BCHTD · Birchtech Corp.

Revenue grew 1.3% to $17.6 million in FY 2025 from $17.4 million in 2024, primarily because license fee revenue increased while product sales declined due to the mix of plants running, unexpected customer forced outages, and the types of products sold. This dynamic supported gross profit expansion of 4.2% to $7.4 million, lifting the gross margin to 42.0% as the higher-margin license fees improved the revenue mix versus lower-margin product volumes.

The operating loss decreased 57.7% to -$3.0 million from -$7.2 million, reflecting the benefit of increased license fee revenue coupled with lower total operating expenses. Management attributes this improvement to disciplined cost management, including reduced SG&A, which enabled operating leverage despite ongoing investments. The operating margin held at -17.2%, signaling progress toward breakeven as revenue quality enhanced and expense growth was contained.

Net income followed suit, improving 72.0% to -$3.0 million from -$10.8 million, though diluted EPS moved to -$0.16 from -$0.11 due to higher share count. This loss reduction underscores the impact of license revenue momentum and expense discipline in narrowing the bottom-line gap, positioning the company for potential profitability inflection.

Operationally, Design Centers are generating data to define permitting, capex parameters, and operating costs for PFAS water technologies, accelerating commercialization while reducing third-party reliance. Regulatory tailwinds emerged as the EPA submitted its PFAS final action draft to OMB review on December 23, 2025. An impairment charge reflected management’s assessment that undiscounted cash flows could not recover certain construction-in-process asset values, highlighting prudent balance sheet management amid commercialization pivots.