NEXT Biometrics reported NOK 7 million in revenue for the first quarter of 2025, falling below expectations amid delays tied to India’s Aadhaar biometric program. The shortfall stems from temporary disruptions in the sensor certification process, triggered by new anti-spoofing and liveness detection requirements introduced by UIDAI following a security breach involving a competing vendor.
These certification delays, which persisted through early March, impacted not only NEXT Biometrics’ direct customers in India but also Chinese manufacturers relying on its fingerprint sensors for Aadhaar-compliant devices. Despite the setback, the company maintains a robust sales pipeline exceeding NOK 400 million, with NOK 69 million in confirmed deliveries scheduled for Q2 and Q3 2025. Gross margins on these orders are expected to surpass 50 percent.
The Aadhaar-related slowdown has inadvertently benefited NEXT Biometrics by reducing short-term competition in the Indian market. The program’s recent expansion to include mandatory biometric verification for new mobile SIM cards is expected to fuel long-term demand for certified fingerprint sensors. NEXT previously secured a NOK 15 million order from a new Indian partner in late 2023, and the company views India as a cornerstone of its growth strategy.
In Q1, NEXT strategically withheld several shipments to renegotiate commercial terms and better position itself for long-term profitability. The company is currently in advanced negotiations for multiple high-value deals, including projects focused on financial inclusion in Nigeria and other emerging markets. Efforts are also underway to expand into South Africa and explore biometric solutions aligned with UN development initiatives across the continent.
NEXT Biometrics CEO Ulf Ritsvall emphasized that the short-term challenges are paving the way for greater market share and profitability in the months ahead. He pointed to the company’s patented Active Thermal technology as a key differentiator in competitive sectors including payment authentication, government ID programs, and physical access control.
Product innovation remains central to NEXT’s strategy. Its FAP20 sensor, already certified for Aadhaar use, supports liveness detection and is optimized for secure authentication. The upcoming FAP30 sensor, tailored for law enforcement and banking use cases, is expected to expand the company’s reach in regulated sectors requiring high-accuracy fingerprint scanning.
The company is also diversifying beyond government and financial verticals. A recent partnership with a major smartphone manufacturer to develop full-screen fingerprint sensor technology reflects a strategic push into consumer electronics. These efforts aim to broaden NEXT’s revenue base and reduce reliance on any single geography or application.
NEXT Biometrics reported NOK 72 million in total revenue for 2024 and has set ambitious targets of NOK 180–200 million for fiscal year 2025. With a strong order pipeline, expanding geographic footprint, and a renewed focus on product innovation, the company appears positioned to rebound in the second half of the year.
Sources: TradingView, MarketScreener
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April 11, 2025 – by Ali Nassar-Smith
