Q1 2026 and business update before Annual General Meeting
Oslo, 18 May 2026: The NEXT Biometrics Group ASA ("NEXT" or the "Company") was through a fundamental reset in 2025 due to a too optimistic market guidance, critically elevated accounts receivables, and a joint venture arrangement with the China external sales and marketing partner that needed to be investigated in an independent external investigation due to potential irregularities. The Company adopted a new strategy in December 2025, and focused on monetising existing inventory and sales, and a cost reduction program was initiated. In a strategic context, the Company increased focus on advancing the Anywhere-on-Display platform.
NEXT is still experiencing a significantly lower than expected order intake and cash-inflow, resulting in a shortened liquidity runway. The Company's revenue forecast from its operations is based on a comprehensive review of each underlying customer case. NEXT has three potential sources for its revenues from operations: signed frame agreements and design wins that may lead to future purchase orders, large tenders that can be won, and revenues from one-time sales. Frame agreements and design wins do not represent committed purchase volumes unless binding purchase orders or purchase commitments have been entered into. The revenues from these three sources are to a large extent dependent on governmental budgets and timing of public orders and tenders, which makes both the amount and the timing of revenues difficult to predict.
The Company's interim financial report for the three-month period ended 31 March 2026 (Q1) will be published on 26 May 2026. The Group expects to report operating revenues for Q1 2026 of NOK 1.8 million, operating expenses of NOK 21 million and EBITDA of negative NOK 30 million. Non-recurring operating costs are expected to be approximately NOK 4 million for the quarter, non-cash share-based remuneration cost is expected to be NOK 1 million and non-recurring inventory write-downs are expected to be NOK 10 million. Hence, adjusted Q1 2026 EBITDA is expected to be approximately negative NOK 15 million. Cash as of 31 March 2026 was NOK 6.7 million and debt was NOK 21.5 million, of which NOK 9 million is the shareholder loan that was provided to the Company under a loan agreement dated 20 January 2026 and NOK 12.5 million is the first tranche of the bridge loan announced on 18 March 2026.
On 18 March 2026, the Company also announced the terms of the 82% underwritten rights issue to raise gross proceeds of up to NOK 50 million (the "Rights Issue"). The runway financed by the net proceeds from the Rights Issue is now expected to last until mid Q3 2026 if only the underwritten part of the Rights Issue (NOK 41 million) is subscribed for, and until early Q4 2026 if the maximum amount of the Rights Issue (NOK 50 million) is subscribed for.
The Company have reviewed strategic options for the fingerprint sensor business. The lowered sales have necessitated additional cost reductions to significantly lower fingerprint sensor business operating expenses in the second half of 2026. As a part of the strategic review process, the Company explores a potential divestment, partnerships and/or a licensing agreements in respect of all or parts of its fingerprint sensor business segment. The Company aims to be able to focus on and allocate further resources to the Anywhere-on-display business segment, which the Company considers to have greater revenue potential. Also, financing from partners, R&D spending, and business models for the commercialization phase will be reviewed further.
The Anywhere-on-display business is a development project without short-term revenues. As a part of the strategic review, it will also be considered whether the Company should apply for a delisting from Euronext Oslo Børs.
The Company’s shareholders are encouraged to participate in the annual general meeting to be held tomorrow (19 May) at 10:00 at the Company's offices, Stortorvet 7, 0155 Oslo or digitally via Microsoft Teams. Please send an e-mail to events@nextbiometrics.com to request the Teams meeting invitation.
NEXT Investor contact: Ulf Ritsvall (CEO), ulf.ritsvall@nextbiometrics.com Eirik Underthun (CFO), eirik.underthun@nextbiometrics.com
About NEXT Biometrics
NEXT Biometrics is a pioneer of high-security biometric authentication, enabling users to live simpler, safer lives. NEXT Biometrics was founded on the belief that strong authentication and identification can be secure, seamless and cost effective for governments and businesses with Active Thermal® technology. More than 25 years later, NEXT has retained its Norwegian heritage and grown to serve customers globally.
Today, our solutions are used by billions of users each year across 10+ national ID and local programs, 150,000+ POS terminals, 25+ laptop and tablet models from tier-1 OEMs, and physical and logical access control implementations. Through state-of-the-art technology, deep industry expertise and close collaboration with partners for seamless integration, Active Thermal® biometrics can make life simpler and safer for everyone.
For more information, visit NEXT Biometrics, read our blog and follow us on LinkedIn. NEXT Biometrics is listed on Euronext (NEXT.OL).