"Operationally, we continued to build AllKey momentum with new pipeline, new products and new revenue from the platform." - Adam Philpott, CEO

Highlights

• Q1 2026 revenue increased by 4% (21% in constant currency) with strong gross margin performance.
• On April 30, 2026, FPC's and Precise Biometrics' shareholders approved the merger plan to create a combined business with a stronger offering and broader commercial reach.
• Q1 2026 operating profit was impacted by one-time costs of approximately SEK 3.0 M, primarily related to the planned merger with Precise Biometrics.
• The Q1 2026 net result was affected by a SEK 55 M non-cash tax item (see page 4)

First quarter of 2026

• Revenues amounted to SEK 18.9 M (18.2)
• The gross margin was 62.3 percent (56.6)
• EBITDA amounted to a negative SEK 14.1 M (pos: 10.7)
• The operating result was negative SEK 22.9 M (neg: 0.3)
• Earnings per share before and after dilution amounted to negative SEK 10.31 (neg: 4.61) **
• Cash flow from operating activities was negative SEK 12.7 M* (neg: 36.4)

* Including discontinued operations.

** Adjusted to reflect the reverse share split in September 2025.

CEO’s comments

In the first quarter of 2026, we continued to execute on our focused strategy in secure biometric authentication. Revenue increased by 4 percent (21 percent in constant currency) to SEK 18.9 M, while our gross margin strengthened by 5.7 percentage points to 62.3%, reflecting margin performance purely from our product business and the structurally stronger economics of our current mix as we evolve from a volume to a value player. Operating profit was SEK -22.9 M (-0.3), and was impacted by one-time costs of approximately SEK 3.0 M, primarily related to the planned merger with Precise Biometrics. These costs reflect transaction-related work as well as other preparatory activities ahead of completion, and are not indicative of the underlying cost base in our continuing operations. 

In addition, the reported net result was affected by a significant non-cash tax item: in connection with the signed merger plan, we derecognised our deferred tax assets as of 31 March 2026, as these tax loss carryforwards will no longer be available for utilisation following completion of the merger. In light thereof, the Board took appropriate measures to remedy the equity shortfall by a reduction of the share capital. On 30 April 2026, the Extraordinary General Meeting resolved to approve the merger plan, to amend the company's articles of association, and to reduce the company’s share capital to cover loss.

Strategically, the merger of equals with Precise Biometrics – approved by both companies’ shareholders on April 30, 2026 – is a natural next step in our transformation. The combination strengthens our product breadth across physical and digital identity, expands our commercial reach, and is expected to materially improve the profitability profile of the Combined Company through scale benefits and annual run-rate cost synergies of at least SEK 45 M. Following completion, the Combined Company intends to raise approximately SEK 110 M through a rights issue to accelerate growth and synergy capture, and we have also secured SEK 20 M in bridge financing to support near-term working capital needs ahead of completion.

“Operationally, we continued to build AllKey momentum with new pipeline, new products and new revenue from the platform.”

During the first quarter, we announced the launch of the FPC AllKey Software Platform, enabling customers to develop and run their own applications directly on AllKey devices – an important step further up the value chain, supporting deeper customer integration, longer product lifecycles and higher value per design win. We also saw ongoing market validation of AllKey in enterprise access use cases, including a biometric server rack access control solution for the Indian data centre market and CardLab’s launch of Access FIDO, a multi-function smart card combining physical and logical access in one credential. Finally, in smart cards we reached an important industry milestone by becoming the first biometric company to pass EMVCo’s new biometric assessment process for payment cards – strengthening our position in biometric payments and multi-function credentials.

As we move forward, our priorities are clear: maintain disciplined execution, continue to expand the AllKey platform and customer adoption, and prepare for a smooth transition into the Combined Company – positioned with stronger scale, broader capabilities and a more resilient foundation for profitable growth.

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/4si3u777

For media and analysts: Registration for the teleconference is carried out via this link: https://register-conf.media-server.com/register/BIee3831144ac341bd820268ea0c520464