Birchtech (AMEX:BCHT) reported first-quarter financial results on Wednesday. The transcript from the company’s first-quarter earnings call has been provided below.
This content is powered by Benzinga APIs. For comprehensive financial data and transcripts, visit https://www.benzinga.com/apis/.
View the webcast at https://viavid.webcasts.com/starthere.jsp?ei=1761146&tp_key=1b46e148b3
Summary
Birchtech Corp completed a $16.4 million capital raise and uplisted to the NYSE American, strengthening its balance sheet and expanding its investor base.
First quarter 2026 revenues increased by 32% to $4.2 million, driven by growth in the air and water segments; gross profit rose to $1.4 million with a 33% gross margin.
The company is actively pursuing enforcement of a $78 million patent infringement judgment and anticipates converting legal settlements into long-term commercial partnerships.
Strategic initiatives include expanding recurring activated carbon sales, scaling the water business, and launching the SEA IX ion exchange product line targeting a $220 million market.
Management emphasized the transition from enforcement targets to commercial partnerships, expecting activated carbon sales to significantly grow and contribute to revenue.
The company reported a net loss of $1.3 million for Q1 2026 but highlighted a strong cash position of $14.7 million post-capital raise, with no debt.
Future plans include converting more licensed utilities into recurring product supply customers and advancing agreements for their carbon rejuvenation facility.
Full Transcript
OPERATOR
Good afternoon ladies and gentlemen. Thank you for standing by. Welcome to Birch Tech’s first quarter 2026 earnings conference call. During today’s presentation, all parties will be in a listen only mode. Following the presentation, the conference will be open for questions for dial in participants this conference is being recorded today, Wednesday, May 13, 2026 and the earnings press release accompanying this conference call was issued after the market closed today. On our call today is BirchTech’s President and CEO Richard McPherson and CFO Michael Myoska. Before we get started, I’ll read a disclaimer about Forward looking Statements. This conference call may contain, in addition to historical information, forward looking statements that are made pursuant to the safe harbor provisions of the U.S. private Securities Litigation Reform act of 1995 or forward looking information under applicable Canadian securities laws regarding BirchTech. Forward looking statements include, but are not limited to, statements that express the Company’s intentions, beliefs, expectations, strategies, predictions, or any other statements relating to its future earnings, activities, events or conditions. These statements are based on current expectations, estimates and projections about the Company’s business based in part on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may and are likely to depend on differ materially from what is expressed or forecasted in the forward looking statements due to numerous factors discussed from time to time in BirchTech’s periodic filings with the U.S. securities and Exchange Commission or Canadian securities regulators. In addition, such statements could be affected by risks and uncertainties related to factors beyond the Company’s control that may cause actual results to differ materially from those in the forward looking statements. During today’s call, the Company will discuss Adjusted ebitda, a non GAAP financial measure. Adjusted EBITDA is presented as a supplemental measure of the Company’s performance and excluding certain items that the Company believes do not reflect the core operations of the Company. Such non GAAP measures should not be considered in isolation or as a substitute for GAAP financial information. Additionally, the Company’s definition of these measures may differ from those used by other companies, making comparisons across organizations difficult. And finally, this conference call contains time sensitive information that reflects Management’s best analysis only as of the date and time of this conference call. The Company does not undertake any obligation to publicly update or revise any forward looking statements to reflect future events, information or circumstances that arise after the date of this conference call. At this time, I’d like to turn the call over to President and CEO Richard McPherson. Richard, the floor is yours.
Richard McPherson (President and CEO)
Thank you operator and good afternoon everyone. Welcome to our first quarter 2026 financial results conference call. I want to start with a few milestones that reshaped the company’s trajectory during the first quarter. In February 2026, we completed our uplifting to the New York Stock Exchange American with a concurrent public offering raising aggregate gross proceeds of approximately 16.4 million, including the partial exercise of the underwriter’s over allotment option. That capital raise, combined with a senior exchange listing material, strengthened our balance sheet and broadened our investor base at a critical time in BirchTech’s growth. Now, on the legal front, during the first quarter we advanced enforcement of our approximate 78 million final patent infringement judgment entered by the U.S. district Court for the District of Delaware in December of 2025. On February 2, 2026, following the lapse of the 30 day automatic stay, we submitted a formal payment request to the courts defendants. Post judgment interest continues to accrue until the judgment is paid. The defendants filed a notice of appeal but have not posted a bond and we are actively pursuing our enforcement options including discovery of assets, seizures, liens, garnishments and clawbacks if necessary. Since launching our patent enforcement strategy in 2019, approximately 37 million in license fees and settlements have been received and we have the potential to convert other prior infringers to long term commercial partners. Now turning to operations, our business delivered first quarter revenues of approximately 4.2 million with an approximate 33% gross margin driven by our expanding base of licensed utilities and growing product supply relationships. The US Coal market has stabilized and recent federal support for continued coal plant operation reinforces demand for proven emissions control solutions like our patented Sea Platform. We believe this creates a longer operational Runway for our core air quality business. Now allow me to provide additional color on our air business. Our Sea Platform remains the legacy cornerstone of the company and the quarter’s results underscore the resilience of that franchise. What is evolving is the character of the revenue itself. As incumbent supply arrangements conclude for utilities Already licensed under BirchTech’s agreements, our focus turns to converting them to ongoing product supply customers as they adopt our sorbent formulations into their day to day operations and realize the benefits of our applied expertise. First quarter air revenues total approximately 3.5 million, mostly derived from product supply. Importantly, we continue to see a change in how utilities engage with us, with our goal being that licensees that began as enforcement targets can now transition to purchasing activated carbon directly and we expect the pipeline of supply conversions to continue growing as power demand increases in the coming years. That transition from legal resolution to commercial partnership was our core objective in our business first approach to patent enforcement efforts that we began over six years ago. Now, across the past 12 months, we’ve executed a series of additional license agreements moving us ever closer to a critical mass of licensed coal fired utilities. Every new agreement reaffirms the distinctiveness of our SEA process. As licensees fold our sorbent formulations into their day to day operations. We anticipate activated carbon sales comprising a progressively larger share of total revenue and a mix shift that will translate into meaningful year over year growth. As referenced earlier, the 78 million final judgment is the payoff of a multi year patent enforcement campaign. While the defendants have filed an appeal, we remain confident …
This post was originally published here
