing financial stability, while book value increased from $3.8 million to $7.6 million, reflecting healthy asset growth.
- Increased Net Loss: The net loss for 2025 rose to $4.6 million, or $0.69 per share, compared to $4.3 million and $2.09 per share in 2024, highlighting challenges faced during the transition, particularly in the slower-than-expected brand shift in the EMEA region.
See More
BIO-key International Q4 2025 Earnings Call Insights
- Revenue Expectations Rise: BIO-key anticipates Q1 2026 revenue of approximately $2.2 million, representing a 37% increase over Q1 2025, indicating significant progress in revenue recovery that is expected to enhance overall financial performance.
- Strategic Transition Completed: The company completed its strategic shift to selling only BIO-key branded solutions in 2025, which is expected to improve gross margins and enhance growth prospects, particularly in the competitive EMEA market.
- Cost Control Effectiveness: In 2025, BIO-key successfully reduced SG&A expenses by nearly $800,000, an 11% decrease, while cash reserves reached $2.7 million, demonstrating ongoing improvements in operational efficiency.
- Product Release Progress: BIO-key formally introduced the FBI FAP 20 certified EcoID III fingerprint scanner and expects PortalGuard 7.0 to be released in Q2 2026, which will further strengthen its market position in regulated industries.
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 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 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
