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SEC filingBirchtech's Q1 2026 revenue grew 31.6% to $4.2M, driven by increased coal demand for mercury emissions control, while net loss narrowed 19.9% to $1.3M.
Revenue for the first quarter of 2026 increased 31.6% to $4.2 million from $3.2 million in the prior-year period. Management attributes the growth to a favorable mix of coal-fired plants running and increased demand for coal in connection with our mercury emissions business, driven by more extreme weather conditions and higher natural gas prices. This top-line momentum reflects the company's core strength in providing solutions for coal-fired power plant emissions.
Gross profit rose 12.0% to $1.4 million, yielding a gross margin of 32.6%. The margin compression from the prior year's level reflects a shift in product mix, as high-margin licensing revenue declined. Operating expenses decreased, contributing to a 14.4% improvement in operating loss to $1.1 million. The decrease in professional fees was primarily due to lower legal fees in 2026. Net loss narrowed 19.9% to $1.3 million, or $0.06 per diluted share, compared to a net loss of $1.7 million, or $0.02 per diluted share, in the prior year.
Birchtech is positioning its water treatment business as the next growth vector, leveraging its Design Centers to develop thermal reactivation capabilities for granular activated carbon used in PFAS remediation. The company believes these facilities are the only integrated centers in North America capable of both reactivating spent carbon and conducting rapid small-scale column tests. While the regulatory landscape for PFAS remains in flux—the EPA under the Trump administration has extended compliance deadlines and signaled a narrower rule—the company's technology platform is not solely dependent on PFAS regulations. Management expects the Design Centers to accelerate commercialization and reduce future reliance on third-party providers. With a strengthened balance sheet and a growing revenue base in mercury emissions, Birchtech has the financial runway to invest in this pivot, though the path to profitability remains dependent on scaling the water treatment business and resolving patent litigation.