Key Points
-
Interested in Tantalus Systems Holding Inc.? Here are five stocks we like better.
-
Record revenue and improved profitability: Second-quarter revenue rose 18% year over year to $15.4 million, while adjusted EBITDA increased 35% to $690,000. Recurring revenue reached $3.6 million for the quarter, with annual recurring revenue up 13% to a record $15 million.
-
TRUSense Gateway adoption accelerated: Orders came from 77 utilities, including 37 that had moved beyond pilots into scaled deployments. The company had shipped about 6,200 gateways, with aggregate orders approaching 30,000 units.
-
Liquidity strengthened despite working-capital cash use: Tantalus ended the quarter with approximately $41.3 million in liquidity and no debt maturities over the next three years. A refinancing lowered average term-loan interest below 6%, while inventory investments and deferred-revenue seasonality contributed to $5.7 million in quarterly operating cash use.
Tantalus Systems (TSE:GRID) reported record second-quarter revenue as utilities increased spending on distribution-grid modernization, while the company expanded adoption of its TRUSense Gateway platform and strengthened its liquidity position.
Revenue for the quarter ended June 30 rose 18% year over year to $15.4 million, according to President and Chief Executive Officer Peter Londa. First-half revenue reached $30 million, while trailing-12-month revenue was approximately $60 million. The company reported gross profit margin of about 55% and adjusted EBITDA of $690,000, up 35% from the prior-year quarter.
→ No Hangover: Revisiting Microsoft One Week After Earnings
“The second quarter demonstrated growth across both our connected devices and infrastructure and our utility software applications and services segments while improving the overall quality and visibility of our revenue,” Chief Financial Officer Azim Lalani said.
Segment Growth and Recurring Revenue
Connected devices and infrastructure revenue was $10.4 million in the second quarter, up $1.6 million year over year. Software and services revenue increased $770,000 to $5 million. Lalani said growth reflected expanding deployments among existing customers, additions of new utilities, continued TRUSense Gateway adoption, and higher software and maintenance revenue.
→ MarketBeat Week in Review – 08/03 – 08/07
Recurring revenue rose to approximately $3.6 million, representing 23% of quarterly revenue. Annual recurring revenue, measured on a forward-looking 12-month basis, reached a record $15 million, up 13% from a year earlier. On a trailing-12-month basis, recurring revenue increased 16% to $14.7 million, or about 25% of total revenue.
