In what might be the most significant turnaround story in the thermal management sector, KULR Technology Group’s second-quarter results for 2025 reveal a company successfully pivoting from early-stage technology developer to commercial powerhouse. The financial metrics tell only part of the story—behind the numbers lies a strategic realignment that positions KULR at the intersection of two explosive growth markets: electric vehicles and data center infrastructure.
The California-based thermal management specialist reported quarterly revenue of $12.7 million, marking a 147% increase year-over-year. More telling was the shift to profitability, with EBITDA reaching $1.3 million compared to losses exceeding $4 million in the same quarter last year.
“What we’re seeing isn’t just improved execution but validation of our core thesis that advanced thermal management becomes critical as energy density increases in both transportation and computing,” said Michael Mo, KULR’s CEO, during yesterday’s earnings call.
KULR’s transformation appears driven by two parallel market developments. First, electric vehicle manufacturers have begun integrating more sophisticated battery safety systems as they push toward higher energy density cells. Second, data center operators face unprecedented cooling challenges as AI-driven computing demands more power in confined spaces.
The company’s flagship KULR ONE design platform, which combines proprietary carbon fiber technology with phase-change materials, has secured five new automotive design wins this quarter alone. These include partnerships with two major European automakers and a Japanese motorcycle manufacturer—all names the company declined to disclose citing confidentiality agreements.
According to data from McKinsey & Company’s latest Electric Vehicle Index, thermal management systems now represent approximately 8% of total battery system costs, up from just 3% in 2020. This growing allocation reflects both safety concerns and performance optimization as manufacturers push the limits of current battery chemistry.
“Thermal management isn’t just about preventing catastrophic failures anymore,” explains Jared Davidson, senior analyst at Wedbush Securities. “It’s becoming a key performance differentiator as EV makers try to extract maximum range and faster charging from their battery systems.”
KULR’s revenue breakdown reveals this shift in real time. Automotive applications now account for 42% of total revenue, up from 27% just one year ago. What’s particularly noteworthy is the average contract value, which has increased from $670,000 to over $2.1 million as KULR moves from component supplier to systems provider.
But perhaps more surprising is the company’s rapid expansion in data infrastructure. This segment grew 211% year-over-year and now represents 35% of KULR’s business. The explosive growth coincides with accelerated AI data center buildouts where thermal challenges have become critical bottlenecks.
“The physics of computing creates an inescapable thermal problem,” Mo explained. “Every calculation generates heat, and as we pack more computing power into smaller spaces for AI applications, that heat must be managed more efficiently.”
A recent report from the Uptime Institute found that cooling now accounts for approximately 40% of total data center energy consumption. Traditional air cooling methods are proving inadequate for the latest high-density server deployments, creating urgent demand for advanced thermal solutions.
KULR’s entry into this market was well-timed. The company’s acquisition of CryoTherm Solutions in late 2023 provided both technological capabilities and customer relationships in the data center space. What began as a speculative expansion has quickly become a core business driver.
Financial markets have noticed the company’s strategic evolution. KULR’s stock has appreciated 78% year-to-date, outperforming both the broader technology sector and most clean energy indexes. The company’s market capitalization now exceeds $850 million, placing it firmly in small-cap territory.
Despite this growth, challenges remain. Gross margins, while improved at 34%, still lag industry leaders like Gentherm and Boyd Corporation. The company also faces increasing competition as thermal management becomes a recognized growth category.
“We’re seeing traditional automotive suppliers and electronics cooling companies eyeing this space aggressively,” notes Samantha Reeves, portfolio manager at Green Horizon Capital. “KULR’s technical advantage is clear today, but maintaining that lead will require continued R&D investment.”
The company seems aware of this competitive pressure. R&D spending increased 32% year-over-year despite the overall move toward profitability. KULR also announced the filing of 17 new patents during the quarter, bringing its intellectual property portfolio to over 100 granted or pending patents.
Looking ahead, KULR’s management raised full-year guidance, projecting annual revenue between $47-52 million, representing approximately 130% growth at the midpoint. The company also expects to maintain positive EBITDA through year-end, a significant milestone for a company that has historically prioritized growth over profitability.
For investors, KULR represents an interesting opportunity to gain exposure to multiple high-growth markets through a single specialized technology provider. As both electric vehicles and AI computing continue their expansionary trajectories, the demand for advanced thermal management seems likely to follow a similar upward path.
Whether KULR can maintain its current growth rate remains to be seen, but the company’s second-quarter results make a compelling case that thermal management has evolved from engineering afterthought to strategic necessity.
