BK Technologies Announces Fourth Quarter and Full Year 2024 Results

BK Technologies Corporation (NYSE American: BKTI) (the “Company,” “BK Technologies”) today announced financial and operating results for the fourth quarter and full year ended December 31, 2024. The Company will host a conference call today, March 27, 2025, at 9:00 a.m. Eastern Time.

Fourth Quarter and Full Year 2024 Financial and Operational Update

• Fourth quarter revenue of $17.9 million increased 9.9% compared to $16.3 million in the fourth quarter of 2023; Full year 2024 revenue of $76.6 million.
• Fourth quarter gross margin of 41.2% improved as compared to gross margin of 35.1% in the same period last year and improved sequentially as compared to gross margin of 38.8% in the third quarter of 2024; Full year gross margin of 37.9% compared to gross margin of 30.0% in full year 2023.
• Fourth quarter GAAP earnings of $1.03 per basic and $0.93 per diluted share; non-GAAP adjusted earnings1 of $0.67 per basic and $0.61 per diluted share.
• Full year 2024 GAAP earnings of $2.25 per diluted share exceeded full year 2024 target of $1.65 per share; Full year non-GAAP adjusted earnings of $2.30 per diluted share1 exceeded target of $1.92 per share.
• Fourth quarter and full year 2024 GAAP earnings per share include a one-time, non-cash income tax benefit of $0.37 and $0.27, respectively, related to deferred tax asset provisions.
• Order backlog was $21.8 million at December 31, 2024 compared to $16.0 million at December 31, 2023.

1 Represents a non-GAAP financial measure. Refer to the section entitled “Use of Non-GAAP Financial Measures” and Reconciliation to GAAP later in this press release.

 John Suzuki, CEO of BK Technologies, commented,

“We achieved exceptional execution in the fourth quarter of 2024 highlighted by revenue growth, continued margin expansion, and increased profitability that substantially exceeded our expectations. Order activity for the BKR 9000 saw momentum throughout the year with considerable interest from state and local agencies seeking the radio’s multiband capabilities and superior reliability at a price point they can afford. We’re expanding our offerings beyond our traditional wildland fire market, with the introduction of new software and products in 2025 that we believe will significantly enhance first responder safety and capabilities in the field. To better represent our offerings, earlier this month we announced the establishment of our Solutions business unit, which expands our former SaaS solutions unit to now include SaaS, software applications and certain hardware offerings under the BK ONE brand name.”

Mr. Suzuki concluded, “As we begin to move through 2025, we’re strategically investing in sales and marketing to further accelerate BKR 9000 adoption and building out our engineering capabilities to strengthen our expertise and depth in the software space. With our visibility today, we believe we are positioned to achieve full year single digit revenue growth and gross margins of 42% or higher. From a profitability perspective, we expect full year 2025 GAAP EPS to exceed $2.40 per diluted share, and full year 2025 non-GAAP adjusted EPS to exceed $2.80 per diluted share. We delivered solid growth and progress in 2024 and look forward to carrying this positive momentum into the 2025 fiscal year.”

Fourth Quarter 2024 Financial Review
Revenue of $17.9 million increased 9.9% compared to revenue of $16.3 million in the fourth quarter of 2023.

Gross margin of 41.2% improved as compared to gross margin of 35.1% in the same period last year and improved sequentially as compared to gross margin of 38.8% in the third quarter of 2024.

Selling, General & Administrative expenses totaled $5.2 million, compared with $5.3 million for the fourth quarter of 2023.

Operating income totaled $2.2 million compared with operating income of $400,000 in the fourth quarter of last year.

BK Technologies recorded net income of $3.7 million or $1.03 per basic and $0.93 per diluted share, compared with net income of $290,000 or $0.08 per basic and diluted share, for the fourth quarter of 2023. The Company reported non-GAAP adjusted earnings1 of $2.4 million or $0.67 per basic and $0.61 per diluted share compared to non-GAAP adjusted earnings1 of $704,000 or $0.20 per basic and diluted share for the fourth quarter of 2023. Fourth quarter 2024 GAAP earnings include a one-time, non-cash income tax benefit of $0.37 per share related to deferred tax asset provisions. The Company’s management evaluated and concluded that it has the ability to generate sufficient taxable income in 2024 and future periods to remove the Net Operating Loss (NOL) valuation allowance of $3.6 million, adjusted for other tax provision allowances, as of December 31, 2024.

Non-GAAP adjusted EBITDA1 for the fourth quarter of 2024 was $2.8 million, compared with non-GAAP adjusted EBITDA1 of $1.3 million in the fourth quarter of 2023.

Working capital totaled approximately $23.0 million at December 31, 2024, of which $14.4 million was comprised of cash, cash equivalents and trade receivables. This compares with working capital at December 31, 2023 of approximately $16.8 million, of which $11.4 million was comprised of cash, cash equivalents and trade receivables.

Full Year 2024 Financial Review
Revenue increased to $76.6 million, compared with $74.1 million in full year 2023. Gross profit margin was 37.9% compared to 30.0% in full year 2023.

Selling, General & Administrative expenses decreased to $21.2 million, compared with $23.0 million in full year 2023.

Operating income totaled $7.8 million compared with operating loss of ($777,000) in full year 2023.

1 Represents a non-GAAP financial measure. Refer to the section entitled “Use of Non-GAAP Financial Measures” and Reconciliation to GAAP later in this press release.

BK Technologies recorded net income of $8.4 million or $2.35 per basic and $2.25 per diluted share in 2024, compared with a net loss of ($2.2 million) or ($0.65) per basic and diluted share, in full year 2023. Full year 2024 GAAP earnings include a one-time, non-cash income tax benefit of $0.27 per share related to deferred tax asset provisions.

The Company reported non-GAAP adjusted earnings1 of $8.5 million or $2.40 per basic and $2.30 per diluted share in full year 2024 compared to non-GAAP adjusted earnings1 of $3,000 or $0.00 per basic and diluted share for the full year 2023.

Non-GAAP adjusted EBITDA1 for the full year 2024 was $10.4 million, compared with non-GAAP adjusted EBITDA1 of $1.5 million in full year 2023.