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BKYI Stock Analysis - BIO KEY INTERNATIONAL INC AI Rating

BKYI Nasdaq Services-Prepackaged Software DE CIK: 0001019034
Recently Updated • Analysis: Mar 21, 2026 • SEC Data: 2025-09-30
AI Rating
STRONG SELL
92% Confidence

📊 BKYI Key Takeaways

Revenue: $4.9M
Net Margin: -59.1%
Free Cash Flow: $-2.8M
Current Ratio: 1.26x
Debt/Equity: 0.00x
EPS: $-0.01
AI Rating: STRONG SELL with 92% confidence

Investment Thesis

BIO KEY INTERNATIONAL is in severe financial distress with negative operating cash flow of -$2.8M, deteriorating profitability (net margin of -59.1%), and declining revenue (-10.6% YoY). The company is cash-consuming with operating losses exceeding $2.6M despite maintaining a healthy 77.3% gross margin, indicating fundamental business model challenges beyond cost structure.

BKYI Strengths

  • + Strong gross margin of 77.3% suggests pricing power and product efficiency at the direct cost level
  • + Zero long-term debt eliminates refinancing and solvency risk in near term
  • + Adequate liquidity with current ratio of 1.26x and $2.0M cash provides runway for operations

BKYI Risks

  • ! Negative operating cash flow of -$2.8M indicates the business is not self-sustaining and burning cash
  • ! Revenue declining 10.6% YoY combined with widening operating losses suggests loss of market competitiveness
  • ! Large gap between high gross margin and negative operating margin indicates severe operational inefficiency and high fixed costs relative to revenue base
  • ! Negative ROE of -47.5% and ROA of -28.4% demonstrate poor capital utilization and shareholder value destruction

Key Metrics to Watch

BKYI Financial Metrics

Revenue
$4.9M
Net Income
$-2.9M
EPS (Diluted)
$-0.01
Free Cash Flow
$-2.8M
Total Assets
$10.1M
Cash Position
$2.0M

💡 AI Analyst Insight

BIO KEY INTERNATIONAL INC presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.

BKYI Profitability Ratios

Gross Margin 77.3%
Operating Margin -53.9%
Net Margin -59.1%
ROE -47.5%
ROA -28.4%
FCF Margin -58.6%

BKYI vs Technology Sector

How BIO KEY INTERNATIONAL INC compares to Technology sector averages

Net Margin
BKYI -59.1%
vs
Sector Avg 18.0%
BKYI Sector
ROE
BKYI -47.5%
vs
Sector Avg 22.0%
BKYI Sector
Current Ratio
BKYI 1.3x
vs
Sector Avg 2.5x
BKYI Sector
Debt/Equity
BKYI 0.0x
vs
Sector Avg 0.5x
BKYI Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

BKYI Balance Sheet & Liquidity

Current Ratio
1.26x
Quick Ratio
1.13x
Debt/Equity
0.00x
Debt/Assets
40.2%
Interest Coverage
-1,929.70x
Long-term Debt
$0.0

BKYI 5-Year Financial Trend

BKYI 5-year financial data: Year 2020: Revenue $2.8M, Net Income -$14.6M, EPS N/A. Year 2021: Revenue $5.1M, Net Income -$9.7M, EPS N/A. Year 2022: Revenue $7.0M, Net Income -$5.1M, EPS $-0.65. Year 2023: Revenue $7.8M, Net Income -$11.9M, EPS $-27.26. Year 2024: Revenue $7.8M, Net Income -$1.7M, EPS $-3.04.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: BIO KEY INTERNATIONAL INC's revenue has grown significantly by 173% over the 5-year period, indicating strong business expansion. The most recent EPS of $-3.04 indicates the company is currently unprofitable.

BKYI Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-58.6%
Free cash flow / Revenue

BKYI Quarterly Performance

Quarterly financial performance data for BIO KEY INTERNATIONAL INC including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $1.5M -$510.3K $-0.15
Q2 2025 $1.1M -$510.3K $-0.20
Q1 2025 $1.6M -$510.3K $-0.16
Q3 2024 $1.8M -$510.3K $-0.39
Q2 2024 $1.1M -$510.3K $-1.00
Q1 2024 $2.2M -$510.3K $-0.32
Q3 2023 $1.4M -$288.3K $-0.07
Q2 2023 $1.9M -$288.3K $-0.16

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

BKYI Capital Allocation

Operating Cash Flow
-$2.8M
Cash generated from operations
Capital Expenditures
$7.4K
Investment in assets
Dividends Paid
$125.2K
Returned to shareholders

BKYI SEC Filings

Access official SEC EDGAR filings for BIO KEY INTERNATIONAL INC (CIK: 0001019034)

📋 Recent SEC Filings

Date Form Document Action
Mar 16, 2026 DEF 14A bkyi20260316_def14a.htm View →
Mar 4, 2026 8-K bkyi20260302_8k.htm View →
Jan 5, 2026 4 xslF345X05/rdgdoc.xml View →
Jan 5, 2026 4 xslF345X05/rdgdoc.xml View →
Jan 5, 2026 4 xslF345X05/rdgdoc.xml View →

Frequently Asked Questions about BKYI

What is the AI rating for BKYI?

BIO KEY INTERNATIONAL INC (BKYI) has an AI rating of STRONG SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.

What are BKYI's key strengths?

Strong gross margin of 77.3% suggests pricing power and product efficiency at the direct cost level. Zero long-term debt eliminates refinancing and solvency risk in near term.

What are the risks of investing in BKYI?

Negative operating cash flow of -$2.8M indicates the business is not self-sustaining and burning cash. Revenue declining 10.6% YoY combined with widening operating losses suggests loss of market competitiveness.

What is BKYI's revenue and growth?

BIO KEY INTERNATIONAL INC reported revenue of $4.9M.

Does BKYI pay dividends?

BIO KEY INTERNATIONAL INC pays dividends, with $0.1M distributed to shareholders in the trailing twelve months.

Where can I find BKYI SEC filings?

Official SEC filings for BIO KEY INTERNATIONAL INC (CIK: 0001019034) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is BKYI's EPS?

BIO KEY INTERNATIONAL INC has a diluted EPS of $-0.01.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 21, 2026 | Data as of: 2025-09-30 | Powered by Claude AI