Bk Technologies Q2 2026 Earnings Report

Bk Technologies EPS Results

• Actual EPS: $1.01
• Consensus EPS: $0.87
• Beat/Miss: Beat by +$0.14
• One Year Ago EPS: N/A

Bk Technologies Revenue Results

• Actual Revenue: $23.41 million
• Expected Revenue: $22.60 million
• Beat/Miss: Beat by +$814.00 thousand
• YoY Revenue Growth: N/A

Bk Technologies Announcement Details

• Quarter: Q2 2026
• Date: 8/13/2026
• Time: Before Market Opens
• Conference Call Date: Thursday, August 13, 2026
• Conference Call Time: 9:00AM ET

Bk Technologies (NYSEAMERICAN:BKTI) Corporation develops and supplies wireless communications equipment for public-safety and other specialized markets. Through its BK Technologies and BK Radio operations, the company provides land mobile radio products and systems designed for mission-critical voice communications.

Its product portfolio includes portable and mobile two-way radios, repeaters, base stations, dispatch and control equipment, accessories, and related communications solutions. The company’s offerings are used by federal, state and local government agencies, including law enforcement, fire and emergency services, forestry organizations, and other public-sector and industrial customers.

BK Technologies serves customers primarily in the United States through direct sales, distributors, dealers, and government-focused channels. The company was previously known as RELM Wireless Corporation and adopted the BK Technologies name as part of its focus on the BK Radio brand and public-safety communications market.

Bk Technologies Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Second-quarter revenue rose 10.6% to $23.4 million, while gross margin expanded 445 basis points to 51.9%, driven by strong demand for the higher-margin BKR 9000 multiband radio and broad-based gains among state and local agencies.
• Positive Sentiment: BK Technologies ended the quarter with a record $29.9 million in cash and no debt; trailing 12-month after-tax free cash flow increased 49% year over year to $19 million, providing flexibility for investment and potential shareholder returns.
• Positive Sentiment: The company reported growing traction for its product roadmap, including more than 200 purchase orders for the BKR 9500 in-vehicle multiband radio and positive initial beta feedback for BKRplay, which is targeted for general release in January 2027.
• Negative Sentiment: Higher engineering and product-development spending reduced operating margin to 16.4% from 18.9% a year earlier, while the normalized tax rate pressured results; GAAP EPS fell to $0.79 from $0.96 despite stable pre-tax income.
• Positive Sentiment: Management reiterated full-year 2026 guidance for at least $90 million of revenue, gross margin of 50% or greater, GAAP EPS of $3.15, and adjusted EPS of $3.55, reflecting expected continued growth, margin expansion, and operating leverage.

Presentation

[Operator]

Good morning, ladies and gentlemen, and welcome to the BK Technologies Corporation conference call for the second quarter of 2026. This call is being recorded. All participants have been placed on a listen-only mode. Following management's remarks, the call will be open for questions. There is a slide presentation that accompanies today's remarks, which can be accessed via the webcast. At this time, it is my pleasure to turn the floor over to your host for today, Corbin Woodhull of Hayden Investor Relations. Corbin, please go ahead.

[Corbin Woodhull, Managing Director in Global Advisory at Hayden IR]

Thank you, Paul. Good morning and welcome to our conference call to discuss the BK Technologies results for the second quarter of 2026. On the call today are John Suzuki, the Chief Executive Officer, and Scott Malmanger, the Chief Financial Officer. Before we begin, I would like to take a moment to read the safe harbor statement. Statements made during this conference call are presented in this presentation that are not based on historical facts or forward-looking statements. Such statements include, but are not limited to, projections or statements of future goals and targets regarding the company's revenue and profits. These statements are subject to known and unknown factors and risks.

[Corbin Woodhull, Managing Director in Global Advisory at Hayden IR]

The company's actual results, performance, or achievements may differ materially from those expressed or implied by these forward-looking statements and some other factors and risks that could cause or contribute to such material differences have been described in this morning's press release and BK's filings in the U.S. Securities and Exchange Commission. These statements are based on information and understandings that are believed to be accurate as of today, and we do not undertake any duty to update such forward-looking statements. With that, I will now turn the call over to John Suzuki, CEO of BK Technologies. John, please go ahead.

[John Suzuki, President, CEO, and Board Director at BK Technologies Corp]

Thank you, Corbin. Good morning, everyone, and thank you for joining us on our second quarter of 2026 conference call. I'll start by reviewing our operational and financial performance and then turn it over to our Chief Financial Officer, Scott Malmanger, for a deeper dive into our financial results for the quarter. Following a discussion of the financial results, I will provide our fiscal year 2026 outlook and outline the strategic priorities for our roadmap. We will conclude by opening the call for a brief Q&A. Our second quarter results continued to reflect successful execution of our Vision 2030 strategy and demonstrate the strength of the business model we are building. For the first half of the year, we delivered double-digit revenue growth, generated another record cash balance, and are steadily marching towards our Vision 2030 objectives.

[John Suzuki, President, CEO, and Board Director at BK Technologies Corp]

Second quarter revenue grew 10.6% to $23.4 million, extending our trailing 12-month revenue growth to 15.7%, and gross margin expanded 445 basis points to 51.9%. That performance was driven by strong demand from state and local public safety agencies for our BKR series radios, particularly the BKR 9000 handheld multiband radio, and growing adoption for our BK ONE solutions. In tandem with our top-line trajectory, we continue to prioritize targeted investments behind new products and solutions. Leveraging the powerful combination of top-line growth and favorable product mix, pre-tax income remained stable year-over-year at $4 million, despite a $2.4 million year-over-year increase in operating expenses. Our net income for the quarter was $3.2 million, or $0.79 per diluted share, and compares with $3.7 million or $0.96 per diluted share in the second quarter of last year.

[John Suzuki, President, CEO, and Board Director at BK Technologies Corp]

The variation in our bottom line was driven almost entirely by a $560,000 year-over-year increase in our income tax provision and not by any softness in our underlying business. On a non-GAAP basis, adjusted EPS was $1.01 per diluted share. We closed the quarter with a record $29.9 million in cash and no debt, a significant increase from $22.8 million at the end of 2025 and up $1 million sequentially. This growing cash position provides us with balance sheet strength to keep investing in products and solutions our customers demand. Our trailing 12-month after-tax free cash flow reached $19 million, up 49% year-over-year and continuing to outpace revenue growth, which underscores the operating leverage in our business model.

[John Suzuki, President, CEO, and Board Director at BK Technologies Corp]

Our growth continues to be driven by expanding BKR series footprint across public safety agencies, and we continue to advance our position to address two structural market transitions that we believe define the industry in the years to come. The first is the shift from single band to multiband radios. With millions of public safety first responders operating across the U.S. today, the majority are communicating on private single-band LMR systems and cannot talk to neighboring or federal agencies directly without a multiband radio solution. That transition is still early, represents a multiyear tailwind for multiband BKR 9000, and now the BKR 9500 in-vehicle multiband radio. The second is the evolution from in-vehicle to on-person broadband. The vast majority of public safety vehicles are already connected via broadband. But the moment a first responder steps out of the vehicle, that connectivity has historically been lost.

[John Suzuki, President, CEO, and Board Director at BK Technologies Corp]

Our strategy to address this constraint is to tether the BKR series radio to the smartphone. Our purpose-built solution closes that connectivity gap, and we believe represents a substantial growth runway to target within our Vision 2030 roadmap. Specifically to the 9500, our BKR 9500 multiband in-vehicle radio made its public debut in April to wide acclaim. Since the introduction, we have received purchase orders in excess of 200 radios from a variety of customers. This is especially exceptional since customers have placed these radio orders sight unseen. On the development side, we recently submitted the 9500 for FCC testing and expect to receive FCC approval in early 2027. In parallel, we will begin the transition from our lab to manufacturing and conduct both accelerated life and customer field testing.

[John Suzuki, President, CEO, and Board Director at BK Technologies Corp]

While I am extremely pleased with achieving the FCC submission milestone, we still have a lot of work to do before we can ship customer radios. That being said, we remain highly confident that we will start customer deliveries in the first half of 2027. With BKRplay, our patent-pended tethering solution, we completed initial customer beta testing this quarter with positive feedback, particularly around the ease of switching between LMR and InteropONE cellular communication modes and the reliability of the Bluetooth link. We will continue beta testing through the balance of the year with a broader set of customers and are targeting its general release for January of 2027. We are also continuing to build out our software ecosystem.

[John Suzuki, President, CEO, and Board Director at BK Technologies Corp]

Our recently announced licensing agreement with Tango Tango extends our patented InteropONE technology into one of the country's largest push-to-talk over cellular networks, expanding our reach to more than 1,500 public safety agencies and over 35,000 active users. This creates a pathway for recurring licensing fees over time, while also promoting BKRplay and our BKR series multiband platform to the Tango Tango customer base. With that, I will turn it over to Scott Malmanger, our CFO, to give a more detailed view of our second quarter financial performance. Go ahead, Scott.

[Scott Malmanger, CFO at BK Technologies Corp]

Thank you, John. Sales for the second quarter totaled $23.4 million, an increase of 10.6% compared to $21.2 million in the second quarter of 2025. Growth in the quarter was attributable to broad-based gains across state and local agencies. Gross profit margin in the second quarter was 51.9%, compared with 47.4% in the second quarter of 2025, reflecting favorable product mix and continued robust adoption of our higher margin BKR 9000. Selling, general, and administrative expenses for the second quarter increased to $8.3 million, compared to $6 million in the same quarter last year. The increase in SG&A reflects higher engineering costs associated with new product and solution development to accelerate growth, which is in alignment with our Vision 2030 investment strategy. SG&A expense for the quarter also includes non-cash stock-based compensation expense of approximately $512,000.

[Scott Malmanger, CFO at BK Technologies Corp]

Operating income was $3.8 million in the second quarter of 2026, with operating margin of 16.4%, expanding sequentially from 15.4%, although declining from 18.9% in the prior year second quarter on higher research and development investments. We delivered GAAP net income of $3.2 million, or GAAP EPS of $0.79 per diluted share, compared with net income of $3.7 million or $0.96 per diluted share in the prior year period. Income tax provisions increased by $560,000 versus the year ago quarter, which impacted diluted EPS by about $0.14 per share, while our pre-tax income remained stable at $4 million. The company's effective tax rate for the second quarter of 2026 was about 21%. As we look forward to 2026, our estimated tax rate of 26% compares with 16% for the full year of 2025. With the higher rate reflecting the normalization of our tax profile and profitability increases.

[Scott Malmanger, CFO at BK Technologies Corp]

The diluted EPS impact from a higher estimated effective tax rate is forecasted to be approximately $0.42 per share in 2026, compared with the fiscal year 2025 rate. Turning to slide six, our profit trajectory dates back 12 quarters to the third quarter of 2024. For the second quarter of 2026, we reported non-GAAP adjusted EBITDA of $4.5 million, with an adjusted EBITDA margin of 19.4%, which is somewhat lower than the 20.9% rate on $4.4 million of adjusted EBITDA for the second quarter of 2025. Non-GAAP adjusted earnings, which adds back non-cash stock-based compensation expenses and non-cash income tax provision expense, was $4.1 million, or $1.01 Per diluted share. This compares to adjusted earnings of $5.1 million, or $1.30 per diluted share in the second quarter of 2025.

[Scott Malmanger, CFO at BK Technologies Corp]

Taken together, our profitability trend has been strong, and we anticipate this trajectory will remain on course as product mix shift favorably. The BKR series platform scales and BK ONE gains broader adoption. Turning to cash generation and capital efficiency, we continued to deliver strong results. In the second quarter of 2026, we generated after-tax free cash flow of $4.6 million, and on a trailing 12-month basis, after-tax free cash flow reached $19 million, outpacing revenue growth with a 49% year-over-year increase. After-tax free cash flow is a non-GAAP measure that we believe provides useful insight into the company's ability to generate cash after accounting for taxes. This performance underscores the consistency and resilience of our cash engine, even as we continue to invest for growth. Consistent with prior quarters, we maintain a disciplined approach in the way we manage the business, while still maintaining strong cash conversion.

[Scott Malmanger, CFO at BK Technologies Corp]

We also remain focused on capital efficiency, and that is reflected in our return on invested capital. After recovering meaningfully over the last several years, return on invested capital improved to more than 30% in 2024 and 2025, and maintained above 45% in the second quarter of 2026 on a trailing 12-month basis. Turning to the balance sheet, we ended the second quarter of 2026 with another record cash balance and debt-free balance sheet, underscoring the strong cash-generating capability of the business. On June 30, 2026, we had $29.9 million in cash, a healthy improvement over $22.8 million as of the end of 2025, as well as no debt. The company, as a part of its capital allocation plan, established a Rule 10b5-1 non-discretionary stock repurchase program in September of 2025.

[Scott Malmanger, CFO at BK Technologies Corp]

During the second quarter of 2026, the company completed no repurchases of its common stock as per the conditions of the non-discretionary plan. Working capital improved to $46.1 million as of June 30th, 2026, compared with $37.3 million at December 31st, 2025. Shareholders' equity increased to $52 million, compared with $44.7 million on December 31st, 2025. All in our strong and consistent cash generation provides us with substantial financial flexibility to invest in the business, capitalize on strategic opportunities, and return capital to shareholders over time. I will now turn the call back over to John, who will provide our 2026 outlook and strategic priorities.

[John Suzuki, President, CEO, and Board Director at BK Technologies Corp]

Thanks, Scott. We remain confident in our strategy, and our performance through the first half of 2026 provides evidence of the strength of our approach. Accordingly, we are reiterating our following full year 2026 guidance. Revenue of at least $90 million. Full year gross margin of 50% or greater. Full year GAAP EPS of $3.15. Full year non-GAAP adjusted EPS of $3.55. These targets reflect our current expectations for continued revenue growth, further margin expansion, and operating leverage. Overall, we remain disciplined in balancing strategic investment with profitability and cash generation. Our capital deployment continues to be focused on the best long-term use of cash, and in the near term, that means reinvesting in engineering, software, and product development to support the roadmap we outlined at Investor Day. Every dollar of engineering and software investment we are making is aimed at strengthening our competitive positioning and creating shareholder value.

[John Suzuki, President, CEO, and Board Director at BK Technologies Corp]

Our commitment to serving first responders with mission-critical products and services is reflected in our continued investment in growth, as we expect the BKR series radio platform and advanced innovative software solutions through our BK ONE platform. These investments are central to our strategy and position us to capture emerging opportunities across the public safety communications market. At this time, we will begin polling for questions.

[Operator]

Thank you. At this time, we will begin a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Once again, it's star one if you wish to ask a question today. Please hold while we poll for questions. The first question today is coming from Luke Fingerson from Lake Street Capital Markets. Luke, your line is live.

[Luke Fingerson, Analyst at Lake Street Capital Markets]

Hey, guys. Luke Fingerson on for Jaeson Schmidt here. You mentioned traction with the BKR 9000. Are you able to elaborate on what you're seeing driving the traction with that product?

[John Suzuki, President, CEO, and Board Director at BK Technologies Corp]

Thanks for the question, Luke. I think the key thing that is driving the traction is we are shipping more radios into the field, and those radios are performing well. As customers deploy these radios, they are buying additional radios for their fleet. Not only that, they are introducing the BKR 9000 to other agencies in their surrounding area. We can see that in our year-over-year growth in both our orders and sales of the BKR 9000.

[Luke Fingerson, Analyst at Lake Street Capital Markets]

Gotcha. Any updates on customer feedback on the 9500?

[John Suzuki, President, CEO, and Board Director at BK Technologies Corp]

The feedback continues to be very positive. We recently participated in an exhibit called APCO, the Association of Public-Safety Communications Officials. The conference was well-attended. We had our BKR 9500 on display. We actually had it taken apart so that customers could see the inside of the actual radio. The general comments that we received were highly positive and stated how they just could not believe how well this radio was built and put together. So overall, very good comments so far.

[Luke Fingerson, Analyst at Lake Street Capital Markets]

Gotcha. Well, congrats on a good quarter, and thanks for taking my questions.

[John Suzuki, President, CEO, and Board Director at BK Technologies Corp]

Thank you, Luke.

[Operator]

Thank you. And once again, it will be star one on your phone at this time if you wish to ask a question today. And the next question is coming from Robert Van Voorhis from Vanatoc Capital Management. Robert, your line is live.

[Robert Van Voorhis, Analyst at Vanatoc Capital Management]

Hey. Good morning, guys. Good quarter. Just a quick question, John, for you. Can you just speak to the relevancy of backlog to this business? I know a lot of the orders are sort of just in time, and we don't really tend to hold a lot of backlog. And I know it's been declining, but it appears that it's really not that relevant anymore as a metric for predicting revenue. Can you just talk about that a little bit?

[John Suzuki, President, CEO, and Board Director at BK Technologies Corp]

Well, thanks for the question, Robert, and I think your comments are on point. One thing I will say is, all the challenges of the supply chain that we saw in 2022 and 2023, and of course, moving to our contract manufacturing, East West in 2024, a lot of that has paid off, right? We have a very efficient supply chain now, so that when orders come in, we can turn them around fairly quickly. So that obviously is good news for our customers and good news for cash generation. In terms of the size of the backlog, because we are basically a device company, as orders come in, as long as the supply chain is performing against our forecast and that the sales team is forecasting relatively accurately, we can maintain stock and ship these devices out, and therefore, the orders don't stay in our backlog very long.

[John Suzuki, President, CEO, and Board Director at BK Technologies Corp]

Now, that being said, Robert, we do get very large orders from time to time, typically from, for example, the U.S. Forest Service. We are expecting orders coming in as our third quarter or their end of their fiscal year. Those orders tend to be very large and will typically take a few months to a couple of quarters to deliver. You will see spikes in our backlog when we start seeing some of these large orders.

[Robert Van Voorhis, Analyst at Vanatoc Capital Management]

Got it. Yeah, that is helpful. Thanks. That is it for me.

[Operator]

Thank you. There are no further questions at this time. John and Scott, would you like to make any closing remarks?

[John Suzuki, President, CEO, and Board Director at BK Technologies Corp]

Thank you, Paul. I want to thank the team for their execution this quarter and thank our public safety customers for the trust they continue to place in us every day. We believe BK Technologies is well-positioned with a strengthening balance sheet and expanding software and services opportunity, and a product roadmap built directly around where the market is heading. We look forward to speaking with you again on our next quarterly earnings call. Thank you.

[Operator]

Thank you. This does conclude today's conference. You may disconnect your lines at this time. Thank you for your participation.

Participants

Analysts

• Corbin Woodhull, Managing Director in Global Advisory at Hayden IR
• John Suzuki, President, CEO, and Board Director at BK Technologies Corp
• Scott Malmanger, CFO at BK Technologies Corp
• Luke Fingerson, Analyst at Lake Street Capital Markets
• Robert Van Voorhis, Analyst at Vanatoc Capital Management