Bio-Key International (BKYI)
NASDAQ:BKYI
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BIO-key International
(NASDAQ:BKYI)
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Rating:48Neutral
Price Target:
$0.73
▼(-17.39% Downside)
Action:UpgradedDate:01/29/26
The score is held down primarily by weak financial performance—large losses, negative operating/free cash flow, and declining TTM revenue—despite strong gross margins. Technicals are mixed with some near-term strength but a still-weaker longer-term trend. Earnings-call commentary and the recent financing improve near-term outlook/liquidity, but execution and funding risk remain key constraints.
Positive Factors
High Renewal Rates
High renewal rates suggest strong customer loyalty and satisfaction, providing a stable revenue base and reducing churn risk, which is crucial for long-term growth.
Negative Factors
Revenue Decline
Declining revenue indicates potential challenges in maintaining sales momentum, which could impact long-term growth and profitability if not addressed.
Read all positive and negative factors
Positive Factors
Negative Factors
High Renewal Rates
High renewal rates suggest strong customer loyalty and satisfaction, providing a stable revenue base and reducing churn risk, which is crucial for long-term growth.
Read all positive factors
BIO-key International (BKYI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.22M
Dividend YieldN/A
Average Volume (3M)421.17K
Price to Earnings (P/E)―
Beta (1Y)1.13
Revenue Growth-1.19%
EPS Growth86.72%
CountryUS
Employees41
SectorIndustrials
Sector Strength72
IndustrySecurity & Protection Services
Share Statistics
EPS (TTM)-0.15
Shares Outstanding10,849,618
10 Day Avg. Volume164,936
30 Day Avg. Volume421,166
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)1.75
Price to Sales (P/S)0.95
P/FCF Ratio-2.26
Enterprise Value/Market Cap0.54
Enterprise Value/Revenue0.53
Enterprise Value/Gross Profit0.68
Enterprise Value/Ebitda-0.93
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 generates revenue through multiple streams, including the sale of biometric hardware and software solutions, subscription-based services, and licensing fees for its technology. The company offers both on-premises and cloud-based solutions,...
BIO-key International Earnings Call Summary
Earnings Call Date:Nov 14, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 31, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a company with promising growth opportunities, particularly in the defense sector, and strong customer retention, evidenced by high renewal rates. However, current financial challenges, such as declining quarterly revenue and increased net loss, are notable concerns. The company's efforts to manage costs and its pipeline of new and renewed contracts provide optimism for future performance.Positive Updates
Strong Defense Sector Momentum
BIO-key is gaining significant traction in the defense sector with deployments among two of the top four largest global defense agencies. These contracts, including a new large deployment in the Middle East, signify substantial growth potential.
Negative Updates
Revenue Decline
Q3 2025 revenue was $1.5 million, down from $2.1 million in Q3 2024, primarily due to the absence of large orders from the previous year.
Read all updates
Q3-2025 Updates
Positive
Negative
Strong Defense Sector Momentum
BIO-key is gaining significant traction in the defense sector with deployments among two of the top four largest global defense agencies. These contracts, including a new large deployment in the Middle East, signify substantial growth potential.
Read all positive updates
Company Guidance
During the BIO-key International Third Quarter 2025 Conference Call, CEO Mike DePasquale and CFO Ceci Welch highlighted several key metrics and developments. The company reported Q3 2025 revenue of approximately $1.55 million, closely aligning with the first two quarters of the year, but reflecting a decrease of about $600,000 compared to Q3 2024. This decline was attributed to timing variability of large customer orders, with some orders expected in Q3 rolling over to Q4. BIO-key's gross margin remained strong at 77%, while operating expenses were reduced by over 10%, contributing to a net loss of $965,000 for the quarter. The company highlighted a high renewal rate exceeding 90% and discussed significant opportunities in defense and banking sectors, including a potential $1 million to $3 million renewal in early 2026 with a major banking customer. Additionally, BIO-key completed a $3 million funding round post-Q3, enhancing its cash liquidity to support growth initiatives. The management expressed confidence in closing 2025 strongly and achieving positive cash flow and profitability, supported by strategic expansions and a robust partner network.BIO-key International Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
55
Neutral
Cash Flow
18
Very Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Mar 2023 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.32M | 6.93M | 7.75M | 7.02M | 5.11M | 2.84M |
| Gross Profit | 4.95M | 5.64M | 1.43M | 4.58M | 3.44M | 2.04M |
| EBITDA | -3.62M | -3.55M | -7.85M | -11.37M | -4.53M | -4.90M |
| Net Income | -4.44M | -4.30M | -8.52M | -11.91M | -5.07M | -9.67M |
Balance Sheet | ||||||
| Total Assets | 10.11M | 8.62M | 4.52M | 11.34M | 17.77M | 22.52M |
| Cash, Cash Equivalents and Short-Term Investments | 2.04M | 437.60K | 511.40K | 2.64M | 7.75M | 17.51M |
| Total Debt | 1.46M | 1.78M | 365.35K | 3.24M | 264.16K | 730.47K |
| Total Liabilities | 4.07M | 4.84M | 3.45M | 6.04M | 2.15M | 2.19M |
| Stockholders Equity | 6.05M | 3.77M | 1.06M | 5.30M | 15.62M | 20.34M |
Cash Flow | ||||||
| Free Cash Flow | -3.35M | -2.93M | -3.79M | -6.31M | -9.02M | -4.99M |
| Operating Cash Flow | -3.35M | -2.91M | -3.79M | -6.23M | -8.98M | -4.95M |
| Investing Cash Flow | 2.63K | -13.05K | -1.00K | -696.62K | -42.02K | -2.23M |
| Financing Cash Flow | 3.62M | 2.83M | 1.43M | 1.90M | -218.60K | 24.09M |
BIO-key International Technical Analysis
Negative
0.88
Price Trends
0.63
Negative
0.68
Negative
0.73
Negative
Market Momentum
-0.01
Positive
40.46
Neutral
14.12
Positive
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 above the 20-day moving average (MA) of 0.64, above the 50-day MA of 0.63, and above the 200-day MA of 0.73, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 40.46 is Neutral, neither overbought nor oversold. The STOCH value of 14.12 is Positive, 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% | |
58 Neutral | $9.99M | -0.84 | -37.45% | ― | -14.21% | -20.44% | |
54 Neutral | $34.34M | 15.14 | 15.61% | ― | ― | ― | |
52 Neutral | $63.22M | -9.28 | -135.24% | ― | 5.50% | 51.32% | |
48 Neutral | $6.22M | -1.23 | -73.33% | ― | -1.19% | 86.72% |
* Industrials Sector Average
BKYI
BIO-key International
0.57
-0.22
-27.38%
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0.80
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BIO-key International Corporate Events
Delistings and Listing ChangesRegulatory Filings and ComplianceStock Split
BIO-key Granted Extension by Nasdaq for Compliance
Neutral
Nov 7, 2025
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...
Business Operations and StrategyPrivate Placements and Financing
BIO-key Secures $3.1M Through Warrant Agreement
Positive
Oct 30, 2025
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...
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.