Revenue Growth
Q1 2026 revenue was $21.3M, up 11.8% year-over-year from $19.1M, driven by broad-based gains across federal, state, and local agencies and continued product adoption.
Margin Expansion and Profitability
Gross profit margin expanded to 51.8% in Q1 2026 from 47.0% a year ago (+4.8 percentage points). Non-GAAP adjusted EBITDA was $4.0M (18.7% margin) versus $3.2M (16.9%) in prior-year quarter; non-GAAP diluted adjusted EPS grew to $0.88 from $0.62 (+41.9%).
GAAP Earnings Improvement
GAAP net income increased to $2.8M from $2.1M YoY (+33.3%). GAAP EPS was $0.74 basic and $0.69 diluted, up from $0.60 and $0.55 respectively (diluted EPS +25.5%).
Strong Cash Generation and Balance Sheet
After-tax free cash flow increased 44% YoY to $4.1M in Q1 2026. Company ended the quarter debt-free with a record cash balance of $29.0M, up from $22.8M at year-end 2025 (+27.2%). Working capital improved to $41.3M and shareholders' equity rose to $47.7M.
Product Momentum: BKR Series and BKONE
Company has shipped over 95,000 BKR 5000 radios since 2020. Q1 included a 500-unit BKR 9000 order from Minnesota DNR and initial orders and strong customer reception for the newly introduced BKR 9500 multiband mobile radio, with bookings from an existing large customer and positive trade-show feedback.
Reiterated Full-Year Guidance
Management reiterated full-year 2026 guidance: revenue of at least $90M, full-year gross margin ≥50%, GAAP EPS of $3.15 and non-GAAP adjusted EPS of $3.55, reflecting confidence in continued revenue growth and margin expansion.