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Birchtech (BCHT)
OTHER OTC:BCHT
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Birchtech
(OTC:BCHT)
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Rating:45Neutral
Price Target:―
Birchtech faces substantial financial challenges, including negative equity and volatile revenue, despite some cash flow improvements. Technical indicators are bearish, and the stock's valuation lacks appeal with no dividend and negative earnings. The market's neutral response to the latest earnings call provides little additional insight. Overall, the stock score reflects these mixed factors, with significant concerns overshadowing the positives.
Birchtech (BCHT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$65.09M
Dividend YieldN/A
Average Volume (3M)125.58K
Price to Earnings (P/E)―
Beta (1Y)0.53
Revenue Growth-4.35%
EPS Growth-774.60%
CountryUS
Employees11
SectorIndustrials
Sector Strength72
IndustryIndustrial Goods
Share Statistics
EPS (TTM)-0.02
Shares Outstanding96,866,110
10 Day Avg. Volume77,997
30 Day Avg. Volume125,576
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.98
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.00Price Target Upside347.76% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Birchtech Business Overview & Revenue Model
Company DescriptionBirchtech (BCHT) is a technology company specializing in providing innovative software solutions and IT services across various sectors, including healthcare, finance, and retail. The company offers a range of products such as cloud computing services, cybersecurity solutions, and enterprise resource planning (ERP) systems, designed to enhance operational efficiency and data security for businesses.
How the Company Makes MoneyBirchtech generates revenue through a subscription-based model for its software solutions, where clients pay recurring fees for access to its cloud services and cybersecurity tools. Additionally, the company earns from consulting and implementation services, assisting businesses in integrating and optimizing their IT infrastructure. Key partnerships with major tech firms enhance its service offerings and expand its market reach, contributing significantly to its earnings. Revenue also flows from licensing its proprietary software to other technology providers.
Birchtech Earnings Call Summary
Earnings Call Date:Aug 14, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 17, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a balanced outlook. While there are notable achievements in patent litigation and strategic expansion into water purification, the company faced challenges with slight revenue decline and decreased gross profit. Financial management improvements are evident in reduced net loss and operating expenses.Q2-2025 Updates
Positive Updates
Patent Defense Success and Potential Judgment
The company secured a $57 million unanimous jury award and is seeking a final judgment of $160 million, which is pending. This highlights successful patent defense and significant potential financial gain.
Launch of Water Business and New Design Centers
The company expanded into water purification with new patent-pending technologies, opening two design centers in North Dakota and Pennsylvania, aimed at addressing PFAS contamination.
Reduction in Net Loss
Net loss improved to $1.5 million in Q2 2025 from $6.2 million in the same quarter last year, indicating better financial management.
Decrease in Operating Expenses
SG&A expenses significantly decreased from $4.6 million to $1.7 million, showing improved cost management.
Negative Updates
Decrease in Revenue
Revenues slightly decreased from $3.4 million to $3.3 million, attributed to unexpected customer outages and product mix.
Decrease in Gross Profit
Gross profit decreased by 8.7% to $1 million, with a gross margin drop from 31.6% to 29.8%.
Current Liabilities Increase Due to Profit Share
The classification of product share liability as a current liability due to expected litigation proceeds has impacted the balance sheet.
Company Guidance
During the second quarter of 2025 earnings call, Birchtech provided guidance on its financial outlook and strategic initiatives. The company reported second-quarter revenues of $3.3 million, driven by its Air business, with a gross margin of 29.8%. Despite a decrease in revenues compared to the previous year, adjusted EBITDA improved to negative $1 million from negative $3.3 million in the same quarter last year. Birchtech aims to grow Air business revenue to at least $18 million in 2025, with a potential annual run rate of $40 million by 2026, leveraging recent regulatory exemptions for coal-fired plants. The Water business is poised for growth, targeting commercial availability of its new technologies in 2026, supported by two new design centers. The company also highlighted ongoing patent litigation efforts, with a potential $160 million judgment pending. Cash reserves stood at $1.5 million as of June 30, 2025, with no debt, as Birchtech prepares for a potential uplisting to a major U.S. exchange in late 2025.Birchtech Financial Statement Overview
Summary
Birchtech's financial performance is mixed. Positives include improved net income and strong cash flow generation. However, significant challenges remain, such as negative stockholders' equity and volatile revenue, highlighting operational and balance sheet instability.Income Statement
Birchtech's revenue exhibits volatility with a significant decline of 17.02% from 2022 to 2023. The gross profit margin has been inconsistent, and the company experienced a negative EBIT and EBITDA margin in 2023, indicating operational challenges. However, the net profit margin saw a positive shift due to a significant net income improvement, marking a notable turnaround from previous losses.45
Neutral
Balance Sheet
The balance sheet reflects financial instability with a negative stockholders' equity, indicating leverage and solvency issues. The debt-to-equity ratio is not calculable due to negative equity, suggesting high financial risk. Despite the increase in total assets in 2023, the equity ratio remains unfavorable, showing potential liquidity concerns.30
Negative
Cash Flow
The cash flow statements reveal a strong operating cash flow to net income ratio, demonstrating effective cash generation relative to earnings. Free cash flow has shown substantial growth, indicating improved cash management. However, fluctuations in free cash flow across periods highlight potential volatility in cash flow stability.65
Positive
| Breakdown | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | ― | ― | ― | ― | ― |
| Gross Profit | 5.77M | 7.02M | 5.07M | 2.72M | 2.71M |
| EBITDA | -18.27M | 2.08M | -112.96K | -2.45M | -908.56K |
| Net Income | 5.90M | -1.58M | -3.77M | -5.83M | -6.10M |
Balance Sheet | |||||
| Total Assets | 27.47M | 9.34M | 8.12M | 7.36M | 9.27M |
| Cash, Cash Equivalents and Short-Term Investments | ― | ― | ― | ― | ― |
| Total Debt | 11.22M | 9.89M | 11.93M | 1.17M | 12.40M |
| Total Liabilities | 28.25M | 16.76M | 18.38M | 20.59M | 18.15M |
| Stockholders Equity | ― | ― | ― | ― | ― |
Cash Flow | |||||
| Free Cash Flow | 19.23M | 60.26K | 7.43M | 10.46M | -1.55M |
| Operating Cash Flow | 19.23M | 70.99K | 7.44M | 10.42M | -1.58M |
| Investing Cash Flow | ― | ― | ― | ― | ― |
| Financing Cash Flow | ― | ― | ― | ― | ― |
Birchtech Technical Analysis
Neutral
0.67
Price Trends
0.65
Positive
0.63
Positive
0.57
Positive
Market Momentum
<0.01
Positive
45.72
Neutral
37.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BCHT, the sentiment is Neutral. The current price of 0.67 is below the 20-day moving average (MA) of 0.70, above the 50-day MA of 0.65, and above the 200-day MA of 0.57, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 45.72 is Neutral, neither overbought nor oversold. The STOCH value of 37.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BCHT.
Birchtech Risk Analysis
Birchtech disclosed 18 risk factors in its most recent earnings report. Birchtech reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Birchtech Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $79.43M | 6.32 | 1.44% | ― | -42.15% | -99.65% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $65.69M | 163.76 | 0.83% | ― | -17.36% | -94.28% | |
49 Neutral | $49.08M | 30.96 | -3.73% | ― | -18.38% | -128.11% | |
46 Neutral | $64.05M | ― | -236.56% | ― | -6.61% | 40.20% | |
45 Neutral | $65.09M | ― | -3740.36% | ― | -4.35% | -774.60% | |
42 Neutral | $59.46M | ― | -790.22% | ― | 5.14% | -17.39% |
* Industrials Sector Average
BCHT
Birchtech
0.67
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-6.94%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.