Tecogen — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenues for the three months ended September 30, 2026, were $7.87 million, a 9.6% increase compared to $7.18 million in the same period of 2025.
• Total revenues for the nine months ended September 30, 2026, were $19.96 million, an 8.3% decrease compared to $21.76 million in the same period of 2025.
• Net loss for the three months ended September 30, 2026, was $1.59 million ($0.05 per share), compared to a net loss of $2.13 million ($0.07 per share) in 2025.
• Net loss for the nine months ended September 30, 2026, was $5.86 million ($0.20 per share), compared to a net loss of $4.25 million ($0.16 per share) in 2025.
• Gross profit for the three months ended September 30, 2026, was $2.95 million with a gross margin of 37.4%, compared to $2.18 million and a 30.4% margin in 2025.
• Gross profit for the nine months ended September 30, 2026, was $7.71 million with a gross margin of 38.6%, compared to $7.87 million and a 36.2% margin in 2025.
• Loss from operations for the three months ended September 30, 2026, was $1.57 million, compared to $2.10 million in 2025.
• Loss from operations for the nine months ended September 30, 2026, was $5.85 million, compared to $4.11 million in 2025.
• Operating expenses increased to $4.51 million (5.3%) for the three months ended September 30, 2026, from $4.28 million in 2025, and to $13.56 million (13.3%) for the nine months ended September 30, 2026, from $11.97 million in 2025.
• Adjusted EBITDA was negative $1.01 million for the three months ended September 30, 2026, compared to negative $1.67 million in 2025.
• Adjusted EBITDA was negative $4.37 million for the nine months ended September 30, 2026, compared to negative $3.22 million in 2025.
• Cash and cash equivalents balance was $5.33 million at September 30, 2026, down from $12.43 million at December 31, 2025.
• Deferred revenue (current and long-term combined) was $4.45 million at September 30, 2026, compared to $4.80 million at December 31, 2025.

Business Segments and Product Lines:

• Products revenue for the three months ended September 30, 2026, was $3.05 million (up 2.2% from 2025), driven by increased chiller revenue offset by decreases in cogeneration and engineered accessories revenue.
• Services revenue for the three months ended September 30, 2026, was $4.46 million (up 13.2% from 2025), driven by acquired Aegis maintenance contracts and existing service contracts.
• Energy Production revenue for the three months ended September 30, 2026, was $0.36 million (up 42.0% from 2025), driven by improved site operations.
• Products revenue for the nine months ended September 30, 2026, was $5.36 million (down 38.2% from 2025), due to decreases in chiller, cogeneration, and engineered accessories revenue.
• Services revenue for the nine months ended September 30, 2026, was $13.47 million (up 10.9% from 2025), driven by existing contracts and acquired Aegis maintenance contracts.
• Energy Production revenue for the nine months ended September 30, 2026, was $1.12 million (up 20.9% from 2025), driven by improved site operations.
• The company developed an innovation allowing customers to use dual power source technology as a retrofit to existing chillers, dry coolers, and other loads in data centers or other facilities.

Market and Competitive Landscape:

• Demand for products is accelerating due to increases in utility rates and power shortages, particularly in large commercial, healthcare, and industrial facilities.
• The current backlog exceeds $8 million, with over 70% consisting of large property portfolio owners and energy services companies.
• Successful initial projects from the current backlog may open the door to significant additional business.

Management Commentary and Tone:

• CEO Abinand Rangesh stated that revenue increased substantially in the third quarter compared to the first two quarters of 2026 and Q3 2025.
• Management noted that operational improvements are taking effect, evidenced by a 7 percentage point increase in gross profit margin compared to the same period last year.
• Management highlighted a current cash position of $5.7 million with an additional $800,000 expected to be collected in the next two weeks.
• Management indicated plans to discuss the status of the data center pipeline and the pathway to closing deals during the conference call.

Other Key Points:

• The company acquired Aegis maintenance contracts, contributing to revenue growth in the Services segment.
• The company liquidated an investment in Aivita Group, generating proceeds of $96,464 during the nine months ended September 30, 2026.
• Weighted average shares outstanding increased to 30,185,254 (basic) for the three months ended September 30, 2026, from 28,817,040 in 2025.
• Stock-based compensation expense increased to $268,330 for the three months ended September 30, 2026, from $126,419 in 2025, and to $545,711 for the nine months ended September 30, 2026, from $209,858 in 2025.
• A conference call to discuss the results is scheduled for November 12, 2026, at 9:30 am ET.