BK Technologies Corporation

Good morning, ladies and gentlemen. Welcome to the BK Technologies Corporation conference call for the third quarter of 2025. This call is being recorded. All participants have been placed on the listen-only mode. Following management's remarks, the call will be open for questions. There is a slide presentation that accompanies today's remarks, which can be accessed via the webcast. At this time, it is now my pleasure to turn the floor over to your host for today, Jen Belladeau, of IMS Investor Relations. Please go ahead.

Thank you. Good morning, and welcome to our conference call to discuss BK Technologies results for third quarter 2025. On the call today are John Suzuki, Chief Executive Officer, and Scott Malmenger, Chief Financial Officer. I will take a moment to read the State of Harvard statements. Statements made during this conference call and presented in the presentation that are not based on historical facts are forward-looking statements. Such statements include, but are not limited to, projections or statements of future goals and targets regarding the company's revenue and profits. These statements are subject to known and unknown factors and risks. The company's actual results, performance, or achievements may differ materially from those expressed or implied by those forward-looking statements, and some of the factors and risks that could cause or contribute to such material differences have been described in this morning's press release and in BK's filings with the U.S. Securities and Exchange Commission. These statements are based on information and understandings that are believed to be accurate as of today, and we do not undertake any duty to update such forward-looking statements. All right, with that out of the way, I'll turn the call over to John Suzuki, CEO of BK Technologies. Go ahead, John.

Thank you, Jen. Good morning. Thank you, everyone, for joining today. I'll start by reviewing some of the highlights of our operations and financial results during the third quarter, and then I'll turn it over to our Chief Financial Officer, Scott Malmanger, for a deeper dive into our financial results. We'll conclude by opening up the call for a brief Q&A. This was an excellent quarter for our business, highlighted by significant revenue growth of 21% to $24.4 million, driven primarily by robust order activity from federal customers, including multiple purchase orders totaling $12.9 million from the USDA Forest Service. Gross margin improvement to 49.9%, compared to 38.8% in the third quarter of 2024, primarily affecting the ongoing shift in the product mix to our higher-margin BKR 9000 multiband radio. This revenue growth and gross margin improvement, coupled with ongoing cost management, drove a 46% increase in net income to $3.4 million, or $0.87 per diluted share. On a non-GAAP basis, fully diluted adjusted EPS was $1.27 in the third quarter of 2025, compared with fully diluted adjusted EPS of 71 cents in the third quarter 24. We also significantly strengthened our cash position in the quarter with cash and cash equivalents totaling $21.5 million, compared with $7.1 million at year-end 2024 and have no debt. This gives us the flexibility to deploy capital thoughtfully. Through pursuing that, offer the highest return on invested capital, whether through new product innovation, strategic partnerships, or technology investments that strengthen our long-term competitive position in our core public safety communication markets. Over the past four years, we have seen consistent improvement in the gross margins of our business as we have reduced costs, outsourced manufacturing to our partner, EastWest, and launched our higher margin BCARE 9000 multiband radio. We continue that trend in the third quarter, delivering a sequential increase in our gross margin of 250 basis points as compared to the second quarter of 2025. As the BCARE 9000 multiband radio radio continues to gain traction among our customers. The radio's higher price point and margin profile are favorably impacting our gross margin performance. Price increases implemented in the first half of 25 benefited our third quarter margin as well, though some tariff exposure in Asia slightly offset these improvements. With the progress we've made to date, we are confident we're We're confident in our ability to exceed our stated gross margin target of 47% for the full year. Growing demand for our BQR series radio has driven both sequential and year-over-year revenue growth. We achieved revenue growth of 21% in the third quarter compared to the prior year period, primarily driven by strong federal order activity that included multiple purchase orders from the USDA for services for a total of $12.9 million. Additionally, our BKR 9000 is performing well in the market. We are on pace to deliver between two and three times the amount of BKR 9000 multiband radios in 2025 as we did in 2024. Our particularly strong third quarter revenue growth also benefited from the increased amount of finished goods, that we imported in the first half of the year to mitigate the impact of tariffs on our shipments, which allowed us to ship more radios in the quarter. So all in all, a great quarter for the company with continued strong execution by the team. With that, I'll turn it over to Scott Malmanger, CFO, to give a more detailed overview of our third quarter financial performance. Go ahead, Scott.