KULR Technology Group NYSEAMERICAN: KULR said it made progress in the first quarter of 2026 on revenue growth, margin improvement and cost discipline, while laying out plans to expand battery manufacturing capacity and pursue opportunities across drones, space, maritime systems, data centers and telecom infrastructure.
On the company’s earnings call, KULR reported total revenue of $4.8 million for Q1 2026, up 98% from $2.4 million in Q1 2025. Product sales increased 84% year over year to $2.1 million. The company said overall blended gross margin improved to approximately 29%, compared with 8% in the prior-year quarter, while product sales gross margin was 26%.
The company also reported that its total loss from operations decreased approximately 22% year over year. KULR said it had approximately $19 million in cash as of the call date and approximately 1,085 bitcoin in its treasury. The company said it is committing all financial resources to its battery business and is not acquiring bitcoin with cash, adding that any bitcoin acquisitions are coming only through existing bitcoin mining contracts.
“One quarter does not make a turnaround, but Q1 is evidence that the vision and discipline we commit to for 2026 is starting to translate into measurable results,” Michael said on the call. He described the company’s core objective for 2026 as scaling the KULR ONE platform to “build more batteries” and “sell more batteries” while converting customer traction into margin-accretive revenue.
Battery Platforms Gain Traction Across Drones, Space and Maritime
KULR highlighted its KULR ONE Air platform as a key area of momentum, particularly with U.S. and NDAA-compliant drone manufacturers. Michael said the company’s S3P lift battery is seeing “broad adoption,” and that KULR expanded its lift pack family during the quarter with additional configurations aimed at long-duration flight applications.
The company said it is also advancing battery management systems, or BMS, for 6S, 12S and 18S configurations targeting large UAV platforms. Michael said the design of a mil-spec EMI-resistant BMS for drone-based defense applications has been completed. Customer development activity is increasing across defense, aerospace, space and unmanned systems, he added, with particularly strong growth in UAS battery programs.
During the Q&A portion of the call, Stuart Smith, KULR’s Head of Investor Relations, asked how many KULR ONE Air programs were moving from prototype or development work into production. Michael said multiple programs are in transition, noting that the S3P lift pack is in production, the expanded lift family is moving from design into qualification with customers, and the large UAV BMS systems remain on track with customers. He said KULR has not disclosed a program-by-program count.
KULR also said it has expanded the KULR ONE platform into humanoid robotics, where it is engaged with two customers, and into larger class two and class three drones. Michael said the company is exploring configurations with NDAA-compliant solid-state and lithium metal battery cell providers capable of exceeding 380 Wh/kg.
On the space side, KULR said its KULR ONE Space platform was selected by several additional LEO and GEO missions during the quarter. The company said its XLT and Reach series batteries remain in active deployment across multiple satellite programs. Michael said recent investments in the company’s BMS are enabling higher radiation tolerance and improved current-carrying capabilities.
KULR also updated investors on KULR ONE Triton, its maritime battery family. The company said Triton is being developed and tested in partnership with several OEMs and is intended to bring aerospace-grade and Navy 9310 reliability standards to autonomous surface and subsea systems. KULR said it is testing Triton across solid-state, nickel metal hydride and small-format lithium-ion chemistries.
Data Center and Telecom Opportunities
KULR said it continues to advance KULR ONE MAX, its 48-volt high-power battery backup unit platform targeting edge, AI data center and telecom infrastructure applications. Michael said the industry is shifting as AI workloads grow and battery backup moves closer to computing racks, requiring higher safety standards, higher voltage handling and faster response than conventional backup systems.
The company said it attended the Open Compute Project EMEA Summit during the quarter and met with major data center OEMs. Michael said KULR’s focus was to license its propagation-resistant and thermal management intellectual property for data center battery backup unit applications.
KULR also described an opportunity in telecom infrastructure, where Michael said 5G rollouts and rising uptime requirements are pushing operators away from legacy lead-acid systems toward lithium-ion. He said the company has more than half a dozen engagements with telecom service providers around KULR ONE battery-as-a-service. KULR delivered production battery packs against existing supply commitments during the quarter and said it remains on track with manufacturing consolidation milestones discussed on its prior call.
Capacity Expansion and Cost Discipline
KULR said it signed a new lease for an additional 25,000 square feet of manufacturing space to support new battery production lines and high-volume customer programs. Michael said the new production lines will be installed at the new facility in Q2 and are expected to start production in Q3. The company said it expects capacity to produce 10,000 battery packs per month.
In response to a question from Smith about the automated production line, Michael said the company expects the added capacity to lower battery unit economics and improve margins. He also said KULR has brought a copper busbar laser cutter in-house, which he said should reduce lead times and costs for high-performance components. KULR is also putting UN 38.3 certification infrastructure in-house to help build, qualify and ship batteries more quickly.
On costs, KULR said R&D expense declined and SG&A expense also fell year over year, though the call included two slightly different figures for the R&D and SG&A declines. Michael said total operating expenses, excluding a $500,000 credit loss, declined 24% year over year. He said the company will continue to be disciplined on its cost structure while investing in growth.
Asked about cash usage and capital allocation priorities for the rest of 2026, Michael said the focus remains on “building more batteries and selling more batteries.” He said cash usage will include capital expenditures for equipment and facilities, working capital for inventory, SG&A, and continued investment in personnel.
Board Changes and Market Positioning
KULR also discussed board changes announced April 28. The company appointed Ben Frank of Microsoft and Dr. Mike Kimel, while streamlining the board to three members, two of whom are independent. Michael said the smaller board is intended to reduce SG&A and ensure each director contributes expertise needed as KULR moves from platform development into monetization.
Frank is Director of Workforce AI Solutions Engineering at Microsoft, where he leads engineering teams supporting enterprise customers deploying AI platforms within Microsoft’s Energy and Resource organization. Michael said Frank’s experience is relevant as KULR works to build KULR ONE as an ecosystem platform.
Dr. Kimel has more than 30 years of experience as a corporate executive, consultant and academic, with a focus on pricing strategies and margin performance. Michael said Kimel’s appointment aligns with KULR’s 2026 priorities around product revenue growth, higher margins and reduced costs.
Michael also said recent consolidation in the UAV supply chain validates KULR’s focus on domestic, vertically integrated battery capabilities. He said the industry is consolidating around NDAA compliance, domestic vertical integration and a complete component ecosystem. KULR said it already operates more than 31,000 square feet of vertically integrated R&D and production space in Webster, Texas, with the additional 25,000 square feet of manufacturing capacity being added in Q2.
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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