BIO-key International (BKYI) AI Stock Analysis

• Market Cap: $7.59M
• Dividend Yield: N/A
• Average Volume (3M): 6.36M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.13
• 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: 484,932
• 30 Day Avg. Volume: 6,355,885
• 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: 0.56
• Enterprise Value/Revenue: 0.67
• Enterprise Value/Gross Profit: 0.85
• Enterprise Value/Ebitda: -1.16
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.32
• Revenue Forecast (FY): $9.00M

• Rating: 48 Neutral
• Price Target: $0.73 ▼(-17.39% Downside)
• Action: Upgraded Date: 01/29/26
• Date: Action: Upgraded 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.

New Product Launches

New product launches enhance BIO-key's competitive edge and market position, potentially driving future revenue growth and expanding its customer base.

Improved Liquidity

Improved liquidity from the warrant agreement enhances financial flexibility, allowing BIO-key to invest in growth opportunities and manage debt more effectively.

Negative Factors

Revenue Decline

Declining revenue indicates potential challenges in maintaining sales momentum, which could impact long-term growth and profitability if not addressed.

Net Loss Increase

Increasing net losses highlight ongoing operational inefficiencies and financial strain, which could hinder the company's ability to achieve profitability.

Cash Flow Challenges

Negative operating cash flow suggests difficulties in generating sufficient cash from operations, potentially limiting investment in growth and increasing reliance on external financing.

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 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 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

Weak financial quality driven by declining TTM revenue (-8.6%), deeply negative profitability (EBIT/EBITDA margins around -65%/-57% and net margin about -70%), and ongoing cash burn (TTM operating and free cash flow about -$3.35M). The balance sheet leverage is relatively modest (debt-to-equity ~0.24), but persistent losses and negative cash flow elevate funding and liquidity risk.

Income Statement

TTM (Trailing-Twelve-Months) revenue declined (-8.6%) to about $6.3M, continuing a choppy top-line trend after prior growth years. Profitability remains the core issue: despite a strong gross margin (~78% TTM), operating results are deeply negative (EBIT and EBITDA margins roughly -65% and -57%), and the company is still generating sizable net losses (net margin about -70%). The positive is that gross margin strength suggests the product/service economics can be attractive, but current cost structure and scale are not translating into sustainable earnings.

Balance Sheet

Leverage looks manageable with debt-to-equity at ~0.24 in TTM (improved versus ~0.47 in 2024), and equity is positive (~$6.0M TTM) against total assets of ~$10.1M. However, persistent losses are pressuring shareholder returns (return on equity is strongly negative in TTM), which can erode balance sheet strength over time if not reversed. Overall, the balance sheet is not highly levered, but profitability headwinds remain a clear risk to longer-term stability.

Cash Flow

Cash generation is weak: operating cash flow is negative in TTM (about -$3.35M) and free cash flow is also negative (about -$3.35M), with free cash flow deteriorating versus the prior period (TTM growth -4.9%). While free cash flow roughly tracks reported net losses (ratio near 1), that primarily reflects that losses are translating into real cash burn rather than being offset by working-capital or non-cash items. The ongoing cash outflow raises financing and liquidity risk unless operating performance improves or new capital is secured.

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

• Technical Analysis Sentiment: Positive
• Last Price: 0.88
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 0.62, above the 50-day MA of 0.62, and above the 200-day MA of 0.75, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 60.86 is Neutral, neither overbought nor oversold. The STOCH value of 82.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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%
VRME	58 Neutral	$10.64M	-0.84	-44.14%	―	-14.21%	-20.44%
SPCB	54 Neutral	$36.74M	15.14	―	―	―	―
BKYI	48 Neutral	$7.59M	-1.23	-143.60%	―	-1.19%	86.72%
KSCP	41 Neutral	$48.22M	-1.48	-164.48%	―	5.50%	51.32%

BIO-key International Corporate Events

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.