KULR Product Sales Nearly Quadruple After Bitcoin Exit

The Tip Desk · November 10, 2026 · 4 min read

Third-quarter continuing-operations revenue was $7.40 million, up 197% from a year earlier, as product sales reached $6.49 million.

KULR Technology Group (KULR), a developer of high-power battery systems for physical AI and mission-critical applications, reported third-quarter continuing-operations revenue of $7.40 million, up 197% from $2.49 million a year earlier, reversing the prior quarter’s 43% year-over-year decline.

Product sales were $6.49 million, up 299% from $1.62 million in the year-ago quarter, and accounted for 88% of revenue. The company said the increase was driven by growth across the KULR ONE platform, including KULR ONE Max battery energy storage systems for power-as-a-service deployments in Japan’s open power market. It served 22 product customers, compared with 18 a year earlier.

Gross margin was 4%, down from 17% a year earlier, after a (31)% margin in the second quarter. The company said the year-over-year decline was driven primarily by low-margin initial production builds of a new KULR ONE Max configuration and gross losses on several custom battery assembly programs where direct labor and production costs exceeded contract value. The prior-year period had benefited from high-margin sales of KULR ONE Space battery assemblies. Founder and Chief Executive Officer Michael Mo said gross margin had returned to positive territory but was not yet where the business can run.

Research and development expenses increased to $5.02 million from $2.32 million a year earlier, including $0.69 million reimbursed through grant revenue under a Texas Space Commission award. The company said the increase in non-reimbursable R&D reflected investment in new battery programs and designs for autonomous platforms, development of its own NDAA-compliant battery charger and battery management system products, and bring-up of production lines for new KULR ONE configurations. It expects R&D expenses to decrease beginning in the fourth quarter of 2026 and further in 2027, as production-line bring-up and new pack development complete in the fourth quarter and the battery management system and charger programs complete in early 2027.

Selling, general and administrative expenses decreased 3% to $5.91 million from $6.06 million a year earlier. The company attributed the decline primarily to the conclusion of strategic investment and corporate development activities and lower accounting, legal, consulting, marketing and other professional fees, partially offset by higher personnel costs from new hires and costs associated with a new facility. Loss from operations was $11.00 million, compared with $8.74 million a year earlier, primarily driven by the increase in R&D.

GAAP net income was $4.47 million, or $0.10 a share, versus a net loss of $6.97 million, or $0.17 a share, a year earlier. The company said the result was driven by a $15.8 million non-recurring change in the fair value of digital assets, reflecting the recovery in the value of its Bitcoin from June 30, 2026 to the dates of sale, and does not reflect operating profitability.

During the quarter, KULR sold all of its Bitcoin holdings, totaling 1,099.09 BTC, for net proceeds of approximately $80.1 million, and used a portion of the proceeds to repay in full the $20.0 million loan under its Coinbase credit facility. It exited Bitcoin mining operations effective July 2026 and said it no longer holds or intends to acquire or mine digital assets. Cash was $54.5 million as of September 30, 2026, with no outstanding borrowings and no digital assets, after a $12.8 million cash balance at June 30. The ATM program is paused through December 31, 2026.

In November 2026 the company implemented a reduction in force expected to generate approximately $4 million in annualized cost savings upon full implementation. It expects severance and related costs of $0.35 million to $0.65 million, substantially all of which will be recognized in the fourth quarter of 2026, and said the restructuring is expected to be substantially completed by the end of 2026. Chief Financial Officer Mike Kimel said the company expects R&D and SG&A to decline as it scales product revenue, and that it is focused on improving gross margins as production volume increases and repeat orders replace initial production builds.