KULR Reverses First-Quarter Revenue Gain and Exits Bitcoin Mining
Second-quarter revenue fell 43% to $2,080,177 and gross margin swung to (31)% after a 98% year-over-year first-quarter increase.
KULR Technology Group (KULR), a developer of high-power energy systems for space, defense, drones and data centers, reversed the first-quarter rebound in sales in the second quarter ended June 30, 2026. Revenue was $2,080,177, down 43% from $3,652,471 a year earlier.
That sequential turn was the quarter’s defining operating fact. In the first quarter ended March 31, 2026, revenue had increased 98% year over year to $4,846,430, which the company then attributed in part to growing customer traction across its battery and energy-systems platforms. Second-quarter sales of $2,080,177 sat well below that March print.
Gross margin moved with the same reversal. It was (31)% in the second quarter, compared with 20% a year earlier. In the first quarter, gross margin had been 29%. The company did not break out product versus services revenue in the second-quarter release.
Costs stayed mixed. Selling, general and administrative expenses decreased 9% to $6,307,097 from $6,941,599 a year earlier. Research and development expenses increased 23% to $2,985,659 from $2,436,754 a year earlier. Loss from operations increased 19% to $11,204,578 from $9,451,040 a year earlier. Sequentially, the operating loss widened from $7,385,177 in the first quarter.
Net results flipped from a year-ago profit. Net loss for the second quarter of 2026 was $21,970,816, or $0.47 a share, compared with net income of $8,142,149, or $0.22 a share, in the year-ago period. The company said the net loss was primarily driven by a $10,591,667 change in fair value loss associated with its bitcoin holdings.
Chief Financial Officer Mike Kimel said the company continued sharpening its focus on the core energy platform and simplifying the business around highest-priority growth opportunities. He said the bitcoin treasury strategy provided financial flexibility, but its volatility had a significant impact on reported results, including approximately $10.6 million of non-cash change in fair value losses, making the underlying performance of the battery business more difficult for shareholders to assess.
Since quarter-end, KULR exited bitcoin mining, repaid the Coinbase loan in full, and began reducing bitcoin holdings in a deliberate and disciplined manner, Kimel said. Those actions, he said, are designed to reduce balance-sheet volatility, improve financial visibility, and allow the company to concentrate capital and execution on scaling the core business while maintaining a disciplined approach to shareholder dilution. The company said it did not issue any shares through the ATM during the first half of 2026.
Cash was $12.8 million as of June 30, 2026, down from $19.0 million as of May 13, 2026. The company described itself as an energy-systems platform that designs and manufactures safe, high-power battery solutions for physical AI and other mission-critical applications, with the KULR ONE platform serving space and defense, drones and electric aviation, AI data-center backup, robotics, and Energy-as-a-Service markets.
The second-quarter print therefore combined a sharp drop in sales and a negative gross-margin swing with a larger operating loss, while the bitcoin fair-value mark remained the primary driver of the net loss versus a year-ago profit. Management’s post-quarter steps—exiting mining, repaying the Coinbase loan, and starting to reduce holdings—were framed as a shift toward the battery business and away from treasury volatility.