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What were the key takeaways from BK Technologies's earnings call?

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What is BK Technologies's latest dividend and current dividend yield?

- **Revenue Surges 21% YoY**: Q3 2025 revenue of $24.4 million, up 21%, fueled by federal orders and BKR 9000 sales.
- **Gross Margin Soars to 49.9%**: Tariff price hikes and higher-margin product mix drive 11.1ppt margin expansion vs. Q3 2024.
- **Net Income Up 46%**: $3.4 million net income, with non-GAAP EPS of $1.27, reflecting strong cost control.
- **Cash Position Strengthens**: $21.5 million cash, up from $7.1 million, enabling strategic investments.
- **Shutdown Mitigation Plan**: Federal order delays offset by state/local shipments, maintaining revenue guidance.
- **BKR 9000 Growth**: 2x-3x 2024 unit sales on track, driving long-term margin expansion.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 2025 revenue reached $24.4 million, a 21% year-over-year increase, driven by $12.9 million in federal orders from the USDA Forest Service.
- **Gross Margin Expansion**: Improved to 49.9% (vs. 38.8% in Q3 2024), driven by higher-margin BKR 9000 multiband radio sales and tariff-related price hikes.
- **Profitability**: Net income rose 46% to $3.4 million, with non-GAAP EPS of $1.27. Full-year targets include high single-digit revenue growth, 47%+ gross margin, and GAAP EPS of $3.15.
- **Mitigation Strategy**: Federal government shutdown risk managed by holding shipments and redirecting inventory to state/local customers, maintaining revenue guidance.

**【CFO Financial Commentary】**
- **Financial Health**: Cash increased to $21.5 million (from $7.1 million at year-end 2024), with no debt, enabling strategic investments.
- **Cost Management**: SG&A expenses rose to $7.3 million (vs. $5.2 million in Q3 2024), driven by sales, marketing, and engineering investments.
- **Tax Adjustment**: $1.5 million provision for R&D tax credit adjustments under The Big Beautiful Bill impacted Q3 net income.
- **Liquidity**: Working capital improved to $33.8 million, up from $23 million at year-end 2024, supporting operational flexibility.

**【Q&A Highlights】**
- **Government Shutdown Impact**: Management confident in Q4 execution, with mitigation plan to fulfill state/local orders if federal shutdown persists.
- **Gross Margin Outlook**: Q3 gross margin of 49.9% reflects strong product mix; full-year target of 47%+ achievable despite potential federal order delays.
- **Cash Flow Efficiency**: Positive cash flow from operations exceeds adjusted EBITDA, with operating leverage driving profitability growth.
- **Long-Term Strategy**: Vision 2030 includes further margin expansion and potential M&A, details to be shared in Q4 2025 call.
- **BKR 9000 Momentum**: On track to ship 2x-3x 2024 units in 2025, with pricing stability and higher-margin sales driving growth.


BK Technologies Corporation (BKTI) Q3 2025 Earnings Call Transcript

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