KULR Technology Group (KULR) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue surged 98% year-over-year to $4.85 million, driven by strong product sales, new grant revenue, and customer traction in battery and energy systems platforms.

• Gross margin improved to 29% from 8% year-over-year, with product sales margin at 26% and grant revenue contributing 100% margin.

• Operating loss narrowed by 22% year-over-year, reflecting improved cost discipline and leverage, while net loss widened to $28.1 million due to a $20.8 million non-cash mark-to-market loss on bitcoin holdings.

• Expanded manufacturing capacity with a new 25,000 sq ft facility and acquisition of Caban Systems assets to support scaling battery production.

• Focus remains on scaling the battery platform, converting customer traction into margin-accretive revenue, and leveraging new board expertise.

Financial highlights

• Product sales rose 84% to $2.13 million; mining of digital assets revenue grew 165% to $0.66 million; grant revenue of $1.37 million recognized for the first time.

• Gross profit margin improved to 29% from 8% year-over-year.

• Operating expenses decreased 13% to $8.8 million, with R&D down 28% and SG&A down 9% year-over-year.

• Cash at quarter-end was $7.7 million, with $73.9 million in Bitcoin holdings; cash balance was $19.0 million as of May 13, 2026.

• Working capital at March 31, 2026 was $6.9 million, down from $19.2 million at year-end.

Outlook and guidance

• New production lines to be operational in Q3, targeting 10,000 battery packs per month and margin improvement from automation and in-house capabilities.

• Multiple KULR ONE Air programs transitioning from development to production, supporting second half 2026 revenue.

• Management expects R&D expenses to increase as operations expand; cash, Bitcoin holdings, and available credit expected to cover obligations for the next twelve months.