Capstone Green Energy (CGRN) LD Micro Main Event XIX Investor Conference summary

Strategic Initiatives and Market Positioning

• Launched a three-pillar strategy in 2024: financial health, sustainable excellence, and revitalization of culture and talent, driving profitability, operational discipline, and over 30% revenue growth and margin expansion.

• Focused on distributed generation, microgrids, data centers, electrification of ports and terminals, and station power for utilities as primary growth markets.

• Targeting a $304 billion total addressable market across data centers, microgrids, ports, and station power, aiming to capture a significant share through focused execution.

• Emphasizes resilience and adaptability, emerging stronger post-restructuring and bankruptcy.

• Acquired a major distributor to enable direct sales and margin expansion, and launched a Global National Account program to support large customers.

Technology and Innovation

• Over 37 years of proven microturbine technology with more than 10,600 units deployed globally, supported by a robust distribution and service network.

• Proprietary innovations include recuperators for high efficiency and low emissions, air bearing technology for oil-free operation, advanced combustion for ultra-low NOx, and unique power electronics.

• Power electronics enable direct delivery of 800V DC, aligning with new data center requirements for AI infrastructure, a capability unmatched by most competitors.

• Engineered equipment packages for data centers integrate microturbines, absorption chillers, and battery storage, offering high power density and energy surplus.

• Product portfolio includes scalable microturbines (65 kW to 1 MW) for diverse applications, supporting multiple fuels and remote monitoring.

Financial Performance and Outlook

• Achieved first full-year positive adjusted EBITDA in FY2025 ($7.9M), with gross margin improving to 27% and net loss reduced to $7.2M.

• Q1 FY2026 revenue grew 79% year-over-year to $27.9M, with gross profit doubling and adjusted EBITDA up 286%.

• Six consecutive quarters of positive adjusted EBITDA, reflecting successful execution of the three-pillar strategy.

• Revenue diversification across products, services, and Energy as a Service (EaaS) models strengthens recurring income.

• Balance sheet shows $6.6M in cash and $19.7M in inventories as of June 30, 2025.