KULR Technology Group reported third‑quarter 2025 revenue of $6.88 million, a 116% year‑over‑year increase from $3.18 million in Q3 2024. The jump was driven by a 112% rise in product sales to $1.62 million, reflecting strong demand for its KULR ONE battery platform and new AI‑robotics offerings. In contrast, service revenue fell 74% to $5.26 million, a sharp decline that underscores the company’s shift from legacy service contracts toward higher‑margin product sales.
Gross margin contracted dramatically from 71% in Q3 2024 to 9% in Q3 2025. The compression is largely attributable to higher labor hours on service contracts and increased costs associated with digital‑asset mining leases. While product sales grew, the cost of revenue rose faster, eroding profitability. The company’s operating loss widened to $8.74 million, and net loss reached $6.97 million, driven by a $6.8 million gain from revaluing digital assets, a $0.8 million impairment charge on equipment deposits, and credit losses related to a German investee’s insolvency.
Cash and cash equivalents stood at $20.6 million at quarter‑end, a figure that excludes current accounts receivable. The company also reported Bitcoin holdings valued at $120.5 million, a significant asset that provides a hedge against inflation but introduces volatility. The strong cash position and Bitcoin treasury give KULR flexibility to fund its expansion of the KULR ONE platform and ongoing R&D investments.
CEO Michael Mo emphasized that the company is “accelerating growth and pushing forward our innovations.” He noted that the Bitcoin holdings “provide a more resilient balance sheet that allows us to confidently invest in next‑generation battery products.” CFO Shawn Canter highlighted that the quarter marked a record revenue milestone and that the product business is gaining traction, signaling confidence in the company’s strategic shift.
Investors reacted cautiously, focusing on the sharp margin compression and the earnings miss relative to analyst expectations. While revenue beat estimates by roughly 35%, the net loss and widened operating loss underscored the company’s ongoing profitability challenges. Management’s guidance for the next quarter remains unchanged, indicating a measured outlook amid continued investment in product development and strategic partnerships.
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