NEXT Biometrics Group (NEXT) Q2 2025 earnings summary

Executive summary

• Q2 2025 results were impacted by market pauses in India and irregularities in China, leading to revenue restatements, lower than expected sales, and a sharp year-over-year revenue decline.

• Launched NEXT Granite (FAP 30) and NEXT Basalt L1 Slim (FAP 20), with the first mass production order for FAP 30 secured and significant new orders post-Q2.

• Achieved 12 new design wins in H1 2025, with total integrations reaching 76 by quarter-end.

• Initiated a private placement of up to NOK 20 million from existing shareholders to address short-term liquidity needs.

• Began reviewing M&A opportunities to position as a biometrics solutions consolidator.

Financial highlights

• Adjusted revenues for Q2 2025 were NOK 4.3 million, down from NOK 18.3 million in Q2 2024; reported revenues were negative due to China-related adjustments.

• Adjusted gross margin was 39% in Q2 2025, down from 57% in Q2 2024.

• Adjusted EBITDA was NOK -14.2 million in Q2 2025, compared to NOK -6.7 million in Q2 2024.

• Cash position at quarter-end was NOK 22.1 million, down from NOK 39.9 million in Q1 2025.

• Loss after taxes for Q2 2025 was NOK 19.7 million, versus NOK 6.1 million loss in Q2 2024.

Outlook and guidance

• Recurring quarterly revenues of NOK 25–30 million expected by Q4 2025 or Q1 2026, with potential to reach NOK 50 million per quarter in 2026.

• Full operational momentum targeted by late 2025/early 2026, with market normalization and sustained execution anticipated.

• Anticipates being cash positive in Q4 2025.

• Revenue pipeline remains healthy, with recurring, yearly, and one-time tender revenues anticipated.