Tantalus Systems Holding (GRID) investor relations material

Business overview and market positioning

• Focused on modernizing electric utility distribution grids, addressing reliability challenges from AI, data centers, and electrification trends.

• Supports over 325 utilities, adding about 20 new customers annually and gaining market share against larger competitors.

• Reports in USD, with 99% of revenue from the U.S., but sees new opportunities in Canada due to regulatory changes.

• Achieved nearly $50 million in trailing 12-month revenue, with 35% from software/services and 25% from recurring revenue.

• Recurring revenue has grown at a 20% CAGR since 2016, driven by new product innovation and customer expansion.

Technology and innovation

• Developed the TRUSense Gateway, an edge computing device that collects granular power quality data at the meter level.

• Enables utilities to monitor, manage, and optimize grid assets, including behind-the-meter loads like EVs and smart appliances.

• Provides utilities with real-time data to prevent outages, manage peak demand, and protect infrastructure.

• Supports automation and analytics to address workforce shortages and improve grid resiliency.

• Hardware creates long-term customer relationships (12–15 years) and a data moat for analytics and AI applications.

Financial performance and business model

• Hardware sales account for 65% of revenue, with software/services making up the rest; gross profit margin averages 54%.

• Each device sold generates recurring revenue ($4–$11 per device per year), with TRUSense Gateway at the higher end.

• Positive adjusted EBITDA and free cash flow, with $18 million in liquidity to support growth.

• Targeting adjusted EBITDA margins of 15–17.5% as revenue scales to $70 million, with current focus on revenue growth over margin maximization.

• Retention rate of 99% over two decades, with only one customer lost in 11 years.