Capstone Green Energy Reports 78% Revenue Increase to $27.9 Million in Latest Quarter

Capstone Green Energy Holdings, Inc. reported significant financial improvements in its latest quarterly results, with total revenue reaching $27.9 million for the three months ended June 30, 2025, compared to $15.6 million for the same period in 2024. This 78% increase was primarily driven by a substantial rise in product sales, particularly in the microturbine segment, which saw revenues grow from $5.4 million to $15.7 million. The company also reported a gross profit of $7.6 million, representing a gross margin of 27%, up from 24% in the prior year, attributed to improved pricing and cost efficiencies.

In terms of profitability, Capstone narrowed its net loss to $0.7 million, or $0.04 per share, compared to a net loss of $3.9 million, or $0.21 per share, in the previous year. The reduction in losses was aided by a $3.8 million increase in gross profit, although this was partially offset by a $0.4 million rise in total operating expenses. The company’s operating expenses included $0.8 million in research and development, reflecting ongoing investments in product enhancements and new developments.

Operationally, Capstone reported a total of 48 distributors, with significant contributions from key partners such as Cal Microturbine and Lone Star Power Solutions, which accounted for 47% and 10% of revenue, respectively. The company’s backlog increased to approximately $24.6 million, up from $12.4 million a year earlier, indicating strong demand for its products. The book-to-bill ratio stood at 1.07:1, suggesting that new orders are outpacing shipments, a positive indicator for future revenue growth.

Despite these improvements, Capstone faces challenges, including a working capital deficit of $14.2 million and a cash balance of $6.6 million as of June 30, 2025. The company has acknowledged substantial doubt regarding its ability to continue as a going concern, primarily due to liquidity constraints and upcoming debt obligations. To address these issues, Capstone is implementing a robust plan aimed at enhancing operational efficiency, reducing costs, and exploring financing options to bolster liquidity. The company remains focused on expanding its presence in the energy efficiency and renewable energy markets while continuing to innovate its product offerings.