BK Technologies revenue rises 3.6% to $25.3 million in third quarter
Key Facts
BK Technologies reported results on November 12 for the third quarter ended September 30, 2026, posting revenue of $25.3 million, up 3.6% from the same period in 2025. The company said sales growth was driven by strong federal order activity, particularly from the U.S. Forest Service. Gross profit margin was 50.7%, compared with 49.9% in the third quarter last year. But operating income fell to $4.4 million from $4.8 million, and operating margin declined to 17.5% from 19.8%. The company reported non-GAAP adjusted earnings of $1.16 per diluted share, versus $1.24 a year earlier. The comparison of earnings per share or revenue with analysts’ estimates could not be verified from the Investing.com page cited in previous coverage.
The company attributed the wider gross margin to an improved product mix and adoption of the multiband BKR 9000 and single-band BKR 5000 devices. The chief executive said the U.S. Forest Service took delivery of 3,000 BKR 5000 Orange devices during the quarter and adopted it as its new standard device. This is consistent with the reference to federal demand as the main driver of revenue growth, with a specific government customer contributing to order growth. In contrast, the company said higher engineering expenses were the main reason for the declines in operating income and margin. General, administrative and selling expenses also rose to $8.4 million from $7.3 million in the year-earlier quarter. The company linked the increase to planned investments in the BKR9500 platform and development of the BK ONE software ecosystem.
On profitability, non-GAAP adjusted net income was $1.16 per diluted share, compared with $1.24 in the third quarter of 2025. These figures highlight a divergence between the improvement in gross profit margin and year-over-year declines in operating and adjusted profitability measures. On liquidity, the company said after-tax free cash flow for the 12 months ended September 30 was $18.9 million, up 25% year over year. It ended the quarter with $29.2 million in cash and no debt. These indicators provide a picture of liquidity and cash flows alongside quarterly results as the company invests in its products and software.
BK Technologies cut its fiscal 2026 revenue forecast to about $85 million and set expected GAAP diluted earnings at $2.40 per share and adjusted earnings at $3.15 per share. The company maintained its gross profit margin target of at least 50%. The revenue revision comes alongside expectations that shipments of BKR 9000 devices affected by production disruption will shift to 2027. The company said it expects production to return to normal levels during the first quarter of 2027. Part of its outlook therefore depends on the timing of production recovery and the shift of affected shipments into the following year. The company also said its board doubled its share repurchase authorization to $10 million, with about $8.4 million remaining available.
In premarket trading on November 12, the stock fell 3.01% to $67.35, after closing at $69.44 on November 11. The move followed the release of results and revised guidance, with the figures showing revenue growth and an improved gross margin on one hand, and lower operating income and adjusted profitability on the other. Regarding events in the previous quarter, the company said in a filing with the U.S. Securities and Exchange Commission that a partial roof collapse occurred at its headquarters and main manufacturing facility in West Melbourne during a thunderstorm on October 8, 2026. The company said in its earnings call transcript that the incident occurred after business hours and no employees were injured. The company expected production levels to return to normal during the first quarter of 2027, with affected shipments shifting to 2027.