BIO-key International (BKYI) AI Stock Analysis

• Market Cap: $8.76M
• Dividend Yield: N/A
• Average Volume (3M): 27.25M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.14
• Revenue Growth: -1.19%
• EPS Growth: 86.72%
• Country: US
• Employees: 41
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): -0.15
• Shares Outstanding: 10,836,618
• 10 Day Avg. Volume: 664,741
• 30 Day Avg. Volume: 27,254,401
• PEG Ratio: 0.02
• Price to Book (P/B): 1.75
• Price to Sales (P/S): 0.95
• P/FCF Ratio: -2.26
• Enterprise Value/Market Cap: 0.48
• Enterprise Value/Revenue: 0.66
• Enterprise Value/Gross Profit: 0.84
• Enterprise Value/Ebitda: -1.15
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.5
• Revenue Forecast (FY): $7.30M

• Rating: 47 Neutral
• Price Target: $1.00 ▲(13.64% Upside)

BIO-key International's overall stock score reflects significant financial challenges, with negative profitability and cash flow issues being the most impactful factors. While there are positive technical indicators and promising growth opportunities highlighted in the earnings call, the negative valuation and ongoing financial difficulties weigh heavily on the stock's attractiveness.

Positive Factors

High Renewal Rates

High renewal rates indicate strong customer satisfaction and retention, providing a stable revenue base and enhancing long-term business sustainability.

Strong Defense Sector Momentum

Expansion in the defense sector presents substantial growth opportunities, leveraging BIO-key's expertise in secure access management and enhancing its market position.

New Product Launches

New product launches expand BIO-key's offerings, potentially increasing market share and driving future revenue growth through innovation.

Negative Factors

Revenue Decline

A decline in revenue indicates challenges in maintaining sales momentum, which could impact long-term financial stability if not addressed.

Net Loss Increase

Increasing net losses highlight ongoing operational inefficiencies, which may strain financial resources and hinder future profitability.

Cash Flow Challenges

Negative cash flow from operations indicates difficulties in generating sufficient cash, which could limit investment in growth initiatives and operational stability.

BIO-key International Business Overview & Revenue Model

Company Description

BIO-key International (BKYI) is a provider of biometric identification and authentication solutions, specializing in secure access management for businesses and government entities. The company operates primarily in the cybersecurity sector, offering a range of products that include fingerprint biometric scanners, identity management software, and mobile biometric solutions. BIO-key's technology is designed to enhance security, streamline user authentication processes, and improve operational efficiency across various industries.

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, catering to different customer needs. Key revenue streams come from direct sales to end-users, as well as partnerships with system integrators and value-added resellers who help distribute BIO-key's products. Additionally, the company may benefit from maintenance contracts and support services, which provide ongoing revenue beyond initial product sales. Strategic collaborations with other technology firms also enhance its market reach and revenue potential.

BIO-key International Financial Statement Overview

Summary

BIO-key International faces significant financial challenges, with negative profitability and cash flow metrics. While there are operational improvements like increased gross profit margin and managed debt levels, the company struggles with consistent revenue growth and cash generation, indicating potential risks.

Income Statement

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	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

• Technical Analysis Sentiment: Negative
• Last Price: 0.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 0.84, above the 50-day MA of 0.80, and above the 200-day MA of 0.83, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 42.16 is Neutral, neither overbought nor oversold. The STOCH value of 8.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BKYI.

BIO-key International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SPCB	54 Neutral	$41.01M	26.36	―	―	―	―
VRME	48 Neutral	$11.46M	-2.69	-44.14%	―	-14.21%	-20.44%
BKYI	47 Neutral	$8.76M	―	-143.60%	―	-1.19%	86.72%
KSCP	41 Neutral	$51.44M	―	-164.48%	―	5.50%	51.32%
DGLY	41 Neutral	$3.15M	―	-233.66%	―	-9.62%	95.79%

BIO-key International Corporate Events

BIO-key International Reports Q3 2025 Financial Results

BIO-key International, Inc. is a leading provider of Identity and Access Management (IAM) and biometric authentication technologies, offering solutions that secure access for over forty million users globally. The company operates primarily in the cybersecurity sector, focusing on biometric-centric, multi-factor identity solutions.

BIO-key Granted Extension by Nasdaq for Compliance

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 180 days, until May 4, 2026, to meet the requirement. The company plans to monitor its stock price and may implement a reverse stock split to maintain its Nasdaq listing.

The most recent analyst rating on (BKYI) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on BIO-key International stock, see the BKYI Stock Forecast page.

BIO-key Secures $3.1M Through Warrant Agreement

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 funds for working capital and corporate purposes, including debt repayment. Additionally, BIO-key finalized exchange agreements with Streeterville Capital, settling a secured promissory note by issuing shares of common stock, effectively paying off the original note.

The most recent analyst rating on (BKYI) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on BIO-key International stock, see the BKYI Stock Forecast page.

BIO-key International Secures $1.13M Note Agreement

On September 30, 2025, BIO-key International, Inc. entered into a note purchase agreement with Streeterville Capital, LLC, resulting in the issuance of a $1,130,000 senior secured promissory note. The company received $1,000,000 in funding after deductions, which will be used for general working capital. The note, due in eighteen months, carries a nine percent interest rate and includes various terms for repayment and default conditions, impacting the company’s financial obligations and operational flexibility.

The most recent analyst rating on (BKYI) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on BIO-key International stock, see the BKYI Stock Forecast page.

Bio-Key’s Earnings Call: Revenue Soars Amid Challenges

The latest earnings call from Bio-Key International paints a picture of a company on a strong positive trajectory, marked by significant revenue growth and strategic expansions, particularly in the defense sector. Despite these positive developments, challenges remain in maintaining margins, and the company reported a loss for the quarter. However, the potential of undisclosed contracts and expanding market opportunities present a promising outlook.

BIO-key International Approves Stock Plan Amendments

On August 8, 2025, BIO-key International, Inc. held its Annual Meeting of Stockholders, where amendments to two stock plans were approved. The amendments increased the number of shares available for issuance under both the 2023 Stock Incentive Plan and the 2021 Employee Stock Purchase Plan by 700,000 shares each, potentially enhancing employee engagement and investment opportunities.

The most recent analyst rating on (BKYI) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on BIO-key International stock, see the BKYI Stock Forecast page.