Earnings call transcript: Capstone Green Energy sees revenue surge in Q1 2025

Capstone Green Energy Corp (CPST) reported a significant increase in revenue for the first quarter of 2025, with total revenue climbing 78% year-over-year to $27.9 million. The company also improved its gross margin to 27% from 24% in the previous year. Despite a net loss of $698,000, Capstone’s adjusted EBITDA remained positive for the fifth consecutive quarter at $2.7 million. The company is optimistic about surpassing $100 million in revenue for the full year. The stock has shown strong momentum, gaining 20.85% over the past year and currently trading near its 52-week high of $17.71. According to InvestingPro data, the company maintains a "GOOD" Financial Health Score of 2.96, suggesting solid operational fundamentals.

Key Takeaways

• Total revenue increased by 78% year-over-year to $27.9 million.
• Gross profit doubled, improving to $7.6 million.
• Capstone maintained positive adjusted EBITDA for the fifth consecutive quarter.
• The company expects to exceed $100 million in revenue this year.
• Ongoing support from Goldman Sachs and potential tax incentives could drive future growth.

Company Performance

Capstone Green Energy demonstrated strong performance in Q1 2025, highlighted by a significant year-over-year revenue increase and improved profitability metrics. This growth was driven by a 190% surge in Systems revenue and a 77% rise in its Energy as a Service business. The company’s strategic focus on operational efficiency and lean manufacturing appears to be paying dividends, positioning it well within the distributed generation market.

Financial Highlights

• Revenue: $27.9 million, up 78% from the previous year.
• Gross profit: $7.6 million, a twofold increase year-over-year.
• Gross margin: 27%, up from 24%.
• Adjusted EBITDA: $2.7 million, maintaining a positive trend for five quarters.
• Net loss: $698,000, an improvement of $3.2 million.

Outlook & Guidance

Capstone Green Energy remains optimistic for the remainder of the year, projecting full-year revenue to exceed $100 million. The company is planning an investor roadshow and expects to address its $8 million short-term debt by December. The acquisition of Cal Microturbine distributor and lean manufacturing initiatives are expected to enhance production capacity with minimal capital expenditure. The company’s YTD price return of 12.04% reflects investor confidence in its growth strategy. Want to discover more investment opportunities? InvestingPro offers exclusive analysis and advanced screening tools to help identify promising stocks in the renewable energy sector.

Executive Commentary

CEO Vince Cannino emphasized the company’s resilience and strategic focus during the earnings call. "We are building a business that’s resilient to any administration and its policies," he stated, highlighting Capstone’s adaptability. Cannino also underscored the importance of company culture as a foundation for sustainable success, saying, "Our culture will be the foundation of our sustainable success."

Risks and Challenges

• Supply chain disruptions could impact production capabilities.
• Market saturation in key regions may limit growth potential.
• Macroeconomic pressures could affect customer spending and order volumes.
• The company’s ability to manage its short-term debt remains a concern.
• Competitive pressures from other energy companies may challenge market share.

Q&A

During the earnings call, analysts inquired about the company’s distributor sales strategy and the potential impact of tax incentives on customer adoption. Capstone confirmed ongoing support from Goldman Sachs and expressed excitement about opportunities arising from the Cal Microturbine acquisition. The company remains confident in its ability to capitalize on emerging market trends and growth opportunities.

Full transcript - Capstone Green Energy Corp (CGRN) Q1 2026:

Conference Operator: Thank you for holding and please remain on the line. The Capstone Green Energy conference call will begin shortly. Thank you for your patience. Good day, ladies and gentlemen, and welcome to your Capstone Green Energy Earnings Conference Call and Webcast for the Financial Results for the First Quarter Fiscal Year twenty twenty six ended on 06/30/2025. All lines have been placed in a listen only mode, and there will be a question and answer session following the presentation.

As a reminder, today’s program will be recorded. At this time, it is my pleasure to turn the floor over to miss Janet Duderstadt, Capstone’s general counsel. Janet, the floor is yours.

Janet Duderstadt, General Counsel, Capstone Green Energy Holdings Inc.: Thank you very much. Good afternoon and thank you for joining Capstone Green Energy Holdings Inc. First quarter fiscal year twenty twenty six earnings conference call. On the call with me today are Vince Cannino, the company’s President and Chief Executive Officer and John Jurick, the company’s Chief Financial Officer. On August 8, Capstone Green Energy Holdings Inc.

Issued its earnings release for its first quarter fiscal year twenty twenty six financial results, which ended 06/30/2025. During today’s call, we will be referring to slides that can be found on the company’s website under the Investor Relations section. This conference call contains forward looking statements representing the company’s views as of today, 08/15/2025. Other than as required by federal securities laws, the company disclaims any obligation to update or revise these statements to reflect future events or circumstances. You should not place undue reliance on these forward looking statements because they involve known and unknown risks, uncertainties and other factors that are in some cases beyond our control.

Please refer to the Safe Harbor provisions set forth in slide two of the accompanying presentation in today’s earnings release and in Capstone’s filings with the Securities and Exchange Commission for information concerning factors that could cause actual results to differ materially from those expressed or implied by such statements. Please note that as Mr. Cannino and Mr. Jurick go through the discussion today, when they mention EBITDA, they are referring to adjusted EBITDA, which is a non GAAP financial measure. The reconciliation to net loss can be found in the earnings release and the appendix to the presentation slides.

I would like to now turn the call over to Vince Cannino, the company’s President and Chief Executive Officer.

Vince Cannino, President and Chief Executive Officer, Capstone Green Energy Holdings Inc.: Thank you, Janet, and good afternoon, everyone. Thank you for joining today’s earnings call. In addition to reviewing our first quarter fiscal twenty twenty six results, we’ll also take this opportunity to highlight some of key achievements we have made so far this year, along with a candid look at the challenges we continue to navigate. We have made meaningful progress across several areas of the business and we are excited to share those updates with you today. If you turn to slide three, I would like to run through today’s agenda.

Today’s call will cover Capstone’s current business environment. Then I will turn it over to John Jurick for a detailed review of our Q1 fiscal year twenty six financial results. We will then discuss a milestone change to our business model. And as always, we will then conclude with questions from our investors and analysts. I do wish to remind you that today’s presentation includes an appendix which provides additional information for your review.

Let’s now move on to slide five to begin the discussion on Capstone’s business environment. We’ve just wrapped up a strong 2026, and the momentum is clear. This quarter reflects not only continued progress in operational discipline and performance, but also a meaningful step forward in the revenue generation. In fact, our Q1 revenue came in over $12,200,000 higher than the same period last year. That’s the result of steady improvements in bookings throughout fiscal twenty twenty five, which are now clearly showing up in our top line.

Let’s take a closer look at the performance by segment. Systems revenue was up 190% year over year. A key driver here was the successful delivery of a six megawatt order of CARB compliant units for a microgrid project at a recycling facility in California. Our Energy as a Service business also had a strong quarter, delivering a 77% year over year increase driven by improved utilization rates and stronger market pricing. This kind of performance was made possible by the improvements we’ve made in manufacturing and supply chain execution.

Those teams played a crucial role in enabling us to deliver reliably and at scale. Now let’s shift to profitability. We delivered an adjusted EBITDA of nearly 2,700,000 this quarter, a $2,000,000 improvement over the $700,000 we posted in 2025. And we did this while managing through tariff impacts and ongoing market volatility. But here’s what really stands out.

Q1 marks our fifth consecutive quarter of positive adjusted EBITDA. That is a historic achievement for Capstone. Over these five quarters, we’ve now generated more than $10,000,000 in adjusted EBITDA with three of those quarters delivering well above $2,700,000 each. This consistency demonstrates that our three pillars of strength strategy is working. More importantly, it shows we built a team that thinks proactively, adapts quickly, and executes with discipline even in challenging market conditions.

Looking ahead, we are entering a phase that Capstone has never seen before, one marked by real sustained profitability. And this level of performance doesn’t just fuel growth. It gives us the ability to reinvest in our technology, expand and refine our operations, and strengthen our sustainable competitive advantage, ultimately creating long term confidence among our shareholders. Now on to slide six. Over the trailing twelve months, we’ve continued to build momentum in bookings.

During that time, we secured 41 megawatts of orders, totaling 126 units across 19 different countries. That’s meaningful global traction. Our book to bill ratio measured in megawatts came in at 1.32 over the trailing twelve months, a strong indicator of healthy demand and strengthening backlog. As expected, North America remains our largest contributor, representing 62% of the total bookings. That said, we are also seeing encouraging growth signals from both South America and Europe, a positive trend we will continue to monitor.

In 2026, we delivered over $13,000,000 more in bookings compared to 2025. But remember, at that time, we were still feeling the Chapter 11 hangover effects. Interestingly, unit volumes were roughly the same, which tells us we had a stronger mix of big box units in ’26. That’s yet another sign that the distributed generation market is gaining strength, largely driven by capacity constraints across the grid. To stay ahead of this momentum, we’ve developed a pipeline management tool that helps us track and forecast full year performance against our annual revenue goals.

Here’s how it works. First, it captures year to date revenue and adds it to the revenue from our convertible backlog. Convertible backlog is calculated by applying our projected backlog conversion rate, or BCR, against the current fiscal year backlog. Then, we subtract the year to date revenue and convertible backlog revenue from our annual target, thus giving us the remaining Go Get revenue needed to meet our goal. We compare that number to our high confidence pipeline and apply historical win rates to answer two key questions.

One, do we have enough pipeline coverage to hit our full year target? And two, what is the monthly order pace required through mid January to generate enough revenue from convertible bookings for the fiscal year? This tool is reviewed in our weekly priority meetings, yet another example of the business discipline and operational rigor we are embedding in our daily execution. This level of visibility and discipline gives us the confidence that we’re not just chasing growth, we are managing it strategically. Let’s move on to the next slide.

I’d like to take a moment to talk about tariffs on slide seven, not just how they impacted our financials this quarter, but more importantly, how they’ve helped shape our strategy going forward. While a significant portion of the components used in our products are sourced from The US, we also rely on low cost country strategies and European suppliers for certain parts. The recent tariff changes had a real impact on our bottom line. Some of our non US suppliers were unable to absorb the increases, which ultimately eroded an estimated $400,000 in potential profit this quarter. But here’s the silver lining.

These challenges pushed us to look harder and smarter at ways to optimize our landed component costs. We took action. We developed dual and even triple sourcing strategies with comparable landed costs that not only reduce exposure but also increase scalability and resilience. One important point I want to emphasize is this. We are building a business that’s resilient to any administration and its policies.

Governments will always act in the best interest of their constituents, and rightly so. Our job is to build a company that delivers value regardless of those changes, one that can withstand volatility and adapt quickly as market dynamics evolve. And I am proud to say we are building that kind of team and that kind of company. Tariffs will always be part of global commerce. As shown in the chart on this slide, they’ve historically and consistently shifted over time, and they will continue to do so.

Our role as a business is to be able to bend, not break, to navigate these headwinds with disciplined strategy and resilience. Let us take a moment to spotlight yet another successful DFMA initiative on slide eight. This one focused on the battery enclosure. This enclosure is critical. It houses the batteries that support our onboard inverter based technology.

These batteries play two key roles. They enable startup when the grid isn’t available and they stabilize power delivery by buffering voltage and current swings at the customer site. That said, the original cost of this enclosure was high, about $900 per unit, sourced from a local supplier in California. So we asked the question, can we do better? Using our DFMA process, we ran a should cost analysis and discovered we are paying far above what the part should realistically cost.

Our supply chain team went to work engaging international suppliers and ultimately partnered with one who not only beat the should cost target, but also optimized material and labor cost, streamlined production and reduced shipping costs by maximizing 40 foot container loads. All of this added up to a new price of just $350 per unit. That’s a 61% cost savings. And it’s fully loaded. Materials, labor, logistics, and even tariffs as of August 2025 are all accounted for.

Just as important, this savings was achieved before we made any changes to simplify the part design or reduce part count. Looking ahead, phase two of this DFMA project will target exactly that design simplification and part count reduction. And because each C1000 system requires 10 of these enclosures, the financial impact here is significant. This is a textbook example of how DFMA thinking plus global sourcing plus commercial rigor translates into real savings without compromising quality or performance. Now, I would like to turn the call over to John Jurick.

John Jurick, Chief Financial Officer, Capstone Green Energy Holdings Inc.: Thank you, Vince, and good morning, everyone. Capstone continues to improve its financial health, now reporting five consecutive quarters of positive adjusted EBITDA. The resilience of the business, the evolving dynamics in the power markets, and the commitment from our employees and distributors have changed the trajectory of Capstone. The company, its distributors and employees are poised to deliver solutions to solve the power needs globally. Now let me discuss the company’s financial results for the 2026.

Moving to slide 10, you will see the summary financial results for the first quarter. Total revenue was $27,900,000 compared to $15,600,000 for the 2025. This represents a 78% increase to the top line. The revenue growth came from nearly a 2x increase in product and accessory sales and a 77% increase in rental activity for the three months ended 06/30/2025 versus the same period ended 06/30/2024. The improvement in product and accessory sales reflects the change in customer sentiment for Capstone products following the restructuring and the resilience and adaptability of the Capstone product to meet the changing market demands.

Rental revenue improved 77% to $4,300,000 mainly on demand for remote power in the oil and gas space. Revenue from product and services remained steady on a quarter over quarter basis. The effect of the top line improvement delivered a gross profit of $7,600,000 for the three month period ending 06/30/2025, versus $3,800,000 for the period ending 06/30/2024. The current quarter’s gross profit was 2x better than that of the prior year and delivered a gross margin of 27% versus 24% for the period ended 06/30/2024. The gross profit dollars and margin improvements reflect the effects of the sales mix, strategic price increases, improved utilization rates, and ongoing cost savings from our DFMA initiatives.

Research and development expenses of $800,000 for the three months ended 06/30/2025, was an increase of 49% from the three months ended 06/30/2024. R and D expenses were 3% of revenues for the current quarter. The increase in R and D expenses reflects the ongoing efforts towards cost out initiatives and new technology development. SG and A expenses of $6,900,000 in the 2026 increased $138,000 from the same quarter of the prior year and are 25% of revenue. Included in the 2026 was $321,000 of accrued AIP bonuses and $349,000 of stock based compensation expense.

Non recurring expenses for the three months ended 06/30/2025 were $1,100,000 versus $2,600,000 for the three months ended 06/30/2024, a reduction of 1,500,000.0 Net loss for the period was $698,000 which is a $3,200,000 improvement from the first quarter loss of fiscal year twenty twenty five of $3,900,000 The improved financial performance delivered adjusted EBITDA of $2,700,000 for the current quarter. These numbers reflect the impact of the business improvements that have been driven across the organization. Now let’s turn to slide 11 for a review of select balance sheet items. Cash and cash equivalents at 06/30/2025, were $6,600,000 a decrease of $2,000,000 from 03/31/2025. The decrease was primarily caused by use of cash and operating activities of $1,600,000 Accounts receivable net of allowances were $10,700,000 an increase of $3,700,000 versus 03/31/2025, by the timing of sales activity in the quarter.

Total inventories were $19,700,000 and declined $400,000 from 03/31/2025. This was from the operational discipline efforts focused on supply chain efficiencies and inventory turns. Lastly, accounts payable and accrued expenses were $16,800,000 at 06/30/2025, a $1,300,000 increase from 03/31/2025, resulting from the level of business activity in the quarter. Lastly, I would just like to mention that the effort to position the stock on the OTCQX market and correct the company name linked to the ticker symbol is ongoing, and we expect to have a full resolution in the near term. FINRA has corrected the name linked to the ticker symbol, and it is now displayed correctly on the OTC Market platform.

Other platforms should pick up the correction in their normal update cycles. With that,

Vince Cannino, President and Chief Executive Officer, Capstone Green Energy Holdings Inc.: I will turn the presentation back to Vince. Thank you, John. Let’s move to slide 13. Here, I’d like to discuss a strategic milestone for Capstone. On Wednesday, August 13, we made a fundamental shift in our business model by acquiring our longtime distributor Cal Microturbine, which covered key states like California, Hawaii, Nevada, Idaho, Washington, Oregon.

Now, to be clear, this move does not signal the end of our distribution model. Many of our distributors are longstanding partners, some for over twenty years, and continue to provide valuable turnkey solutions and local expertise. But this acquisition was a strategic decision. One of the limitations of a traditional distribution model is that the OEM can lose direct connection to both the market pulse and, more importantly, the voice of the end customer. This move allows us to change that.

We’ve begun to make a smooth transition of Cal Microturbine’s employees and customer base, and we’re making additional investments to fuel growth across what we now call the Capstone West Territory. Let’s take a closer look at the Capstone West Territory. This territory is truly one of the richest regions in The U. S. For distributed generation growth.

It is a cluster of states with some of the highest electricity prices, most aggressive clean energy goals, and or growing demand for energy resiliency. One of the major advantages here is the presence of very high spark spreads, which is a key driver for customers looking to improve energy economics with microturbines and other distributed generation solutions. What makes this territory even more attractive is that it’s loaded with vertical markets where we perform best. Why is this so exciting? Because this region, especially California, represents the number one market for distributed generation in The U.

S. It’s a perfect storm of favorable conditions. High electricity prices, frequent public safety power shutoffs, aggressive net zero goals for 02/1945, leading incentive programs like SGIP, and strong adoption of solar plus storage and other microgrid technologies. In short, this region checks all the boxes: favorable economics, high energy demand, and industry diversity. This acquisition gives us a platform to capitalize on those opportunities.

We are building a strong team of sales and service professionals under the Capstone West territory banner, ensuring we provide exemplary service to existing customers while also growing the installed base. In short, this move is about deepening the market insights and accelerating growth in some of the most exciting DG markets in The U. S. With that, we’d now like to move to the Q and A session. Kim, could you please queue up the first submitted question?

Kim, Moderator/Questioner: Thank you, Vince. Would like to call out this question in particular. This one is for John. Is Goldman Sachs still supporting Capstone? John, could you answer that for us?

John Jurick, Chief Financial Officer, Capstone Green Energy Holdings Inc.: Yes, Kim, thank you. Just recently in the past several weeks, Goldman Sachs has worked very closely with Capstone in support of the Cal Microturbine transaction, demonstrating their continued support for Capstone and the growth of the Capstone business.

Kim, Moderator/Questioner: Excellent. This question is now for Vince. How many C1000s would be needed for a small data center?

Vince Cannino, President and Chief Executive Officer, Capstone Green Energy Holdings Inc.: Well, it depends on the data center actually. But one of the things that we are looking at is our C1000 can work very nicely when a data center maybe needs two, four, six, eight, 10 megawatts. But if we really get into the intricacies of data centers and how they operate and what they call blocks of power, we now have a new design that’s geared towards handling two and a half megawatts of blocks because that’s a typical block of power. And so, one data hall will typically be between ten and twelve megawatts of that power load.

Kim, Moderator/Questioner: Excellent. So, the next question I’m gonna pose to you as well, Vince. Can Capstone get financing for expanded production?

Vince Cannino, President and Chief Executive Officer, Capstone Green Energy Holdings Inc.: Well, interestingly enough, we are currently running at about 12% of our capacity just on a first shift basis. We’ve recently, through our VP of Operations, John Tore, has been going through a whole new floor layout. And through that lean manufacturing process, we are now going to be able to expand that capacity significantly more without very little CapEx investment. As a matter of fact, the little CapEx investment that we’re doing this year will get us almost 400 megawatts of capacity if we were to do that over three ships.

Kim, Moderator/Questioner: Excellent. This next question, I’m actually gonna toss to Victor Kong, who’s in the room with us. Victor, what is the status of the C250?

John Jurick, Chief Financial Officer, Capstone Green Energy Holdings Inc.: Hi, Kim. Yes, we are actually dusting off our prototype hardware from a few years ago, and we are excited to reassemble our development team. We’ve identified a program manager and off to the races with new technology.

Kim, Moderator/Questioner: Excellent. Thank you, Victor. The next question is going to be for John. Should the increase in AR be concerning?

John Jurick, Chief Financial Officer, Capstone Green Energy Holdings Inc.: Thanks, Kim. No, the increase in AR should not be concerning. What we’re seeing, as Vince mentioned, there was a very large sale to one customer here in the first quarter, six megawatts. The timing of those shipments resulted in an elevation of accounts receivable. Our accounts receivable is over 90% current.

Kim, Moderator/Questioner: Excellent. Thanks, John. This next one is aimed at you as well. Could you please answer this? The listener, question was, I noticed you didn’t speak to the twelve trailing months in revenue.

Can you tell us more of what that looks like?

John Jurick, Chief Financial Officer, Capstone Green Energy Holdings Inc.: Sure, yes. We did speak about the twelve trailing months. But when we look at our twelve trailing months of revenue, it sums to just over $97,000,000 which is showing a very strong upward trend. And we do expect to achieve over $100,000,000 in revenue this year.

Kim, Moderator/Questioner: Excellent. Thank you. Next one is for Vince. How are sales coming with the other distributors?

Vince Cannino, President and Chief Executive Officer, Capstone Green Energy Holdings Inc.: They’re strong. We see a really solid pipeline of what we call high confidence opportunities. We are seeing bigger blocks of power being ordered from a number of these distributors, so that’s very exciting. But we also still have a steady pace of our C65s as well. Oil and gas remains very strong, both in the rental side of the business as well as the new unit sales side of the business.

But we also see a lot of increased interest in the C and I space as well.

Kim, Moderator/Questioner: Excellent, thank you. So the next question is going to go to John. How confident is management that the $8,000,000 short term debt will be refinanced?

John Jurick, Chief Financial Officer, Capstone Green Energy Holdings Inc.: Kim, there’s efforts going on, multiple ways to address the $8,000,000 of debt. We have high confidence that that will be addressed prior to December.

Kim, Moderator/Questioner: Excellent, thank you. Vince, give us a forward progress report now that Kalamaker Turbine has been purchased.

Vince Cannino, President and Chief Executive Officer, Capstone Green Energy Holdings Inc.: Well, thanks, Kim. I’m actually going to turn it to Tracy Chibaten since she’s been heading up the transition of this Cal Micro. So, I’ll let Tracy speak to that, and then I’ll fill in the rest

Tracy Chibaten, Transition Lead, Capstone Green Energy Holdings Inc.: Thanks, Vince. We’re excited about the Cal Microturbine transition and the new opportunities it brings to Capstone. This marks a significant milestone in our growth, and we are confident it will strengthen our presence in the region. Our goal is to ensure a seamless experience for both our valued customers and the talented team members joining us through this transition. We look forward to building strong relationships, expanding our capabilities, and delivering even greater value across the region.

The opportunities ahead are promising, and we’re committed to making the most of them together.

Vince Cannino, President and Chief Executive Officer, Capstone Green Energy Holdings Inc.: So I’m going to follow on with a question for you, Traci. Since you’ve been in the thick of it with the transition of the CalMicro employees, how would you say that transition is going?

Tracy Chibaten, Transition Lead, Capstone Green Energy Holdings Inc.: Yeah, I’m really excited about this transition, and I’m getting the same feeling from them. We’ve had calls every day this week, and we will continue to do so. The goal is to build the relationships and make them ensure that they feel that they are part of this team and have all the resources, the tools, and the support from the factory to be successful at their jobs and to support their customers 100%.

Vince Cannino, President and Chief Executive Officer, Capstone Green Energy Holdings Inc.: Right. Now, I’m going to ask Ray Scholl, who’s our Director of HR. Anything else to add on

John Jurick, Chief Financial Officer, Capstone Green Energy Holdings Inc.: the transition, Ray? No. I mean, really only to double down on what Tracy just said, it’s been really successful so far and smooth sailing. It’s exciting to see how it’s unfolding this week.

Vince Cannino, President and Chief Executive Officer, Capstone Green Energy Holdings Inc.: Great. Thank you.

Kim, Moderator/Questioner: Excellent. So, will be a follow-up question directed to John. How will the California buyout of the distributorship affect the financials?

John Jurick, Chief Financial Officer, Capstone Green Energy Holdings Inc.: Thanks, Kim. So under our distributor model, we share profitability from the value chain between ourselves and our distributors. Capstone taking on the direct sales allows Capstone to capture 100% of that value chain in the region that it’s taking over. Of course, that will be offset by some additional operating cost in sales and service. However, net net, it will be an improvement in both gross profit and EBITDA.

Vince Cannino, President and Chief Executive Officer, Capstone Green Energy Holdings Inc.: While we’re at it, Kip, I’m going to just add on to what John is saying in terms of the financials. But one of the things we didn’t touch on, the other excitement as part of this acquisition, is the real opportunity that’s out there. And just looking at CalMicro’s current pipeline of opportunities, it’s pretty massive. It’s really exciting. And they’ve got a number of deals that are very close to closing that we’ll be taking over.

And then there’s more coming down the road. So what we’re seeing in this marketplace is exactly what we said before. It’s just a very exciting place to be when it comes to distributed generation.

Kim, Moderator/Questioner: Excellent. This next question I’m going to direct to you, Vince. Are you able to build a rental unit from trade in unit parts that would make for great margins?

Vince Cannino, President and Chief Executive Officer, Capstone Green Energy Holdings Inc.: Well, coming from different rental unit businesses back in my GE days and train days, I would tell you we have even a better advantage than all of those folks and even Agreco, and that is we make our own product. And the fact that then we can bring in different decommissioned units and take and remanufacture a number of those parts to build a rental unit, we get a doubling down effect. So where an Agreco or a Trane or even a GE, well, GE would buy gas turbines, but when they bought other equipment, they’re buying that at street price. So we’re not buying at street price, we’re buying at our cost. And then when we do remanufactured parts, which we are confident will still last long, which is really great for the rental business, we get it at an even lower basis.

So therefore, our margins are exactly that. They can be much better than what our competition can be at.

Kim, Moderator/Questioner: Excellent. Thank you, Vince. So the next question I’m gonna direct to John, John Jerick. Are any analysts showing interest in reinstating coverage?

John Jurick, Chief Financial Officer, Capstone Green Energy Holdings Inc.: We have been having discussions with several analysts. They have indicated that they are going to be examining the company much more closely, and should be we’re hopeful that they will be providing coverage in the near term.

Kim, Moderator/Questioner: Excellent. Thank you, John. I’m going to follow that up and I’ll take this question myself. Is, is Capstone planning a roadshow? And the answer is yes.

We’re going to be participating in the ROTH Conference in September, where we’ll be talking to investors. And that will be sort of our kickoff, to, you know, getting the team back out on the road and taking, meetings with investors, you know, participating and presenting at conferences. And of course, we’ll be doing webcasts, you know, on a regular routine basis on different various topics and, as well as lunch and learns. So we’re excited to get back out on the road, and we look forward to seeing each and every one of

John Jurick, Chief Financial Officer, Capstone Green Energy Holdings Inc.: you. Okay.

Kim, Moderator/Questioner: So the next question, I’m going to now turn to you, Vince. In full retroactive, expensing from the increasing new tax

Vince Cannino, President and Chief Executive Officer, Capstone Green Energy Holdings Inc.: orders. Well, we haven’t seen anything really as of yet. But when you look at the financial impact to a end user’s balance sheet, that is pretty significant. So we certainly would see that as a tipping point. If customers are looking at self generating, this is definitely a great opportunity to accelerate their depreciation and optimize their tax exposure.

Kim, Moderator/Questioner: Excellent. So, this last question I’m going to volley over to John. John, is the $10,000,000 incremental line of credit associated with the $8,000,000 short term debt currently available for use?

John Jurick, Chief Financial Officer, Capstone Green Energy Holdings Inc.: As it’s outlined in the debt agreement, it is a feature of the agreement. It’s still in the feature of that agreement is still in place. We are not actively looking to pursue drawing down that $10,000,000 at this time.

Kim, Moderator/Questioner: Excellent, thank you. And that concludes all the questions. I’ll turn the call back over to Vince.

Vince Cannino, President and Chief Executive Officer, Capstone Green Energy Holdings Inc.: Okay. Closing remarks? Well, look, it’s obvious we’ve come a long way this past year. The strides that we’ve made in just the last five quarters really have been truly transformational, not only in our financial performance, but also how we operate, lead and grow as a company. Now, to be clear, we haven’t resolved every issue on our balance sheet, but we do know where the gaps are.

And more importantly, we know what it’s going to take to close those gaps. The tailwinds for distributed generation and microgrids are undeniable. I think we all see that. The opportunity in front of us is very real and it’s ours to seize. So from here, it just comes down to execution.

It’s about following through on our commitments, owning our accountability, and delivering quarter after quarter. As challenges inevitably grow, so will we. Our culture will be the foundation of our sustainable success. It quite frankly is our edge. We must act despite fear.

We must set the tone, especially in tough times. We must listen well with intention and humility, and we must make courageous decisions. In short, we must be bold, resilient, and relentless. Simply put, what we have to be is badass. Thank you for your attendance.

Conference Operator: This concludes today’s conference, and you may disconnect your lines at this time. Thank you for your participation.

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