Tecogen Reports 54.3% Revenue Growth to $7.3 Million in Q2 2025

Tecogen Inc. reported significant financial developments in its latest 10-Q filing for the second quarter of 2025, showcasing a notable increase in revenue and strategic operational changes. The company generated total revenues of $7.3 million for the three months ended June 30, 2025, marking a 54.3% increase from $4.7 million in the same period last year. This growth was primarily driven by a substantial rise in product sales, particularly in the cogeneration and chiller segments, which saw increases of 791.5% and 415.9%, respectively. However, the company also experienced a decline in energy production revenues, which fell by 63.8% due to the expiration of several contracts and temporary shutdowns for repairs.

In terms of profitability, Tecogen reported a consolidated net loss of $1.5 million for the second quarter of 2025, a slight improvement from a loss of $1.5 million in the prior year. The loss per share remained consistent at $(0.06). The company's gross profit margin decreased to 33.8% from 44.0% year-over-year, attributed to increased costs in both product and service segments. Operating expenses rose by 9.0% to $3.9 million, driven by higher general and administrative costs, which included increased payroll and professional fees.

Strategically, Tecogen has made significant moves to enhance its market position. The company completed a public offering of 3,985,000 shares at $5.00 per share on July 21, 2025, raising approximately $18.2 million in net proceeds. These funds are earmarked for product development, marketing, and expansion into the data center market. Additionally, Tecogen has entered into a two-year sales and marketing agreement with Vertiv Corporation to promote its DTx chillers for data center cooling applications, further diversifying its product offerings.

Operationally, Tecogen's customer base and service capabilities have expanded, particularly following the acquisition of Aegis Energy Services, which has added maintenance contracts and related assets to its portfolio. The company reported that service revenues slightly increased by 0.9% to $8.2 million, although this was offset by a decline in revenues from Aegis contracts. The total number of customers serviced has grown, reflecting the company's ongoing efforts to enhance its service segment.

Looking ahead, Tecogen anticipates continued growth driven by its product innovations and strategic partnerships. The company is focused on addressing the increasing demand for energy-efficient solutions in the face of rising utility costs and regulatory pressures. Despite the challenges posed by market conditions and operational transitions, Tecogen remains optimistic about its future prospects, particularly in the data center and controlled environment agriculture sectors, where its technologies can provide significant energy savings and operational efficiencies.