Tecogen (TGEN) investor relations material

Executive summary

• Revenue grew 19.7% to $27.1M for FY 2025, driven by strong product sales and modest service growth, with significant investments in manufacturing, marketing, and service group expansion targeting the data center market.

• Net loss widened to $8.25M for FY 2025, reflecting higher operating expenses, increased labor and material costs, and a $1.11M goodwill and asset impairment.

• Cash position at year-end was $12.43M, supported by a $17.4M follow-on offering, with expectations to reduce cash burn starting Q2 2026.

• CEO highlighted expansion in data center opportunities, a growing Vertiv pipeline, and a new demonstration project expected to ship by end of Q2 2025.

Financial highlights

• Q4 2025 revenue decreased to $5.3M from $6.1M in Q4 2024, while annual revenue rose 19.7% to $27.1M.

• Gross profit for the year was $9.8M, nearly flat year-over-year, with gross margin declining to 36.3% from 43.6%.

• Operating expenses rose 25.4% to $18.07M, including a $1.11M impairment charge and higher costs in services and production.

• Adjusted EBITDA loss for 2025 was $5.64M, up from $3.63M in 2024.

• Net loss for Q4 increased to $4M from $1.1M year-over-year; annual net loss rose to $8.25M from $4.76M.

Outlook and guidance

• Expectation that the Vertiv demonstration project will catalyze broader adoption and unlock larger data center opportunities.

• Plans to reduce operating expenses to 2024 levels, with reductions starting in Q2 and expanding through Q4 2025.

• Anticipation of increased deliveries and order flow in Q2 2025, with both data center and non-data center projects converging.

• Management expects continued margin expansion in the service business and further development of data center opportunities.