BK Technologies(BKTI) - 2025 Q3 - Quarterly Results

Revenue and Sales Performance - Third quarter 2025 revenue increased by 21% to $24.4 million compared to $20.2 million in the third quarter of 2024[6] - Net sales for the three months ended September 30, 2025, increased to $24,411 million, up 21.5% from $20,179 million in the same period last year[26] Profitability and Earnings - Net income for Q3 2025 rose 46% to $3.4 million, or $0.87 per diluted share, compared to $2.4 million, or $0.63 per diluted share, in Q3 2024[8] - Non-GAAP adjusted earnings for Q3 2025 were $5.0 million, or $1.27 per diluted share, compared to $2.7 million, or $0.71 per diluted share, in Q3 2024[9] - Operating income for Q3 2025 was $4.8 million, compared to $2.6 million in Q3 2024[8] - Basic earnings per share for the three months ended September 30, 2025, were $0.93, compared to $0.67 for the same period in 2024, an increase of 38.8%[26] Margins and EBITDA - Gross margin for Q3 2025 was 49.9%, up from 38.8% in Q3 2024, primarily due to the product mix with the BKR 9000 gaining traction[6] - Non-GAAP adjusted EBITDA for Q3 2025 was $5.3 million, compared to $3.1 million in Q3 2024[10] - Adjusted EBITDA for the three months ended September 30, 2025, was $5,252 million, up from $3,109 million in the same period last year, reflecting a 68.9% increase[30] Cash and Working Capital - The company ended Q3 2025 with a record cash balance of $21.5 million and no debt[5] - Working capital at September 30, 2025, was approximately $33.8 million, compared to $23.0 million at December 31, 2024[10] - Cash and cash equivalents as of September 30, 2025, were $21,471 million, significantly higher than $7,075 million at the end of 2024, indicating a 202.5% increase[28] Assets and Liabilities - Total current assets as of September 30, 2025, increased to $51,748 million, compared to $36,941 million as of December 31, 2024, marking a growth of 39.9%[28] - Total liabilities as of September 30, 2025, were $25,914 million, up from $21,668 million as of December 31, 2024, representing a 19.5% increase[28] Guidance and Future Outlook - For the full year 2025, the company is reiterating guidance of high single-digit revenue growth, gross margin of 47%+, GAAP EPS of $3.15, and non-GAAP adjusted EPS of $3.80[3] Development Costs and Shares - The company reported a significant increase in capitalized product development costs, rising to $2,837 million as of September 30, 2025, from $1,321 million at the end of 2024[28] - The weighted average common shares outstanding, basic, increased to 3,708,717 for the three months ended September 30, 2025, compared to 3,539,841 in the same period last year[30] Expenses - Selling, General & Administrative expenses for Q3 2025 totaled $7.3 million, up from $5.2 million in Q3 2024[7]