SmartKem, Inc. reported third‑quarter 2025 results that show a 102% year‑over‑year increase in revenue to $81,000, driven by sales of OTFT backplanes and TRUFLEX materials used in early‑stage display and chip‑packaging projects. The company’s gross profit for the quarter was $76,000, up from $8,000 in the same period a year earlier, reflecting a higher mix of higher‑margin product sales.
Operating expenses for the quarter rose to $2.0 million, a 100% increase from $1.0 million in Q3 2024. The increase is largely attributable to a $1.3 million investment in research and development and a $0.7 million rise in general and administrative costs, underscoring SmartKem’s continued focus on accelerating the commercialization of its TRUFLEX technology.
The company posted a net loss of $3.92 million for the quarter and $8.454 million for the nine‑month period. The widening loss reflects the high cost of R&D and G&A relative to the modest revenue base, a pattern that has persisted since the company’s inception. The nine‑month loss is more than double the quarter’s loss, indicating that the company’s burn rate is accelerating as it scales its technology platform.
Cash and cash equivalents stood at $881,000 as of September 30, 2025, a balance that covers only a few weeks of operating expenses. In response, SmartKem secured a bridge financing of $1.0 million, backed by all company assets and including warrants, to extend its cash runway while it seeks additional capital to fund ongoing R&D and commercial‑scale production efforts.
SmartKem’s TRUFLEX® materials enable low‑temperature processing on flexible plastic substrates, a capability that could disrupt the MicroLED, MiniLED, AMOLED, and AI‑chip packaging markets. The company has announced strategic collaborations, including a letter of intent with Jericho Energy Ventures and a joint development agreement with Manz Asia, positioning it to capture early‑stage commercial opportunities as demand for flexible displays and high‑performance chips grows.
Management did not provide new guidance in the release, but the continued need for capital and the company’s focus on scaling its technology suggest that SmartKem remains in a high‑growth, high‑risk phase. The company’s leadership emphasized the importance of maintaining R&D momentum while managing cash burn, indicating a cautious but optimistic outlook for the near term.
The results underscore SmartKem’s dual challenge: achieving revenue growth sufficient to offset the high cost of innovation while securing the liquidity required to bring its TRUFLEX technology to market. The company’s ability to raise additional capital and convert early‑stage sales into sustainable revenue will be critical to its long‑term viability.
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