Birchtech (BCHT) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue reached $5.6 million, up 37% year-over-year, driven by increased licensing revenues in the air business.

• Gross margin improved to 60% from 25% in the prior year quarter, reflecting a shift to higher-margin licensing.

• The company rebranded to reflect its expanded mission, uplisted to the Toronto Stock Exchange, and plans a major U.S. listing in 2025.

• Patent litigation resulted in a $57 million verdict, with a final judgment of $160 million pending, and ongoing IP enforcement with new utility agreements.

• Launched a new water purification business in Q4, opening two design centers and securing a feedstock agreement with $7–8 million annual sales potential starting mid-2025.

Financial highlights

• Q4 2024 revenue: $5.6 million (+37% YoY); gross profit: $3.3 million (+230% YoY); gross margin: 60%.

• Net loss for Q4 2024 was $1.3 million, compared to net income of $9 million in Q4 2023.

• Adjusted EBITDA was negative $0.2 million, down from $20.8 million in the prior year.

• Operating expenses fell to $3.4 million from $8.3 million, mainly due to lower legal fees.

• Cash at year-end was $3.5 million with no debt.

Outlook and guidance

• 2025 revenue guidance of at least $23 million, excluding potential legal claim proceeds and water business contributions.

• Air business annual revenue run-rate expected to reach at least $40 million by end of 2026.

• Water business to begin commercial product sales in Q3 2025, with new technology introduction planned for H2 2025.

• Anticipates additional license agreements and supply contracts from ongoing IP enforcement.