KULR Stock Jumps 20.55% as Revenue Grows 197% Despite Lower Margins
Key Facts
KULR Technology shares rose 20.55% to $1.96 in Tuesday trading after the company reported third-quarter revenue growth of 197% year over year. The jump followed results for the quarter ended September 30, 2026, with revenue of $7.40 million versus $2.49 million a year earlier. The company linked the sales expansion to its KULR ONE platform, which includes energy-storage solutions and batteries for autonomous systems customers. Chief Executive Michael Mo said product sales nearly quadrupled year over year. The stock had closed at $1.63 on November 9.
A large share of product sales came from two orders by new customers in Japan, worth a total of about $5.7 million, or 88% of product sales during the quarter. The orders comprised KULR ONE K1M battery units for energy-storage system programs, valued at about $3.4 million and $2.3 million, respectively. The company said it served 22 product customers in the quarter, compared with 18 in the same period a year earlier. The figures reflect a broader customer base alongside concentration of product sales in a limited number of large orders. Mo said sales growth came from the KULR ONE platform.
Revenue growth did not bring improved margins: gross margin was 4%, down from 17% in the corresponding quarter of 2025. The company attributed the decline mainly to low margins on initial production runs of a new KULR ONE Max configuration, as well as gross losses on some custom battery-assembly programs. Research and development expenses rose to $5.02 million from $2.32 million a year earlier. The quarter's expenses included $0.69 million in costs offset by revenue from a Texas Space Commission grant. The operating loss widened to $11.00 million from $8.74 million, and the company said higher research and development spending was the primary driver.
KULR reported net income of $4.47 million, or $0.10 per basic and diluted share, compared with a net loss of $6.97 million, or $0.17 per share, a year earlier. However, the quarter's net income included a one-time gain of $15.8 million from a change in the fair value of digital assets. The company said the gain did not reflect its operating profitability. According to Investing.com data, earnings per share topped analysts' estimate of a loss of $0.08 per share. Revenue of $7.4 million, by contrast, fell short of the $10 million consensus estimate.
The company ended the quarter with $54.5 million in unrestricted cash and said it had no outstanding borrowings or digital assets on September 30. It had sold its entire Bitcoin holdings during the quarter for net proceeds of about $80.1 million, using part of them to repay a $20 million loan. This reflected a shift in its financial position after it had held digital assets, while the company said the revaluation gain on those assets contributed to the quarter's net income. It also announced the suspension of its at-the-market offering program through December 31, 2026. The decision limits use of the program during the period the company set for the suspension.
KULR expects the workforce reduction it implemented in November to generate annual savings of about $4 million once fully implemented. It said non-reimbursable research and development expenses are expected to begin declining in the fourth quarter of 2026 and fall further in 2027. The company cited the expected completion in the fourth quarter of most production-line preparation activities and new battery development programs. At the same time, the company expects 2027 to be an important year for increasing production of NDAA-compliant battery solutions for autonomous systems customers. Mo said the company's goal in 2027 is to increase revenue while lowering costs.