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BIO-key International Inc (BKYI)
NASDAQ:BKYI
US Market

BIO-key International (BKYI) AI Stock Analysis

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BIO-key International

(NASDAQ:BKYI)

Rating:49Neutral
Price Target:
$1.00
▲(17.65%Upside)
BIO-key International's stock score reflects significant financial challenges, particularly around profitability and cash flow, which are major concerns. While there are positive signs in revenue growth and strategic expansions, the company's valuation remains poor, and there is a delisting risk. Technical indicators show mixed signals, with short-term momentum but long-term concerns.
Positive Factors
Financial Stability
BKYI ended 1Q25 with cash of $3.1M and minimal debt, expecting minimal cash burn in 2025, indicating sufficient capital for at least 12 months.
Market Position
BKYI recently entered the passkey authentication market with the launch of 'Passkey:YOU', a unique password-less authentication solution.
Revenue Performance
BKYI reported better-than-expected 1Q25 results with revenue of $1.6M, above the estimate of $1.3M.
Negative Factors
Revenue Decline
2024 total revenue was down 11% year-over-year, as strong growth in license revenue was offset by declines in hardware sales and services revenue.
Strategic Shift Impact
Results were below expectations due to an intentional shift away from its Swivel Secure brand to focus on core Bio-Key branded solutions, resulting in lower 2024 results.

BIO-key International (BKYI) vs. SPDR S&P 500 ETF (SPY)

BIO-key International Business Overview & Revenue Model

Company DescriptionBIO-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 MoneyBIO-key International makes money through the sale of its biometric hardware products, such as fingerprint scanners, and its software solutions, which include identity access management systems. The company generates revenue by licensing its software to enterprises and government agencies, offering subscription-based services for identity management, and providing support and maintenance contracts. Partnerships with technology providers and system integrators also contribute to its earnings by expanding its reach and customer base. Additionally, BIO-key engages in direct sales and collaborates with original equipment manufacturers (OEMs) to integrate its biometric technology into their solutions.

BIO-key International Earnings Call Summary

Earnings Call Date:May 15, 2025
(Q1-2025)
|
% Change Since: 0.00%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Neutral
The earnings call revealed a mixed performance for BIO-key. While there are positive developments such as revenue growth compared to the previous quarter, a high gross profit margin, and strategic expansions in various regions and sectors, the company faced challenges with a year-over-year revenue decline and increased net loss. The transition strategy in EMEA and improvements in the balance sheet are promising, but the overall financial performance had some setbacks.
Q1-2025 Updates
Positive Updates
Revenue Growth in Q1 2025
BIO-key's Q1 '25 revenue rose 10% to $1.6 million versus Q4 '24, driven by a focus on selling high-margin BIO-key branded products in EMEA.
High Gross Profit Margin
The company maintained a healthy gross profit margin of 83% in Q1 '25 due to its high-margin Software-as-a-Service model.
Improved Cash Position
BIO-key's cash position increased to over $3 million, reflecting proceeds from warrant exercises early in the quarter.
Expansion in EMEA Region
Improving traction and particular interest in BIO-key's differentiated identity-bound biometrics capabilities in the EMEA region.
Strategic Partnership in Education Sector
Executed a strategic partnership with California's EdTech Joint Powers Authority, making PortalGuard an approved solution for 195 K-12 schools and districts.
Negative Updates
Year-over-Year Revenue Decline
Q1 '25 revenue decreased to $1.6 million from $2.2 million in Q1 '24, impacted by a $1.2 million revenue recognition from the previous year.
Net Loss Increase
BIO-key's Q1 '25 net loss increased to approximately $737,000, up from a loss of $573,000 in the prior year period.
Gross Margin Decline
Gross margin declined from 86.3% in Q1 '24 to 82.6% in Q1 '25, reflecting an increase in lower-margin hardware as a percentage of revenue.
Company Guidance
During BIO-key International's Q1 2025 conference call, the company reported a 10% increase in revenue to $1.6 million compared to Q4 2024, despite a $1.2 million revenue impact from the previous year's contract. A key customer upgraded to a more advanced biometric solution, accounting for $690,000 of Q1 revenue, with expectations for future revenue to double to $3 million over a two-year period starting Q1 2026. Gross profit remained healthy at 83%, aided by a high-margin Software-as-a-Service model, while SG&A expenses were reduced by 23% year-over-year. The company's cash position increased significantly to over $3 million due to warrant exercises, and the note payable was reduced to approximately $762,000 from an original $2.3 million. BIO-key sees growth opportunities in the EMEA region and government sectors, with significant traction in defense and financial services verticals. They are also expanding their base in the education sector, driven by compliance with phone-free school regulations in California. Overall, BIO-key is focused on sequential growth and improving top and bottom-line results, supported by a growing base of recurring revenue, which currently stands at over $6 million.

BIO-key International Financial Statement Overview

Summary
BIO-key International faces substantial financial challenges with negative profitability and cash flow metrics. Despite operational improvements like increased gross profit margin and managed debt levels, the company struggles with consistent revenue growth and cash generation, reflecting potential risks.
Income Statement
30
Negative
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
45
Neutral
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
35
Negative
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
6.36M6.93M7.75M7.02M5.11M2.84M
Gross Profit
5.09M5.64M1.43M4.98M3.44M2.04M
EBIT
-4.14M-4.01M-8.83M-9.69M-5.00M-4.86M
EBITDA
-3.94M-3.55M-7.85M-11.37M-4.53M-4.90M
Net Income Common Stockholders
-4.71M-4.30M-8.52M-10.74M-4.57M-13.59M
Balance SheetCash, Cash Equivalents and Short-Term Investments
3.13M437.60K511.40K2.64M7.75M17.51M
Total Assets
11.18M8.62M4.52M11.91M17.77M22.52M
Total Debt
67.67K1.78M365.35K2.22M264.16K730.47K
Net Debt
-3.07M1.34M-146.05K-414.09K-7.49M-16.26M
Total Liabilities
3.66M4.84M3.45M4.85M2.19M2.19M
Stockholders Equity
7.53M3.77M1.06M7.06M15.58M20.34M
Cash FlowFree Cash Flow
-4.06M-2.93M-3.79M-6.31M-9.02M-4.99M
Operating Cash Flow
-4.05M-2.91M-3.79M-6.23M-8.98M-4.95M
Investing Cash Flow
-15.75K-13.05K-1.00K-696.62K-42.02K-2.23M
Financing Cash Flow
6.41M2.83M1.43M1.90M-218.60K24.09M

BIO-key International Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.85
Price Trends
50DMA
0.78
Positive
100DMA
1.02
Negative
200DMA
1.06
Negative
Market Momentum
MACD
<0.01
Negative
RSI
56.22
Neutral
STOCH
47.06
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 0.85 is above the 20-day moving average (MA) of 0.82, above the 50-day MA of 0.78, and below the 200-day MA of 1.06, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 56.22 is Neutral, neither overbought nor oversold. The STOCH value of 47.06 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 32 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 0 New Risks

BIO-key International Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
$4.51B12.295.40%248.53%4.14%-12.41%
51
Neutral
$3.24M-362.03%23.07%50.04%
49
Neutral
$4.98M-116.82%-7.25%80.12%
37
Underperform
$3.55M-3420.59%-11.38%-9.63%
35
Underperform
$19.10M220.90%-92.71%39.07%
$4.04M-170.63%
SMSMX
$5.68M-352.74%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BKYI
BIO-key International
0.85
-0.91
-51.70%
BURU
Nuburu
0.36
-6.91
-95.05%
AGRI
AgriFORCE Growing Systems
1.41
-8.49
-85.76%
DFLI
Dragonfly Energy Holdings Corp
0.38
-7.95
-95.44%
SMX
SMX Public Limited Company
1.22
-308.93
-99.61%
XPON
Expion360, Inc.
0.96
-129.04
-99.26%

BIO-key International Corporate Events

Delistings and Listing ChangesBusiness Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
BIO-key Faces Nasdaq Delisting Risk Amid Stock Drop
Negative
May 15, 2025

On May 9, 2025, BIO-key International received a notice from Nasdaq indicating that its stock price had fallen below the $1.00 minimum bid requirement for 30 consecutive business days, risking delisting. The company has until November 5, 2025, to regain compliance, with potential for an additional 180-day extension if necessary. In Q1 2025, BIO-key reported a revenue of $1.6 million, a decrease from the previous year, but noted improvements in cash position and a reduction in operating expenses. The company is optimistic about future growth, driven by increased adoption of its biometric solutions and strategic partnerships, despite fluctuations in quarterly financial performance.

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.

Delistings and Listing ChangesRegulatory Filings and Compliance
BIO-key International Regains Nasdaq Compliance After Filing
Neutral
Apr 24, 2025

On April 17, 2025, BIO-key International received a notice from Nasdaq for non-compliance with a listing rule due to a delay in filing its Annual Report for 2024. The company resolved the issue by filing the report on April 23, 2025, and regained compliance with Nasdaq’s listing requirements by April 24, 2025, ensuring no impact on its stock trading.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.