Core Insights - BK Technologies Corporation (BKTI) has experienced a significant stock price increase of 33.9% since its earnings report for the quarter ended December 31, 2024, outperforming the S&P 500 Index, which declined by 1.9% during the same period [1] Financial Performance - For Q4 2024, BK Technologies reported revenues of $17.9 million, a 9.9% increase from $16.3 million in the same quarter last year [2] - The diluted GAAP earnings per share (EPS) surged to $0.93 from $0.08, aided by a one-time, non-cash income tax benefit of $0.37 [2] - Non-GAAP adjusted diluted EPS rose to $0.61 from $0.20, marking a 205% year-over-year increase [2] - Full-year revenues reached $76.6 million, up 3.4% from $74.1 million in 2023 [3] - Full-year diluted GAAP EPS was $2.25 compared to a loss of $0.65 in the previous year, while non-GAAP adjusted EPS increased to $2.30 from break-even in 2023 [3] - Operating income for Q4 rose to $2.2 million from $0.4 million in the prior-year quarter, with full-year operating income at $7.8 million against an operating loss of $0.8 million in the previous year [3] Margins and Operational Metrics - Gross margins improved to 41.2% in Q4 from 35.1%, with a full-year gross margin of 37.9% compared to 30% in 2023 [4] - Non-GAAP adjusted EBITDA for Q4 was $2.8 million, up 116.9% from $1.3 million a year ago, while full-year adjusted EBITDA rose to $10.4 million from $1.5 million [5] - SG&A expenses for Q4 were $5.2 million, down 3% from $5.3 million in the same period last year [5] - The company ended 2024 with a backlog of $21.8 million, up from $16 million at the end of 2023, indicating strong future demand [5] Balance Sheet and Working Capital - Working capital improved to $23 million from $16.8 million a year earlier, with a strengthened balance sheet showing $7.1 million in cash and no long-term debt [6] - Shareholders' equity increased to $29.8 million from $21.3 million at the end of 2023 [6] Management Commentary - CEO John Suzuki highlighted Q4 as a period of exceptional execution, with revenue growth, margin expansion, and profitability exceeding expectations [7] - The success was attributed to strong market adoption of the BKR 9000 multiband radio, expanding sales beyond traditional segments [7] - Management noted a decrease in revenue expected from federal agencies, projecting only 35% of 2025 revenue from this source, down from 49% in 2023, indicating broader market penetration [7] Pricing and Future Outlook - The company implemented price increases of 5–10% on radios and accessories in early 2025, which are expected to be margin-accretive [8] - For fiscal 2025, BKTI targets single-digit revenue growth with gross margins of at least 42% and expects GAAP diluted EPS to exceed $2.40 and non-GAAP adjusted EPS to surpass $2.80 [11] New Developments - In March 2025, BK Technologies announced the rebranding and expansion of its SaaS business under the BK ONE Solutions unit, which includes new offerings aimed at enhancing first-responder communications [12] - Development is underway for the BKR 9500 mobile radio, expected to enter the market in 2027 [13]
BK Technologies Stock Jumps After Strong Q4 Earnings and Outlook