Birchtech Corp.

Revenue totaled $3.8 million in Q2 2026 versus $3.3 million in Q2 2025. Gross profit was $1 million, flat with the prior-year quarter, while gross margin was about 27% according to management. Net loss was $3 million, or $0.11 per basic and diluted share, versus a net loss of $1.5 million, or $0.08 per share, a year ago; adjusted EBITDA loss was $1.9 million versus a loss of $1 million. For the full quarter, air revenue was $3.4 million and water treatment sales were recognized in 2026 versus none in the comparable period. Forward-looking, management expects air product supply revenue to increase starting in the second half of 2026 and said 2026 air product supply revenue should be meaningfully higher than 2025, though no hard number was given. On the water side, management said it expects to bring “hard news” on opportunities in Q3 and hoped some efforts could become real business by year-end, with material news on a planned rejuvenation facility possibly by the end of September.

Richard MacPherson framed the quarter around a major legal milestone, saying all remaining IPR challenges against the company’s SEA patents have been dismissed, removed before institution, or resolved, and that prior challengers are barred from future validity attacks. He emphasized a “business-first” enforcement strategy that has already produced about $37 million in license fees and settlements and said the air business is now a self-funding engine for water growth. His tone was confident and forward-looking, with repeated comments that the company is approaching important commercial inflection points in water and should see more air-supply revenue as supply contracts roll over.

Michael Mioska focused on the financial bridge between the legacy air business and water investment. He said Q2 revenue was $3.8 million versus $3.3 million a year earlier, gross profit was $1 million, SG&A rose to $2.1 million from $1.7 million mainly due to legal fees and uplisting costs, R&D was $0.6 million, and other expenses were $1.4 million because of license and settlement fees. Net loss widened to $3 million and adjusted EBITDA loss was $1.9 million. Cash increased to $11.8 million at June 30, 2026 from $2.2 million at December 31, 2025, with no debt, and he highlighted a $7.3 million profit-share liability tied to collection of the $78 million-plus final judgment.

Analysts pressed on how many air cases remain and when revenue from settled utilities should show up. Management said only one case remains, that they are in discussions, and that supply contracts will begin as existing contracts expire, with a meaningful increase in air product supply revenue expected in the second half of 2026. Questions on the $78 million-plus judgment focused on appeal timing; management said it cannot predict timing but hopes for a decision this year. On water, analysts asked about offtake agreements and regulatory catalysts; management said it is in negotiations with several significant parties, expects updates in Q3, and is seeing more customer activity as utilities and engineering firms prepare for PFAS-related regulations and as the company works toward its own rejuvenation facility.