KULR targets doubling 2025 revenue, unveils new product platforms amid shift to product-focused growth
Aug. 14, 2025 8:28 PM ET
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Earnings Call Insights: KULR Technology Group, Inc. (KULR) Q2 2025
Management View- Michael Mo, CEO, announced that in Q2 2025, "we achieved record revenue of approximately $4 million, which is up 63% from the same quarter in 2024." He also reported "our first quarterly profit of $0.22 per share, primarily attributed to our Bitcoin treasury strategy." Mo highlighted a "balance sheet is approximately $140 million in cash and Bitcoin as of today." He emphasized the transformation from a design and testing service company to a product-focused company, stating KULR is positioned "to double revenue in 2025 versus 2024 and sustain this growth trajectory into 2026."
- Mo detailed key product and market developments: "Launched in 2023, the KULR ONE platform was built to deliver best-in-class battery products, the vision now coming to life." He announced two new platforms set for later this year: KULR ONE Air for unmanned autonomous vehicles and battery backup units for industrial, telecom, and data center applications. For space applications, Mo underscored that "our KULR ONE Space K1S 400 successfully passed NASA's acceptance process for the 20793 certification in support of the Artemis program," with final certification pending for the Artemis mission in 2026.
- Addressing the reverse split, Mo clarified "the primary strategic reason for the reverse split was to attract more institutional investors, strengthening our shareholder base with larger longer-term holders," and confirmed "KULR was already in full compliance prior to the split."
- On the Bitcoin strategy, Mo stated, "KULR is a Bitcoin plus treasury company, leveraging a Bitcoin backed balance sheet to build and scale a portfolio of frontier technologies." He reported "we currently hold approximately 1,035 Bitcoins."
- Regarding exoskeletons, Mo said, "we are very excited about its growth prospects" and that Exia is "now being introduced to customers across North America" with expectations for it to start contributing to revenue in Q3 2025.
- Shawn Canter, CFO, commented, "Revenue grew an impressive 63% from the same quarter last year to approximately $4 million. KULR's quarterly revenue growth records continue to grow. This is the highest quarterly revenue KULR has ever generated." Canter added, "the second quarter was the first time KULR had positive net earnings, posting a positive earnings per share of $0.22."
Outlook- Management reiterated the plan "to double revenue in 2025 versus 2024 and sustain this growth trajectory into 2026."
- Mo stated, "We expect to meet our 2025 revenue target, as we have stated before. Furthermore, we are excited about the prospects of the KULR ONE product platform as well as the Exia growth, and we expect that the growth rate to maintain, if not accelerate into 2026."
- The launch of KULR ONE Air and battery backup units is scheduled for later in 2025, with anticipated revenue contributions and market expansion.
Financial Results- KULR reported "record revenue of approximately $4 million" in Q2 2025, a 63% increase year-over-year. Product revenue was "up 74% year-over-year," while service revenue declined 57%. Gross margin for the quarter was "18%... down primarily due to unanticipated labor hours needed to complete technical projects and the price of Bitcoin affecting our Bitcoin mining margin."
- The company posted its "first quarterly profit of $0.22 per share." Cash balance at quarter end was "just over $20 million," with accounts receivable at $4.2 million and "just over 928 Bitcoins worth approximately $100 million."
Q&A- Stuart Smith, SmallCapVoice.com, Inc.: With great success at Camp Pendleton and ongoing U.S. Army trial, is there any DoD traction with respect to VIBE and DoD helicopters? Michael Mo: KULR VIBE can balance "the H-60, the Bell 407 and the Black Hawk," averaging "between 2 to 3 runs to get the vibration closer to 0."
- Stuart Smith: Quarter-over-quarter, SG&A costs have been climbing, while sales growth has not kept pace. What's driving this imbalance? Shawn Canter: "Our SG&A costs reflect, among other things, a planned increase in investments to drive growth going forward."
- Shareholder: Why should shareholders continue to hold KULR shares? Michael Mo: "Now with approximately $40 million in cash and Bitcoin, we're at a great position to continue to invest...as we transition from a design and service battery company to a product-focused company...we can be one of the exceptions in the U.S. market."
- Stuart Smith: Why can't you answer questions in real time? Michael Mo: "We'll look into some of the best practices of similar companies and see what we can do."
- Analyst: What about the reverse split rationale? Michael Mo: "The decision was unequivocally done on a voluntary basis...the main strategic motivation behind the reverse split was to attract more institutional investors."
- Analyst: Is there any class action litigation? Michael Mo: "We are not aware of any class action litigation against the company or its officers at this time."
- Analyst: What is your current hash rate and power cost? Michael Mo: "Our current hash rate is approximately 900 petahash. We maintain a blended power cost below $0.04 per kilowatt hour...our cash cost per Bitcoin is approximately $102,000 per Bitcoin, and we target to get to 1 exahash by this fall."
Sentiment Analysis- Analysts raised concerns about SG&A costs, the rationale for the reverse split, share dilution, and the prominence of Bitcoin over core operations, with a slightly negative tone and pressing for more detailed responses.
- Management's tone in prepared remarks was confident, emphasizing record growth, new product launches, and strategic transformation. In Q&A, management remained largely defensive, often reiterating prior points and acknowledging communication issues: "Yes, we can do better -- I can do better."
- Compared to the previous quarter, analyst skepticism increased, focusing more on execution, dilution, and the impact of the Bitcoin strategy. Management's tone shifted from highly optimistic to more defensive, especially regarding negative sentiment and transparency.
Quarter-over-Quarter Comparison- Guidance to double revenue in 2025 versus 2024 was reiterated, with added specificity about product launches (KULR ONE Air, backup units) and exoskeleton revenue contribution.
- Management emphasized progress in transformation to a product-focused company, while analysts increased scrutiny over financial discipline, communication, and execution.
- Product revenue growth accelerated, while service revenue declined further. Gross margin improved quarter-over-quarter (from 8% to 18%), but management flagged ongoing margin pressures.
- The tone of management shifted from highly bullish and forward-looking in Q1, with a focus on Bitcoin, to more balanced but defensive in Q2, addressing shareholder concerns and negative sentiment.
Risks and Concerns- Management acknowledged the impact of negative short reports and market rumors, stating, "It is not our policy to let such report distract our management team or engage in what would become an endless back and forth of opinions."
- Gross margin pressure due to "unanticipated labor hours needed to complete technical projects and the price of Bitcoin affecting our Bitcoin mining margin" was noted.
- Analysts questioned ongoing share dilution, transparency, and the balance between Bitcoin treasury activities and core business investment.
Final Takeaway
KULR Technology Group closed Q2 2025 with record revenue growth, its first quarterly profit, and a robust balance sheet driven by both Bitcoin holdings and expanding product revenues. Management reiterated ambitious targets to double revenue in 2025 and sustain growth through 2026, supported by a pipeline of new battery and robotics products. While analysts challenged the company on its communication, financial discipline, and the prominence of its Bitcoin strategy, management emphasized its transformation into a product-centric business, operational scalability, and the strategic rationale behind recent decisions, setting the stage for continued growth and new market penetration in the coming quarters.
Read the full Earnings Call Transcript |
