Capstone Green Energy (CGRN) Q4 2025 earnings summary

Executive summary

• Q4 FY25 revenue rose 11% year-over-year to $27.1M, while full-year revenue declined 6% to $85.6M due to a weak first half, European market weakness, and restructuring impacts.

• Achieved first full-year positive Adjusted EBITDA in company history, reaching $7.9M, reflecting a major profitability milestone and operational improvements.

• Gross margin improved significantly to 28% in Q4 FY25 from 11% in Q4 FY24, and to 27% for the full year from 16% the prior year.

• Net loss for the year was $(7.2)M, a substantial improvement from $(35.3)M in FY24, reflecting successful restructuring and cost controls.

• Strategic focus on financial health, sustainable excellence, and revitalizing culture underpinned performance improvements.

Financial highlights

• Q4 FY25 parts, service & rental revenue grew to $11.8M from $8.7M year-over-year.

• FY25 bookings increased to $46.0M on 133 units, up from $34.4M on 126 units in FY24.

• Cash and cash equivalents at year-end were $8.7M, up from $2.1M the previous year.

• Cash provided by operating activities was $7.7M for FY25, compared to $(27.7)M in FY24.

• Inventories decreased to $16.6M from $20.6M year-over-year.

Outlook and guidance

• Focus remains on profitable deals, fixed cost absorption, and expanding repeatable business models such as EaaS and adjacent revenue streams.

• Management aims to elevate stock to OTC:QX and pursue relisting on Nasdaq or a similar exchange.

• Strategic roadmap targets financial health, sustainable excellence, and talent development.

• Market positioning leverages growth in distributed generation, data centers, and microgrids amid rising US power demand.

• Focus remains on strategic growth, operational discipline, and leveraging market tailwinds for future profitability.