BK Technologies Corp Posts 4.5% Revenue Growth, Raises Gross Margin Target to 47%

BK Technologies Corp reported a 4.5% increase in Q2 revenue to $21.2 million and a significant improvement in gross margin to 47.4%. The company launched Relay 1, received substantial federal orders, and raised its full-year gross margin target to 47%. However, selling, general, and administrative expenses increased slightly, and the backlog at the end of Q2 was lower than anticipated.

BK Technologies Corp (BKTI) reported a robust performance in its Q2 2025 earnings call, with significant gains in both revenue and earnings per share (EPS). The company achieved a notable increase in its stock price, which surged by 39.96% to $54.44 in premarket trading [4].

Key highlights of the Q2 performance include:

- Revenue Growth: BK Technologies Corp reported a 4.5% increase in Q2 revenue to $21.2 million, aligning with their targeted single-digit growth for 2025 [1][2][3].
- Improved Gross Margin: The company’s gross margin improved significantly to 47.4% from 37.3% in the same quarter of the previous year, driven by a favorable sales mix and cost reduction initiatives [1][2][3].
- New Product Launch: The company launched Relay 1, a portable repeater kit, and received a purchase order from Larimer County Sheriff's Office, indicating strong market acceptance [1][2][3].
- Federal Orders: BK Technologies Corp received substantial federal orders, including a $12.9 million order from the USDA Forest Service, highlighting their strong position in the federal communications market [1][2][3].
- Full-Year Targets: The company raised its full-year gross margin target to 47% and increased its GAAP EPS target to $3.15, reflecting confidence in their business trajectory and improved operating models [1][2][3].

However, the report also includes some challenges:

- Selling, General, and Administrative Expenses: These expenses increased slightly to $6 million, reflecting strategic investments in engineering and product development [1][2][3].
- Backlog: The backlog at the end of Q2 was lower than anticipated at $16 million, partly due to the timing of federal orders [1][2][3].
- Tariff Policies: The company remains cautious about potential changes in tariff policies, which could impact future financial performance [1][2][3].

In conclusion, BK Technologies Corp demonstrated strong financial performance in Q2 2025, with notable improvements in revenue and gross margin. The company's strategic initiatives and market acceptance of new products have contributed to its positive outlook. However, the company continues to monitor potential risks from tariff policies and backlog levels.

References:
[1] https://finance.yahoo.com/news/bk-technologies-corp-bkti-q2-170140172.html
[2] https://sg.finance.yahoo.com/news/bk-technologies-corp-bkti-q2-170140172.html
[3] https://ca.finance.yahoo.com/news/bk-technologies-corp-bkti-q2-170140172.html
[4] https://www.investing.com/news/transcripts/earnings-call-transcript-bk-technologies-q2-2025-sees-stock-surge-on-strong-eps-93CH-4192729