The revenue beat and improved gross margin are positive, but the delayed hardware order and ongoing cash burn keep the outlook uncertain. Traders should watch for the timing of the delayed hardware order and whether the company can achieve its 2H 2026 profitability target. The recent warrant exercise provides near-term liquidity but dilutes existing shareholders.
Price Chart
Executive Summary
BIO-key reported Q2 2026 revenue of $1.92M, beating the $1.8M consensus by 6.7%, and EPS of -$0.56 (post-split), which was a 72% improvement from -$2.01 in Q2 2025. However, the headline EPS of -$0.56 does not match the consensus estimate of -$0.82 due to the reverse stock split, and the company's net loss improved 51% year-over-year. Despite the beat, the stock is at risk given a $4M market cap, a history of losses, and a forward-looking outlook that targets profitability in 2H 2026 but remains uncertain.
Key Financial Metrics
Key Facts
- Q2 2026 revenue of $1,919,991, up 13% YoY from $1,696,907, beating consensus of $1.8M.
- Q2 2026 net loss improved 51% to $(576,852) from $(1,167,396) in Q2 2025.
- EPS of $(0.56) per share (post-split) vs $(2.01) in Q2 2025; consensus was $(0.82) but not directly comparable due to reverse split.
- Gross margin improved to 87% from 73% YoY, driven by higher-margin license fee revenue.
- Company raised $2.5M via warrant exercise, boosting cash to over $4.5M.
- Outlook targets revenue growth and profitability in 2H 2026, but a large hardware order was delayed from Q2 to 2H 2026.
- Stockholders' equity was $4.33M at June 30, 2026, down from $5.11M at Dec 31, 2025.
- Cash and cash equivalents were $1.38M at June 30, 2026, down from $2.69M at Dec 31, 2025.
Financial Impact
Revenue beat consensus by ~$119K (6.7%), net loss improved by $590K YoY, and $2.5M raised via warrant exercise.
Risk Factors
- Delayed large hardware order may not materialize in 2H 2026 as expected.
- Cash burn continues; cash dropped from $2.69M to $1.38M in 6 months despite $2.5M raise.
- History of losses and limited revenue; going concern risk remains.
- Nasdaq compliance regained but low market cap ($4M) makes stock volatile.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3345002 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 9, 2026 17d ago | S-1 | $1.65 | awaiting T+60 | — | $2.85 (−72.73%) |
Oct 6, 2026 20d ago | DEFA14A | $1.76 | awaiting T+60 | — | $2.85 (+61.93%) |
Oct 6, 2026 20d ago | 8-K | $1.76 | awaiting T+60 | — | $2.85 (+61.93%) |
Oct 2, 2026 24d ago | 8-K | $1.93 | awaiting T+60 | — | $2.85 (−47.67%) |
Sep 29, 2026 27d ago | Press Release | $3.12 | awaiting T+60 | — | $2.85 (−8.65%) |
Aug 24, 2026 9w ago | DEFA14A | $2.97 | awaiting T+60 | — | $2.85 (+4.04%) |
Aug 14, 2026 10w ago | 8-K | $3.18 | awaiting T+60 | — | $2.85 (+10.38%) |
Aug 13, 2026 10w ago | Press Release | $3.18 | awaiting T+60 | — | $2.85 (−10.38%) |
Aug 10, 2026 11w ago | Press Release | $4.17 | awaiting T+60 | — | $2.85 (−31.65%) |
Jul 28, 2026 12w ago | Press Release | $4.25 $2.10 | ▼ −50.59% | ▼ −54.94% | $2.85 (−32.94%) |
US Market Status
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