Capstone Green Energy Reports Revenue Growth and Improved Profitability for December 2025 Quarter

Capstone Green Energy Holdings, Inc. reported a significant increase in financial performance for the three months and nine months ended December 31, 2025, compared to the same periods in the previous year. The company generated total revenue of $26.8 million for the quarter, up from $20.1 million, and $83.0 million for the nine months, compared to $58.5 million. This growth was primarily driven by increased demand for microturbine products and parts, particularly in the United States and Latin America. The gross profit for the quarter rose to $10.4 million, representing 39% of revenue, compared to $5.0 million or 25% of revenue in the prior year.

The company also reported a net income of $1.2 million for the quarter, a notable improvement from a net loss of $2.7 million in the same quarter of 2024. For the nine-month period, net income was $1.3 million, compared to a loss of $7.1 million in the previous year. The increase in profitability was attributed to higher sales volumes, improved pricing strategies, and cost reduction initiatives, despite a rise in operating expenses due to acquisition-related costs and financing expenses.

Strategically, Capstone completed the acquisition of Cal Microturbine on August 13, 2025, for approximately $14.9 million, which is expected to enhance the company's distribution and service capabilities. The acquisition contributed $2.5 million in revenue for the quarter and $3.2 million for the nine months ended December 31, 2025. The company is also focusing on expanding its Energy-as-a-Service (EaaS) offerings and has begun developing microgrid solutions tailored for AI infrastructure, indicating a strategic pivot towards emerging markets.

Operationally, Capstone's backlog decreased to approximately $11.6 million as of December 31, 2025, down from $26.8 million a year earlier, reflecting a book-to-bill ratio of 0.7:1. This decline was attributed to reduced new orders, including cancellations of pre-acquisition orders from Cal Microturbine. The company reported a total employee headcount of 200 as of the end of the reporting period, reflecting its ongoing commitment to operational efficiency and market expansion.

Looking ahead, Capstone has expressed concerns regarding its ability to meet financial obligations due to a working capital deficit of $22.9 million and upcoming debt maturities. The company is exploring various financing options, including potential equity issuances, to address these challenges. Management has outlined a plan to improve financial performance through operational enhancements, cost reductions, and margin expansion initiatives, although the success of these strategies remains uncertain amid current market conditions.