BIO-key International (BKYI) AI Stock Analysis

• Market Cap: $4.77M
• Dividend Yield: N/A
• Average Volume (3M): 124.63K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.14
• Revenue Growth: 13.96%
• EPS Growth: 85.22%
• Country: US
• Employees: 41
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): -0.20
• Shares Outstanding: 6,863,776
• 10 Day Avg. Volume: 87,871
• 30 Day Avg. Volume: 124,627
• PEG Ratio: 0.02
• Price to Book (P/B): 1.75
• Price to Sales (P/S): 0.95
• P/FCF Ratio: -2.26
• Enterprise Value/Market Cap: 0.65
• Enterprise Value/Revenue: 0.45
• Enterprise Value/Gross Profit: 0.57
• Enterprise Value/Ebitda: -0.93
• 1Y Price Target: $2.00
• Price Target Upside: 108.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: $1.00 ▲(4.17% Upside)

BIO-key International's stock score is primarily influenced by its challenging financial performance, with negative profitability and cash flow metrics. Despite this, the company shows potential through strategic expansions and revenue growth, as highlighted in the earnings call. Technical indicators suggest moderate positive momentum, but valuation concerns persist due to ongoing losses. Overall, while there are promising developments, significant risks remain.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong demand for BIO-key's products, enhancing its market position and supporting long-term business expansion.

Strategic Partnerships

The partnership with IT2Trust expands BIO-key's distribution network, potentially increasing market reach and driving future revenue growth.

International Defense Contracts

Securing defense contracts strengthens BIO-key's presence in high-security sectors, providing stable, long-term revenue streams and enhancing its competitive edge.

Negative Factors

Negative Cash Flow

Persistent negative cash flow limits BIO-key's ability to invest in growth opportunities and may strain its financial stability over time.

Profitability Challenges

Ongoing losses highlight operational inefficiencies and the need for improved cost management to achieve sustainable profitability.

Decline in Gross Margin

A declining gross margin suggests pressure on profitability, potentially impacting long-term financial health if not addressed.

BIO-key International Business Overview & Revenue Model

Company Description

BIO-key International, Inc. develops and markets fingerprint identification biometric technology and software solutions, and enterprise-ready identity access management solutions for commercial, government, and education customers in the United States and internationally. The company offers BIO-key PortalGuard and PortalGuard IDaaS solutions, a customer-controlled and neutral-by-design cloud-based identity platform that allows customers to integrate with any cloud or on-premises SaaS application, as well as windows device authentication through IAM platform. Its solutions enable its customers to secure their workforces and student populations; and make their partner networks more collaborative. In addition, it provides BIO-key VST and WEB-key products; and Civil and Large-Scale ID Infrastructure solutions that develops finger-based biometric technology. Further, it offers finger scanners for enterprise and consumer markets under SideSwipe, EcoID, and SidePass brand names. The company was formerly known as SAC Technologies and changed its name to BIO-key International, Inc. in 2002. BIO-key International, Inc. was founded in 1993 and is headquartered in Wall, New Jersey.

How the Company Makes Money

BIO-key generates revenue through multiple streams, primarily by selling biometric hardware and software solutions to businesses and government entities. Their revenue model includes direct product sales, software licensing fees, and subscription services for their identity management platforms. Additionally, the company may enter into strategic partnerships that enhance its product offerings or expand its market reach, contributing to revenue growth. Ongoing maintenance and support services for their installed systems also provide a recurring revenue stream, while consulting services related to biometric implementations further bolster their earnings.

BIO-key International Financial Statement Overview

Summary

BIO-key International faces considerable financial challenges with negative profitability and cash flow metrics. While there are signs of operational improvements, such as increased gross profit margin and managed debt levels, the company struggles with consistent revenue growth and cash generation. These issues indicate potential risks, requiring strategic actions to stabilize and improve the financial position.

Income Statement

The company's income statement reveals a challenging financial position with persistent negative net income and EBIT. The gross profit margin has improved significantly from earlier years, indicating better cost control, yet the negative EBIT and net profit margins suggest ongoing operational inefficiencies. Revenue growth has been erratic, with notable increases in some years but an overall lack of consistent upward trajectory.

Balance Sheet

The balance sheet reflects a mixed situation. The debt-to-equity ratio is relatively low, suggesting manageable debt levels compared to equity. However, the equity ratio shows a moderate reliance on liabilities to finance assets. Return on equity remains negative due to continuous losses, highlighting profitability issues. Overall, the balance sheet shows some stability but is weakened by ongoing profitability concerns.

Cash Flow

The cash flow statement shows significant negative operating cash flow, which overshadows the company's financial flexibility. Free cash flow has consistently been negative, indicating challenges in generating sufficient cash from operations. The high operating cash flow to net income ratio suggests potential cash flow generation issues. Despite some positive financing cash flow, the cash flow position remains concerning.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.91M	6.93M	7.75M	7.02M	5.11M	2.84M
Gross Profit	5.44M	5.64M	1.43M	4.58M	3.44M	2.04M
EBITDA	-3.37M	-3.55M	-7.85M	-11.37M	-4.53M	-4.90M
Net Income	-4.21M	-4.30M	-8.52M	-11.91M	-5.07M	-9.67M
Balance Sheet
Total Assets	10.52M	8.62M	4.52M	11.91M	17.77M	22.52M
Cash, Cash Equivalents and Short-Term Investments	2.28M	437.60K	511.40K	2.64M	7.75M	17.51M
Total Debt	61.62K	1.78M	365.35K	3.24M	264.16K	730.47K
Total Liabilities	3.66M	4.84M	3.45M	4.85M	2.19M	2.19M
Stockholders Equity	6.85M	3.77M	1.06M	5.30M	15.58M	20.34M
Cash Flow
Free Cash Flow	-3.52M	-2.93M	-3.79M	-6.31M	-9.02M	-4.99M
Operating Cash Flow	-3.51M	-2.91M	-3.79M	-6.23M	-8.98M	-4.95M
Investing Cash Flow	-17.23K	-13.05K	-1.00K	-696.62K	-42.02K	-2.23M
Financing Cash Flow	4.41M	2.83M	1.43M	1.90M	-218.60K	24.09M

BIO-key International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BKYI, the sentiment is Positive. The current price of 0.96 is above the 20-day moving average (MA) of 0.78, above the 50-day MA of 0.77, and above the 200-day MA of 0.87, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 61.07 is Neutral, neither overbought nor oversold. The STOCH value of 15.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BKYI.

BIO-key International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SPCB	59 Neutral	$46.48M	29.07	―	―	―	―
BKYI	51 Neutral	$4.77M	-0.55	-145.28%	―	13.96%	85.22%
VRME	46 Neutral	$11.46M	-2.69	-28.37%	―	-13.20%	-89.43%
DGLY	39 Underperform	$2.94M	―	-191.47%	―	-20.52%	83.27%
KSCP	38 Underperform	$45.31M	―	-236.56%	―	-6.61%	40.20%

BIO-key International Corporate Events

BIO-key Granted Extension by Nasdaq for Compliance

On May 9, 2025, BIO-key International received a notice from Nasdaq indicating non-compliance with the minimum bid price requirement of $1.00 per share. Despite not regaining compliance by November 6, 2025, Nasdaq granted the company an additional 180 days, until May 4, 2026, to meet the requirement. The company plans to monitor its stock price and may implement a reverse stock split to maintain its Nasdaq listing.

The most recent analyst rating on (BKYI) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on BIO-key International stock, see the BKYI Stock Forecast page.

BIO-key Secures $3.1M Through Warrant Agreement

On October 27, 2025, BIO-key International entered into a warrant exercise agreement with an institutional investor to adjust the terms of existing warrants, resulting in gross proceeds of approximately $3.1 million. The company plans to use these funds for working capital and corporate purposes, including debt repayment. Additionally, BIO-key finalized exchange agreements with Streeterville Capital, settling a secured promissory note by issuing shares of common stock, effectively paying off the original note.

The most recent analyst rating on (BKYI) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on BIO-key International stock, see the BKYI Stock Forecast page.

BIO-key International Secures $1.13M Note Agreement

On September 30, 2025, BIO-key International, Inc. entered into a note purchase agreement with Streeterville Capital, LLC, resulting in the issuance of a $1,130,000 senior secured promissory note. The company received $1,000,000 in funding after deductions, which will be used for general working capital. The note, due in eighteen months, carries a nine percent interest rate and includes various terms for repayment and default conditions, impacting the company’s financial obligations and operational flexibility.

The most recent analyst rating on (BKYI) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on BIO-key International stock, see the BKYI Stock Forecast page.

Bio-Key’s Earnings Call: Revenue Soars Amid Challenges

The latest earnings call from Bio-Key International paints a picture of a company on a strong positive trajectory, marked by significant revenue growth and strategic expansions, particularly in the defense sector. Despite these positive developments, challenges remain in maintaining margins, and the company reported a loss for the quarter. However, the potential of undisclosed contracts and expanding market opportunities present a promising outlook.

BIO-key International Approves Stock Plan Amendments

On August 8, 2025, BIO-key International, Inc. held its Annual Meeting of Stockholders, where amendments to two stock plans were approved. The amendments increased the number of shares available for issuance under both the 2023 Stock Incentive Plan and the 2021 Employee Stock Purchase Plan by 700,000 shares each, potentially enhancing employee engagement and investment opportunities.

The most recent analyst rating on (BKYI) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on BIO-key International stock, see the BKYI Stock Forecast page.

BIO-key Reports Strong Q2 Growth and New Defense Initiative

BIO-key International, Inc. is a company specializing in biometric-centric, multi-factor identity and access management (IAM) software, providing secure access solutions for over forty million users across various sectors, including military and defense.

BIO-key International Approves Key Proposals at Annual Meeting

On August 8, 2025, BIO-key International, Inc. held its Annual Meeting of Stockholders, where several key proposals were approved. These included the election of board members, ratification of the company’s accounting firm, approval of executive compensation, and amendments to stock incentive and employee stock purchase plans. These decisions are expected to impact the company’s governance and operational strategies positively.

The most recent analyst rating on (BKYI) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on BIO-key International stock, see the BKYI Stock Forecast page.