NEXT Biometrics Group (NEXT) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was NOK 6.9 million, down 46% year-over-year due to a pause in the India market and slowness in China, but the revenue pipeline improved with new orders and long-term contracts added during the quarter.

• Six new design wins were achieved, including the first for the touchpad segment and significant wins in banking and keyboard applications, bringing the total to 70 design wins.

• A major NOK 55–107 million contract was signed with ACPL after Q1, marking one of the largest orders in company history and boosting confidence in H2 2025 and 2026 revenue outlook.

• Adjusted gross margin was 52%, compared to 56% in Q1 2024; adjusted EBITDA was negative NOK 13.7 million, compared to negative NOK 9.1 million in Q1 2024.

• Cash at quarter-end was NOK 39.9 million, down from NOK 62.9 million at the end of Q4 2024.

Financial highlights

• Q1 2025 revenues were NOK 6.9 million, down from NOK 12.8 million in Q1 2024.

• Adjusted gross profit: NOK 3.6 million (52% margin) vs. NOK 7.2 million (56% margin) in Q1 2024.

• Adjusted operating expenses rose to NOK 17.3 million from NOK 16.3 million year-over-year.

• Adjusted EBITDA was negative NOK 13.7 million, compared to negative NOK 9.1 million in Q1 2024.

• Net loss after taxes: NOK 17.8 million vs. NOK 15.5 million in Q1 2024.

Outlook and guidance

• Revenue guidance for the full year is NOK 130–160 million, with most realized in H2; pipeline remains strong, with over NOK 300 million per year in potential contracts.

• Combined Q2 and Q3 revenues are projected between NOK 60–70 million, with a slow ramp-up in Q2.

• Majority of revenue expected in H2, with break-even targeted through strong FAP20 sales and FAP30 expected to drive growth in H2 2025 and 2026.

• Demand for FAP30 sensor is significantly above initial forecasts, targeting high-security Western markets.