Capstone Energy+ (CEPL) Q1 2027 earnings summary

Executive summary

• Achieved net income of $0.04 million for the quarter ended June 30, 2026, reversing a net loss of $0.7 million in the prior year, with improved gross profit and cost controls.

• Revenue declined to $24.9 million from $27.9 million year-over-year, mainly due to lower product shipments, reduced rental utilization, and lower U.S. and Canada sales, partially offset by growth in Latin America and Asia.

• Gross profit rose 16% to $8.8 million, with gross margin expanding to 35% from 27% year-over-year, driven by higher-margin microturbine system sales and cost reduction initiatives.

• Focused on expanding into AI and data center markets with new product development, including an 800-volt direct-current microturbine solution.

• Uplisted to Nasdaq Global Market under ticker CEPL on July 8, 2026, enhancing liquidity and governance.

Financial highlights

• Q1 revenue was $24.9 million, down from $27.9 million year-over-year, mainly due to lower product and rental revenues.

• Gross profit increased to $8.8 million, with gross margin rising to 35% from 27% year-over-year.

• Net income was $0.04 million, compared to a net loss of $0.7 million in the prior year.

• Adjusted EBITDA remained steady at $2.7 million for both Q1 FY27 and Q1 FY26.

• Cash and restricted cash rose to $32.3 million from $28.9 million at year-end.

Outlook and guidance

• Management expects continued growth in parts and services, with a focus on expanding EaaS offerings and AI/data center solutions.

• Strategic investments in technology and manufacturing are expected to support continued margin expansion and operational scalability.

• Commercial pipeline is growing, though deal closures are taking longer due to market dynamics and regulatory risks.

• Focus remains on profitable growth, margin improvement, and disciplined working capital management.

• Activity in major growth markets, especially Data Centers and Ports, is increasing.