Key Highlights

  • Net income was USD 4.5 million, or USD 0.10 per share, in the third quarter ended September 30, 2026, against a net loss of USD 7.0 million, or USD 0.17 per share, a year earlier.
  • Loss from operations widened to USD 11.0 million from USD 8.7 million, while a USD 15.8 million change in Fair Value of digital Assets lifted other income to USD 15.7 million.
  • Revenue rose 197% to USD 7.4 million, with product sales of USD 6.5 million, and two battery module orders from new customers in Japan made up about 88% of product sales.
  • Unrestricted cash was USD 54.5 million at September 30, 2026, after the company sold all 1,099.09 Bitcoin for net proceeds of about USD 80.1 million and repaid a USD 20.0 million loan.

Digital Asset Gains Turn an Operating Loss Into a Profit

KULR Technology Group (NYSEAMERICAN:KULR) filed its Quarterly Report on November 10, 2026. Loss from continuing operations before other items was USD 11.0 million, but other income of USD 15.7 million, driven by a USD 15.8 million fair value gain on digital assets, produced income from continuing operations of USD 4.7 million. After a USD 220,103 loss from discontinued operations, Net Income was USD 4.5 million. For nine months, the net loss was USD 46.5 million, or USD 1.01 per share, compared with USD 17.6 million, because digital assets swung to a USD 15.6 million fair value loss. The quarterly profit therefore reflects asset revaluation, not the core business.

Two Japanese Orders Drive a 197% Revenue Jump

Total revenue was USD 7.4 million versus USD 2.5 million. Product sales rose 299% to USD 6.5 million, led by two KULR ONE K1M battery modules orders for energy storage programs worth about USD 3.4 million and USD 2.3 million. Contract services fell 38% to USD 226,040, and grant revenue rose 36% to USD 681,623. Cost of revenue of USD 7.1 million left Gross Profit at USD 269,828 versus USD 421,350, and product sales carried a negative gross Margin of 3%. The company designs battery systems for drones, space and defense, and Data Center backup power, and recorded its first KULR ONE Max module revenue in the quarter.

Bitcoin Exit, Cost Cuts and a Delaware Validation Petition

The company sold its entire Bitcoin holding in the quarter, exited Bitcoin Mining in July 2026 and now reports mining as discontinued operations. Research and Development rose 116% to USD 5.0 million on new autonomous battery programs and Texas production line bring-up, and management expects non-reimbursable spending to fall from the fourth quarter. A November 2026 workforce reduction targets about USD 4 million of annualized savings, with USD 0.35 million to USD 0.65 million of severance costs. Separately, the company filed a petition on October 23, 2026 asking Delaware's Court of Chancery to validate certain past corporate acts, including its reverse split, and said no assurance can be given on the outcome. Its at-the-market program is paused through December 31, 2026.

Where Things Stand

The profit came from revaluation, not operations. KULR Technology Group (NYSEAMERICAN:KULR) lost USD 11.0 million at the operating line and burned USD 32.3 million of cash from continuing operations over nine months, so the USD 4.5 million quarterly profit depends on a digital asset gain, and no Bitcoin remains on the balance sheet. Revenue growth is real but concentrated in two orders. The Balance Sheet is liquid, with USD 54.5 million of unrestricted cash, and costs are being cut. Next markers are the Delaware ruling, fourth quarter product orders and the pace of the R&D decline.