Capstone Green Energy (CGRN) Q3 2026 earnings summary

Executive summary

• Q3 FY2026 revenue reached $26.8 million, up 33% year-over-year, with year-to-date revenue at $83 million, a 42% increase, driven by strong product and parts demand and disciplined execution.

• Achieved net income of $1.2 million for the quarter and $1.3 million year-to-date, reversing prior year losses and marking the second consecutive quarter of positive net income.

• Gross margin expanded to 39% from 25% year-over-year, reflecting operational efficiency, price increases, and cost reductions.

• Adjusted EBITDA for Q3 was $5.1 million, with seven consecutive quarters of positive results and year-to-date Adjusted EBITDA of $12.3 million.

• Completed the acquisition of Cal Microturbine, expanding direct distribution and service capabilities.

Financial highlights

• Gross profit for Q3 was $10.4 million (39% margin), more than double the prior year.

• Product and accessories revenue increased to $13.6 million, with parts and services revenue at $9.3 million; rental revenue declined to $3.9 million.

• Cash and equivalents stood at $15.2 million at quarter end, up from $8.7 million at March 31, 2025.

• SG&A expenses were $7.4 million (28% of revenue), up $1.1 million year-over-year, including $0.6 million incentive compensation and $0.2 million intangible amortization.

• Operating expenses rose to $8.4 million for the quarter, mainly due to higher SG&A and R&D spending.

Outlook and guidance

• Management is focused on sustaining margin expansion, optimizing cash flow, and maintaining financial flexibility to support ongoing growth.

• Strategic investments in technology, including new low-NOx combustor liners and an 800 VDC platform, are expected to drive future growth.

• Addressable markets include ports, microgrids, station power, and data centers, with significant potential for market share capture.

• Substantial doubt exists regarding the ability to continue as a going concern due to liquidity constraints and upcoming debt maturities.

• Exploring refinancing options for $25.3 million in Exit Roll Up Notes maturing December 2026.