Bk Technologies NYSEAMERICAN: BKTI reported a stronger first quarter of fiscal 2026, with management citing higher demand for its BKR Series radios, an improved product mix and continued cash generation as key drivers of the period’s performance.
Chief Executive Officer John Suzuki said the quarter marked “a strong beginning to 2026 and a successful start” to the company’s Vision 2030 plan. He said revenue growth, margin expansion and a record cash balance reflected the company’s operating model and investments in products and solutions.
Revenue for the quarter rose 11.8% year over year to $21.3 million, compared with $19.1 million in the first quarter of 2025. Suzuki said revenue expanded 14% on a trailing 12-month basis, supported by momentum in the company’s public safety communications business and demand from federal, state and local agencies.
Profitability Improves on Product Mix
Chief Financial Officer Scott Malmanger said gross profit margin increased to 51.8% in the first quarter from 47% a year earlier, reflecting a favorable product mix and continued adoption of the higher-margin BKR 9000 radio.
Operating income was $3.3 million, with an operating margin of 15.4%. GAAP net income rose to $2.8 million, or $0.74 per basic share and $0.69 per diluted share, compared with $2.1 million, or $0.60 per basic share and $0.55 per diluted share, in the prior-year period.
On a non-GAAP basis, adjusted EBITDA increased to $4 million, with an adjusted EBITDA margin of 18.7%, compared with $3.2 million and a 16.9% margin in the first quarter of 2025. Non-GAAP adjusted earnings were $3.5 million, or $0.94 per basic share and $0.88 per diluted share, compared with $2.4 million, or $0.67 per basic share and $0.62 per diluted share, a year earlier.
Malmanger said selling, general and administrative expenses rose to $7.7 million from $6 million in the prior-year quarter. He attributed the increase to higher engineering costs tied to new product and solution development, along with continued investment in innovation. SG&A included about $400,000 in non-cash stock-based compensation expense.
Cash Balance Reaches Record Level
The company generated after-tax free cash flow of $4.1 million in the quarter, up 44% year over year, according to Suzuki. Malmanger said the result reflected the company’s cash conversion while it continued to invest for growth.
Bk Technologies ended the quarter with $29 million in cash, up from $22.8 million at the end of 2025, and no debt. Working capital increased to $41.3 million from $37.3 million at Dec. 31, 2025, while shareholders’ equity rose to $47.7 million from $44.7 million.
Malmanger also noted that the company repurchased approximately 3,000 shares of common stock during the quarter under a Rule 10b5-1 non-discretionary stock repurchase program established in September 2025.
BKR 9000 Demand and BKR 9500 Launch in Focus
Suzuki said the company’s Vision 2030 roadmap is built around two market transitions: the shift from single-band to multiband radios and the move from in-vehicle to on-person broadband solutions. He said Bk Technologies is seeking to capture those opportunities through its BKR Series radios and BK ONE solutions platform.
The company has shipped more than 95,000 BKR 5000 single-band radios since the product entered the market in late 2020. Suzuki said the BKR 5000 continues to support an upgrade path to the BKR 9000 multiband radio.
During the first quarter, the Minnesota Department of Natural Resources placed an order for 500 BKR 9000 radios. Suzuki said the order demonstrated customer acceptance of the multiband product. In response to an analyst question from Jaeson Schmidt of Lake Street, Suzuki said demand for the BKR 9000 is coming from both existing and new customers. Existing customers, he said, often start with the BKR 5000, test the BKR 9000 and then move to multiband radios for broader interoperability.
“In terms of new customers, I would say the volume is lower because they’re still in that test and evaluation phase for the 9000,” Suzuki said, adding that larger add-on orders are emerging as radios prove themselves in the field.
Suzuki also discussed the April debut of the BKR 9500 multiband mobile radio at FDIC International in Indianapolis. He said the product received an “overwhelmingly positive” response and generated strong customer engagement. The company also booked its first BKR 9500 order in April from a large existing customer in the Southwest.
Dealer training and customer contract updates are underway, and Suzuki said the company remains on pace for Federal Communications Commission approval in the second half of 2026, with shipments expected in the first half of 2027. In the Q&A session, he said he expects adoption of the BKR 9500 to be faster than the BKR 9000 because customers that purchased the BKR 9000 are also interested in the new mobile radio.
2026 Guidance Reaffirmed
Suzuki reaffirmed the company’s full-year 2026 outlook. The guidance includes:
- Revenue of at least $90 million
- Full-year gross margin of 50% or greater
- Full-year GAAP earnings per share of $3.15
- Full-year non-GAAP adjusted earnings per share of $3.55
Management said the targets reflect expectations for continued revenue growth, additional margin expansion and operating leverage. Malmanger said the company’s estimated tax rate for 2026 is 26%, compared with 16% for full-year 2025, reflecting normalization of the tax profile and higher profitability. He estimated the diluted EPS impact of the higher tax rate at approximately $0.44 per share in 2026.
Asked about gross margin, Suzuki declined to comment beyond the company’s guidance but said the long-term goal is to reach 60%. He added that the path to that target may not be linear and reiterated that management expects gross margin above 50% for the full year.
On expenses, Malmanger said increases are primarily tied to product and software development. He said hardware development costs can be “lumpy,” depending on prototypes and regulatory milestones such as FCC approval, while software-related costs are expected to be more consistent.
Suzuki closed the call by saying the company remains focused on building a scalable communications platform designed to deliver revenue growth, earnings expansion and free cash flow while serving first responders nationwide.
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.
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