Aug 14, 2026 earnings call — EMEA growth and H2 profitability goal
Second quarter bottom line improved 51% on 13% revenue growth to $1.92 million total revenue.
Revenue $0.0B (est $0.0B) · EPS $-0.56 (est $-0.82)
Key quotes
"it is really about the broader momentum we are building particularly across Europe, the Middle East and Africa or EMEA."
"We see biometrics as the ideal method for enabling such human control."
"And earlier this week, we enhanced our financial liquidity and balance sheet through a warrant transaction that raised gross proceeds of $2.5 million"
Analyst Q&A 2
H2 revenue and large orders
Q (Jack Vander Aarde · Maxim Group): The analyst asked about the business outlook for the back half: whether a large hardware order will ship in Q3 or be split into Q3/Q4. He also asked if license revenue and all segments will grow, how the recent cash will be used, and how important Passkey:YOU is to results.
A: Management said the timing of the large hardware order is uncertain — they would like it all to ship in the third quarter but will see how it evolves. They said they expect growth across the board, including license revenue, with strong gross margins in the '85% range' and that expenses are stable; they are not anticipating any additional dilution and have adequate cash to operate and invest. They said Passkey:YOU is ramping and has significant potential, but it is too early to give a precise percentage for its contribution.
"So yes, I think I think we are going to continue to see growth across the board." — Michael W. DePasquale (CEO·CHAIR)
Jordan rollout, Portugal deals, warrants, cash
Q (Dan Kamhis · Private Investor): The analyst asked whether the Jordan central bank initiative is under contract and generating revenue, and whether BIO-key will sell hardware or mainly software. He also asked about Portugal public-sector rollout and partner margins, competition, U.S. adoption and AI risks, the warrant proceeds and ownership, the cash increase, and the going-concern note.
A: Management said the Jordan project is contracted, not a pilot, and they expect it to be 'much more significant' in the second half and into the first part of 27, with a crescendo over the next '2 to 3 quarters'. They said the focus is on software (blended gross margins '75% plus' and software is higher margin), though hardware can be sold; for partners they said the partner discount is typically '25%, anywhere from 20% to 30%' and BIO-key's software gross margin is '85%'. On competition and partners they said many projects come through partners and large tech companies like SailPoint; on AI-agent risks they said security comes from the surrounding ecosystem: liveness detection, encrypted templates and transport. On the warrants and cash they said there was a '5%' commission so net was '2.2 million, $2.350 million, somewhere in that range, 2.3 million to 2.4 million', the warrant holder will never own more than '10% (9.9%)' due to a blocker, all warrants were exercised and about half have been taken out of band, and the extra cash came from collected receivables from June through July. Regarding the going-concern wording, the company said that wording 'did not remain' and auditors approved the statement that the company has enough cash to operate.
"Yes, we are and we are expecting it to be much more significant going forward." — Michael W. DePasquale (CEO·CHAIR)