Tecogen (TGEN) investor relations material

Executive summary

• Q2 2025 revenue rose 54% year-over-year to $7.3M, driven by strong product sales, new chiller launches, and progress in the data center strategy, including a first LOI for a 100MW+ pilot project and robust lead generation.

• Net loss narrowed to $1.46M from $1.54M in Q2 2024, reflecting higher gross profit despite increased operating expenses.

• Raised $18.2M–$18.6M in July 2025 to fund expansion into data centers, product development, and marketing, strengthening the balance sheet.

• Launched a dual power source 300-ton chiller, targeting data center flexibility and resiliency, with patent issued in March 2024.

• Uplisted to NYSE American in May 2025, enhancing market visibility.

Financial highlights

• Q2 2025 revenues increased to $7.3M from $4.7M in Q2 2024, with gross profit up 18% to $2.5M; gross margin declined to 33.8%–34% from 44% due to higher labor and material costs.

• Net loss per share was $0.06, unchanged year-over-year; adjusted EBITDA loss improved to $1.16M from $1.30M.

• Backlog at quarter end was $4.7M–$6.2M, with $2.5M–$3.5M in cannabis projects expected to close in Q3/Q4.

• Cash and cash equivalents at June 30, 2025 were $1.64M, increasing to $18.2M–$18.7M post capital raise.

• Operating expenses rose 9% year-over-year due to higher payroll, benefits, and sales/R&D costs.

Outlook and guidance

• Management prioritizes data center strategy, aiming to convert LOIs to purchase orders and sell all 2026 capacity to one or two customers.

• Plans to remove factory and supply chain bottlenecks, scale manufacturing, and improve hybrid chiller margins with volume.

• Raised capital will support expansion into data centers, product launches, and general corporate purposes.

• Marketing plan with Vertiv finalized, with releases expected in Q3 and Q4.

• Exploring licensing and factory scale-up as longer-term initiatives.