NEXT Biometrics Group (NEXT) Q4 2025 earnings summary

Executive summary

• Q4 2025 saw increased business momentum, especially in India, with three new orders in India and Malaysia totaling NOK 7 million, and the first order for the Oyster III biometric reader for government ID use in Malaysia, plus entry into Vietnam and Sri Lanka with mass production orders.

• Four new design wins in Q4 brought the total to 85 for 2025, up from 64 in 2024, marking a record year and indicating growing customer interest.

• The company secured two new U.S. patents for its anywhere-on-display authentication product and selected a display partner for technology development.

• Q4 2025 revenues were NOK 2.5 million, down from NOK 2.9 million in Q4 2024, reflecting weak sales in India and China.

• Adjusted EBITDA was negative NOK 15.2 million, an improvement from negative NOK 18.6 million in Q4 2024.

Financial highlights

• Q4 2025 revenues were NOK 2.5 million, down from NOK 2.9 million in Q4 2024.

• Adjusted gross margin improved to 69% from 40% in Q4 2024, driven by product mix.

• Adjusted OpEx was NOK 16.9 million, down from NOK 19.9 million in Q4 2024.

• Non-recurring costs included NOK 7.2 million in inventory write-downs, NOK 4.6 million in China partner investigation/litigation, and NOK 0.8 million in share-based remuneration.

• Cash position at quarter-end was NOK 8.3 million, up from NOK 7.4 million at Q3 2024 but down from NOK 62.9 million a year earlier.

Outlook and guidance

• Market activity in India and MOSIP countries is recovering, with normalization expected in Q3 2026 and Bangladesh anticipated to accelerate biometric programs in H2 2026.

• Revenue target for 2026 is NOK 70 million, with a gross margin target of 50–55%.

• Focus on converting NOK 25.4 million in inventory to cash, targeting NOK 50–70 million in revenue.

• Full operational momentum and increased market activity expected in 2026, supported by technology investments and co-development partnerships.

• Liquidity runway into 2027 expected from a bridge loan and rights issue.