Birchtech (BCHT) investor relations material

Executive summary

• Revenues rose 41% year-over-year to $7.4 million in Q3 2025, driven by licensing growth and new utility partnerships, with net income reaching $0.8 million, marking a transition to profitability.

• Major operational milestones included new licensing agreements in the air segment and the first commercialization of water treatment solutions.

• The air business remains the core revenue driver, while the water business achieved its first commercial sales and is positioned for growth.

• Significant patent litigation activity, including a $57.1 million jury verdict in March 2024 and a pending final judgment request of $160 million.

• Rebranded as Birchtech Corp. in October 2024 to reflect diversification into water purification and listed on the TSX in November 2024.

Financial highlights

• Revenue for the nine months ended September 30, 2025 was $13.8 million, up from $11.8 million year-over-year.

• Q3 2025 revenues increased to $7.4 million from $5.2 million in Q3 2024.

• Gross profit was $4 million (54.8% margin) in Q3 2025, up from $1.6 million (30.5% margin) year-over-year.

• Net income was $0.8 million in Q3 2025, or $0.01 per share, compared to a net loss of $0.5 million in Q3 2024.

• Cash at September 30, 2025 was $1.8 million, with no debt; $1.25 million in licensing fees collected post-quarter.

Outlook and guidance

• 2025 revenue run rate projected at $18 million, with expectations for considerable growth in 2026 as contracts renew.

• Water business pipeline is robust, with significant revenue expected to begin in Q4 2025 and expand through 2026.

• Management expects additional cash inflows from the $57.1 million jury verdict, new licensing revenues, and product sales from ongoing patent litigation.

• Anticipates increased demand for PFAS removal solutions as regulations tighten in 27 states by 2026.

• Expects to introduce a new granular activated carbon product in H1 2026.