BIO-key International (NASDAQ: BKYI) reported second-quarter 2026 revenue of $1.92 million, a 13% increase from $1.70 million in the same period a year earlier, according to a company press release. The net loss narrowed 51% to $577,000, or $0.56 per share, compared with a net loss of $1.17 million, or $2.01 per share, in Q2 2025.

License fee revenue drove the top-line gain, rising 53% to $1.23 million. Hardware revenue declined 19% to $460,000, partly due to a delayed customer order now expected to ship in the second half of 2026. Gross margin improved to 87% from 73% a year earlier. Operating expenses fell 5% to $2.20 million.

For the first half of 2026, revenue grew 23% and the net loss improved 59% compared with the first half of 2025.

The company completed a 1-for-10 reverse stock split on April 30, 2026, and regained compliance with Nasdaq listing rules in July. Following the period end, BIO-key raised approximately $2.5 million through a warrant inducement transaction involving the sale of 618,334 shares at $4.06 per share, bringing its cash position to over $4.5 million.

Recent contract activity included a selection by Portugal's national security agency, a national biometric authentication initiative with the Central Bank of Jordan, a partnership with Maktabi Tech for Saudi Arabia's education sector, and a deployment at Alabama's AOD Federal Credit Union.

As of June 30, 2026, stockholders' equity stood at $4.33 million, down from $5.11 million at December 31, 2025. Total assets were $7.48 million.

The company targets revenue growth and profitability for the second half of 2026, supported by anticipated government and financial sector contracts and the delayed hardware order.