Tantalus Systems (GRID) Planet MicroCap Showcase: VEGAS 2025 summary

Company overview and industry context

• Focuses on hardware-enabled software for utilities, embedding edge computing in meters and infrastructure to modernize the distribution grid and manage increased residential power consumption.

• Serves 320 utilities, helping them upgrade infrastructure without full replacement, leveraging data for analytics and operational efficiency.

• Recurring revenue is 25% of total, with 35% from software and services, and a customer retention rate over 99% over 20 years.

• Flexible approach allows integration with third-party devices, distinguishing from competitors who require full system replacement.

• Utilities face challenges from aging infrastructure, increased demand from EVs, and the need for grid modernization.

Technology and product innovation

• Developed the TruSense Gateway, a meter collar device co-designed with nine utilities, enabling advanced data collection and analytics.

• Device delivers 1,500 data points per day, compared to legacy meters' single monthly reading, and can be deployed behind existing meters.

• Enables utilities to control home appliances (e.g., water heaters) for load management, partnering with GE Appliances and Savant Energy.

• Supports over-the-air software upgrades with two major releases per year, ensuring devices remain future-proof.

• Focus on safety and operational efficiency, such as tracking reverse power flow and transformer health to prevent outages and hazards.

Financial performance and growth outlook

• Achieved record revenue and order conversion in 2024, with $51 million in orders and 54% gross profit margin.

• Recurring revenue growing at 18-20% CAGR, with anticipated 15-20% annual growth from TruSense Gateway.

• Advisory committee of nine utilities represents $150 million in incremental revenue, with broader market potential of $500 million over 7-8 years.

• Majority institutional ownership provides share price stability; recently added OTCQX listing for US investors.

• Six covering analysts, with recent coverage from Raymond James after 2024 results.