NEXT Biometrics Group (NEXT) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenues declined 40% year-over-year to NOK 1.8 million, mainly due to slow sales in India and China and delayed governmental tenders.

• The company is transitioning from sensor sales to an IP licensing model, focusing on the Anywhere-on-Display technology, with key milestones including two new US patents.

• Achieved FBI certification for the NEXT Granite FAP30 sensor.

• Strategic partnership with Giantplus for prototype development and demonstration at Mobile World Congress.

• Four new design wins in Q1 2026, bringing the total to 89, though most are awaiting deployment due to slow tender processes.

Financial highlights

• Q1 2026 revenues were NOK 1.8 million, down from NOK 3.0 million in Q1 2025 (restated), with weak sales in India and China.

• Adjusted gross margin was 40% in Q1 2026, compared to 55% in Q1 2025, impacted by product mix and low revenue.

• Adjusted EBITDA was negative NOK 15.8 million, with reported EBITDA at negative NOK 30.3 million due to inventory write-downs and non-recurring costs.

• Cash at end of Q1 2026 was NOK 6.7 million, down from NOK 8.3 million at end of Q4 2025 and NOK 39.9 million a year earlier.

• Net inventory write-downs totaled NOK 9.8 million; non-cash costs included redundancy and litigation.

Outlook and guidance

• Previous revenue guidance of NOK 70 million for 2026 is unlikely to be met due to slow governmental market and lower order intake.

• Focus remains on converting inventory and reducing costs, with annual OPEX expected to trend toward NOK 65 million.

• The company is exploring strategic options for the fingerprint sensor business, including partnerships or licensing.

• The Anywhere-on-Display project is on track for a prototype demonstration at Mobile World Congress in 2027.

• 25 to 35 active customers and design wins are nearing mass production, but timing remains uncertain.