BIO-key International (BKYI) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue rose 34% year-over-year to $2.15 million, driven by new customer wins, expanded deployments in defense and financial services, and strong sector progress in finance, defense, and government.

• The company provides biometric and multi-factor authentication solutions for enterprise, government, and education, with a focus on expanding IAM market presence and pursuing acquisitions.

• Shares were suspended from Nasdaq and delisted in May 2026, now trading on OTC Markets, with an appeal hearing scheduled for June and ongoing efforts to regain listing.

• A 1-for-10 reverse stock split was effective April 30, 2026.

• Book value at March 31, 2026 was $7.6 million ($7.04/share), with $2.2 million in cash.

Financial highlights

• Q1 2026 revenue increased to $2.15 million from $1.61 million in Q1 2025, with license fee revenue up 24% to $1.37 million and hardware revenue more than doubling to $531,256.

• Gross profit rose to $1.77 million, maintaining a strong gross margin of 82%.

• Net loss improved to $165,036 ($0.15/share) from $736,545 ($1.57/share) year-over-year.

• Operating expenses decreased 4% year-over-year to $1.89 million.

• Book value at quarter-end was $7.6 million, with $2.2 million in cash and $4.5 million in current assets.

Outlook and guidance

• Management expects profitability and positive cash flow in Q2 2026, with Q2 revenue projected at ~$2.8 million and 1H 2026 revenue at ~$5 million.

• Full-year 2026 guidance calls for solid revenue growth and improved bottom line.

• Several contracts have been awarded and are pending finalization, supporting confidence in the 2026 outlook.

• Ongoing efforts to monetize reserved inventory and improve cash flow.