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KULR Technology Group, Inc. (KULR)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue rose 63% year over year to $3.97M, beating S&P Global consensus of $3.45M; EPS printed positive on a non-operating gain from Bitcoin mark-to-market, versus a consensus loss, creating a headline beat and narrative shift to profitability . Q2 revenue actual: $3.97M; consensus: $3.45M*; Q2 EPS actual (S&P): $0.259; consensus: -$0.12* .
  • Gross margin fell to 18% (from 24% YoY) due to unanticipated labor hours on technical projects, while SG&A and R&D grew materially as KULR invested in marketing, stock comp, and R&D consulting services .
  • Balance sheet optics strengthened by Bitcoin strategy: combined cash and receivables were $24.73M at June 30; BTC holdings increased to 1,021 coins in July, supported by a $20M credit facility with Coinbase Credit and expanding mining capacity to 750 PH/s with a target of 1.25 EH/s later in summer .
  • Corporate positioning: joined the Russell 3000 Index at June 30 and executed a 1-for-8 reverse split on June 23 to broaden investor appeal—incremental inclusion and liquidity catalysts around reconstitution .

What Went Well and What Went Wrong

What Went Well

  • “Another revenue record quarter – the highest in KULR’s history,” with Q2 revenue up 63% YoY to $3.97M and product sales up 74% to ~$1.98M, evidencing commercial traction in batteries and energy systems .
  • Strategic treasury actions amplified optics: net income of $8.14M and positive EPS driven by mark-to-market gains on Bitcoin holdings (vs. a net loss YoY), enabled by increased BTC holdings and financing flexibility via Coinbase Credit .
  • Operational scaling and market positioning: shipment of K1S 500 XLT to customers (next-gen BMS integration), growing mining capacity to 750 PH/s with a 1.25 EH/s target, and Russell 3000 inclusion enhancing index ownership dynamics .

What Went Wrong

  • Gross margin compression to 18% from 24% YoY due to unanticipated labor hours on technical projects; highlights execution strain within services and custom programs .
  • Operating loss widened to $9.45M (from $5.33M YoY) on higher SG&A ($6.94M vs. $4.59M YoY) and R&D ($2.44M vs. $1.31M YoY), underscoring heavy opex investment while scaling .
  • Q2 call transcript not available via our document search; limits visibility into forward guidance granularity, pricing power, backlog progression, and detailed segment momentum in the quarter .

Financial Results

P&L and Margin Trajectory (Actuals)

MetricQ4 2024Q1 2025Q2 2025
Revenue ($USD)$3,370,594 $2,448,606 $3,972,997
Diluted EPS ($USD)-$0.02 -$0.07 $0.22
Gross Margin (%)64% 8% 18%
Operating Loss ($USD)$3,540,864 $9,440,000 $9,450,000
Net Income ($USD)-$4,620,461 -$18,810,000 $8,140,000

Notes: Company press releases and 8‑K Exhibit 99.1 cited.

Q2 2025 Actual vs S&P Global Consensus

MetricConsensusActualSurprise
Revenue ($USD)$3,450,000*$3,972,997+$522,997*
EPS ($USD)-$0.12*$0.259*+$0.379*

Values marked with an asterisk (*) retrieved from S&P Global via GetEstimates.

Additional context: Company press release stated EPS of $0.22 for Q2 2025 ; S&P Global reports Primary EPS actual at ~$0.259*, reflecting methodological differences (e.g., primary/diluted definitions, share counts).

Segment/Component Detail (where disclosed)

ComponentQ4 2024Q1 2025Q2 2025
Product Sales Revenue ($USD)N/A~$1,160,000 ~$1,980,000
Services Revenue ($USD)“Scaling design & test services” (qualitative) down 8% YoY (no absolute disclosed) N/A
Bitcoin Mining Revenue ($USD)N/A~$250,000 N/A

KPIs and Operating Metrics

KPIQ4 2024Q1 2025Q2 2025
Cash & Cash Equivalents ($USD)$29.83M $24M (cash), $2.9M AR (as of Q1 end) $24.73M (cash + AR combined, at Q2 end)
BTC Holdings (coins)668.3 (Mar 25) 716 (May 10 update) 1,021 (July 10)
Gross Margin (%)64% 8% 18%
EBITDA ($USD)N/A-$9,149,440*-$8,369,285*

Values marked with an asterisk (*) retrieved from S&P Global via GetFinancials.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Bitcoin Mining Hash RateLate Summer 2025750 PH/s current ops Target 1.25 EH/s Raised capacity target
Corporate Actions (Reverse Split)Effective June 23, 2025N/A1-for-8 reverse split Implemented
Treasury FinancingOngoing (Q2)N/A$20M credit facility with Coinbase Credit to fund BTC accumulation New facility
Revenue/Margins/OpExQ3 2025Not disclosedNot disclosedMaintained (no formal guidance)

No formal numerical revenue, margin, tax, or opex guidance was disclosed in the Q2 press release or 8‑K materials .

Earnings Call Themes & Trends

Note: Q2 2025 earnings call transcript was not available via our document search; themes below draw from Q4 2024 PR, Q1 2025 call, and Q2 2025 press materials.

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
Bitcoin Treasury StrategyAnnounced BTC-first approach; 668 BTC by Mar 25; emphasized allocation up to 90% surplus cash BTC holdings 1,021; $20M Coinbase credit; record BTC Yield metrics Accelerating
Mining CapacityNo capacity metrics in Q4; initial mining revenue noted in Q1 ($250k) 750 PH/s deployed; target 1.25 EH/s later summer Scaling
AI/Robotics ExoskeletonGerman Bionic partnership; market potential and distribution rights highlighted in Q1 call 7th‑gen EXIA introduced to NA customers; positive early feedback Commercialization progressing
Space/Aerospace BatteriesQ4: defense contracts; KULR ONE Space platform; NVIDIA Jetson integration K1S 500 XLT shipped; subsea battery delivered; DoD ballistic-proof battery demo Productization milestones
Supply Chain BlockchainLaunch for testing data integrity; Base L2 rollup in Q1 PR Not reiterated in Q2 materialsStable/Background
Corporate PositioningRegained NYSE compliance; discussed index dynamics in Q4 Russell 3000 inclusion; reverse split executed Positioning improved

Management Commentary

  • CEO Michael Mo: “KULR is in its strongest financial position to accelerate its growth and continue its innovations... our Bitcoin holdings provide a solid financial balance sheet that enables us to invest confidently in developing new KULR ONE battery products, expand our R&D efforts, and drive towards the next phase of our growth.”
  • CFO Shawn Canter: “We are proud to deliver another revenue record quarter – the highest in KULR’s history... We hold over 1,035 BTC and a yield approaching 300%... We remain confident in our ability to build shareholder value through our energy management, exoskeleton and BTC strategies.”
  • On Q1 balance sheet strength and BTC accounting: “At the end of the first quarter, our cash balance was $24 million... This is simply a mark‑to‑market of our Bitcoin holdings... we did not sell any Bitcoin.”

Q&A Highlights

  • The Q2 2025 earnings call transcript was not available via our document search; the company hosted a call on August 14, 2025, but we could not retrieve a Q&A record at this time .
  • In Q1, management fielded questions around facilities consolidation (San Diego lease not renewed; consolidation to Webster, TX) and exoskeleton commercialization pathways, emphasizing operational efficiency and market opportunity .

Estimates Context

  • Q2 2025: Revenue beat ($3.97M vs. $3.45M*), EPS beat ($0.259* vs. -$0.12*), with EPS upside driven by non-operating Bitcoin mark-to-market gains and revenue outperformance vs. modest expectations .
  • Estimate breadth remained limited (two estimates for revenue and EPS), suggesting potential for wider dispersion as coverage adjusts to the BTC-first strategy and diversified operating profile*.

Values marked with an asterisk (*) retrieved from S&P Global via GetEstimates.

Key Takeaways for Investors

  • The quarter delivered a clear beat versus consensus on both revenue and EPS, but EPS quality was non-operating (Bitcoin mark-to-market); assess sustainability of operating profitability amid rising SG&A and R&D .
  • Mix shift and service execution pressure compressed gross margins; watch delivery cadence and labor planning on technical projects to stabilize margins .
  • Treasury actions (BTC accumulation, Coinbase Credit, mining scale-up) materially influence reported earnings and balance sheet optics; investors should monitor BTC exposure, financing costs, and mining operational execution .
  • Operational validation continued across space, defense, and subsea batteries with K1S shipments and ballistic-proof demos; track conversion into recurring revenue and margin accretion .
  • Corporate catalysts: Russell 3000 inclusion and reverse split could broaden ownership and liquidity; pair with fundamentals to drive re-rating rather than technical alone .
  • Near-term trading: headline EPS beat and BTC-linked balance sheet expansion are bullish catalysts; margin compression and opex intensity are offsetting factors—expect sensitivity to BTC price and any updates on mining capacity ramp .
  • Medium-term thesis: execution on productization (KULR ONE platforms), exoskeleton commercialization, and disciplined services delivery will be key to improving underlying operating metrics independent of BTC volatility .

Footnotes:

  • Values marked with an asterisk (*) retrieved from S&P Global.
  • Q2 call transcript not located in our document search; report synthesizes 8‑K/press releases and prior-quarter call content where applicable .