BIO-key Q1 Bottom-Line Improves on 34% Rise in Revenue; Expects Q2 Profitability on 65% Revenue Increase; Investor Call Today at 10am ET
Rhea-AI Summary
BIO-key (OTC: BKYI) reported Q1 2026 revenue of $2.15M, up about 34% year over year, with an 82% gross margin. Net loss narrowed to $165K. The company expects Q2 revenue of roughly $2.8M (about 65% above prior-year Q2) and 1H 2026 revenue of about $5M, up 50%, with anticipated first-half profitability and cash roughly in line with current levels. Current cash is $2.2M and stockholders’ equity is $7.43M. BIO-key highlighted finance, defense and government wins, but noted its shares were suspended from Nasdaq and now trade on OTC Markets as BKYI while it seeks relisting.
Positive
- Q1 2026 revenue up about 34% year over year to $2.15M
- Hardware revenue more than doubled to $531K in Q1 2026
- Q1 2026 gross margin maintained at 82%
- Q1 2026 net loss reduced to $165K from $737K a year ago
- Q2 revenue expected around $2.8M, about 65% above prior-year Q2
- 1H 2026 revenue expected around $5M, about 50% above 1H 2025
- Company expects 1H 2026 profitability versus $1.9M loss in 1H 2025
- Stockholders’ equity of about $7.43M at March 31, 2026
Negative
- Company still reported a Q1 2026 net loss of $165K
- Stockholders’ equity declined to $7.43M from $7.61M at year-end 2025
- BIO-key shares were suspended from Nasdaq and now trade on OTC Markets
- Timing and outcome of efforts to return to Nasdaq remain uncertain
- Review of Q1 2026 financial statements by the independent auditor is not yet complete
News Market Reaction – BKYI
In the May 18 session, BKYI gained 0.51%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
HOLMDEL, N.J., May 18, 2026 (GLOBE NEWSWIRE) -- BIO-key® International, Inc. (OTC Markets: BKYI), a global leader in Identity and Access Management (IAM) and biometric authentication technologies, announced its first quarter (Q1’26) results and first half of 2026 (1H’26) outlook. BIO-key will host an investor call today at 10:00am ET (details below).
Financial Highlights:
- Q1’26 revenues increased
34% to$2.15M vs. Q1’25 and74% vs. Q4’25 - Q1’26 net loss improved to
$(165 K) vs.$(737 K) in Q1’25 and$(1.722M ) in Q4’25 - Q1’26 ending cash and cash equivalents position of
$2.24M - Q1’26 ending shares outstanding of 1.08M
Outlook:
- Q2’25 revenues expected to rise
65% to approx.$2.8M vs.$1.7M in Q2’25 - 1H’26 revenues expected to rise
50% to approx.$5M vs.$3.3M in 1H’25 - Expects H1’26 profitability vs
$(1.9M ) net loss in H1’25 - 1H’26 cash position expected to be in line with current cash position.
- Expects solid revenue growth and improved bottom line for full year 2026.
Sector Progress:
- Finance: Secured
$1.04M one-year biometric identity license renewal with a foreign bank and partnered with Run-Level to deliver Identity Security Solution Across Mozambique’s National Payments Infrastructure. - Defense: BIO-key Surpassed
$2M in Military/Defense Sales over the Latest Twelve Months through Follow-on Orders, which continued in Q1’26. - Government: BIO-key Partnered with TD Synnex Public Sector (DLT) to Deliver IAM Solutions to the U.S. Public Sector, and BIO-key and Visualforma were Awarded a Contract to Secure Digital Identities for a Large Portuguese Municipality.
BIO-key CEO, Mike DePasquale commented, “Our Q1’26 results reflect the benefit of our sales, marketing and customer development initiatives over the past several quarters, combined with globally expanding appreciation for the unparalleled value that biometric identity and access management solutions provide in securing mission critical applications and data.
“In addition to solid revenue growth – both from new and existing customers – we substantially improved our bottom-line performance reflecting a blended gross margin of
“Our Q1’26 results benefitted from an expanded license renewal with a large foreign bank, continued follow-on orders from an existing foreign defense customer, and a new strategic, multi-year agreement with Sociedade Interbancária de Moçambique (SIMO), the operator of Mozambique’s national electronic payments network.
“We continue to see strength with foreign government, defense and financial customers that increasingly recognize the mission critical security and value of our suite of biometrically enhanced authentication solutions. This traction is supported by foreign regulatory frameworks, as well as the growing incidence of international conflicts and political tension. In Q1’26, we secured approximately
“Banking and financial services is another area of strength for BIO-key. Our Q1’26 revenues benefited from the expanded scope of a one-year license renewal by a long-standing foreign retail bank customer that is utilizing our biometric identity solution for over 30M of its retail clients. And as I mentioned, Mozambique’s national payments network, SIMO, became our 11th global financial services customer and we are seeing other significant opportunities with highly-regulated government and finance customers.
“To better penetrate large Federal, state and local government agency opportunities in the U.S., we have partnered with TD Synnex Public Sector (DLT) to bring our solutions to their public sector customers, many of whom face increasing mandates to adopt secure digital infrastructure and multi-factor authentication (MFA). By integrating BIO-key’s PortalGuard® IAM platform and Passkey:YOUTM biometric solutions into DLT’s offerings, their extensive portfolio of government agency customers can now easily deploy high-assurance identity security for digital access.
“We ended the quarter with a book value of
“Our business is off to a strong start in 2026, and we are excited about our outlook for Q2 and the remainder of the year. We believe BIO-key has never been better positioned for growth and improved financial performance.”
Financial Review
Please note that the review of our Q1 2026 financial statements has not been completed by our independent registered public accounting firm as of the date of this press release and the financial statements are therefore subject to change.
Total revenues increased
Q1’26 hardware revenue increased over
Q1’26 gross profit increased to
BIO-key’s Q1’26 operating expenses decreased
Reflecting increased revenue and gross profit and stable operating expenses, BIO-key’s Q1’26 net loss improved to
Balance Sheet
BIO-key’s stockholders’ equity was
| Conference Call Details | |
| Date / Time: | Monday, May 18th at 10 a.m. ET |
| Call Dial In #: | 1-877-418-5460 U.S. or 1-412-717-9594 Int’l |
| Live Webcast / Replay: | Webcast & Replay Link– Available for 3 months. |
| Audio Replay: | 1-877-344-7529 U.S. or 1-412-317-0088 Int’l; code 1165470 |
About BIO-key International, Inc. (www.BIO-key.com)
BIO-key is revolutionizing authentication and cybersecurity with biometric-centric, multi-factor identity and access management (IAM) software securing access for over forty million users. BIO-key allows customers to choose the right authentication factors for diverse use cases, including phoneless, tokenless, and passwordless biometric options. Its cloud-hosted or on-premise PortalGuard IAM solution provides cost-effective, easy-to-deploy, convenient, and secure access to computers, information, applications, and high-value transactions.
BIO-key Safe Harbor Statement
All statements contained in this press release other than statements of historical facts are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 (the "Act"). The words "estimate," "project," "intends," "expects," "anticipates," "believes" and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are made based on management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Act. These statements are not guarantees of future performance or events and are subject to risks and uncertainties that may cause actual results to differ materially from those included within or implied by such forward-looking statements. These risks and uncertainties include, without limitation, our history of losses and limited revenue; our ability to raise additional capital to satisfy working capital needs; our ability to continue as a going concern; our ability to protect our intellectual property; changes in business conditions; changes in our sales strategy and product development plans; changes in the marketplace; continued services of our executive management team; security breaches; competition in the biometric technology and identity access management industries; market acceptance of biometric products generally and our products under development; our ability to convert sales opportunities to customer contracts; our ability to expand into Asia, Africa and other foreign markets; fluctuations in foreign currency exchange rates; the duration and extent of continued hostilities in Ukraine and its impact on our European customers; the impact of tariffs and other trade barriers which may make it more costly for us to import inventory from China and Hong Kong and certain product components from South Korea; delays in the development of products, the commercial, reputational and regulatory risks to our business that may arise as a consequence of non-compliance with Securities and Exchange Commission (“SEC”) and Nasdaq periodic reporting requirements; our temporary loss of the use of a Registration Statement on Form S-3 to register securities in the future; any disruption to our business that may occur on a longer-term basis should we be unable to continue to maintain effective internal controls over financial reporting, and statements of assumption underlying any of the foregoing as well as other factors set forth under the caption "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2024 and other filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as required by law, we undertake no obligation to disclose any revision to these forward-looking statements whether as a result of new information, future events, or otherwise.
| Engage with BIO-key | |
| Facebook – Corporate: | https://www.facebook.com/BIOkeyInternational/ |
| LinkedIn – Corporate: | https://www.linkedin.com/company/bio-key-international |
| X – Corporate: | @BIOkeyIntl |
| X – Investors: | @BIO_keyIR |
| StockTwits: | BIO_keyIR |
Investor Contacts
William Jones, David Collins
Catalyst IR
BKYI@catalyst-ir.com or 212-924-9800
Please note that the review of our Q1 2026 financial statements has not been completed by our independent registered public accounting firm as of the date of this press release and the financial statements are therefore subject to change.
| BIO-KEY INTERNATIONAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||||||
| March 31, | December 31, | |||||||
| 2026 | 2025 | |||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 2,247,984 | $ | 2,694,663 | ||||
| Accounts receivable, net | 1,573,454 | 1,220,822 | ||||||
| Inventory | 338,397 | 370,879 | ||||||
| Prepaid expenses and other | 326,043 | 251,323 | ||||||
| Total current assets | 4,485,878 | 4,537,687 | ||||||
| Equipment and leasehold improvements, net | 53,035 | 67,751 | ||||||
| Capitalized contract costs, net | 320,415 | 311,591 | ||||||
| Deposits and other assets | 7,976 | 7,976 | ||||||
| Operating lease right-of-use assets | 41,383 | 47,953 | ||||||
| Investments | 5,000,000 | 5,000,000 | ||||||
| Intangible assets, net | 774,318 | 830,357 | ||||||
| Total non-current assets | 6,197,127 | 6,265,628 | ||||||
| TOTAL ASSETS | $ | 10,683,005 | $ | 10,803,315 | ||||
| LIABILITIES | ||||||||
| Accounts payable | $ | 514,197 | $ | 507,357 | ||||
| Accrued liabilities | 1,113,099 | 1,333,930 | ||||||
| Income taxes payable | - | - | ||||||
| Note payable | 651,935 | 604,102 | ||||||
| Government loan – BBVA Bank, current portion | 12,351 | 50,530 | ||||||
| Deferred revenue, current | 855,276 | 572,513 | ||||||
| Operating lease liabilities, current portion | 29,501 | 27,728 | ||||||
| Total current liabilities | 3,176,359 | 3,096,160 | ||||||
| Deferred revenue, long term | 45,225 | 62,584 | ||||||
| Deferred tax liability | 16,500 | 16,500 | ||||||
| Operating lease liabilities, net of current portion | 12,908 | 21,266 | ||||||
| Total non-current liabilities | 74,633 | 100,350 | ||||||
| TOTAL LIABILITIES | 3,250,992 | 3,196,510 | ||||||
| Commitments and Contingencies | ||||||||
| STOCKHOLDERS’ EQUITY | ||||||||
| Common stock — authorized, 170,000,000 shares; issued and outstanding 10,852,118 of $.0001 par value at March 31, 2026 and December 31, 2025, respectively | 1,085 | 1,085 | ||||||
| Additional paid-in capital | 141,537,509 | 141,496,765 | ||||||
| Accumulated other comprehensive income | 24,304 | 74,803 | ||||||
| Accumulated deficit | (134,130,885 | ) | (133,965,848 | ) | ||||
| TOTAL STOCKHOLDERS’ EQUITY | 7,432,013 | 7,606,805 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 10,683,005 | $ | 10,803,315 | ||||
Please note that the review of our Q1 2026 financial statements has not been completed by our independent registered public accounting firm as of the date of this press release and the financial statements are therefore subject to change.
| BIO-KEY INTERNATIONAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2026 | 2025 | |||||||
| Revenues | ||||||||
| Services | $ | 248,384 | $ | 272,598 | ||||
| License fees | 1,365,893 | 1,098,758 | ||||||
| Hardware | 531,256 | 235,803 | ||||||
| Total revenues | 2,145,533 | 1,607,159 | ||||||
| Costs and other expenses | ||||||||
| Cost of services | 78,498 | 98,144 | ||||||
| Cost of license fees | 73,234 | 72,885 | ||||||
| Cost of hardware | 323,538 | 108,469 | ||||||
| Cost of hardware - reserve | (98,970 | ) | - | |||||
| Total costs and other expenses | 376,300 | 279,498 | ||||||
| Gross profit | 1,769,233 | 1,327,661 | ||||||
| Operating expenses | ||||||||
| Selling, general and administrative | 1,270,066 | 1,372,524 | ||||||
| Research, development and engineering | 616,880 | 595,775 | ||||||
| Total operating expenses | 1,886,946 | 1,968,299 | ||||||
| Operating loss | (117,713 | ) | (640,638 | ) | ||||
| Other income (expense) | ||||||||
| Interest income | 676 | 3 | ||||||
| Loan fee amortization | (20,833 | ) | (60,000 | ) | ||||
| Interest expense | (27,166 | ) | (35,910 | ) | ||||
| Total other income (expense), net | (47,323 | ) | (95,907 | ) | ||||
| Loss before provision for income tax | (165,036 | ) | (736,545 | ) | ||||
| Provision for (income tax) tax benefit | - | - | ||||||
| Net loss | $ | (165,036 | ) | $ | (736,545 | ) | ||
| Comprehensive loss: | ||||||||
| Net loss | $ | (165,036 | ) | $ | (736,545 | ) | ||
| Other comprehensive income (loss) – foreign currency translation adjustment | (50,499 | ) | 6,803 | |||||
| Comprehensive loss | $ | (215,535 | ) | $ | (729,742 | ) | ||
| Basic and diluted loss per common share | $ | (0.15 | ) | $ | (1.57 | ) | ||
| Weighted average common shares outstanding: | ||||||||
| Basic and diluted | 1,072,145 | 470,242 | ||||||
