BK Technologies Announces Second Quarter 2025 Results

BK Technologies Corporation (NYSE American:BKTI) (the "Company," "BK Technologies"), a provider of advanced public safety communications solutions, today announced financial and operating results for the second quarter and six months ended June 30, 2025. The Company will host a conference call today, August 14, 2025, at 9:00 a.m. Eastern Time.

John Suzuki, CEO of BK Technologies, commented,

"We delivered strong operational execution in the second quarter of 2025, underscored by higher than expected gross margins of 47.4%, and significantly improved profitability. Federal order activity surged following the close of the second quarter, led by multiple purchase orders from the USDA Forest Service, totaling $12.9 million, which we believe sets the stage for a strong second half. These orders are representative of the momentum we're seeing from our federal customers for our BKR Series radios, and we're pleased to support these agencies with our advanced public safety communications solutions. During the quarter we launched and received a purchase order from the Latimer County Sheriff's Office in Colorado for RelayONE, our rapid deployment portable repeater kit, which is part of our BK ONE family of interoperable communications solutions. RelayONE extends range and enables different public safety and military communications devices to effectively interact, promoting a unified response in the field.

"With our visibility today, we are raising certain of our previously stated full year financial targets. We now expect to deliver full year revenue growth in the high single digits with gross margin greater than 47%, a sharp improvement from our prior expectation of single-digit growth and gross margin above 42%. This upward revision reflects the strong demand we are seeing, the leverage in our business model, and our confidence in our ability to sustain performance at these higher levels. Additionally, we are raising our full-year GAAP diluted EPS target to $3.15 per share from $2.40 per share, and our non-GAAP diluted adjusted EPS1 target to $3.80 per share from our previously stated non-GAAP diluted adjusted EPS1 target of $2.80 per share, based on our current backlog and pipeline, as well as the strengthening gross margin. We're encouraged by our results in this quarter and year-to-date, and look forward to driving enhanced results for our shareholders as we progress through the second half of the year," 

Second Quarter 2025 Financial Review

Revenue of $21.2 million increased 4.5% compared to revenue of $20.3 million in the second quarter of 2024.

Gross margin of 47.4% improved significantly as compared to gross margin of 37.3% in the second quarter of 2024, demonstrating the favorable product mix and ongoing cost savings related to operational efficiencies and outsourced radio manufacturing.

Selling, General & Administrative expenses totaled $6.0 million, compared with $5.5 million for the second quarter of 2024, reflecting our continued investments in sales, marketing and engineering.

Operating income was $4.0 million compared with operating income of $2.0 million in the second quarter of 2024.

BK Technologies recorded net income of $3.7 million or $1.03 per basic and $0.96 per diluted share, compared with net income of $1.7 million or $0.47 per basic and diluted share, for the second quarter of 2024.

The Company reported non-GAAP adjusted earnings1 of $5.1 million or $1.39 per basic and $1.30 per diluted share compared to non-GAAP adjusted earnings1 of $2.0 million or $0.56 per basic and $0.55 per diluted share for the second quarter of 2024.

Non-GAAP adjusted EBITDA1 for the second quarter of 2025 was $4.4 million, compared with non-GAAP adjusted EBITDA1 of $2.5 million in the second quarter of 2024.

Working capital totaled approximately $28.9 million at June 30, 2025, of which $23.4 million was comprised of cash, cash equivalents and trade receivables. This compares with working capital at December 31, 2024 of approximately $23.0 million, of which $14.4 million was comprised of cash, cash equivalents and trade receivables.

Six Months 2025 Financial Review

Revenue of $40.2 million increased 4.5% compared to revenue of $38.5 million in the six months ended June 30, 2024.

Gross margin of 47.2% improved as compared to gross margin of 35.9% in the same period last year.

Selling, General & Administrative expenses totaled $12.1 million, compared with $10.8 million for the prior year period.

Operating income totaled $6.9 million compared with operating income of $3.0 million in the six months ended June 30, 2024.

BK Technologies recorded net income of $5.9 million or $1.63 per basic and $1.51 per diluted share, compared with net income of $2.3 million or $0.66 per basic and diluted share, for the six months ended June 30, 2024.

The Company reported non-GAAP adjusted earnings1 of $7.5 million or $2.07 per basic and $1.91 per diluted share compared to non-GAAP adjusted earnings1 of $3.0 million or $0.85 per basic and $0.84 per diluted share in the prior year period.

Non-GAAP adjusted EBITDA1 was $7.6 million, compared with non-GAAP adjusted EBITDA1 of $3.8 million in the first six months of 2024.