Executive Summary

Q3 delivered record revenue of $6.88M (+116% y/y, +~75% q/q), materially beating the lone S&P Global revenue consensus of $4.00M, but EPS of -$0.17 missed the -$0.08 consensus as gross margin fell to 9% and one-time impairment/credit losses weighed on results . Revenue est/eps est from S&P Global*.
Product revenue more than doubled y/y to ~$1.62M, while services remained the larger contributor; management emphasized an ongoing pivot toward a product-led model as the growth engine .
Gross margin compressed to 9% from 71% y/y on higher service hours and mining lease costs; operating loss widened to $8.74M y/y, and net loss was $6.97M on impairment and credit losses .
Balance sheet capacity and optionality are notable: cash just over $20M, AR ~$3M, Bitcoin worth ~ $120M, total assets ~$156M, and no debt (Coinbase loan repaid) — supporting investment in KULR ONE platforms, AI-BBU, and facility expansion .
Stock reaction catalysts: outsized revenue beat vs light coverage, visible product roadmap (KULR ONE Air, kBMS, K1S CubeSat batteries), and new Soluna 3.3MW hosting deal; counterbalanced by margin pressure and EPS miss tied to impairments .

What Went Well and What Went Wrong

What Went Well
- Record top-line: Revenue up 116% y/y to $6.88M and ~75% q/q; trailing 12-month revenue reached a record $16.7M .
- Product traction: Product revenue +112% y/y to ~$1.62M; KULR ONE Air launched with 150+ SKUs and multiple late-stage opportunities; management targets 50k packs/month production by mid-2026 .
- Strategic platform progress: Launched next-gen kBMS for mission-critical and space applications; expanded K1S CubeSat battery portfolio; Soluna 3.3MW hosting partnership adds synergy to Bitcoin+ and data center energy ambitions .
What Went Wrong
- Margin compression: Gross margin fell to 9% (from 71% y/y), driven by increased hours on service contracts and costs tied to digital asset mining leases .
- EPS miss and operating loss: EPS of -$0.17 missed the -$0.08 S&P Global consensus*; operating loss widened y/y to $8.74M and net loss was $6.97M due in part to a one-time impairment and credit losses .
- Services mix/volatility: Services revenue declined 74% y/y as management pivots to products; services mix and project timing contributed to margin variability .

Financial Results

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($M)	$2.45	$3.97	$6.88
Gross Margin %	8%	18%	9%
Operating Income (Loss) ($M)	($9.44)	($9.45)	($8.74)
Net Income (Loss) ($M)	($18.81)	$8.14	($6.97)
Diluted EPS ($)	($0.07)	$0.22	($0.17)
SG&A ($M)	$7.20	$6.94	$6.26
R&D ($M)	$2.45	$2.44	$2.32
Cash + Accounts Receivable ($M)	$27.59	$24.73	$24.54

Segment/KPI breakdown:

Metric	Q1 2025	Q2 2025	Q3 2025
Product Revenue ($M)	~$1.16	~$1.98	~$1.62
Implied Services Revenue ($M)	~$1.29 (2.45-1.16)	~$1.99 (3.97-1.98)	~$5.26 (6.88-1.62)
TTM Revenue ($M)	—	—	$16.7

Estimate vs Actual (Q3 2025):

Metric	Consensus	Actual	Surprise
Revenue ($M)	$4.00*	$6.88	+$2.88 (+72.1%)
EPS ($)	($0.08)*	($0.17)	($0.09) miss

Notes: Services revenue is calculated as total revenue minus product revenue (implied arithmetic). Consensus values marked with * are from S&P Global.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Formal financial guidance (revenue, margins, OpEx, tax, etc.)	—	None disclosed	None disclosed	—
Battery pack production capacity target	Mid-2026	Not previously quantified	Scale to ~50,000 packs/month (with ability to scale to 100,000+)	New operational target
AI Data Center BBU readiness	2026	Not previously quantified	Target UR9540 certification, production-ready in 2026	New product timing

Management did not issue quantitative financial guidance for Q4/FY. Operational milestones above frame 2026 scaling and product readiness .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2 2025)	Current Period (Q3 2025)	Trend
AI/Data center BBUs	Limited in Q1/Q2 disclosures; focus was treasury, space/defense, and product expansion	Clear roadmap to AI data center BBUs and telecom energy storage; targeting UR9540-certified BBUs in 2026 tied to NVIDIA/800V HVDC architectures	Accelerating focus; large TAM entry
Domestic production & scale	Consolidation to Webster, TX noted in Q1; emphasis on in-house capabilities	Plan to expand TX HQ to >100k sq ft; scale from a few thousand to 50k packs/month by mid-2026	Scaling up
Bitcoin treasury strategy	Expansion of holdings and KPI (BTC Yield); $20M Coinbase facility announced in July	~No debt, BTC worth ~$120M; all-in mining cost ~$102k/BTC; mining to deepen DC/AI relationships	Balanced, synergistic with energy products
Exoskeleton/AI Robotics	GB partnership and U.S. distribution in Q1	30+ Exia units deployed across sectors; impairment related to German Bionic; app planned in 2026	Mixed: commercialization + impairment
Space/aerospace platforms	TX Space Commission grant; K1S programs; NASA-certified cells	Launched six new COTS K1S CubeSat batteries; next-gen kBMS launched	Continued productization
Margins & mix	Q1 GM 8% on higher labor; Q2 GM 18%	Q3 GM 9% on service hours and mining lease costs	Volatile; product mix shift ongoing

Management Commentary

“In Q3 2025, we generated approximately $6.9 million in revenue, growing 116% year-over-year and 75% sequentially... We have approximately $140 million in cash and digital assets and no debt, following the full repayment of the $8 million Coinbase loan.” — CEO Michael Mo .
“We’re currently producing a few thousand packs per month, and... targeting 50,000 packs per month by mid-2026... we expect our BBU system to be UR9540 certified and production-ready in 2026.” — CEO Michael Mo .
“Revenue grew 116%... Q3 was the highest revenue quarter… new trailing 12-month revenue record at $16.7 million... R&D is down 5.2%, and SG&A is down 13% [sequentially YTD].” — CFO Shawn Canter .
“At the end of the third quarter, our cash balance was just over $20 million... current accounts receivable was approximately $3 million... Bitcoin worth approximately $120 million, and our total assets were approximately $156 million.” — CFO Shawn Canter .
“Gross margin was 9%... The decrease... was primarily due to increased hours spent on service contracts and an increase in costs related to digital assets mining leases.” — Q3 press release .

Q&A Highlights

Strategy balance: Management reiterated operational focus on energy storage/management and vibration reduction while maintaining a disciplined Bitcoin treasury (no leverage; cash buffer to handle volatility) .
Capital structure: “No basis for considering another reverse split,” with institutional ownership having more than doubled since 2023’s reverse split .
Communications: Company will publish an investor letter at least annually starting early 2026; expects more events and potential analyst coverage over time .
Stabilizing stock: Focus on accelerating revenue growth in core markets, conservative Bitcoin approach (no debt), and scaling KULR Vibe platform .
Bitcoin mining economics: All-in mining cost of ~$102k/BTC; mining seen as strategically synergistic with energy solutions and data center market entry .

Estimates Context

Q3 revenue beat: $6.88M actual vs $4.00M S&P Global consensus (+72% surprise), driven by record quarter and acceleration of product and service activity . Consensus from S&P Global*.
Q3 EPS miss: -$0.17 actual vs -$0.08 S&P Global consensus; miss tied to one-time impairment and credit losses and lower gross margin . Consensus from S&P Global*.
Coverage remains thin (1 estimate for revenue and EPS), heightening the potential for outsized surprises as execution and mix shift evolve*. Counts from S&P Global*.

Key Takeaways for Investors

Strong top-line momentum with fifth consecutive y/y quarterly revenue growth and a substantial revenue beat; however, margin variability and one-time charges drove an EPS miss .
Product-led strategy is taking hold (KULR ONE Air/Space/Max; kBMS) with visible 2026 milestones (50k packs/month, UR9540-certified BBUs), positioning for scaled growth in UAVs, space, telecom and AI data centers .
Operating discipline: sequential declines in SG&A and R&D YTD suggest improving OpEx control even as the company invests in growth .
Balance sheet optionality: cash, AR, and sizable Bitcoin holdings with no debt create capacity to fund R&D, production expansion, and strategic initiatives while reducing financing risk .
Near-term trading lens: revenue outperformance vs minimal coverage is a positive catalyst; watch for updates on margin trajectory, product mix, and any follow-through orders in UAS/data center/telecom that validate scaling targets .
Medium-term thesis: execution on 2026 operational targets (capacity ramp, BBU certification) and continued productization in space/defense/industrial could compress losses and improve gross/EBITDA margins as mix shifts to products .
Risk watch: services mix/margin volatility, the impact of digital asset mining costs on COGS, and any further non-operational charges; limited sell-side coverage can amplify estimate dispersion .

Additional materials and context:

Launch of next-gen kBMS for mission-critical and space applications .
Expanded K1S CubeSat battery portfolio .
3.3MW hosting partnership with Soluna to support Bitcoin mining and potential data center energy solution opportunities .
Q2 and Q1 earnings detail revenue growth trajectory and treasury strategy evolution .

S&P Global estimates disclaimer: *Values retrieved from S&P Global.

KULR Technology Group, Inc. (KULR)·Q3 2025 Earnings Summary