BK Technologies Corporation (BKTI): Business Model Canvas [Dec-2025 Updated]

You're looking past the noise to figure out the real engine behind BK Technologies Corporation, and honestly, it's a classic story of a durable hardware specialist trying to pivot. As an analyst who's mapped these critical communications markets for years, I see a business model built on selling mission-critical LMR radios-where the high-end BKR 9000 is delivering a fantastic 49.9% gross margin-primarily to federal buyers, all while sitting on a healthy $21.5 million cash pile as of Q3 2025. The key tension here, which we break down below, is how they balance that proven hardware revenue, expected to land near $83.5 million for the year, with the necessary investment to scale their emerging, high-potential Software-as-a-Service unit. Keep reading to see the full nine-block canvas that shows exactly where their money is going and how they plan to keep those margins strong.

BK Technologies Corporation (BKTI) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that allow BK Technologies Corporation to operate its asset-light model, especially as it scales profitably in the public safety communications space. These partnerships are crucial for cost control, market access, and technology advancement.

Outsourced manufacturing to EastWest Manufacturing for cost savings

BK Technologies Corporation moved to an asset-light model by making East West Manufacturing, LLC the exclusive manufacturer of its radio product line. This transition, which began in early 2024, was designed to simplify the supply chain and reduce production costs. The financial benefit is clear in the margin expansion seen throughout 2025. For instance, the gross margin reached 47.0% in the first quarter of 2025, up from 34.5% in the first quarter of 2024, with the manufacturing transition cited as a key factor. This trend continued, with the second quarter 2025 gross margin hitting 47.4%, up from 37.3% the prior year. By the third quarter of 2025, the gross margin further expanded to 49.9%. East West Manufacturing's facility in Juárez, Mexico, helps by offering lower labor costs and reduced tariffs, which supports the company's ability to maintain "Buy America" requirements for federal sales.

Strategic alliances with distributors and dealers for product reach

BK Technologies Corporation relies on its network to distribute its high-specification communications equipment worldwide under the BK Radio® brand name. While specific revenue attribution to distributors isn't public, the overall success in 2025 shows strong market acceptance. The company's third-quarter 2025 revenue reached $24.4 million, a 20.9% year-over-year increase, indicating effective product reach. The company has over 1,000 customers globally.

Here's a look at the financial impact of the operational model, heavily influenced by these key partnerships:

Metric	Q1 2025 Value	Q2 2025 Value	Q3 2025 Value	Partner Influence
Revenue	$19.1 million	$21.2 million	$24.4 million	Federal procurement channel strength
Gross Margin	47.0%	47.4%	49.9%	Outsourced manufacturing cost savings
Cash and Equivalents (End of Period)	$19.1 million (part of working capital)	$11.9 million (as of Q2 end)	$21.5 million (as of Sept 30, 2025)	Strong cash generation from asset-light model

Technology partners for P25 standard compliance and future broadband integration

BK Technologies Corporation's products are compliant with APCO Project 25 (P25) specifications, which is a requirement for many of its government and public safety customers. The company develops its own software solutions to integrate with this hardware standard. For broadband integration, BK Technologies developed InteropONE, its Push To Talk over Broadband (PTToC) solution. This software tethers BKR 5000 and BKR 9000 radios to Apple or Android smartphones, allowing P25 users to communicate over cellular or WiFi connections. This capability was successfully trialed and resulted in a purchase order from a state forestry agency following Hurricane Helene relief efforts. The company continues to invest in R&D to deepen these software capabilities.

Federal government procurement channels for large-volume orders

Federal agencies represent a significant revenue stream, with strong federal order activity driving the company's financial results in 2025. The third quarter of 2025 saw revenue growth of 20.9%, largely attributed to federal orders. A concrete example of this channel's impact is the purchase order secured from the USDA Forest Service for $12.9 million following the second quarter. The company's operating income for Q3 2025 climbed to $4.8 million, up 85.6% from $2.6 million the prior year, demonstrating the profitability of these large-volume sales. The company maintains a debt-free balance sheet, reporting no debt as of September 30, 2025, supported by this strong cash flow from government procurement.

• Federal order activity drove Q3 2025 revenue to $24.4 million.
• The company's full-year 2025 guidance includes a gross margin target of over 47%.
• As of September 30, 2025, cash and cash equivalents stood at $21.5 million.

Finance: review the Q4 2025 revenue pipeline against the 2026 revenue growth projection of 9% to 11% by next Tuesday.

BK Technologies Corporation (BKTI) - Canvas Business Model: Key Activities

Research and development (R&D) for next-gen LMR and software (e.g., BKR 9500).

BK Technologies Corporation is actively investing in engineering and product development to support long-term growth. For the second quarter of 2025, engineering and product development expenses reached $2.3 million, representing 10.9% of sales, which was an increase from approximately $2 million or 9.8% of sales in the second quarter of fiscal year 2024. This specific rise is mainly due to non-capitalizable development costs associated with the BKR next-generation multiband mobile radio, the BKR 9500. The BKR 9500 is currently on track to begin generating revenue in 2027. The company is also building out engineering capabilities to strengthen its software offerings.

• Engineering and development expenses in 2022 were approximately $9.6 million.
• Trademark applications are pending for software products including InteropONE and BKRplay.

Manufacturing oversight and quality control for the BKR radio series.

A key activity involves overseeing manufacturing quality while operating an asset-light model. The company has realized cost savings directly linked to the outsourcing of production to its partner, East West Manufacturing. This successful transition to a contract manufacturing model has been a factor in the significant gross margin expansion seen throughout 2025.

Sales and marketing focused on federal and public safety contracts.

Sales and marketing efforts are heavily concentrated on securing and fulfilling large public safety and federal contracts, which are major revenue drivers. The company reported revenue of $21.2 million for the second quarter of 2025, a 4.5% increase year-over-year, and revenue of $24.4 million for the third quarter of 2025, a 21.0% increase year-over-year. For the first six months of 2025, revenue totaled $40.2 million, up 4.5% compared to the first six months of 2024. Federal order activity surged, exemplified by multiple purchase orders from the USDA Forest Service totaling $12.9 million reported after Q2 2025, and another $12.9 million in Q3 2025. Total federal, state, and local orders received in July 2025 amounted to $17.8 million. Investments in these areas are reflected in operating expenses. Selling, General & Administrative expenses for the second quarter of 2025 were $6.0 million, up from $5.5 million in the second quarter of 2024. For the first six months of 2025, SG&A expenses were $12.1 million, compared to $10.8 million in the prior year period.

Here's a look at the operational performance supporting these sales activities:

Metric	Q2 2025 Amount	Q3 2025 Amount	Year-to-Date (6M) 2025 Amount
Revenue	$21.2 million	$24.4 million	$40.2 million
Gross Margin	47.4%	49.9%	47.2%
Operating Income	$4.0 million	$4.845 million	$6.9 million
GAAP Net Income	$3.7 million	$3.4 million	$5.9 million

Software development for the SaaS unit (e.g., InteropONE, BKRplay).

The SaaS business unit focuses on developing smartphone applications to enhance first responder safety and efficiency. The BKRplay application is designed to work tethered to the company's BKR radios, amplifying user capabilities. As of the second quarter 2025 call, the InteropONE tethering feature was reported as still in development. The company is making investments in engineering to strengthen this software expertise.

• The company has applied for U.S. trademark registration for BKRplay and InteropONE.

Finance: draft 13-week cash view by Friday.

BK Technologies Corporation (BKTI) - Canvas Business Model: Key Resources

You're looking at the core assets that let BK Technologies Corporation actually do business, the stuff they own or control that competitors can't easily copy. For BK Technologies Corporation, these resources are heavily weighted toward specialized, regulated technology and a solid financial foundation built on recent performance.

The company's technology backbone is centered on its expertise in Land Mobile Radio (LMR) systems. This isn't just any radio; it's specialized gear for critical communications. BK Technologies Corporation offers two-way LMRs, both portable and mobile, designed to operate in the P25 digital and analog modes. This P25 compliance is a key resource because it meets the strict standards required for government and public safety communications.

The strength of their intellectual property (IP) is demonstrated through their product portfolio. They market the KNG Series and BKR Series radios, which are central to their offering for government, public safety, military, and state/municipal agencies. Furthermore, their IP extends into software solutions with InteropONE, which is a push-to-talk-over-cellular (PTTOC) SaaS service designed to help incident commanders establish group PTTOC between smartphone users. The success of their newer hardware, like the BKR 9000 multiband radio, which commands a premium price point, also speaks to the value of their ongoing R&D efforts.

The financial health of BK Technologies Corporation provides a strong platform for sustaining and growing these technical resources. As of the end of the third quarter of 2025, the balance sheet strength is notable:

Financial Metric	Amount as of Q3 2025 (September 30, 2025)
Cash and Cash Equivalents	$21.5 million
Total Debt	$0 (Debt-free)
Working Capital	$33.8 million
Shareholders' Equity	Approximately $40.9 million to $41.0 million
Q3 2025 Gross Margin	49.9%

This cash position, combined with zero debt, offers significant flexibility for capital deployment, whether for new product innovation, strategic partnerships, or technology investments. The improved gross margin of 49.9% in Q3 2025, up from 38.8% in Q3 2024, reflects the success of product mix shifts, such as the BKR 9000, which is a direct result of their R&D and manufacturing strategy.

While specific durability statistics aren't listed, the established brand reputation for reliability in harsh conditions is implied by the focus on public safety and federal agencies, like the USDA Forest Service, which places large orders. The company's ability to secure multiple purchase orders totaling $12.9 million from the USDA Forest Service in Q2 2025 underscores the trust placed in their equipment for demanding operational environments.

The core tangible and intangible assets supporting BK Technologies Corporation include:

• Proprietary LMR technology and P25 compliance expertise.
• $21.5 million in cash and no debt as of Q3 2025.
• Intellectual property covering hardware (KNG/BKR Series) and software (InteropONE SaaS).
• Brand equity built on serving public safety and government sectors.

Finance: draft 13-week cash view by Friday.

BK Technologies Corporation (BKTI) - Canvas Business Model: Value Propositions

You're looking at the core reasons why public safety and government agencies choose BK Technologies Corporation (BKTI) products over others. It's not just about the box; it's about what that box does reliably when things get tough.

Mission-critical, durable two-way radios for harsh environments

BK Technologies Corporation (BKTI) focuses on providing two-way land mobile radios (LMR) and mobile radios built for demanding use cases. These devices are designed to withstand harsh conditions where failure isn't an option for first responders and government users.

The market validation for this durability and reliability is clear in the order book. For instance, in the third quarter of 2025, BK Technologies Corporation (BKTI) saw strong federal order activity, which included multiple purchase orders totaling $12.9 million specifically from the USDA Forest Service. Furthermore, agencies like the California Department of Forestry and Fire Protection (CAL FIRE) and the U.S. Department of Agriculture Forest Service (USFS) have migrated over 6,500 and 22,000 units, respectively, to the BKR 5000 model since 2022, citing durability as a key factor. The BKR 9000 multiband radio is a current flagship product that commands a premium price point, suggesting customers recognize its high-specification build.

Superior value and lower cost compared to high-end competitors

The company positions its offering as delivering superior value, which often translates to a lower total cost of ownership compared to some high-end competitors, while still achieving strong financial performance. This value proposition is clearly reflected in the margin expansion BK Technologies Corporation (BKTI) has demonstrated.

Here's a quick look at how the financials supported this value proposition through the third quarter of 2025:

Metric	Q3 2024 Result	Q3 2025 Result	Change
Revenue	$20.2 million	$24.4 million	21.0% increase
Gross Margin	38.8%	49.9%	11.1 percentage point expansion
Operating Income	$2.611 million	$4.845 million	85.6% increase
GAAP Diluted EPS	$0.63	$0.87	38.1% increase

The full-year 2025 gross margin target remains at 47%+, and with year-to-date gross margin already at 48.2% as of September 30, 2025, management expresses confidence in meeting or exceeding that goal. This margin improvement is partly attributed to a richer product mix, specifically the traction of the higher-margin BKR 9000 multiband radio.

Interoperability via P25 digital and analog standards

A core technical value is ensuring that different agencies can communicate seamlessly, which is addressed through adherence to industry standards. BK Technologies Corporation (BKTI)'s LMR systems operate across the Project 25 (P25) standard, supporting both digital and analog modes.

The commitment to interoperability extends into their software solutions, which are designed to bridge communication gaps:

• InteropONE: Push To Talk over Broadband solution.
• Enables operational interoperability via on demand user group creation.
• Successfully trialed during Hurricane Helene relief efforts using Radio over IP (RoIP) gateways.
• RelayONE: Rapid deployment portable repeater kit.

Evolving communications platform with smartphone app integration (BKRplay)

BK Technologies Corporation (BKTI) is moving beyond just hardware sales by deepening its software expertise and integrating mobile technology. This evolution is key to future value delivery.

The company is actively investing in R&D to strengthen its software capabilities. The BKRplay application is a specific example of this evolution, tethered to BK radios to amplify user capabilities and expand the reach of the radio sales ecosystem. This platform approach, combining hardware with SaaS-based solutions, is part of the strategy to enhance interoperability and secure recurring revenue streams.

Finance: draft 13-week cash view by Friday.

BK Technologies Corporation (BKTI) - Canvas Business Model: Customer Relationships

BK Technologies Corporation's customer relationships are deeply rooted in serving mission-critical needs, which dictates a high-touch, relationship-driven approach across its segments.

Dedicated contract management for large federal and state accounts.

The relationship with large federal entities is evidenced by significant, recent contract wins. For instance, in July 2025, BK Technologies Corporation secured multiple purchase orders totaling $12.9 million from the United States Department of Agriculture Forest Service (USFS) for BKR 5000 radios, part of their life cycle replacement program. The total federal, state, and local orders in July 2025 reached $17.8 million. This level of procurement suggests dedicated account management is essential to navigate federal timelines and requirements, such as the 180-day performance period for the USFS orders.

• Federal, state, and municipal government agencies are primary customers.
• The BKR 5000 radio is standardized by the National Interagency Incident Communications Division (NIICD).
• The company is focused on capturing more federal and public safety contracts.

Direct sales and technical support for public safety agencies.

Direct engagement is key for public safety customers who require P25 digital and analog Land Mobile Radio (LMR) equipment. These agencies prioritize reliability and adherence to standards over low cost. The company supports these users with field-proven technology like the BKR 5000 handheld portable radio, which is designed for demanding conditions, such as remote wildfire operations. The company also offers the InteropONE push-to-talk-over-cellular (PTTOC) SaaS service to help emergency incident commanders establish group PTTOC between smartphone users.

Dealer network support for local government and commercial sales.

While federal sales are prominent, BK Technologies Corporation also serves state and local government agencies, as well as various industrial and commercial enterprises, through a network of two-way communications dealers. This channel supports sales of KNG Series and BKR Series radios. The company has provided dealer portals to support these partners with tasks like radio programming.

High-touch, consultative sales process for complex LMR systems.

The introduction of next-generation products, like the BKR 9000 Multi-Band Portable Radio, necessitates a consultative approach. This complex, premium product is helping to shift the product mix, which is reflected in the financial performance. The company's focus on customer-centric development, where customers helped design the BKR 9000 from the whiteboard, underpins this high-touch sales strategy. This approach is translating directly into profitability, with the Gross Margin reaching 49.9% in the third quarter of 2025, up significantly from 38.8% in the third quarter of 2024. Management expects to ship between 2x and 3x more BKR 9000 units in 2025 versus 2024.

The success of these customer relationships in 2025 is evident in the following financial outcomes:

Metric	Value (As of Q3 2025 or Latest Reported)	Context
Q3 2025 Revenue	$24.4 million	Reflecting strong order activity.
Q3 2025 Gross Margin	49.9%	Driven by higher-margin BKR 9000 sales.
Cash and Cash Equivalents	$21.5 million	As of September 30, 2025, with no debt.
Full-Year 2025 GAAP EPS Target	$3.15 per diluted share	Raised guidance due to strong performance.
Total Federal/State/Local Orders (July 2025)	$17.8 million	Demonstrates success in government contracting.

The company's non-GAAP adjusted EBITDA for Q3 2025 was $7.7 million, a significant increase from $4.1 million in Q3 2024, showing that strong customer relationships are driving operational leverage.

BK Technologies Corporation (BKTI) - Canvas Business Model: Channels

You're looking at how BK Technologies Corporation delivers its mission-critical communication equipment to the end-user, which is heavily weighted toward government entities as of late 2025. The channel strategy clearly prioritizes large, direct sales while supporting local needs through established partners.

Direct sales team for major federal and state government contracts.

This channel is clearly the primary driver for large revenue spikes. The direct sales efforts secured multiple purchase orders from the USDA Forest Service in July 2025 alone, totaling $12.9 million for BKR 5000 radios. Overall federal, state, and local orders in July 2025 reached $17.8 million. This focus on large government procurement is key to their financial results; for instance, Q3 2025 revenue hit $24.4 million, up 21.0% year-over-year, with federal order activity cited as a primary driver. Year-to-date 2025 revenue growth stood at 10.2% compared to the same period in 2024.

The financial impact of these high-value contracts is evident in the margin expansion, which is a direct benefit of the asset-light model supporting this channel:

Metric	Q3 2025 Value	Q3 2024 Value	Q1 2025 Value
Revenue	$24.4 million	$20.18 million (Implied)	$19.1 million
Gross Margin	49.9%	38.8%	47.0%
Operating Income	$4.845 million	$2.611 million	$2.9 million

Authorized dealer and distributor network for local sales and service.

BK Technologies Corporation supports local and regional sales, particularly for non-federal public safety and industrial users, through its network of authorized dealers and distributors. This network is essential for servicing the base of customers outside of the major federal contracts. The company's President has over 30 years of experience marketing and selling to State and local government, which supports this channel. While a current count for late 2025 is not public, the structure has historically included numerous partners across the US, such as the list of approved dealers from 2021.

Local sales and service are supported by the company's commitment to providing service revenue through maintenance and repair contracts, such as the one previously held with the USDA Forest Service.

Online presence for product information and investor relations.

The digital channel serves as the primary hub for corporate transparency and product specification dissemination. You can find the latest investor presentation and Q3 2025 results press release dated November 6, 2025, on the BK Technologies Investor Relations website. The company's stock trades on the NYSE American under the ticker BKTI. As of May 8, 2025, there were 3,673,594 shares issued and outstanding. The company maintains a direct line for contact at 1-800-821-2900. The online presence also supports the broader market view, where the Total Addressable Market is estimated at $2.9 billion.

Direct fulfillment from the outsourced manufacturing partner.

The fulfillment process is directly linked to the strategic shift to an asset-light production model. BK Technologies Corporation transitioned manufacturing to East West Manufacturing in Mexico. This move has been instrumental in achieving the record gross margins seen in 2025, such as the 49.9% in Q3 2025. A key benefit of this channel partner is that products produced there remained tariff-free under the USMCA agreement as of Q1 2025. The USDA Forest Service orders received in July 2025 were expected to be fulfilled within a 180-day performance period.

• The manufacturing transition contributed to the full-year 2025 gross margin target being raised to 47% or higher.
• The Q2 2025 revenue of $21.2 million showed an 11.1% sequential increase compared to Q1 2025 revenue of $19.1 million, reflecting efficient flow-through from manufacturing to sales.

BK Technologies Corporation (BKTI) - Canvas Business Model: Customer Segments

You're looking at the core groups that drive revenue for BK Technologies Corporation. These aren't just names on a list; they are entities that depend on high-reliability, American-made communications equipment for critical operations.

Federal Government agencies represent a significant and growing segment, validated by major recent contract activity. In July 2025, BK Technologies Corporation secured multiple purchase orders totaling $12.9 million from the United States Department of Agriculture Forest Service (USFS) for its BKR 5000 radios. This specific order featured the largest single purchase of the BKR 5000 since its debut. The USFS, which administers the nation's 154 national forests and 20 national grasslands covering 193 million acres, expects fulfillment within a 180-day performance period. This federal activity was a key driver in the company's Q3 2025 revenue of $24.4 million, a 21% increase year-over-year. Furthermore, federal agencies like The Bureau of Land Management and the National Park Service are also engaged in similar lifecycle replacement programs.

The backbone of the business remains State and Local Public Safety, including fire, law enforcement, and first responders. These groups rely on the Project 25 (P25) standard for digital and analog modes in their Land Mobile Radio (LMR) systems. State agencies, such as the California Department of Forestry and Fire Protection and the Washington Department of Natural Resources, are actively upgrading to the BKR Series radios as part of their replacement programs.

For Commercial and Industrial enterprises requiring rugged communications, BK Technologies Corporation offers high-specification, durable two-way handheld wireless radios and mobile radios designed to withstand harsh conditions. The company believes its products offer a superior value proposition due to their high performance and reliability at a lower cost than competitors.

The Military and Utility sectors also form a core part of the customer base, needing dependable communications equipment. The BKR 9000 multiband radio, which commands a premium price point, is gaining market recognition and management expects to ship between 2x and 3x the amount of BKR 9000 units in 2025 as they did in 2024, supporting margin expansion across all segments.

Here's a quick look at the key customer segment indicators and recent financial performance:

Customer Segment	Key Activity/Product	Recent Financial/Statistical Metric
Federal Government (e.g., USFS)	BKR 5000 Radio Purchase Orders	$12.9 million in orders secured in July 2025
State & Local Public Safety	P25 Standard LMR Systems	State agencies like CA Dept. of Forestry and Fire Protection upgrading to BKR Series
Commercial & Industrial	High-Specification 2-Way Radios	Products offer reliability at a lower cost than competition
Military & Utility	BKR 9000 Multiband Radio	Expected shipment volume in 2025 is 2x to 3x that of 2024
Overall Company Performance (Q3 2025)	Total Revenue	$24.4 million, a 21% increase year-over-year

You can see the direct impact of these government contracts on the balance sheet; BK Technologies Corporation ended Q3 2025 with a record cash balance of $21.5 million and a debt-free balance sheet.

The company's customer base is heavily weighted toward mission-critical users, which is why their product reliability is so important. You'll want to track the fulfillment rate of that $12.9 million USFS order over the next 180 days.

• Rugged, high-specification equipment is the core offering.
• Project 25 (P25) compliance is a requirement for many.
• Federal procurement is showing real momentum.
• The BKR 9000 is driving margin improvement.

Finance: draft 13-week cash view by Friday.

BK Technologies Corporation (BKTI) - Canvas Business Model: Cost Structure

Cost of Goods Sold (COGS) is inherently variable, directly tied to the volume of radio units shipped. The company minimizes this cost component through its outsourced manufacturing model, which avoids significant fixed capital investment in production facilities. This asset-light approach is reflected in the strong gross margin performance, with Q3 2025 reaching 49.9%, up from 38.8% in Q3 2024. Year-to-date through Q3 2025, the gross margin stood at 48.2%.

You see a significant investment in Selling, General, and Administrative (SG&A) expenses, which hit $7.3 million in Q3 2025, a notable increase from $5.2 million in the same quarter last year. This rise reflects the company's strategy to scale its market presence and product development efforts. To be fair, this $7.3 million includes non-cash stock compensation expense of approximately $600,000 for the quarter.

The SG&A increase specifically covers R&D spending for new product prototypes and software development. Management noted continued investment in engineering, sales, and marketing as drivers for this expense growth. The R&D focus is clearly on future products, such as pushing prototypes of the new BKR 9500 mobile unit and building engineering capabilities to strengthen software expertise.

Fixed costs are embedded within the SG&A structure, primarily related to the engineering staff salaries and corporate overhead necessary to support the product pipeline and operations. The asset-light model shifts the manufacturing fixed costs to a variable COGS structure, but the core team requires consistent funding.

Here's a quick look at the key expense and margin metrics for the third quarter of 2025:

Metric	Amount / Rate (Q3 2025)	Comparison Point
Selling, General, and Administrative (SG&A) Expenses	$7.3 million	Up from $5.2 million in Q3 2024
Non-Cash Stock Compensation (within SG&A)	Approximately $0.6 million	Included in the $7.3 million total
Gross Profit Margin	49.9%	Compared to 38.8% in Q3 2024
Operating Income	$4.8 million	Up from $2.6 million in Q3 2024
Operating Margin	19.8%	Compared to 12.9% in Q3 2024

The allocation of spending within the operating expenses highlights the strategic cost drivers:

• Variable Cost Driver: Direct material and production costs, minimized by outsourcing.
• Fixed/Strategic Cost Driver: Continued investment in sales and marketing to drive BKR 9000 adoption.
• R&D Investment: Funding engineering capabilities for software and new hardware like the BKR 9500.
• Corporate Overhead: Essential fixed costs supporting the debt-free corporate structure.

The company is reiterating its full-year 2025 target for gross margin to be at least 47%+, which they are on track to exceed based on year-to-date performance. Finance: draft 13-week cash view by Friday.

BK Technologies Corporation (BKTI) - Canvas Business Model: Revenue Streams

The revenue streams for BK Technologies Corporation (BKTI) are fundamentally tied to the sale of its Land Mobile Radio (LMR) hardware, supplemented by recurring service revenue and developing software offerings. You see the immediate impact of product mix in the latest quarterly results.

The core hardware sales include the BKR 5000 and the premium BKR 9000 multiband radio. The focus on the latter is clearly driving financial performance. High-margin sales from the BKR 9000 multiband radio are a key driver, pushing the Q3 2025 gross margin to an impressive 49.9%. This compares favorably to the Q3 2024 gross margin of 38.8%. Management indicated that BK Technologies Corp (BKTI) is on pace to deliver between 2x and 3x the amount of BKR 9000 multiband radios in 2025 as they did in 2024.

For the third quarter of 2025 specifically, total revenue reached $24.4 million, a 21% increase year-over-year from $20.2 million in Q3 2024. A significant portion of this was federal business, highlighted by multiple purchase orders from the USDA Forest Service totaling $12.9 million in Q3 2025.

The revenue streams can be broken down as follows:

• Sales of Land Mobile Radio (LMR) hardware, including the BKR 9000.
• Service and maintenance contracts for installed radio systems.
• Emerging revenue from Software-as-a-Service (SaaS) applications, such as the developing InteropONE push-to-talk technology.

Looking at the full-year 2025 expectations, BK Technologies Corporation (BKTI) is reiterating targets for high single-digit revenue growth. The consensus estimate for full-year 2025 revenue is around $83.5 million. The full-year gross margin target is set at 47% or greater.

Here's a quick look at the recent revenue and margin performance:

Metric	Q1 2025 Value	Q2 2025 Value	Q3 2025 Value
Revenue	$19.1 million	$21.2 million	$24.4 million
Gross Margin	47.0%	47.4%	49.9%

The company ended Q2 2025 with an order backlog of $16 million, which equated to about 19% of the expected full-year 2025 revenue consensus of $83.5 million. You can see the trend of margin expansion is consistent, moving from 34.5% in Q1 2024 to 49.9% in Q3 2025.