Highlights

• Gross margin excluding R&D depreciation strengthened to 49.8% in Q4 2024 vs. 17.9% in Q4 2023, reflecting the improved revenue mix. See “Trend in operating profit” on page 4.
• Core Payment and Access business grew 11.6% vs Q4 2023 and 52.9% vs. Q3 2024.
• On-going cost reduction: headcount lowered by 34% since the end of Q3 2024 and 62% vs. Q4 2023
• Lower overall sales reflect the wind-down of the non-core, discontinued Mobile and PC product groups. New growth partnerships signed, e.g. Smart Eye and Anonybit.

Fourth quarter of 2024

• Revenues amounted to SEK 41.6 M (200.3*)
• The gross margin was 15.3 percent (9.5)
• EBITDA amounted to negative SEK 40.3 M (neg: 83.8)
• Adjusted EBITDA*** amounted to negative SEK 29.0 M (neg: 46.3)
• The operating result was negative SEK 65.0 M (neg: 105.2)
• Earnings per share before and after dilution amounted to a negative SEK 0.02 (neg: 0.09) **
• Cash flow from operating activities was negative SEK 45.6 M (neg: 60.4)
  
  

January-December 2024

• Revenues amounted to SEK 403.2 M (705.4)
• The gross margin was 11.3 percent (12.7)
• EBITDA amounted to negative SEK 143.2 (neg: 242.2)
• Adjusted EBITDA amounted to negative SEK 149.9 M (neg: 204.7)
• The operating result was negative SEK 521.7 M (neg: 320.4)
• Earnings per share before and after dilution amounted to a negative SEK 0.24 (neg: 0.31) **
• Cash flow from operating activities was negative SEK 207.6 M (neg: 88.3)
• The Board proposes to the Annual General Meeting that no dividend be paid for the 2024 fiscal year

* Numbers in brackets refer to the year-earlier period
** As the subscription price was below the market price, a fund element has been identified, which means that the comparison figures have been recalculated.
*** EBITDA adjusted for costs related to restructuring measures in Q4 2024, amounting to SEK 11.3 million, with the majority attributable to personnel expenses in China.

CEO’s comments

Results reflect continued transformation of our business

Q4 2024 marked a pivotal quarter in executing our Transformation Plan, as we continued our shift from commoditized, low-margin segments to profitable growth areas. Our strategic realignment is delivering strong results, with core product group revenue (excluding Mobile and PC) increasing by 11.6% year-on-year despite the company navigating significant change. Similarly, gross margin, excluding non-cash depreciation of previously capitalized R&D expenses, saw significant improvement to 49.8% from 17.9% in Q4 2023 and 38.7% in Q3 2024. These results underscore the effectiveness of our strategic realignment and provide a strong foundation for future profitability.

Cost optimization and financial resilience

We continue to streamline our operations to enhance financial flexibility, having reduced our headcount to 71 core roles by the end of December, down 34% since the end of Q3 2024 and down 62% from a year ago, ensuring a leaner, more agile organization. Our cost optimization efforts are not just about cutting expenses—they are about strategic investments that position us for sustainable growth. Our successful rights issue in February further solidifies our financial foundation, enabling us to accelerate investments in high-growth areas.

Strategic Focus on High-Growth Markets: Digital Identity & Cybersecurity

The rapid evolution of AI presents both opportunities and threats in cybersecurity. AI-driven attacks, deepfakes and synthetic identities are increasing, making biometrics a critical defense mechanism to replace outdated password-based security. Fingerprints is strategically positioned to address these challenges, and we aim to be at the forefront of Zero Trust security, ensuring continuous authentication and securing enterprises, financial transactions, and systems access.

Our vision, "You are the key to everything", underpins our long-term strategy to replace passwords with biometric-based authentication, improving security and user experience while reducing fraud risks.

Accelerating Growth through Strategic Partnerships & Innovation

Recent milestones demonstrating progress in executing our strategy include new strategic partnerships and product innovations that reinforce our expansion into secure digital identity and authentication:

• Anonybit Partnership: We are advancing enterprise authentication by integrating Fingerprints' biometric technology with Anonybit's decentralized identity platform. This partnership enables passwordless authentication, prevents account takeovers, and strengthens Zero Trust security frameworks.
• Smart Eye Collaboration: Our licensing agreement with Smart Eye expands our biometric portfolio to include facial recognition, eye tracking, and AI.
• Infineon Partnership: Infineon's SECORA™ Pay Bio, featuring Fingerprints' biometric technology, achieved full Visa certification, and Infineon has placed a volume order for our sensors.
• Future Electronics Agreement: Expanding our global reach and accelerating the adoption of FPC AllKey, our next-generation authentication solution designed to eliminate outdated PINs and passwords.

Driving Future Growth with a Clear Strategic Vision

Looking ahead, we are focused on our Smartcard (Payment) and Access solutions, including iris recognition technology, to drive sustained growth. Completing our Mobile and PC exit strategy will optimize costs and improve profitability. We will continue expanding our digital identity solutions, reinforcing our leadership in secure authentication.

With a debt-free balance sheet, a more optimized cost structure, and a robust portfolio of biometric solutions, Fingerprints is positioned for long-term profitable growth and market leadership.

We are committed to delivering value to our shareholders by leveraging our market leadership in secure authentication and driving sustainable, profitable growth. While we are still executing our Transformation Plan, the positive momentum shows encouraging progress. I am confident in our ability to capture new opportunities and lead the industry in secure digital identity solutions.

Adam Philpott, President and CEO

Today at 09:00 CET, 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 fingerprints.com

The presentation will be webcast, and participants can register via this link: https://edge.media-server.com/mmc/p/vakdtsik

For media and analysts: Registration for the teleconference is carried out via this link: https://register-conf.media-server.com/register/BI0b867fcbad904fd98ccd453977149718