Fingerprint Cards (FING) Q4 2024 earnings summary

Executive summary

• Transformation plan and exit from low-margin Mobile and PC segments drove a 49.8% adjusted gross margin in Q4 2024, up from 17.9% a year ago, with ongoing focus on Payment and Access solutions.

• Core business revenue (Payment and Access) grew 12% year-over-year and 53% quarter-over-quarter, despite a 79% drop in total revenue due to discontinued segments.

• Headcount reduced by 62% year-over-year to 71, supporting cost optimization and a leaner organization.

• Strategic partnerships (Anonybit, Smart Eye, jNet, Infineon, Future Electronics) and product launches (FPC AllKey, iris recognition) expand biometric capabilities and market reach.

• Rights issue in February 2025 raised SEK 115 million, resulting in a debt-free or strengthened balance sheet.

Financial highlights

• Q4 2024 revenue was SEK 41.6m, down 79% year-over-year, mainly due to mobile/PC segment wind-down.

• Adjusted gross margin (excluding R&D depreciation) reached 49.8% in Q4 2024, up from 17.9% a year ago.

• Adjusted EBITDA improved to SEK -29.0m from SEK -46.3m year-over-year, with SEK 11.3m in restructuring costs added back.

• Cash and equivalents at year-end were SEK 12.1m, with an additional SEK 115m raised post-quarter.

• Free cash flow was SEK -46.8m, an improvement from SEK -64.8m year-over-year.

Outlook and guidance

• Focus remains on high-margin Payment and Access solutions, including iris recognition, and further gross margin improvements.

• Continued cost discipline, headcount management, and investment in high-growth areas expected.

• No specific revenue guidance provided; management is cautiously optimistic about growth opportunities from new partnerships and ARR models.