Legend Power Systems (LPS) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue rose to $523,000 from $124,000 in Q2 2024, driven by increased SmartGATE unit sales and growing adoption of Gen3 systems.

• Net loss was $940,000, slightly higher than $907,000 in Q2 2024, reflecting higher operating expenses.

• Strategic partnerships, including Unity Electric and direct customer installations, are accelerating sales cycles and improving margins.

• Major new and repeat orders, including from the City of New York Public School System, signal growing market traction.

• Cash at quarter-end was $224,000, with $874,000 in working capital and no debt; $750,000 in receivables collected post-quarter.

Financial highlights

• Revenue increased 323% year-over-year to $523,000 in Q2 2025.

• Gross margin dollars improved to $114,000 from $57,000, though margin percentage declined to 22% due to product mix and higher component costs.

• Operating expenses increased to $1.05 million from $968,000, mainly due to higher consulting and warranty costs.

• Net loss for Q2 2025 was $940,000, compared to $907,000 in Q2 2024.

• Over $750,000 in trade receivables and deposits collected after quarter-end.

Outlook and guidance

• Margins are expected to return to targeted 40-50%+ levels as product mix shifts to higher-margin systems and cost reductions take effect.

• Focus on accelerating deployments, advancing late-stage opportunities, and converting pipeline activity into scalable revenue.

• The sales pipeline is growing, with larger, multi-year opportunities emerging, especially in the U.S. market.

• Anticipated acceleration in sales from government and infrastructure sectors as GSA multiple award schedule nears approval.