Tantalus Systems (GRID) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenue of $15.4 million, up 18% year-over-year, with record trailing 12-month revenue of $60 million and expanding user community and deployments.

• Gross profit margin reached 55%, exceeding long-term targets, with gross profit up 22% and positive adjusted EBITDA of $690,000, up 35% year-over-year.

• Annual recurring revenue (ARR) reached $15 million, with a 19% CAGR since 2016 and recurring revenue representing 23% of Q2 revenue.

• Strong liquidity position with $41.3 million, including $29.3 million in cash and $12 million in available borrowing capacity.

• Expanded user community to 350 utilities, with 77 utilities placing orders for the TRUSense Gateway and 37 moving beyond pilots to deployments.

Financial highlights

• Q2 2026 revenue grew 18% year-over-year to $15.4 million; gross profit was $8.5 million with a 55% margin.

• Connected devices revenue was $10.4 million, software/services revenue was $5 million; software/services segment margin was 78%.

• Adjusted EBITDA was $690,000 (+35% year-over-year); Q2 net loss was $1 million (vs. $903,000 loss prior year).

• Trailing 12-month revenue reached $60 million (+21% year-over-year); adjusted EBITDA $4 million (+40%), margin 6.7%.

• Recurring revenue for Q2 was $3.6 million, 23% of total revenue; trailing 12-month recurring revenue $14.7 million (25% of total).

Outlook and guidance

• Strong order pipeline and growing user community support confidence in multi-year growth.

• Eight utilities in active contracting, expected to convert before year-end.

• Investments in R&D and sales/marketing to continue, but OpEx expected to normalize after Q2 restructuring.

• Inventory build positions company to meet demand and protect margins through mid-2027.

• Commercialization of new products and analytics tools expected to drive further ARR and margin expansion.