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CLOSED · 04:10 ET
Market ClerkRecap
Sat Oct 24 · markets closed6 signals on Oct 2394 insider buys this week · $48.3MCIRO short report next: Oct 31The week ahead

BKTI

BK Technologies Corp
NYSE · TECHNOLOGY · RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT
66.54
−0.19 −0.28%
USD · close Oct 23
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Work order
28
FLAG · shorts 28
Insiders, 90 days
0
no open-market filings in 90 days
Congress, 90 days
0 / 0
no disclosures naming it
Big money
0 / 15
none of the tracked funds disclose it
Calls on record
0
nobody we score has called it yet
MKT CAP $250.8MP/E 19.5DIV YIELD —FCF YIELD 7.83%REV TTM —NET INCOME $13.6M +14.4%NET CASH $29.9M52W 62.56 – 96.95SEC XBRL · TTM TO Invalid Date

How BKTI rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025
Text kept
34%
of sentences unchanged
Added
307
new sentences
Dropped
281
sentences removed
Length
+1,172
words, now 22,757

New in FY2025

  • In business for over 70 years, BK operates two key product group offerings: Radio and Solutions.
  • The Radio product group designs, manufactures and markets wireless communications products and related accessories consisting of two-way land mobile radios (“LMRs”).
  • We believe that our products and solutions provide superior value by offering high specification, ruggedized, durable, reliable, feature rich, Project 25 (“P25”) compliant radio products at a lower cost relative to comparable offerings.
  • The Solutions product group focuses on delivering innovative products and smartphone applications which operate ubiquitously over public cellular networks.
  • Our BK ONE branded solutions are designed to provide advanced field applications that enhance situational awareness, decision-making and interagency coordination that enable the first responder to be safer and more efficient.
  • Our BK ONE portfolio provides law enforcement improved safety and productivity, fire incident first responders more situational awareness and EMS first responders with enhanced patient safety and advanced care measures.
  • When tethered to our radios, the combined solution offers an enhanced user experience with more unique capability which increases the sales reach of our radios.
  • The Company continues to monitor the impacts of various macroeconomic trends, such as inflationary pressure, changes in monetary policy, decreasing consumer confidence and spending, the introduction of or changes in tariffs or trade barriers, supply chain and labor disruptions, materials shortages, political and social unrest, geopolitical conflicts, and global or local recession.
  • Such changes in domestic and global macroeconomic conditions may lead to increased costs for the business.
  • Additionally, these macroeconomic trends could adversely affect the Company’s customers, which could impact their willingness to spend on the Company’s products and services, or their ability to make payments, which could harm the collection of accounts receivable and financial results.
  • The world’s financial markets remain susceptible to significant stresses, resulting in reductions in available credit and government spending, economic downturn or recession, foreign currency fluctuations and volatility in the valuations of securities generally.
  • As a result, the Company’s ability to access capital markets and other funding sources in the future may not be available on commercially reasonable terms, if at all.
  • The rapid development and fluidity of these situations precludes any prediction as to the ultimate impact they will have on the Company’s business, financial condition, results of operation and cash flows, which will depend largely on future developments Customer demand and orders for our products were strong during 2024 and 2025.
  • The increase in sales for the year ended December 31, 2025, was primarily attributed to sales of the BKR9000 portable LMR products to federal, state and municipal public safety agencies, some of which were new customers.
  • For 2025, sales grew approximately 12.5% to approximately $86.1 million, compared with $76.6 million for the prior year.
  • Gross profit margins as a percentage of sales in 2025 were 48.8%, compared with 37.9% for the prior year, generally reflecting product sales mix for the BKR9000 Series radios and the full year impact of efficiencies from the transition of production to East West Manufacturing, LLC and cost reduction efforts in 2024.
  • Selling, general and administrative (“SG&A”) expenses for 2025 totaled approximately $26.0 million (30.2% of sales), compared with $21.2 million (27.7% of sales) last year.
  • We recognized an operating income of approximately $16.0 million in 2025, which was attributed primarily to increased gross margins related to the product mix and transition of production of our radio products to East West Manufacturing, LLC described above.
  • For the year ended December 31, 2024 we recognized an operating profit of approximately $7.8 million.
  • In 2025 we recognized other income, net totaling approximately $0.1 million, primarily attributed to net interest income somewhat offset by other net realized losses.
  • This compares with other expense of $0.5 million last year, which was primarily related to interest expenses and a realized loss from an investment in FG Financial Holdings, LLC (“FG Holdings LLC”).
  • For 2025 the pretax income totaled approximately $16.1 million, compared with a pretax income of approximately $7.4 million for 2024.
  • We recognized a tax expense of $2.6 million in 2025 and a tax benefit of $1.0 million in 2024.
  • The net income for 2025 totaled approximately $13.5 million ($3.69 per basic and $3.44 per diluted share), compared with net income of approximately $8.4 million ($2.35 per basic and $2.25 per diluted share) for 2024.
  • As of December 31, 2025, working capital totaled approximately $37.3 million, of which $30.0 million was comprised of cash, cash equivalents and trade receivables.
  • This compares with working capital totaling approximately $23.0 million at 2024 year-end, which included $14.4 million of cash, cash equivalents and trade receivables.
  • The Company’s guidance reflects our current understanding of the potential impact of tariffs and the current administration’s efforts to reduce federal expenditures, and to the extent it can be calculated, the estimated amount of the impacts are included in current guidance.
  • Results of Operations As an aid to understanding our operating results, the following table shows items from our consolidated statements of operations expressed as a percentage of sales: Percent of Sales for Years Ended December 31, 2025 2024 Sales 100.0 % 100.0 % Cost of products (51.2 ) (62.1 ) Gross margin 48.8 37.9 Selling, general and administrative expenses (30.2 ) (27.7 ) Other income (expense), net 0.1 (0.6 ) Income before income taxes 18.7 9.6 Income tax benefit (expense) (3.0 ) 1.3 Net income 15.7 % 10.9 % Fiscal Year 2025 Compared with Fiscal Year 2024 Sales, net For 2025, net sales increased approximately $9.5 million to approximately $86.1 million, compared with approximately $76.6 million for the prior year.
  • Customer demand and orders for our products were $80.1 million and $84.6 million in 2025 and 2024, respectively.
  • The decrease in orders for the year ended December 31, 2025, was primarily attributed to a decrease in orders to wildland fire customers somewhat offset by an increase in orders for the BKR9000 portable LMR products to federal, state and municipal public safety agencies, some of which were new customers.
  • The BKR Series is envisioned as a comprehensive line of new products, which will include additional models in future years.
  • We believe BKR Series products should increase our addressable market by expanding the number of federal and other public safety customers that may purchase our products.
  • As of the end of 2025, our current backlog of customer orders and the funnel of sales prospects is healthy and includes potential new customers in federal, state, and local public safety agencies.
  • Cost of Products and Gross Profit Margin Gross profit margins as a percentage of sales for 2025 were approximately 48.8%, compared with 37.9% for 2024.
  • Gross profit margins for the year ended December 31, 2025, increased compared with last year primarily due to product sales mix and the full year impact of efficiencies from the transition of production of our radio products to East West Manufacturing LLC, as well as material cost improvements related to cost reduction efforts.
  • We completed the transition of our main manufacturing activities to East West Manufacturing, LLC's facilities during the third quarter of 2024.
  • Worldwide shortages of materials, including semiconductors and integrated circuits, have resulted in limited supplies and extended lead times for certain components used in our products related to ongoing supply chain issues since 2021.
  • SG&A expenses for the year ended December 31, 2025, totaled approximately $26.0 million (30.2% of sales), compared with approximately $21.2 million (27.7% of sales) for the prior year.
  • Engineering and product development expenses for 2025 totaled approximately $10.6 million (12.3% of sales), compared with approximately $7.8 million (10.2% of sales) for the prior year.
  • For 2025, the Company also capitalized approximately $2.1 million of costs related to the development of the all-band BKR9500 mobile radio, compared to $1.3 million in 2024.

and 267 more.

Gone since FY2024

  • In business for over 70 years, BK operates two business units through its operating subsidiary, BK Technologies, Inc.: Radio and SaaS.
  • The Radio business unit designs, manufactures and markets wireless communications products consisting of two-way land mobile radios (“LMRs”).
  • We believe that our products and solutions provide superior value by offering a high specification, ruggedized, durable, reliable, feature rich, P25 compliant radio at a lower cost relative to comparable offerings.
  • The SaaS business unit focuses on delivering innovative, public safety smartphone applications which operate ubiquitously over public cellular networks.
  • Our BKRplay branded smartphone application offers multiple services designed to make the first responder safer and more efficient.
  • When tethered to our radios, the combined solution offers an enhanced user experience with a more unique capability which increases the sales reach of our radios.
  • As we move forward into 2025, we plan to expand the SaaS business unit to include public safety solutions that provide for improved interoperability, intended to make the first responder safer and more efficient when operating in the field.
  • We intend the new Solutions business to build a portfolio of solutions under a new brand, BK ONE.
  • BK ONE will include SaaS solutions such as InteropONE as well as other future software and hardware applications.
  • Customer demand and orders for our products were strong during 2023 and 2024.
  • Supply chain constraints limited our ability to manufacture the quantities needed to convert the orders into shipments and sales revenue in 2022 and were carried in backlog of $27.0 million as of December 31, 2022, that were fulfilled during 2023.
  • The increase in sales for the year ended December 31, 2024, was primarily attributed to sales of the BKR9000 portable LMR products to federal, state and municipal public safety agencies, some of which were new customers.
  • For 2024, sales grew approximately 3.4% to approximately $76.6 million, compared with $74.1 million for the prior year.
  • Gross profit margins as a percentage of sales in 2024 were 37.9%, compared with 30.0% for the prior year, generally reflecting efficiencies from the transition of production to East West Manufacturing, LLC and cost reduction efforts in 2023 and 2024.
  • Selling, general and administrative (“SG&A”) expenses for 2024 totaled approximately $21.2 million (27.7% of sales), compared with $23.0 million (31.1% of sales) last year.
  • We recognized an operating income of approximately $7.8 million in 2024, which was attributed primarily to increased gross margins related to the transition of production of our radio products to East West Manufacturing, LLC.
  • For the year 2023 we recognized an operating loss of approximately $0.8 million.
  • In 2024 we recognized other expenses, net totaling approximately $0.5 million, primarily attributed to net interest expense and net realized losses from our investment in FG Financial Holdings, LLC an entity related to the former Chairman of our Board of Directors.
  • This compares with other expense of $1.4 million last year, which was also primarily related to an unrealized loss from the previous investment in FG Financial Group, Inc. and net interest expense.
  • For 2024 the pretax income totaled approximately $7.4 million, compared with a pretax loss of approximately $2.2 million for the year 2023.
  • We recognized a tax benefit of $1.0 million in 2024 and a tax expense $0.1 million in 2023.
  • The net income for 2024 totaled approximately $8.4 million ($2.35 per basic and $2.25 per diluted share), compared with net loss of approximately $2.2 million ($0.65 per basic and diluted share) for the year 2023.
  • As of December 31, 2024, working capital totaled approximately $23.0 million, of which $14.4 million was comprised of cash, cash equivalents and trade receivables.
  • This compares with working capital totaling approximately $16.8 million at 2023 year-end, which included $11.4 million of cash, cash equivalents and trade receivables.
  • Results of Operations As an aid to understanding our operating results, the following table shows items from our consolidated statements of operations expressed as a percentage of sales: Percent of Sales for Years Ended December 31, 2024 2023 Sales 100.0 % 100.0 % Cost of products (62.1 ) (70.0 ) Gross margin 37.9 30.0 Selling, general and administrative expenses (27.7 ) (31.0 ) Other (expense) income, net (0.6 ) (1.9 ) Income (loss) before income taxes 9.6 (2.9 ) Income tax benefit (expense) 1.3 (0.1 ) Net income (loss) 10.9 % (3.0 )% Fiscal Year 2024 Compared with Fiscal Year 2023 Sales, net For 2024, net sales increased approximately $2.5 million to approximately $76.6 million, compared with approximately $74.1 million for the prior year.
  • Customer demand and orders for our products were $84.6 million and $65.2 million in 2024 and 2023, respectively.
  • The BKR Series is envisioned as a comprehensive line of new products, which will include additional models in coming quarters and years.
  • BKR Series products, we believe, should increase our addressable market by expanding the number of federal and other public safety customers that may purchase our products.
  • As of the end of 2024, our current backlog of customer orders and the funnel of sales prospects is healthy and includes potential new customers in federal, state, and local public safety agencies.
  • The impacts of material shortages, lead-times, labor shortages, wage pressures, high inflation, the ongoing military conflicts in Ukraine and the Middle East and other geopolitical events in coming months and quarters is uncertain.
  • Such effects have adversely impacted and have the potential to adversely affect our future sales, operations, and financial results.
  • Cost of Products and Gross Profit Margin Gross profit margins as a percentage of sales for 2024 were approximately 37.9%, compared with 30.0% for the year 2023.
  • Gross profit margins for the year ended December 31, 2024, increased compared with the same period last year primarily due to efficiencies from the transition of production of our radio products to East West Manufacturing LLC, as well as sales mix and material cost improvements related to cost reduction efforts.
  • We completed the transition of our West Melbourne, Florida manufacturing activities to East West Manufacturing, LLC's facilities during the third quarter of 2024.
  • During the last three years, worldwide shortages of materials, including semiconductors and integrated circuits, have resulted in limited supplies and extended lead times for certain components used in our products.
  • While we have been able to procure the material necessary to manufacture our products and fulfill customer orders, there have been delays, extended lead times and increased costs within our supply chain that improved through fiscal year 2023 and had significantly less impact on our operations for 2024.
  • SG&A expenses for the year ended December 31, 2024, totaled approximately $21.2 million (27.7% of sales), compared with approximately $23.0 million (31.1% of sales) for the prior year.
  • Engineering and product development expenses for 2024 totaled approximately $7.8 million (10.2% of sales), compared with approximately $9.3 million (12.6% of sales) for the prior year.
  • For 2024, the Company also capitalized approximately $1.3 million of costs related to the development of the all-band BKR9500 mobile radio.
  • The precise date for developing and introducing new products is uncertain and can be impacted by, among other things, supply chain shortages and the potential economic effects of the conflicts in Ukraine and the Middle East in coming quarters.

and 241 more.

Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2024 ↗, FY2025 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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