Tantalus Systems (GRID) investor relations material

Company overview and market focus

• Specializes in technology for modernizing electric utility distribution grids, supporting over 330 utilities, primarily in the U.S., with $57M in trailing 12-month revenue as of March 31, up over 20% year-over-year.

• Revenue mix includes connected edge devices and software/AI analytics, with 35% from software/services and 25% as recurring revenue, driven by long device lifecycles.

• Targets public power and electric cooperative utilities, historically focusing on smaller, disaggregated market segments and adding about 20 new utilities per year since 2014.

• Differentiates through custom ASICs, edge computing, and an interoperable data management platform, enabling integration with legacy and modern devices.

• Emphasizes multi-decade customer relationships, with a 99% retention rate and a land-expand-broaden model.

Industry drivers and challenges

• Growth is fueled by electrification (EVs, appliances, data centers), extreme weather events, and an aging utility workforce, all increasing grid stress and complexity.

• Utilities face challenges in attracting new engineering talent, making AI and machine learning critical for operational efficiency and knowledge retention.

• Data centers are causing significant increases in power demand, requiring utilities to manage 10x load growth in some cases.

• Extreme weather events drive utilities to invest in grid resiliency and vulnerability pinpointing.

• The need for granular, behind-the-meter control is rising to manage peak loads and affordability, especially as utilities predict blackouts and introduce new rate structures.

Technology and innovation

• Offers edge computing devices, custom ASICs, and the TRUSense Gateway, which enables advanced data extraction and analytics without full infrastructure replacement.

• Focuses on interoperability, supporting data from any device via multiple communication technologies (fiber, RF, cellular, WiMAX).

• Machine learning and AI are used to triangulate anomalies in voltage/current, identify transformer and line vulnerabilities, and optimize grid operations.

• TRUSense Gateway provides first-mover advantage, allowing utilities to access advanced analytics and control without replacing meters.

• Partnerships with appliance manufacturers aim to enable granular load control and demand response at the appliance level.