Capstone Green Energy (CGRN) Q3 2025 earnings summary

Executive summary

• Q3 FY2025 revenue rose to $20.1 million, up $5.5 million or 38% year-over-year, driven by a rebound in orders, strong demand in North America, and high utilization in the Energy as a Service (EaaS) rental segment.

• Year-to-date revenue declined to $58.5 million, down from $66.9 million, mainly due to slow sales in early FY2025 following Chapter 11 restructuring.

• Gross profit for Q3 was $5.0 million (25% margin), up from $3.0 million (21% margin) year-over-year, reflecting higher sales volume, increased pricing, and lower costs.

• Net loss for Q3 was $2.7 million, compared to net income of $24.2 million in Q3 FY2024, which included a $32.6 million reorganization gain.

• Adjusted EBITDA for Q3 was $0.5 million, a significant improvement from negative $0.2 million year-over-year.

Financial highlights

• Q3 FY2025 revenue was $20.1 million, up from $14.6 million in Q3 FY2024.

• Gross profit for the nine months ended December 31, 2024, was $15.8 million (27% margin), up from $11.7 million (17-18% margin) year-over-year.

• Adjusted EBITDA for the nine months was $5.1 million, up from $0.3 million in the prior year.

• Cash provided by operating activities for the nine months was $2.2 million, compared to $22.1 million used in the prior year.

• Cash at December 31, 2024, was $3.3 million, with a working capital deficit of $15.6 million.

Outlook and guidance

• No formal forward guidance provided, but management expects performance to remain consistent with current trends, supported by a strong order book and stable service business.

• Focus remains on operational improvements, cost discipline, and margin expansion through DFMA initiatives and commercial discipline.

• Management highlights substantial doubt about the ability to continue as a going concern due to limited liquidity and working capital deficit.