Capstone Energy+ Gross Margin Reaches 35% on Mix Shift
Gross profit rose 16% to $8.8 million in the fiscal first quarter ended June 30, 2026, as the company swung to $1.0 million of operating income.
Capstone Energy+, Inc. (CEPL), a provider of behind-the-meter microturbine energy systems, reported gross profit of $8.8 million for the fiscal first quarter ended June 30, 2026, up 16% from $7.6 million a year earlier, as gross margin expanded 800 basis points to 35% from 27%.
The margin improvement primarily reflected a favorable product mix, including the sale of previously rented microturbine systems, continued cost-reduction initiatives, and a contribution from Distribution Services revenue. Income from operations was $1.0 million, compared with a loss from operations of $0.2 million in the year-ago quarter.
Revenue was $24.9 million, down from $27.9 million a year earlier. The decline reflected the timing of large product orders, project milestones and shipment schedules, as well as lower rental utilization amid uncertainty surrounding oil prices. Product and accessories revenue was $13.0 million, versus $15.7 million a year earlier. Rentals were $2.2 million, versus $4.2 million. Parts and Service revenue increased 21% to $9.7 million, partially offsetting the overall revenue decline.
Net income was approximately $0.04 million, compared with a net loss of $0.7 million a year earlier. Reported net loss per share was $0.03, versus $0.04. The net loss attributable to common stockholders included a $1.0 million non-cash adjustment related to the accretion of the Operating Subsidiary’s Preferred Units despite operating net income. Adjusted EBITDA was $2.7 million for each of the two fiscal first-quarter periods.
Cash generation turned positive. Net cash provided by operating activities was $5.4 million, compared with net cash used in operating activities of $1.6 million a year earlier. Cash and restricted cash totaled $32.3 million at June 30, 2026, versus $28.9 million at March 31, 2026. Operating cash flow benefited from a $3.7 million customer deposit associated with an order scheduled for delivery at the end of the fiscal year.
President and Chief Executive Officer Vince Canino said the company continued to demonstrate improvement in underlying earnings power even as quarterly revenue was affected by the timing of large product shipments and lower rental-fleet utilization. He said the company expanded gross margin by 800 basis points year over year, generated positive operating income, and produced $5.4 million in operating cash flow.
After quarter-end, Capstone Energy+ commenced trading on the Nasdaq Global Market under the ticker CEPL on July 8, 2026, after previously reporting as OTCQX-listed CGEH. The listing broadens access to institutional investors and enhances visibility with the investment community.
Recent orders disclosed after the quarter included a combined heat and power project for a Utah hospitality destination using two C800 Signature Series microturbines, a follow-on order from Chilean state-owned energy company ENAP that will expand the Capstone-powered system at the Gregorio Refinery from 1.4 MW to 2.2 MW, a 36-month lease-to-own C600 flare-gas recovery project in Gabon for Maurel & Prom, and a 2 MW CHP installation at Scripps Mercy Hospital San Diego using two C1000 Signature Series units.
Canino said activity during and after the quarter demonstrated the breadth of the markets the company can serve, citing healthcare, hospitality and flare-gas recovery. He said priorities for the balance of fiscal 2027 focus on activity in Major Growth Markets, in particular data centers and ports, and that activity has steadily increased over the prior quarter.