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 a 74% sequential increase from Q4 2025.

• Business momentum is supported by strong international partnerships, a growing presence in EMEA, India, Vietnam, and new contracts in the U.S. and Portugal.

• A new partnership with DLT Solutions (TD SYNNEX) enhances access to U.S. public sector markets.

• The company is scaling its subscription-based, recurring revenue model, with 100% of international sales through channel partners.

• Shares were suspended from Nasdaq, with an appeal hearing scheduled for June 16 and ongoing efforts to regain listing.

Financial highlights

• Q1 2026 revenue increased to $2.15 million from $1.6 million in Q1 2025, with license fee revenue up 24% to $1.37 million.

• Hardware revenue more than doubled to $531,000, aided by foreign defense contracts, expanded deployments, and sales of previously reserved inventory.

• Gross profit grew 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, reflecting higher revenue and stable expenses.

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

Outlook and guidance

• Management expects to be profitable and cash flow positive in Q2 2026.

• First half 2026 revenues are projected at approximately $5 million, with strong visibility and a robust pipeline for the full year.

• Q2 2026 revenue expected to increase 65% year-over-year to approximately $2.8 million.

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

• 1H 2026 cash position expected to remain stable.