Tecogen Inc. Reports 19.7% Revenue Growth to $27.1 Million for Fiscal Year 2025

Tecogen Inc. reported a significant increase in revenue for the fiscal year ending December 31, 2025, achieving $27.1 million, a 19.7% rise from $22.6 million in 2024. This growth was primarily driven by a 105.5% increase in product revenues, which reached $9.1 million, largely due to a surge in chiller sales. However, the company also faced challenges, including a 37% decline in energy production revenues, which fell to $1.3 million, attributed to the expiration of several contracts and operational disruptions at energy production sites.

The company's financial performance was impacted by rising costs, with total operating expenses increasing by 25.4% to $18.1 million, leading to a net loss of $8.2 million, compared to a loss of $4.8 million in the previous year. The increase in expenses was driven by higher general and administrative costs, including payroll and employee benefits, as well as significant goodwill impairment charges of $1.1 million related to its energy production segment. The gross margin also decreased from 43.6% in 2024 to 36.3% in 2025, reflecting increased costs in both the products and services segments.

Strategically, Tecogen has made notable advancements, including a successful equity financing round in July 2025, raising approximately $18.1 million through the sale of 3.9 million shares. This capital is intended to support product development, marketing efforts, and expansion into the data center market, which the company views as a significant growth opportunity. Additionally, Tecogen entered a two-year sales and marketing agreement with Vertiv Corporation to promote its DTx chillers for data center cooling applications, further enhancing its market presence.

Operationally, Tecogen's service segment maintained a steady revenue stream, generating $16.6 million, a 3.4% increase from the previous year. The company reported servicing approximately 764 cogeneration units and 244 chillers as of December 31, 2025. However, the backlog of orders decreased significantly to $2.5 million from $12.3 million in 2024, reflecting a shift in customer demand and project delays. The company also relocated its manufacturing operations to North Billerica, Massachusetts, which temporarily affected product revenues during the transition.

Looking ahead, Tecogen's management remains optimistic about future growth, particularly in the data center sector, where demand for energy-efficient cooling solutions is expected to rise. The company plans to leverage its recent partnerships and product innovations to capture market share, despite the ongoing challenges posed by regulatory changes and market conditions. Management believes that the current working capital and cash flows will be sufficient to support operations over the next twelve months, although they may seek additional financing to fund future growth initiatives.