BK Technologies Corporation (BKTI) Q3 2025 Earnings Call Transcript
Revenue $24.4 million, a 21% increase year-over-year, driven primarily by robust order activity from federal customers, including multiple purchase orders totaling $12.9 million from the USDA Forest Service.
Gross Margin 49.9%, compared to 38.8% in the third quarter of 2024, reflecting the ongoing shift in the product mix to the higher-margin BKR 9000 multiband radio and price increases implemented in the first half of 2025.
Net Income $3.4 million, a 46% increase year-over-year, driven by revenue growth, gross margin improvement, and ongoing cost management.
Non-GAAP Adjusted EPS $1.27, compared to $0.71 in the third quarter of 2024, reflecting improved profitability metrics.
Cash and Cash Equivalents $21.5 million, compared to $7.1 million at year-end 2024, attributed to improved cash flow and no debt.
SG&A Expenses $7.3 million, compared to $5.2 million in the third quarter of 2024, driven by noncash stock compensation expense of approximately $600,000 and continued investment in sales, marketing, and engineering.
Operating Income $4.8 million, representing an operating margin of 19.8%, compared to $2.6 million or 12.9% in the third quarter of 2024, driven by revenue growth and improved gross margins.
Non-GAAP Adjusted EBITDA $5.3 million, compared to $3.1 million in the third quarter of 2024, with an adjusted EBITDA margin of 21.5%, reflecting enhanced profitability.
Working Capital $33.8 million, compared to $23 million at year-end 2024, reflecting improved financial health and operational efficiency.
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BK Technologies Q3 2025 Earnings Forecast
Earnings Announcement: BK Technologies (BKTI) will announce its Q3 earnings on November 6th, with an expected EPS of $0.96 and revenue of $22.1M, reflecting year-over-year growth.
Performance History: The company has consistently beaten EPS and revenue estimates over the past year, with recent upward revisions in both EPS and revenue estimates.
Growth Outlook: BK Technologies has raised its 2025 EPS target to $3.15 and increased its margin outlook to over 47% due to a surge in federal orders.
Market Sentiment: Seeking Alpha’s Quant Rating indicates a positive outlook for BK Technologies, suggesting the stock is positioned for growth as margins expand.
Zacks Analyst Blog Features Berkshire Hathaway, Toyota Motor, McDonald's, Elite Pharmaceuticals, and BK Technologies
Featured Stocks: Zacks.com highlights stocks such as Berkshire Hathaway, Toyota Motor Corp., McDonald's, Elite Pharmaceuticals, and BK Technologies in their Analyst Blog, focusing on recent market impacts and performance.
Berkshire Hathaway Insights: The company has shown a 9% increase year-to-date, supported by strong cash flow and diverse business activities, although it faces risks from catastrophic losses and upcoming leadership changes.
Toyota Motor Developments: Toyota's shares have increased by 0.8% this year, driven by hybrid vehicle sales, but the company anticipates a decline in operating income due to rising material costs and tariffs.
McDonald's Performance: McDonald's stock has outperformed its industry with a 10.1% gain, bolstered by strong earnings and international sales, though concerns remain over rising costs and soft traffic trends in the U.S.
Key Analyst Insights on Berkshire Hathaway, Toyota Motor, and McDonald's
Research Reports Overview: Zacks Research Daily highlights new reports on 16 major stocks, including Berkshire Hathaway, Toyota, and McDonald's, along with two micro-cap stocks, Elite Pharmaceuticals and BK Technologies.
Berkshire Hathaway Insights: The company has shown strong performance in the insurance sector, but faces challenges such as catastrophic loss exposure and upcoming leadership changes.
Toyota's Market Position: Toyota's sales are boosted by hybrid vehicle adoption, yet it anticipates a decline in operating income due to rising material costs and tariffs affecting imports.
McDonald's Growth Strategy: McDonald's has outperformed its industry with strong earnings driven by international sales and strategic initiatives, although it faces concerns over rising costs and soft traffic trends in the U.S.
Lake Street Maintains Buy on BK Technologies, Raises Price Target to $74
Fastest News Alerts: Benzinga Pro offers real-time intelligence and news alerts to help traders stay informed and make winning trades in the stock market.
Exclusive Community Access: Joining Benzinga Pro connects users with over 10,000 serious traders and provides access to exclusive stories and insights from Benzinga reporters.
BK Technologies raises 2025 EPS target to $3.15 and lifts margin outlook to 47%+ as federal orders surge
Management Insights: BK Technologies reported a strong Q2 2025 with a revenue increase of 4.5% to $21.2 million and improved gross margin of 47.4%. CEO John M. Suzuki expressed optimism for high single-digit revenue growth in 2025, supported by significant federal orders and the launch of new products like RelayONE.
Financial Outlook: The company raised its full-year GAAP EPS target to $3.15 and non-GAAP adjusted EPS to $3.80, citing better clarity on tariffs and robust order activity as key drivers. Analysts noted a positive sentiment regarding sustainable growth and margin improvements during the earnings call.
Bk Technologies EPS Jumps 136 Percent
Strong Financial Performance: Bk Technologies reported a significant earnings beat in Q2 2025, with non-GAAP diluted EPS of $1.30, exceeding analyst estimates, and a gross margin increase to 47.4%, prompting an upward revision of full-year revenue and EPS guidance.
Government Contract Reliance and Risks: The company continues to heavily rely on government contracts, particularly from federal agencies, which drives its sales; however, risks include potential changes in federal spending, tariff implications, and supply chain disruptions that could affect future performance.
BK Technologies Q3 2025 Earnings Forecast
Earnings Announcement: BK Technologies (BKTI) will announce its Q3 earnings on November 6th, with an expected EPS of $0.96 and revenue of $22.1M, reflecting year-over-year growth.
Performance History: The company has consistently beaten EPS and revenue estimates over the past year, with recent upward revisions in both EPS and revenue estimates.
Growth Outlook: BK Technologies has raised its 2025 EPS target to $3.15 and increased its margin outlook to over 47% due to a surge in federal orders.
Market Sentiment: Seeking Alpha’s Quant Rating indicates a positive outlook for BK Technologies, suggesting the stock is positioned for growth as margins expand.
Zacks Analyst Blog Features Berkshire Hathaway, Toyota Motor, McDonald's, Elite Pharmaceuticals, and BK Technologies
Featured Stocks: Zacks.com highlights stocks such as Berkshire Hathaway, Toyota Motor Corp., McDonald's, Elite Pharmaceuticals, and BK Technologies in their Analyst Blog, focusing on recent market impacts and performance.
Berkshire Hathaway Insights: The company has shown a 9% increase year-to-date, supported by strong cash flow and diverse business activities, although it faces risks from catastrophic losses and upcoming leadership changes.
Toyota Motor Developments: Toyota's shares have increased by 0.8% this year, driven by hybrid vehicle sales, but the company anticipates a decline in operating income due to rising material costs and tariffs.
McDonald's Performance: McDonald's stock has outperformed its industry with a 10.1% gain, bolstered by strong earnings and international sales, though concerns remain over rising costs and soft traffic trends in the U.S.
Key Analyst Insights on Berkshire Hathaway, Toyota Motor, and McDonald's
Research Reports Overview: Zacks Research Daily highlights new reports on 16 major stocks, including Berkshire Hathaway, Toyota, and McDonald's, along with two micro-cap stocks, Elite Pharmaceuticals and BK Technologies.
Berkshire Hathaway Insights: The company has shown strong performance in the insurance sector, but faces challenges such as catastrophic loss exposure and upcoming leadership changes.
Toyota's Market Position: Toyota's sales are boosted by hybrid vehicle adoption, yet it anticipates a decline in operating income due to rising material costs and tariffs affecting imports.
McDonald's Growth Strategy: McDonald's has outperformed its industry with strong earnings driven by international sales and strategic initiatives, although it faces concerns over rising costs and soft traffic trends in the U.S.
Lake Street Maintains Buy on BK Technologies, Raises Price Target to $74
Fastest News Alerts: Benzinga Pro offers real-time intelligence and news alerts to help traders stay informed and make winning trades in the stock market.
Exclusive Community Access: Joining Benzinga Pro connects users with over 10,000 serious traders and provides access to exclusive stories and insights from Benzinga reporters.
BK Technologies raises 2025 EPS target to $3.15 and lifts margin outlook to 47%+ as federal orders surge
Management Insights: BK Technologies reported a strong Q2 2025 with a revenue increase of 4.5% to $21.2 million and improved gross margin of 47.4%. CEO John M. Suzuki expressed optimism for high single-digit revenue growth in 2025, supported by significant federal orders and the launch of new products like RelayONE.
Financial Outlook: The company raised its full-year GAAP EPS target to $3.15 and non-GAAP adjusted EPS to $3.80, citing better clarity on tariffs and robust order activity as key drivers. Analysts noted a positive sentiment regarding sustainable growth and margin improvements during the earnings call.
Bk Technologies EPS Jumps 136 Percent
Strong Financial Performance: Bk Technologies reported a significant earnings beat in Q2 2025, with non-GAAP diluted EPS of $1.30, exceeding analyst estimates, and a gross margin increase to 47.4%, prompting an upward revision of full-year revenue and EPS guidance.
Government Contract Reliance and Risks: The company continues to heavily rely on government contracts, particularly from federal agencies, which drives its sales; however, risks include potential changes in federal spending, tariff implications, and supply chain disruptions that could affect future performance.
