second quarter 2026
Filed Aug 13, 2026KULR Technology Group Reports Second Quarter 2026 Financial Results
Revenue decreased 43%, gross margin was (31)%, and loss from operations increased 19%. Net loss was $21,970,816, including a $10,591,667 change in fair value loss associated with bitcoin holdings.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenueother | $2,080,177 | – | decreased 43% |
| Gross marginother | (31)% | – | – |
| Selling, General and Administrative (SG&A) Expensesother | $6,307,097 | – | decreased 9% |
| R&D Expensesother | $2,985,659 | – | increased 23% |
| Loss from operationsother | $11,204,578 | – | increased 19% |
| Net lossother | $21,970,816 | – | – |
| Net loss per shareother | a net loss of $0.47 per share | – | – |
| Change in fair value loss associated with the Company’s bitcoin holdingsother | $10,591,667 | – | – |
Capital returns
- Management stated that the Company did not issue any shares through the ATM during the first half of 2026.
What drove it
- The net loss was primarily driven by a $10,591,667 change in fair value loss associated with the Company’s bitcoin holdings.
- Management said it continued sharpening its focus on KULR’s core energy platform and simplifying the business around its highest-priority growth opportunities.
- Management said its actions since quarter-end are designed to reduce balance-sheet volatility, improve financial visibility, and concentrate capital and execution on scaling the core business.
Concerns
- Revenue decreased 43% to $2,080,177.
- Gross margin was (31)%, compared to 20% in the same year-ago period.
- Loss from operations increased 19% to $11,204,578.
- R&D expenses increased 23% to $2,985,659.
- Bitcoin-related fair-value volatility had a significant impact on reported results, according to management.
What to watch
- Revenue trajectory in the core energy platform following management’s focus on highest-priority growth opportunities.
- Gross-margin performance after the reported (31)% gross margin.
- Execution of the reduction in Bitcoin holdings and the resulting effect on balance-sheet volatility.
- Capital allocation following the exit from Bitcoin mining and full repayment of the Coinbase loan.
- Whether the Company maintains its stated disciplined approach to shareholder dilution.
Balance sheet and cash flow
- Cash balance of $12.8 million as of June 30, 2026.
- Since quarter-end, the Company repaid the Coinbase loan in full.
- Since quarter-end, the Company exited Bitcoin mining and began reducing its Bitcoin holdings.
Analysis
KULR reported a weaker second quarter of 2026, with revenue decreasing 43% to $2,080,177 from $3,652,471 in the same year-ago period. The filing did not provide segment revenue, customer detail, backlog, or an explicit explanation for the revenue decline. Management emphasized a sharper focus on the core energy platform and its highest-priority growth opportunities.
Profitability deteriorated materially. Gross margin was (31)% versus 20% in the same year-ago period, while loss from operations increased 19% to $11,204,578 from $9,451,040. SG&A expenses decreased 9% to $6,307,097, but R&D expenses increased 23% to $2,985,659. The combination of lower revenue, negative gross margin, and higher R&D spending is the central operating issue in the reported period.
The Company recorded a net loss of $21,970,816, or a net loss of $0.47 per share, compared with net income of $8,142,149, or net income of $0.22 per share, in the year-ago period. The filing identifies a $10,591,667 change in fair value loss associated with bitcoin holdings as the primary driver of the quarterly net loss. Management said this volatility made the underlying performance of the battery business more difficult for shareholders to assess.
Since quarter-end, management said KULR exited Bitcoin mining, repaid the Coinbase loan in full, and began reducing Bitcoin holdings. Management characterized these measures as intended to reduce balance-sheet volatility, improve financial visibility, and direct capital and execution toward scaling the core business. It also stated that no shares were issued through the ATM during the first half of 2026.
KULR reported a cash balance of $12.8 million as of June 30, 2026. The release provided no forward financial guidance, so the next reported indicators are revenue recovery, gross-margin improvement, operating-loss progression, and the effects of the stated Bitcoin reduction and loan repayment on financial visibility and capital allocation.
Management, verbatim
The Bitcoin treasury strategy provided meaningful financial flexibility, but its volatility also had a significant impact on our reported results, including approximately $10.6 million of non-cash change in fair value losses, making the underlying performance of our battery business more difficult for shareholders to assess.
Mike Kimel, Chief Financial Officer
Since quarter-end, we have exited Bitcoin mining, repaid the Coinbase loan in full, and begun reducing our Bitcoin holdings in a deliberate and disciplined manner.
Mike Kimel, Chief Financial Officer
Not in the filing
stated, not guessed- GAAP or non-GAAP designation for the reported financial metrics.
- Prior-quarter comparisons for revenue, gross margin, SG&A expenses, R&D expenses, loss from operations, net loss, and net loss per share.
- Reported gross profit.
- Reported operating cash flow.
- Reported free cash flow.
- Debt balance as of June 30, 2026.
- Amount of the Coinbase loan that was repaid.
- Bitcoin holdings balance and value as of June 30, 2026.
- Share repurchases and dividends.
- Segment revenue and segment-level comparisons.
- Revenue, margin, expense, tax-rate, or other forward guidance.
- Tax rate.
- Basic or diluted designation for net loss per share.
- Prior outlook for comparison.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.