Development during the period

Revenues and operating result, first quarter 2026

Revenues

Group revenues for the first quarter of 2026 amounted to SEK 18.9 M (18.2), corresponding to an increase of 4 percent compared with the first quarter of 2025 (increase of 21 percent in constant currency terms). Revenue was supported by healthy customer demand for our biometric authentication solutions and ongoing commercial activity across our prioritized offerings.

Trend in operating profit

Gross profit for the first quarter was SEK 11.8 M (10.3) and the gross margin was 62.3 percent (56.6).

Development costs incurred in the quarter amounted to SEK 15.3 M (14.0), while amortization and write-downs of previously capitalized projects amounted to SEK 7.7 M (9.1). Reporting all R&D-related costs, including depreciation of previously capitalized costs within the R&D function on one and the same line in the income statement, has been deemed to lead to financial statements that give a more accurate view of the company's gross margins and also increase comparability with other companies in the industry.

The operating result for the first quarter was a negative SEK 22.9 M (neg: 0.3). Operating expenses amounted to SEK 35.4 M (41.5), including depreciation and amortization amounting to SEK 8.8 M (10.9). The operating result was impacted by one-time costs of approximately SEK 3.0 M, primarily related to the planned merger with Precise Biometrics. These costs reflect transaction-related work as well as other preparatory activities ahead of completion, and are not indicative of the underlying cost base in our continuing operations. Other operating income amounted to a positive SEK 0.7 M (pos: 30.9), pertaining to exchange-rate fluctuations attributable to operating working capital.  Previous year mainly pertaining to the Smart Eye licensing transaction.

Revenue breakdown

Revenue is reported by geography: EMEA, Americas and APAC. This information is found in the financial information section of the report, in the table "Sales by geography".

Financial income and expenses

Financial income amounted to SEK 0.0 M (pos: 0.0). Financial expenses amounted to a negative SEK 0.2 M (neg: 5.4), attributable to exchange rates on financial items.

Earnings and earnings per share for the reporting period

The result for the first quarter of 2026 was a negative SEK 78.2 M (neg: 16.8). The result was affected by a SEK -54.9 M non-cash tax item: in connection with the signed merger plan, we derecognised our deferred tax assets as of 31 March 2026, as these tax loss carryforwards will no longer be available for utilisation following completion of the merger.

Earnings per share for the first quarter were a negative SEK 10.31 (neg: 4.61).  Earnings per share from continuing operations for the first quarter 2026 were a negative SEK 10.31 (neg: 1.58).

Cash flow and balance sheet, first quarter of 2026

Cash flow

Cash flow from operating activities for the first quarter was negative  SEK 12.7 M (neg: 36.4), including a negative SEK 0.0 M (neg: 22.0) attributable to discontinued operations. 

Cash flow from investing activities for the first quarter amounted to negative SEK 0.5 M (neg: 0.0), pertaining to capitalized development expenses in the quarter.

Cash flow from financing activities was SEK 4.1 M (pos: 77.9), including SEK 5.0 M received in Q1 2026 from a partial disbursement of a SEK 20 M bridge loan.

Exchange-rate fluctuations had a SEK 0.2 M (neg: 1.0) impact on cash and cash equivalents during the quarter.

Inventory amounted to SEK 22.6 M at the end of the first quarter, compared to SEK 21.4 M at the end of the fourth quarter 2025 and SEK 22.9 M at the end of the first quarter 2025. 

Liquidity and shareholders’ equity

As at March 31, 2026, the Group’s disposable cash and cash equivalents totaled SEK 18.2 M compared with SEK 27.1 M at December 31, 2025 and SEK 52.6 M at March 31, 2025. The Group’s net cash amounted to SEK 11.2 M on March 31, 2026, compared with net cash amounting to SEK 24.2 M as December 31, 2025 and a net debt amounting to SEK 38.7 M at March 31, 2025. Lease liabilities pertaining to office premises amounted to SEK 2.0 M on March 31, 2026, compared with SEK 5.4 M as at March 31, 2025 and SEK 2.9 M as at December 31, 2025, recognized in accordance with IFRS 16. 

At period-end, consolidated shareholders’ equity amounted to SEK 197.9 M, compared to SEK 270.8 M as at December  31, 2025 and SEK 330.5 M as at March 31, 2025. The equity/assets ratio for the Group was 84.3 percent as at March 31, 2026, compared to 90.6 percent as at December 31, 2025 and 85.8 percent as at March 31, 2025). 

Total comprehensive income in the first quarter amounted to a negative SEK 73.4 M (neg: 39.4) and included the remeasurement of shareholders’ equity in foreign currencies.

Investments, fixed assets and depreciation/amortization

Investments in intangible fixed assets during the quarter amounted to an expense of SEK 0.5 M (expense: 0.0). Investments in tangible fixed assets for the quarter amounted to an expense of SEK 0.0 M (expense: 0.0). Depreciation/amortization according to plan for the quarter totaled SEK 8.8 M (10.9). 

Financial fixed assets pertain to deferred tax of SEK 0.0 M, compared to 54.9 as at December 31, 2025.

Significant events during the period January - March 2026

On February 11, 2026, FPC announced that Board member John Lord has informed the Company of his decision to step down from the Board of Directors due to other professional commitments. The Nomination Committee has been informed and continues its work to review, identify and propose new potential board members for election at a general meeting.

On March 23, 2026, Precise Biometrics AB (publ) (“Precise Biometrics”) and Fingerprint Cards AB (publ) (“Fingerprint Cards”) jointly announced that the board of directors of Precise Biometrics and the board of directors of Fingerprint Cards have adopted a joint merger plan (the “Merger Plan”) for merging the companies through a statutory merger in accordance with the Swedish Companies Act (the “Merger”). The Merger will be implemented by Precise Biometrics absorbing Fingerprint Cards, whereby the shareholders in Fingerprint Cards will receive nine (9) new ordinary shares in Precise Biometrics for each share in Fingerprint Cards, irrespective of share class. The Merger, constituting a merger of equals, will create a combined business with a stronger offering, a strengthened commercial reach, realize meaningful synergies, and establish a profitable foundation with necessary scale for future organic growth and consolidation. The Merger is expected to generate cost synergies with an estimated full annual run-rate effect of at least SEK 45 million (corresponding to approximately 29 percent of the Combined Company’s 2025 pro forma revenue). In addition, the combination is expected to unlock meaningful commercial synergies through upselling and cross-selling across the combined customer base and increased share of customer wallet. Following completion of the Merger, the Combined Company intends to raise approximately SEK 110 million through a rights issue of shares, with proceeds to be used to accelerate growth, capture identified synergies and support continued expansion of the Combined Company globally. The completion of the Merger is conditional upon, inter alia, approval by the shareholders of each of Precise Biometrics and Fingerprint Cards at their respective general meetings. The board of directors of Fingerprint Cards unanimously recommends the shareholders of Fingerprint Cards to vote in favor of the completion of the merger. The Board of Directors believes the Merger to be significantly value-adding for shareholders and other stakeholders, as it will create a combined business with a stronger offering, strengthened commercial reach, realize meaningful synergies and a profitable foundation with necessary scale for future organic growth and consolidation.

In the first quarter of 2026, the boards of Fingerprint Cards AB and Precise Biometrics AB signed a merger plan for the combination of the two companies. As the merger results in the Company's tax loss carryforwards no longer being available for utilisation, the Company derecognised the related deferred tax assets as of 31 March 2026. In light thereof, the Board took appropriate measures to remedy the equity shortfall by a reduction of the share capital. On 30 April 2026, the Extraordinary General Meeting resolved to approve the merger plan, to amend the Company's articles of association, and to reduce the Company's share capital to cover loss. The share capital reduction remedied the equity shortfall resulting from the derecognition of the deferred tax assets.

Other events during the first quarter of 2026

Business Development

On March 25, 2026, FPC announced that it has become the first biometric company in the world to pass EMVCo®’s new assessment process for fingerprint sensors used in payment cards. The new EMVCo® test requirements, released in November 2025, set a higher global standard for security and performance in biometric payment cards. FPC’s complete biometric system, including the fingerprint sensor, supporting hardware, as well as their algorithm, is the first to successfully meet these new requirements.

On March 12, 2026, Smart Eye AB and FPC announced a new multi-modal biometric authentication capability that combines Smart Eye’s facial authentication with FPC’s iris recognition technology. By verifying identity using two independent biometric signals captured by the same camera, the functionality significantly strengthens authentication while maintaining a natural and seamless user experience. This new authentication capability builds on the collaboration announced in January 2025, when Smart Eye licensed FPC’s iris recognition technology. Since then, the companies have worked to integrate the technology with Smart Eye’s existing sensing capabilities, resulting in a combined approach that enables face and iris verification to operate together.

On March 9, 2026, FPC announced the launch of the FPC AllKey Software Platform, a fully integrated biometric platform that enables customers to develop and run their own applications directly on AllKey devices, secured by FPC’s industry-leading fingerprint authentication. The launch marks an important strategic step for FPC as the company continues its expansion beyond standalone biometric components into higher-value platform solutions, targeting fast-growing markets such as enterprise security, access control, and IoT.

Significant events after the end of the period

On April 30, 2026, Fingerprint Cards AB submitted an application for delisting of the Company’s B shares from Nasdaq Stockholm, due to the upcoming merger between Fingerprint Cards and Precise Biometrics AB (publ), as announced by way of press release on 23 March 2026. The application also covered the warrants of series 2025:1 issued by the Company, with ticker FING TO8 B and ISIN SE0023595525, which are listed on Nasdaq Stockholm. On 5 May 2026, Nasdaq Stockholm AB resolved to approve the Company’s application for delisting. The exchange’s decision is conditional upon the Swedish Companies Registration Office granting approval to implement the merger plan entered into between Fingerprint Cards and Precise Biometrics. The last day of trading in Fingerprint Cards’ B shares and warrants on Nasdaq Stockholm is expected to be 13 July 2026.

On April 30, 2026, an extraordinary general meeting resolved, in accordance with the board of directors’ proposal, to approve the merger plan that the board of directors of FPC and Precise Biometrics AB (publ) adopted on 23 March 2026 to implement a merger of FPC and Precise through a merger, with Precise as the transferee company and FPC as the transferor company. The meeting also resolved, in accordance with the board of directors’ proposal, to amend the articles of association in respect of the limits for the number of board members. In addition, the meeting resolved, in accordance with the board of directors’ proposal, to reduce the Company’s share capital by SEK 107,595,368.278267 to cover loss and without redemption of shares. Through the reduction, the share capital decreases from SEK 162,023,501.667533 to SEK 54,428,133.389266, whereby the quota value of the share decreases from SEK 21.353477 to SEK 7.173218 per share.

Organization and Personnel

The number of employees as at March 31, 2026 was 39 (40). In addition to employees, 12 consultants (12) were also engaged at the end of the first quarter, mainly in technology development and sales. Accordingly, including employees and consultants, the company employed a total of 51 (52) people on March 31, 2026.

Share capital trend

As at March 31, 2026, the total number of shares in the Company amounts to 7,587,687 (of which 3,937 A-shares and 7,583,750 B-shares). The total number of votes in the Company amounts to 7,623,120 (of which 39,370 pertain to the A-shares and 7,583,750 pertain to the B-shares).

The company had 1,900 B shares in treasury at the end of the period. The share capital amounted to SEK 162,023,052.

Accounting policies

These condensed consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB). The interim report for the Parent Company was prepared in accordance with the Annual Accounts Act, Chapter 9, Interim reports. The application of these accounting policies complies with what is presented in the Annual Report for the fiscal year ending December 31, 2024, except as stated below, and must be read together with the Annual Report. In addition to the financial statements and the associated notes, disclosures according to IAS 34.16A are also presented in other parts of the interim report. 

As of 1 January 2025, the Group reports discontinued operations in accordance with IFRS 5. The discontinued operations consist of the Mobile, PC and Access China operations that were discontinued as of March 31, 2025. This means that the profit from the discontinued operations has been broken out of the income statement and is reported separately as profit after tax from discontinued operations. The comparative figures in the income statement with associated key figures and notes have also been restated.  

The Group has also changed its principle regarding the reporting of R&D costs. Depreciation of capitalized development expenses has previously been recognized in cost of goods sold, thereby affecting gross margin. As of January 1, 2025, depreciation of previously capitalized development costs is instead recognized within the development costs function in the income statement. The comparative figures for previous periods have been recalculated. Reporting all R&D-related costs, including depreciation of previously capitalized costs within the R&D function on one and the same line in the income statement, has been deemed to lead to financial statements that give a more accurate view of the company's gross margins and also increase comparability with other companies in the industry.

Revenue is reported by geography: EMEA, Americas and APAC. 

No new or revised IFRSs that have become effective in 2026 have had any significant impact on the Group. The Group’s reporting currency is SEK and the report is prepared in SEK M.

Critical estimates and judgments

With its Audit Committee, management has discussed the progress, selection and disclosure of the Group’s critical accounting policies and estimates, as well as the application of these principles and estimates. Pursuant to IAS 1, the company should disclose the assumptions and other important sources of uncertainty in estimates, which if actual outcomes differ, can have a material impact on the financial statements. In cases where this occurs, estimates and judgments have been moved to the relevant note. A summary of the areas that management considers to contain material estimates and judgments follow:

• Deferred tax
• Capitalization of development costs
• Impairment testing of goodwill and other intangible assets
• Inventory valuation 

Related-party transactions

There were no related-party transactions during the period.

Parent Company

The Parent Company’s revenues for the first quarter of 2026 amounted to SEK 18.9 M (pos: 0.9). In the Group accounts, SEK 0.0 M (pos:0.0) was recognized as revenue from discontinued operations. After financial items, a loss of SEK 9.6 M (loss: 50.2) was reported for the period. The net result for the period was a loss of SEK 64.5 M (loss: 50.2). The Parent Company’s disposable cash and cash equivalents at period-end totaled SEK 11,5 M (41.1).

Significant risks and uncertainties – Group and Parent Company

To anticipate risks and minimize their impact, FPC has processes for continuously identifying and managing risks that could impact the operations. This includes probability and consequence assessments of operational risks, market risks, financial risks and legal and other risks.

The described risks and uncertainties are not ranked in any order of significance; nor are they claimed to be the only risks or uncertainties to which the company is exposed. Additional risks and uncertainties that the company is currently unaware of or that are currently not adjudged to be material could develop into factors that might in the future have a material impact on the company’s operations, earnings, financial position or future outlook. The following description does not claim to be complete or exact, since risks and their degree of impact vary over time.

Operational risks

• Risks associated with the implementation of the company's transformation plan.
• Delivery capacity of contracted suppliers.
• Risks related to outsourcing.
• Reduced technological leadership.
• Risks related to the general perception of biometric sensors.
• The company is dependent on its key employees.
• Leaks and infringements regarding business secrets.
• IT and cybersecurity risks, as well as risks related to system failures, downtime and other interruptions
• Internal scalability.

Market risks

• Geopolitical instability.
• Supplier costs.
• Economic fluctuations.
• Currency risk.
• Loss of customers and price pressure due to increased competition.

Finance risks

• Credit risk.
• Financing.

Legal risks

• Competitor IP.
• Value of Patent IP.
• Products defects and product liability.
• Risks related to the processing of personal data.
• FPC’s operations are subject to a number of regulatory compliance risks.
• Risks related to judicial and administrative proceedings.

The global macro environment remains volatile. The ongoing war between Russia and Ukraine, and related sanctions and countermeasures, may – even without material direct exposure – indirectly impact the Group through energy prices, inflation, interest rates, currency and market volatility, and disruptions to supply chains and logistics. In addition, escalating geopolitical tensions and armed conflicts in the Middle East – including the Israel–Palestine conflict and the ongoing military escalation between the U.S./Israel and Iran – contribute to heightened uncertainty and the risk of further volatility in energy and commodity markets. A more unpredictable trade policy environment, including new or expanded tariffs, sanctions and export restrictions, may result in higher costs, delays in supply chains, and weaker demand in certain end markets. Developments in inflation and interest rates may also impact financing conditions, customers’ willingness to invest, and the Group’s cost base, and are monitored on an ongoing basis.

Further information

This is the type of information that Fingerprint Cards AB is obligated to disclose pursuant to the EU’s Market Abuse Regulation. The information was submitted for publication, through the agency of the contact specified below, at 7:00 a.m. CEST on May 13, 2026.

Welcome to FPC’s presentation of the interim report for the first quarter of 2026 on May 13, 2026, at 09:00 a.m. CEST. The presentation will be webcast, and participants can register via the link below: https://edge.media-server.com/mmc/p/4si3u777 

For media and analysts: Register for the teleconference via this link: https://register-conf.media-server.com/register/BIee3831144ac341bd820268ea0c520464 

For further information, please contact:

Investor Relations: +46(0)10-172 00 10, investrel@fpc.com
Press: +46(0)10-172 00 10, press@fpc.com

www.fpc.com

Issuance, publication or distribution of this press release in certain jurisdictions could be subject to restrictions. The recipient of this press release is responsible for using this press release and the constituent information in accordance with the rules and regulations prevailing in the particular jurisdiction. This press release does not constitute an offer, or invitation to acquire or subscribe for new securities in Fingerprint Cards AB in any jurisdiction.  

Certification

The Board of Directors and the CEO certify that this report provides a fair and accurate review of the operations, financial position and earnings of the Parent Company and the Group and that it describes the significant risks and uncertainties facing the Parent Company and the companies included in the Group.

Stockholm, May 12, 2026

Review report

This interim report has not been examined by the company’s auditors.