BK Technologies Corporation

Good morning, ladies and gentlemen, and welcome to BK Technologies Corporation conference call for the fourth quarter of 2025. This call is being recorded. All participants have been placed on a listen only mode and following management's remarks, the call will be opened for questions. There is a slide presentation that accompanies today's remarks, which can be accessed via the webcast. At this time, it is my pleasure to turn the floor over to your host for today, Brett Maas of Hayden Investor Relations. Brett, please go ahead.

Thank you, Operator. Good morning and welcome to our conference call to discuss BK Technologies' results for the fourth quarter and full year 2025. On the call today are John Suzuki, Chief Executive Officer, and Scott Malminger, Chief Financial Officer. I will take a moment to read the Safe Harbor Statements. Statements made during this conference call and presented in the presentation that are not based on historical facts and 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 risks and factors that the company's actual results, performance, or achievements may differ materially from those expressed or implied by these forward-looking statements. And some of the factors and risks that could cause or contribute to such material differences are have been described in this morning's press release and in BK 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. With that out of the way, I'd like to turn the call over to John Suzuki, CEO of BK Technologies. Go ahead, John.

Thank you, Brad. Good morning, everyone, and thank you for joining us on our fourth quarter and fiscal year 2025 conference call. I'll start by reviewing our operational and financial performance and then turn it over to our Chief Financial Officer, Scott Malmanger, for a deeper dive into our financial results for the fourth quarter and fiscal year 2025. Following the discussion of our financial results, I will provide an outlook for our fiscal year 2026 and introduce the core objectives of Vision 2030. We will conclude by opening the call for a brief Q&A. The fourth quarter capped off an excellent year for the business, marked by substantial achievements and the successful execution of our Vision 2025 objectives. We delivered results ahead of annual guidance by all measures, including revenue growth, margin expansion, and increased profitability. Our results underscored the strength of our product portfolio and accelerated customer adoption of our solutions in the public safety communications market. Our business performed strongly in the fourth quarter of 2025 with revenue of 21.5 million, increasing 20% year over year, which is the second consecutive quarter of plus 20% top line growth. Revenue growth was driven primarily by robust state and local agency order volumes, including increased purchase volumes of our BKR series radios by agencies within our core Tier 2 and Tier 3 target markets. As a reflection of favorable product mix and continued wider-scale adoption of our BKR 9000, gross margin increased by over 900 basis points in the fourth quarter of 2025, a material expansion to 50.4 percent compared to 41.2 percent in the year-ago quarter. This powerful combination of revenue growth, gross margin expansion, and diligent cost management resulted in a 78% year-over-year increase in adjusted EBITDA, reaching 4.7 million in the fourth quarter of 2025. For the third consecutive quarter, we delivered adjusted EBITDA margin north of 20%, expanding to 22% in the fourth quarter of 2025, from 14.9% in the year-ago period. Profitability continued to advance in the fourth quarter of 2025, with non-GAAP fully diluted adjusted EPS reaching $1.17, up from 61 cents in the fourth quarter of 2024. As a result of the strong performance We closed 2025 with a record cash position of 22.8 million, a significant increase from the 7.1 million at year-end 2024. Our financial strength gives us the flexibility to invest strategically in innovation and commercial expansion, supporting opportunities to capture market share and unlock long-term value creation. Currently, our disciplined capital allocation strategy and inherent operating leverage are driving improving returns with return on invested capital of over 20% for the second consecutive year. We delivered sustained gross margin improvements during the 22-25 period and successfully navigated substantially industry-wide headwinds, starting with the supply chain disruptions in 2022. At that point, we implemented meticulous cost management initiatives, followed by securing a strategic partnership with EastWest for outsourced manufacturing, which significantly improved supply chain resilience while reducing manufacturing complexity. Stepping into 2025, gross margin steadily expanded throughout the year, supported by the firm customer adoption of our high-margin BKR 9000 multiband radio and resulting favorable product mix. For the full year 2025, gross margin expanded by over 1,000 basis points to 48.8%, comfortably above our 47% target. Gross margins improved from 19.3% in 2022 to 48.8% in four years, a trajectory that is the result of growing customer adoption, disciplined cost management, optimized supply chain, and the successful repositioning of our manufacturing and sourcing footprint. These structural advantages provide us with the ability to invest in long-term growth. To expand on the positive impact from the BKR 9000, our multi-band radios continue to attract agencies for their unmatched combination of performance, interoperability, affordability, and ergonomics. Big ER series radios fueled solid revenue growth into the fourth quarter of 2025, leading to full-year revenue growth of 12.5%, exceeding our guidance range of high single digits. While fourth quarter revenue declined sequentially from the third quarter due to normal ordering patterns among public safety agencies, it still represented our strongest fourth quarter on record. As I discussed in our third quarter conference call, we shipped two and a half times the number of BQR 9000 multiband radios in 2025 than we did in 2024. This continued sales ramp was driven by expanded agencies deployments and reoccurring replacement cycles. This higher margin mix in tandem with operating leverage resulted in a 91% year over year increase in operating income for the fourth quarter of 2025. which outpaced revenue growth. This momentum, coupled with the upcoming launch of the BKR 9500 radio, positions us with a strong growth lever as we commence our Vision 2030 roadmap. As we close Vision 2025 and enter Vision 2030, our competitive positioning has never been stronger. Our results validate the strength of our product portfolio the accelerating adoption of our solutions across public safety communications, and the team's successful execution of our strategic priorities. With that, I'll turn it over to Scott Malmanager, our CFO, to give a more detailed overview of our fourth quarter and full year 2025 financial performance. Go ahead, Scott.