KULR Technology Group (NYSEAMERICAN:KULR) executives used the company’s fourth-quarter and full-year 2025 earnings call to address a difficult year for shareholders while outlining a 2026 plan centered on scaling its KULR ONE battery platform, improving margins through volume and automation, and prioritizing near-term growth in autonomous systems.
Management acknowledges 2025 losses and one-time items
Chief Executive Officer Michael Mo opened the call by saying 2025 was “a difficult year” for the company and its shareholders, noting that the share price declined significantly and KULR recorded a net loss of approximately $62 million. Mo said the majority of the loss was driven by “one-time and non-cash items,” while emphasizing that it was still a loss felt by investors, employees, and partners.
Revenue grew 51%, but focus shifts to battery platform sales
Mo said revenue was $16.1 million in 2025, up 51%, with most of that growth coming from Bitcoin mining and battery research grant dollars. He emphasized that the key measure for 2026 is “battery platform revenue,” which he defined as product sales plus contract services tied to the battery platform. Mo said battery platform revenue was $7.3 million in 2025 and described it as the commercial baseline the company plans to scale from in 2026.
Chief Financial Officer Shawn Canter echoed the revenue growth and said 2025 “marked a transition to a scalable product-focused model.” Canter said KULR generated over $16 million in revenue in 2025, a 51% increase over the prior year, with product revenue up 39% and services revenue down 50%.
Canter provided additional customer metrics:
- Product revenue came from 47 customers in 2025, with revenue per customer of approximately $108,000, or 56% higher than 2024.
- Services revenue came from 34 customers, the same as 2024, with revenue per customer of approximately $65,000, or 50% lower than 2024.
On profitability, Canter said KULR’s net loss for the year was approximately $62 million and that about $33 million of the loss was tied to non-cash expenses, representing almost 55% of the total. He said the largest non-cash item was the roughly $14 million mark-to-market expense due to the decline in Bitcoin’s price, while noting that Bitcoin’s rising price in the second and third quarters contributed non-cash gains in those periods.
Gross margin pressure and the plan to improve it
Mo addressed the company’s 2025 product sales gross margin of 1%, attributing the low margin to early-stage manufacturing ramp dynamics. He cited three drivers: higher material pricing at current volumes, fixed facility costs spread across low throughput, and engineering/design costs concentrated in early production runs for new customer programs.
Mo said KULR does not view 2025’s margin profile as “the end state of the business,” and outlined actions underway to improve margins:
- Shifting early prototype programs to production, including several KULR ONE Air drone battery programs.
- Installing an automated production line in the second half of 2026 to reduce per-unit labor costs and improve yield consistency.
- Continuing to mature the modular KULR ONE platform to reduce onboarding engineering/design work as more applications share the same architecture.
Mo also described the company’s headquarters facility as a vertically integrated battery production center spanning design, prototyping, cell screening, qualification tests, and volume production, and said the company is working with domestic battery cell suppliers to strengthen an NDAA-compliant supply chain.
Autonomous systems seen as the clearest near-term momentum
In response to a question about market momentum, Mo said the clearest near-term production momentum is in KULR ONE Air for autonomous platforms, which he said has expanded beyond airborne drones to land, surface, and subsea maritime applications. He said the company has more than 20 active customer development programs in that category and has shipped “thousands” of drone battery packs to date.
Mo added that KULR is engaged with two leading unmanned aerial system companies in the U.S., and that the combined production volume target is “to approach 10,000 packs per month” in the second half of 2026. He reiterated multiple times during Q&A that KULR’s 2026 focus is to “build and sell more KULR ONE batteries,” with management attention centered on KULR ONE Air due to what he described as the highest growth potential in 2026.
Mo also pointed to NDAA compliance as a procurement requirement for government and defense-adjacent customers and discussed a joint development collaboration with Hylio to design, prototype, qualify, and manufacture NDAA-compliant battery systems in Texas, alongside U.S.-made drones.
Telecom production underway; AI data center opportunity framed as longer-dated
Mo provided an update on telecom and energy infrastructure tied to a five-year preferred battery supply agreement awarded by Caban Energy in January 2026. He said KULR has taken full control of battery manufacturing equipment and process, commenced production, and delivered production battery packs to Caban in the first quarter of 2026. Mo said the company plans to consolidate full operations into its Texas facility in the second quarter to improve efficiency, reduce overhead, and centralize operations. He added that KULR has set up the supply chain for 48-volt, 100 amp-hour battery production and is focused on meeting growing customer demand.
Beyond Caban, Mo said KULR is in active engagements with telecom operators and service providers directly with a KULR ONE Battery-as-a-Service offering, describing it as a battery subscription approach intended to lower total cost of ownership for operators replacing lead-acid batteries with lithium-ion.
On AI data center backup power, Mo said KULR began developing its AI data center PBU product in 2025 and joined the Open Compute Project as a platinum member at the end of 2025 to participate in working groups defining next-generation power standards. He said 2026 will focus on working with cell providers on UL 9540 certification and hyperscaler integration work, while characterizing 2027 as the year the company could see revenue opportunities in that segment.
In a separate question about three initiatives—Hylio, Caban, and AI data center standards work—Mo said both Hylio and Caban are expected to contribute revenue in 2026. He said Caban is already in production, while Hylio revenue is expected to follow qualification and production milestones, with expectations for Hylio revenue in the second half of 2026. The AI data center PBU effort, he said, is “more like a 2027 business.”
About KULR Technology Group (NYSEAMERICAN:KULR)
KULR Technology Group, Inc, through its subsidiary, KULR Technology Corporation, develops and commercializes thermal management technologies for electronics, batteries, and other components applications in the United States. It provides lithium-ion battery thermal runaway shields; automated battery cell screening and test systems; cellchecks; safecases; fiber thermal interface materials; phase change material heat sinks; internal short circuit devices; and CRUX cathodes. The company's technologies are used in electric vehicles, energy storage, battery recycling transportation, cloud computing, and 5G communication devices.
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