Tecogen

Q2 FY2026 EarningsQ2 FY26 results were mixed relative to consensus: revenue of $5.75M missed the $5.98M estimate, while EPS of -$0.07 beat the -$0.08 consensus due to superior margin execution. Gross margin of 37.8% slightly exceeded the 37.3% expectation, driven by a significant 19.2pct YoY expansion in Product margins following price increases. However, top-line pressure remains evident, with Product revenue declining 64% YoY, partially offset by 10.3% growth in Services. Management continues to pivot toward the AI data center market via the Vertiv partnership, though a 45.4% decline in cash reserves since year-end FY25 highlights ongoing liquidity risks.