Q3 2025 Earnings Presentation
Adam Philpott, CEO Fredrik Hedlund, CFO
October 28, 2025
Agenda
01. | 02. | 03. |
Executive | Transformation | Asset |
summary | Plan | Monetization |
04. | 05. | 06. |
Core Growth | New Growth | Business Modernization |
07. | 08. | 0G. |
Key Figures | Future Growth | QCA |
Cash Burn and EBITDA
Building towards positive EBITDA and FCF in via double-digit profitable growth and asset monetization
Asset Monetizations
Upfront cash deals: Egis SEK 24m in Q3; Pixart SEK 19m in Q4
Core Growth
Revenue +35% YoY growth (+53% YTD 2025)
Gross margin 68.6% (58.7% YTD 2025)
AllKey platform momentum: Scaling from sensors to integrated systems - ~3X ASP and long-term growth platform
New Growth
Identity Cloud Partnership (Anonybit): Launched MSFT Entra product
Go-to-Market: Added 2 dedicated sellers in the US
Business Modernization
Operational efficiency: Headcount -54% YoY
AI-driven agentic marketing + lead-generation engines
Key figures
SEKm
Q3 2025
Q3 2024
Change
Q2 2025
Revenue
20.4
15.2
+35%
15.7
Gross margin %
68.6%
56.3%
+13 pp
48.1%
EBITDA1
-9.8
-40.8
nm
-20.3
Free cash flow2
-2.3
-27.6
nm
-18.4
Headcount3
49
107
-54%
49
Notes: 1) No adjustments. 2) FCF = Operating Cash Flow + Investing Cash Flow. 3) End of Period, Including consultants
(Q3'25 excl. 1 and Q2'25 excl. 3 DiscOps headcount)
© 2025 Fingerprint Cards AB
Year 2 of transformation: Accelerate GrowthSTABILITY
Focus on cost optimization, financial discipline, and Core high margin products
1
Asset Monetization
Strategic execution Three phase plan2
Growth: Core
Business
Egis SEK 24m Pixart SEK 19m
53% YoY YTD
AllKey Pipeline
PHASE ONE
✓
ACCELERATE GROWTH
Strategically invest for profitable growth
PHASE
TWO
✓
OPERATIONAL EXCELLENCE
Maintaining financial discipline and a strong balance
sheet to sustain transformation
PHASE
THREE
3
Growth: New
Business
MSFT Entra Product GTM expansion
4
Business
Modernization
HC -54% YoY
Agentic Foundation
1
Asset Monetization: Scalable and Capital-Light Growth Engine2025 Deals1
(Cash Upfront)
A
B
C
Discontinued Assets Operating Assets Capabilities
Asset Monetization
SEK 19M
Mobile IP (Egis)
PC IP (Egis, Pixart)
IRIS (SmartEye)
D
Royalties / Future Revenue
Generic IP (Egis)
Egis, Pixart, SmartEye
Engineering (Egis)
Algorithms
Software
Note: 1) Per announcements
SEK 24M
SEK 23M
Multiple sources of incremental revenue
2
Core Growth: From Sensors to Systems2025: Component Provider 2026+: Full System Innovator Financial & Strategic Implications
Host Device
Fingerprint Sensor
Host Device
Fingerprint Sensor
Software
Memory
Micro Controller3X ASP increase: Sensors to Higher-Value Systems
Secure Element
Total Cost to Client ↓
Revenue (~3x ASP) ↑
Profitability ↑
Commercial Velocity ↑
Competitive Moat ↑
Addressable Market ↑
2
Core Growth: Expanded AllKey Product FamilyNew
New
AllKey (Standard)
Versatile entry-level platform
Fingerprint authentication and personalization
FPC inhouse developed OS
Easy to customize
Customers requiring proven turnkey authentication
AllKey Pro
Enhanced security and features
Enhanced security
Highest Anti Spoof Detection
Rich peripheral support
Customers requiring advanced features
AllKey Ultra
Highest security platform
Integrated secure element (SE)
Powered by JavaCard OS
Incl. FIDO-certified applet
Customers requiring highest security
AllKey Ultra Edge
Allkey Ultra - Slim form factor
Slim profile enabling flexible side-mount applications
Scalable Platform for Long-Term Revenue Growth (~3X ASP)
3
New Growth Areas - Iris and Identity Cloud IRIS FPC Identity CloudCMITech's EF-70: Broader Iris adoption
Smart Eye partnership: Small form-factor Face, Eye-tracking and Iris modality
Launched Microsoft Entra product
Cloud fingerprint integration
Go-to-Market: Expanded US capacity
EF-70 Camera
4
Business Modernization - AI Operations Headcount 1(#) Operational Leverage-54%
107
49
Sales modernization:
AI-driven agentic marketing
AI-driven agentic lead-generation
Engineering:
AI-enabled coding
(cycle-time ↓, quality ↑)
Q3'24
Q3'25 Future
Business services:
Automation, data-driven workflows
Notes: 1) End of Period, Incl. consultants (excl. 1 DiscOps)
Scaling Top Line Without Increasing Headcount
SEKm | Q3 2025 | Q3 2024 | Change | Q2 2025 |
Revenue | 20.4 | 15.2 | +35% | 15.7 |
Gross profit | 14.0 | 8.5 | +65% | 7.6 |
Gross margin % | 68.6% | 56.3% | +13 pp | 48.1% |
EBITDA1 | -9.8 | -40.8 | nm | -20.3 |
Free cash flow2 | -2.3 | -27.6 | nm | -18.4 |
Cash and cash equivalents | 28.3 | 48.8 | -42% | 32.7 |
Headcount3 | 49 | 107 | -54% | 49 |
Key Figures
Notes: 1) No adjustments. 2) FCF = Operating Cash Flow + Investing Cash Flow. 3) End of Period, Including consultants
(Q3'25 excl. 1 and Q2'25 excl. 3 DiscOps headcount)
Q3 Dynamics
Revenue: +35% YoY growth (+ 53% YTD 2025)
Gross margin: 68.6% (58.7% YTD 2025)
EBITDA: SEK -9.8m, driving toward positive EBITDA
FCF: SEK -2.3m, driving toward positive cash flow
Cash & Equivalents: Decreased by SEK 4.4m to SEK 28.3m, driven by SEK -2.3m FCF and SEK -2.1m from FX impact/Other
Headcount: -54% YoY, reflecting ongoing cost optimization
Asset monetization: Monetized PC assets and IP (SEK 19m, Pixart) in October, securing cash and royalty upside to fund ongoing operations and growth initiatives
Cash position of SEK 28.3m plus Pixart SEK 19m asset monetization secures runway to execute growth initiatives and drive towards profitability
Future Growth: Fragmented Identity Ecosystem Opportunity
$120B Digital Identity Market growing >20% annually1
© 2025 FPC
Sources: (1) Market Research Future: Digital Identity Market, 2025; (2) Picture: Aculty Market Intelligence.
Q3 Summary: Progress and Strategic Outlook
Solid Progress on
Strategic Turnaround
Core revenue growth of 35% YoY Q3. (53% YoY YTD: ~2x1
market)
Gross margin of 68.6% (58.7% YTD), reflecting shift to high-value products
Operational discipline: -54% headcount; AI tooling to support efficient growth
Key Milestones Achieved
Monetized assets in Q4 (SEK 19m, Pixart), securing cash and ongoing royalty streams to fund growth initiatives
AllKey platform: Moving up the value chain -
from sensors to scalable systems with ~3X ASP
Identity Cloud Partnership: launched launched Microsoft Entra product; positions FPC for higher-multiple recurring revenue
Strategic Focus
Going Forward
Transformation Year 2: Accelerate growth
Drive positive EBITDA and FCF through continued operational discipline
Leverage and expand biometric strength into broader Identity market
(1) Precedence Research (Jun-25): Biometrics market CAGR'25-34 = 20%, reaching $307B by 2034
Q&A
https://www.fpc.com
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Fingerprint Cards AB published this content on October 28, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on October 28, 2025 at 07:01 UTC.
