BIO-key International Inc. Common Stock (BKYI)

FairStock Score: 37/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

BIO-key is a 41-employee biometric identity company. I look for durable earning power and a margin of safety. Here, the filed results show none of that yet. Revenue has shrunk from $7.8M in FY2023 (period ended 2023-12-31) to $6.9M in FY2024 (period ended 2024-12-31) to $5.9M in FY2025 (period ended 2025-12-31). Net losses were $8.5M, $4.3M, and $7.2M in those same years. In the latest reported quarter, fiscal Q2 2026 (period ended 2026-06-30), revenue was $1.9M and net loss was $576,852, or diluted EPS -$0.56. That loss is narrower than the fiscal Q2 2025 net loss of $1.2M, but the company still is not profitable. Trailing free cash flow is -$4.2M, against a $4.1M market cap, so FairStock's FCF yield is -102.4%. At the 2026-10-13 close, FairStock shows P/B 0.71 and P/E -0.36. Low P/B can signal a bargain, but ROE of -107.91% and ROCE of -22.85% show book value is being consumed. Piotroski F-Score 1/9 and Altman Z-Score -24.75 point to distress. D/E of 0.20 is not heavy, but cash burn is the real risk. The Lynch category is none — losses in each of the last four years. The business operates in biometric identity and access management, but I see no evidence in the numbers of a moat, no pricing power, and no earnings record. Without a path to positive cash flow, the cheap-looking price is not a Graham margin of safety.

In plain English: BIO-key makes fingerprint and identity-verification software and readers for businesses and governments. The business looks weak: it has lost money for years, revenue has fallen from fiscal 2023 to fiscal 2025, and it is burning cash. At the $2.83 close on 2026-10-13, the market values the whole company at about $4.1 million, while its reported assets minus debts are higher, but the ongoing losses make the price look uncertain rather than clearly cheap.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer