Precise Biometrics: Merger-Fueled Turnaround with a Clear Path to Synergy Realization

After closing its FPC merger and a SEK 100M rights issue, Precise Biometrics sets its sights on doubling revenue, cutting costs, and expanding its biometric portfolio — despite a Q2 volume dip.

PREC.ST · Earnings Call · 2026-08-25

A Quarter of Contrasts: Volume Dip Meets Strategic Milestones

Precise Biometrics' Q2 2026 report (released August 25) was never going to be a simple quarter. CEO Joakim Nydemark opened the call by acknowledging the tension: the company is integrating a transformative merger while simultaneously absorbing a drop in revenue and volume. "We continue to see growth in access and visitor management," he said, but the headline was the volume decline, which he attributed to the low-end, non-ultrasonic market: “the prices of hardware has increased, and this was something that we have seen coming. However, that is impacting to the largest extent, the low-end and non-ultrasonic market.” — Joakim Nydemark, CEO · 2026-08-25 That explanation is crucial. The company had hoped that its focus area — ultrasonic market — would bridge the gap, but it fell short: “we were hoping for bridging that with ultrasonic. However, we weren't able to really beat that, but we still see sort of the trends for our focus area.” — Joakim Nydemark, CEO · 2026-08-25 This is not a wholesale collapse but a shift in mix, and the CEO remains confident in the strategic direction.

The Merger: A New Beginning with Tangible Synergies

The real story of the quarter is the merger with FPC, completed after Q2, which redefines Precise Biometrics' scale and offering. Nydemark called it

the start of the new beginning. So this is really a big step.
Joakim Nydemark, CEO · 2026-08-25

The combined entity brings hardware (sensors, secure element, MCU) together with Precise's software and algorithms, creating a full biometric system. “What we're achieving now is a biometric system that includes both hardware and software.” — Joakim Nydemark, CEO · 2026-08-25 This vertically integrated offer addresses a clear customer pain point: identity theft and data breaches driven by AI. The company is positioning itself at the intersection of cybersecurity and identity — a theme with clear tailwinds. Financially, the merger doubles revenue and lowers costs. The company has already executed on over 30% of the estimated SEK 45 million in annual cost synergies, supported by 14 integration work streams. “We have 14 work streams as part of this integration. And we have already executed on more than 30% of these cost synergies.” — Joakim Nydemark, CEO · 2026-08-25 The goal is to have everything integrated and synergies fully executed by the start of 2027. The SEK 100 million rights issue completed during the summer provides the fuel for integration costs, sales and marketing, and product merge opportunities. “We will continue to grow and invest, of course. So a very forward-leaning sort of spending in sales and marketing to really make sure that we now capitalize on these opportunities.” — Joakim Nydemark, CEO · 2026-08-25

What to Watch: Cross-Sell, New Products, and Further Consolidation

Looking ahead 12–18 months, the CEO outlined a clear roadmap: complete integration, realize synergies, and then demonstrate growth from cross-sell and upsell opportunities. The combined offering opens up new offerings in areas like National ID and FIDO tokens. Nydemark also hinted at more consolidation: “When we have now proven that we are able to execute on this kind of consolidation that we now are working on with FPC, that open up opportunities also in the next step for further consolidation.” — Joakim Nydemark, CEO · 2026-08-25 This suggests a roll-up strategy in the biometric security space. Visitor management remains a growth pillar, and the company's turnkey solutions for enterprise are expected to benefit from the broader market reach. The merged entity offers a larger customer base and geographical presence, positioning it against global security concerns — a narrative that resonates with the broader value chain pivot.

Investment Case: Double Revenue, Lower Cost, Broader Reach

Nydemark summarized the updated investment case in three points: double revenue and lower cost, growing the value chain, and market reach. He added that “the geopolitics and what is driving sort of the opportunities for this merged company, which is the overall security situation in the world and the fast AI development” — Joakim Nydemark, CEO · 2026-08-25 are tailwinds. The company is essentially betting that biometric security becomes a necessity as AI-fueled identity threats escalate. While Q2 was operationally challenging, the strategic picture is compelling. The merger, the rights issue, and the disciplined synergy execution give Precise Biometrics a credible path to a stronger, higher-growth future. Investors will be watching the Q3 report in November — the first to include FPC numbers — for early signs that the integration is translating into revenue growth.