BK Technologies Corporation Earnings Recaps
Q1 2026
May 15, 2026
Shares fell 3.8% as investors focused on a cautious outlook, specifically the significant hike in the effective tax rate that will materially weigh on EPS growth in 2026 despite solid revenue and margin gains.
Key takeaways
- Revenue rose 11.8% year-over-year to $21.3 million, driven by broad-based demand across federal, state, and local agencies.
- Gross margin expanded to 51.8% from 47%, reflecting favorable product mix with increased adoption of higher-margin BKR 9,000 radios.
- Operating income held steady at $3.3 million with an operating margin of 15.4%, despite higher SG&A expenses linked to investments in product development and innovation.
- Diluted GAAP EPS increased to $0.69 from $0.55, but the effective tax rate jumped to 26% from 16% in 2025, expected to reduce EPS by roughly $0.44 in 2026 versus prior year.
- After-tax free cash flow surged 44% to $4.1 million, underpinning a record cash balance of $29 million, supporting continued investment while maintaining capital discipline.
Q3 2025
Nov 7, 2025
BK Technologies reported robust third-quarter performance, achieving a 21% increase in revenue to $24.4 million, alongside significant gross margin improvement to 49.9%.
Key takeaways
- Net income surged 46% to $3.4 million, equating to $0.87 per diluted share; non-GAAP adjusted EPS reached $1.27.
- Strong demand for the BKR 9000 multiband radio contributed to sustained revenue growth and a favorable sales mix.
- Cash and cash equivalents rose to $21.5 million with no debt, providing financial flexibility for strategic investments.
- Operating income increased to $4.8 million, driving an operating margin of 19.8%, up from 12.9% year-over-year.