BIO-key International Reports 2025 Results and Substantially Improved Cash Position, Supporting Expected Strong Growth in 2026

Key Financial Highlights and Strategic Updates for Investors

Date: March 31, 2026
Company: BIO-key International, Inc. (Nasdaq: BKYI)

Summary of Results and Outlook

• 2025 Revenue: \$6.1 million
• 2026 Outlook: Company projects solid revenue growth and improved bottom line, signaling an expectation to reach break-even in 2026
• Preliminary Q1 2026 Revenue: \$2.2 million, up 37% year-over-year and 80% quarter-over-quarter
• Substantially improved cash position: Ended 2025 with \$2.7 million in cash and increased book value to \$7.6 million (versus \$3.8 million at year-end 2024)

Operational and Financial Details

• Cost Management:
  • Reduced total selling, general and administrative (SG&A) expenses by \$768,000 (down 11% year-over-year)
  • Total operating expenses reduced by 7% in 2025
• Balance Sheet Strength:
  • Book value at December 31, 2025: \$7.6 million
  • Book value at December 31, 2024: \$3.8 million
  • Cash at end of 2025: \$2.7 million
  • Current assets include a \$5.0 million investment
  • Shareholder equity: \$7.7 million at December 31, 2025 (compared to \$3.8 million a year earlier)
• Capital Structure:
  • Common stock outstanding as of December 31, 2025: 10,852,118 shares (up from 3,715,483 at year-end 2024, following new capital raises and warrant exercises)
  • Additional paid-in capital increased to \$141.5 million (from \$133.0 million at prior year-end)
• Net Loss: 2025 net loss was \$1.7 million, compared to \$1.4 million in 2024 (noted as unaudited and subject to possible revision)
• Operating Cash Flow: The company reported a net increase in cash and cash equivalents of \$2.26 million in 2025, ending the year with \$2.7 million in cash

Strategic and Market Developments

• New Product Launches:
  • Introduced the ECOID III Fingerprint Scanner (FBI FAB 20 Certified)
  • Launched passwordless authentication innovations, debuted at the 2025 Gartner IAM Summit
• Business Momentum and Growth:
  • Strong start to 2026, with momentum in several markets
  • Company expects top-line expansion (revenue growth) and continued cost management to achieve break-even in 2026
• Order Flow and Volatility: Management notes that financial performance may fluctuate quarterly based on timing of large orders
• Geographical Expansion and Risk Factors: BIO-key is actively expanding into international markets, including Asia and Africa. Risks include competition, cybersecurity threats, regulatory changes, supply chain issues, and foreign currency volatility. The company also highlighted the ongoing impact of global events (e.g., Ukraine conflict) and tariff/trade barrier risks.

Shareholder and Market Impact

• Significant improvements in cash and balance sheet position reduce liquidity risk and enhance BIO-key’s ability to execute its growth strategy in 2026.
• Strong Q1’26 revenue growth (up 37% YoY and 80% QoQ) signals accelerating business momentum. If sustained, this could positively impact investor sentiment and share price.
• Expectation to reach break-even in 2026 is a potential catalyst for valuation re-rating, especially given the company’s history of operating losses.
• Expanding product portfolio and focus on passwordless authentication positions BIO-key for growth in the rapidly evolving IAM and cybersecurity markets.
• Significant capital inflow in 2025 (warrant exercises, new note issuances) has bolstered the company’s liquidity and working capital.

Other Notable Details for Investors

• Press Release and Financials: The full press release and unaudited financials are attached as Exhibit 99.1. Investors should note that the 2025 financial statements have not yet been audited, and results are subject to change.
• Shareholder Engagement: BIO-key provides updates via Facebook, LinkedIn, X (formerly Twitter), and StockTwits. Investor relations contacts are William Jones and David Collins at Catalyst IR ([email protected], 212-924-9800).

Potential Price-Sensitive Information

• Strong Q1’26 revenue performance and the company’s expectation to achieve break-even in 2026 could be price-moving events.
• Improved cash and working capital position reduces financial risk, potentially increasing investor confidence.
• Any material changes in the final audited financials (once released) could also impact the share price, especially if there are significant revisions.

Disclaimer

The above article is based on BIO-key International, Inc.’s March 31, 2026 press release and unaudited financial statements for the period ended December 31, 2025. All financial results are preliminary and subject to revision following completion of the independent audit. This article is for informational purposes only and does not constitute investment advice. Investors should review the full filings and consult their advisors before making investment decisions.

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