Watch for the delayed $0.8M hardware order to close in 2H26 and whether the company can achieve its profitability target. The $2.5M warrant exercise provides a cash runway, but the guidance miss signals execution risk. Monitor next quarter's revenue trajectory and any further dilution from outstanding warrants.
Price Chart
Executive Summary
BIO-key reported Q2 2026 revenue of $1.9M (+13% YoY) and a net loss improvement to $(577K) from $(1.2M), but missed its own prior Q2 revenue guidance of $2.8M due to a delayed $0.8M hardware order. The company raised $2.5M post-quarter via warrant exercises, boosting cash to over $4.5M, and targets profitability in 2H26. The guidance miss and ongoing losses temper the YoY improvement.
Key Financial Metrics
Key Facts
- Q2 2026 revenue $1,919,991 (+13% YoY from $1,696,907)
- Net loss improved to $(576,852) from $(1,167,396) YoY
- Gross margin expanded to 87% from 73% YoY
- Missed prior Q2 revenue guidance of ~$2.8M (guided in Q1 release)
- Cash at June 30, 2026: $1.4M; raised $2.5M post-quarter via warrant exercise at $4.06/share
- Reduced note payable by $350k to $325k via stock issuance
- Regained Nasdaq compliance in July after 1-for-10 reverse split
Financial Impact
Q2 revenue missed prior company guidance by ~$0.9M (32% shortfall), but net loss narrowed 51% YoY; $2.5M capital raise improves liquidity
Risk Factors
- Revenue concentration on large, lumpy hardware orders
- Continued net losses and cash burn despite improvement
- Potential further dilution from 1.24M unregistered warrants issued at $4.06
- Nasdaq compliance regained but fragile given low market cap
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001437749-26-027829 |
| Document: bkyi20260813c_8k.htm | 0001437749-26-027829 |
| Document: 0001437749-26-027829-index-headers.html | 0001437749-26-027829 |
| Document: 0001437749-26-027829-index.html | 0001437749-26-027829 |
| Document: 0001437749-26-027829.txt | 0001437749-26-027829 |
| 8-K Data (Synthetic) | 0001437749-26-027829 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 9, 2026 16d ago | S-1 | $1.65 | awaiting T+60 | — | $2.86 (−73.03%) |
Oct 6, 2026 19d ago | DEFA14A | $1.76 | awaiting T+60 | — | $2.86 (+62.22%) |
Oct 6, 2026 19d ago | 8-K | $1.76 | awaiting T+60 | — | $2.86 (+62.22%) |
Oct 2, 2026 23d ago | 8-K | $1.93 | awaiting T+60 | — | $2.86 (−47.93%) |
Sep 29, 2026 27d ago | Press Release | $3.12 | awaiting T+60 | — | $2.86 (−8.49%) |
Aug 24, 2026 9w ago | DEFA14A | $2.97 | awaiting T+60 | — | $2.86 (+3.87%) |
Aug 14, 2026 10w ago | 8-K | $3.18 | awaiting T+60 | — | $2.86 (+10.22%) |
Aug 13, 2026 10w ago | Press Release | $3.18 | awaiting T+60 | — | $2.86 (−10.22%) |
Aug 10, 2026 11w ago | Press Release | $4.17 | awaiting T+60 | — | $2.86 (−31.53%) |
Jul 28, 2026 12w ago | Press Release | $4.25 $2.10 | ▼ −50.59% | ▼ −54.94% | $2.86 (−32.82%) |
US Market Status
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