Bk Technologies (NYSEAMERICAN:BKTI) reported fourth-quarter and full-year 2025 results that management said exceeded annual guidance across revenue growth, margin expansion, and profitability, highlighting increased adoption of its BKR Series radios—particularly the higher-margin BKR9000 multiband handheld—in public safety communications markets.
Fourth-quarter results: revenue up 20% and margins expanded
Revenue in the fourth quarter totaled $21.5 million, up 20% from $17.9 million in the year-ago period, marking the second consecutive quarter with more than 20% top-line growth, according to management. CEO John Suzuki said growth was driven primarily by robust order volumes from state and local agencies, including increased purchases of BKR Series radios in the company’s core Tier 2 and Tier 3 target markets.
Profitability improved as well. The company reported:
- Adjusted EBITDA: $4.7 million, up 78% year-over-year, with margin of 22% versus 14.9% a year earlier. Management noted this was the third consecutive quarter with adjusted EBITDA margin above 20%.
- Operating income: $4.2 million, with operating margin of 19.7%, up from 12.3% in the year-ago quarter.
- GAAP net income: $4.2 million, or $1.12 per basic share and $1.05 per diluted share, compared with $3.7 million, or $1.03 per basic share and $0.93 per diluted share, in the prior-year quarter.
- Non-GAAP adjusted earnings: $4.7 million, or $1.24 per basic share and $1.17 per diluted share, compared with $2.4 million, or $0.67 per basic share and $0.61 per diluted share, a year ago.
CFO Scott Malmanger said selling, general, and administrative expenses increased to $6.6 million from $5.2 million in the quarter, including approximately $0.5 million of non-cash stock-based compensation.
Full-year 2025: sales +12.5% and gross margin reached 48.8%
For the full year, BK Technologies reported sales of $86.1 million, up 12.5% and ahead of the company’s prior “high single-digit” guidance. Gross margin expanded 1,086 basis points to 48.8% from 37.9%, exceeding the company’s target of more than 47%.
Suzuki also highlighted a multi-year margin improvement, saying gross margins improved from 19.3% in 2022 to 48.8% in 2025, attributing gains to customer adoption, cost management, supply chain optimization, and manufacturing and sourcing changes. He pointed to the company’s strategic partnership with East West Manufacturing for outsourced manufacturing as a step that improved supply chain resilience and reduced manufacturing complexity following 2022 supply chain disruptions.
On earnings, Malmanger reported:
- Full-year operating income: $16.0 million, up from $7.8 million, with operating margin expanding to 18.6% from 10.2%.
- Full-year GAAP net income: $13.5 million, or $3.69 per basic share and $3.44 per diluted share, compared with $8.4 million, or $2.35 per basic share and $2.25 per diluted share, in 2024.
- Full-year non-GAAP adjusted earnings: $17.0 million, or $4.63 per basic share and $4.32 per diluted share, exceeding the company’s $3.80 guidance.
- Full-year adjusted EBITDA: $17.6 million, with adjusted EBITDA margin of 20.5%, up from $9.6 million and 12.5% in 2024.
SG&A for the year rose 23% to $26.0 million, driven primarily by marketing and promotional costs for the BKR9000 and non-cash RSU compensation expenses within the software engineering team, which Malmanger said aligned with the company’s investment strategy.
Balance sheet: record cash, no debt, and share repurchases
BK Technologies ended 2025 with $22.8 million in cash and no debt, compared with $7.1 million of cash at the end of 2024. Working capital increased to $37.3 million from $23.0 million, and shareholders’ equity rose to $44.7 million from $29.8 million.
Malmanger said the company established a Rule 10b5-1 non-discretionary stock repurchase program in September and repurchased approximately 19,000 shares during the quarter under the plan’s conditions.
Suzuki added that return on invested capital was over 20% for the second consecutive year.
2026 guidance includes higher taxes and R&D accounting change
Management introduced full-year 2026 guidance calling for:
- Revenue: at least $90 million
- Gross margin: 50% or greater
- GAAP EPS: $3.15
- Non-GAAP adjusted EPS: $3.55
Malmanger said 2025’s effective tax rate was 16%, aided by tax credits tied to remediation of an uncertain tax position recorded in 2024 results. He said the company expects an estimated 25% rate as it looks toward 2026, reflecting a normalization of its tax profile and higher profitability. The company estimated the higher tax rate would reduce 2026 fully diluted EPS by approximately $0.55 per share.
Suzuki also said the company decided to expense future development costs for the BKR9500 multiband mobile radio rather than capitalize them. He said the shift would reduce reported EPS by approximately $0.50 in 2026, describing it as a more conservative accounting treatment that better reflects the economics of R&D investments and improves transparency.
Vision 2030 targets and BKR9500 timeline
Looking beyond 2026, Suzuki introduced “Vision 2030” targets that include doubling revenue to $170 million, expanding gross margin to 60%, and reaching adjusted EBITDA margin of 35%. He said these goals would “triple” earnings per share to $13 and drive free cash flow generation of over $55 million.
Management identified three primary levers behind the Vision 2030 targets: expanding the installed base of BKR9000 radios, introducing the BKR9500 mobile platform, and continued margin leverage as the manufacturing model scales.
On product development, Suzuki said the BKR9500—described as a companion to the BKR9000—is on track for shipping in the first half of 2027, with initial customer validation described as strong. He said agencies often prefer to buy both handheld and in-vehicle devices from the same manufacturer for interoperability. In Q&A, Suzuki added a rule of thumb that the market typically sees one in-vehicle mobile radio sold for every two handheld radios, and said the company expects a similar ratio between BKR9000 and BKR9500.
During Q&A, Suzuki said the BKR9000’s expansion has been “definitely coming from new orders,” with customers largely on the fire side and some in law enforcement. He said customer feedback has been positive, citing radio quality, performance, and ergonomics, and noted “no pushback to date.”
On capital allocation, Suzuki said priorities include investing in the company’s portfolio and solutions to drive radio adoption, then evaluating acquisitions aligned with its core solution offering, and finally returning capital to shareholders when alternatives are less attractive—pointing to share repurchases in the fourth quarter as an example when management believed the stock was undervalued.
The company said it will provide a deeper dive on Vision 2030 initiatives at a virtual investor day on April 2 and noted Suzuki and Malmanger plan to attend the ROTH Conference on March 23-24 in Dana Point, California.
About Bk Technologies (NYSEAMERICAN:BKTI)
BK Technologies Corporation is a designer and manufacturer of professional two-way radio communications equipment and systems. The company’s product portfolio includes portable radios, mobile radios, repeater and dispatch consoles, antennas and related accessories. BK Technologies serves a broad range of end markets that require reliable voice and data communications, including public safety agencies, government entities, utilities, transportation, oil and gas, mining and commercial applications.
BK Technologies offers both analog and digital radio platforms, supporting industry standards such as Project 25 (P25) for mission-critical communications.
