Ategrity Specialty Insurance Company Holdings Reports Second Quarter 2025 Results
Second Quarter 2025 Highlights
Gross written premiums increased 32.3% to $167.5 million
Net income attributable to stockholders was $17.6 million, or $0.39 per diluted share
Adjusted net income attributable to stockholders (1) was $17.9 million, or $0.41 per diluted share
Combined ratio was 88.9%, compared to 94.0% in Q2 2024
Adjusted return on stockholders' equity (1) was 14.5%
Book value per share at quarter-end was $11.64 per share, up 12.2% from year-end
Initial public offering was completed in June 2025, raising $130.3 million in gross proceeds through the issuance of 7,666,667 shares
'This was a strong quarter for Ategrity,' said Justin Cohen, Chief Executive Officer. 'We executed with focus and discipline, expanding distribution relationships, delivering solid underwriting results, and driving operational efficiencies. Our productionized underwriting model, which combines technical underwriting with technology-enabled processes, is gaining traction in the marketplace, delivering value to our partners, and driving profitability for our shareholders. Looking ahead, we believe our investments in automation and analytics will accelerate our opportunity to redefine how E&S insurance for small and medium-sized businesses is underwritten and delivered.'
Underwriting Results
For the quarter ended June 30, 2025, gross written premiums increased 32.3% compared to the prior-year period, driven by expansion of our distribution network and increased wallet share with existing partners. Gross written premiums for casualty lines increased 56.7% year-over-year, reflecting the Company's strategic focus on expanding casualty-related products and verticals. Gross written premiums in property lines increased 3.7% year-over-year, reflecting the impact of pricing actions and targeted reductions in catastrophe exposure initiated in 2024.
Underwriting income (1) was $9.6 million for the quarter, up 119.1% from $4.4 million in the prior year period. The combined ratio for the quarter was 88.9%, a decrease from 94.0% in the prior-year period, driven by improvements in both the loss and expense ratios. The loss ratio decreased by 2.8 percentage points to 58.0%, supported by strong underwriting results in property, including lower attritional losses and favorable catastrophe experience.
The overall expense ratio was 31.0% for the quarter, compared to 33.2% in the prior-year period. The largest driver of this improvement was policy acquisition costs as a percentage of net earned premiums, which decreased by 2.6 percentage points to 18.5%, reflecting higher ceded earned commissions and a more favorable business mix. Operating expenses, net of fee income, were 12.4% of net earned premiums for the quarter, reflecting increased fee income and emerging operating scale. Operating expenses were higher year-over-year due to investments made in 2024 in personnel, systems, and infrastructure in anticipation of growth opportunities and the Company's transition to becoming a public company.
'This quarter's underwriting results reflect the deliberate actions we have taken to grow and shape our business,' said Chris Schenk, President and Chief Underwriting Officer. 'We saw a meaningful increase in submissions, but we deployed capital with discipline. We achieved above-technical rates in casualty, held firm on property rates even as parts of the market began to soften, and concentrated on targeted micro-segments where we have deep expertise. By leveraging our productionized underwriting model—combining segmentation, analytics-driven pricing, and automation—we were able to deliver strong, profitable growth.'
Summary of Operating Results
The following table summarizes the Company's results of operations for the three and six months ended June 30, 2025 and 2024:
Three Months Ended June 30,
Six Months Ended June 30,
($ in thousands)
2025
2024
2025
2024
Gross written premiums
$
167,502
$
126,614
$
283,645
$
208,219
Ceded written premiums
(50,231
)
(41,838
)
(76,503
)
(61,187
)
Net written premiums
117,271
84,776
207,142
147,032
Net premiums earned
86,928
72,638
165,229
140,917
Fee income
1,524
191
2,084
316
Losses and loss adjustment expenses
50,412
44,128
97,274
85,174
Underwriting, acquisition and insurance expenses
28,430
24,315
53,315
47,705
Underwriting income (1)
9,610
4,386
16,724
8,354
Net investment income
11,891
5,728
19,786
10,981
Net realized and unrealized gains (losses) on investments
1,409
(4,215
)
(3,190
)
(1,828
)
Interest expense
(447
)
(544
)
(894
)
(1,094
)
Other income
28
24
993
48
Other expenses
(161
)
(56
)
(399
)
(110
)
Income before income taxes
22,330
5,323
33,020
16,351
Income tax expense
4,713
1,207
6,953
3,277
Net income
$
17,617
$
4,116
$
26,067
$
13,074
Less: Net (loss) income attributable to non-controlling interest - General Partner
(5
)
(828
)
(16
)
374
Net income attributable to stockholders
$
17,622
$
4,944
$
26,083
$
12,700
Key Metrics
Adjusted net income attributable to stockholders (1)
$
17,857
$
4,944
$
26,400
$
12,700
Loss ratio
58.0
%
60.8
%
58.9
%
60.4
%
Expense ratio
31.0
%
33.2
%
31.0
%
33.6
%
Combined ratio (3)
88.9
%
94.0
%
89.9
%
94.1
%
Return on stockholders' equity (2)
14.3
%
5.9
%
10.9
%
7.7
%
Adjusted return on stockholders' equity (1)(2)
14.5
%
5.9
%
11.0
%
7.7
%
Diluted earnings per share
$
0.39
$
0.14
$
0.60
$
0.35
Adjusted diluted earnings per share (1)
$
0.41
$
0.14
$
0.62
$
0.35
Expand
(1)
Each of these metrics is a non-GAAP financial measure. See '—Reconciliation of non-GAAP financial measures' for a reconciliation of the non-GAAP financial measure to the most directly comparable GAAP measure.
(2)
For the three and six months ended June 30, 2025 and 2024, net income attributable to stockholders and adjusted net income attributable to stockholders are annualized to arrive at return on stockholders' equity and adjusted return on stockholders' equity.
(3)
Ratios are calculated using unrounded figures. The sum of components may differ slightly from totals shown due to rounding.
Expand
Gross Written Premiums
The following table presents gross written premiums by product for the three and six months ended June 30, 2025 and 2024:
Expense Ratio
The following tables summarize the components of our expense ratio for the three and six months ended June 30, 2025 and 2024:
(1)
Net of fee income of $1.5 million and $0.2 million for the three months ended June 30, 2025 and 2024, respectively.
(2)
Ratios are calculated using unrounded figures. The sum of components may differ slightly from totals shown due to rounding.
Expand
Investment results
The following tables summarize net investment income and net realized and unrealized gains on investments for the three and six months ended June 30, 2025 and 2024:
Three Months Ended June 30,
Six Months Ended June 30,
($ in thousands)
2025
2024
2025
2024
Investment income
Fixed-maturity securities
$
6,460
$
2,634
$
12,725
$
3,521
Short-term investments
1,154
767
1,724
2,281
Cash equivalents
475
1,612
911
3,604
Equity securities
—
22
—
44
Loans to affiliates
1,543
250
1,793
501
Securities sold not yet purchased
—
(103
)
—
(235
)
Total fixed income
9,632
5,182
17,153
9,716
Utility & Infrastructure Investments
2,422
658
2,931
1,384
Other expenses
(163
)
(112
)
(298
)
(119
)
Net investment income
$
11,891
$
5,728
$
19,786
$
10,981
Net realized and unrealized gains (losses) on investments
$
1,409
$
(4,215
)
$
(3,190
)
$
(1,828
)
Expand
Non-GAAP Financial Measures
We report our financial results in accordance with GAAP. However, we believe that certain non-GAAP financial measures provide investors in our common stock with additional useful information in evaluating our performance. Management believes that excluding certain items that are not indicative of core performance assists in evaluating our ability to generate earnings and to more readily compare these metrics between past and future periods. These non-GAAP financial measures may be different than similarly titled measures used by other companies.
These non-GAAP financial measures should not be considered in isolation from, or as substitutes for, financial information prepared in accordance with GAAP. There are limitations related to the use of these non-GAAP financial measures as compared to the most directly comparable GAAP financial measures.
Underwriting Income
We define underwriting income as income before income taxes excluding the impact of net investment income, net realized and unrealized gains (losses) on investments, other income, interest expense, and other expenses (which include expenses related to corporate activities and expenses recorded by us in connection with the Company's initial public offering). Underwriting income is a measure of the pre-tax profitability of our underwriting operations and allows us to evaluate our underwriting performance without regard to net investment income among other things. We use this metric as we believe it gives our management and other users of our financial information useful insight into our underlying business performance. Underwriting income should not be viewed as a substitute for income before income taxes calculated in accordance with GAAP and other companies may define underwriting income differently.
Underwriting income for the three and six months ended June 30, 2025 and 2024 reconciles to income before income taxes as follows:
Adjusted net income attributable to stockholders (previously referred to as adjusted net income attributable to members)
We define adjusted net income attributable to stockholders as net income attributable to stockholders excluding certain other non-operating expenses, which include expenses recorded by us in connection with the Company's initial public offering. We use adjusted net income attributable to stockholders as an internal performance measure in the management of our operations because we believe it gives our management and other users of our financial information useful insight into our results of operations and our underlying business performance. Adjusted net income attributable to stockholders should not be viewed as a substitute for net income attributable to stockholders calculated in accordance with GAAP, and other companies may define adjusted net income differently.
Adjusted net income attributable to stockholders for the three and six months ended June 30, 2025 and 2024 reconciles to net income attributable to stockholders as follows:
Three Months Ended June 30,
Six Months Ended June 30,
($ in thousands)
2025
2024
2025
2024
Net income attributable to stockholders
$
17,622
$
4,944
$
26,083
$
12,700
Adjustments:
Other non-operating expenses (1)
298
—
401
—
Tax impact
(63
)
—
(84
)
—
Adjusted net income attributable to stockholders
$
17,857
$
4,944
$
26,400
$
12,700
Expand
(1)
In the three and six months ended June 30, 2025, other non-operating expenses includes share-based compensation expenses recorded by us related to our initial public offering.
Expand
Adjusted return on stockholders' equity (previously referred to as adjusted return on members' equity)
We define adjusted return on stockholders' equity as adjusted net income attributable to stockholders, expressed as a percentage of average beginning and ending stockholders' equity during the period. Adjusted net income attributable to stockholders excludes the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook, net of tax impact. We use adjusted return on stockholders' equity as an internal performance measure in the management of our operations because we believe it gives our management and other users of our financial information useful insight into our results of operations and our underlying business performance. Adjusted return on stockholders' equity should not be viewed as a substitute for return on stockholders' equity calculated in accordance with GAAP, and other companies may define adjusted return on stockholders' equity and adjusted net income attributable to stockholders differently.
Adjusted return on stockholders' equity for the three and six months ended June 30, 2025 and 2024 reconciles to return on stockholders' equity as follows:
Three Months Ended June 30,
Six Months Ended June 30,
($ in thousands, except percentages)
2025
2024
2025
2024
Numerator: Adjusted net income attributable to stockholders, annualized (1)
$
71,428
$
19,776
$
52,800
$
25,400
Denominator: Average stockholders' equity
493,253
334,977
478,998
329,803
Adjusted return on stockholders' equity
14.5
%
5.9
%
11.0
%
7.7
%
Expand
(1)
For the three and six months ended June 30, 2025 and 2024, net income and adjusted net income are annualized to arrive at return on stockholders' equity and adjusted return on stockholders' equity.
Expand
Adjusted diluted earnings per share
We define adjusted diluted earnings per share as adjusted net income available to stockholders, divided by weighted average common shares outstanding - diluted for the period. We use adjusted diluted earnings per share as an internal performance measure in the management of our operations because we believe it gives our management and other users of our financial information useful insight into our results of operations and our underlying business performance. Adjusted diluted earnings per share should not be viewed as a substitute for diluted earnings per share calculated in accordance with GAAP, and other companies may define adjusted diluted earnings per share differently.
Adjusted diluted earnings per share for the three and six months ended June 30, 2025 and 2024 reconciles to diluted earnings per share as follows:
Conference Call
Ategrity will hold a conference call to discuss this press release today, August 11, at 5:00 p.m. Eastern Time. Interested parties may access the conference call via a live webcast, which can be accessed at https://events.q4inc.com/attendee/426743085 or by visiting the Company's Investor Relations website. Please join the webcast at least 10 minutes before the scheduled start time. A replay of the event webcast will be available on the Company's Investor Relations website approximately two hours following the call, for a period of at least 30 days.
About Ategrity Specialty Insurance Company Holdings
Ategrity Specialty Insurance Company Holdings is a profitable and growing specialty insurance company dedicated to providing excess and surplus ('E&S') products to small to medium-sized businesses across the United States. We have built a proprietary underwriting platform that combines sophisticated data analytics with automated and streamlined processes to efficiently serve our clients and deliver long-term value to our stockholders. The small to medium-sized business market is characterized by large volumes of small-sized policies, and we believe our competitive edge lies in our ability to offer consistent, high-speed, and low-touch interactions that our distribution partners value. This advantage stems from our technology-driven method of standardizing, simplifying, and automating our transaction process, which we call productionized underwriting.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts. You can identify forward-looking statements in this press release by the use of words such as 'anticipates,' 'estimates,' 'expects,' 'intends,' 'plans,' and 'believes,' and similar expressions or future or conditional verbs such as 'will,' 'should,' 'would,' 'may,' and 'could.' These forward-looking statements include, among others, statements relating to our investments in automation and analytics and their expected impact and expected profitable growth. These forward-looking statements are based on management's current expectations and assumptions about future events, which are inherently subject to uncertainties, risks, and changes in circumstances that are difficult to predict.
Our actual results may differ materially from those expressed in, or implied by, the forward-looking statements included in this press release as a result of various factors, including, among others: the risks and uncertainties discussed under the caption 'Risk Factors' in our Prospectus filed pursuant to Rule 424(b)(4) filed with the Securities and Exchange Commission, (the 'SEC') on June 11, 2025 and our other filings with the SEC. Accordingly, you should read this press release completely and with the understanding that our actual future results may be materially different from what we expect.
Forward-looking statements speak only as of the date of this press release. Except as expressly required under federal securities laws and the rules and regulations of the SEC, we do not have any obligation, and do not undertake, to update any forward-looking statements to reflect events or circumstances arising after the date of this press release, whether as a result of new information, future events, or otherwise. You should not place undue reliance on the forward-looking statements included in this press release or that may be made elsewhere from time to time by us, or on our behalf. All forward-looking statements attributable to us are expressly qualified by these cautionary statements.
(Unaudited)
December 31,
2024
(in thousands, except shares and par value data)
Assets:
Fixed maturity securities available-for-sale, at fair value (amortized cost: $415,406 in 2025 and $434,965 in 2024)
$
419,247
$
438,752
Utility & Infrastructure Investments, at fair value (cost of $172,753 in 2025 and $216,075 in 2024)
176,332
270,242
Short-term investments
251,906
52,612
Loans to affiliates
107,501
13,501
Other invested assets
280
280
Total invested assets
955,266
775,387
Cash and cash equivalents
23,529
26,573
Due from broker
2,035
—
Investment income due and accrued
6,539
5,642
Premiums receivable, net of allowance for credit losses of $6,091 in 2025 and $5,907 in 2024
89,156
53,500
Deferred policy acquisition costs, net of ceding commissions
27,583
21,552
Prepaid reinsurance premiums
6,679
3,905
Deferred income tax asset, net
10,322
9,670
Reinsurance recoverable, net of allowance for credit losses of $0 in 2025 and $0 in 2024
155,432
133,616
Receivable from affiliates, net
744
16,857
Ceded unearned premiums
73,163
68,205
Other assets
12,704
8,531
Total assets
$
1,363,152
$
1,123,438
Liabilities, stockholders' equity and non-controlling interest:
Liabilities:
Reserves for unpaid losses and loss adjustment expenses
451,466
403,576
Unearned premiums
259,700
212,828
Securities sold, not yet purchased, at fair value (cost of $0 in 2025 and $932 in 2024)
—
930
Payable to reinsurers
38,124
27,160
Due to broker
—
9,189
Accounts payable and accrued expenses
31,067
38,061
Funds held under reinsurance treaties
1,982
2,092
Income tax payable
17,249
26,488
Other liabilities
3,391
4,307
Total liabilities
802,979
724,631
Stockholders' equity:
Preferred stock, $0.001 par value, 100,000,000 shares authorized and none issued or outstanding.
—
—
Common stock, $0.001 par value, 500,000,000 shares authorized, 48,066,674 and 38,386,433 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively.
48
38
Additional paid-in capital
495,954
360,703
Retained earnings
60,652
34,569
Accumulated other comprehensive income
3,035
2,997
Total stockholders' equity
559,689
398,307
Non-controlling interest - General Partner
484
500
Total stockholders' equity and non-controlling interest
560,173
398,807
Total liabilities, stockholders' equity and non-controlling interest
$
1,363,152
$
1,123,438
Expand
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
(in thousands, except per share amounts)
Revenues
Gross written premiums
$
167,502
$
126,614
$
283,645
$
208,219
Ceded written premiums
(50,231
)
(41,838
)
(76,503
)
(61,187
)
Net written premiums
117,271
84,776
207,142
147,032
Change in unearned premiums
(30,343
)
(12,138
)
(41,913
)
(6,115
)
Net premiums earned
86,928
72,638
165,229
140,917
Fee income
1,524
191
2,084
316
Net investment income
11,891
5,728
19,786
10,981
Net realized and unrealized gains (losses) on investments
1,409
(4,215
)
(3,190
)
(1,828
)
Other income
28
24
993
48
Total revenues
101,780
74,366
184,902
150,434
Expenses
Losses and loss adjustment expenses
50,412
44,128
97,274
85,174
Underwriting, acquisition and insurance expenses
28,430
24,315
53,315
47,705
Interest expense
447
544
894
1,094
Other expenses
161
56
399
110
Total expenses
79,450
69,043
151,882
134,083
Income before income taxes
22,330
5,323
33,020
16,351
Income tax expense
4,713
1,207
6,953
3,277
Net income
17,617
4,116
26,067
13,074
(5
)
(828
)
(16
)
374
Net income attributable to stockholders
17,622
4,944
26,083
12,700
Other comprehensive income:
Unrealized gains (losses), net of taxes
152
840
38
3,349
Total comprehensive income attributable to stockholders
$
17,774
$
5,784
$
26,121
$
16,049
Earnings per share:
Basic
$
0.40
$
0.14
$
0.61
$
0.35
Diluted
$
0.39
$
0.14
$
0.60
$
0.35
Weighted-average shares outstanding:
Basic
42,084,982
36,242,682
41,191,609
36,235,158
Diluted
43,584,999
36,243,959
42,246,997
36,235,950
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Dream Unlimited Corp. Reports Second Quarter Results & Advancement of Next Master-Planned Community
TORONTO--(BUSINESS WIRE)-- Dream Unlimited Corp. (TSX: DRM) ('Dream', 'the Company' or 'we') today announced its financial results for the three and six months ended June 30, 2025 ('second quarter'). 'Even with the uncertainty due to tariffs and housing policy, we have continued to make significant progress on our long-term business plan,' said Michael Cooper, Chief Responsible Officer. 'With our progress developing Alpine Park in Calgary and the commencement of two new communities, being the 1,100-acre Holmwood community in Saskatoon, as well as the 1,200-acre Coopertown community in Regina, we expect our Western Canada land business to be more profitable in the future relative to the past. In addition, the continued development of new income properties in Western Canada and the National Capital Region, along with the Distillery and other Toronto assets, has provided us with growing asset value and net operating income in this segment. With growth in our asset management business, all three major segments of the Company are advancing well. We continue to improve our public disclosures to provide a clearer understanding of our business with asset management, income properties and Western Canada representing more than 80% of our value. We provided net asset value for the business at our annual meeting, and the current results are in line with the value we disclosed. Overall, we are on track for another year of solid performance.' General Business Update Our Western Canadian land and housing business completed its best year ever in 2024. This success has carried into 2025 as we position the division for future growth with the introduction of three new communities and the expansion of our multi-family developments. Next quarter, we are breaking ground on the development of our 1,200-acre community in Regina which will provide us with growth opportunities in the city for many years. Coopertown is the first new community in Regina in nearly ten years and expected to welcome approximately 21,000 residents over its 20-year buildout. We also anticipate developing income properties in Regina, similar to what we have done in Saskatoon. In Saskatoon, we are progressing on the sale of the school site in Holmwood which will accommodate 3,400 students. In addition, we have pre-sold 27-acres to a leading retail developer to start the commercial development in Holmwood. As a result, we will be able to progress our single family, multi-family, retail and commercial development simultaneously in the community. In Calgary, our 200-acre expansion of Alpine Park is well underway with closings expected in 2025 and 2026, while we continue to make progress on sales for future periods. The introduction of Alpine Park has been very well received and with about 500 more acres to develop, the community is expected to be a significant profit contributor for many years. We have commenced construction on our retail and first apartment in Alpine Park, as well as our fourth apartment building in Brighton (Saskatoon), another 100 townhouses and a further 40 single family residences. Our third apartment building being a 125-unit building in Brighton began occupancy at the beginning of June and we are already over 70% occupied in the first ten weeks of lease up. As a result, we have completed or have under construction, 660 apartment units, 220 townhouses and 140 single family units for a total of over 1,000 units in this newly created business line. Our asset management business has grown by $2.5 billion over the past twelve months resulting in Dream having more private assets under management than public, which is exceptional growth since we started this division in 2020. We expect to see continued growth based on our current initiatives over the next few years. Our third major segment, our income properties, continues to expand quickly as we complete buildings and progress in lease-up. While we have some erosion due to cap rate expansion in Ontario, our net operating income is growing in line with expectations, and we are pleased with the lease-up of new buildings recently. While development in Toronto is challenging, we are making progress on our client's major projects and expect to commence development of 49 Ontario St. in 2025 and Quayside in 2026. Consolidated Results Overview In the second quarter the Company revised its segment presentation to better reflect how our business has grown and how we manage the various components. Accordingly, the comparative period presentation of segments has also been updated to conform to the new presentation. For segment details, refer to the financial statements and the management's discussion and analysis of the financial condition and results of operations of the Company for the three and six months ended June 30, 2025, dated August 12, 2025 (the 'MD&A for the second quarter of 2025'). A summary of our consolidated results for the second quarter is included in the table below. Losses before income taxes for the second quarter were $28.5 million, a decrease from the comparative period. Prior period results included significant earnings from two parcels of land sold in Edmonton, performance fees related to the Dream U.S. Industrial Fund and operational results from Arapahoe Basin, which was sold at the end of 2024. The Company's consolidated results include non-cash fair value adjustments relating to Dream Impact Trust and Dream Impact Fund units held by third parties, the magnitude of which differed in each reporting period. Earnings for the second quarter were generally in line with management's expectations as the majority of income from Western Canada development is weighted in the second half of the year. As of June 30, 2025, we had available liquidity (1) of $345 million and $218 million of contractual debt maturities expected in 2025. Of this amount of debt, the majority is either in advanced lender discussions for extensions or expected to be rolled as part of the annual renewal process. We proactively work with our lenders to address upcoming maturities and work towards increasing liquidity over time to create flexibility to participate in discretionary investments as they arise and to withstand sudden adverse changes in economic conditions. Results Highlights (Asset management, Western Canada development, Income properties): In the second quarter, our asset management business generated revenue and net margin of $11.6 million and $6.9 million, respectively, compared to $27.5 million and $22.8 million in the comparative period. The comparative figures included performance fees of $15.7 million related to the Dream U.S. Industrial Fund, with no similar activity in the current period. Transactional and performance-related fees are expected to fluctuate period to period. In the second quarter, we achieved 44 lot sales and 19 housing occupancies in Western Canada, generating net margin of $1.1 million, compared to $31.3 million in the comparative period. Prior year results included the sale of two parcels of land sold in Edmonton totalling 146 acres, generating revenue of $39.5 million and net margin of $28.1 million. Excluding these transactions, net margin for the division was relatively in line with prior year as lots sold in 2025 generated a higher margin due to the specific product mix sold. We continue to make progress on our land pre-sales commitments. As of August 8, 2025, we have a total of $155.0 million in sales commitments to be recognized between 2025 and 2026 (in addition to the $21.2 million recognized in 2025 to date) and another $27.5 million from acre sales secured in 2027. Our income properties generated revenue and net operating income of $12.2 million and $6.8 million, respectively, in 2025, up slightly from prior year. Growth in the segment was largely driven by the lease-up of our purpose-built rentals in Brighton (Saskatoon). Other items: Our other investments segment generated $14.8 million in revenue and $4.5 million of negative margin in the second quarter, compared to $41.2 million in revenue and $6.2 million of negative margin in the prior period. Fluctuations in revenue and net loss were largely driven by prior year results from Arapahoe Basin which was sold in the fourth quarter of 2024 and occupancies at IVY condominium and Phase 2 of Riverside Square with limited occupancies in 2025, in line with management's expectations. Included in this segment are platform costs associated with our Toronto and Ottawa development teams. Dream has published a supplemental information package on our website concurrent with the release of our second quarter results. Conference call Senior management will host a conference call to discuss the financial results on Wednesday, August 13, 2025, at 10:00 AM (ET). To access the conference call, please dial 1-833-752-4596 (toll free) or 647-849-3316 (toll). To access the conference call via webcast, please go to Dream's website at and click on the link for News, then click on Events. A taped replay of the conference call and the webcast will be available for ninety (90) days following the call. Other Information Information appearing in this press release is a select summary of results. The financial statements and MD&A for the second quarter of 2025 for the Company are available at and on About Dream Unlimited Corp. Dream is a leading real estate developer and has an established and successful asset management business, inclusive of $28 billion of assets under management* as at June 30, 2025 across four Toronto Stock Exchange ("TSX") listed trusts, our private asset management business and numerous partnerships. We develop land and housing in our master planned communities in Western Canada and hold a growing portfolio of income generating properties across Canada. Dream expects this area of our business to grow as investment properties under construction are completed and held for the long term. Dream has a proven track record for being innovative and for our ability to source, structure and execute on compelling investment opportunities. Non-GAAP Measures and Other Disclosures In addition to using financial measures determined in accordance with International Financial Reporting Accounting Standards as issued by the International Accounting Standards Board ('IFRS Accounting Standards'), we believe that important measures of operating performance include certain financial measures that are not defined under IFRS Accounting Standards. Throughout this press release, there are references to certain non-GAAP financial measures and ratios and supplementary financial measures, including Dream Impact Trust and consolidation and fair value adjustments, available liquidity, net operating income and, standalone figures by division, which management believes are relevant in assessing the economics of the business of Dream. These performance and other measures are not financial measures under IFRS Accounting Standards, and may not be comparable to similar measures disclosed by other issuers. However, we believe that they are informative and provide further insight as supplementary measures of financial performance, financial position or cash flow, or our objectives and policies, as applicable. Certain additional disclosures such as the composition, usefulness and changes, as applicable, of the non-GAAP financial measures and ratios included in this press release have been incorporated by reference from the 'MD&A for the second quarter of 2025' and can be found under the section 'Non-GAAP Ratios and Financial Measures', subheadings 'Net operating income' and 'Dream Impact Trust and consolidation and fair value adjustments'. The composition of supplementary financial measures included in this press release has been incorporated by reference from the MD&A for the second quarter of 2025 and can be found under the section 'Supplementary and Other Financial Measures'. The MD&A for the second quarter of 2025 is available on SEDAR+ at under Dream's profile and on Dream's website at under the Investors section. Non-GAAP Ratios and Financial Measures " Dream Impact Trust and consolidation and fair value adjustments" represent certain IFRS Accounting Standards adjustments required to reconcile Dream standalone and Dream Impact Trust results to the consolidated results as at June 30, 2025 and December 31, 2024 and for the three and six months ended June 30, 2025 and December 31, 2024. Management believes Dream Impact Trust and consolidation and fair value adjustments provides investors useful information in order to reconcile it to the Dream Impact Trust financial statements. Consolidation and fair value adjustments relate to business combination adjustments on acquisition of Dream Impact Trust on January 1, 2018 and related amortization, elimination of intercompany balances including the investment in Dream Impact Trust units, adjustments for co-owned projects, fair value adjustments to the Dream Impact Trust units held by other unitholders, and deferred income taxes. ' Net operating income" is a non-GAAP measure and represents revenue, less (i) direct operating costs and (ii) selling, marketing, depreciation and other indirect costs, but including: (iii) depreciation; and (iv) general and administrative expenses. The most directly comparable financial measure to net operating revenue is net margin. This non-GAAP measure is an important measure used by management to assess the profitability of the Company's income property segment. Net operating income for the income properties segment for the three and six months ended June 30, 2025 and 2024 is calculated and reconciled to net margin as follows: 'Standalone Figures by Division' is a non-GAAP measure and represents the results of Dream, excluding the impact of Dream Impact Trust's consolidated results and IFRS Accounting Standards adjustments to reflect Dream's direct ownership of our partnerships. Direct ownership refers to Dream Unlimited Corp.'s interest in subsidiaries and partnerships and excludes any non-controlling interest in the noted entities based on units held as of the end of the reporting period. The most direct comparable financial measure to Dream standalone is consolidated Dream. This non-GAAP measure is an important measure used by the Company to evaluate earnings against historical periods, including results prior to the acquisition of control of Dream Impact Trust. (1) Refer to the "Non-GAAP Measures and Other Disclosures" section of the MD&A for second quarter of 2025 for the definition of Dream Impact Trust and consolidation and fair value adjustments, Dream standalone adjustments and Dream standalone, which are non-GAAP financial measures. (2) The adjustments related to Dream Impact Trust and Dream Impact Fund units relate to non-controlling interest of properties held across various reporting segments. These line items are included in Corporate as they are reviewed on a consolidated basis. Expand For the six months ended June 30, 2024 Revenue $ 39,336 $ 21,578 $ 76,799 $ 102,781 $ — $ 240,494 $ 96,029 $ 336,523 Direct operating costs (8,111) (11,172) (36,797) (84,533) — (140,613) (92,089) (232,702) Gross margin 31,225 10,406 40,002 18,248 — 99,881 3,940 103,821 Selling, marketing, depreciation and other operating costs — (2,818) (9,101) (6,861) — (18,780) (4,835) (23,615) Net margin 31,225 7,588 30,901 11,387 — 81,101 (895) 80,206 Fair value changes in investment properties — 2,721 — — — 2,721 (11,867) (9,146) Other income and expenses (631) (908) 922 (25,326) 234 (25,709) 32,952 7,243 Interest expense (10) (9,024) (2,438) (1,641) (7,208) (20,321) (16,578) (36,899) Share of earnings (loss) from equity accounted investments — — — (799) — (799) 7,370 6,571 Net segment earnings (loss) 30,584 377 29,385 (16,379) (6,974) 36,993 10,982 47,975 General and administrative expenses — — — — (11,398) (11,398) (896) (12,294) Adjustments related to Dream Impact Trust units (2) — — — — — — 30,694 30,694 Adjustments related to Dream Impact Fund units (2) — — — — — — 5,263 5,263 Income tax (expense) recovery — — — — (3,619) (3,619) 5,710 2,091 Net earnings (loss) $ 30,584 $ 377 $ 29,385 $ (16,379) $ (21,991) $ 21,976 $ 51,753 $ 73,729 (1) Refer to the "Non-GAAP Measures and Other Disclosures" section of the MD&A for second quarter of 2025 for the definition of Dream Impact Trust and consolidation and fair value adjustments, Dream standalone adjustments and Dream standalone, which are non-GAAP financial measures. (2) The adjustments related to Dream Impact Trust and Dream Impact Fund units relate to non-controlling interest of properties held across various reporting segments. These line items are included in Corporate as they are reviewed on a consolidated basis. Expand Forward-Looking Information This press release may contain forward-looking information within the meaning of applicable securities legislation, including, but not limited to, statements regarding our objectives and strategies to achieve those objectives; our beliefs, plans, estimates, projections and intentions, and similar statements concerning anticipated future events, future growth, expected net proceeds from sales or transactions, results of operations, performance, business prospects and opportunities, acquisitions or divestitures, tenant base, future maintenance and development plans and costs, capital investments, financing, the availability of financing sources, income taxes, vacancy and leasing assumptions, litigation and the real estate industry in general; as well as specific statements in respect of our expectations regarding our development plans, including sizes, uses, density, number of units, amenities and timing thereof; our expectations regarding the performance of Western Canada division, including future profitability; our growth opportunities in Regina and our ability to develop income properties in that market; the expected profitability of our Alpine Park development and the anticipated future sales and closing in that project; our expectations regarding our asset management division, including expected growth; our expectations regarding the 49 Ontario St. and Quayside projects, including development timelines; our expected debt maturities in future periods and our ability to refinance indebtedness in the normal course; our expectations regarding future sales of homes and land; our ability to ultimately consummate future land commitments, and the timing thereof; our ability to maintain strong liquidity and our expectation that we will be well positioned for new investments as they arise; the contribution of our Other Investment segment to earnings in future periods. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Dream's control, which could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These assumptions include, but are not limited to: the nature of development lands held and the development potential of such lands, interest rates and inflation remaining in line with management expectations, our ability to bring new developments to market, anticipated positive general economic and business conditions, including low unemployment and interest rates, that duties, tariffs and other trade restrictions, if any, will not materially impact our business, positive net migration, oil and gas commodity prices, our business strategy, including geographic focus, anticipated sales volumes, performance of our underlying business segments and conditions in the Western Canada land and housing markets. Risks and uncertainties include, but are not limited to, general and local economic and business conditions, the impact of public health crises and epidemics, employment levels, risks associated with unexpected or ongoing geopolitical events, including disputes between nations, terrorism or other acts of violence, international sanctions and the disruption of movement of goods and services across jurisdictions, inflation or stagflation, regulatory risks, mortgage and interest rates and regulations, risks related to a potential economic slowdown in certain of the jurisdictions in which we operate and the effect inflation and any such economic slowdown may have on market conditions and lease rates, risks related to the imposition of duties, tariffs and other trade restrictions and their impacts, environmental risks, consumer confidence, seasonality, adverse weather conditions, reliance on key clients and personnel and competition. All forward-looking information in this press release speaks as of August 12, 2025. Dream does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise, except as required by law. Additional information about these assumptions and risks and uncertainties is disclosed in filings with securities regulators filed on SEDAR+ ( Endnotes:
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Tecogen Reports Second Quarter 2025 Financial Results
NORTH BILLERICA, MA / / August 12, 2025 / Tecogen Inc. (NYSE American:TGEN), a leading manufacturer of clean energy products, reported revenues of $7.29 million and net loss of $1.47 million for the quarter ended June 30, 2025 compared to revenues of $4.73 million, and a net loss of $1.54 million in 2024. Our cash and cash equivalents balance was $1.64 million at June 30, 2025. Abinand Rangesh, CEO of Tecogen, commented that "since our last earnings call we have made tremendous progress with our data center strategy and achieved several key milestones. We received our first LOI for a great pilot project. This is for a 100+MW data center with the potential to be a 500+MW site. The customer expects to evaluate 6 STx chillers during the first phase of the project. If successful, more chillers will be used in subsequent phases. We expect the LOI to convert to a PO later this year and we hope to grow with this customer. In the last three months, our marketing has generated great leads. We have now quoted two projects for 60 to 100 chillers each. We have multiple other projects that are earlier stage but have similar potential. We've also received feedback on how customers are making purchasing decisions. During the call, I will address what these are and the steps we are taking so we can convert these leads into orders. The only setback this quarter was the reduction in the gross profit margin which drove the net loss. Product margin was lower because we started shipping the hybrid air-cooled chiller. As expected, the first few units had higher costs due to low volume material purchasing and as our team gained experience building the product. We expect the hybrid chiller margin to increase with volume production. The other products shipped this quarter had similar margins as previous quarters. Overall service margin declined because of one region - Manhattan and NJ. This was in part due to bulk oil system upgrades for our InVerde fleet. This has a short term impact on profitability but increases service intervals by 150% to 200%. We also experienced increased overtime hours. During the call, we will discuss the new protocols we have implemented to restore this territory to profitability. Given the size of potential projects, the ability to manufacture and ship significant volumes of chillers is critical. We have hired talent in manufacturing and engineering. The additional staffing was a significant factor in our increased operating expenses, which increased by 9% in Q2 2025 compared to last year. To provide the necessary capital to scale our business, we also raised $18.2 million in July. The capital raised will be used to increase factory output and for marketing. I will share more details on the data center projects, Vertiv and scale up plan tomorrow." Key Takeaways Net Loss and Earnings Per Share Net loss for the quarter ended June 30, 2025 was $1.46 million compared to a net loss of $1.54 million for the same period of 2024, a decrease of $0.07 million, due to increased gross profit from our Products and Services segments. EPS for the quarter ended June 30, 2025 and 2024 was a loss of $(0.06)/share, respectively. Net loss for the six months ended June 30, 2025 was $2.12 million compared to a net loss of $2.64 million for the same period of 2024, a decrease of $0.52 million, due to increased gross profit from our Products and Services segments. EPS for the six months ended June 30, 2025 and 2024 was a loss of $(0.08)/share and $(0.11)/share, respectively. Loss from Operations Loss from operations for the quarter ended June 30, 2025 was $1.41 million compared to a loss from operations of $1.47 million for the same period in 2024, a decrease of $0.06 million, due to increased gross profit from our Products and Services segments. Loss from operations for the six ended June 30, 2025 was $2.01 million compared to a loss from operations of $2.52 million for the same period in 2024, a decrease of $0.52 million, due to increased gross profit from our Products and Services segments. Revenues Revenues for the quarter ended June 30, 2025 were $7.29 million compared to $4.73 million for the same period in 2024, a 54.3% increase. Products revenues in the quarter ended June 30, 2025 were $3.16 million compared to $0.12 million for the same period in 2024, an increase of 2,536.6%. The increase in revenue during the quarter ended June 30, 2025 is due to increased chiller and cogeneration revenue, which included the initial deliveries of our hybrid-drive air-cooled chiller. Services revenues in the quarter ended June 30, 2025 were $3.97 million, compared to $4.13 million for the same period in 2024, a decrease of 3.9% due to decreased revenues from the acquired Aegis maintenance contracts. Energy Production revenues in the quarter ended June 30, 2025 were $0.17 million compared to $0.48 million for the same period in 2024, a decrease of 63.8%. The decrease in Energy Production revenue is due to contract expirations at certain energy production sites in late 2024 and the temporary shutdown of a few energy production sites for repairs. Revenues for the six months ended June 30, 2025 were $14.57 million compared to $10.91 million for the same period in 2024, a 33.5% increase. Products revenues in the six months ended June 30, 2025 were $5.69 million compared to $1.61 million for the same period in 2024, an increase of 253.1%. The increase in revenue during the six months ended June 30, 2025 is due to increased chiller and cogeneration revenue, which included the initial deliveries of our hybrid-drive air-cooled chiller. Services revenues in the six months ended June 30, 2025 were $8.21 million, compared to $8.14 million for the same period in 2024, an increase of 0.9% due to increased revenues from existing contracts, offset by decreased revenues from the acquired Aegis maintenance contacts. Energy Production revenues in the six months ended June 30, 2025 were $0.67 million compared to $1.16 million for the same period in 2024, a decrease of 42.1%. The decrease in Energy Production revenue is due to contract expirations at certain energy production sites in late 2024 and the temporary shutdown of a few energy production sites for repairs. Gross Profit Gross profit for the quarter ended June 30, 2025 was $2.46 million compared to $2.08 million in the same period in 2024. Gross margin decreased to 33.8% in the quarter ended June 30, 2025 compared to 44.0% for the same period in 2024. The decrease in gross margin was due to higher material and labor costs in our Products and Services segments in the quarter ended June 30, 2025. Gross profit for the six months ended June 30, 2025 was $5.68 million compared to $4.65 million in the same period in 2024. Gross margin decreased to 39.0% in the six months ended June 30, 2025 compared to 42.7% for the same period in 2024. The decrease in gross margin was due to higher material and labor costs in our Products and Services segments in the the six months ended June 30, 2025. Operating Expenses Operating expenses increased $0.32 million, or 9.0%, to $3.87 million in the quarter ended June 30, 2025 compared to $3.55 million in the same period in 2024, due to increased payroll, benefits, recruitment costs, and sales commissions. Operating expenses increased $0.51 million, or 7.1%, to $7.69 million in six months ended June 30, 2025 compared to $7.18 million in the same period in 2024, due to increased payroll, benefits, recruitment costs and sales commissions. Adjusted EBITDA Adjusted EBITDA was negative $1.16 million for the quarter ended June 30, 2025 compared to negative $1.30 million for the quarter ended June 30, 2024. For the six months ended June 30, 2025, adjusted EBITDA was a negative $1.54 million compared to a negative $2.19 million for the six months ended June 30, 2024. (Adjusted EBITDA is defined as net income or loss attributable to Tecogen, adjusted for interest, income taxes, depreciation and amortization, stock-based compensation expense, unrealized gain or loss on investment securities, goodwill impairment charges and other non-cash non-recurring charges or gains including abandonment of intangible assets and asset impairment. See the table following the Condensed Consolidated Statements of Operations for a reconciliation from net income (loss) to Adjusted EBITDA, as well as important disclosures about the Company's use of Adjusted EBITDA). Conference Call Scheduled for August 13, 2025, at 9:30 am ET Tecogen will host a conference call on August 13, 2025 to discuss the second quarter results beginning at 9:30 am eastern time. To listen to the call please dial (877) 407-7186 within the U.S. and Canada, or +1 (201) 689-8052 from other international locations. Participants should ask to be joined to the Tecogen Second Quarter conference call. Please begin dialing 10 minutes before the scheduled starting time. The earnings press release will be available on the Company website at in the "News and Events" section under "About Us." The earnings conference call will be webcast live. To view the associated slides, register for and listen to the webcast, go to Following the call, the recording will be archived for 14 days. The earnings conference call will be recorded and available for playback one hour after the end of the call. To listen to the playback, dial (877) 660-6853 within the U.S. and Canada, or (201) 612-7415 from other international locations and use Conference Call ID#: 13752231. About Tecogen Tecogen Inc. designs, manufactures, sells, installs, and maintains high efficiency, ultra-clean, cogeneration products including engine-driven combined heat and power, air conditioning systems, and high-efficiency water heaters for residential, commercial, recreational and industrial use. The company provides cost effective, environmentally friendly and reliable products for energy production that nearly eliminate criteria pollutants and significantly reduce a customer's carbon footprint. In business for over 35 years, Tecogen has shipped more than 3,200 units, supported by an established network of engineering, sales, and service personnel in key markets in North America. For more information, please visit or contact us for a free Site Assessment. Forward Looking Statements This press release contains "forward-looking statements" which may describe strategies, goals, outlooks or other non-historical matters, or projected revenues, income, returns or other financial measures, that may include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "project," "target," "potential," "will," "should," "could," "likely," or "may" and similar expressions intended to identify forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from those expressed or implied by such forward-looking statements. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to update or revise any forward-looking statements except as required under the securities laws. In addition to those factors described in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q and in our Current reports on Form 8-K, under "Risk Factors," and elsewhere therein, among the factors that could cause actual results to differ materially from past and projected future results are the following: fluctuations in demand for our products and services, competing technological developments, issues relating to research and development, the availability of incentives, rebates, and tax benefits relating to our products and services, changes in the regulatory environment relating to our products and services, integration of acquired business operations, the impact of tariffs, and the ability to obtain financing on favorable terms to fund existing operations and anticipated growth. In addition to GAAP financial measures, this press release includes certain non-GAAP financial measures, including adjusted EBITDA which excludes certain expenses as described in the presentation. We use Adjusted EBITDA as an internal measure of business operating performance and believe that the presentation of non-GAAP financial measures provides a meaningful perspective of the underlying operating performance of our current business and enables investors to better understand and evaluate our historical and prospective operating performance by eliminating items that vary from period to period without correlation to our core operating performance and highlights trends in our business that may not otherwise be apparent when relying solely on GAAP financial measures. Tecogen Media & Investor Relations Contact Information:Abinand RangeshP: 781-466-6487E: TECOGEN CONSOLIDATED BALANCE SHEETS(unaudited) June 30, 2025 December 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 1,640,864 $ 5,405,233 Accounts receivable, net 6,640,483 6,026,545 Inventories, net 9,679,229 9,634,005 Unbilled revenue 126,738 398,898 Prepaid and other current assets 949,256 680,565 Total current assets 19,036,570 22,145,246 Long-term assets: Property, plant and equipment, net 1,820,059 1,738,036 Right-of-use assets - operating leases 1,728,780 1,730,358 Right-of-use assets - finance leases 933,671 452,390 Intangible assets, net 2,330,959 2,513,189 Goodwill 2,346,566 2,346,566 Other assets 155,232 166,474 TOTAL ASSETS $ 28,351,837 $ 31,092,259 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Related party notes, current portion $ - $ 1,548,872 Accounts payable 4,946,218 4,142,678 Accrued expenses 2,976,211 2,890,886 Deferred revenue, current portion 4,420,644 6,701,131 Operating lease obligations, current portion 481,891 430,382 Finance lease obligations, current portion 173,362 85,646 Acquisition liabilities, current portion 883,541 902,552 Unfavorable contract liability, current portion 83,962 113,449 Total current liabilities 13,965,829 16,815,596 Long-term liabilities: Related party notes, net of current portion 1,067,848 - Deferred revenue, net of current portion 1,252,831 1,165,951 Operating lease obligations, net of current portion 1,295,450 1,341,789 Finance lease obligations, net of current portion 675,198 325,235 Acquisition liabilities, net of current portion 878,151 1,008,760 Unfavorable contract liability, net of current portion 275,079 309,390 Total liabilities 19,410,386 20,966,721 Commitments and contingencies Stockholders' equity: Tecogen Inc. stockholders' equity: Common stock, $0.001 par value; 100,000,000 shares authorized; 25,571,490 issued and outstanding at June 30, 2025 and 24,950,261 shares issued and outstanding at December 31, 2024 25,571 24,950 Additional paid-in capital 58,837,181 57,845,289 Accumulated deficit (49,763,921 ) (47,639,894 ) Total Tecogen Inc. stockholders' equity 9,098,831 10,230,345 Non-controlling interest (157,380 ) (104,807 ) Total stockholders' equity 8,941,451 10,125,538 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 28,351,837 $ 31,092,259 TECOGEN CONSOLIDATED STATEMENTS OF OPERATIONS(unaudited) Three Months Ended June 30, 2025 June 30, 2024 Revenues Products $ 3,155,323 $ 119,673 Services 3,965,168 4,126,517 Energy production 174,329 481,597 Total revenues 7,294,820 4,727,787 Cost of sales Products 2,232,155 171,982 Services 2,469,737 2,191,815 Energy production 130,436 284,835 Total cost of sales 4,832,328 2,648,632 Gross profit 2,462,492 2,079,155 Operating expenses: General and administrative 3,091,175 2,897,993 Selling 514,735 405,277 Research and development 268,724 246,489 (Gain) loss on disposition of assets (280 ) 3,363 Total operating expenses 3,874,354 3,553,122 Loss from operations (1,411,862 ) (1,473,967 ) Other income (expense) Other income (expense), net (6,378 ) 18,894 Interest expense (38,153 ) (17,869 ) Unrealized loss on investment securities - (37,497 ) Total other income (expense), net (44,531 ) (36,472 ) Loss before provision for state income taxes (1,456,393 ) (1,510,439 ) Provision for state income taxes 16,762 37 Consolidated net loss (1,473,155 ) (1,510,476 ) (Income) loss attributable to the non-controlling interest 9,050 (28,320 ) Loss attributable to Tecogen Inc. $ (1,464,105 ) $ (1,538,796 ) Net loss per share - basic $ (0.06 ) $ (0.06 ) Weighted average shares outstanding - basic 25,250,217 24,850,261 Net loss per share - diluted $ (0.06 ) $ (0.06 ) Weighted average shares outstanding - diluted 25,250,127 24,850,261 Three Months Ended June 30, 2025 June 30, 2024 Non-GAAP financial disclosure (1) Net loss attributable to Tecogen Inc. $ (1,464,105 ) $ (1,538,796 ) Interest expense, net 38,153 17,869 Income taxes 16,762 37 Depreciation & amortization, net 205,686 141,361 EBITDA (1,203,504 ) (1,379,529 ) Stock based compensation 42,606 45,463 Unrealized loss on investment securities - 37,497 Adjusted EBITDA $ (1,160,898 ) $ (1,296,569 ) (1) Non-GAAP Financial Measures In addition to reporting net income, a U.S. generally accepted accounting principle ("GAAP") measure, this news release contains information about Adjusted EBITDA (net income (loss) attributable to Tecogen Inc adjusted for interest, income taxes, depreciation and amortization, stock-based compensation expense, unrealized gain or loss on investment securities, goodwill impairment charges and other non-cash non-recurring charges including abandonment of certain intangible assets), which is a non-GAAP measure. The Company believes Adjusted EBITDA allows investors to view its performance in a manner similar to the methods used by management and provides additional insight into its operating results. Adjusted EBITDA is not calculated through the application of GAAP. Accordingly, it should not be considered as a substitute for the GAAP measure of net income and, therefore, should not be used in isolation of, but in conjunction with, the GAAP measure. The use of any non-GAAP measure may produce results that vary from the GAAP measure and may not be comparable to a similarly defined non-GAAP measure used by other companies. TECOGEN CONSOLIDATED STATEMENTS OF OPERATIONS(unaudited) Six Months Ended June 30, 2025 June 30, 2024 Revenues Products $ 5,689,132 $ 1,611,071 Services 8,210,190 8,140,827 Energy production 673,268 1,161,985 Total revenues 14,572,590 10,913,883 Cost of sales Products 3,719,905 1,221,525 Services 4,728,635 4,284,072 Energy production 440,518 753,475 Total cost of sales 8,889,058 6,259,072 Gross profit 5,683,532 4,654,811 Operating expenses: General and administrative 6,019,310 5,746,559 Selling 1,109,216 934,946 Research and development 561,392 501,185 Gain on sale of assets (280 ) (4,028 ) Total operating expenses 7,689,638 7,178,662 Loss from operations (2,006,106 ) (2,523,851 ) Other income (expense) Other income (expense), net (20,623 ) 3,147 Interest expense (70,479 ) (36,539 ) Unrealized loss on investment securities (18,749 ) (18,749 ) Total other income (expense), net (109,851 ) (52,141 ) Loss before provision for state income taxes (2,115,957 ) (2,575,992 ) Provision for state income taxes 17,687 22,100 Consolidated net loss (2,133,644 ) (2,598,092 ) (Income) loss attributable to non-controlling interest 9,617 (45,671 ) Net loss attributable to Tecogen Inc. $ (2,124,027 ) $ (2,643,763 ) Net loss per share - basic $ (0.08 ) $ (0.11 ) Weighted average shares outstanding - basic 25,103,388 24,850,261 Net loss per share - diluted $ (0.08 ) $ (0.11 ) Weighted average shares outstanding - diluted 25,103,388 24,850,261 Six Months Ended June 30, 2025 June 30, 2024 Non-GAAP financial disclosure (1) Net loss attributable to Tecogen Inc. $ (2,124,027 ) $ (2,643,763 ) Interest expense, net 70,479 36,539 Income taxes 17,687 22,100 Depreciation & amortization, net 391,381 281,498 EBITDA (1,644,480 ) (2,303,626 ) Stock based compensation 83,439 89,998 Unrealized loss on marketable securities 18,749 18,749 Adjusted EBITDA $ (1,542,292 ) $ (2,194,879 ) (1) Non-GAAP Financial Measures In addition to reporting net income, a U.S. generally accepted accounting principle ("GAAP") measure, this news release contains information about Adjusted EBITDA (net income (loss) attributable to Tecogen Inc adjusted for interest, income taxes, depreciation and amortization, stock-based compensation expense, unrealized gain or loss on investment securities, goodwill impairment charges and other non-cash non-recurring charges including abandonment of certain intangible assets), which is a non-GAAP measure. The Company believes Adjusted EBITDA allows investors to view its performance in a manner similar to the methods used by management and provides additional insight into its operating results. Adjusted EBITDA is not calculated through the application of GAAP. Accordingly, it should not be considered as a substitute for the GAAP measure of net income and, therefore, should not be used in isolation of, but in conjunction with, the GAAP measure. The use of any non-GAAP measure may produce results that vary from the GAAP measure and may not be comparable to a similarly defined non-GAAP measure used by other companies. TECOGEN CONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited) Six Months Ended June 30, 2025 June 30, 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Consolidated net loss $ (2,133,644 ) $ (2,598,092 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 391,381 281,498 Provision for (recovery of) credit losses (75,000 ) 19,063 Stock-based compensation 83,439 89,998 Unrealized loss on investment securities 18,749 18,749 Gain on disposition of assets (280 ) (4,028 ) Non-cash interest expense 33,538 12,800 Changes in operating assets and liabilities (Increase) decrease in: Accounts receivable (538,938 ) 1,398,193 Inventory (45,224 ) 439,926 Unbilled revenue 272,160 - Prepaid assets and other current assets (268,691 ) (125,784 ) Other assets 186,766 576,926 Increase (decrease) in: Accounts payable 803,540 (108,646 ) Accrued expenses and other current liabilities 85,325 39,838 Deferred revenue (2,193,607 ) 806,266 Other liabilities (395,134 ) (756,410 ) Net cash provided by (used in) operating activities (3,775,620 ) 90,297 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (277,989 ) (556,636 ) Proceeds from disposition of assets 280 36,213 Distributions to non-controlling interest (42,956 ) (48,654 ) Net cash used in investing activities (320,665 ) (569,077 ) CASH FLOWS FROM FINANCING ACTIVITIES: Finance lease principal payments (63,010 ) (30,577 ) Proceeds from exercise of stock options 394,926 - Net cash provided (used in) by financing activities 331,916 (30,577 ) Net increase (decrease) in cash and cash equivalents (3,764,369 ) (509,357 ) Cash and cash equivalents, beginning of the period 5,405,233 1,351,270 Cash and cash equivalents, end of the period $ 1,640,864 $ 841,913 Supplemental disclosure of cash flow information: Cash paid for interest $ 36,526 $ 22,909 Cash paid for taxes $ 17,687 $ 22,100 Non-cash investing activities Right-of-use assets acquired under operating leases $ 193,480 $ 1,547,800 Right-of-use assets acquired under finance leases $ 557,893 $ 27,282 Aegis Contract and Related Asset Acquisition: Contingent consideration $ - $ 272,901 Non-cash financing activities Related party note conversion to common stock $ 514,148 $ - SOURCE: Tecogen, Inc. 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