Overview

• U.S. biometric IAM provider's preliminary Q1 revenue rose 34% yr/yr

• Net loss for preliminary Q1 narrowed to $165K from $737K a year earlier

• Results driven by expanded license renewals and hardware deployments with financial and defense clients

Outlook

• BIO-key expects Q2’26 revenue to rise 65% to approx $2.8 mln vs $1.7 mln in Q2’25

• Company expects 1H’26 revenue to rise 50% to approx $5 mln vs $3.3 mln in 1H’25

• BIO-key expects 1H’26 profitability vs $(1.9 mln) net loss in 1H’25

Result Drivers

• LICENSE RENEWALS - Q1'26 revenue growth driven by expanded one-year license renewal from a long-time foreign banking customer and several large renewals

• HARDWARE DEPLOYMENTS - Hardware revenue more than doubled, supported by expansion of a large biometric hardware deployment and sale of previously fully-reserved inventory

• DEFENSE ORDERS - Follow-on orders from a foreign defense ministry contributed to Q1'26 revenue

Company press release: ID:nGNX63tHGR

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 EPS		-$0.15

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the electronic equipment & parts peer group is "buy"

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