Precise Biometrics (PREC) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 2026 were SEK 17.1 million, down 14.5% year-over-year, reflecting continued market uncertainty and lower production volumes, especially in the mobile segment.

• Adjusted EBITDA turned positive at SEK 0.6 million, compared to SEK -1.7 million in Q1 2025, indicating improved cost control.

• A strategic merger with Fingerprint Cards AB was announced and approved, expected to create significant synergies and strengthen market position.

• Operating cash flow was positive at SEK 3.9 million, up from SEK 2.1 million in the prior year.

• Annual Recurring Revenue (ARR) reached SEK 18.7 million, with cloud-based ARR surpassing on-premise for the first time.

Financial highlights

• Net sales: SEK 17.1 million (Q1 2025: SEK 20.0 million), a 14.5% decrease year-over-year.

• Gross margin: 71.8% (Q1 2025: 71.9%).

• EBITDA: SEK -1.4 million (Q1 2025: SEK -1.7 million); Adjusted EBITDA: SEK 0.6 million (Q1 2025: SEK -1.7 million).

• Operating profit (EBIT): SEK -5.8 million (Q1 2025: SEK -7.1 million); Adjusted EBIT: SEK -3.8 million (Q1 2025: SEK -7.1 million).

• Earnings per share: SEK -0.07 (Q1 2025: SEK -0.09).

• Cash and cash equivalents: SEK 18.9 million at period end (Q1 2025: SEK 36.0 million).

Outlook and guidance

• Market remains challenging in the short term due to global uncertainty, especially in mobile and automotive sectors.

• Long-term demand for biometric solutions is expected to grow, driven by security needs, regulatory requirements, and AI development.

• The merger with Fingerprint Cards AB is expected to deliver at least SEK 45 million in annual cost synergies and support double-digit EBITDA margins.

• Integration phase for the merger will be intensive, with completion targeted for early Q3 and a new share issue planned.