BK Technologies Q2 revenue rises 11%, profit drops on higher tax provision

BK Technologies

13/08/2026 12:13

Overview
US public safety radio maker's Q2 revenue rose 11% year-over-year
Gross margin expanded to 51.9% on favorable product mix and new radio adoption
Net income declined due to higher income tax provision

Outlook
BK Technologies reiterates 2026 revenue target of $90 mln
Company maintains 2026 gross margin guidance of above 50%
BK Technologies sees 2026 GAAP EPS over $3.15 and non-GAAP adjusted EPS of $3.55 per diluted share

Result Drivers
STRONG PUBLIC SAFETY DEMAND - Co said revenue growth was driven by strong order activity from state and local public safety agencies
FAVORABLE PRODUCT MIX - Gross margin expansion attributed to favorable product mix and continued customer adoption of BKR 9000 handheld multiband radio
ENGINEERING INVESTMENTS - Higher SG&A expenses driven by planned engineering investments in BKR9500 in-vehicle radio and BK ONE software ecosystem

Company press release: ID:nACSxXhrma

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$23.41 mln
$22.60 mln (1 Analyst)
Q2 Adjusted EPS
Beat
$1.01
$0.87 (1 Analyst)
Q2 EPS
 
$0.79
 
Q2 Adjusted Net Income
Beat
$4.10 mln
$3.54 mln (1 Analyst)
Q2 Net Income
 
$3.17 mln
 
Q2 Adjusted EBITDA
Miss
$4.50 mln
$5.23 mln (1 Analyst)
Q2 Gross Margin
 
51.90%
 
Q2 EBIT
 
$3.83 mln
 
Q2 Pretax Profit
 
$4.003 mln
 

Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the communications & networking peer group is "buy"
Wall Street's median 12-month price target for BK Technologies Corp is $97.00, about 24.4% above its August 12 closing price of $77.95
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 26 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)