10-Q · May 13, 2026
In the first quarter of 2026, Tecogen reported revenues of $6.34 million, down 12.9% year-over-year, and an EPS loss of $0.07, which was better than analysts' estimates of a -$0.10 loss. The decline in revenues was…
Earnings analysis · 10-Q
TGEN earnings analysis
Filed August 13, 2026 · Our reading of the company's report
The latest report
Tecogen’s second-quarter revenue declined 21.2% year over year to $5.75 million as Products revenue fell 64.0%, overwhelming growth in Services and Energy Production. Gross margin improved 400 basis points to 37.8%, but…
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Tecogen’s second-quarter revenue declined 21.2% year over year to $5.75 million as Products revenue fell 64.0%, overwhelming growth in Services and Energy Production. Gross margin improved 400 basis points to 37.8%, but higher operating expenses drove the operating loss up 52.3% to $2.15 million and EPS was $(0.07). Liquidity weakened materially, with operating cash use of $5.46 million and cash declining 45.4% to $6.78 million in the first half. The data-center opportunity and $6.95 million backlog provide potential upside, but management acknowledged that additional capital may be needed.
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.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
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.
Reported figures
- Earnings per share
- $-0.07
What stood out
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Revenue Declined 21.2% Year Over Year
Quarterly revenue was $5,746,136, down $1,548,684 or 21.2% from $7,294,820 in the prior-year quarter. Six-month revenue was $12,081,905, down 17.1% year over year.
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Gross Margin Expanded 400 Basis Points
Gross margin improved to 37.8% from 33.8%, a 4.0 percentage-point increase, driven by higher Products margins. Products gross margin increased to 48.5% from 29.3% after 2026 price increases.
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Services Revenue Continued to Grow
Services revenue increased 10.3% to $4,375,253, including $247,989 from acquired Aegis maintenance contracts and $162,096 from existing contracts.
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Energy Revenue Increased on Better Site Operations
Energy Production revenue increased 35.4% to $236,111 due to improved site operations, although the segment recognized a $91,912 guarantee shortfall for the bi-annual period ended June 30, 2026.
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Product Backlog Was $6.9 Million
Product backlog excluding service contracts was $6,945,252 at June 30, 2026, consisting of $5,172,502 in purchase orders and $1,772,750 in projects with firm verbal commitments and allocated financial resources.
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Data-Center Commercialization Activity Increased
Management hosted 12 demonstrations of its dual-sourced air-cooled chiller for hyperscale data-center operators, contractors and partners during July and August 2026.
What to watch
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Sharp Products Revenue Decline
Products revenue fell 64.0% to $1,134,772, with chiller revenue down $1,331,654 and cogeneration revenue down $817,115. The decline drove the quarterly operating loss to $2,150,162, up 52.3% from $1,411,862.
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Operating Losses Expanded
Operating expenses increased 11.6% to $4,324,064, including a 13.6% increase in general and administrative expense to $3,510,850. The six-month operating loss increased 113.7% to $4,286,070.
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Cash Burn Reduced Liquidity
Cash used in operating activities increased to $5,461,566 in the first six months from $3,775,620 in the prior-year period. Cash and equivalents declined 45.4% to $6,782,573 from $12,430,287 at December 31, 2025.
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Potential Need for Additional Capital
Management stated that cash requirements are expected to increase and that additional debt or equity financing may be needed. The company reported a six-month net loss of $4,269,176 and an accumulated deficit of $60,157,825.
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Working Capital Absorbed Cash
Inventory increases used $1,077,960 of operating cash during the first six months, while deferred revenue declined to $4,176,508 from $4,796,863, using $620,355 of operating cash.
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Material Weakness Remains
Disclosure controls and procedures were not effective at June 30, 2026 due to a material weakness involving general information-technology controls affecting a small number of individuals. Management is implementing segregation-of-duties, system-access and review controls.
Management's outlook
No formal numeric guidance was provided. Management reported product backlog of $6,945,252 as of June 30, 2026 and stated that existing resources should meet working-capital requirements for the next twelve months, but expects cash requirements to increase and may need additional debt or equity financing to fund operations and data-center growth.
Earlier filings 4
10-K · March 19, 2026
Tecogen reported higher full-year revenue driven by product and services activity but ended 2025 with materially compressed margins and negative cash flow. The company is pivoting into AI data center cooling via a Feb…
10-K · March 18, 2025
Tecogen's 10-K (fiscal year ended Dec 31, 2024) shows a business positioned in distributed CHP, chillers and service annuities with a recently expanded service footprint (Aegis acquisition additions) and a new 2-year…
10-Q · August 8, 2024
Tecogen reported Q2 revenue of $4,727,787, down from $6,748,758 in Q2 2023, producing a gross profit of $2,079,155 and a loss attributable to Tecogen of $1,538,796 (EPS -$0.06). Cash declined to $841,913 at June 30,…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.