NEXT Biometrics Group (NEXT) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was NOK 3.0 million, below expectations due to disruptions in India's Aadhaar market and slow sales in China, with normalization starting late in the quarter.

• Major restatements of 2024 and YTD 2025 revenues and net profits (NOK 52 million and NOK 30 million, respectively) followed internal reviews and irregularities in China.

• Inventory valued at NOK 34.3 million could generate NOK 70 million in revenue at a 50% gross margin when sold.

• Five new design wins in Q3 brought the total to 81, indicating growing market traction.

• NOK 20 million private placement completed post-quarter to address liquidity needs.

Financial highlights

• Q3 2025 revenues were NOK 3.0 million, plus NOK 2.1 million shipped from channel, compared to restated NOK 3.7 million in Q3 2024.

• Adjusted gross margin improved to 51% from a negative margin in Q3 2024.

• Adjusted EBITDA was negative NOK 17.8 million, an improvement from negative NOK 20.3 million in Q3 2024.

• Cash position at quarter-end was NOK 7.4 million, down from NOK 22.1 million at the end of Q2 2025 and NOK 45.5 million a year earlier.

• Negative operational cash flow of NOK 13.5 million in Q3.

Outlook and guidance

• Market momentum is improving, with normalization in India and stabilization in China.

• Focus on converting NOK 34.3 million inventory to revenue, with optimism for growth in coming quarters.

• Cost-cutting measures initiated to preserve cash and liquidity.

• Positive cash flow from operations is expected in 2026, but timing of government tenders and project approvals remains a risk.

• Guidance for gross margin remains at approximately 50%.