Birchtech (BCHT) investor relations material

Executive summary

• Revenues increased to $3.8 million in Q2 2026, up from $3.3 million year-over-year, driven by higher air business demand and new water treatment sales.

• All remaining patent challenges and IPR petitions were resolved or terminated, securing the SEA® technology portfolio and ending seven years of legal disputes.

• Maintains a $78.4 million final judgment award, with post-judgment interest accruing; appeal process is ongoing and collection is expected upon resolution.

• Leadership strengthened with the appointment of a new CFO and promotion of a new COO to support operational execution and growth.

• Continued investment in R&D and expansion of water treatment capabilities, including new product development and laboratory facilities.

Financial highlights

• Q2 2026 revenues reached $3.8 million, up from $3.3 million year-over-year; six-month revenues were $8.0 million, up from $6.5 million.

• Gross profit for Q2 2026 was $1.0 million; gross profit for the six months was $2.4 million, with gross margin at 27–30%.

• SG&A expenses rose to $2.1 million from $1.7 million, mainly due to legal and public company costs.

• Net loss widened to $3.0 million ($0.11/share) in Q2, and $4.4 million for the six months, up from $1.5 million and $3.2 million, respectively.

• Cash balance was $11.8 million as of June 30, 2026, with no debt, up from $2.2 million at year-end 2025, supported by a $16.4 million public offering.

Outlook and guidance

• Expects significant increase in air product supply revenue in the second half of 2026 as supply contracts renew.

• Anticipates material news and potential offtake agreements in the water business by the end of Q3 2026.

• Strategic focus on expanding water treatment business, leveraging regulatory drivers in PFAS compliance, and advancing carbon rejuvenation facility.

• Management believes current liquidity is sufficient to fund operations and meet obligations for at least the next twelve months.

• Regulatory tailwinds from EPA PFAS regulations and $1B federal funding for water monitoring support growth.