📊 BKYI Key Takeaways
Is Bio Key International Inc. (BKYI) a Good Investment?
BIO KEY INTERNATIONAL is a deteriorating cash-negative business with revenue declining 14.3% YoY and net losses accelerating 66.4% YoY. Despite a strong 76.9% gross margin, severe operating expense drag produces -115% operating margins and -$4.7M operating cash burn, leaving only ~7 months of runway at current burn rates before cash depletion.
BIO-key International shows a software-like gross margin profile, but that advantage is being overwhelmed by weak scale, declining revenue, and deeply negative operating and free cash flow. The balance sheet is not highly levered and long-term debt is zero, but liquidity is only modest and ongoing losses create meaningful execution and financing risk if growth and operating efficiency do not improve.
Bio Key International Inc. Key Strengths (BKYI)
- 76.9% gross margin indicates strong product pricing power or efficient COGS management
- Zero long-term debt eliminates leverage and bankruptcy risk from creditors
- 1.47x current ratio and 1.35x quick ratio provide adequate short-term liquidity
- High gross margin of 77.3% indicates the core product mix can support attractive unit economics at scale
- Debt-free balance sheet with $0.00 in long-term debt reduces financial leverage risk
- Positive stockholders' equity of $6.05M provides some balance sheet cushion despite losses
BKYI Stock Risks: Bio Key International Inc. Investment Risks
- Revenue declining 14.3% YoY signals shrinking market demand or lost customers
- Operating losses of -$6.8M and -115% operating margin indicate unsustainable business model
- Operating cash flow negative at -$4.7M with deteriorating net income (-66.4% YoY) suggests accelerating downward spiral
- Cash runway of ~7 months at current burn rate creates existential liquidity risk
- Zero insider Form 4 filings in last 90 days indicates management lacks confidence to buy shares
- No clear path to profitability given widening losses despite decent gross margins
- Revenue declined 10.6% year over year, suggesting weak growth quality and limited operating leverage
- Operating margin of -53.9% and net margin of -59.1% indicate the business model is currently far from sustainable profitability
- Operating cash flow of -$2.84M and free cash flow of -$2.85M increase the risk of future capital needs if losses persist
Key Metrics to Watch
- Operating cash flow trend - any improvement toward positive would be critical turning point
- Revenue stabilization - further decline accelerates cash depletion timeline
- Operating expense reduction rate - must cut costs faster than revenue is falling to reach breakeven
- Cash position and runway remaining - monitor monthly burn rate closely for covenant violations or financing needs
- Revenue growth and whether gross profit dollars begin expanding consistently
- Operating cash burn and current ratio/liquidity trend over the next few quarters
Bio Key International Inc. (BKYI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Bio Key International Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
BKYI Profit Margin, ROE & Profitability Analysis
BKYI vs Technology Sector: How Bio Key International Inc. Compares
How Bio Key International Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Bio Key International Inc. Stock Overvalued? BKYI Valuation Analysis 2026
Based on fundamental analysis, Bio Key International Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Bio Key International Inc. Balance Sheet: BKYI Debt, Cash & Liquidity
BKYI Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Bio Key International Inc.'s revenue has grown significantly by 35% over the 5-year period, indicating strong business expansion. The most recent EPS of $-20.88 indicates the company is currently unprofitable.
BKYI Revenue Growth, EPS Growth & YoY Performance
BKYI Quarterly Earnings & Performance
| 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.
Bio Key International Inc. Dividends, Buybacks & Capital Allocation
BKYI SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Bio Key International Inc. (CIK: 0001019034)
📋 Recent SEC Filings
❓ Frequently Asked Questions about BKYI
What is the AI rating for BKYI?
Bio Key International Inc. (BKYI) has a Combined AI Grade of C from Claude (D) and ChatGPT (C) with 88% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are BKYI's key strengths?
Claude: 76.9% gross margin indicates strong product pricing power or efficient COGS management. Zero long-term debt eliminates leverage and bankruptcy risk from creditors. ChatGPT: High gross margin of 77.3% indicates the core product mix can support attractive unit economics at scale. Debt-free balance sheet with $0.00 in long-term debt reduces financial leverage risk.
What are the risks of investing in BKYI?
Claude: Revenue declining 14.3% YoY signals shrinking market demand or lost customers. Operating losses of -$6.8M and -115% operating margin indicate unsustainable business model. ChatGPT: Revenue declined 10.6% year over year, suggesting weak growth quality and limited operating leverage. Operating margin of -53.9% and net margin of -59.1% indicate the business model is currently far from sustainable profitability.
What is BKYI's revenue and growth?
Bio Key International Inc. reported revenue of $5.9M.
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?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is BKYI's fundamental grade?
Based on our AI fundamental analysis in June 2026, Bio Key International Inc. has a C grade with 88% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is BKYI stock overvalued or undervalued?
Valuation metrics for BKYI: ROE of -140.2% (sector avg: 22%), net margin of -120.6% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is BKYI's AI grade for 2026?
Our dual AI analysis gives Bio Key International Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is BKYI's free cash flow?
Bio Key International Inc.'s operating cash flow is $-4.7M, with capital expenditures of $12.0K. FCF margin is -78.8%.
How does BKYI compare to other Technology stocks?
Vs Technology sector averages: Net margin -120.6% (avg: 18%), ROE -140.2% (avg: 22%), current ratio 1.47 (avg: 2.5).