10-K · June 25, 2026
Capstone delivered a meaningful FY2026 operating inflection, with revenue up 24%, gross margin up 5 percentage points to 32%, and GAAP net income of $2.8M versus a $7.2M loss. Growth was concentrated in North America…
Earnings analysis · 10-Q
CEPL earnings analysis
Filed August 12, 2026 · Our reading of the company's report
The latest report
The supplied extract does not include the condensed income statement, balance sheet, cash-flow statement, MD&A, or segment disclosures, so revenue, margins, EPS, liquidity, and cash-flow trends cannot be assessed. The…
Read full summary
The supplied extract does not include the condensed income statement, balance sheet, cash-flow statement, MD&A, or segment disclosures, so revenue, margins, EPS, liquidity, and cash-flow trends cannot be assessed. The quarter introduced a material CARB regulatory matter involving 27 units and potential penalties of $12,940 per day per violation. The filing also expands AI-related risk disclosure, noting 0 AI-infrastructure sales and increasing data-center regulation, while 2,019,812 warrant exercises created dilution without cash proceeds.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
What stood out
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Disclosure controls remained effective
Management concluded that disclosure controls and procedures were effective as of June 30, 2026, and reported no changes in internal control that materially affected, or were reasonably likely to materially affect, reporting controls during the quarter.
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Warrant exercises completed
The company reported cashless exercises of 2,019,812 pre-funded warrants, resulting in the issuance of 2,019,812 common shares; the company received $0 in proceeds.
What to watch
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New CARB regulatory violation
On August 4, 2026, CARB issued a Notice of Violation involving 27 distributed-generation units sold or leased for California use. The NOV states that civil penalties may reach $12,940 per day per violation, with no aggregate amount specified.
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AI strategy remains pre-revenue
The company newly highlights substantial uncertainty around its AI strategy: it has made 0 sales to AI-infrastructure clients, while competitors have already generated AI revenues. AI-related investments may therefore adversely affect operations before producing revenue.
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Data-center regulation threatens growth
New data-center restrictions could constrain the company’s AI opportunity. New York’s July 14, 2026 executive order bars construction of new hyperscale data centers using 50 megawatts or more for up to 1 year, while Texas officials called for blocking new rural data-center development on July 1, 2026.
Management's outlook
The supplied 10-Q extract contains no quantitative revenue or EPS outlook. Numeric outlook may be deferred to the earnings press release or conference call.
Earlier filings 4
10-Q · February 12, 2026
Capstone delivered strong third-quarter operating improvement: revenue rose 33% to $26.8 million, gross margin expanded 14 points to 39%, and net income was $1.2 million versus a $2.7 million loss. Product, parts and…
10-Q · November 13, 2025
Capstone delivered strong year-over-year operating improvement in the September quarter: revenue increased 25% to $28.4 million, gross margin improved 1 percentage point to 32%, and net income was $0.8 million versus a…
10-Q · August 8, 2025
Capstone posted a substantial year-over-year operating recovery: revenue increased 79% to $27.9 million, gross margin rose to 27%, and diluted loss per share narrowed to $0.04 from $0.21. Growth was led by $15.7 million…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.