Earnings Recap — Q2 FY2026

KULR Technology Group, Inc. reported Q2 FY2026 revenue of $2M, a miss of 76.9% against consensus, and EPS of $-0.47, a miss of 487.5%.

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KULR's Q2 miss highlights that the U.S. domestic drone and autonomous systems battery supply chain is still in an early, bottlenecked phase — new programs require new parts with long lead times, and capacity (the Texas facility) was not yet online. The company's thesis that batteries are consumable infrastructure for the Physical AI era remains intact, but the quarter shows execution and supply chain readiness, not demand, are the gating factors. The Drone Dominance program's conversion from policy to purchase orders could be a meaningful demand catalyst for domestic battery suppliers if KULR can ramp production and qualify NDAA-compliant power electronics by year-end.

KULR reported Q2 2026 revenue of $2.1M with a gross loss, declining significantly from both the prior year and Q1 2026. Management attributed the shortfall to four factors: supply chain bottlenecks and long lead times on new parts, execution bandwidth spread across too many customer programs, management and board transition distractions, and the new Texas facility not yet contributing. First-half revenue was $6.03M versus $6.1M a year ago, with energy management platform revenue essentially flat at $4.76M versus $4.73M. Q2 product sales were driven principally by two large orders from new customers involving new battery configurations. Since quarter end, the company exited Bitcoin mining, sold 333 Bitcoin to repay its $20M Coinbase credit facility in full, terminated its mining services agreement for a $150,000 fee, and received board authorization to sell any and all remaining Bitcoin holdings. SG&A declined ~9% year-over-year in Q2 and ~5% in the first half, while first-half R&D was ~3% lower.

Management did not provide formal quantitative guidance but laid out a clear second-half recovery thesis: delayed shipments will be recovered, the new ~25,000 sq ft Texas facility and automated cylindrical/pouch cell production lines are expected to be operational in Q3, with pack volumes beginning to ramp and NDAA-compliant chargers expected to ship to U.S. customers by the end of 2026. CEO Michael Mo said the American drone market is "converting from policy to purchase orders," citing the Department of Defense's $1.1B Drone Dominance program, with ~30,000 units being delivered now, 60,000 more expected in September, and a fiscal 2027 budget request of more than $70B for drones and counter-drone systems. He framed the opportunity as a demand wave KULR is positioned for, noting a Drone Dominance-related customer opportunity exceeding $5M secured in Q2. On costs, CFO Mike Kimel said SG&A declined ~9% year-over-year in Q2 and ~5% in the first half, with first-half R&D down ~3%, but stressed "a company cannot cut its way to prosperity" and that the priority is converting demand into revenue. Management is exiting Bitcoin mining, divesting the Bitcoin treasury, and has authorized the sale of any and all Bitcoin holdings to reduce balance-sheet volatility and focus capital on the core battery business. The tone was candid about the miss but insistent that the underlying demand and KULR ONE platform strategy are intact.