Capstone Green Energy (CGRN) investor relations material

Executive summary

• Revenue rose 78% year-over-year to $27.9M for Q1 FY26, driven by strong growth in microturbine products, accessories, and rentals, and improved gross margin to 27%.

• Achieved fifth consecutive quarter of positive adjusted EBITDA, reaching $2.7M, reflecting operational discipline and strategic execution.

• Net loss narrowed to $0.7M from $3.9M year-over-year, aided by higher gross profit and reduced non-recurring expenses.

• Acquisition of Cal Microturbine expands direct market access in high-growth western U.S. regions and distributed generation markets.

• Management is focused on cost reductions, margin expansion, and sales growth, but faces risks from liquidity constraints and market conditions.

Financial highlights

• Gross profit doubled to $7.6M, with gross margin improving to 27% from 24% year-over-year.

• Product and accessories revenue grew to $15.7M from $5.4M year-over-year; rental revenue increased to $4.3M from $2.4M.

• Adjusted EBITDA reached $2.7M, a $2M improvement from the prior year.

• Cash and equivalents at quarter-end were $6.6M, with a working capital deficit of $14.2M.

• Net cash used in operating activities was $1.6M for the quarter.

Outlook and guidance

• Management highlights strong bookings pipeline, focus on operational efficiency, and opportunities in data center and microgrid segments.

• Trailing twelve months revenue exceeded $97M, with expectations to surpass $100M in FY26.

• Book-to-bill ratio of 1.32 in megawatts signals strong demand and backlog.

• Substantial doubt exists regarding the ability to meet obligations over the next twelve months due to liquidity constraints and short-term debt repayments.

• Financing discussions are underway to refinance debt and add liquidity, but success is not guaranteed.