Tantalus Systems (GRID) Q3 2026 earnings summary

Executive summary

• Q3 adjusted revenue was a third-quarter record $14.299M, flat YoY; reported revenue was $12.919M after expected tariff-related customer credits.

• ARR reached a record $15.4M, up 14% YoY; 11 utilities converted in Q3 and 19 in 9M.

• Q3 Adjusted EBITDA was $1.185M, in line with the prior year; shipment timing shifted connected-device deliveries, while demand remained durable.

Financial highlights

• Q3 reported revenue was $12.919M vs. $14.197M YoY; adjusted revenue excluding IEEPA effects was $14.299M vs. $14.2M.

• Q3 net income was $1.420M vs. $0.384M, including a $1.114M gross-profit benefit from net tariff refunds.

• 9M reported revenue rose to $43.432M from $39.188M; operating income was $526K vs. a $23K loss, and net income was $10K vs. a $1.170M loss.

• 9M adjusted revenue rose 14% to $44.8M; Adjusted EBITDA increased 30% to $2.625M from $2.024M.

• Q3 Adjusted EBITDA was $1.185M vs. $1.197M; operating cash flow was negative $2.067M for 9M vs. positive $1.004M.

Outlook and guidance

• Meter supply constraints, longer manufacturing lead times and a large customer deferral shifted shipments; a portion is expected in Q4, while slightly over $1M moves into 2027.

• Inventory investment is intended to support deployments and margins amid component constraints, inflation and longer lead times.

• Two utilities remained in contracting at Q3-end, with management expecting both to sign before year-end; utility budget cycles and approvals shape conversion.

• Adjusted OpEx is expected to remain within 47%-49% of adjusted revenue; the first U.S. service center is expected to open in Q2 2027.