Executive Summary

Q4 2024 delivered record revenue of $3.37M (+44% y/y, +6% q/q) and materially higher gross margin of 64% vs 29% y/y, while operating loss narrowed 29% y/y to $3.54M .
Revenue beat Wall Street consensus ($2.87M estimate vs $3.37M actual) and Primary EPS matched consensus (-$0.16), though GAAP EPS reported was -$0.02; note SPGI “Primary EPS” normalization differs from GAAP per-share reporting *.
Strategic updates: two revenue-generating licenses signed in 2024 ($2.7M FY, $1.7M in Q4), AS9100 certification, expanded HQ footprint, and multiple defense/space wins (U.S. Navy ISC, missile-program PCM heat sink, KULR ONE Space launch plan) .
Balance sheet strengthened with $29.83M cash and $20.28M BTC holdings at year-end; management expects at least doubling revenue in 2025 and is a long-term holder of BTC (no debt) .

What Went Well and What Went Wrong

What Went Well

Record quarterly revenue and margin expansion: “Revenue was approximately $3.4M… 44% higher y/y and 6% higher q/q… Gross margin for the fourth quarter was 64% versus 29% last year” .
Licensing traction: “In 2024, KULR signed its first 2 revenue‑generating license agreements and recorded $2.7M… $1.7M in Q4” .
Operational credibility and quality: “Our headquarter facility has received AS9100 certification… we’re now well positioned as the one‑stop shop total solution provider to design, test, manufacture and certify battery products” .

What Went Wrong

Continued GAAP net loss: Q4 net loss of $4.62M (GAAP EPS -$0.02); operating loss still sizable at $3.54M despite improvements .
Product revenue headwinds earlier in year and customer concentration exposure: “Product revenue… down 47% y/y… reliance on any one customer mitigated but still monitored” .
Mixed quarterly OpEx cadence: SG&A flat y/y in Q4 ($4.44M) and R&D only modestly lower ($1.25M), though full‑year declines were more substantial .

Financial Results

Quarterly P&L and Margins (GAAP)

Metric	Q2 2024	Q3 2024	Q4 2024
Revenue ($USD)	$2,430,000	$3,190,000	$3,370,594
Gross Margin %	24%	71%	64%
SG&A ($USD)	$4,590,000	$2,740,000	$4,437,032
R&D ($USD)	$1,310,000	$1,230,000	$1,246,161
Operating Loss ($USD)	$(5,330,000)	$(1,710,000)	$(3,540,864)
Net Loss ($USD)	$(5,890,000)	$(2,000,000)	$(4,620,461)
GAAP EPS ($USD)	$(0.03)	$(0.01)	$(0.02)

Actual vs Wall Street Consensus (SPGI)

Metric	Period	Consensus	Actual
Revenue ($USD)	Q4 2024	$2,866,670*	$3,370,594
Primary EPS ($USD)	Q4 2024	-$0.16*	-$0.16*
Revenue ($USD)	FY 2024	$10,255,670*	$10,737,481
Primary EPS ($USD)	FY 2024	-$0.6933*	-$0.72*

Values retrieved from S&P Global. GAAP EPS in KULR’s press release differs from SPGI Primary EPS normalization (not directly comparable) *.

Balance Sheet and Liquidity KPIs

KPI	FY 2023	FY 2024
Cash ($USD)	$1,194,764	$29,831,858
Bitcoin Holdings ($USD)	$0	$20,281,184
Total Assets ($USD)	$11,000,000	$63,000,000
Total Liabilities ($USD)	$13,100,000†	$5,500,000
Accounts Receivable ($USD)	—	$2,600,000 (current AR at 12/31/24)

† FY 2023 liabilities figure is implied context from management’s year-over-year commentary; no explicit amount disclosed in these documents.

Customers and Revenue Mix

KPI	FY 2023	FY 2024
Total Paying Customers (count)	53	71
Paying Product Customers (count)	39	53
Paying Service Customers (count)	17	34

Revenue Mix	Q3 2024	FY 2024
Product Revenue ($USD)	~$765,000	~$3,600,000
Service Revenue ($USD)	~$1,400,000	~$4,400,000
Licensing Revenue ($USD)	>$1,000,000	$2,700,000

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue (company outlook)	FY 2025	None provided	“At least double our revenue in 2025”	Raised (qualitative)
BTC Treasury Allocation	Ongoing	None provided	Up to 90% of surplus cash to BTC	New policy
BTC Strategy	Ongoing	None provided	Long-term holder; do not anticipate using BTC for normal working capital	Clarified
Space Battery Launch	2026	None provided	KULR ONE Space (K1S) rideshare mission planned via Exolaunch/SpaceX	New milestone

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2: Q2 2024)	Previous Mentions (Q-1: Q3 2024)	Current Period (Q4 2024)	Trend
AI/data center cooling & fans	Targeting OCP servers; air cooling majority; KULR VIBE enables higher airflow at lower energy	Multimillion KXV license; GM uplift; data center spend tailwinds	Integration of KULR Xero Vibe on NVIDIA Jetson edge AI; licensing revenue grew	Scaling into AI ecosystem; monetization via licensing
Space batteries (KULR ONE Space)	200Wh COTS in fall 2024; NASA JSC‑20793 certification path	Off‑the‑shelf 100/200/400 Wh configs; market $6.35B by 2030	K1S launch plan; NASA‑certified M35A cells available; customer NASA safety board review in 2025	Execution milestones toward flight heritage
Defense/DoD	Battery cell testing, supply chain resilience commentary	Army DEVCOM contract expanded to $2.4M; missile PCM heritage	U.S. Navy ISC high‑temp project; missile-program PCM heat sink award	Broadening defense pipeline
BTC treasury strategy	Not present	Emerging as licensing/cooling adjacency	Formal BTC strategy (up to 90% surplus cash); ~668 BTC; long‑term hold	Strategic treasury and narrative driver
Quality/operations	Texas HQ buildout; one‑stop shop capabilities	Streamlined OpEx; GM up; shrinking customer concentration	AS9100 certification; HQ expansion to 31k sq ft	Platform readiness for scale

Management Commentary

CEO on 2025 trajectory: “KULR is in its strongest financial position ever… We expect to at least double our revenue in 2025 as we grow our energy management business and expand into new applications.” .
CFO on profitability drivers: “Gross margin for the fourth quarter was 64% versus 29%… For the full year 2024, gross margin was 51% versus 37% in 2023” .
CFO on BTC accounting: “We early adopt the new FASB rule… ‘Change in fair value of digital assets’… at the end of 2024, this line item was a $719,000 charge… noncash” .
CEO on space: “We now have multiple customer engagements to design their 20793 compliant batteries… entering production stage for both KULR ONE Space and Guardian customers in 2025” .
CEO on AI/robotics: “We will announce our strategic partnership to enter the robotics and physical AI market in the next few weeks” .

Q&A Highlights

Licensing revenue cadence: $1.7M in Q4 and $2.7M for FY 2024 from licensing; management expects similar deals in coming quarters .
BTC usage and liquidity: Long-term BTC holder; do not anticipate using BTC for normal working capital; decisions analyzed for shareholder best interest .
Army Guardian program: Additional development/testing orders; cell screening and prototype production targeted for fall 2025 .
Molicel partnership and aviation: KULR ONE Air reference platform leveraging Molicel cells; TRS integral for electric aviation/drone markets .
Data center fans: Not yet in volume production; working on throughput and acoustic energy elimination to reduce server vibration; product announcements targeted later in 2025 .

Estimates Context

Q4 revenue beat consensus by ~$0.50M (Actual $3.37M vs $2.87M estimate); Primary EPS matched consensus (-$0.16), though KULR reported GAAP EPS of -$0.02, reflecting different accounting bases *.
FY 2024 revenue exceeded consensus ($10.74M actual vs $10.26M estimate); FY 2024 Primary EPS slightly below consensus (-$0.72 actual vs -$0.693 estimate). Coverage remains limited for FY 2025 (1 estimate: revenue $13.42M; EPS -$0.26).
Values retrieved from S&P Global. The SPGI “Primary EPS” is normalized and may not equal GAAP EPS in company releases .

Key Takeaways for Investors

Q4 delivered a clean top‑line beat and step‑function margin improvement; licensing and services mix materially lifted gross margin, an encouraging signal for FY25 margin trajectory .
Balance sheet strength (cash + BTC, no debt) reduces financing risk and supports execution in space/defense/AI verticals; BTC mark‑to‑market introduces noncash income statement volatility to monitor .
Defense and space opportunities are scaling from testing to production (U.S. Navy ISC, missile PCM heat sink, K1S mission plan), offering multi‑year visibility catalysts .
AS9100 certification and expanded footprint position KULR to win quality‑sensitive programs; operational readiness is a differentiator for aerospace/defense wins .
Watch for 2025 revenue acceleration versus management’s “at least double” outlook; licensing (high margin) is key to inflect gross margins; monitor conversion of service customers into product shipments .
AI/data center narrative is strengthening via KXV (Jetson integration) and fan vibration solutions; commercial traction updates will be stock catalysts as customers enter volume .
Near‑term trading: Expect sensitivity to additional licensing announcements, DoD contract expansions, and BTC treasury updates; medium‑term thesis hinges on scaling KULR ONE platforms and recurring high‑margin licensing streams .

Appendix: Prior Quarter References and Additional Press Releases

Q3 2024 results: Revenue $3.19M; GM 71%; operating loss $1.71M; net loss $2.00M; record licensing deal (> $1M) .
Q2 2024 results: Revenue $2.43M; GM 24%; operating loss $5.33M; net loss $5.89M; NASA cell testing PO and BRP FTRC engagement .
Q4‑period press releases: U.S. Navy ISC (Nov 25), missile PCM heat sink (Nov 14), NASA‑certified M35A availability (Dec 3), BTC treasury policy (Dec 4), NYSE compliance regained (Dec 18), K1S launch plan (Dec 17) .

KULR Technology Group, Inc. (KULR)·Q4 2024 Earnings Summary