BIO-key International, Inc. reported a decrease in revenue for the fiscal year ending December 31, 2025, generating approximately $5.94 million, down 14% from $6.93 million in 2024. The decline was primarily attributed to the absence of a significant contract renewal with a foreign retail bank that had positively impacted the previous year’s figures, as well as the company's transition from a distribution agreement with Swivel Secure Limited to selling BIO-key branded solutions in the EMEA market. License fees saw a notable drop of 34%, totaling $3.42 million, while hardware sales increased significantly by 112% to $1.34 million, reflecting a growing demand for biometric cybersecurity solutions.
The company's operating loss widened to $6.83 million in 2025, compared to a loss of $2.88 million in 2024. This increase was driven by a 192% rise in total operating expenses, which reached $11.39 million, largely due to a 106% increase in selling, general, and administrative expenses and a new impairment charge of $2.5 million related to an investment in Boumarang, Inc. Despite these challenges, gross profit decreased to $4.56 million, down from $5.64 million in the prior year, primarily due to lower license fee revenue and a shift towards lower-margin services and hardware sales.
Operationally, BIO-key expanded its customer base to over 600 clients across various sectors, including government and education, and continued to enhance its product offerings. The company’s strategic acquisitions, including Swivel Secure Europe in 2022, have bolstered its presence in the EMEA market. The firm also reported a significant increase in its hardware sales, indicating a growing adoption of its biometric solutions. As of December 31, 2025, the company employed 42 individuals, with a focus on engineering, customer support, and sales.
Looking ahead, BIO-key aims to strengthen its position in the identity and access management (IAM) market by expanding its suite of authentication options and pursuing strategic acquisitions. The company anticipates increased demand for its solutions, particularly in highly regulated industries such as healthcare and financial services, as organizations continue to prioritize security in response to rising cybersecurity threats. However, the company also faces challenges, including the need for additional financing to support operations and the potential impact of geopolitical factors on its international business.
In terms of liquidity, BIO-key reported cash and cash equivalents of approximately $2.69 million as of December 31, 2025, a significant increase from $438,000 in the previous year. Despite this improvement, the company continues to require approximately $750,000 per month to sustain operations, which it has struggled to achieve through revenue generation alone. The firm is actively exploring additional financing options to ensure its long-term viability and growth in the competitive IAM landscape.
About BIO KEY INTERNATIONAL INC
BIO-key International, Inc. provides identity and access management (IAM) solutions featuring biometric multi-factor authentication (MFA) for enterprises, government, and education sectors. Its core products include PortalGuard IAM platform, WEB-key biometric infrastructure, MobileAuth app, and fingerprint scanners. BIO-key’s technology enables secure, passwordless access without tokens or phones, supporting workforce, customer, and large-scale ID management through cloud and on-premise deployments, emphasizing security, scalability, and user convenience.
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