BIO-key International (BKYI) AI Stock Analysis

• Market Cap: $5.35M
• Dividend Yield: N/A
• Average Volume (3M): 124.63K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.14
• Revenue Growth: 13.96%
• EPS Growth: 85.22%
• Country: US
• Employees: 41
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): -0.20
• Shares Outstanding: 6,863,776
• 10 Day Avg. Volume: 87,871
• 30 Day Avg. Volume: 124,627
• PEG Ratio: 0.02
• Price to Book (P/B): 1.75
• Price to Sales (P/S): 0.95
• P/FCF Ratio: -2.26
• Enterprise Value/Market Cap: 0.58
• Enterprise Value/Revenue: 0.45
• Enterprise Value/Gross Profit: 0.57
• Enterprise Value/Ebitda: -0.93
• 1Y Price Target: $2.00
• Price Target Upside: 156.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 47 Neutral
• Price Target: $1.00 ▲(28.21% Upside)

BIO-key International's overall stock score is primarily impacted by its challenging financial performance, with ongoing losses and cash flow issues. While the earnings call provided some positive insights into revenue growth and strategic expansions, the technical analysis and valuation indicate potential risks. The company's ability to improve profitability and cash generation will be crucial for future performance.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong demand for BIO-key's biometric solutions, suggesting potential for continued market expansion and increased market share.

Strategic Expansions

Securing major international contracts enhances BIO-key's global presence and diversifies its revenue base, which can drive long-term growth and stability.

Expense Management

Effective cost management through reduced SG&A expenses improves operational efficiency, supporting profitability and financial health over the long term.

Negative Factors

Profitability Challenges

Ongoing losses highlight challenges in achieving profitability, which could strain financial resources and impact long-term viability if not addressed.

Cash Flow Issues

Negative cash flow from operations limits BIO-key's ability to invest in growth opportunities and may necessitate external financing, affecting financial stability.

Margin Decline

The decline in gross margin reflects pricing pressures and increased hardware sales, which could impact profitability if not mitigated by cost controls or higher-margin sales.

BIO-key International Business Overview & Revenue Model

Company Description

BIO-key International (BKYI) is a technology company specializing in biometric identification and authentication solutions. Operating primarily within the cybersecurity sector, BIO-key provides a range of products and services designed to enhance security through fingerprint recognition, facial recognition, and other biometric technologies. The company's offerings cater to various industries, including government, healthcare, and financial services, focusing on providing secure access to systems and data while ensuring compliance with regulatory standards.

How the Company Makes Money

BIO-key generates revenue through multiple streams, primarily by selling biometric hardware and software solutions to businesses and government entities. Their revenue model includes direct product sales, software licensing fees, and subscription services for their identity management platforms. Additionally, the company may enter into strategic partnerships that enhance its product offerings or expand its market reach, contributing to revenue growth. Ongoing maintenance and support services for their installed systems also provide a recurring revenue stream, while consulting services related to biometric implementations further bolster their earnings.

BIO-key International Financial Statement Overview

Summary

BIO-key International faces significant financial challenges, with negative profitability and cash flow metrics. Despite improvements in gross profit margin and managed debt levels, the company struggles with consistent revenue growth and cash generation, indicating potential risks.

Income Statement

The company's income statement reveals a challenging financial position with persistent negative net income and EBIT. The gross profit margin has improved significantly from earlier years, indicating better cost control, yet the negative EBIT and net profit margins suggest ongoing operational inefficiencies. Revenue growth has been erratic, with notable increases in some years but an overall lack of consistent upward trajectory.

Balance Sheet

The balance sheet reflects a mixed situation. The debt-to-equity ratio is relatively low, suggesting manageable debt levels compared to equity. However, the equity ratio shows a moderate reliance on liabilities to finance assets. Return on equity remains negative due to continuous losses, highlighting profitability issues. Overall, the balance sheet shows some stability but is weakened by ongoing profitability concerns.

Cash Flow

The cash flow statement shows significant negative operating cash flow, which overshadows the company's financial flexibility. Free cash flow has consistently been negative, indicating challenges in generating sufficient cash from operations. The high operating cash flow to net income ratio suggests potential cash flow generation issues. Despite some positive financing cash flow, the cash flow position remains concerning.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.91M	6.93M	7.75M	7.02M	5.11M	2.84M
Gross Profit	5.44M	5.64M	1.43M	4.58M	3.44M	2.04M
EBITDA	-3.37M	-3.55M	-7.85M	-11.37M	-4.53M	-4.90M
Net Income	-4.21M	-4.30M	-8.52M	-11.91M	-5.07M	-9.67M
Balance Sheet
Total Assets	10.52M	8.62M	4.52M	11.91M	17.77M	22.52M
Cash, Cash Equivalents and Short-Term Investments	2.28M	437.60K	511.40K	2.64M	7.75M	17.51M
Total Debt	61.62K	1.78M	365.35K	3.24M	264.16K	730.47K
Total Liabilities	3.66M	4.84M	3.45M	4.85M	2.19M	2.19M
Stockholders Equity	6.85M	3.77M	1.06M	5.30M	15.58M	20.34M
Cash Flow
Free Cash Flow	-3.52M	-2.93M	-3.79M	-6.31M	-9.02M	-4.99M
Operating Cash Flow	-3.51M	-2.91M	-3.79M	-6.23M	-8.98M	-4.95M
Investing Cash Flow	-17.23K	-13.05K	-1.00K	-696.62K	-42.02K	-2.23M
Financing Cash Flow	4.41M	2.83M	1.43M	1.90M	-218.60K	24.09M

BIO-key International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.78
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BKYI, the sentiment is Negative. The current price of 0.78 is below the 20-day moving average (MA) of 0.78, above the 50-day MA of 0.77, and below the 200-day MA of 0.89, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 48.76 is Neutral, neither overbought nor oversold. The STOCH value of 7.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BKYI.

BIO-key International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SPCB	―	$48.31M	31.05	―	―	―	―
BKYI	―	$5.35M	-0.62	-145.28%	―	13.96%	85.22%
VRME	―	$12.15M	-2.85	-28.37%	―	-13.20%	-89.43%
KSCP	―	$52.14M	―	-236.56%	―	-6.61%	40.20%
DGLY	―	$3.06M	―	-191.47%	―	-20.52%	83.27%

BIO-key International Corporate Events

BIO-key Secures $3.1M Through Warrant Agreement

On October 27, 2025, BIO-key International entered into a warrant exercise agreement with an institutional investor to adjust the terms of existing warrants, resulting in gross proceeds of approximately $3.1 million. The company plans to use these funds for working capital and corporate purposes, including debt repayment. Additionally, BIO-key finalized exchange agreements with Streeterville Capital, settling a secured promissory note by issuing shares of common stock, effectively paying off the original note.

The most recent analyst rating on (BKYI) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on BIO-key International stock, see the BKYI Stock Forecast page.

BIO-key International Secures $1.13M Note Agreement

On September 30, 2025, BIO-key International, Inc. entered into a note purchase agreement with Streeterville Capital, LLC, resulting in the issuance of a $1,130,000 senior secured promissory note. The company received $1,000,000 in funding after deductions, which will be used for general working capital. The note, due in eighteen months, carries a nine percent interest rate and includes various terms for repayment and default conditions, impacting the company’s financial obligations and operational flexibility.

The most recent analyst rating on (BKYI) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on BIO-key International stock, see the BKYI Stock Forecast page.

Bio-Key’s Earnings Call: Revenue Soars Amid Challenges

The latest earnings call from Bio-Key International paints a picture of a company on a strong positive trajectory, marked by significant revenue growth and strategic expansions, particularly in the defense sector. Despite these positive developments, challenges remain in maintaining margins, and the company reported a loss for the quarter. However, the potential of undisclosed contracts and expanding market opportunities present a promising outlook.

BIO-key International Approves Stock Plan Amendments

On August 8, 2025, BIO-key International, Inc. held its Annual Meeting of Stockholders, where amendments to two stock plans were approved. The amendments increased the number of shares available for issuance under both the 2023 Stock Incentive Plan and the 2021 Employee Stock Purchase Plan by 700,000 shares each, potentially enhancing employee engagement and investment opportunities.

The most recent analyst rating on (BKYI) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on BIO-key International stock, see the BKYI Stock Forecast page.

BIO-key Reports Strong Q2 Growth and New Defense Initiative

BIO-key International, Inc. is a company specializing in biometric-centric, multi-factor identity and access management (IAM) software, providing secure access solutions for over forty million users across various sectors, including military and defense.

BIO-key International Approves Key Proposals at Annual Meeting

On August 8, 2025, BIO-key International, Inc. held its Annual Meeting of Stockholders, where several key proposals were approved. These included the election of board members, ratification of the company’s accounting firm, approval of executive compensation, and amendments to stock incentive and employee stock purchase plans. These decisions are expected to impact the company’s governance and operational strategies positively.

The most recent analyst rating on (BKYI) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on BIO-key International stock, see the BKYI Stock Forecast page.