BIO-key International, Inc. (BKYI) Earnings Call Transcripts

BIO-key International, Inc.'s Latest Earnings Call - March 31, 2026

In the fiscal year 2025, BIO-key International, Inc. (BKYI:US) reported a revenue decline of 12% to $6.1 million, down from $6.9 million in 2024, primarily due to timing issues with a significant contract renewal. However, management anticipates a strong start to Q1 2026, projecting revenue of approximately $2.2 million, a 37% increase year-over-year. The company is optimistic about achieving breakeven and profitability in 2026, driven by improved customer urgency in the defense and financial sectors and a strategic transition to selling only BIO-key-branded solutions in EMEA.

Reported metrics

Guidance from management

Management is optimistic about achieving breakeven and profitability in 2026, supported by increased revenue and continued cost management efforts.

What management said

Well, the majority will likely be License revenue, but there's also some strong Hardware revenue as well, but very good margins. As you know, our blended gross margins are always never lower than the high 70s all the way up through the low 80s. So depending upon that mix, you're going to be looking at an 80-plus percent, if not more, gross margin across the board, whether it's hardware or software combined, that's wh...

Well, we haven't reported the quarter. So I can't comment on the exact numbers for expense and so forth. We did and do believe our revenue is going to be in the range that we predicted. But certainly, the first quarter should be similar to all of the other quarters. Sometimes events like, for example, when we attend a large event and we spend money perhaps there, it could be a little bit higher. We are relaunching ou...

What analysts pressed on

Analysts expressed concerns over the softer-than-expected 2025 revenue performance and the potential need for a reverse stock split to maintain NASDAQ listing requirements. There is also apprehension regarding the timing of revenue recognition and customer contract renewals.

Main topics on the call

• Revenue Guidance for Q1 2026 — Management expects Q1 2026 revenue to be approximately $2.2 million, which represents a 37% increase over Q1 2025. CEO Mike DePasquale stated, "we are very bullish and very encouraged about 2026, and we will take advanta...
• Impact of Contract Timing — The revenue decline in 2025 was significantly impacted by a $1.5 million contract renewal with a foreign bank that was recognized in 2024. DePasquale noted, "we took the revenue all in 2024 for that 2-years, so that's wh...
• Cost Management Initiatives — BIO-key successfully reduced SG&A expenses by 11% in 2025, which contributed to a decrease in total operating expenses by 7%. Ceci Welch highlighted, "we will continue to focus on cost reduction opportunities as we move ...
• Growth in Hardware and Service Revenue — In 2025, hardware revenue increased by over 100% to $1.3 million, while service revenue rose by 6% to $1.2 million. This growth is attributed to an expanding customer base and new deployments.

Read the full BIO-key International, Inc. transcript (March 31, 2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 25 BIO-key International, Inc. earnings call transcripts on record, spanning May 15, 2020 to May 18, 2026. Based on this history, BIO-key International, Inc. reports quarterly. The most recent call on file is dated May 18, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

BKYI

Exchange

OTCPK

Country

US

Sector

Information Technology

Industry

Software

Calls on record

25

First call

May 15, 2020

Most recent

May 18, 2026

Reporting cadence

quarterly