BK Technologies (BKTI) Q3 2026 earnings summary

Executive summary

• Q3 sales rose 3.6% YoY to $25.285M; gross margin reached 50.7% and net income increased 8.7% to $3.735M.

• TTM after-tax free cash flow was $18.9M, up 25% YoY; quarter-end cash was $29.2M with no debt.

Financial highlights

• Q3 gross margin was 50.7% vs. 49.9%; operating income fell 8.6% to $4.428M as SG&A rose 14.1% to $8.381M.

• GAAP diluted EPS was $0.93 vs. $0.87; adjusted earnings were $4.692M, or $1.16 per diluted share, vs. $4.9M and $1.24.

• Adjusted EBITDA was $5.174M with a 20.5% margin vs. $5.252M and 21.5%; Q3 after-tax free cash flow was $5.2M.

• Nine-month sales rose 8.3% to $70.0M; gross margin was 51.4% vs. 48.2%, operating income $11.5M vs. $11.8M, and net income $9.7M vs. $9.3M.

Outlook and guidance

• FY26 targets are $85M revenue, gross margin of at least 50%, GAAP diluted EPS of $2.40 and adjusted diluted EPS of $3.15.

• Guidance reflects reduced Q4 BKR 9000 shipments after the October 8 roof collapse; deferred orders are expected to ship as output normalizes in Q1 2027.

• Guidance excludes potential business-interruption insurance recoveries and tariff refunds; amounts and timing remain uncertain.

• BKR 9500 FCC certification is expected by year-end 2026, with mass production targeted for March 2027.