Executive Summary

Q4 FY2025 revenue was $27.1M (+11% YoY) with gross margin expanding to 28% (vs ~11% YoY), delivering adjusted EBITDA of $2.8M and near-breakeven net loss of $0.1M; full-year FY2025 achieved the company’s first positive adjusted EBITDA, a notable milestone.
Strength came from product price increases, improved rental fleet utilization, and cost efficiencies; Europe remained soft due to restructuring hesitancy, while North America demand improved, including EaaS rentals.
Management reiterated focus on financial discipline (DFMA cost-out, OpEx control) and disclosed the SEC investigation was closed with no action; working to elevate stock to OTC QX and longer-term relist on a national exchange.
No formal numeric guidance provided; management pointed to similar near-term performance trends and order momentum, with tailwinds from IRA credits and oil & gas rentals utilization.

What Went Well and What Went Wrong

What Went Well

Gross profit surged to $7.5M and gross margin to 28% in Q4, driven by pricing actions, rental utilization, and operational cost efficiencies. “Price increases across the portfolio improved margins.”
Adjusted EBITDA turned positive at $2.8M in Q4 and $7.9M for FY2025, reflecting “financial and business discipline actions” and significant non-recurring addbacks that concluded in Q1 FY2026.
SEC investigation closed with no action, removing a key overhang; management emphasized disciplined execution and cultural revitalization positioning for sustainable performance.

What Went Wrong

Full-year revenue declined to $85.6M (from $91.2M) due to slow H1 product sales and European instability following restructuring; product/accessories mix fell to 47% of FY revenue (from 54% prior year).
Europe saw order softness (macro gas volatility, anti-gas stance), while deferred revenue dynamics and receivable write-offs reflected lingering post-restructuring and COVID-era impacts.
Tariffs (steel/aluminum) present a gross margin headwind on components; management is modeling scenarios, with potential offset from European competitor tariffs benefiting U.S.-made product positioning.

Financial Results

Quarterly Trend vs Prior Year and Estimates

Metric	Q2 2025	Q3 2025	Q4 2025
Revenue ($USD Millions)	$22.722	$20.148	$27.051
Gross Profit ($USD Millions)	$7.010	$4.994	$7.508
Gross Margin (%)	31%	25%	28%
Loss from Operations ($USD Millions)	$0.018	$(2.063)	$0.014
Net Income (Loss) ($USD Millions)	$(0.423)	$(2.704)	$(0.126)
EPS (Basic & Diluted, $USD)	$(0.02)	$(0.14)	$(0.01)
EBITDA ($USD Millions)	$1.704	$(0.748)	$1.769
Adjusted EBITDA ($USD Millions)	$3.834	$0.533	$2.829
Revenue Consensus ($USD Millions)	N/A*	N/A*	Unavailable*
EPS Consensus ($USD)	N/A*	N/A*	Unavailable*
Values retrieved from S&P Global.*

Q4 Year-over-Year Comparison

Metric	Q4 2024	Q4 2025
Revenue ($USD Millions)	$24.348	$27.051
Gross Profit ($USD Millions)	$2.574	$7.508
Gross Margin (%)	~10.6% (derived from )	28%
Net Income (Loss) ($USD Millions)	$(5.282)	$(0.126)
EPS (Basic & Diluted, $USD)	$(0.28)	$(0.01)
Adjusted EBITDA ($USD Millions)	$(0.772)	$2.829

Segment Breakdown – Q4

Revenue Category ($USD Thousands)	Q4 2024	Q4 2025
Product & Accessories	$15,643	$15,316
Parts & Service	$6,775	$7,711
Rentals	$1,930	$4,024
Total Revenue	$24,348	$27,051

KPIs

KPI	Q2 2025	Q3 2025	Q4 2025
Cash & Equivalents ($USD Thousands)	$2,713	$3,314	$8,671
Net Cash from Operations (period)	$0.9M (6M)	$2.2M (9M)	$7.7M (12M)
Deferred Revenue – Current ($USD Thousands)	$9,267	$15,332	$13,351
Adjusted EBITDA ($USD Millions)	$3.834	$0.533	$2.829

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q4	None provided	No formal guidance; management suggests similar near-term performance trends	Maintained (no guidance)
Gross Margin	FY/Q4	None provided	No formal guidance; margin supported by pricing and DFMA	Maintained (no guidance)
Adjusted EBITDA	FY/Q4	None provided	No formal guidance; discipline and cost-out underpin EBITDA	Maintained (no guidance)
EPS	FY/Q4	None provided	No formal guidance	Maintained (no guidance)
Capital Structure	FY2025–FY2026	N/A	Refinancing discussions for exit notes due 12/02/2025	N/A

Earnings Call Themes & Trends

Note: Q4 call transcript not available; Q3 transcript used, and Q4 press release commentary included. Q4 call was scheduled for July 2, 2025.

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q4)	Trend
AI/data centers	Data centers seen as a “hot market” with blocks of power opportunities; hurdles remain; evaluating solutions for 15MW expansions and multi-year grid delays.	Not explicitly discussed in Q4 PR; focus on operational execution and margin.	Watchlist; opportunity developing
Supply chain & DFMA cost-out	DFMA initiative launched; example reduced dump valve assembly cost by 65–90%; cross-functional teams; commitment not to compromise reliability/quality.	Cost efficiencies and improved productivity cited as margin drivers; DFMA central to discipline.	Improving; structural
Tariffs/macro	Steel/aluminum tariffs are material headwinds; European tariffs could benefit U.S. competition positioning; monitoring scenarios.	Not explicitly reiterated; Europe weakness persisted from restructuring and macro instability.	Mixed; cost headwind vs potential competitive offset
Product performance/margins	Gross margin improved to 25% in Q3; price increases and mix drove gains; focus on product margin expansion via DFMA and absorption.	Gross margin expanded to 28%; stronger pricing, utilization, OpEx discipline.	Improving
Regional trends	North America orders ~10x other regions; IRA credits and grid constraints as tailwinds; Europe soft due to war/gas and anti-gas movement; Australia distributor pursuing alternative fuels.	YoY revenue up; commentary points to demand recovery and EaaS rentals strength; Europe still soft.	NA strength; EU softness
Regulatory/legal	OTC Pink trading initiated; application to move to OTCQX; SEC investigation closed with no action.	Pursuing OTCQX; long-term goal relist on Nasdaq; investigation closure removes overhang.	Improving market infrastructure
R&D/execution	Increased R&D spend to refresh electronics and design consolidation; focus on electronics.	Continued operational excellence and productivity improvements; pricing actions executed.	Steady investment

Management Commentary

CFO: “Fourth-quarter results… reflect the improvements in our services and rental business revenues, and lower costs of goods sold driven by our cost-out initiatives… strategic price increases across the portfolio improved margins.”
CFO: “The previously disclosed SEC investigation has been closed with no action taken by the SEC… focus on the strategic growth of the business.”
CEO: “In all of its 37-year history, the Company has never delivered a positive Adjusted EBITDA over a full fiscal year… steady improvements in financial health, operational excellence, and revitalization of our culture.”
Q3 CEO: North America orders surged; EaaS rentals had “very strong utilization rates” and price increases; adjusted EBITDA margin trending up via price stickiness and OpEx optimization.

Q&A Highlights

End-markets: Oil & gas is a current hotspot across rentals and new unit sales; data centers are a large opportunity with power blocks; electrification and EV charging seeing infrastructure constraints.
Margins & DFMA: Significant runway in product margin via DFMA and absorption; service/rentals margin improves with operational discipline; DFMA projects target non-powertrain components first to avoid reliability compromise.
Tariffs: Steel/aluminum tariffs are a COGS headwind; potential benefit from tariffs on European competitors’ finished goods in U.S.; active scenario modeling.
Capital & working capital: Refinancing discussions underway for $7.8M exit notes due 12/02/2025; receivables allowance reduced for remote collectability; deferred revenue increased with deposits reflecting improved order book.
Operations & lead times: Typical order-to-billing ~13–14 weeks; pushing suppliers to reduce extended COVID-era lead times; evaluating secondary market turbines for rental fleet conversion.

Estimates Context

Wall Street consensus EPS and revenue estimates for Q4 FY2025 appear unavailable due to limited coverage; no beat/miss determination can be made. Values retrieved from S&P Global.* [GetEstimates output]
Implication: Absent formal consensus, investor focus should center on sequential momentum (revenue +34% vs Q3, margin +300bps) and structural margin drivers (pricing, DFMA), rather than headline beat/miss optics.

Key Takeaways for Investors

Margin story improving: Q4 gross margin 28% and adjusted EBITDA of $2.8M reflect pricing actions, rental utilization, and DFMA; FY2025 delivered first full-year positive adjusted EBITDA.
Demand normalization: Sequential revenue acceleration (+$6.9M vs Q3) and deposits indicate order recovery; EaaS rentals utilization remains a lever for cash generation.
Legal/market structure de-risked: SEC investigation closure removes an uncertainty; OTCQX pursuit and eventual relist aim to broaden investor base and liquidity.
Watch tariffs and Europe: Component tariffs can pressure COGS; Europe demand remains soft; U.S. manufacturing base and potential tariff asymmetries may aid competitiveness domestically.
Capital considerations: Exit notes refinancing in process; improving operating cash flow ($7.7M FY) and DFMA cost-out support liquidity; monitor receivables and deferred revenue conversion.
Near-term trading: Narrative catalysts include margin expansion, adjusted EBITDA inflection, SEC closure, and OTCQX progress; absence of formal guidance may shift focus to operational execution and order momentum.
Medium-term thesis: Structural margin improvements via DFMA and absorption, EaaS growth, NA tailwinds (IRA, grid constraints), and portfolio additions (transactional cleantech products) can underpin sustained profitability.

Citations:

Q4 FY2025 8-K and press release:
Q3 FY2025 8-K and press release:
Q3 FY2025 earnings call transcript:
Q2 FY2025 8-K and press release:
Q1 FY2025 8-K and press release:
Q4 relevant press release: Board appointment (Q4 window):

Estimates note: Values retrieved from S&P Global.*

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