KULR's Revenue Surges 80%, But Bitcoin Bet Widens Losses to $17.6M

TL;DR

**KULR's Bitcoin gamble is a high-stakes play that's ballooning losses despite revenue growth, making it a speculative bet on crypto, not just tech innovation.**

AI Summary

KULR Technology Group, Inc. reported a significant increase in revenue for the nine months ended September 30, 2025, reaching $13,306,443, up from $7,366,887 in the prior year, representing an 80.6% increase. Despite this revenue growth, the company's net loss widened to $17,638,424 for the nine months ended September 30, 2025, compared to a net loss of $12,903,168 for the same period in 2024. This increased loss was driven by a substantial rise in operating expenses, with selling, general, and administrative expenses soaring to $19,836,875 from $11,542,820, and research and development costs increasing to $7,209,664 from $3,492,144. A key business change is KULR's strategic shift to a "Bitcoin+ Treasury company" since late 2024, committing up to 90% of excess cash to Bitcoin acquisition, which resulted in a $14,456,623 change in fair value of digital assets for the nine months ended September 30, 2025. The company also executed a 1-for-8 reverse stock split on June 23, 2025. Risks include the highly competitive industry, reliance on future financing, and potential adverse effects from the "Tariff War" on its supply chain.

Why It Matters

KULR's aggressive pivot to a 'Bitcoin+ Treasury company' and its commitment to allocating up to 90% of excess cash to Bitcoin acquisition fundamentally alters its risk profile and investment thesis, moving it beyond a pure-play frontier technology firm. For investors, this means KULR's financial performance is now heavily tied to cryptocurrency volatility, a significant departure from its core battery and AI Robotics business. Employees and customers might face uncertainty regarding the company's long-term focus and stability if the Bitcoin strategy doesn't yield expected returns. In a competitive landscape for energy storage and AI, this strategic shift could either differentiate KULR or distract from its technological advancements, potentially impacting its market position against more focused competitors.

Risk Assessment

Risk Level: high — The risk level is high due to KULR's strategic shift to a "Bitcoin+ Treasury company," committing up to 90% of its excess cash to Bitcoin acquisition, which introduces significant cryptocurrency market volatility. This is evidenced by the $14,456,623 change in fair value of digital assets for the nine months ended September 30, 2025, and the substantial increase in net loss to $17,638,424, indicating that the Bitcoin strategy has not yet translated into profitability despite revenue growth.

Analyst Insight

Investors should approach KULR with extreme caution, recognizing it as a highly speculative investment primarily driven by its Bitcoin treasury strategy rather than its core technology business. Consider reducing exposure if you are not comfortable with significant cryptocurrency price swings, or only allocate a small, high-risk portion of your portfolio if you are bullish on both KULR's tech and Bitcoin's long-term prospects.

Financial Highlights

debt To Equity

0.09

revenue

$13,306,443

operating Margin

N/A

total Assets

$156,062,814

total Debt

$8,105,188

net Income

-$17,638,424

eps

N/A

gross Margin

N/A

cash Position

$20,588,596

revenue Growth

+80.6%

Revenue Breakdown

Key Numbers

• $13.3M — Revenue (Increased 80.6% for the nine months ended September 30, 2025, from $7.37M in 2024.)
• $17.6M — Net Loss (Widened for the nine months ended September 30, 2025, from $12.9M in 2024.)
• $14.46M — Change in fair value of digital assets (Positive impact on other income for the nine months ended September 30, 2025.)
• $19.84M — Selling, General, and Administrative Expenses (Increased significantly for the nine months ended September 30, 2025, from $11.54M in 2024.)
• $7.21M — Research and Development Expenses (Increased for the nine months ended September 30, 2025, from $3.49M in 2024.)
• $20.59M — Cash (Decreased from $29.83M at December 31, 2024, to September 30, 2025.)
• $112.54M — Digital Assets (Increased substantially from $20.28M at December 31, 2024, to September 30, 2025.)
• $85.5M — Net Cash Used In Investing Activities (Primarily due to $79.7M in purchases of digital assets for the nine months ended September 30, 2025.)
• $107.3M — Proceeds from ATM equity financing (Significant capital raised for the nine months ended September 30, 2025.)
• 1-for-8 — Reverse Stock Split Ratio (Effected on June 23, 2025.)

Key Players & Entities

• KULR Technology Group, Inc. (company) — registrant
• Bitcoin (other) — primary asset in treasury program
• NYSE American LLC (other) — exchange where common stock is registered
• SEC (regulator) — Securities and Exchange Commission
• June 23, 2025 (date) — date of reverse stock split
• September 30, 2025 (date) — end of quarterly period
• December 31, 2024 (date) — end of prior fiscal year
• 45,674,420 (dollar_amount) — shares outstanding as of November 14, 2025
• 408-663-5247 (other) — registrant's telephone number
• 555 Forge River Road, Webster, Texas 77598 (other) — address of principal executive offices

FAQ

Risk Factors

• Reliance on Future Financing [high — financial]: The company's ability to continue as a going concern is dependent on its ability to secure future financing. The significant increase in net loss and operating expenses, coupled with a decrease in cash from $29.8M to $20.6M, highlights the need for ongoing capital infusion.
• Competitive Industry Landscape [medium — market]: KULR operates in a highly competitive industry. While revenue has grown, the widening net loss indicates that increased sales are not yet translating into profitability, suggesting intense pricing pressures or high costs of customer acquisition.
• Supply Chain Disruptions (Tariff War) [medium — operational]: The company faces potential adverse effects on its supply chain due to the ongoing 'Tariff War'. This could lead to increased costs or delays in obtaining necessary components, impacting production and delivery timelines.
• Volatility of Digital Assets Investment [high — financial]: The strategic shift to a 'Bitcoin+ Treasury company' exposes KULR to significant volatility in the value of digital assets. The $14.46M change in fair value of digital assets for the nine months ended September 30, 2025, demonstrates this risk, which can impact financial results unpredictably.

Industry Context

KULR operates in industries related to advanced cooling solutions and potentially digital asset management. The advanced cooling sector is competitive, requiring continuous innovation and efficient supply chains. The recent strategic pivot towards becoming a 'Bitcoin+ Treasury company' introduces exposure to the highly volatile cryptocurrency market, a sector with evolving regulatory landscapes and significant market fluctuations.

Regulatory Implications

The company's strategic shift to holding digital assets may subject it to evolving cryptocurrency regulations, which can vary significantly by jurisdiction and are subject to change. Compliance with these regulations, including reporting and tax implications, will be crucial.

What Investors Should Do

1. Monitor Digital Asset Performance
2. Analyze Operating Expense Growth
3. Evaluate Cash Burn Rate and Future Financing Needs
4. Assess Impact of Reverse Stock Split

Key Dates

• 2025-09-30: Nine Months Ended — Reporting period for significant revenue growth but also a widened net loss, increased operating expenses, and substantial investment in digital assets.
• 2025-06-23: 1-for-8 Reverse Stock Split — Aims to increase the per-share market price of the common stock, potentially making it more attractive to investors and meeting exchange listing requirements.
• 2024-12-31: Year End — Prior year-end balance sheet figures for comparison, showing a higher cash position ($29.8M vs $20.6M) and lower digital asset holdings ($20.3M vs $112.5M).

Glossary

Digital Assets

Refers to cryptocurrencies or other digital representations of value that can be traded or transferred. (KULR has significantly increased its holdings in digital assets, making their fair value fluctuations a major factor in the company's financial performance.)

ATM Equity Financing

At-the-market equity offering where a company sells shares of its stock on a public exchange over a period of time. (KULR raised $107.3M through this method, indicating a reliance on equity markets for capital.)

Reverse Stock Split

A corporate action to reduce the number of outstanding shares of a company, typically to increase the share price. (KULR executed a 1-for-8 reverse stock split, which impacts share count and per-share metrics but not the company's overall market capitalization.)

Bitcoin+ Treasury Company

A company that holds a significant portion of its treasury reserves in Bitcoin or other digital assets. (KULR's strategic shift to this model means its financial health is now closely tied to the performance of digital assets.)

Year-Over-Year Comparison

For the nine months ended September 30, 2025, KULR Technology Group reported an 80.6% increase in revenue to $13.3M, a significant improvement from $7.37M in the prior year. However, this top-line growth was overshadowed by a widening net loss, which grew from $12.9M to $17.6M. This was primarily driven by a substantial increase in operating expenses, with SG&A up 71.9% and R&D up 106.2%. A major shift in strategy to a 'Bitcoin+ Treasury company' led to a dramatic increase in digital assets to $112.5M from $20.3M, contributing a $14.46M gain in fair value but also introducing significant market risk. Cash reserves also declined from $29.8M to $20.6M.

Key Financial Figures

• $0.0001 — f its shares of common stock, par value $0.0001 per share, ("Common Stock"), on the bas

Filing Documents

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– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements . 4 Condensed Consolidated Balance Sheets as of September 30, 2025 (unaudited) and December 31, 2024 4 Unaudited Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2025 and 2024 5 Unaudited Condensed Consolidated Statement of Changes in Stockholders' Equity for the Three and Nine Months Ended September 30, 2025. 6 Unaudited Condensed Consolidated Statement of Changes in Stockholders' Equity (Deficit) for the Three and Nine Months Ended September 30, 2024 7 Unaudited Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2025 and 2024 8 Notes to Unaudited Condensed Consolidated Financial Statements 10

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. 32

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk . 50

Controls and Procedures

Item 4. Controls and Procedures . 50

- OTHER INFORMATION

PART II - OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings . 51

Risk Factors

Item 1A. Risk Factors . 51

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 51

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities . 51

Mine Safety Disclosures

Item 4. Mine Safety Disclosures. 51

Other Information

Item 5. Other Information . 51

Exhibits

Item 6. Exhibits . 52

SIGNATURES

SIGNATURES 53 Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED BALANCE SHEETS September 30, December 31, 2025 2024 (unaudited) Assets Current Assets: Cash $ 20,588,596 $ 29,831,858 Accounts receivable billed, current portion 2,956,726 1,984,518 Accounts receivable unbilled, current portion 490,223 660,672 Grant receivable 501,032 — Inventory 784,609 545,467 Inventory deposits 457,892 — Prepaid expenses and other current assets 2,749,049 1,141,540 Total Current Assets 28,528,127 34,164,055 Digital assets 112,539,271 20,281,184 Digital assets held as collateral 7,983,990 — Accounts receivable billed, non-current portion — 1,446,489 Accounts receivable unbilled, non-current portion 1,180,129 — Property and equipment, net 3,461,267 3,676,544 Equipment deposits 59,763 1,355,174 Security deposits 48,158 48,158 Intangible assets, net 470,377 577,099 Operating lease right-of-use assets, net 1,476,478 1,216,772 Finance lease right-of-use asset, net 5,826 6,215 Deferred financing costs 309,428 155,497 Total Assets $ 156,062,814 $ 62,927,187 Liabilities and Stockholders' Equity Current Liabilities: Accounts payable $ 1,237,837 $ 2,061,266 Accrued expenses and other current liabilities 1,300,059 1,160,446 Loan payable 3,800,000 — Accrued issuable equity 152,740 420,427 Operating lease liabilities, current portion 414,436 493,468 Finance lease liability, current portion 2,526 2,463 Notes payable, net of discount, current portion — 494,796 Deferred revenue 21,489 32,768 Total Current Liabilities 6,929,087 4,665,634 Operating lease liabilities, non-current portion 1,174,152 818,750 Finance lease liability, non-current portion 1,949 3,852 Other non-current liabilities — 10,966 Total Liabilities 8,105,188 5,499,202 Commitments and contingencies (Note 13) Stockholders' Eq

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