BIO-key International Inc (BKYI)
OTHER OTC:BKYI
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BIO-key International
(OTC:BKYI)
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Rating:42Neutral
Price Target:
$4.00
▲(354.55% Upside)
Action:Reiterated
Date:05/14/26
The score is held down primarily by weak financial performance (persistent losses and cash burn) and a bearish technical trend (price below all key moving averages with negative MACD). Negative corporate events (Nasdaq delisting/OTC shift and filing delays) add meaningful risk. Partially offsetting these are improved balance-sheet optics and a more optimistic earnings outlook for 2026, but the turnaround still requires successful execution.
Positive Factors
High Gross Margins
Very high software license margins and an overall blended gross margin near the high 70s create durable operating leverage. If management sustains mix toward subscription/license revenue, robust gross margins can support eventual profitability as fixed SG&A is reduced and scale improves.
Negative Factors
Persistent Losses & Cash Burn
Deep, persistent losses and negative operating/free cash flow mean the business is not self-funding. Continued burn forces reliance on external financing or dilution unless sustained revenue expansion and cost discipline convert high gross margins into positive operating cash flow.
Read all positive and negative factors
Positive Factors
Negative Factors
High Gross Margins
Very high software license margins and an overall blended gross margin near the high 70s create durable operating leverage. If management sustains mix toward subscription/license revenue, robust gross margins can support eventual profitability as fixed SG&A is reduced and scale improves.
Read all positive factors
BIO-key International (BKYI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.75M
Dividend YieldN/A
Average Volume (3M)209.31K
Price to Earnings (P/E)―
Beta (1Y)1.12
Revenue Growth-12.04%
EPS Growth69.05%
CountryUS
Employees41
SectorIndustrials
Sector Strength72
IndustrySecurity & Protection Services
Share Statistics
EPS (TTM)-7.70
Shares Outstanding1,085,212
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 Cap0.22
Enterprise Value/Revenue0.14
Enterprise Value/Gross Profit0.17
Enterprise Value/Ebitda-0.21
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-3.2
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% | |
63 Neutral | $50.71M | -5.37 | 9.59% | ― | 0.94% | -36.32% | |
55 Neutral | $9.18M | -2.76 | -37.45% | ― | -32.26% | -6.16% | |
49 Neutral | $46.57M | -1.01 | -153.81% | ― | 4.91% | 70.42% | |
42 Neutral | $3.75M | -0.52 | -65.36% | ― | -12.04% | 69.05% |
* Industrials Sector Average
BKYI
BIO-key International
4.04
-4.25
-51.27%
SPCB
SuperCom
11.32
4.11
57.00%
IVDA
Iveda Solutions
0.28
-1.65
-85.34%
VRME
VerifyMe
0.68
-0.04
-5.29%
KSCP
Knightscope Inc Class A
2.90
-2.81
-49.21%
BIO-key International Corporate Events
Business Operations and StrategyDelistings and Listing ChangesFinancial DisclosuresRegulatory Filings and ComplianceStock Split
BIO-key Faces Nasdaq Delisting, Shifts Trading to OTC
Negative
May 12, 2026
BIO-key International said that on May 6, 2026 it was notified by Nasdaq that its shares had not met the $1.00 minimum bid price for the required period and that the company had not filed its Form 10-K for 2025, triggering a decision to delist its...
Delistings and Listing ChangesRegulatory Filings and ComplianceShareholder MeetingsStock Split
BIO-key Implements Reverse Stock Split to Maintain Nasdaq Listing
Neutral
Apr 29, 2026
On April 20, 2026, BIO-key stockholders approved an amendment to implement a reverse stock split of the company’s common stock, authorizing a ratio between 1-for-2 and 1-for-10, with the final terms left to the board’s discretion. Foll...
Shareholder MeetingsStock Split
BIO-key Shareholders Approve Reverse Stock Split Authorization
Neutral
Apr 24, 2026
On April 20, 2026, BIO-key International, Inc. held a special meeting of stockholders at which 51.62% of outstanding common shares were represented, establishing a quorum for a key governance decision. Shareholders approved an amendment to the com...
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.