Legend Power Systems (LPS) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 was transformative, with record-breaking bookings, margin improvements, and diversification across geographies and verticals.

• Revenue for Q4 F2024 increased to $705,335, up 343% year-over-year, driven by production and supply chain efficiencies and higher SmartGATE unit prices.

• Five strategic pillars—GSA, DoD, ESCOs, City of New York, and GSA Multiple Award Schedule—are driving growth, with tangible wins and execution underway.

• Net loss for Q4 F2024 narrowed to $832,475 from $969,729 in Q4 F2023, reflecting improved gross margin and cost-cutting.

• SmartGATE installations are scaling from dozens to hundreds annually, with strong customer satisfaction and repeat business.

Financial highlights

• Q4 2024 revenue was CAD 705,000 ($705,335), up from CAD 159,000 in Q4 2023, with annual revenue up 69% to $1,872,973.

• Q4 gross margin improved to 21% from negative 4% year-over-year; full-year gross margin rose to 38% from 18%.

• Ended Q4 with CAD 236,000 ($236,000) in cash, no debt, and CAD 743,000 ($742,000) in working capital.

• Operating expenses for Q4 F2024 decreased 2% year-over-year to $976,967 due to lower salaries and consulting costs.

• Deferred revenue at September 30, 2024, was CAD 364,607, down from CAD 524,127 in the prior quarter as backlog was fulfilled.

Outlook and guidance

• Positioned to be EBITDA positive in 2025, supported by a robust backlog and ongoing operational improvements.

• Expectation of further gross margin improvement toward historical 50% levels over the next 12–24 months.

• Management expects significant revenue growth over the next 3–5 years, supported by five strategic pillars.

• Order visibility is at its strongest, with many prospects in advanced decision stages.

• Focus remains on helping partners and prospects develop deployment plans for SmartGATE solutions.