Legend Power Systems (LPS) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was $385,000, down from $1 million in Q3 2024, due to deal timing and a significant backlog expected to be fulfilled by year-end.

• Gross margin declined to 24% from 50% year-over-year, attributed to lower production utilization and prior year rush orders.

• Cash position at quarter-end was $215,000, with no debt and $156,000 in working capital; subsequent collections further improved liquidity.

• Net loss increased to $837,000 from $482,000 in Q3 F2024, reflecting lower sales volume.

• Operational progress includes repeat and new orders from key institutional clients, including the NYC Public School System and major international airports.

Financial highlights

• Q3 2025 revenue: $385,354, a 63% decrease from $1,042,412 in Q3 2024.

• Gross margin: $93,064 (24%) vs. $520,138 (50%) in Q3 2024, impacted by production and order mix.

• Operating expenses decreased 7% year-over-year to $927,839.

• Net loss for Q3 F2025 was $837,615, up 74% from $482,386 in Q3 F2024.

• Nine-month revenue was $989,768, down 15% year-over-year; nine-month net loss increased 14% to $2,810,359.

Outlook and guidance

• Expectation to achieve 50%+ gross margins in the next year through cost reductions.

• All 15-system backlog anticipated to ship by calendar year-end.

• Management expects significant backlog fulfillment and major deal closures before year-end, with momentum anticipated to accelerate.

• Multiple large, multi-year deals nearing closure, with a clear path to revenue growth.

• Multiple late-stage opportunities in commercial real estate, education, government, and military sectors are in progress.