Free cash flow remains deeply negative, evidenced by a -147.4% FCF margin in 2025Q4, indicating a structural inability to fund operations through internal cash generation.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | -4.19M | -4.66M | -2.91M | -3.79M | -6.23M | -8.98M | -4.95M | -1.85M | -1.61M | -2.47M | -4.45M | -15.56M | -2.5M | -2.68M | 65.55K | -523.11K | -312.93K | -1.65M | 129.17K | -2.16M | -3.55M | -4.51M | -5.64M | -2.86M | -2.26M | -1.93M | -1.72M | -2.2M | -4.56M | -2.65M | -683.59K |
| Operating CF Margin % | - | -76.5% | -42.05% | -48.92% | -88.73% | -175.55% | -174.5% | -81.6% | -39.89% | -39.12% | -149.44% | -295.75% | -62.48% | -135.14% | 1.71% | -14.91% | -8.89% | -70.2% | 1% | -21.64% | -23.37% | -31.73% | -101.56% | -545.15% | -1457.5% | - | - | -1392.69% | -1184.94% | -571.63% | -2136.23% |
| Operating CF Growth % | -147.43% | -60.01% | 23.18% | 39.1% | 30.62% | -81.38% | -167.52% | -14.68% | 34.56% | 44.56% | 71.42% | -521.68% | 6.74% | -4194.32% | 112.53% | -67.17% | 81.09% | -1381.01% | 105.98% | 39.15% | 21.31% | 20.04% | -97.57% | -26.15% | -17.61% | -11.74% | 21.67% | 51.72% | -71.75% | -288.14% | - |
| Net Income | -4.02M | -4.59M | -4.3M | -8.52M | -11.91M | -5.07M | -9.67M | -14.59M | -6.87M | -4.28M | -4.19M | -1.86M | -1.88M | -2.58M | 3.27K | -1.9M | -649.77K | -2.66M | 184.53K | -1.06M | -11.08M | 358.06K | -7.24M | -3.83M | -4.02M | -2.28M | -3.13M | -3.43M | -5.95M | -2.59M | -823.49K |
| Depreciation & Amortization | 324.46K | 351.73K | 477.53K | 590.14K | 546.01K | 514.07K | 426.91K | 1M | 1.61M | 1.58M | 62.64K | 56.6K | 68.8K | 49.58K | 39.87K | 42.73K | 32.82K | 50.77K | 854.24K | 1.46M | 4.14M | 5.88M | 637.12K | 6.39K | 0 | 31.94K | 137.3K | 485.79K | 633.26K | 103.62K | 20.39K |
| Stock-Based Compensation | 143.83K | 146.57K | 243.25K | 265.73K | 387.91K | 314.71K | 792.1K | 947.72K | 980.22K | 940.73K | 427.84K | 324.12K | 207.26K | 81.64K | 49.84K | 57.18K | 46.38K | 222.1K | 415.35K | 657.6K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 16.5K | 16.5K | -23K | -134.01K | -20.43K | 410K | 0 | 0 | 720K | 500K | -179.09K | -37.88K | -157.25K | -160.45K | -426.84K | 0 | 1M | 1.91M | -119.35K | -5.49M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -655.22K | -209.8K | -8.04K | 4.25M | 5.07M | 128.68K | 4.88M | 8.66M | 123.17K | 32.03K | 167K | 109.2K | -15.31K | 188.84K | 49.84K | 793.93K | -1.02M | 297.51K | -474.37K | 532.88K | 573.97K | -14.87M | 52.12K | 1.78M | 1.05M | 143.17K | 576.98K | 104.59K | 1.38M | 148.09K | 1.84K |
| Working Capital Changes | 43.68K | -377.55K | 696.88K | -244.07K | -299.02K | -5.28M | -1.38M | 2.13M | 1.82M | -1.24M | -735.53K | -14.15M | -722.85K | -261.37K | 349.57K | 480.65K | 274.04K | -1.48M | -731.23K | 1.73M | 2.81M | 4.12M | 903.46K | -816.14K | 707.46K | 182.93K | 692.84K | 637.95K | -620.14K | -311.2K | 117.66K |
| Change in Receivables | -752.72K | -201.41K | 880.98K | -478.56K | -339.38K | -672.58K | -186.77K | 829.41K | 1.34M | -1M | 258.16K | -2.72M | -341.32K | 320.76K | 359.56K | -622.25M | 496.12K | -756.76K | 1.53M | 748.65K | 345.05K | 0 | 1.46M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 401.39K | 520.83K | 280.44K | 402.13K | 106.29K | -4.61M | 98.17K | 569.71K | -51.98K | -481.42K | -116.78K | -336.82K | -2.45K | -5.19K | 4.05K | 1.54K | 5.16K | -1.78K | -8.28K | 6.49K | -8.36K | 20.84K | 36.26K | 0 | 0 | 0 | 0 | 94.27K | -545.36K | -358.7K | -100.62K |
| Change in Payables | -39.87K | -301.52K | -502.99K | 57.73K | 239.14K | 183.61K | -600.4K | 438.02K | -17.96K | 32.39K | -691.71K | 811.24K | -193.6K | -480.36K | 243.84K | 507.03K | -159.83K | 88.03K | -33.1K | -174.39K | -549.04K | 0 | -386.31K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -7.44K | -12.01K | -13.05K | -1K | -696.62K | -42.02K | -2.23M | -543.31K | -82.46K | -226.76K | -52.98K | -3.36K | -18.63K | -129.41K | 0 | 3.29M | 30.6K | 6.94M | 618.97K | 7.16M | 799.85K | 1.83M | -15.13M | -94.76K | 1.61K | -2.63K | -12.52K | 178.53K | -31.4K | -171.5K | -45.93K |
| Capital Expenditures | -7.44K | -12.01K | -13.05K | -1K | -82.04K | -42.02K | -35.57K | -30.49K | -82.46K | -226.76K | -52.98K | -3.36K | -18.63K | -129.41K | 0 | -56.2K | -9.9K | -42.78K | -38.16K | -49.21K | -228.35K | -214.4K | -275.19K | -66.54K | 0 | 0 | 0 | -2.44K | -31.4K | -163.4K | -43.28K |
| CapEx % of Revenue | 0.11% | 0.2% | 0.19% | 0.01% | 1.17% | 0.82% | 1.25% | 1.34% | 2.04% | 3.6% | 1.78% | 0.06% | 0.47% | 6.52% | - | 1.6% | 0.28% | 1.81% | 0.3% | 0.49% | 1.5% | 1.51% | 4.95% | 12.7% | - | - | - | 1.54% | 8.17% | 35.2% | 135.25% |
| Acquisitions | 0 | 0 | 0 | 0 | -623.58K | 0 | -1.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7M | -65.35K | 7M | 0 | 0 | -10.93M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | -614.58M | 0 | -295K | 0 | -30.4K | -60.7K | 0 | 0 | 0 | 0 | 0 | 3.35B | 40.5M | -42.79M | 10.53K | 209.99K | 28.21K | 1.06M | -2.92M | -28.21K | 1.61K | -2.63K | -12.52K | 180.97K | 0 | -8.1K | -2.65K |
| Cash from Financing | 3.34M | 6.91M | 2.83M | 1.43M | 1.9M | -218.6K | 24.09M | 2.15M | 1.73M | 1.92M | 1.24M | 19.04M | 1.34M | 4.75M | -25K | -3.74M | 500K | -6.21M | 0 | -4.66M | 1.96M | 3.16M | 20.72M | 3.95M | 1.77M | 2.39M | 1.68M | 1.06M | 2.3M | 6.09M | 813.44K |
| Debt Issued (Net) | 433.65K | 398.61K | 1.09M | -2.32M | 2M | -250K | -989.99K | 2.51M | 0 | 0 | 0 | 0 | 0 | -321.43K | -25K | -3.61M | 0 | -2.16M | 0 | -4.66M | 634.96K | 2.9M | 10.15M | 3.85M | 1.83M | 1.37M | 1.5M | 150K | 1.77M | -330K | 188K |
| Equity Issued (Net) | 2.94M | 6.5M | 1.74M | 3.73M | 56.38K | 36.63K | 22.17M | 0 | 1.88M | 2M | 1.86M | 19.5M | 1.59M | 5.65M | 0 | 0 | 0 | -4M | 0 | 0 | 1.51M | 558.79K | 11.25M | 61.66K | 0 | 0 | 183.52K | 775.04K | 113.27K | 6.42M | 573.5K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -630.41K | -535.1K | 0 | 0 | 0 | 0 | -125.21K | 0 | -37.21K | 0 | 0 | -55.87K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -28.1K | 10.08K | 0 | 17.8K | -155.14K | -5.23K | 2.91M | -361.27K | -143.94K | 550.04K | -84.87K | -459.1K | -253.16K | -575.68K | 0 | 0 | 500K | 0 | 0 | 0 | -131.55K | -305.05K | -678.69K | 34.03K | -64.9K | 1.02M | 0 | 134K | 412.02K | 0 | 51.94K |
| Net Change in Cash | -885.77K | 2.26M | -73.8K | -2.12M | -5.12M | -9.24M | 16.91M | -244.93K | 35.22K | -772.59K | -3.26M | 3.48M | -1.18M | 1.94M | 40.55K | -966.66K | 217.67K | -920.49K | 748.14K | 337.61K | -795.66K | 466.6K | -56.56K | 996.04K | -498.22K | 466.14K | -52.32K | -962.46K | -2.29M | 3.26M | 83.91K |
| Free Cash Flow | -4.19M | -4.67M | -2.93M | -3.79M | -6.31M | -9.02M | -4.99M | -1.88M | -1.7M | -2.69M | -4.5M | -15.56M | -2.52M | -2.81M | 65.55K | -579.32K | -322.83K | -1.7M | 91.02K | -2.21M | -3.78M | -4.73M | -5.92M | -2.92M | -2.26M | -1.93M | -1.72M | -2.2M | -4.59M | -2.82M | -726.87K |
| FCF Margin % | -63.21% | -76.7% | -42.24% | -48.93% | -89.9% | -176.37% | -175.75% | -82.95% | -41.93% | -42.71% | -151.22% | -295.81% | -62.95% | -141.66% | 1.71% | -16.51% | -9.17% | -72.01% | 0.71% | -22.13% | -24.88% | -33.23% | -106.51% | -557.85% | -1457.5% | - | - | -1394.23% | -1193.1% | -606.83% | -2271.48% |
| FCF Growth % | -3.22% | -59.71% | 22.86% | 39.88% | 30.04% | -80.93% | -165.08% | -10.9% | 37.01% | 40.17% | 71.09% | -517.22% | 10.37% | -4391.74% | 111.32% | -79.45% | 80.98% | -1965.03% | 104.12% | 41.52% | 20.05% | 20.14% | -102.48% | -29.08% | -17.61% | -11.74% | 21.75% | 52% | -62.9% | -287.51% | - |
| FCF per Share | -6.34 | -7.03 | -14.21 | -67.72 | -144.48 | -208.38 | -115.46 | -190.41 | -210.39 | -584.00 | -1159.74 | -4073.14 | -737.95 | -1059.23 | 28.39 | -256.22 | -143.23 | -808.72 | 49.04 | -1301.78 | -2601.38 | -3139.38 | -5878.80 | -5755.29 | -5913.67 | -5731.32 | -6221.38 | -9176.95 | -21144.84 | -13875.37 | -2550.44 |
| FCF Conversion (FCF/Net Income) | 1.04x | 1.02x | 0.68x | 0.45x | 0.52x | 1.77x | 0.51x | 0.13x | 0.23x | 0.58x | 1.06x | 8.38x | 1.33x | 1.04x | 20.06x | 0.28x | 1.02x | -0.35x | 1.08x | 2.04x | 0.32x | -12.61x | 0.78x | 0.75x | 0.56x | 0.84x | 0.55x | 0.64x | 0.77x | 1.02x | 0.83x |
| Interest Paid | 0 | 0 | 0 | 0 | 10.46K | 0 | 0 | 72.82K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 80.29K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 25.68K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 41.17K | 12.39K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Liquidity and dilution risk
As reported in financial statements, BKYI's operating cash flow frequently deviates from net income, with the OCF/NI ratio fluctuating wildly, including a 2.17 reading in 2026Q1, which suggests that reported losses are not being mitigated by consistent cash generation from core operations.
The lack of a stable relationship between net income and operating cash flow indicates that accruals and non-cash adjustments are masking the true cash-generative capacity of the business. Investors should monitor this divergence, as it suggests that the company's accounting earnings are not currently reflective of its underlying cash burn reality.
According to recent SEC filings, BKYI's free cash flow trajectory remains deeply negative, with the company recording a -147.4% FCF margin in 2025Q4, highlighting a structural inability to fund operations through internal cash generation despite the ongoing transition toward a recurring software revenue model.
The consistent failure to achieve positive free cash flow suggests that the company's current business model is not yet self-sustaining. This trend warrants further investigation into whether the high cost of customer acquisition and corporate overhead will continue to outpace the growth of the PortalGuard platform.
Based on BKYI's reported figures, working capital changes have been highly erratic, swinging from a $689.3K inflow in 2024Q4 to a $421.2K outflow in 2025Q1, which indicates that the company's cash position is highly sensitive to the timing of collections and project-based payment cycles.
This volatility suggests that the company may be struggling to manage its receivables effectively, particularly regarding large-scale international contracts. Such fluctuations in working capital appear to exacerbate the company's liquidity constraints, making it difficult to predict cash availability on a quarterly basis.
As evidenced by the cash flow statement, BKYI relies on stock-based compensation, which averaged over $50K per quarter, to supplement its cash position, a practice that may obscure the true economic cost of talent retention in a highly competitive identity management market.
While stock-based compensation is a non-cash expense, it represents a real dilution risk for shareholders that is not fully captured in the operating cash flow figures. Analysts should consider this as a potential hidden cost that effectively subsidizes the company's inability to generate sufficient cash from its core business activities.
Quick answers to the most common questions about buying BKYI stock.
BIO-key International, Inc. (BKYI) generated $-4.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
BIO-key International, Inc. (BKYI) reported negative free cash flow of $4.7M in 2025, indicating capital requirements exceeded cash from operations.
BIO-key International, Inc. (BKYI) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.