BKYI Reveals Transcript from Q2 2025 Earnings Conference
BIO-key Reports Strong Q2 2025 Financial Results with 49% Revenue Increase
BIO-key, a biometric security solutions provider, has announced impressive financial results for Q2 2025, with a 49% revenue increase to $1.70 million. This growth was driven by growth across services, license fees, and hardware sales.
The services segment generated $322,000, license fees $806,000, and hardware $569,000. Gross profit rose by 40% to $1.23 million, although gross margin decreased slightly from 77% to 73% due to a higher proportion of lower-margin hardware sales.
The company reduced its net loss by 30% to $1.17 million ($0.20 loss per share) compared to $1.67 million in Q2 2024, reflecting better cost control and operational efficiency despite remaining unprofitable.
Operating expenses declined by 8.5% to $2.32 million, driven by a 13.5% reduction in SG&A expenses to $1.68 million, partially offset by a 7.6% increase in R&D spending.
On the business front, BIO-key launched the BIO-key CyberDefense Initiative targeting the growing military and defense markets, supported by rising European defense budgets and commitments from NATO. The company is actively engaging defense industry prime contractors and growing its footprint in Europe, the Middle East, and Africa (EMEA).
Current assets totaled $4 million, including $2.3 million in cash as of June 30, 2025, up from $1.9 million and $438,000 in cash at year-end 2024. BIO-key transitioned away from licensed Swivel Secure products towards solely BIO-key branded solutions in EMEA, citing improved pricing control and margin potential.
Q2 2025 accounts receivable increased 37% to $984,000 from $718,000 at year-end 2024. BIO-key's MFA security process requires users to provide multiple forms of verification before gaining access to a system or service.
The ongoing shift to in-house branded product offerings, together with operational expense management and active monetization of hardware inventory, is designed to improve gross margins and reduce breakeven levels. CEO DePasquale stated that BIO-key has enough cash and equivalents to last through year-end.
In summary:
| Metric | Q2 2025 Value | Change vs. Q2 2024 | |-------------------------------|------------------------------|--------------------------| | Revenue | $1.70 million | +49% | | Gross Profit | $1.23 million | +40% | | Gross Margin | 73% | Down from 77% | | Net Loss | $1.17 million (–$0.20/share) | Improved by 30% | | Operating Expenses | $2.32 million | –8.5% | | SG&A Expense | $1.68 million | –13.5% | | R&D Expense | $636,000 | +7.6% | | New Initiatives | BIO-key CyberDefense Initiative targeting defense and cybersecurity sectors |
This financial and strategic performance highlights BIO-key's progress in revenue diversification, cost reduction, and positioning within the defense and cybersecurity markets.
[1] BIO-key Press Release
[2] Seeking Alpha Transcript
[3] Yahoo Finance
[4] MarketWatch
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