TGEN · Tecogen Inc.

Tecogen Inc. reported first quarter 2026 results showing revenues of $6.34 million, down 12.9% from $7.28 million in Q1 2025, primarily due to a 53.6% decline in Products segment revenue to $1.18 million from decreased chiller and cogeneration shipments. Services revenue grew 9.2% to $4.64 million from existing contracts, while Energy Production rose 5.0% to $0.52 million on higher run hours. Gross profit fell to $2.59 million with a margin of 40.9% versus 44.3% prior year, impacted by lower Products volume and higher Services labor/material costs, though CEO Abinand Rangesh noted gross margins expanded to over 40% from year-end and further cost reductions are underway with full impact in Q3. Operating expenses rose 23.9% to $4.73 million, driven by higher G&A including R&D for hybrid-drive chillers, leading to operational loss of $2.14 million and net loss of $2.12 million or $0.07 per share, versus $0.66 million loss prior year. Adjusted EBITDA was negative $1.68 million. Balance sheet shows $9.33 million cash at quarter-end. Management emphasized strategic progress in data centers, with imminent purchase order from Vertiv for 1MW chiller permanent deployment to demonstrate technology, factory demos for prospects, and >$8 million pipeline including $2.3 million secured with deposits. CEO expects lower cash burn from cuts and deposits, plus incremental orders from power constraints beyond data centers.