Capstone Green Energy Reports Fourth Quarter and Full Fiscal Year 2025 Results, Achieves Historic Profitability Milestone
Capstone Green Energy Holdings, Inc. (PINK: CGEH), the successor to Capstone Green Energy Corporation, has reported its financial results for the fourth quarter and full fiscal year ended March 31, 2025. This marks a pivotal year for the company, showcasing a transformation driven by strategic discipline and operational excellence.
Capstone’s performance reflects the strength of its renewed Three Pillar Strategy: (1) bolstering financial health, (2) achieving sustainable operational excellence, and (3) revitalizing company culture and talent. These foundational principles have guided Capstone through a year of restructuring, rebuilding, and resetting expectations. The results reflect the impact of strategic changes and renewed commercial discipline.
Financial Overview: Fourth Quarter Fiscal 2025
For the fourth quarter of fiscal year 2025, Capstone reported revenue of $27.1 million, an increase of $2.8 million compared to $24.3 million in the fourth quarter of fiscal 2024. This year-over-year growth in quarterly revenue was driven by increased demand across its products and services portfolio and a notable uptick in rental utilization in its Energy-as-a-Service (EaaS) business line.
The improved rental business performance represents Capstone’s success in transitioning toward more predictable, recurring revenue streams. Notably, the company has capitalized on the increasing market demand for distributed clean energy and microgrid solutions that prioritize sustainability and resilience.
Gross Profit and Margin
Capstone achieved a gross profit of $7.5 million for Q4 FY25, up from just $2.6 million in the same period last year—an increase of $4.9 million. The gross margin for the quarter was 28%, a significant improvement from 11% in Q4 FY24.
This margin expansion was the result of several key drivers:
- Improved pricing for both product and rental services.
- Higher utilization of the rental fleet.
- Operational efficiencies driven by productivity gains and cost containment initiatives.
- A strategic focus on business discipline across all revenue categories, including rentals, service agreements, and spare parts.
Net Loss and Adjusted EBITDA
Capstone substantially narrowed its quarterly net loss to $0.1 million, down from a net loss of $5.3 million in Q4 FY24. The company also reported a positive Adjusted EBITDA of $2.8 million, reversing a negative Adjusted EBITDA of $(0.8) million from the previous year. This turnaround represents a $3.6 million improvement, driven by improved margin performance and a leaner cost structure.
Liquidity Position
As of March 31, 2025, Capstone held $8.7 million in cash, a significant increase of $6.6 million from the end of fiscal 2024. This improvement further underscores the success of the company’s efforts to enhance liquidity through disciplined cash management and operational improvements.
Full-Year Fiscal 2025 Performance
For the full fiscal year ended March 31, 2025, Capstone reported total revenue of $85.6 million, slightly below the $91.2 million reported in FY24. The year-over-year revenue decline of $5.7 million was attributed to weak product sales in the first half of the year, particularly in Europe. The company pointed to continued restructuring hesitancy and regional market instability as the key factors that dampened performance in that geographic segment.
Despite the revenue dip, Capstone significantly strengthened its gross profit, which increased to $23.3 million, up from $14.3 million in FY24. The gross margin expanded to 27%, compared to 16% in the prior year. This gain was largely due to a favorable shift in sales mix and the successful implementation of price increases across the product portfolio.
Revenue Composition and Sales Mix
Sales of products and accessories accounted for 47% of total revenue in FY25, down from 54% the prior year. This shift reflects the company’s strategic emphasis on growing its higher-margin, recurring revenue lines, including rental services and long-term service contracts.
The product line contraction, though a short-term headwind, aligned with Capstone’s transition toward more predictable and profitable revenue streams, which are less sensitive to macroeconomic fluctuations.
Net Loss and One-Time Gains
Capstone reported a net loss of $7.2 million for fiscal 2025. This compares to a net income of $7.4 million in FY24, which was bolstered by a $32.5 million net reorganization gain tied to restructuring activities. Excluding this one-time gain, the FY24 performance represented a significant operating loss. When adjusted for the non-recurring reorganization gain, the FY25 net loss improved by $17.9 million, reflecting stronger operational performance, lower interest and restructuring costs, and reduced total operating expenses.
Adjusted EBITDA and Operating Activities
For the year, Adjusted EBITDA reached $7.9 million, a dramatic turnaround from a $(0.5) million EBITDA loss in FY24. This figure included addbacks for shareholder litigation, SEC investigation costs, and restatement-related expenses—many of which concluded in Q1 FY26. These adjustments underscore the company’s path toward sustainable, normalized profitability.
Further, Capstone generated $7.7 million in net cash from operating activities for the twelve months ended March 31, 2025. This inflow was driven by improvements in working capital and the narrower net loss, reflecting progress in its financial health pillar.
Strategic Commentary and Outlook
Chief Financial Officer John Juric praised the company’s execution throughout fiscal 2025. “The Company has taken great strides over the past year. Our fourth-quarter results demonstrate the power of disciplined operations, improved service and rental revenue, and cost-saving initiatives,” said Juric. “The full-year results clearly show our focus on financial health with a $9.0 million increase in gross profit and a positive $7.9 million Adjusted EBITDA.”
He continued, “Looking ahead to fiscal 2026, our next strategic focus is uplifting Capstone’s listing status to the OTC:QX market, with a longer-term objective to relist on Nasdaq or a comparable national exchange. This will reflect the operational progress we’ve made and support investor confidence.”
Juric also noted the closure of the SEC investigation that had previously cast uncertainty over the company. “The SEC investigation concluded with no action taken, allowing us to now focus fully on strategic growth.”
CEO Perspective: A Landmark Year for Capstone
Capstone President and CEO Vince Canino called fiscal 2025 “historic” for the company, emphasizing the cultural and financial shift that took place.
“In all of Capstone’s 37-year history, we had never delivered a full fiscal year of positive Adjusted EBITDA—until now,” said Canino. “We have changed not only our financial trajectory but the entire culture of the company. The landscape of what Capstone can achieve has fundamentally shifted.”
Canino reiterated that Capstone’s emphasis on its Three Pillars—financial strength, operational excellence, and culture—has created a more agile, resilient, and mission-driven organization.
“With strong industry tailwinds, growing demand for distributed energy, and a track record of disciplined execution, we believe Capstone is poised for a new phase of expansion and leadership in the clean energy space,” he concluded.
