Bio-Key International (BKYI)
NASDAQ:BKYI
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BIO-key International
(NASDAQ:BKYI)
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Rating:48Neutral
Price Target:
$0.62
▼(-29.20% Downside)
Action:ReiteratedDate:04/23/26
The score is held down primarily by weak financial performance—large ongoing losses, negative cash flow, and recent revenue declines—despite strong gross margins and a relatively low-leverage balance sheet. Offsetting factors include moderately improving technical momentum and a cautiously positive earnings outlook (Q1 2026 growth guidance and expense control), while valuation remains unattractive due to losses and corporate/regulatory overhang adds risk.
Positive Factors
Very high gross and license margins
Sustained, very high gross margins (license ~91%, blended ~78%+) indicate strong pricing power and low incremental costs for software sales. High margins provide a durable lever to absorb fixed SG&A, improving the path to sustainable profitability as sales scale or mix shifts back toward licenses.
Negative Factors
Persistent losses and weak cash generation
Deep, ongoing net losses and negative operating/free cash flow indicate the business is not self‑funding. Continued cash burn elevates dilution and refinancing risk, forcing management to rely on external capital unless revenue growth and operating leverage materialize sustainably.
Read all positive and negative factors
Positive Factors
Negative Factors
Very high gross and license margins
Sustained, very high gross margins (license ~91%, blended ~78%+) indicate strong pricing power and low incremental costs for software sales. High margins provide a durable lever to absorb fixed SG&A, improving the path to sustainable profitability as sales scale or mix shifts back toward licenses.
Read all positive factors
BIO-key International (BKYI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.45M
Dividend YieldN/A
Average Volume (3M)209.31K
Price to Earnings (P/E)―
Beta (1Y)1.10
Revenue Growth-1.19%
EPS Growth86.72%
CountryUS
Employees41
SectorIndustrials
Sector Strength72
IndustrySecurity & Protection Services
Share Statistics
EPS (TTM)-0.19
Shares Outstanding10,849,618
10 Day Avg. Volume294,011
30 Day Avg. Volume209,310
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)0.47
Price to Sales (P/S)0.59
P/FCF Ratio-0.77
Enterprise Value/Market Cap0.20
Enterprise Value/Revenue0.21
Enterprise Value/Gross Profit0.28
Enterprise Value/Ebitda-0.33
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.32
Revenue Forecast (FY)$9.00M
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 St...
How the Company Makes Money
BIO-key primarily makes money by selling and licensing its identity and biometric authentication software and related services to organizations that need secure user access and identity management.
Key revenue streams include:
- Software licenses...
BIO-key International Earnings Call Summary
Earnings Call Date:Mar 31, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 20, 2026
Earnings Call Sentiment Neutral
The call communicated a balanced picture: management highlighted clear operational progress — stronger cash position, substantial hardware growth, license margin improvement, cost reductions, new product certifications and strategic channel partnerships — and provided optimistic near‑term revenue guidance (Q1 2026). However, FY2025 showed a 12% revenue decline, continued net losses, margin compression due to mix, and elevated accounts receivable and listing risk. The company’s narrative is forward‑looking and confident about 2026, but meaningful execution is still required to convert momentum into sustained profitability.Positive Updates
Strong Q1 2026 Revenue Guidance
Management expects Q1 2026 revenue of approximately $2.2 million, representing a ~37% increase versus Q1 2025 and a larger sequential improvement versus Q4 2025; company expects substantial improvement in Q1 2026 bottom-line performance versus all FY2025 quarters.
Negative Updates
2025 Revenue Decline
Total 2025 revenues decreased 12% to $6.1 million versus $6.9 million in 2024, reflecting timing of a large multi‑year contract and the transition in EMEA sales strategy.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Q1 2026 Revenue Guidance
Management expects Q1 2026 revenue of approximately $2.2 million, representing a ~37% increase versus Q1 2025 and a larger sequential improvement versus Q4 2025; company expects substantial improvement in Q1 2026 bottom-line performance versus all FY2025 quarters.
Read all positive updates
Company Guidance
BIO-key guided that Q1 2026 revenue should be approximately $2.2 million (a ~37% increase vs. Q1 2025 and a sequential improvement over Q4 2025) with a substantial improvement in bottom-line performance expected to exceed each fiscal 2025 quarter, and management reiterated its goal of reaching breakeven/profitability and positive cash flow in 2026; the company pointed to a $6.1 million total for 2025 revenue (down 12% from $6.9M in 2024) but highlighted durable trends—hardware revenue rose >100% to $1.3M and services grew 6% to $1.2M—while gross margin was 77.5% (vs. 81.4% in 2024) and license-fee gross margin improved to ~91% from 88%, SG&A fell by almost $800k (11%) and total operating expenses were down 7% (R&D up ~4%), cash at year-end was $2.7M (up >$2M YoY) with book value $7.6M vs $3.8M, accounts receivable $1.2M (up 73%), ARR is in the $6M–$7M range, and management cited market tailwinds (global authentication market ~$23B in 2025 projected to nearly $100B by 2035, ~16% CAGR) plus strong adoption signals (>70% moving toward passwordless, ~75% of enterprises planning passkey investments) as support for top-line expansion and improved margins in 2026.BIO-key International Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
55
Neutral
Cash Flow
18
Very Negative
| Breakdown | Mar 2026 | Dec 2024 | Dec 2023 | Mar 2023 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.10M | 6.93M | 7.75M | 7.02M | 5.11M |
| Gross Profit | 4.72M | 5.64M | 1.43M | 4.58M | 3.44M |
| EBITDA | -3.88M | -3.55M | -7.85M | -11.37M | -4.53M |
| Net Income | -4.59M | -4.30M | -8.52M | -11.91M | -5.07M |
Balance Sheet | |||||
| Total Assets | 10.87M | 8.62M | 4.52M | 11.34M | 17.77M |
| Cash, Cash Equivalents and Short-Term Investments | 2.69M | 437.60K | 511.40K | 2.64M | 7.75M |
| Total Debt | 48.99K | 1.78M | 365.35K | 3.24M | 264.16K |
| Total Liabilities | 3.20M | 4.84M | 3.45M | 6.04M | 2.15M |
| Stockholders Equity | 7.67M | 3.77M | 1.06M | 5.30M | 15.62M |
Cash Flow | |||||
| Free Cash Flow | -4.67M | -2.93M | -3.79M | -6.31M | -9.02M |
| Operating Cash Flow | -4.66M | -2.91M | -3.79M | -6.23M | -8.98M |
| Investing Cash Flow | -12.01K | -13.05K | -1.00K | -696.62K | -42.02K |
| Financing Cash Flow | 6.91M | 2.83M | 1.43M | 1.90M | -218.60K |
BIO-key International Technical Analysis
Positive
0.88
Price Trends
0.61
Positive
0.64
Negative
0.71
Negative
Market Momentum
>-0.01
Negative
56.21
Neutral
68.75
Neutral
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 0.88 is above the 20-day moving average (MA) of 0.58, above the 50-day MA of 0.61, and above the 200-day MA of 0.71, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 56.21 is Neutral, neither overbought nor oversold. The STOCH value of 68.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BKYI.
BIO-key International Risk Analysis
BIO-key International disclosed 35 risk factors in its most recent earnings report. BIO-key International reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
Scrutiny and evolving expectations from customers, regulators, investors, and other stakeholders with respect to our environmental, social and governance practices may impose additional costs on us or expose us to new or additional risks. Q4, 2024
2.
Our business could be adversely affected by trade tariffs or other trade barriers. Q4, 2024
BIO-key International Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
54 Neutral | $39.75M | 15.14 | 15.61% | ― | ― | ― | |
54 Neutral | $11.19M | -1.55 | -37.45% | ― | -14.21% | -20.44% | |
49 Neutral | $52.11M | -9.28 | -153.81% | ― | 5.50% | 51.32% | |
48 Neutral | $6.45M | -0.52 | -65.36% | ― | -1.19% | 86.72% |
* Industrials Sector Average
BKYI
BIO-key International
0.59
-0.16
-20.69%
SPCB
SuperCom
8.94
1.22
15.81%
IVDA
Iveda Solutions
0.28
-2.67
-90.65%
VRME
VerifyMe
0.85
0.10
14.04%
KSCP
Knightscope Inc Class A
3.20
-2.08
-39.39%
BIO-key International Corporate Events
Financial DisclosuresRegulatory Filings and Compliance
BIO-key Addresses Nasdaq Compliance After Delayed 10-K Filing
Negative
Apr 22, 2026
On April 16, 2026, BIO-key International, Inc. received notice from Nasdaq that it was not in compliance with Listing Rule 5250(c)(1) because it failed to timely file its Form 10-K for the year ended December 31, 2025, with the Securities and Exch...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.