Bio-Key International (BKYI)
OTHER OTC:BKYI
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BIO-key International
(OTC:BKYI)
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Rating:51Neutral
Price Target:
$4.50
▲(411.36% Upside)
Action:Reiterated
Date:05/19/26
BKYI scores as middling: strong earnings-call momentum (rapid revenue growth, high gross margins, and guidance toward near-term breakeven) is offset by weak underlying financial performance (persistent losses and cash burn) and poor technicals (below key moving averages with negative MACD). Valuation is hard to assess due to negative earnings and no dividend yield support.
Positive Factors
High gross margins and license mix
Sustained high gross margins (82%) driven by growing license revenue indicate a scalable, high‑margin software business. A larger mix of recurring licenses supports durable unit economics, enabling operating leverage as revenue scales and improving the path to sustained profitability.
Negative Factors
Negative operating and free cash flow
Persistent negative operating and free cash flow creates ongoing funding needs and dilution risk, limiting the firm's ability to self‑fund sales, R&D, and partner initiatives. Until cash generation sustainably flips positive, capital constraints may slow strategic execution and scale.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins and license mix
Sustained high gross margins (82%) driven by growing license revenue indicate a scalable, high‑margin software business. A larger mix of recurring licenses supports durable unit economics, enabling operating leverage as revenue scales and improving the path to sustained profitability.
Read all positive factors
BIO-key International (BKYI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.81M
Dividend YieldN/A
Average Volume (3M)32.53K
Price to Earnings (P/E)―
Beta (1Y)1.14
Revenue Growth4.37%
EPS Growth73.50%
CountryUS
Employees41
SectorIndustrials
Sector Strength72
IndustrySecurity & Protection Services
Share Statistics
EPS (TTM)-7.70
Shares Outstanding1,085,212
10 Day Avg. Volume5,537
30 Day Avg. Volume32,527
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 Cap0.17
Enterprise Value/Revenue0.13
Enterprise Value/Gross Profit0.17
Enterprise Value/Ebitda-0.20
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:May 18, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 17, 2026
Earnings Call Sentiment Positive
The call conveyed meaningful operational and financial progress: strong top-line growth (+34%), higher-margin license expansion (+24%), a >100% rise in hardware revenue, a 33% increase in gross profit and a large reduction in net loss (≈77.6%). Management highlighted expanding global partnerships (notably TD Synnex/DLT), an improving pipeline with larger deals, and guidance toward profitability and positive cash flow in Q2. Key risks discussed include a recent NASDAQ suspension (appeal pending), prior delinquent filings that management is remediating, a quarter-over-quarter cash decline, and some lumpy/one-time inventory-driven hardware sales. On balance, the positives (growth, margins, partnerships, improved profitability outlook) significantly outweigh the operational and listing-related negatives.Positive Updates
Revenue Growth
Total Q1 2026 revenues increased 34% year-over-year to $2.1 million (vs. $1.6M in Q1 2025).
Negative Updates
NASDAQ Trading Suspension and Appeal Uncertainty
Shares were recently suspended from NASDAQ and currently trade on the OTC market under BKYI; an appeals hearing is scheduled for June 16 with an uncertain outcome and timeline for relisting.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth
Total Q1 2026 revenues increased 34% year-over-year to $2.1 million (vs. $1.6M in Q1 2025).
Read all positive updates
Company Guidance
The company guided to continued momentum and near-term breakeven, saying Q1 FY‑2026 revenue rose 34% to $2.1M (license fees $1.4M, +24%; hardware ~$531K, >100% YoY with roughly $100K from previously reserved inventory), gross profit grew ~33% with gross margin steady at 82% (vs. 77.5% in FY‑2025 and 81% in FY‑2024), operating expenses were roughly flat at ~$2.0M, and net loss narrowed (improvement of $165,036) with per‑share loss down to $0.15 from $1.57 a year ago; balance sheet metrics at 3/31/26 include book value $7.6M ($7.04/share), current assets $4.5M, cash & equivalents ~$2.2M (~$2.07/share) and accounts receivable $1.6M, and management said it expects to be profitable and cash‑flow positive in Q2, to file the 2025 10‑K and bring filings current this week, to pursue a NASDAQ appeals hearing on June 16 with advisers optimistic for relisting by summer, and sees first‑half revenue of about $5M while continuing to scale via partners (≈50% of new domestic business through partners, 100% of international sales) and a ~1.1M share count after the 1‑for‑10 reverse split.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
Negative
0.88
Price Trends
5.22
Negative
5.75
Negative
6.65
Negative
Market Momentum
-0.25
Negative
42.08
Neutral
53.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BKYI, the sentiment is Negative. The current price of 0.88 is below the 20-day moving average (MA) of 4.50, below the 50-day MA of 5.22, and below the 200-day MA of 6.65, indicating a bearish trend. The MACD of -0.25 indicates Negative momentum. The RSI at 42.08 is Neutral, neither overbought nor oversold. The STOCH value of 53.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | $49.33M | 71.81 | 2.03% | ― | 2.26% | -86.02% | |
51 Neutral | $4.81M | -0.70 | -57.42% | ― | 4.37% | 73.50% | |
45 Neutral | $43.99M | -0.95 | -143.53% | ― | 25.86% | 68.12% | |
44 Neutral | $8.93M | -1.81 | -37.45% | ― | -40.12% | -9.90% |
* Industrials Sector Average
BKYI
BIO-key International
4.27
-3.93
-47.93%
SPCB
SuperCom
11.03
0.26
2.41%
IVDA
Iveda Solutions
0.34
-2.02
-85.74%
VRME
VerifyMe
0.68
-0.11
-14.47%
KSCP
Knightscope Inc Class A
2.55
-3.47
-57.64%
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.