BK Technologies Corp.: Q2 FY2026 earnings call
What management said about Q2 FY2026, from the documents filed with the SEC on 14 August 2026: press release. Guidance figures: 4 kept. The quarter’s numbers.
Key takeaways
- Revenue rose 11% to $23.4 million: Second-quarter revenue was $23.4 million, up 10.6% from $21.2 million in the second quarter of 2025.
- Net income and diluted EPS declined: Net income was $3.2 million, or $0.79 per diluted share, against $3.7 million, or $0.96 per diluted share, a year earlier. Management attributed the variation partly to a higher tax provision.
- Gross margin rose 445 basis points: Gross margin was 51.9% against 47.4%, which the company tied mainly to product mix and customer adoption of the BKR 9000 handheld.
- Operating expenses rose on engineering spend: SG&A rose to $8.3 million from $6.0 million, mainly from planned engineering investment in the BKR9500 and BK ONE software.
- BKR9500 initial orders placed early: The BKR9500 in-vehicle radio was publicly debuted in April 2026. Existing customers placed initial orders ahead of FCC approval.
- Cash rose to $29.9 million: Cash and equivalents reached $29.9 million, up $1 million from the prior quarter and from $22.8 million at December 31, 2025.
- Trailing free cash flow rose 49%: Trailing-twelve-month free cash flow after tax was $19.0 million, a 49% increase year over year; the company presents it as a non-GAAP measure.
“Our second quarter demonstrates the strength of the business model we're building.”
John Suzuki, CEO of BK Technologies
Guidance
| Area | Period | Figure | Against last quarter |
|---|---|---|---|
| Revenue | full year 2026 | $90 million | Kept |
| Gross margin | full year 2026 | +50% | Kept |
| GAAP EPS | full year 2026 | over $3.15 per diluted share | Kept |
| Non-GAAP adjusted EPS | full year 2026 | $3.55 per diluted share | Kept |
What changed from last quarter
- New: The 2026 targets now reflect expensing of engineering costs that were previously capitalized.
Revenue and earnings
- Revenue rose 11% to $23.4 million: Second-quarter revenue was $23.4 million, up 10.6% from $21.2 million in the second quarter of 2025.
- Net income and diluted EPS declined: Net income was $3.2 million, or $0.79 per diluted share, against $3.7 million, or $0.96 per diluted share, a year earlier. Management attributed the variation partly to a higher tax provision.
- Trailing net income reached $13.6 million: Trailing-twelve-month net income increased 14% to $13.6 million.
Margins and operating costs
- Gross margin rose 445 basis points: Gross margin was 51.9% against 47.4%, which the company tied mainly to product mix and customer adoption of the BKR 9000 handheld.
- Operating expenses rose on engineering spend: SG&A rose to $8.3 million from $6.0 million, mainly from planned engineering investment in the BKR9500 and BK ONE software.
- Operating margin fell to 16.4%: Operating income was $3.8 million against $4.0 million, and operating margin was 16.4% against 18.9%, reflecting engineering and non-cash deferred compensation expense.
- Adjusted EBITDA edged up: Adjusted EBITDA was $4.5 million against $4.4 million; its margin was 19.4% against 20.9%.
“We closed the quarter with a record $29.9 million in cash and no debt, giving us balance sheet strength to continue investing in the products our customers demand most.”
John Suzuki, CEO of BK Technologies
Products and customers
- BKR9500 initial orders placed early: The BKR9500 in-vehicle radio was publicly debuted in April 2026. Existing customers placed initial orders ahead of FCC approval.
- State and local agencies drove demand: Management attributed revenue growth to state and local public safety agencies and continued adoption of the BKR 9000 handheld multiband radio.
- BKRplay tethering tested in field: Initial field testing of the patent-pending BKRplay tethering solution was reported. Management said customer feedback is validating its strategy.
Six-month results
- Six-month revenue up 11.2%: Six-month revenue was $44.7 million, up from $40.2 million, with six-month gross margin at 51.8% against 47.2%.
- Six-month net income flat, EPS lower: Six-month net income was $5.9 million in both periods, with diluted EPS of $1.47 against $1.51.
- Six-month SG&A higher: Six-month SG&A was $16.1 million against $12.1 million, and operating income was $7.1 million against $6.9 million.
- Six-month adjusted EBITDA higher: Six-month adjusted EBITDA was $8.5 million against $7.6 million, a margin of 19.1% against 19.0%.
Cash and balance sheet
- Cash rose to $29.9 million: Cash and equivalents reached $29.9 million, up $1 million from the prior quarter and from $22.8 million at December 31, 2025.
- Working capital reached $46.1 million: Working capital was $46.1 million, of which $42.1 million was cash, cash equivalents and trade receivables.
- No debt at quarter end: The company reported no debt at the end of the quarter.
- Trailing free cash flow rose 49%: Trailing-twelve-month free cash flow after tax was $19.0 million, a 49% increase year over year; the company presents it as a non-GAAP measure.
- Outstanding share count increased: Outstanding shares were 3,768,151 at June 30, 2026, against 3,733,733 at December 31, 2025.
Non-GAAP earnings presentation
- Adjusted earnings were $4.1 million: Adjusted earnings were $4.1 million, or $1.01 per diluted share, against $5.1 million, or $1.30 per diluted share, in the second quarter of 2025.
- Adjustments exclude stock compensation: Adjusted EPS excludes non-cash stock-based compensation and a one-time non-cash income tax provision for NOL carryforwards recorded in the second, third and fourth quarters of 2025.
Strategy and investment
- Capital directed to new products: Management said the best use of capital is investing in new products and solutions, positioned against the top priorities in public safety communications.
- Multiband transition continues: Management said the market continues moving from single-band to multiband radios.
- On-person broadband shift early: Management said the shift from in-vehicle to on-person broadband is in its early stages and presents a long-term growth area.
Coming up, as management said on 14 August 2026
- BKR9500 customer deliveries: Management said it remains on track for customer deliveries of the BKR9500 in the first half of 2027.
Risks management discussed
- Regulatory: The BKR9500 has initial orders placed ahead of FCC approval, a regulatory step the release refers to.
Earlier plans management reported on
- On track: Management said first-half performance keeps it on track to deliver full-year guidance.
- On track: Management said it remains on track for customer deliveries in the first half of 2027.
- Not stated: Management said results reflect continued execution of the Vision 2030 strategy; no status was given.
Other quarters
Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.