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KULR Technology Group Inc. (AMEX:KULR) stock surged Tuesday after the company reported strong third-quarter 2026 results, driven by rising demand for its battery and energy storage systems.
The company develops battery and power solutions for space, defense, drones, data centers and robotics.
KULR had a market capitalization of $75.4 million at Monday's close. Trading volume topped 3.7 million shares Tuesday, well above its 100-day average of 788,024 shares.
Third-quarter revenue jumped 197% year over year to $7.40 million from $2.49 million.
Product sales surged 299% to $6.49 million, accounting for 88% of total revenue.
However, gross margin fell to 4% from 17% a year earlier.
Higher production costs and lower margins on initial KULR ONE Max battery systems weighed on profitability.
Research and development expenses more than doubled to $5.02 million from $2.32 million as the company invested in new battery programs.
KULR reported net income of $4.47 million, or 10 cents per share, compared with a loss of $6.97 million, or 17 cents per share, a year earlier.
However, a nonrecurring $15.8 million gain from changes in the fair value of digital assets drove the profit rather than operating performance.
Meanwhile, KULR's operating loss widened to $11 million from $8.74 million a year earlier, primarily due to higher research and development spending.
Founder and CEO Michael Mo highlighted strong product sales, a return to positive gross margins from the second quarter and efforts to control costs.
KULR reported growing demand for its KULR ONE battery platform, including energy storage systems supporting power-as-a-service projects in Japan.
The company served 22 product customers during the quarter, up from 18 a year earlier.
KULR said it established a battery supply chain designed to meet National Defense Authorization Act requirements for autonomous systems.
The supply chain supports autonomous systems through battery cell partnerships, internally developed management systems and chargers.
KULR implemented workforce reductions in November, aiming to save approximately $4 million annually.
The company expects research and development expenses to decline starting in the fourth quarter and fall further in 2027.
CFO Mike Kimel outlined plans to improve margins through higher production volumes, repeat orders and lower operating costs.
KULR expects to incur restructuring costs of $350,000 to $650,000, with substantially all charges recognized in the fourth quarter of 2026.
KULR completed its exit from Bitcoin operations to focus entirely on battery and energy systems.
During the quarter, the company sold all its Bitcoin holdings for approximately $80.1 million in net proceeds.
It also repaid a $20 million loan under its Coinbase credit facility.
KULR ended September with $54.5 million in cash, no outstanding debt and no digital assets.
The company also paused its at-the-market stock offering program through Dec. 31, 2026.
Management plans to increase battery production at its new Texas facility, Forge 2, which began producing for customers in the third quarter.
KULR sees growth opportunities in autonomous systems, Japanese energy storage projects and the space industry.
The company is also developing AI-powered tools, including KULR ONE Studio Designer Pro and KIOS, to improve engineering productivity and efficiency.
KULR Price Action: KULR Technology Group shares were up 20.55% at $1.96 at the time of publication on Tuesday, according to market data.
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