Fingerprint Cards: A Transformative Merger with Precise Biometrics
Quarter in Review
The latest quarter marks a significant inflection in Fingerprint Cards' long-running transformation. The company, a small-cap Swedish biometrics specialist, reported 4% year-on-year revenue growth in real terms, but more notably 21% growth in constant currency, alongside a 62.3% gross margin on core products. As CFO Fredrik Hedlund put it: “Our revenue grew by 4% and on a constant currency basis it grew 21%.” — Fredrik Hedlund, CFO · 2026-05-13 This performance comes without any licensing deals, underscoring the underlying strength of the product portfolio.
AllKey: High-Value Pivot Gaining Traction
The strategic narrative is dominated by two interlinked themes: the continued ramp of the AllKey product family and the announced merger with Precise Biometrics. CEO Adam Philpott emphasized that the pipeline is now heavily weighted toward AllKey, the turnkey system that integrates sensors, MCU, and now software. “75% of new pipeline is for AllKey.” — Adam Philpott, CEO · 2026-05-13 Even more striking, 60% of that AllKey pipeline comes from new customers, indicating the product is opening doors beyond the legacy sensor base. The launch of the AllKey software platform further extends the offering, allowing customers to build custom applications on the hardware. This is a deliberate move to capture more of the value chain and achieve the promised 3x average selling price versus bare sensors.
The company's prior calls have consistently pointed toward this transformation. In February, Adam described how the customer base is splitting: “some of the biggest customers we have in our pipeline are newer customers to the company.” — Adam Philpott, Chief Executive Officer · 2026-02-13 The current quarter’s numbers validate that early read—the mix is shifting faster than originally anticipated.
The Precise Biometrics Merger: A Leap Toward Scale
The headline event is the all-stock merger with Precise Biometrics, which received shareholder approval at the EGM in April. The combined entity is expected to generate pro forma revenue of around SEK 160 million and achieve double-digit EBITDA margins after realizing at least SEK 45 million in annual cost synergies. CFO Fredrik Hedlund made the economic case plainly:
The synergies come from consolidating duplicate administrative functions, optimizing systems, and streamlining commercial operations—with a payback period of roughly seven months.the way we look at it is that 1 plus 1 equals 3 in this case.
For Adam, the merger is not just about cost; it is about building a platform for industry consolidation. “What that means is that we're building an incredibly powerful European biometrics platform.” — Adam Philpott, CEO · 2026-05-13 The combined company will offer complementary hardware and software modalities, spanning fingerprint, iris, palm, and cloud-based identity—positioning it to address both physical and digital security. This is a genuine strategic pivot, aligning with the merger with Precise and the cost synergies that are central to the value proposition.
The company’s prior calls had already hinted at inorganic ambitions. In August 2025, Fredrik noted: “Do we have more IP we are not using? Yes, we have. We just have to see when the price is right for those assets and when the demand is there.” — Fredrik Hedlund, CFO · 2025-08-14 Now, with the merger, the balance sheet and earnings profile are expected to improve, giving the management team the financial ammunition to pursue further tuck-in acquisitions.
The report also highlights the paradox of strong growth but negative EBITDA—“EBITDA was negative SEK 14.1 million” — Fredrik Hedlund, CFO · 2026-05-13—underscoring the scale issue. The merger directly addresses this by doubling revenue without doubling cost. As Adam summarized, the company is striving to become "a much stronger company fundamental" through the combination.
In summary, this is a defining quarter: operational momentum on AllKey, a clear path to profitability via the merger, and a longer-term vision of consolidating a fragmented biometrics market. The market is still small (market cap ~SEK 102 million), but the strategic move could reshape its trajectory.