KULR Technology Group Reports 40% Revenue Growth in Q1 2025, Despite Increased Net Loss

KULR Technology Group, Inc. reported a significant increase in revenue for the first quarter of 2025, generating $2.45 million compared to $1.75 million in the same period of 2024, marking a 40% year-over-year growth. The revenue growth was primarily driven by a substantial increase in product sales, which rose by 87% to $1.16 million, despite a decrease in the number of customers from 25 to 16. The company also recognized $249,754 in revenue from its newly initiated digital asset mining operations, which began in March 2025. However, the overall gross profit declined to $206,345, down 60% from $510,789 in the previous year, resulting in a gross profit margin of 8%, down from 29% in Q1 2024.

The company's operating expenses surged to $9.65 million, a 87% increase from $5.17 million in the prior year, largely due to heightened research and development costs, which rose by 157% to $2.45 million. This increase was attributed to consulting services and stock-based compensation. Selling, general, and administrative expenses also increased by 71% to $7.20 million, driven by planned increases in marketing and advertising, as well as a write-down of equipment deposits. Consequently, KULR reported a net loss of $18.81 million for the quarter, compared to a loss of $5.01 million in Q1 2024.

In terms of strategic developments, KULR has expanded its operations into digital asset mining, which is expected to contribute to future revenue streams. The company entered into a lease agreement for bitcoin mining services, which has already begun generating revenue. Additionally, KULR has been actively raising capital through its At-the-Market (ATM) offering, raising $51.15 million in gross proceeds during the quarter, which has bolstered its cash reserves to $24.45 million as of March 31, 2025.

Operationally, KULR's customer base decreased from 34 to 26, reflecting a shift in focus towards larger contracts with fewer clients. The company continues to face challenges in customer acquisition and retention, which can lead to fluctuations in revenue. KULR's digital asset holdings also saw a significant increase, rising to $55.28 million from $20.28 million at the end of 2024, primarily due to bitcoin purchases and mining activities. The company holds 669.60 bitcoins, with a fair value subject to market fluctuations.

Looking ahead, KULR aims to leverage its technological advancements in thermal management and energy storage solutions while continuing to explore opportunities in digital asset mining. The company anticipates that its investments in research and development will drive future growth, although it acknowledges the need for ongoing capital to support its operations and strategic initiatives. KULR's management remains focused on achieving profitability while navigating the complexities of a competitive market landscape.