BIO-key Q2 revenue rises on license fee growth; net loss narrows

BIO-key targets revenue growth and profitability for 2H'26. The company expects to recognize about $0.8 million in delayed hardware revenue in 2H'26.

The company said it sees a solid pipeline, with projects in government and banking supporting the 2H'26 outlook.

• License fee growth — Q2 revenue benefited from a 53% increase in license fee revenues due to several new customer license agreements.
• Hardware revenue delay — Hardware revenues fell 19% due to the timing of customer deployments, including a large order delayed to 2H'26.
• Gross margin improvement — Gross margin rose to 87% from 73% due to higher license fee revenue and sales of fully-reserved hardware inventory.

BIO-key's second-quarter revenue grew 13% year over year, driven by license fee growth. The company's net loss narrowed by as gross margin improved to .