Tantalus Systems (GRID) Q2 2025 earnings summary

Executive summary

• Revenue grew 22% year-over-year to $13.1 million in Q2 2025, driven by strong performance in both Connected Devices and Software & Services, and momentum from TRUSense Gateway.

• Recurring revenue reached $13.3 million in Q2, up 11% year-over-year, with an 18% CAGR since 2016.

• Gross profit margin was 53%, above target, with positive adjusted EBITDA of $510,000 in Q2 2025.

• Net loss improved to $903,000 from $1 million year-over-year, with diluted loss per share steady at $0.02.

• Added 25 new utilities over the past 12 months, with 45 utilities now trialing or deploying TRUSense Gateway.

Financial highlights

• Q2 2025 revenue: $13.1 million, up from $10.7 million in Q2 2024.

• Gross profit margin at 53% in Q2, with Software & Services segment margin at 75%.

• Recurring revenue was $3.2 million in Q2 (25% of total); trailing 12-month revenue approached $50 million.

• Available liquidity at quarter-end was $19.7 million, including $11.2 million in cash and $8.5 million in credit facility.

• 88% of Q2 revenue came from existing customers, highlighting strong retention.

Outlook and guidance

• Optimism for continued growth based on improving financials, robust sales pipeline, and grid modernization trends.

• Commercialization of TRUSense Gateway and AI-driven analytics expected to drive further revenue and margin expansion.

• R&D spend expected to normalize as external expenditures for TRUSense Gateway development wind down.

• Strong liquidity and no debt maturities until June 30, 2027, supporting growth initiatives.