BK Technologies reported third‑quarter 2025 results that surpassed consensus estimates, with revenue rising 21% to $24.4 million and net income climbing 46% to $3.4 million. GAAP diluted earnings per share reached $0.87, a $0.01 beat over the $0.86 consensus, while non‑GAAP adjusted EPS climbed to $1.27, up $0.56 from the $0.71 forecast. Gross margin expanded to 49.9%, a 11‑percentage‑point lift from 38.8% in Q3 2024, and the company’s cash balance stood at $21.5 million on a debt‑free balance sheet.
The revenue increase was driven largely by a surge in federal orders, especially from the USDA Forest Service, and the strong sales of the high‑margin BKR 9000 multiband radios. The product mix shift toward the BKR 9000, which carries a higher gross margin, accounted for a significant portion of the margin expansion. Compared with Q2 2025, revenue grew from $21.2 million to $24.4 million, and gross margin improved from 47.4% to 49.9%, underscoring the company’s ability to scale its high‑margin portfolio while maintaining cost discipline.
Margin expansion was also supported by operational efficiencies from the company’s asset‑light manufacturing model, which reduced direct‑material and labor costs. The higher mix of BKR 9000 radios, combined with lower cost of goods sold for the broader product line, lifted gross margin to 49.9%. This improvement is a clear indicator that the company’s strategic shift toward higher‑margin products is delivering tangible financial benefits.
Management reiterated its full‑year 2025 guidance, projecting high single‑digit revenue growth, a gross margin of at least 47%, GAAP EPS of $3.15 per share, and non‑GAAP adjusted EPS of $3.80 per share. The guidance, unchanged from the prior quarter, signals confidence that the momentum from federal demand and the high‑margin product mix will continue throughout the year.
CEO John Suzuki said, “This was an excellent quarter for us, reflecting strong revenue growth, margin expansion and a significant increase in profitability.” He added that the company remains confident in meeting or surpassing its guidance, citing the continued demand for its public‑safety communications solutions and the benefits of its outsourced manufacturing strategy.
Investors responded positively to the results, with market participants highlighting the company’s margin expansion and revenue beat as key drivers of the favorable reaction. Analysts noted that the earnings beat, though modest, was a clear sign that the company’s focus on high‑margin products and cost efficiencies is paying off, reinforcing confidence in its long‑term trajectory.
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