BIO-key International (BKYI) Q3 2026 earnings summary

Executive summary

• Q3'26 license fee revenue rose 39% YoY to $1.3M, marking the third consecutive quarter of double-digit growth; total revenue was $1.48M and gross margin reached 90%.

• 9M'26 revenue grew 14% to $5.5M, net loss improved 42% to $1.7M, and the remaining note was retired.

Financial highlights

• Q3'26 total revenue was $1.48M vs. $1.55M YoY; license fees rose 39% to $1.28M and accounted for 86% of revenue vs. 59%.

• Q3'26 gross profit rose 12% to $1.34M; operating loss narrowed to $820K from $892K and net loss narrowed 8% to $886K from $965K.

• 9M'26 revenue increased 14% to $5.55M, gross profit rose 27% to $4.78M, and net loss narrowed 42% to $1.67M.

• 9M'26 operating expenses fell 1% to $6.29M; Q3'26 expenses rose 4% YoY to $2.16M but declined 2% QoQ.

Outlook and guidance

• Anticipates a solid finish to 2026 and strong start to 2027, supported by Middle East government wins, a growing government and financial-sector pipeline, existing-customer deployments, and annual license renewals.

• Recent wins and a growing EMEA government and banking pipeline, alongside rising high-margin software revenue and a streamlined cost structure, are cited as foundations for 2027 growth.