SmartKem (SMTK) is a developer of organic thin-film transistor (OTFT) semiconductor materials for flexible displays and next-generation electronics. On August 12, 2025, it reported its Q2 2025 results, focusing on both technical and partnership progress but showing a drop in revenue and a heavier cash burn. Revenue (GAAP) was $32 thousand for Q2 2025, down from $40 thousand (GAAP) in Q2 2024. There were no published analyst estimates to compare against. Operating expenses were $4.7 million for Q2 2025, and cash and cash equivalents (GAAP) at Q2 2025 quarter end fell sharply to $1.2 million. Management indicated that cash is expected to last only through September 30, 2025, raising near-term funding concerns. The results highlight significant advances in R&D, but the quarter underscored the company’s ongoing financial risks and lack of commercial revenue traction.
| Metric | Q2 2025 | Q2 2024 | Y/Y Change |
|---|---|---|---|
| Revenue | $32 thousand | $40 thousand | (20.0%) |
| Operating Expenses | $4.7 million | $3.0 million | 56.7% |
| Loss from Operations | $(4.4) million | $(2.8) million | (57.0%) |
| Net Loss Attributed to Common Stockholders | $(2.4) million | N/A | N/A |
| Diluted Net Loss per Common Share | $(0.30) | $(0.98) | -69.4% |
| Cash and Cash Equivalents (end of period) | $1.2 million | N/A | -97.0% |
Business Overview and Recent Focus Areas
SmartKem is focused on developing and commercializing OTFT materials for the global flexible display market. Its main technology, TRUFLEX®, is designed to enable the manufacture of thin, flexible, and foldable displays using low-temperature printing processes. This technology targets devices such as foldable smartphones, wearables, and advanced automotive screens.
The company’s recent priorities have centered on expanding its suite of joint development partnerships. It is also investing in manufacturing scalability, with efforts to prove production processes can be adopted by potential customers without major capital investment. Maintaining a strong intellectual property (IP) portfolio remains a key part of its competitive strategy, as does ongoing R&D to support entry into the growing MicroLED display market.
Quarterly Performance and Key Developments
During the quarter, SmartKem’s revenue stayed at pre-commercial levels, with sales almost entirely from early-stage sampling of OTFT backplanes and TRUFLEX® materials to customers for testing. The lack of consistent product shipments underlines that the company’s technology has not yet reached broad commercial adoption.
Operating expenses (GAAP) rose sharply, climbing 56.7% to $4.7 million for Q2 2025 compared to $3.0 million for the same period in 2024. The increase was driven by a $1.5 million rise in research and development (R&D) costs, higher personnel expenses, and a $0.6 million increase in general and administrative expenses. About $0.3 million of these costs were non-cash in Q2 2025. Loss from operations (GAAP) was $4.4 million for Q2 2025, outpacing the modest revenue base.
The company reported a net loss (GAAP) of $2.4 million for Q2 2025. This was mostly due to a $2.0 million non-operational gain from changes in foreign currency rates in Q2 2025. However, Comprehensive loss (GAAP), which accounts for foreign currency changes, was $4.5 million for Q2 2025 versus $2.9 million for Q2 2024, reflecting the impact of negative translation adjustments.
On the partnership front, SmartKem signed a joint development agreement with Manz Asia in the period, with the goal of co-developing inkjet dielectric inks for advanced chip packaging. The company showcased its inkjet-printed dielectric solutions for artificial intelligence (AI) chip packaging at SEMICON Southeast Asia, a significant industry event. It also presented its MicroLED display technology at Display Week 2025, highlighting a new 12.3‑inch MicroLED Smart Backlight demonstration for automotive displays. SmartKem’s patent portfolio also expanded with a new UK patent covering a MicroLED manufacturing process that enables wafer reuse. The company now counts 140 granted patents, 14 patents pending, and 40 codified trade secrets.
Looking Ahead and Management Outlook
Management did not provide any specific financial forecasts or guidance for the next quarter or for fiscal 2025. The company’s leadership instead referenced ongoing efforts to advance commercialization and deepen strategic partnerships in its core technology markets.
Investors should monitor SmartKem’s efforts to raise capital or secure new funding sources, as cash reserves as of June 30, 2025, are projected to sustain operations only through September 30, 2025. Watch for updates on joint development projects as the company continues to advance from the demonstration stage toward commercial product integration. The pace of cash burn, ability to move R&D projects toward commercialization, and any signs of commercial orders or customer integration will remain central topics in the coming quarters. SMTK does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
