Latest news with #EaaS
Business Wire
4 days ago
- Business
- Business Wire
Capstone Green Energy Announces Financial Results for First Quarter of Fiscal 2026 Ended June 30, 2025
LOS ANGELES--(BUSINESS WIRE)-- Capstone Green Energy Holdings, Inc. (the "Company' or 'Capstone') (OTCID: CGEH), the public successor to Capstone Green Energy Corporation, announced its financial results for the first quarter of fiscal year 2026, ended June 30, 2025. The Company continues to focus on driving its Three Pillar strategy: (1) financial health, (2) sustainable excellence, and (3) revitalizing culture and talent. These Three Pillars are intended to drive behavioral changes in our culture, generating results that lead to strong and sustainable financial performance. 'The Company's improving financial health and the resurgence of customers' confidence with Capstone is providing an opportunity for increased participation in the evolving data center and microgrid segments.' Share Revenue for the first quarter of fiscal year 2026 was $27.9 million, compared to revenue for the first quarter of fiscal year 2025 of $15.6 million. The first quarter revenue improved by $12.3 million year-over-year, driven by higher demand in our products and accessories category as well as improved rental utilization rates within the company's Energy as a Service (EaaS) revenue stream. First Quarter Fiscal 2026 Highlights: Gross profit for the first quarter of 2026 was $7.6 million, which was $3.8 million higher than the $3.8 million gross profit for the first quarter of fiscal 2025. Further, gross margin was 27%, which was an improvement of 3 percentage points over the 24% gross margin for the first quarter of fiscal 2025. The $3.8 million gross profit increase was driven by higher product pricing and product mix, as well as higher rental pricing and rental fleet utilization. Gross margin improvement was primarily driven by product price realization, along with our DFMA cost-out initiatives implemented throughout Fiscal Year 2025. The Company delivered a net loss of $0.7 million for the first quarter of fiscal 2026, compared to a net loss of $3.9 million for the first quarter of fiscal 2025, primarily due to the $3.8 million higher gross profit and $1.5 million reduction in non-recurring professional expenses in the first quarter of fiscal 2026. Adjusted EBITDA for the first quarter of fiscal 2026 was $2.7 million versus $0.7 million for the first quarter of fiscal 2025, with the $2.0 million improvement primarily due to improved gross margin offset by a slight increase in operating expenses. Total cash as of June 30, 2025, was $6.6 million, a decrease of $2.0 million from March 31, 2025, primarily due to increased use of working capital in accounts receivable and deferred revenue, partially offset by the source of working capital from accounts payable. Net cash used by operating activities was $1.6 million for the three months ended June 30, 2026, vs. $2.1 million provided by operating activities for the three months ended June 30, 2025. The $3.7 million change was mainly a result of the higher sales and increased accounts receivable, the timing of deferred revenue recognition, the change in accounts payable, and Factory Protection Plan liability. The Company continues to remain compliant with its financial covenants. 'Capstone's resilience and the continued dedication to excellence have delivered the fifth straight quarter of positive Adjusted EBITDA on improved product and rental revenues. The effects of the prior price increase and the design for manufacturing and assembly (DFMA) cost-out programs delivered gross profit and gross margin increases over the first quarter of Fiscal Year 2025,' said John Juric, Chief Financial Officer of Capstone. 'The Company's improving financial health and the resurgence of customers' confidence with Capstone is providing an opportunity for increased participation in the evolving data center and microgrid segments.' 'The foundational strides we've made in our business uniquely position us on the global stage, just as the surge in distributed generation and microgrid growth gains momentum,' said Vince Canino, President and CEO of Capstone. 'As we continue our journey to become the premier provider of distributed generation and microgrid solutions, delivering fuel flexibility, operational resilience, and low emissions, we remain steadfast in our commitment to reducing the world's carbon footprint in a sustainable and responsible way.' Canino continued, 'Our consistent delivery of strong financial performance over the last five quarters, even amid the dynamic conditions of the past six months, is a clear testament to the strength of our Three-Pillar Strategy and our culture of accountable execution. It has become a true bellwether for the future of our business.' Earnings Conference Call Webcast The Company will hold its First Quarter Fiscal Year 2026 financial results conference call and webcast on Friday, August 15, 2025, at 9:00 am Pacific Time Participant (Listen Only) Dial-In Numbers: Domestic Callers: (888) 506-0062 International Callers: (973) 528-0011 Participant Access Code: 786967 Access By Webcast The call will be simultaneously webcast over the Internet via the ' Investor Relations ' section of Capstone's website or by using this direct link: At the end of the webcast, management will answer questions that have been submitted by the audience. A webcast replay of the call will be archived on the Company's website for 90 days. About Capstone Green Energy For almost four decades, Capstone Green Energy has been at the forefront of clean technology using microturbines, revolutionizing how businesses manage their energy supply on a sustainable basis. In partnership with our worldwide team of dedicated distributors, we have shipped over 10,600 units to 88 countries, lowering our clients' carbon footprint with highly efficient on-site energy systems and microgrid solutions. Today, our commitment to a cleaner future is unwavering. We offer customers a range of microturbine products ranging from 65 kilowatts to multiple megawatts for commercial, industrial, and utility-scale spaces uniquely tailored to their specific needs. Capstone's solutions portfolio not only showcases our core clean technology microturbines but also includes flexible Energy-as-a-Service (EaaS) offerings, including build, own, and operate models, as well as rental services. Capstone's fast, turnkey power rental solutions are intended to address customers with limited capital or short-term needs; for more information, contact rentals@ In our pursuit of cutting-edge solutions, we've forged strategic partnerships to extend our impact. Through these collaborations, we proudly offer solutions that utilize renewable gas products and heat recovery solutions. These solutions greatly enhance the sustainability and efficiency of our clients' operations while contributing to a cleaner and more responsible sustainable energy landscape. For more information about the Company, please visit Follow Capstone Green Energy on Twitter, LinkedIn, Instagram, Facebook, and YouTube. Cautionary Notes This release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including statements related to future profitability and the growth of the business. The Company has tried to identify these forward-looking statements by using words such as 'expect,' 'anticipate,' 'believe,' 'could,' 'should,' 'estimate,' 'intend,' 'may,' 'will,' 'plan,' 'goal' and similar terms and phrases, but such words, terms and phrases are not the exclusive means of identifying such statements. Actual results, performance and achievements could differ materially from those expressed in, or implied by, these forward-looking statements due to a variety of risks, uncertainties and other factors, including, but not limited to, the following: the Company's liquidity position and ability to access capital; the Company's ability to continue as a going concern; the Company's ability to successfully remediate the material weakness in internal control over financial reporting; the Company's ability to realize the anticipated benefits of its financial restructuring; the Company's ability to comply with the restrictions imposed by covenants contained in the exit financing and the new subsidiary limited liability company agreement; the uncertainty associated with the imposition of tariffs and trade barriers and changes in trade policies; employee attrition and the Company's ability to retain senior management and other key personnel following the restructuring; the Company's ability to develop new products and enhance existing products; product quality issues, including the adequacy of reserves therefor and warranty cost exposure; intense competition; financial performance of the oil and natural gas industry and other general business, industry and economic conditions; including the impacts of any changes in tariff policies; the impact of litigation and regulatory proceedings; the potential material adverse effect on the price of the Company's common stock and stockholder lawsuits. For a detailed discussion of factors that could affect the Company's future operating results, please see the Company's filings with the Securities and Exchange Commission, including the risk factors contained in our most recent Annual Report on Form 10-K. Except as expressly required by the federal securities laws, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, changed circumstances or future events or for any other reason. March 31, Assets 2025 2025 Current Assets: Cash $ 6,628 $ 8,671 Accounts receivable, net of allowances of $827 at June 30, 2025 and $607 at March 31, 2025 10,706 7,037 Inventories 16,583 16,615 Lease receivable, current 117 113 Prepaid expenses and other current assets 3,488 3,653 Total current assets 37,522 36,089 Property, plant, equipment and rental assets, net 18,715 19,362 Finance lease right-of-use assets 4,030 3,787 Operating lease right-of-use assets 5,741 8,282 Non-current portion of inventories 3,077 3,464 Lease receivable, non-current 1,146 1,175 Other assets 2,530 2,705 Total assets $ 72,761 $ 74,864 Liabilities, Temporary Equity and Stockholders' Deficit Current Liabilities: Accounts payable $ 15,159 $ 14,092 Accrued expenses 1,640 1,447 Accrued salaries and wages 3,410 2,838 Accrued warranty reserve 1,134 1,070 Deferred revenue 10,159 13,351 Finance lease liability, current 2,896 2,017 Operating lease liability, current 2,441 3,539 Factory protection plan liability 6,878 6,256 Exit new money notes, net of discount, current 8,100 7,968 Total current liabilities 51,817 52,578 Deferred revenue, non-current 568 598 Finance lease liability, non-current 448 248 Operating lease liability, non-current 3,519 4,988 Exit new money notes, net of discount, non-current 24,597 24,213 Total liabilities 80,949 82,625 Commitments and contingencies Temporary equity: Redeemable noncontrolling interests 13,859 13,859 Stockholders' deficit: Preferred stock, $.001 par value; 1,000,000 shares authorized; none issued — — Common stock, $.001 par value; 59,400,000 shares authorized, 18,879,448 shares issued and outstanding at June 30, 2025; 18,643,587 shares issued and outstanding at March 31, 2025 19 18 Non-voting common stock, $.001 par value; 600,000 shares authorized, 508,475 shares issued and outstanding at June 30, 2025 and March 31, 2025 1 1 Additional paid-in capital 955,765 955,407 Accumulated deficit (977,698 ) (977,000 ) Treasury stock, at cost; 176,494 shares at June 30, 2025 and 57,202 shares at March 31, 2025 (134 ) (46 ) Total stockholders' deficit (22,047 ) (21,620 ) Total liabilities, temporary equity and stockholders' deficit $ 72,761 $ 74,864 Expand CAPSTONE GREEN ENERGY HOLDINGS, INC. AND SUBSIDIARIES (In thousands, except per share data) (Unaudited) Three Months Ended June 30, 2025 2024 Revenue, net: Product and accessories $ 15,720 $ 5,423 Parts and service 7,938 7,837 Rentals 4,213 2,383 Total revenue, net 27,871 15,643 Cost of goods sold: Product and accessories 14,518 5,998 Parts and service 3,759 3,445 Rentals 2,030 2,413 Total cost of goods sold 20,307 11,856 Gross profit 7,564 3,787 Operating expenses: Research and development 814 548 Selling, general and administrative 6,921 6,783 Total operating expenses 7,735 7,331 Loss from operations (171 ) (3,544 ) Other income 436 591 Interest income 53 2 Interest expense (1,011 ) (978 ) Loss before provision for income taxes (693 ) (3,929 ) Provision for income taxes 5 8 Net loss (698 ) (3,937 ) Net loss per share of common stock and non-voting common stock—basic and diluted $ (0.04 ) $ (0.21 ) Weighted average shares used to calculate basic and diluted net loss per common stock and non-voting common stock 19,366 19,049 Expand CAPSTONE GREEN ENERGY HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Three Months Ended June 30, 2025 2024 Cash Flows from Operating Activities: Net loss $ (698 ) $ (3,937 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 926 1,014 Amortization of financing costs and discounts 23 13 Paid-in-kind interest expense 493 924 Non-cash lease expense 821 979 Provision for credit loss expense 227 146 Inventory write-down 166 155 Provision (benefit) for warranty expenses 70 (81 ) Stock-based compensation 349 57 Changes in operating assets and liabilities: Accounts receivable (4,170 ) (809 ) Inventories 253 262 Lease receivable 25 — Prepaid expenses, other current assets and other assets 274 851 Accounts payable 2,356 4,171 Accrued expenses 124 (366 ) Operating lease liability, net (847 ) (989 ) Accrued salaries and wages and long-term liabilities 617 38 Accrued warranty reserve (6 ) (22 ) Deferred revenue (3,222 ) 626 Factory protection plan liability 623 (940 ) Net cash provided by (used in) operating activities (1,596 ) 2,092 Cash Flows from Investing Activities: Expenditures for property, plant, equipment and rental assets (126 ) (149 ) Net cash used in investing activities (126 ) (149 ) Cash Flows from Financing Activities: Acquisition of treasury stock (134 ) — Repayment of finance lease obligations (187 ) (53 ) Net cash used in financing activities (321 ) (53 ) Net increase (decrease) in Cash (2,043 ) 1,890 Cash, Beginning of Period 8,671 2,085 Cash, End of Period $ 6,628 $ 3,975 Supplemental Disclosures of Cash Flow Information: Interest $ 479 $ 39 Income taxes $ 14 $ 5 Supplemental Disclosures of Non-Cash Information: Right-of-use assets obtained in exchange for operating lease obligations $ 1,419 $ — Right-of-use assets obtained in exchange for finance lease obligations $ 396 $ — Acquisition of treasury stock with accrued liabilities $ 46 $ — Settlement of lease liabilities through accounts receivable $ 210 $ 184 Operating lease modified to finance lease $ 614 $ — Accounts payable negotiated in lease modification $ 1,289 $ — Expand CAPSTONE GREEN ENERGY HOLDINGS, INC. AND SUBSIDIARIES PRESENTATION OF NON-GAAP FINANCIAL MEASURES (In thousands, except per share data) (Unaudited) Three Months Ended June 30, 2025 2024 Net Loss $ (698 ) $ (3,937 ) Interest Expense 1,011 978 Provision for income taxes 5 8 Depreciation 926 1,014 EBITDA $ 1,244 $ (1,937 ) Stock-based compensation 349 57 Restructuring Expense 189 234 Financing Expense 55 35 Shareholder litigation — 508 Extraordinary Legal Costs (25 ) 170 Restatement & SEC Investigation Costs 337 1,666 Merger and Acquisition Activity 549 — Adjusted EBITDA $ 2,698 $ 733 Expand To supplement the Company's unaudited financial data presented on a generally accepted accounting principles (GAAP) basis, management has presented Adjusted EBITDA, a non-GAAP financial measure. This non-GAAP financial measure is among the indicators management uses as a basis for evaluating the Company's financial performance as well as for forecasting future periods. Management establishes performance targets, annual budgets and makes operating decisions based in part upon this metric. Accordingly, disclosure of this non-GAAP financial measure provides investors with the same information that management uses to understand the company's economic performance year-over-year. EBITDA is defined as net income (loss) before interest, provision for income taxes and depreciation and amortization expense. Adjusted EBITDA is defined as EBITDA before stock-based compensation, restructuring, financing, shareholder litigation, non-recurring legal, restatement and SEC investigation expenses, and reorganization items. Restructuring expenses relate to the Chapter 11 bankruptcy filing and financing expenses related to the evaluation and negotiation of the Company's senior indebtedness. Shareholder litigation expense resulting from the restatement of the Company's financials and non-recurring legal expenses are one-time non-recurring legal fees. Restatement expenses are professional fees related to the restatement of the Company's prior year financials. SEC investigation expenses relate to the costs arising from the restatement of the Company's financials. Reorganization items represent adjustments occurring during the bankruptcy period. Adjusted EBITDA is not a measure of the Company's liquidity or financial performance under GAAP and should not be considered as an alternative to net income or any other performance measure derived in accordance with GAAP, or as an alternative to cash flows from operating activities as a measure of its liquidity. While management believes that the Company's presentation of Adjusted EBITDA provides useful supplemental information to investors, there are limitations associated with the use of this non-GAAP financial measure. Adjusted EBITDA is not prepared in accordance with GAAP and may not be directly comparable to similarly titled measures of other companies due to potential differences in the methods of calculation. The Company's non-GAAP financial measure is not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP.
Fast Company
18-07-2025
- Business
- Fast Company
How the energy as a service model is disrupting industrial energy procurement
The subscription business model, software as a service (SaaS), has become the norm for organizations of all sizes to manage everything from accounting and finance to communication and collaboration. Energy as a service (EaaS), however, is a new framework that is transforming traditional utility models and offering businesses a way to purchase energy without an upfront equipment investment. 'For a lot of mom-and-pop businesses, or even medium-sized businesses, the old utility model has been the only option,' says Jay Bhatty, CEO and founder of a company that builds automation software for clients in the oil and gas industry. 'If you move to a city, you go to the utility, apply for an electricity or natural gas connection, pay the utility, and buy necessary equipment. But with the new model, you don't need to buy the equipment yourself.' THE UPSIDES AND DOWNSIDES OF ENERGY AS A SERVICE Bhatty gives an example to illustrate the differences between the two models. With the traditional approach, if a dairy farmer in Texas needs a heat pump, they have to buy the pump and hook it up to a natural gas or electricity connection to generate heat for the business' daily operations. With the new EaaS model, the farmer works with a vendor that provides and installs the heat pump, sets up the connection, and charges the farmer only for the monthly energy service. 'A dairy farmer's core business is milk; it's not heat pumps or energy,' says Bhatty. 'They don't know enough about that business to know if they're choosing the best solution. They may not have the most environmentally efficient equipment. They may not be paying the lowest price for electricity or natural gas. And they are responsible for maintaining the pump. But if they work with a vendor that is a heat pump expert, they're just paying for the heat as energy as a service. They can ask the vendor for an environmentally friendly heat pump that runs on solar or wind or a cheaper option that runs on natural gas. They can determine their carbon footprint, and the vendor will take care of it.' Larger companies in the oil and gas industry are already using EaaS. Oil drilling rigs, for example, are composed of multiple components that are heavy, complex, and expensive. Each piece of equipment requires consistent maintenance from highly skilled professionals. Energy producers outsource this part of their business, partnering with drilling companies to install and maintain rigs and leasing them through long-term contracts. offers products that allow oil and gas industry clients to lease storage on transport space on pipelines instead of buying it. The company's software identifies these opportunities for them in the market, connecting buyers that need space and sellers that have excess capacity. 'You see this model in other industries as well,' says Bhatty. 'In real estate, when you rent an apartment, you don't have to buy the appliances. You don't know what the carbon footprint is of the appliances or the cost of electricity. You're renting an apartment as a service, in the same way that businesses use energy as a service. When you call an Uber, you don't have to worry about the maintenance of the car. And in the future, ride-sharing companies might offer more specific options: If you want to lower your carbon footprint, you can call an electric vehicle. Or if you want a cheaper price, you can call a gasoline-powered vehicle.' The main challenge of EaaS is risk mitigation, explains Bhatty. Businesses need a guarantee that working with a vendor is more cost-effective than taking a DIY approach. 'Let's say I commit to a one-year contract for energy as a service,' says Bhatty. 'But what happens if my costs are not as low as what I could do myself? Then I'm stuck with this contract. I want a vendor to say: Give me your monthly heat pump bill. If you go with our service, we guarantee you 10% below your monthly bill or else you don't pay us. There are some risk mitigation factors that you have to build into your contract to protect your business.' EVALUATING THE BUSINESS VALUE OF EEAS Bhatty encourages business leaders interested in exploring EaaS to take the following steps. • Do your due diligence: 'Do your homework to select the right vendor. It's the traditional own versus rent model that depends on what's good for your business. Figure out the factors that matter most to you: optimal system performance, efficiency, environmental benefits, cost savings, reduced risk.' • Identify measurable cost savings: 'Know your monthly costs. When you are evaluating vendors, build it into the contract that whatever is being offered is guaranteed and measurable. The cost savings should be demonstrable. Otherwise, you end up paying more for a service you could have done yourself. Keep in mind that contracts are usually at least a minimum of a year because this is heavy equipment that has to be installed on site.' • Find your reason why: 'This model is picking up steam, and it will continue to do so the more efficient it becomes. Find the driving factor for your business to adopt EaaS. In some states, like California, it might be environmental concerns. In others, like Texas, it might be cost savings. Understand what you're trying to achieve, and how energy as a service can help you get there.'
Yahoo
02-07-2025
- Business
- Yahoo
Capstone Green Energy Sees Financial Improvements in FY2025
This article was first published on Rigzone here Capstone Green Energy Holdings Inc. has reported fourth quarter and annual revenues of $27.1 million and $85.6 million respectively for fiscal year 2025, compared to 2024 fourth quarter and annual revenues of $24.3 million and $91.2 million respectively. The company said in its report that the fourth-quarter revenue improved by $2.8 million year-over-year, driven by increased demand for products and services, as well as improved rental utilization rates within the company's Energy as a Service (EaaS) revenue stream. Slow product sales in the first half of the fiscal year caused a decrease of $5.7 million for the year. This was mainly due to restructuring hesitancy and instability in Europe, it said. Gross profit for the fourth quarter of 2025 was $7.5 million, up $4.9 million from the fourth quarter of fiscal 2024. The company recorded a net loss of $0.1 million, compared to a net loss of $5.3 million for the same period in fiscal 2024. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the fourth quarter of fiscal 2025 was $2.8 million, up $0.8 million from the fourth quarter of fiscal 2024. This improvement was mainly due to better gross margins and lower operating expenses, it said. Gross profit for FY2025 was $23.3 million, up from $14.3 million for FY2024, due to sales mix shift and price hikes. Net loss was $7.2 million, swinging from FY2024's net income of $7.4 million, which included a $32.5 million reorganization gain. Excluding this gain, the net loss was cut by $17.9 million, driven by better gross profit, lower expenses, and reduced costs. Take control of your THOUSANDS of Oil & Gas jobs on Search Now >> Adjusted EBITDA rose to $7.9 million from negative $0.5 million for FY2024, including non-recurring charges related to restructuring, litigation, restatement, and SEC investigations, which concluded in early FY2026. 'The company's full-year results reflect the focus on financial health with a $9.0 million increase in gross profit and $7.9 million of positive Adjusted EBITDA in fiscal 2025. The continued execution of our corporate initiatives focused on financial and commercial discipline were essential to the improved financial performance and the discipline has become embedded in our culture', John Juric, Chief Financial Officer of Capstone, said. 'What we have accomplished in fiscal Year 2025 was historic for Capstone. In all of its 37-year history, the company has never delivered a positive Adjusted EBITDA over a full fiscal year. We have changed the culture and truly changed the landscape of what Capstone's true potential is', Vince Canino, President and Chief Executive Officer of Capstone, said. To contact the author, email More From The Leading Energy Platform: LNG Canada Dispatches First Cargo EIA Sees USA Crude Oil Production Rising in 2025 Industry Bodies Look at Texas Upstream Employment in May Analyst Highlights August Natural Gas Contract 'Collapse' >> Find the latest oil and gas jobs on << Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Zawya
02-07-2025
- Business
- Zawya
Energy as a service market to surge 8.7% CAGR by 2034
The Energy as a Service (EaaS) Market reached a valuation of $126 billion in 2024 and is projected to grow at a CAGR of 8.7% from 2025 to 2034. This growth is driven by the increasing shift toward sustainability, reinforced by supportive government incentives and surging energy demand across industries, according to Global Market Insights. Businesses and institutions are actively seeking cost-effective, resilient, and decentralised energy solutions to optimise consumption and enhance efficiency. Subscription-based energy service models are gaining traction as they provide long-term cost savings and operational advantages. Market dynamics are further influenced by the rising emphasis on energy efficiency, grid modernisation, and digital transformation in the sector. The growing integration of advanced technologies, such as IoT sensors, predictive maintenance tools, and real-time analytics, is improving energy management, making EaaS solutions more viable for businesses. Governments worldwide are also implementing stringent energy regulations and funding programs to promote sustainable energy initiatives, further driving adoption. With an increasing focus on reducing carbon footprints and improving energy resilience, the demand for flexible and scalable EaaS models is rising, setting the stage for sustained market expansion over the next decade. The industry is categorised into energy supply services, operational and maintenance services, and energy efficiency and optimisation services. Operational and maintenance services play a crucial role in ensuring the reliability and performance of energy systems. These services are projected to generate $132.5 billion by 2034 as businesses prioritise solutions that enhance efficiency and sustainability. By providing continuous energy supply, optimised operations, and minimised downtime, these services help organisations achieve better energy management while maintaining cost-effectiveness. The rising need for seamless infrastructure maintenance and operational support is driving widespread adoption, allowing businesses to reduce risks and improve long-term energy performance. -TradeArabia News Service Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
Business Wire
27-06-2025
- Business
- Business Wire
Capstone Green Energy Announces Financial Results for Fourth Quarter and Full Fiscal Year 2025
LOS ANGELES--(BUSINESS WIRE)-- Capstone Green Energy Holdings, Inc. (the "Company' or 'Capstone') (PINK: CGEH), the public successor to Capstone Green Energy Corporation, announced its financial results for the fourth quarter and full fiscal year ended March 31, 2025. The Company continues to focus on driving its Three Pillar strategy: (1) financial health, (2) sustainable excellence, and (3) revitalizing culture and talent. These Three Pillars are intended to drive behavioral changes in our culture, generating results that lead to strong and sustainable financial performance. The continued execution of our corporate initiatives focused on financial and commercial discipline were essential to the improved financial performance and the discipline has become embedded in our culture Share Revenue for the fourth quarter and year-to-date fiscal year 2025 were $27.1 million and $85.6 million, compared to the fourth quarter and year-to-date revenues in the fiscal year 2024 of $24.3 million and $91.2 million, respectively. The fourth-quarter revenue improved by $2.8 million year-over-year, driven by increased demand for products and services, as well as improved rental utilization rates within the company's Energy as a Service (EaaS) revenue stream. Slow product sales in the first half of the fiscal year caused a decrease of $5.7 million for the year. This was mainly due to restructuring hesitancy and instability in Europe. Fourth Quarter Fiscal 2025 Highlights: Gross profit for the fourth quarter of 2025 was $7.5 million, which was $4.9 million higher than the fourth quarter of fiscal 2024. Further, gross margin was 28%, which was a 17% improvement over the fourth quarter of fiscal 2024. The $4.9 million gross profit increase was driven by higher product and rental pricing, higher rental fleet utilization, cost efficiencies, and improving productivity from operations. Gross margin improvement was primarily driven by product price increases implemented during fiscal 2025, along with stronger financial and business discipline across the rentals, service agreements, and parts categories. The Company delivered a net loss of $0.1 million for the fourth quarter of fiscal 2025 compared to a net loss of $5.3 million for the fourth quarter of fiscal 2024. Adjusted EBITDA for the fourth quarter of fiscal 2025 was $2.8 million versus negative $0.8 million for the fourth quarter of fiscal 2024, improving $3.6 million primarily due to improved gross margin and lower operating expenses reflecting the financial and business discipline actions taken during the year. Total cash as of March 31, 2025, was $8.7 million, an increase of $6.6 million from March 31, 2024. Year-to-Date Fiscal 2025 Highlights: Gross Profit for fiscal year 2025 was $23.3 million with a margin of 27% compared to gross profit of $14.3 million and a margin of 16% for fiscal year 2024. The increase of $9.0 million over fiscal 2024 resulted from a shift in sales mix and the effect of price increases implemented during fiscal year 2025. Product and accessories sales, as a percentage of total revenue, declined to 47% in fiscal 2025 from 54% in fiscal 2024. As stated earlier, this was mainly due to the lingering effects of restructuring activities completed in fiscal 2024 and weaker European sales. Net loss was $7.2 million for fiscal year 2025, compared to a net income of $7.4 million for fiscal year 2024, which included net reorganization gain of $32.5 million. Excluding the reorganization gain, the net loss improved by $17.9 million, driven by improved gross profit, lower total operating expenses, lower restatement and restructuring costs, and lower interest costs. Adjusted EBITDA for fiscal year 2025 improved significantly to $7.9 million from negative $0.5 million for fiscal year 2024. Adjusted EBITDA included significant addbacks for restructuring, shareholder litigation, restatement costs, and SEC investigation costs. These non-recurring matters have come to conclusion in the first quarter of fiscal 2026. Net cash provided by operating activities was $7.7 million for the twelve months ended March 31, 2025. This positive change was mainly a result of the reduced net loss and improved working capital. The Company continues to remain compliant with its financial covenants. 'The Company has taken great strides over the past year. We are pleased with the Company's fourth-quarter results for fiscal 2025, which reflect the improvements in our services and rental business revenues, and lower costs of goods sold driven by our cost-out initiatives. Additionally, the impact of the fiscal 2025 strategic price increases across the portfolio improved margins. The Company's full year results reflect the focus on financial health with $9.0 million increase in gross profit and $7.9 million of positive Adjusted EBITDA in fiscal 2025. The continued execution of our corporate initiatives focused on financial and commercial discipline were essential to the improved financial performance and the discipline has become embedded in our culture,' said John Juric, Chief Financial Officer of Capstone. 'Now as we move into fiscal year 2026, we are working to elevate the positioning of the Company's stock to the OTC:QX market, while continuing to focus on our longer-term goal of relisting on Nasdaq or a similar national exchange.' Mr. Juric further commented, 'The previously disclosed SEC investigation has been closed with no action taken by the SEC. The Company is pleased with the outcome of the investigation and can now focus on the strategic growth of the business.' 'What we have accomplished in fiscal Year 2025 was historic for Capstone. In all of its 37-year history, the Company has never delivered a positive Adjusted EBITDA over a full fiscal year. We have changed the culture and truly changed the landscape of what Capstone's true potential is,' said Vince Canino, President & Chief Executive Officer of Capstone. 'Our steady improvements in financial health, operational excellence, and the revitalization of our culture and talent have strengthened our focus on core values. With strong market tailwinds and a demonstrated path to profitability, we believe we are well-positioned to take the business to new heights.' Earnings Conference Call Webcast The Company will hold its Fourth Quarter & Full Fiscal Year 2025 financial results conference call and webcast on Wednesday, July 2 at 10:00 am Pacific Time. Participant (Listen Only) Dial-In Numbers: Domestic Callers: (888) 506-0062 International Callers: (973) 528-0011 Participant Access Code: 182930 Access By Webcast The call will be simultaneously webcast over the Internet via the ' Investor Relations ' section of Capstone's website or by using this direct link: At the end of the webcast, management will answer questions that have been submitted by the audience. A webcast replay of the call will be archived on the Company's website for 90 days. About Capstone Green Energy For almost four decades, Capstone Green Energy has been at the forefront of clean technology using microturbines, revolutionizing how businesses manage their energy supply on a sustainable basis. In partnership with our worldwide team of dedicated distributors, we have shipped over 10,600 units to 88 countries, lowering our clients' carbon footprint with highly efficient on-site energy systems and microgrid solutions. Today, our commitment to a cleaner future is unwavering. We offer customers a range of microturbine products ranging from 65 kilowatts to multiple megawatts for commercial, industrial, and utility-scale spaces uniquely tailored to their specific needs. Capstone's solutions portfolio not only showcases our core clean technology microturbines but also includes flexible Energy-as-a-Service (EaaS) offerings, including build, own, and operate models, as well as rental services. Capstone's fast, turnkey power rental solutions are intended to address customers with limited capital or short-term needs; for more information, contact rentals@ In our pursuit of cutting-edge solutions, we've forged strategic partnerships to extend our impact. Through these collaborations, we proudly offer solutions that utilize renewable gas products and heat recovery solutions. These solutions greatly enhance the sustainability and efficiency of our clients' operations while contributing to a cleaner and more responsible sustainable energy landscape. For more information about the Company, please visit Follow Capstone Green Energy on Twitter, LinkedIn, Instagram, Facebook, and YouTube. Cautionary Notes This release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including statements related to future profitability and the growth of the business. The Company has tried to identify these forward-looking statements by using words such as 'expect,' 'anticipate,' 'believe,' 'could,' 'should,' 'estimate,' 'intend,' 'may,' 'will,' 'plan,' 'goal' and similar terms and phrases, but such words, terms and phrases are not the exclusive means of identifying such statements. Actual results, performance and achievements could differ materially from those expressed in, or implied by, these forward-looking statements due to a variety of risks, uncertainties and other factors, including, but not limited to, the following: the Company's liquidity position and ability to access capital; the Company's ability to continue as a going concern; the Company's ability to successfully remediate the material weakness in internal control over financial reporting; the Company's ability to realize the anticipated benefits of its financial restructuring; the Company's ability to comply with the restrictions imposed by covenants contained in the exit financing and the new subsidiary limited liability company agreement; the uncertainty associated with the imposition of tariffs and trade barriers and changes in trade policies; employee attrition and the Company's ability to retain senior management and other key personnel following the restructuring; the Company's ability to develop new products and enhance existing products; product quality issues, including the adequacy of reserves therefor and warranty cost exposure; intense competition; financial performance of the oil and natural gas industry and other general business, industry and economic conditions; including the impacts of any changes in tariff policies; the impact of litigation and regulatory proceedings; the potential material adverse effect on the price of the Company's common stock and stockholder lawsuits. For a detailed discussion of factors that could affect the Company's future operating results, please see the Company's filings with the Securities and Exchange Commission, including the risk factors contained in our most recent Annual Report on Form 10-K. Except as expressly required by the federal securities laws, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, changed circumstances or future events or for any other reason. (In thousands, except share amounts) March 31, Assets 2025 2024 Current Assets: Cash $ 8,671 $ 2,085 Accounts receivable, net of allowances of $607 at March 31,2025 and $3,287 at March 31,2024 7,037 6,552 Inventories 16,615 20,642 Lease receivable, current 113 — Prepaid expenses and other current assets 3,653 5,449 Total current assets 36,089 34,728 Property, plant, equipment and rental assets, net 19,362 25,854 Finance lease right-of-use assets 3,787 4,391 Operating lease right-of-use assets 8,282 12,279 Non-current portion of inventories 3,464 3,917 Lease receivable, non-current 1,175 — Other assets 2,705 3,037 Total assets $ 74,864 $ 84,206 Liabilities, Temporary Equity and Stockholders' Deficiency Current Liabilities: Accounts payable $ 14,092 $ 15,094 Accrued expenses 3,113 3,118 Accrued salaries and wages 1,172 1,220 Accrued warranty reserve 1,070 1,437 Deferred revenue 13,351 11,183 Finance lease liability, current 2,017 964 Operating lease liability, current 3,539 4,041 Factory protection plan liability 6,256 7,259 Exit new money notes, net of discount, current 7,968 28,911 Total current liabilities 52,578 73,227 Deferred revenue, non-current 598 675 Finance lease liability, non-current 248 2,300 Operating lease liability, non-current 4,988 8,527 Exit new money notes, net of discount, non-current 24,213 — Other non-current liabilities — 264 Total liabilities 82,625 84,993 Commitments and contingencies Temporary equity: Redeemable noncontrolling interests 13,859 13,859 Stockholders' deficiency: Preferred stock, $.001 par value; 1,000,000 shares authorized; none issued — — Common stock, $.001 par value; 59,400,000 shares authorized, 18,643,587 shares issued and outstanding at March 31, 2025; 59,400,000 shares authorized, 18,540,789 shares issued and outstanding at March 31, 2024 18 18 Non-voting common stock, $.001 par value; 600,000 shares authorized, 508,475 shares issued and outstanding at March 31, 2025 and March 31, 2024 1 1 Additional paid-in capital 955,407 955,145 Accumulated deficit (977,000 ) (969,810 ) Treasury stock, at cost; 57,202 shares at March 31, 2025 and 0 shares at March 31, 2024 (46 ) — Total stockholders' deficiency (21,620 ) (14,646 ) Total liabilities, temporary equity and stockholders' deficiency $ 74,864 $ 84,206 Expand CAPSTONE GREEN ENERGY HOLDINGS, INC. AND SUBSIDIARIES (In thousands, except per share data) (Audited Twelve Months) Three Months Ended March 31, Twelve Months Ended March 31, 2025 2024 2025 2024 Revenue, net: Product and accessories $ 15,316 $ 15,643 $ 40,219 $ 49,107 Parts and service 7,711 6,775 30,939 30,681 Rentals 4,024 1,930 14,406 11,431 Total revenue, net 27,051 24,348 85,564 91,219 Cost of goods sold: Product and accessories 13,578 15,222 39,200 51,259 Parts and service 3,533 4,147 13,660 16,460 Rentals 2,432 2,405 9,406 9,216 Total cost of goods sold 19,543 21,774 62,266 76,935 Gross profit 7,508 2,574 23,298 14,284 Operating expenses: Research and development 785 566 2,667 2,463 Selling, general and administrative 6,709 6,462 26,205 32,175 Total operating expenses 7,494 7,028 28,872 34,638 Loss from operations 14 (4,454 ) (5,574 ) (20,354 ) Other income 740 615 2,317 674 Interest income 180 4 186 110 Interest expense (941 ) (910 ) (3,944 ) (5,529 ) Reorganization items, net — (537 ) — 32,505 Income (loss) before provision for income taxes (7 ) (5,282 ) (7,015 ) 7,406 Provision for income taxes 119 — 175 14 Net income (loss) (126 ) (5,282 ) (7,190 ) 7,392 Net income (loss) per share of common stock and non-voting common stock—basic and diluted $ (0.01 ) $ (0.28 ) $ (0.38 ) $ 0.39 Weighted average shares used to calculate basic and diluted net income (loss) per common stock and non-voting common stock 19,075 19,049 19,056 18,753 Expand CAPSTONE GREEN ENERGY HOLDINGS, INC. AND SUBSIDIARIES (In thousands) Year Ended March 31, 2025 2024 Cash Flows from Operating Activities: Net income (loss) $ (7,190 ) $ 7,392 Adjustments to reconcile net income (loss) to net cash used in operating activities: Depreciation and amortization 3,858 3,988 Amortization of financing costs and discounts 71 53 Paid-in-kind interest expense 3,199 1,957 Non-cash lease expense 3,996 3,431 Provision for credit loss expense 823 439 Inventory write-down 900 779 Provision for warranty expenses (184 ) 32 Loss on disposal of equipment 67 — Stock-based compensation 262 2,057 Non-cash reorganization items, net — (35,255 ) Changes in operating assets and liabilities: Accounts receivable (2,083 ) (571 ) Inventories 7,628 15,382 Lease receivable (1,288 ) — Prepaid expenses, other current assets and other assets 2,128 871 Accounts payable (1,002 ) (12,337 ) Accrued expenses (268 ) 3,583 Operating lease liability, net (4,041 ) (3,413 ) Accrued salaries and wages and long-term liabilities (94 ) 15 Accrued warranty reserve (183 ) (171 ) Deferred revenue 2,092 (12,305 ) Factory protection plan liability (1,003 ) (3,585 ) Net cash provided (used) in operating activities 7,688 (27,658 ) Cash Flows from Investing Activities: Expenditures for property, plant, equipment and rental assets (879 ) (4,674 ) Net cash used in investing activities (879 ) (4,674 ) Cash Flows from Financing Activities: Proceeds from debtors-in-process facility — 12,000 Proceeds from three-year term note — 3,000 Proceeds from exit new money note — 7,000 Debt issuance costs — (244 ) Repayment of finance lease obligations (223 ) (178 ) Net cash provided (used) by financing activities (223 ) 21,578 Net increase (decrease) in Cash 6,586 (10,754 ) Cash, Beginning of Period 2,085 12,839 Cash, End of Period $ 8,671 $ 2,085 Supplemental Disclosures of Cash Flow Information: Cash paid during the period for: Interest $ 533 $ 1,620 Income taxes $ 126 $ 14 Supplemental Disclosures of Non-Cash Information: Renewal of insurance contracts financed by notes payable $ — $ 648 Right-of-use assets obtained in exchange for lease obligations $ — $ 7,348 Settlement of lease obligations with accounts receivable due $ 775 $ 502 Conversion of inventory to rental assets $ — $ 280 Rental assets transferred to inventory $ 3,067 $ — Sales-type lease $ 981 $ — Conversion of prepaid expenses to rental assets $ — $ 623 Paid-in-kind debt discount in connection with the three-year term note $ — $ 500 Acquisition of treasury stock by incurring a liability $ 46 $ — Expand CAPSTONE GREEN ENERGY HOLDINGS, INC. AND SUBSIDIARIES (In thousands, except per share data) (Unaudited) Three Months Ended March 31, Twelve Months Ended March 31, 2025 2024 2025 2024 Net Income (Loss) $ (126 ) $ (5,282 ) $ (7,190 ) $ 7,392 Interest Expense 941 910 3,944 5,529 Provision for income taxes 119 — 175 14 Depreciation 835 987 3,858 3,988 EBITDA $ 1,769 $ (3,385 ) $ 787 $ 16,923 Stock-based compensation 94 — 263 2,057 Restructuring Expense 468 114 2,077 1,344 Financing Expense — 107 58 5,821 Shareholder litigation — — 1,023 — Extraordinary Legal Costs 436 93 1,125 104 Restatement & SEC Investigation Costs 62 1,762 2,591 5,758 Extraordinary Gain/Loss — — — (35,343 ) Reorganization Items — 537 — 2,838 Adjusted EBITDA $ 2,829 $ (772 ) $ 7,924 $ (498 ) Expand To supplement the Company's unaudited financial data presented on a generally accepted accounting principles (GAAP) basis, management has presented Adjusted EBITDA, a non-GAAP financial measure. This non-GAAP financial measure is among the indicators management uses as a basis for evaluating the Company's financial performance as well as for forecasting future periods. Management establishes performance targets, annual budgets and makes operating decisions based in part upon this metric. Accordingly, disclosure of this non-GAAP financial measure provides investors with the same information that management uses to understand the company's economic performance year-over-year. EBITDA is defined as net income (loss) before interest, provision for income taxes and depreciation and amortization expense. Adjusted EBITDA is defined as EBITDA before stock-based compensation, restructuring, financing, shareholder litigation, non-recurring legal, restatement and SEC investigation expenses, and reorganization items. Restructuring expenses relate to the Chapter 11 bankruptcy filing and financing expenses related to the evaluation and negotiation of the Company's senior indebtedness. Shareholder litigation expense resulted from the restatement of the Company's financials and non-recurring legal expenses are one-time non-recurring legal fees. Restatement expenses are professional fees related to the restatement of the Company's prior year financials. SEC investigation expenses relate to the costs arising from the restatement of the Company's financials. Reorganization items represent adjustments occurring during the bankruptcy period. Adjusted EBITDA is not a measure of the Company's liquidity or financial performance under GAAP and should not be considered as an alternative to net income or any other performance measure derived in accordance with GAAP, or as an alternative to cash flows from operating activities as a measure of its liquidity. While management believes that the Company's presentation of Adjusted EBITDA provides useful supplemental information to investors, there are limitations associated with the use of this non-GAAP financial measure. Adjusted EBITDA is not prepared in accordance with GAAP and may not be directly comparable to similarly titled measures of other companies due to potential differences in the methods of calculation. The Company's non-GAAP financial measure is not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP.
