NEXT Biometrics Group (NEXT) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was NOK 6.9 million, down 46% year-over-year, mainly due to a pause in the India market and slowness in China.

• Adjusted gross margin declined to 52% from 56% in Q1 2024; adjusted EBITDA loss widened to NOK -13.7 million from NOK -9.1 million.

• Six new design wins were achieved, including the first for the Touchpad segment and a major win with India's largest banks.

• Major contracts signed post-Q1 include a NOK 30 million multi-year MoU and a NOK 55–107 million order with ACPL, boosting confidence in H2 2025 and 2026 revenue outlook.

• Cash position at quarter-end was NOK 39.9 million, down from NOK 62.9 million at Q4 2024 and NOK 54.6 million a year earlier.

Financial highlights

• Revenue fell to NOK 6.9 million from NOK 12.8 million in Q1 2024.

• Adjusted gross margin was 52% versus 56% a year ago.

• Adjusted operating expenses rose to NOK 17.3 million from NOK 16.3 million year-over-year.

• Adjusted EBITDA was negative NOK 13.7 million, compared to negative NOK 9.1 million in Q1 2024.

• Net loss after taxes was NOK 17.8 million versus NOK 15.5 million in Q1 2024.

Outlook and guidance

• Full-year 2025 revenue guidance is NOK 130–160 million, with most realized in H2; upside seen for 2026.

• Combined Q2 and Q3 revenue is projected at NOK 60–70 million, with a slow ramp-up in Q2.

• Break-even quarter targeted through strong FAP20 sales; FAP30 expected to drive growth in H2 2025 and 2026.

• Demand for FAP30 sensor is significantly above initial forecasts.