Legend Power Systems (LPS) Q2 2026 earnings summary

Executive summary

• Achieved significant progress in addressing commercial adoption challenges for SmartGATE, leading to improved sales and shortened sales cycles.

• Revenue for Q2 F2026 was $546 thousand, up 4% year-over-year, driven by additional SmartGATE unit sales.

• Net loss narrowed to $443 thousand from $940 thousand in Q2 F2025, reflecting improved operational efficiency.

• Secured over CAD 1.3 million in new orders for 12 SmartGATE systems in May, including government, reseller, and existing customer expansions.

• Enhanced value proposition now emphasizes non-energy financial benefits, supported by third-party validation and real-world data.

Financial highlights

• Q2 2026 revenue was CAD 545,000, flat quarter-over-quarter, with growth in service and recurring maintenance revenues.

• Gross margin for the last six months reached 41%, up from 21% in the same period last year, driven by reduced material costs.

• Gross margin rose to $213 thousand (39%) from $114 thousand (22%) year-over-year, due to higher average selling prices and better factory utilization.

• Operating expenses for Q2 2026 were CAD 658,000, down from over CAD 1 million in Q2 2025, with monthly costs now under CAD 150,000.

• Adjusted EBITDA loss improved to $294 thousand from $810 thousand in the prior year quarter.

Outlook and guidance

• Expectation to achieve 50% gross margins during the year as cost improvements continue.

• Pipeline activity is increasing, with several near-term opportunities and potential for portfolio-scale customer expansions.

• MAS (Multiple Award Schedule) approval expected within 60-120 days, which will accelerate federal and public sector sales.

• Sales activity remains strong, with over 196 buildings in active sales cycles and more than 400 potential SmartGATE installations.

• SmartGATE is increasingly viewed as essential infrastructure, not just an efficiency upgrade.