Birchtech (BCHT) Q3 2026 earnings summary

Executive summary

• Q3 product revenue rose 15.7% to $5.46M, while total revenue fell to $5.51M as $2.60M in prior-year license revenue did not recur; SG&A declined 35%.

• Strategy pairs the established mercury-control business and IP enforcement with expansion into PFAS water treatment and carbon rejuvenation.

• Priorities for 2027 include converting licensed utilities to recurring SEA® supply customers, advancing facility offtake discussions, and expanding water-market reach through Design Centers.

Financial highlights

• Q3 revenue was $5.51M versus $7.36M; product revenue was $5.46M versus $4.72M, while license revenue was zero versus $2.60M.

• Gross profit was $1.65M, or 29.9% of revenue, versus $4.03M, or 54.8%, reflecting the absence of higher-margin licensing revenue.

• Net loss was $275K versus net income of $788K; basic and diluted EPS were $(0.01) versus $0.04.

• SG&A declined 35% to $1.8M; R&D was $0.5M, comparable with Q3 2025.

• Cash was $10.83M at September 30, 2026, and working capital was $3.61M; no debt was outstanding.

Outlook and guidance

• A GAC supply agreement is expected to support water-treatment customers from early 2027, initially at 2,000 tons annually, with no CapEx required for initial supply.

• Carbon Rejuvenation facility planning and utility-partner discussions continue; management cited an 18–24-month ramp from a go-forward decision to operation.

• Management expects liquidity to fund operations and obligations for at least 12 months from issuance of the interim statements.

• Water-treatment Design Centers are informing technology development and planned plant permitting, capital expenditure, and operating-cost parameters.