Dec 31, 2024

Bio-key Q4 2024 Earnings Report

Bio-key reduced its Q4 2024 net loss and significantly improved gross profit through a strategic shift to high-margin software license revenues.

Key Takeaways

Bio-key’s Q4 2024 performance reflected a 20% increase in license fee revenue and a meaningful reduction in net loss. The transition away from lower-margin services and hardware sales contributed to a substantial improvement in profitability despite a year-over-year revenue decline.

Q4 2024 revenue was $1.46 million, down from $1.83 million in Q4 2023.

License fee revenue rose 77% to $1.02 million in Q4 2024.

Net loss narrowed to $1.57 million in Q4 2024, from $2.37 million a year earlier.

Gross profit turned positive at $1.20 million versus a loss in Q4 2023.

Total Revenue
$1.46M
Previous year: $925K
+58.1%
EPS
-$0.53
Previous year: -$0.25
+112.0%
Gross Margin
82.02%
Gross Profit
$1.2M
Previous year: -$3.5M
-134.3%
Cash and Equivalents
$438K
Previous year: $500K
-12.5%
Total Assets
$8.62M
Previous year: $5.3M
+62.6%

Bio-key

Bio-key

Bio-key Revenue by Segment

Forward Guidance

Bio-key expressed confidence in improved top- and bottom-line performance in 2025, driven by demand for its biometric and IAM solutions across financial services, education, and international defense sectors.

Positive Outlook

  • Strong demand from defense and financial clients.
  • Successful transition to high-margin license revenues.
  • Gross margin expansion supports profitability.
  • Strategic partnerships to expand vertical market reach.
  • Growing adoption of passwordless and tokenless IAM.

Challenges Ahead

  • Quarter-to-quarter revenue volatility expected.
  • Continued net losses despite operational improvements.
  • Significant decline in hardware and service revenues.
  • Limited cash reserves at year-end.
  • Ongoing business transition challenges post-SSL exit.

Revenue & Expenses

Visualization of income flow from segment revenue to net income