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NEXT Biometrics Group ASA
Quarterly Report • Aug 20, 2025
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Quarterly Report
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Quarterly Report | Q2 2025
nextbiometrics.com
NEXT Biometrics Group ASA Quarterly report – Q2 2025
Highlights
- Adjusted revenues of NOK 4.3 m (NOK 18.3 m Q2 2024)
- Adjusted gross profit (%) at 39% (57% Q2 2024)
- Secured 6 new design wins in Q2 2025, bringing our total to 76 design wins by the end of the quarter — up from 55 in Q2 2024, showing solid market traction
- Adjusted EBITDA of NOK -14.2 m in Q2 2025, reflecting the impact of lower revenues, while positioning the company for the future.
- Cash position of NOK 22.1 m as of 30 June 2025 (NOK 40.9 m as per 30 June 2024)
- Successfully launched our FAP30 NEXT Granite Sensor and FAP20 NEXT Basalt L1 Slim to the market — an important step in expanding our global footprint and technology leadership in National IDs, Banking and Finance.
A message from our CEO
Q2 adjusted revenues were NOK 4.3 million and reported revenues were negative NOK 2.2 million. Revenue for the quarter came in below our expectations due slow ramp up from India after the L1 pause and slow sales in China. We have made a negative adjustment of NOK 6.5 million in revenues for Q2 2025 due to expected product returns and discounts due to changing market conditions in China. We expect this price reduction will accelerate sales and reduce inventory for our distributors in China.
Moreover, we have uncovered irregularities in China relating to historical sales, payment terms and order processes. As a result, we have made a preliminary restatement of 2024, which is explained in note 6. Importantly, we plan to repossess the products and to swiftly deliver these products to new or existing customers, some as early as in the third quarter of 2025. Additionally, our revenue pipeline remains healthy. We've also taken measures internally to tighten compliance and ensure we uphold our values, and ways of doing business, across all markets.
Earlier this year, we maintained inventory levels for our distributor partners that reflected the projected requirements of the market. As I shared in my last quarterly update, the market pauses in India, coupled with project integration and certification with some end-customers, have temporarily slowed shipments. Our current focus is clear: We're working closely with our partners to accelerate their product readiness and launch schedules. While this may impact near-term shipments, we expect a strong rebound as distributor stock levels normalise in the second half of this year. To be clear, we expect demand to both resume and accelerate.
Playing a part in this confidence, and something that I'm especially proud of, is the launch of two important new products the last quarter. Both of these solutions position us ahead of the market and at the forefront of innovation in our sector. The first is our next-generation FAP 30 solution, the 'NEXT Granite Sensor', which combines advanced functionality with strong gross margins and is already generating significant interest. Most notably, we've already signed a Memorandum of Understanding valued at NOK 18 million annually, with deliveries starting in the second half of 2025.
The second key product launch is our 'NEXT Basalt - L1 Slim', the thinnest FAP 20-sized sensor of its kind, specifically designed for the Indian market where demand is rapidly accelerating. This product strengthens our competitive edge and is already gaining traction with both existing and new partners. For example, in Q2 we confirmed both a NOK 55-107 million order from ACPL and a NOK 6.3 million purchase order with distributor
Quarterly report – Q2 2025
XM Holder. Together, these launches represent a major leap forward for NEXT and are expected to be central to our growth in 2025 and beyond.
You may see from the above that we have introduced a new approach to our product naming, based on the natural world and our Nordic heritage. As we gain further momentum, we have also altered how we share announcements with ourshareholders and the wider market. Orders below NOK 5 million will now be classified as a 'News Release' and not considered a regulatory update. Orders above that value will be shared as a regulatory 'Press Release'. You can find all of these updates in the Newsroom on our webpage. You can also sign up to our newsletter to stay up-to-date on all of our latest news – just scroll to the bottom of any web page for the 'sign up' button.
Looking ahead, I'm confident. We have the right products and a resilient team determined to deliver. NEXT is uniquely positioned in the high-end fingerprint sensor market and, while we have work to do, we are building a stronger, smarter, and more focused company that is ready for the future.
Given the positive outlook, we have decided to review alternative M&A opportunities. By positioning NEXT as a biometrics solutions consolidator, we can enhance our market position, expand our offering and unlock new revenue streams to benefit our customers, team and shareholders. We will also be able to realise cost efficiencies across operations and product lines. The overall aim is to build a leading biometric hardware and solutions provider that is the go-to partner for OEMs and other customer projects.
Thank you again for being part of this journey.
Ulf Ritsvall, CEO of NEXT Biometrics Group ASA
| Amounts as restated |
|||||
|---|---|---|---|---|---|
| 6 months | 6 months | ||||
| (amounts in NOK million) | Q2 2025 | Q2 2024 | 2025 | 2024 Full Year 2024 | |
| Total revenues | -2,2 | 18,3 | 4,7 | 31,1 | 59,0 |
| Adjusted gross profit (%)1) | NA | 57% | NA | 56% | 45% |
| Adjusted EBITDA1) | -14,2 | -6,7 | -27,8 | -15,8 | -38,7 |
| Cash - closing balance | 22,1 | 40,9 | 22,1 | 40,9 | 62,9 |
1) See definition on page 19
Operational review
Q2 2025 adjusted revenues were NOK 4.3 million (reported revenues were negative NOK 2.2 million) compared to NOK 18.3 million in Q2 2024. In addition, NEXT distributors shipped additional products to the market in India, which reduced distributor stock levels in the quarter. As expected, the temporary stop of sensor deployments in India in Q4/Q1 and the subsequent reopening of the market early March led to a slow ramp up of sensor shipments to the India market in Q2.
NEXT's Q2 2025 adjusted gross profit was 39%, vs. 57% in Q2 2024. The adjusted gross profit was lower in Q2 2025 due to the shipped product mix.
6 new design wins were added during the second quarter. The total number of design-wins was 76 customer product integrations as per 30 June 2025, compared to a total 55 as of 30 June 2024.
Quarterly report – Q2 2025
NEXT continued to work with its OEM customers to integrate NEXT HW and SW into new end products during Q2. The China-ID market continued to be slow in Q2. The India market was growing again in Q2 following the temporary pause of all new business within the Adhaar system, and NEXT shipment volumes to India started a slow ramp up. During the quarter NEXT launched FAP 20 Basalt L1 Slim sensor to the market and announced the first L1 slim order valued at NOK 6.3 million.
NEXT continued R&D activities developing FAP30 sized fingerprint sensors during the quarter. First shipment of FAP30 sensors to end-customers is expected in Q4 2025. The FAP30 product broadens NEXT's product portfolio and makes NEXT a more attractive partner to international OEMs (Original Equipment Manufacturers).
Subsequent to quarter-end, NEXT signed a factoring agreement with a Nordic Bank, which will be implemented during the third quarter.
Interim condensed financial statements as of 30 June 2025 (unaudited)
Statement of comprehensive income
Adjusted revenues for Q2 2025 were NOK 4.3 million (reported revenues were negative NOK 2.2 million) compared to NOK 18.3 million in Q2 2024. The decrease in revenues relative to Q2 2024 was due to revenue adjustments relating to China and slow sales in China and India. Several accounting adjustments were made in the quarter. First, a NOK 1.7 million reduction in revenue was booked for products expected to be returned. Additionally, NEXT also granted NOK 4.8 million in discounts due to changing market conditions in China. These discounts were granted during Q2 2025 related to completed sales in previous periods of products our distributors control and were not part of the original agreements, neither implicitly nor explicitly. Please also see note 2 for further information.
Moreover, NEXT made a preliminary restated 2024 financial accounts with an additional NOK 12.6 million revenue reversal and NOK 3.6 million reduction in other operating expenses. Please see note 6 for additional details.
Cost of materials were NOK 2.6 million in Q2 2025 compared to NOK 8.0 million in Q2 2024.
Payroll expenses, excluding stock option costs, were NOK 8.3 million in Q2 2025 compared to NOK 7.6 million in Q2 2024. Net employee stock option and option social security cost were NOK 1.4 million in Q2 2025 compared to a negative net cost of NOK 1.8 million in Q2 2024. See note 4 for further information on stock option and option social security cost.
Other operating expenses were NOK 4.1 million in Q2 2025 compared to NOK 9.5 million in Q2 2024. The decrease in costs in Q2 2025 from the cost level seen in Q2 2024 is mainly due to a NOK 3.7 million reversal in sales and marketing incentive fees during the quarter. Please see note 4 for further details.
Depreciation and amortization were NOK 1.2 million in Q2 2025 compared to NOK 1.5 million in Q2 2024.
Net financial items were positive NOK 0.03 million in Q2 2025 compared to positive NOK 0.4 million in Q2 2024.
Income tax expense was NOK 0.03 million in Q2 2025, compared to income tax expense NOK 0.03 million in Q2 2024.
Quarterly report – Q2 2025 EBITDA was negative NOK 18.6 million in Q2 2025, compared to negative NOK 4.9 million in Q2 2024. The lowered Q2 2025 EBITDA is mainly due to slow sales and the revenue adjustments and discounts that were booked in the quarter. Adjusted EBITDA was negative NOK 14.2 million in Q2 2025, compared to negative NOK 6.7 million in Q2 2024.
Loss after taxes for Q2 2025 was NOK 19.7 million compared to a loss of NOK 6.1 million for Q2 2024.
Statement of financial position and cash flow
Cash amounted to NOK 22.1 million as per 30 June 2025, compared to NOK 40.9 million as per 30 June 2024.
Net cash flow from operating activities was negative NOK 16.4 million in Q2 2025, compared to negative NOK 14.0 million in Q2 2024. The negative cash flow in Q2 2025 was mainly due to operating losses.
Net cash flow from investing activities was negative NOK 0.6 million in Q2 2025, compared to negative NOK 0.01 million in Q2 2024. The investments in the quarter are related to the capitalization of internal manpower and costs related to development of new products.
Net cash flow from financing activities was negative NOK 0.5 million in Q2 2025 compared to positive NOK 0.05 million in Q2 2024.
Going concern
The Group's financial statements for Q2 2025 have been prepared on the basis of a going concern assumption. In the view of the board of directors, the Group's limited working capital creates a risk to this assumption. Please see note 1 for further details.
Risk
NEXT manages its risk exposure within the Group in accordance with the policies established by the Board of Directors. Please see the 2024 annual report for more details. For the second half of 2025, NEXT maintains a special emphasis on liquidity risks and the Group regularly monitors and updates its financial position and cash flow forecasts. Management forecasts a tight liquidity situation in the second half of 2025. This is due to several factors, including working capital needs to finance NEXT's expected growth in the second half of 2025 and slower than expected payments on outstanding account receivables in the first half of 2025.
Outlook
We see a clear path to accelerating growth, underpinned by a robust and expanding revenue pipeline. Firstly, new customer wins and signed contracts in India, the U.S., and China are expected to translate into recurring quarterly revenues of at least NOK 25–30 million as we reach full operational momentum. This is anticipated by Q4 2025 or, at the latest, Q1 2026. In addition, we are expecting design-win and large tenders / one-time revenues. Hence, NEXT has three revenue streams driving growth, which combined is expected to make the company reaching close to NOK 50 million per quarter during 2026. The structural demand drivers in our key markets also remain strong, and our product portfolio is well-positioned to capture these opportunities.
Looking further into 2026 we expect further normalisation of the market, and with sustained execution and continued market expansion, we expect revenues to fully reflect the current revenue pipeline. This outlook is based on our confidence in both our market position and our ability to deliver meaningful value creation for our shareholders.
Quarterly report – Q2 2025 NEXT's product development efforts are key to this. Remarkable work from our product and R&D teams has evolved our patented and proven Active Thermal technology into a sophisticated suite of products, including the FAP 20 Basalt sensor series, including the new L1 Slim, FAP20 China ID, and the FAP 30 Granite Sensor. The company has considerable revenue potential with these products. For most we already have pilot and anchor customers in place, in addition to key product certifications for key markets like India and China. Moreover, we are expecting the certifications to be completed in Bangladesh in the third quarter. Finally, we expect the challenges and delays that we have faced in China to be resolved in the second half of 2025. I will update further on all of this in my next quarterly message.
It is also worth noting that we have started planning for the expected ramp-up of company revenue that the normalisation of our end-customer markets will bring. It is important to review strategic opportunities that can further accelerate our growth journey. The overall aim is to build a leading biometric hardware and solutions provider that is the go-to partner for OEMs and other customer projects. These initiatives will work to enhance our market position further and unlock new revenue streams.
Finally, our R&D efforts in the smartphone space continue to break new ground. Our Active Thermal technology, enabling full-display fingerprint authentication, is a breakthrough that the industry has been striving for. We are currently working on the prototype phase and will then work to secure commercial partnerships. Costs for the current phase of product development remain modest, but the long-term potential for this product is significant.
In summary, while we remain mindful of short-term challenges, we are entering the second half of the year with confidence and optimism. With an expanded product portfolio, growing partner network, and exciting innovations underway, NEXT is well-positioned for sustained growth.
Responsibility statement
We confirm that, to the best of our knowledge, the condensed consolidated interim financial statements for the first half year of 2025, have been prepared in accordance with IAS 34 "Interim Financial Reporting" and give a true and fair view of the Group's assets, liabilities, financial position and results of operations. We also confirm that, to the best of our knowledge, the interim report for the first half year of 2025 includes a fair review of important events that have occurred during the period and their impact on the condensed financial statements, a description of the principal risks and uncertainties for the remaining half year of 2025, and major related party transactions.
Oslo, 19 August 2025 CEO and Board of Directors NEXT Biometrics Group ASA
Ulf Ritsvall (CEO) Hans Henrik Klouman (Chair) Emine Lundkvist (Board member) Roy Tselentis (Board member) Siri Gomnæs Børsum (Board member) Tove Giske (Board member)
Condensed consolidated statement of comprehensive income (unaudited)
| Amounts as |
|---|
| restated* |
| 6 months | 6 months | Full Year | ||||
|---|---|---|---|---|---|---|
| (amounts in NOK 1 000) | Notes | Q2 2025 | Q2 2024 | 2025 | 2024 | 2024 |
| Revenues | 2 | -2 173 | 18 319 | 4 722 | 31 123 | 58 995 |
| Cost of materials | -2 578 | -7 957 | -4 868 | -13 591 | -32 416 | |
| Gross profit (loss) | -4 751 | 10 362 | -146 | 17 532 | 26 580 | |
| Payroll expenses | 4,5 | -9 727 | -5 824 | -18 194 | -18 744 | -32 791 |
| Other operating expenses | 4,5 | -4 095 | -9 450 | -16 316 | -17 892 | -43 361 |
| EBITDA | -18 572 | -4 911 | -34 656 | -19 104 | -49 573 | |
| Depreciation and amortization Impairment losses |
-1 158 | -1 536 - |
-2 340 | -3 064 - |
-5 394 | |
| Operating profit (loss) | -19 731 | -6 447 | -36 996 | -22 168 | -54 967 | |
| Net financial items | 26 | 371 | -531 | 663 | 1 030 | |
| Profit (loss) before taxes | -19 705 | -6 077 | -37 527 | -21 505 | -53 937 | |
| Income tax expenses | -25 | 26 | -25 | -32 | -197 | |
| Profit (loss) after taxes | -19 730 | -6 050 | -37 552 | -21 538 | -54 134 | |
| Earnings per share (in NOK): | ||||||
| Basic and diluted | -0,17 | -0,06 | -0,33 | -0,21 | -0,50 | |
| Other comprehensive income (loss) that may be reclassified subsequently to profit and loss: |
||||||
| Translation differences on net investments in foreign | ||||||
| operations | -2 434 | -842 | -7 223 | 2 054 | 6 369 | |
| Other comprehensive income (loss) | -2 434 | -842 | -7 223 | 2 054 | 6 369 | |
| Total comprehensive income (loss) | -22 164 | -6 893 | -44 775 | -19 484 | -47 765 | |
| Profit (loss) after taxes attributable to: | ||||||
| Owners of the parent company | -19 730 | -6 050 | -37 552 | -21 538 | -54 134 | |
| Total comprehensive income (loss) attributable to: | ||||||
| Owners of the parent company | -22 164 | -6 893 | -44 775 | -19 484 | -47 765 |
(*) Please see Note 6 for detailed information with regards to the restatement of the 2024 consolidated statement of comprehensive income and the individual line items that have been adjusted.
| Interim condensed consolidated statement of financial position (unaudited) | ||
|---|---|---|
| ---------------------------------------------------------------------------- | -- | -- |
| Amounts as | ||||
|---|---|---|---|---|
| restated* | ||||
| (amounts in NOK 1 000) | Notes | 30 Jun 2025 | 30 Jun 2024 | 31 Dec 2024 |
| Intangible assets | 1 485 | 1 153 | 825 | |
| Property, plant and equipment | 5 752 | 5 182 | 7 094 | |
| Total non-current assets | 7 237 | 6 334 | 7 919 | |
| Inventories | 18 131 | 19 463 | 17 672 | |
| Accounts receivables | 3 | 33 525 | 33 930 | 43 052 |
| Other current assets | 8 022 | 8 094 | 8 261 | |
| Cash | 22 100 | 40 876 | 62 907 | |
| Total current assets | 81 778 | 102 362 | 131 892 | |
| Total assets | 89 014 | 108 696 | 139 811 | |
| Share capital | 5 | 115 155 | 104 701 | 115 155 |
| Share premium | 70 268 | 32 853 | 70 268 | |
| Other reserves | 37 985 | 33 011 | 35 208 | |
| Accumulated losses | -155 451 | -91 981 | -110 674 | |
| Total equity | 67 957 | 78 585 | 109 958 | |
| Deferred tax liabilities | -3 | 34 | - | |
| Non-current lease liabilities | 1 620 | 1 285 | 2 244 | |
| Total non-current liabilities | 1 617 | 1 319 | 2 244 | |
| Accounts payables | 6 076 | 5 994 | 10 910 | |
| Income tax payables | 9 | - | 92 | |
| Current lease liabilities | 2 074 | 691 | 1 843 | |
| Other current liabilities | 11 282 | 22 107 | 14 764 | |
| Total current liabilities | 19 441 | 28 793 | 27 609 | |
| Total equity and liabilities | 89 014 | 108 696 | 139 811 |
(*) Please see Note 6 for detailed information with regards to the restatement of the 2024 balance sheet and the individual line items that have been adjusted.
Interim condensed consolidated statement of cash flow (unaudited)
| Amounts as | |||||
|---|---|---|---|---|---|
| restated* | |||||
| 6 months | 6 months | Full Year | |||
| (amounts in NOK 1 000) | Q2 2025 | Q2 2024 | 2025 | 2024 | 2024 |
| Profit (loss) before taxes | -19 705 | -6 077 | -37 527 | -21 505 | -53 937 |
| Share based remuneration | 1 904 | 486 | 2 777 | 1 046 | 3 243 |
| Accrued share option social security cost | -264 | -2 220 | -1 381 | 2 240 | -1 637 |
| Income taxes paid | - | - | -21 | - | - |
| Depreciation and amortization | 1 158 | 1 536 | 2 340 | 3 064 | 5 394 |
| Impairment losses | - | - | - | - | - |
| Inventory write downs | -43 | -11 | -118 | 15 | 363 |
| Change in working capital items and other | 584 | -7 724 | -4 781 | -13 056 | -15 107 |
| Net cash flow from operating activities | -16 366 | -14 009 | -38 712 | -28 195 | -61 681 |
| Purchases of property, plant and equipment | |||||
| and intangible assets | -648 | -12 | -1 070 | -12 | -597 |
| Net cash flow from investing activities | -648 | -12 | -1 070 | -12 | -597 |
| Gross proceeds from issue of shares | - | 662 | - | 2 792 | 62 442 |
| Payments of transaction costs equity transactions | - | -65 | - | -121 | -2 314 |
| Payments of lease liabilities | -495 | -550 | -1 004 | -1 083 | -2 017 |
| Net cash flow from financing activities | -495 | 47 | -1 004 | 1 588 | 58 111 |
| Net change in cash flow | -17 510 | -13 974 | -40 786 | -26 619 | -4 167 |
| Cash balance at beginning of period | 39 882 | 54 569 | 62 907 | 67 753 | 67 753 |
| Effects of exchange rate changes on cash | -272 | 281 | -20 | -258 | -679 |
| Cash balance at end of period | 22 100 | 40 876 | 22 100 | 40 876 | 62 907 |
| Comprising of: | |||||
| Cash | 22 100 | 40 876 | 22 100 | 40 876 | 62 907 |
(*) Please see Note 6 for detailed information with regards to the restatement of the 2024 cash flow statement and the individual line items that have been adjusted.
Interim condensed consolidated statement of changes in equity (unaudited)
| Accumulated | ||||||
|---|---|---|---|---|---|---|
| (amounts in NOK 1 000) | Notes | Share capital Share premium Other reserves | losses | Total equity | ||
| Balance as of 31 December 2024 as | ||||||
| originally presented | 115 155 | 70 268 | 35 208 | -101 775 | 118 856 | |
| Correction of error (next of tax) | -8 899 | -8 899 | ||||
| Restated balance as of 31 December 2024 | 115 155 | 70 268 | 35 208 | -110 674 | 109 958 | |
| Profit (loss) after taxes | -37 552 | -37 552 | ||||
| Other comprehensive income (loss) | -7 223 | -7 223 | ||||
| Total comprehensive income (loss) | -44 775 | -44 775 | ||||
| Share based remuneration | 4 | 2 777 | 2 777 | |||
| As of 30 June 2025 | 115 155 | 70 268 | 37 985 | -155 451 | 67 957 | |
| As of 1 January 2024 | 104 025 | 30 858 | 31 965 | -72 498 | 94 351 | |
| Profit (loss) after taxes | -21 538 | -21 538 | ||||
| Other comprehensive income (loss) | 2 054 | 2 054 | ||||
| Total comprehensive income (loss) | -19 484 | -19 484 | ||||
| Share issues net | 4 | 676 | 1 995 | 2 671 | ||
| Share based remuneration | 4 | 1 046 | 1 046 | |||
| As of 30 June 2024 | 104 701 | 32 853 | 33 011 | -91 981 | 78 585 |
Notes to the interim consolidated financial statements
Note 1 – General information and accounting principles
NEXT (the Group) consists of NEXT Biometric Group ASA (the parent company) and its subsidiaries. NEXT Biometrics Group ASA is a public limited liability company incorporated and domiciled in Norway and is listed at Oslo Stock Exchange under the ticker NEXT.
The Group's operations are carried out by the operating subsidiaries. The Group has four wholly owned active operating subsidiaries: NEXT Biometrics AS (Oslo, Norway), NEXT Biometrics Inc. (Seattle, USA), NEXT Biometrics Taiwan Ltd. (Taipei, Taiwan) and NEXT Biometrics Solutions India Pvt. Ltd. (India). The group also has a 50% ownership in NEXT Biometrics China Ltd. (Shanghai, China), which is controlled by the Group.
The Group provides advanced fingerprint sensor technology that delivers uncompromised security and accuracy for the best possible user experience in the smart card, government ID, access control and notebook markets.
In preparing these interim consolidated financial statements, the management has made judgements and estimates about the future that affect the application of the Group's accounting policies and the reported amounts of assets, liabilities, income and expenses. Estimates and underlying assumptions are based on the experience, best knowledge, information available at the reporting date and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Changes in facts and circumstances may lead to the revision of these estimates on an ongoing basis. Actual future results may differ from the estimates.
These interim financial statements have been prepared in accordance with IAS 34 "Interim financial reporting". The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's annual financial statements for 2024 (Annual Report for 2024). The Annual Report for 2024 is available at www.nextbiometrics.com.
The accounting policies applied in the preparation of the interim financial statements are consistent with those applied in the preparation of the Annual Report for 2024 other than the preliminary restatements relating to revenue, cost and balance sheet items listed in note 6. There are no new standards and interpretations effective from 1 January 2025 that had a significant impact on the Group's consolidated interim financial statements.
As a result of rounding differences, numbers or percentages may not add up to the total.
The Group's interim financial statements for Q2 and first half year of 2025 have been prepared on the basis of a going concern assumption. In the view of the board of directors, the Group's limited working capital creates a risk to this assumption.
This interim financial report has not been subject to audit.
The Board of Directors approved the report on 19 August 2025.
Note 2 – Revenue and segment reporting
| Amounts as restated |
|||||
|---|---|---|---|---|---|
| 6 months | 6 months | Full Year | |||
| (amounts in NOK 1 000) | Q2 2025 | Q2 2024 | 2025 | 2024 | 2024 |
| Fingerprint sensor technology | -2 173 | 18 319 | 4 722 | 31 123 | 58 995 |
| Total revenues | -2 173 | 18 319 | 4 722 | 31 123 | 58 995 |
NEXT targets four markets for its technology, which are Office & Notebooks, Payment & Fintech, Access control and Public Security.
The available technology is generic into the four markets. Most of NEXT's key IP, including our NEXT Active Thermal is shared and used in all four markets.
The total reported revenues were negative NOK 2.2 million for Q2 2025. The Group delivered product and recognized revenues in Q2 2025 amounting to NOK 4.3 million. This was offset by negative revenue of NOK 6.5 million, as the Group granted NOK 4.8 million in discounts due to changing market conditions in China and a NOK 1.7 million reduction in revenue for products expected to be returned. The Group's quarterly report has not been audited. There is a risk that the Group may need to adjust its financial accounting following the auditor's review. For example, there is a risk that the NOK 4.8 million discount may need to be reclassified as other operating expenses, and the reduction in revenue or other operating expense may also be required to be booked in an earlier accounting period. Moreover, the NOK 1.7 million reduction in revenue may need to be reclassified to Q1 2025.
Note 3 – Account receivables
| Amounts as | |||
|---|---|---|---|
| restated | |||
| (amounts in NOK 1 000) | 30 Jun 2025 | 30 Jun 2024 | 31 Dec 2024 |
| Accounts receivables - gross | 42 475 | 37 464 | 53 721 |
| Accounts receivables - loss allowance | -8 950 | -3 534 | -10 669 |
| Total accounts receivables | 33 525 | 33 930 | 43 052 |
| Amounts as | |||
|---|---|---|---|
| restated | |||
| (amounts in NOK 1 000) | 30 Jun 2025 | 30 Jun 2024 | 31 Dec 2024 |
| Not due | 3 726 | 9 175 | 10 673 |
| 30-90 days overdue | 2 445 | 17 535 | 10 026 |
| 90-120 days overdue | - | 69 | - |
| 120-180 days overdue | 11 132 | 6 767 | 15 520 |
| 180+ days overdue | 16 222 | 383 | 6 832 |
| Total accounts receivables | 33 525 | 33 930 | 43 052 |
The total credit loss allowance provision was NOK 9.0 million as 30 June 2025 (NOK 3.5 million as per 30 June 2024 and NOK 10.7 million as per year end 2024).
The Group has few, but large customers. The allowance for expected credit loss is based on individual assessment of each customer after thorough evaluations, significant judgements as well as discussions with each respective customer.
Note 4 – Operating expenses
| 6 months | 6 months | Full Year | |||
|---|---|---|---|---|---|
| (amounts in NOK 1 000) | Q2 2025 | Q2 2024 | 2025 | 2024 | 2024 |
| Salaries, fees | -6 858 | -6 233 | -14 109 | -12 725 | -26 169 |
| Share based remuneration (salary part) | -1 708 | -414 | -2 427 | -916 | -2 776 |
| Share based remuneration (employer's tax) | 264 | 2 220 | 1 381 | -2 240 | 1 637 |
| Social security taxes | -948 | -883 | -2 002 | -1 839 | -3 600 |
| Other personnel expenses | -476 | -514 | -1 038 | -1 023 | -1 883 |
| Total payroll expenses | -9 727 | -5 824 | -18 194 | -18 744 | -32 791 |
| Amounts as | |||||
|---|---|---|---|---|---|
| restated | |||||
| 6 months | 6 months | Full Year | |||
| (amounts in NOK 1 000) | Q2 2025 | Q2 2024 | 2025 | 2024 | 2024 |
| Product and marketing costs | -1 808 | -1 753 | -3 676 | -3 406 | -6 795 |
| Sales and marketing incentive fees | 3 678 | - | - | - | 0 |
| R&D and business services costs | -4 290 | -5 885 | -9 334 | -10 629 | -22 257 |
| R&D and government grants | 727 | 711 | 1 098 | 1 028 | 1 848 |
| Fees to contractors, auditors, lawyers and others | -1 367 | -1 355 | -2 877 | -3 058 | -5 382 |
| Allowance for expected credit loss | 539 | - | 539 | - | -7 315 |
| Other expenses | -1 379 | -1 096 | -1 716 | -1 697 | -3 008 |
| Share based remuneration (operating part) | -195 | -72 | -350 | -130 | -452 |
| Total other operating expenses | -4 095 | -9 450 | -16 316 | -17 892 | -43 361 |
Total payroll expenses were NOK 9.7 million in Q2 2025 compared to NOK 5.8 million in Q2 2024. The difference in costs in Q2 2025 relative to Q2 2024 is mainly the difference in share-based remuneration and options social security cost from net gain NOK 1.8 million in Q2 2024 to NOK 1.4 million net cost in Q2 2025.
Total other operating expenses were NOK 4.1 million in Q2 2025 compared to NOK 9.5 million in Q2 2024. The difference in costs in Q2 2025 compared to Q2 2024 is mainly the Q2 2025 sales and marketing incentive fees gain of NOK 3.7 million.
Note 5 – Shares and incentive options
| Numbers of shares outstanding | |
|---|---|
| As of 1 January 2025 | 115 154 535 |
| Share issues | - |
| As of 30 June 2025 | 115 154 535 |
There was no change in the number of shares outstanding during Q2 2025.
Share options:
NEXT has entered into and plans to continue to enter into stock option agreements in order to attract talented and experienced employees.
During the quarter, NEXT booked NOK 1.9 million in share based renumeration (salary and operating cost part) relating to employees and contractors. The Group's share-based remuneration (employer tax) cost was negative NOK 0.3 million due to the decrease in the parent company'sstock price during Q2 2025. The net costs related to share-based remuneration were net NOK 1.6 million for Q2 2025.
The number of outstanding options increased by 1,307,082 during Q2 2025. The Group had 11,317,161 options outstanding as of 30 June 2025.
Note 6 – Restatement of 2024 annual accounts
The Group has restated revenues for 2024 due to irregularities we uncovered in China relating to historical sales, payment terms and order processes. Those transactions occurred in the second half of 2024, and therefore there were no restatements relating to the first half of 2024 and earlier years. The Group considers that the affected transactions in the second half of 2024 with these selected customers do not meet the necessary attributes for revenue recognition based on the facts and circumstances known at the date of this financial report. As a result, the Company has restated all the 2024 financial statements line items affected. In addition, these errors also affected the sales and marketing incentives calculated, as the accruals were based on an assessment of progress of the achievement of milestones as per 31 December 2024 and when such milestones are expected to be fulfilled.
The preliminary restated financial statements for 2024 included in these interim condensed consolidated financial statements have not been audited. The Group has received a numbered letter from its auditor concerning the above mentioned sales orders in China and that there may be material errors in the financial accounts for 2024 caused by the irregularities or potential fraud that has been uncovered. Moreover, the auditor states that the company's board of directors needs to assess the situation and inform the financial market accordingly.
The Group's board has approved these preliminary restated financial statements for 2024. The Group has contacted Finanstilsynet in order to clarify any potential impactsto the Group's already issued audited financial statements for 2024. Finanstilsynet has received the information and will inform its internal stakeholders. The Group will report any material updates in relation to the Group's previously issued financial statements and the restated financial statements following a full review by the Group's auditors.
First, a NOK 12.6 million reversal in revenue and a NOK 3.7 million reduction in sales and marketing incentive fees (under other operating costs) have been booked in the statement of comprehensive income. The Group plans to try to repossess the shipped products, but there is a risk that the Group does not get the shipped products in return. Hence, the Group has not made any adjustments to cost of materials in the 2024 financial statements. Moreover, the Group has booked NOK 13.7 million reduction in Account Receivables and an increase of NOK 1.1 million in Other current assets related to prepaid China VAT that the company is planning to recover. Additionally, a NOK 3.7 million reduction in other current liabilities was booked in relation to the reversal of sales and marketing incentive fees. The restatements have a total negative equity effect of NOK 8.9 million for the 2024 financial year.
The Group also needed to restate the related line items in the cash flow statement, namely profit before tax and changes in other working capital, resulting in no change in the total cash flow from operations.
The following tablesshow the amounts previously reported, the adjustments, and the amountsrestated in each line item reported in the NEXT Group financial statements for the year ended December 31, 2024:
Condensed consolidated statement of comprehensive income (unaudited)
| Amounts as | Amounts as | ||
|---|---|---|---|
| previously | restated | ||
| reported | |||
| Full Year | |||
| (amounts in NOK 1 000) | Full Year 2024 | Adjustments | 2024 |
| Revenues | 71 574 | -12 579 | 58 995 |
| Cost of materials | -32 416 | -32 416 | |
| Gross profit (loss) | 39 158 | 26 580 | |
| Payroll expenses | -32 791 | -32 791 | |
| Other operating expenses | -47 041 | 3 680 | -43 361 |
| EBITDA | -40 674 | -49 573 | |
| Depreciation and amortization | -5 394 | -5 394 | |
| Impairment losses | - | ||
| Operating profit (loss) | -46 068 | -54 967 | |
| Net financial items | 1 030 | 1 030 | |
| Profit (loss) before taxes | -45 038 | -53 937 | |
| Income tax expenses | -197 | -197 | |
| Profit (loss) after taxes | -45 235 | -54 134 | |
| Earnings per share (in NOK): | |||
| Basic and diluted | -0,42 | -0,50 | |
| Other comprehensive income (loss) that may be | |||
| reclassified subsequently to profit and loss: | |||
| Translation differences on net investments in | |||
| foreign operations | 6 369 | 6 369 | |
| Other comprehensive income (loss) | 6 369 | 6 369 | |
| Total comprehensive income (loss) | -38 866 | -47 765 | |
| Profit (loss) after taxes attributable to: | |||
| Owners of the parent company | -45 235 | -54 134 | |
| Total comprehensive income (loss) attributable to: | |||
| Owners of the parent company | -38 866 | -47 765 |
Interim condensed consolidated statement of financial position (unaudited)
| Amounts as previously | Amounts as | ||
|---|---|---|---|
| reported | restated | ||
| (amounts in NOK 1 000) | 31 Dec 2024 | Adjustments | 31 Dec 2024 |
| Intangible assets | 825 | 825 | |
| Property, plant and equipment | 7 094 | 7 094 | |
| Total non-current assets | 7 919 | 7 919 | |
| Inventories | 17 672 | 17 672 | |
| Accounts receivables | 56 754 | -13 703 | 43 052 |
| Other current assets | 7 138 | 1 124 | 8 261 |
| Cash | 62 907 | 62 907 | |
| Total current assets | 144 471 | 131 892 | |
| Total assets | 152 390 | 139 811 | |
| Share capital | 115 155 | 115 155 | |
| Share premium | 70 268 | 70 268 | |
| Other reserves | 35 208 | 35 208 | |
| Accumulated losses | -101 775 | -8 899 | -110 674 |
| Total equity | 118 857 | 109 958 | |
| Deferred tax liabilities | - | - | |
| Non-current lease liabilities | 2 244 | 2 244 | |
| Total non-current liabilities | 2 244 | 2 244 | |
| Accounts payables | 10 910 | 10 910 | |
| Income tax payables | 92 | 92 | |
| Current lease liabilities | 1 843 | 1 843 | |
| Other current liabilities | 18 444 | -3 680 | 14 764 |
| Total current liabilities | 31 289 | 27 609 | |
| Total equity and liabilities | 152 390 | 139 811 |
Interim condensed consolidated statement of cash flow (unaudited)
| Amounts as previously | Amounts as | |||
|---|---|---|---|---|
| reported | restated | |||
| Full Year | Full Year | |||
| (amounts in NOK 1 000) | 2024 Adjustments | 2024 | ||
| Profit (loss) before taxes | -45 038 | -8 899 | -53 937 | |
| Share based remuneration | 3 243 | 3 243 | ||
| Accrued share option social security cost | -1 637 | -1 637 | ||
| Income taxes paid | - | - | ||
| Depreciation and amortization | 5 394 | 5 394 | ||
| Impairment losses | - | - | ||
| Inventory write downs | 363 | 363 | ||
| Change in working capital items and other | -24 006 | 8 899 | -15 107 | |
| Net cash flow from operating activities | -61 681 | -61 681 | ||
| Purchases of property, plant and equipment | ||||
| and intangible assets | -597 | -597 | ||
| Net cash flow from investing activities | -597 | -597 | ||
| Gross proceeds from issue of shares | 62 442 | 62 442 | ||
| Payments of transaction costs equity transactions | -2 314 | -2 314 | ||
| Payments of lease liabilities | -2 017 | -2 017 | ||
| Net cash flow from financing activities | 58 111 | 58 111 | ||
| Net change in cash flow | -4 167 | -4 167 | ||
| Cash balance at beginning of period | 67 753 | 67 753 | ||
| Effects of exchange rate changes on cash | -679 | -679 | ||
| Cash balance at end of period | 62 907 | 62 907 | ||
| Comprising of: | ||||
| Cash | 62 907 | 62 907 |
Note 7 – Subsequent events
Between 30 June 2025 and the resolution of these condensed consolidated interim financial statements, there has not been any other event which would have had any noticeable impact on NEXT's result for the Q2 2025 period nor on the value of the Group's assets and liabilities as per 30 June 2025.
Alternative performance measures
NEXT's financial information has been prepared in accordance with International Financial Reporting Standards (IFRS). In addition, it is management's intent to provide alternative performance measures that are regularly reviewed by management to enhance the understanding of NEXT's performance, but not instead of, the financial statements prepared in accordance with IFRS. The alternative performance measures presented may be determined or calculated differently by other companies.
Definitions
Most of these key figures are alternative performance measures according to ESMA's definition. How these key figures are used is described below, as is how they are calculated. The alternative performance measures are used to provide a more comprehensive description of how the operational activities are developing, such as adjusted gross profit, Adjusted EBITDA and Adjusted operating expenses.
Gross profit/Gross profit (%)
Gross profit is defined as revenues less cost of materials. Gross profit margin (%) is expressed as a percentage of revenues.
| Amounts as restated |
|||||||
|---|---|---|---|---|---|---|---|
| 6 months | 6 months | Full Year | |||||
| (amounts in NOK 1 000) | Q2 2025 | Q2 2024 | 2025 | 2024 | 2024 | ||
| Revenues | -2 173 | 18 319 | 4 722 | 31 123 | 58 995 | ||
| Cost of materials | -2 578 | -7 957 | -4 868 | -13 591 | -32 416 | ||
| Gross profit | -4 751 | 10 362 | -146 | 17 532 | 26 580 | ||
| Gross profit (%) | -4 751 | 10 362 | -146 | 17 532 | 26 580 | ||
| Divided by revenues | -2 173 | 18 319 | 4 722 | 31 123 | 58 995 | ||
| Gross profit (%) | NA | 57% | NA | 56% | 45% |
Adjusted revenues
Adjusted revenues is defined as revenues less non-recurring revenue adjustments.
| 6 months | 6 months | Amounts as restated Full Year |
|||
|---|---|---|---|---|---|
| (amounts in NOK 1 000) | Q2 2025 | Q2 2024 | 2025 | 2024 | 2024 |
| Revenues | -2 173 | 18 319 | 4 722 | 31 123 | 58 995 |
| Added back non-recurring revenue adjustments | 6 482 | - | 6 482 | - | - |
| Adjusted revenues | 4 310 | 18 319 | 11 204 | 31 123 | 58 995 |
Adjusted gross profit / Adjusted gross profit (%)
Adjusted Gross profit is defined as adjusted revenues less cost of materials excluding inventory write-downs. Adjusted Gross profit margin (%) is expressed as a percentage of adjusted revenues.
| Amounts as restated |
|||||
|---|---|---|---|---|---|
| 6 months | 6 months | Full Year | |||
| (amounts in NOK 1 000) | Q2 2025 | Q2 2024 | 2025 | 2024 | 2024 |
| Adjusted revenues | 4 310 | 18 319 | 11 204 | 31 123 | 58 995 |
| Cost of materials excluding inventory write-downs and non-recurring adjustments | -2 621 | -7 968 | -5 914 | -13 575 | -23 154 |
| Adjusted gross profit | 1 688 | 10 351 | 5 290 | 17 547 | 35 841 |
| Adjusted gross profit | 1 688 | 10 351 | 5 290 | 17 547 | 35 841 |
| Divided by adjusted revenues | 4 310 | 18 319 | 11 204 | 31 123 | 58 995 |
| Adjusted gross profit (%) | 39% | 57% | 47% | 56% | 61% |
Cost of materials excluding inventory write-downs and non-recurring gains
Cost of materials excluding inventory write-downs is cost of materials and production service expenses less inventory write-downs and non-recurring gains. Cost of materials non-recurring gains are one-off gains that are not expected to occur in the future.
| 6 months | 6 months | Amounts as restated Full Year |
|||
|---|---|---|---|---|---|
| (amounts in NOK 1 000) | Q2 2025 | Q2 2024 | 2025 | 2024 | 2024 |
| Cost of materials | -2 578 | -7 957 | -4 868 | -13 591 | -32 416 |
| Deducted inventory write-downs and non-recurring adjustments | -43 | -11 | -1 046 | 15 | 9 262 |
| Cost of materials excluding inventory write-downs and non-recurring adjustments | -2 621 | -7 968 | -5 914 | -13 575 | -23 154 |
Inventory write-downs
Inventory write-downs are costs related to excess inventory in relation to raw materials, semi-finished goods, products and product lines that are discontinued and/or in the process of being discontinued. Cost of materials non-recurring gains are one-off gains that are not expected to occur in the future.
EBITDA / Adjusted EBITDA
EBITDA is earnings before interest, taxes, depreciation, amortization and impairment losses.
Adjusted EBITDA is equal to EBITDA excluding "share-based remuneration" (salary part, employer's part tax part and operating part), inventory write-downs and sales and marketing incentive fee.
| Q2 2024 | Amounts as restated |
|||||
|---|---|---|---|---|---|---|
| Q2 2025 | 6 months 2025 |
6 months 2024 |
Full Year 2024 |
|||
| (amounts in NOK 1 000) | ||||||
| Operating profit (loss) | -19 731 | -6 447 | -36 996 | -22 168 | -54 967 | |
| Added back depreciation and amortization | 1 158 | 1 536 | 2 340 | 3 064 | 5 394 | |
| Added back impairment losses | - | - | - | - | - | |
| EBITDA | -18 572 | -4 911 | -34 656 | -19 104 | -49 573 | |
| Added back non-recurring revenue adjustments | 6 482 | - | 6 482 | - | - | |
| Added back share-based remuneration (salary part) | 1 708 | 414 | 2 427 | 916 | 2 776 | |
| Added back share-based remuneration (employer's tax) | -264 | -2 220 | -1 381 | 2 240 | -1 637 | |
| Added back share-based remuneration (operating part) | 195 | 72 | 350 | 130 | 452 | |
| Deducted inventory write-downs and non-recurring adjustments | -43 | -11 | -1 046 | 15 | 9 262 | |
| Added back sales and marketing incentive fee | -3 678 | - | - | - | ||
| Adjusted EBITDA | -14 172 | -6 656 | -27 825 | -15 802 | -38 720 |
Adjusted operating expenses (Adjusted OPEX)
Adjusted operating expenses (Adjusted OPEX) is defined as salaries and personnel cost and other operating expenses excluding share-based renumeration and sales and marketing incentive fees.
| Amounts as | ||||||
|---|---|---|---|---|---|---|
| restated | ||||||
| 6 months | 6 months | Full Year | ||||
| (amounts in NOK 1 000) | Q2 2025 | Q2 2024 | 2025 | 2024 | 2024 | |
| Operating expenses (OPEX) | 13 822 | 15 274 | 34 510 | 36 636 | 76 152 | |
| Deducted share-based remuneration (salary part) | -1 708 | -414 | -2 427 | -916 | -2 776 | |
| Deducted share-based remuneration (employer's tax) | 264 | 2 220 | 1 381 | -2 240 | 1 637 | |
| Deducted share-based remuneration (operating part) | -195 | -72 | -350 | -130 | -452 | |
| Deducted sales and marketing incentive fee | 3 678 | - | - | - | - | |
| Adjusted Operating expenses (Adjusted OPEX) | 15 860 | 17 007 | 33 115 | 33 349 | 74 562 |
Operating expenses (OPEX)
Operating expenses (OPEX) consist of salaries and personnel costs and other operating expenses.
Sales and marketing incentive fees
Sales and marketing incentive fees represent accrued liabilities related to performance fees in connection with progress on sales targets in China. When reaching certain milestones, performance fees are due to an external partner. The sales and marketing fees liability estimate is based on an assessment of progress of the achievement of milestones as per each balance sheet date and when such milestones are expected to be fulfilled.
Next biometrics group asa
NEXT provides advanced fingerprint sensor technology that delivers uncompromised security and accuracy for the best possible user experience in the smart card, government ID, access control and notebook markets.
The company's patented NEXT Active Thermal™ principle allows the development of large, high quality fingerprint sensors in both rigid and flexible formats. NEXT Biometrics Group ASA
(www.nextbiometrics.com) is headquartered in Oslo, with sales, support and development operations in Seattle, Taipei, Bengaluru and Shanghai.
About Contact
Ulf Ritsvall (CEO) [email protected]
Eirik Underthun (CFO) [email protected]
Copyright© 2025 NEXT BIOMETRICS GROUP ASA, all rights reserved. Specifications are subject to change without notice. The NEXT Biometrics logo and NEXT Active Thermal™ are trademarks of NEXT BIOMETRICS GROUP ASA in Norway and other countries. All other brand and product names are trademarks or registered trademarks of their respective owners.