Legend Power Systems (LPS) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 was marked by external disruptions, including U.S. tariffs and government shutdowns, which delayed but did not cancel sales opportunities.

• Revenue for Q4 F2025 was $690,284, a slight decrease of 2% compared to Q4 F2024, with annual revenue down 10% year-over-year.

• Net loss for Q4 F2025 improved to $481,441 from $832,475 in Q4 F2024, reflecting higher gross margin and cost-cutting.

• Demand for SmartGATE remains high, with strong field performance and expanding customer adoption, especially in mission-critical and public sector verticals.

• The company maintained operations in a tight cash environment, implementing significant cost reductions and salary deferrals to conserve cash.

Financial highlights

• Fiscal 2025 revenue was CAD 1.7 million, down from CAD 1.9 million in 2024, mainly due to lower unit volume and deal value.

• Q4 2025 revenue was CAD 690,000, compared to CAD 705,000 in Q4 2024.

• Gross margin for FY 2025 was 23%, down from 38% in 2024, primarily due to an inventory provision and inflationary cost increases.

• Operating expenses for FY 2025 were CAD 3.7 million, down from CAD 4 million in 2024, reflecting process optimization and headcount reduction.

• Q4 F2025 adjusted EBITDA loss narrowed to $514,444 from $763,529 in Q4 F2024.

Outlook and guidance

• Expectation to achieve 50% gross margins in fiscal 2026 through supplier negotiations and COGS reduction initiatives.

• Anticipate all seven remaining backlog systems to ship by year-end, supporting further cash receipts.

• Sales pipeline is growing, with over 20 active opportunities and visibility to 200+ potential systems.

• Management anticipates strong revenue growth over the next 3-5 years, driven by alternative energy trends and grid challenges.

• Anticipate strong order flow as U.S. government procurement normalizes.