TurnOnGreen Reports 9% Revenue Growth but Increases Net Loss to $773,000 in Q1 2026

TurnOnGreen, Inc. reported its financial results for the first quarter of 2026, revealing a revenue increase of 9% to $1.736 million, up from $1.592 million in the same period last year. The company achieved a gross profit of $813,000, an 11% increase compared to $730,000 in the prior year. However, TurnOnGreen also experienced a net loss of $773,000, which represents a 43% increase from the $541,000 loss reported in the first quarter of 2025. The increase in net loss was attributed to higher operating expenses, including costs related to the relocation of office and warehouse space, increased selling and marketing expenses, and rising interest expenses.

The company's total operating expenses rose significantly by 26% to $1.434 million, compared to $1.140 million in the previous year. General and administrative expenses accounted for a substantial portion of this increase, climbing 29% to $993,000. The company also reported a notable rise in interest expenses, particularly from related parties, which increased by 37% to $170,000. Despite the revenue growth, the operating loss widened to $621,000 from $410,000 in the prior year, reflecting the challenges faced in managing costs alongside revenue generation.

In terms of operational developments, TurnOnGreen's customer base and product offerings continue to evolve. The company reported a significant increase in sales from commercial customers, contributing approximately $344,000 to revenue, while sales to defense industry customers decreased by about $194,000. The company serves a diverse range of markets, including defense, medical, and electric vehicle (EV) charging solutions, and has been focusing on expanding its EV charging infrastructure and subscription-based network management services.

As of March 31, 2026, TurnOnGreen's total assets increased to $4.961 million, up from $3.227 million at the end of 2025. This growth was primarily driven by an increase in cash and cash equivalents, accounts receivable, and inventories. However, the company's liabilities also rose significantly, with total liabilities reaching $13.576 million, compared to $11.069 million at the end of the previous fiscal year. The increase in liabilities was largely due to higher convertible notes payable and current liabilities, including accounts payable and accrued expenses.

Looking ahead, TurnOnGreen's management expressed concerns regarding the company's ability to continue as a going concern, citing ongoing operating losses and insufficient cash flows. The company plans to finance its future development activities primarily through advances from related parties, including Hyperscale Data, Inc. However, there is uncertainty regarding the availability of continued financing, which could impact the company's operations. The management's outlook remains cautious, as they anticipate continued losses until significant product deliveries commence.