BIO-key International, Inc. Q3 2025 Financial Results
BIO-key International, Inc. reported Q3 2025 revenues of $1.55 million, down from $2.14 million in Q3 2024, with a net loss of $964,849. The decline was due to large orders in the previous year. The company launched the EcoID III USB fingerprint scanner and expanded its market reach. Strategic initiatives included raising $3.1 million and prepaying debts. CEO Mike DePasquale highlighted the transition to a SaaS model and growth in defense and other sectors. BIO-key projects 2025 revenue of $6.5-$7 million and aims for growth in 2026.
BIO-key International, Inc., a global leader in Identity and Access Management (IAM) and biometric authentication technologies, has released its financial results for the third quarter of 2025. The company reported a decrease in revenue compared to the same period last year, alongside several strategic initiatives and operational highlights.
Financial Highlights
For the third quarter of 2025, BIO-key reported total revenues of $1.55 million, a decrease from $2.14 million in Q3 2024. The decline was primarily due to large orders from two long-time customers in the previous year, which contributed approximately $665,000 to the year-over-year revenue variance. The company’s net loss for Q3 2025 was ($964,849), or ($0.15) per share, compared to a net loss of ($738,959), or ($0.39) per share, in Q3 2024.
Business and Operational Highlights
During the quarter, BIO-key launched its next-generation EcoID III USB fingerprint scanner, which features FBI FAP 20 certification, enhanced security, liveness detection, and encrypted device-to-host communication. The company also partnered with IT2Trust to expand its market reach in Scandinavia and showcased its solutions at major tech and cybersecurity events in Europe, the Middle East, and Africa.
Additionally, BIO-key secured a significant new deployment for a Middle East defense sector organization and recorded $134,000 in additional hardware and license orders in Q4 2025 from a foreign defense ministry.
Strategic Initiatives and Corporate Developments
In October 2025, BIO-key raised $3.1 million in gross proceeds from a warrant exercise agreement with an existing institutional investor. The company also prepaid approximately $450,000 due under a promissory note issued on September 30, 2025, and satisfied the remaining principal of $327,991 on a 2024 note in exchange for shares. These transactions are expected to strengthen the company’s balance sheet and support its growth goals for 2026.
Management's Perspective
BIO-key CEO, Mike DePasquale, commented on the financial results, noting the challenging comparison to the previous year’s strong quarter. He highlighted the company’s progress in transitioning to a Software as a Service (SaaS) model and the expected uptick in European business activity following the holiday slowdown. DePasquale also emphasized the company’s CyberDefense Initiative, which aims to capitalize on increased global defense spending.
Future Outlook
Looking ahead, BIO-key expects a strong close to 2025, with full-year revenue projected in the range of $6.5 to $7 million. The company anticipates solid growth in 2026, driven by opportunities in the defense, finance, government, and higher education sectors. Management remains focused on cost reduction efforts to achieve positive cash flow and profitability.
Original SEC Filing: BIO KEY INTERNATIONAL INC [ BKYI ] - 8-K - Nov. 14, 2025
