The report is available as an online version and as a PDF.
"I am pleased to see our transformation strategy translating into results, with strong core revenue growth in the quarter and for the first half, with strong margins along with a successful monetization of our PC assets." - Adam Philpott, CEO
Highlights
- Robust sales performance, with revenue increasing by 40 percent compared to last year (56 percent in constant currency).
- Gross margin remained strong at 48.1%, significantly higher than the levels in our exited Mobile and PC businesses.
- On August 7, 2025, PC assets were licensed to Egis Technology in a SEK 24 M deal, with additional royalty upside.
Second quarter of 2025
- Revenues amounted to SEK 15.7 M (11.2)
- The gross margin was 48.1 percent (53.5)
- EBITDA amounted to negative SEK 20.3 M (neg: 57.6)
- Adjusted EBITDA amounted to negative SEK 20.3 M (neg: 57.6)
- The operating result was negative SEK 30.5 M (neg: 69.2)
- Earnings per share before and after dilution amounted to SEK 0.00 (neg: 0.01) **
- Cash flow from operating activities was negative SEK 18.3 M* (neg: 20.9), including SEK 0.2 M attributable to discontinued operations
January - June 2025
- Revenues amounted to SEK 33.9 M (20.4)
- The gross margin was 53.0 percent (59.0)
- EBITDA amounted to negative SEK 9.7 M (neg: 113.3)
- Adjusted EBITDA amounted to negative SEK 9.7 M (neg: 113.3)
- The operating result was negative SEK 30.8 M (neg: 136.5)
- Earnings per share before and after dilution amounted to SEK 0.00 (neg: 0.03) **
- Cash flow from operating activities was negative SEK 54.7 M* (neg: 81.0), including a negative SEK 22.0 M attributable to discontinued operations
* Including discontinued operations.
** As the subscription price in the 2024 rights issue was below the market price, a fund element has been identified, which means that the comparison figures have been recalculated.
CEO's comments
Strong progress in executing our transformation
I am pleased to see our strategy translating into results. Strong core revenue growth and successful IP monetization reflect the value of our focused transformation and confirm that we are on the right track. Revenue rose by 40 percent in the second quarter of 2025 (56 percent in constant currency terms), to SEK 15.7 million, contributing to a 66 percent increase for the first half of the year compared to the same period in 2024. This reflects strong demand across our portfolio of biometric authentication solutions and underscoring the growing traction of our strategy to focus on high-value markets - significantly outpacing overall market growth and highlighting our momentum in secure digital identity.
We continued to maintain a strong gross margin - 48.1% in the second quarter and 53.0% in the January-June period - significantly higher than the levels seen in the Mobile and PC businesses we have exited. While the margin was lower than in the same period last year - excluding contributions from the discontinued Mobile and PC businesses - this was due to period-specific changes in the product and customer mix.
As part of the first phase of our transformation, we have significantly reduced our cost base and simplified the organization. Compared to Q2 2024, our continuing operations headcount is down by 59 percent, which has directly driven lower operating expenses and increased our operational flexibility. This has created room to invest in future growth while maintaining financial discipline.
With this leaner cost structure in place, we remain focused on reaching cash flow positivity, while at the same time making targeted investments to drive long-term growth. We also continued streamlining our operations to reduce OPEX and strengthen our financial flexibility. Striking the right balance between near-term financial discipline and long-term value creation is central to our transformation strategy. With continued progress in commercial execution, scaling partnerships, and disciplined cost management, we remain on a clear path toward positive EBITDA.
During the quarter, we took important steps to deepen our market presence and broaden our ecosystem. Let me especially highlight our strategic partnership with Anonybit, which continues to evolve with growing interest in our joint cloud-based platform for privacy-first biometric authentication. A key milestone at the beginning of the second quarter was the integration into Ping Identity's PingOne DaVinci platform - making it easier for enterprises to adopt strong, user-friendly authentication across complex IT environments. This integration is already helping us reach new customers and expand our presence in the enterprise identity market.
In addition, we continued to broaden our market reach through new commercial launches, strategic partnerships, and expanded licensing agreements - highlighting the scalability of our multi-modal platform and our ability to support global customers in implementing secure, privacy-first identity solutions.
Executing to accelerate growth
Following our Annual General Meeting in June, we welcomed two highly experienced new board members, John Lord and Carl Johan Grandinson. Their backgrounds in identity, SaaS, and operational scaling bring valuable expertise as we enter the next phase of our transformation. With their support, we are intensifying efforts to accelerate our strategic execution along four key dimensions: (1) monetizing our technology assets, (2) driving core revenue growth, (3) building new revenue streams, and (4) modernizing our operations for scale.
Our asset monetization efforts are progressing through high-value patent partnerships and licensing models designed to accelerate time-to-cash. Last week, on August 7, we announced that we have entered into an agreement whereby certain PC-related assets will be licensed to Egis Technology (Egis) for a consideration amounting to approximately SEK 24 million (USD 2.5 million), with the majority of the payment anticipated in the third quarter of 2025. The agreement also includes royalty payments that are contingent on Egis's shipment volumes to PC OEMs. This deal with Egis aligns well with our strategy to monetize and unlock value from existing IP assets, and the cash infusion will further strengthen FPC's balance sheet and enhance our financial flexibility. This will enable us to accelerate investments in new revenue streams, reinforcing our leadership in secure authentication. We'll continue to explore monetization of existing assets, realizing value and supporting investments in high-growth areas.
To support both core revenue growth and the development of new revenue streams, we are expanding our sales capacity and strengthening our marketing engine to drive higher engagement and lead generation. This includes a greater focus on digital lead generation, including the build-out of a new website designed to enhance visibility, engagement, and support future growth. We are also building a more structured prospecting engine to support the development of recurring revenue, including the addition of new business development capacity. At the same time, we are advancing strategic initiatives that build on our core strengths, most notably our partnership with Anonybit. Furthermore, we are seeing increased demand for embedded solutions at the edge, and we are pursuing growth in this area both organically and through partnerships. These combined efforts are opening up new opportunities in high-growth segments where secure, identity-first solutions are essential.
Underpinning all of this is a commitment to modernizing how we operate. We are simplifying core processes and adopting AI-based productivity tools across teams to support efficient, scalable execution. Together, these measures are strengthening our ability to deliver sustainable, profitable growth from a leaner, more agile platform.
Adam Philpott, CEO
Today at 09:00 CEST, Fingerprints' CEO Adam Philpott will present the report together with CFO Fredrik Hedlund in a combined webcast and telephone conference. The presentation will be held in English.
The report will be available at fpc.com
The presentation will be webcast, and participants can register via this link: https://edge.media-server.com/mmc/p/mvvrj2ob
For media and analysts: Registration for the teleconference is carried out via this link: https://register-conf.media-server.com/register/BId69a300668974f5d9ba1008e86c69f49
| For information, please contact: Adam Philpott, CEO Fredrik Hedlund, CFO Investor Relations: +46(0)10-172 00 10 investrel@fingerprints.com Press: +46(0)10-172 00 20 press@fingerprints.com This is the type of information that Fingerprint Cards AB is obligated to disclose pursuant to the EU's Market Abuse Regulation. The information was submitted for publication, through the agency of the contact specified above, at 7:00 a.m. CEST on August 14, 2025. | |
About FPC Fingerprint Cards AB (FPC) is a global biometrics leader, offering intelligent edge to cloud biometrics. We envision a secure, seamless world where you are the key to everything. Our solutions - trusted by enterprises, fintechs, and OEMs - power hundreds of millions of products, enabling billions of secure, convenient authentications daily across devices, cards, and digital platforms. From consumer electronics to cybersecurity and enterprise, our cloud-based identity management platforms support multiple biometric modalities, including fingerprints, iris, facial, and more. With improved security and user experience, we are driving the world to passwordless. Discover more at our website and follow us on LinkedIn and X for the latest updates. FPC is listed on Nasdaq Stockholm (FING B). | |
