Tecogen (TGEN) investor relations material

Executive summary

• Q2 2026 revenues were $5.75 million, down 21.2% year-over-year, with net loss widening to $2.15 million from $1.46 million; six-month revenues were $12.08 million, down 17.1% year-over-year, and net loss increased to $4.27 million from $2.12 million.

• Product segment revenue declined sharply (down 64% in Q2), while Services and Energy Production segments grew (Services up 10.3%, Energy Production up 35.4%).

• Gross margin improved to 37.8% from 33.8% year-over-year, driven by higher product margins.

• CEO highlighted increased engagement with large data centers, hosting 12 product demonstrations representing 15–20% of US data center capacity.

• Non-data center backlog exceeds $8 million, with $2–3 million in additional projects expected to close soon.

Financial highlights

• Q2 2026 total revenues were $5.75 million, down 21.2% year-over-year, with gross profit of $2.17 million and gross margin of 37.8%.

• Operating expenses rose 11.6% year-over-year to $4.3 million, mainly due to manufacturing expansion, payroll, and R&D.

• Net loss for Q2 2026 was $2.15 million, EPS loss of $(0.07); six-month net loss was $4.27 million, EPS loss of $(0.14).

• Adjusted EBITDA loss for Q2 2026 was $1.68 million, compared to $1.16 million in Q2 2025.

• Cash and cash equivalents at June 30, 2026, were $6.78 million, with working capital at $15.81 million.

Outlook and guidance

• Revenue expected to increase in Q3, supported by growing backlog, anticipated project closures, and higher product revenue.

• Management is confident in converting recent high-profile data center interest into orders, with inventory being built to reduce lead times.

• Service margin expected to improve in Q3 due to cost reductions and pricing changes.

• Anticipates increased cash requirements for product development and market expansion; may seek additional capital.

• Backlog at June 30, 2026, was $6.95 million, up from $6.22 million a year earlier.