BK Technologies (BKTI) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue rose 10.6% year-over-year to $23.4 million, driven by strong demand for BKR series radios and new product launches, including the BKR 9500 multiband radio.

• Gross margin expanded to 51.9%, up 445 basis points from the prior year, reflecting favorable product mix and increased sales of BKR radios.

• Net income for Q2 2026 was $3.2 million ($0.79 per diluted share), down from $3.7 million ($0.96 per share) in Q2 2025, mainly due to higher tax provision.

• Ended the quarter with a record $29.9 million in cash and no debt, supporting ongoing investments in product innovation.

• Continued execution of Vision 2030 strategy, with strong customer feedback and initial orders for the BKR 9500 in-vehicle radio.

Financial highlights

• Q2 2026 revenue: $23.4 million, up from $21.2 million in Q2 2025; trailing 12-month revenue growth at 15.7%.

• Gross margin: 51.9% vs. 47.4% in Q2 2025.

• Adjusted EPS was $1.01 per diluted share; adjusted EBITDA was $4.5 million (19.4% margin).

• TTM free cash flow after tax: $19.0 million, up 49% year-over-year.

• Working capital at $46.1 million and shareholders' equity at $52 million as of June 30, 2026.

Outlook and guidance

• Reiterated full-year 2026 guidance: revenue of at least $90 million, gross margin above 50%, GAAP EPS of $3.15, and non-GAAP adjusted EPS of $3.55.

• Continued focus on reinvesting in engineering, software, and product development to support long-term growth.

• Guidance reflects expensing of engineering costs previously capitalized.

• Management notes order timing from government agencies can cause quarterly fluctuations.

• Monitoring macroeconomic risks, including inflation, supply chain disruptions, and geopolitical tensions.