KULR Technology Group reported a sharp increase in third-quarter revenue as sales of its battery products nearly quadrupled from a year earlier. The company also said it has exited Bitcoin, repaid its debt and ended September with $54.5 million in cash. Its results included a one-time gain on digital assets, while gross margin fell and a workforce reduction is expected to lower costs.
Key details
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Revenue rose 197% to $7.4 million for the quarter ended Sept. 30, compared with $2.49 million a year earlier. Product sales increased 299% to about $6.49 million and accounted for 88% of revenue. KULR served 22 product customers, up from 18.
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Growth came from the KULR ONE battery platform, including KULR ONE Max battery energy storage systems for power-as-a-service deployments in Japan’s open power market.
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Gross margin was 4%, down from 17% a year earlier. KULR attributed the decline mainly to low margins on initial production builds of a new KULR ONE Max configuration and losses on several custom battery assembly programs, where production costs exceeded contract value. The prior-year quarter benefited from higher-margin KULR ONE Space battery assemblies.
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KULR reported GAAP net income of $4.5 million, including a non-recurring $15.8 million gain on digital assets before their sale. The company completed its exit from Bitcoin and ended the quarter with no digital assets.
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Cash stood at $54.5 million at quarter-end, with no debt. KULR said it repaid its only debt and paused its at-the-market share sale program through Dec. 31, 2026.
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Research and development costs rose to $5.02 million from $2.32 million. The spending supported new battery programs for autonomous platforms, development of KULR’s own battery chargers and battery management systems, and production-line preparation for new battery configurations. Of this quarter’s R&D costs, $690,000 was reimbursed through a Texas Space Commission grant.
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The company expects R&D expenses to decline beginning in the fourth quarter of 2026 and fall further in 2027. It said production-line preparation and new battery-pack development are expected to wrap up in the fourth quarter, with battery management system and charger programs expected to be completed in early 2027.
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A workforce reduction implemented in November is expected to produce about $4 million in annualized savings. This action followed the end of the third quarter.
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KULR is building a domestic, NDAA-compliant battery supply chain for autonomous systems. The effort includes partnerships with cell manufacturers as well as the company’s own battery management systems and chargers, ahead of an expected production ramp in 2027.
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The results cover continuing operations; the former Bitcoin mining business is treated as discontinued operations, and prior-year figures have been recast.
Plain-English implications
KULR’s reported revenue growth is being driven by product sales, but the quarter also shows that higher sales have not yet translated into stronger margins: gross margin fell to 4%. The cash balance, debt repayment and paused share-sale program mark a cleaner balance sheet and a pause in one potential source of share issuance. Meanwhile, the planned cost reductions and lower expected R&D spending are intended to reduce expenses as development and production preparations progress.