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Tecogen Reports
Third Quarter 2025 Financial Results

NORTH BILLERICA, Mass., November 12, 2025 - Tecogen Inc. (NYSE American:TGEN), a leading manufacturer of clean energy products, reported revenues of $7.18 million and net loss of $2.13 million for the quarter ended September 30, 2025 compared to revenues of $5.63 million, and a net loss of $0.93 million in 2024. Our cash and cash equivalents balance was $15.25 million at September 30, 2025.
Abinand Rangesh, CEO of Tecogen, commented that "since our last earnings call we have made tremendous progress. First, the potential data center customer we have an LOI from is now considering us for three sites and for a much larger portion of the AI load. This may result in significantly more chiller sales than the original LOI.

We have also now attracted the interest of bigger, more established data center developers. Many have multiple data centers in construction. The feedback from some of the larger developers is not only validating everything we've said to date, but that the power allocated to cooling is larger than we originally anticipated. We have also become aware of other benefits of our solution as a result of our discussions with larger developers. The Vertiv relationship has also taken a positive turn and is building momentum.

Last, we were able to present our solution to both of the big AI chip manufacturers and have received positive feedback.

We have also increased our R&D spend to push our technical edge in natural gas cooling and increase service intervals on our engines. This will be critical in data center applications where we might have a hundred engines in one location but will also be instrumental in increasing service margins fleet wide. To test our product improvements on a larger scale and to improve service margins, especially in NYC, we invested $700k in new engines this quarter. Although this impacts service margin substantially in the short term, it will more than pay for itself in longer term benefits.

During the call I will shed more light on next steps to convert our LOI with a data center developer to a PO, next steps with some of the larger developers, and recent developments in the Vertiv relationship."

Key Takeaways
Net Loss and Earnings Per Share
•Net loss for the quarter ended September 30, 2025 was $2.13 million compared to a net loss of $0.93 million for the same period of 2024, an increase of $1.20 million, due to decreased gross profit from our Services segment and an increase in operating expenses. EPS for the quarter ended September 30, 2025 and 2024 was a loss of $0.07/share and $0.04/share, respectively. The weighted average shares outstanding for the quarter ended September 30, 2025 and 2024 were 28,817,040 shares and 24,850,261 shares, respectively, reflecting shares issued in the July 2025 follow on offering.
•Net loss for the nine months ended September 30, 2025 was $4.25 million compared to a net loss of $3.57 million for the same period of 2024, an increase of $0.68 million, due to decreased gross profit from our Services segment and an increase in operating expenses. EPS for the nine months ended September 30, 2025 and 2024 was a loss of $0.16/share and $0.14/share, respectively. The weighted average shares outstanding for the nine months ended September 30, 2025
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and 2024 were 26,354,875 shares and 24,850,261 shares, respectively, reflecting shares issued in the July 2025 follow on offering.
Loss from Operations
•Loss from operations for the quarter ended September 30, 2025 was $2.10 million compared to a loss from operations of $0.87 million for the same period in 2024, an increase of $1.23 million, due to decreased gross profit from our Services segment and an increase in operating expenses.
•Loss from operations for the nine months ended September 30, 2025 was $4.11 million compared to a loss from operations of $3.40 million for the same period in 2024, an increase of $0.71 million, due to decreased gross profit from our Services segment and an increase in operating expenses.
Revenues
•Revenues for the quarter ended September 30, 2025 were $7.18 million compared to $5.63 million for the same period in 2024, a 27.6% increase.
◦Products revenues in the quarter ended September 30, 2025 were $2.98 million compared to $1.39 million for the same period in 2024, an increase of 114.5%. The increase in revenue during the quarter ended September 30, 2025 is due to increased sales of chillers, cogeneration products, and engineered accessories, which included deliveries of our hybrid-drive air-cooled chiller.
◦Services revenues in the quarter ended September 30, 2025 were $3.94 million, compared to $3.85 million for the same period in 2024, an increase of 2.4% due to increased revenues from existing service contracts.
◦Energy Production revenues in the quarter ended September 30, 2025 were $0.26 million compared to $0.39 million for the same period in 2024, a decrease of 34.2%. The decrease in Energy Production revenue is due to contract expirations at certain energy production sites in late 2024 and the temporary shutdown of a few energy production sites for repairs.

•Revenues for the nine months ended September 30, 2025 were $21.76 million compared to $16.54 million for the same period in 2024, a 31.5% increase.
◦Products revenues in the nine months ended September 30, 2025 were $8.67 million compared to $3.00 million for the same period in 2024, an increase of 188.9%. The increase in revenue during the nine months ended September 30, 2025 is due to increased sales of chillers, cogeneration products, and engineered accessories, which included the initial deliveries of our hybrid-drive air-cooled chiller.
◦Services revenues in the nine months ended September 30, 2025 were $12.15 million, compared to $11.99 million for the same period in 2024, an increase of 1.4% due to increased revenues from existing contracts, offset by decreased revenues from the acquired Aegis maintenance contracts.
◦Energy Production revenues in the nine months ended September 30, 2025 were $0.93 million compared to $1.55 million for the same period in 2024, a decrease of 40.1%. The decrease in Energy Production revenues is due to contract expirations at certain energy production sites in late 2024 and the temporary shutdown of a few energy production sites for repairs.

Gross Profit
•Gross profit for the quarter ended September 30, 2025 was $2.18 million compared to $2.48 million in the same period in 2024. Gross margin decreased to 30.4% in the quarter ended September 30, 2025 compared to 44.1% for the same period in 2024. The decrease in gross margin was due to higher material and labor costs in our Services segment in the quarter ended September 30, 2025.

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•Gross profit for the nine months ended September 30, 2025 was $7.87 million compared to $7.14 million in the same period in 2024. Gross margin decreased to 36.2% in the nine months ended September 30, 2025 compared to 43.1% for the same period in 2024. The decrease in gross margin was due to higher material and labor costs in our Services segment in the nine months ended September 30, 2025.

Operating Expenses

•Operating expenses increased $0.93 million, or 27.7%, to $4.28 million in the quarter ended September 30, 2025 compared to $3.35 million in the same period in 2024, due to increased payroll, benefits, recruitment costs, and sales commissions.
•Operating expenses increased $1.44 million, or 13.7%, to $11.97 million in the nine months ended September 30, 2025 compared to $10.53 million in the same period in 2024, due to increased payroll, benefits, recruitment costs and sales commissions.

Adjusted EBITDA
Adjusted EBITDA was negative $1.77 million for the quarter ended September 30, 2025 compared to negative $0.75 million for the quarter ended September 30, 2024. For the nine months ended September 30, 2025, adjusted EBITDA was a negative $3.31 million compared to negative $2.94 million for the nine months ended September 30, 2024. (Adjusted EBITDA is defined as net income or loss attributable to Tecogen, adjusted for interest, income taxes, depreciation and amortization, stock-based compensation expense, unrealized gain or loss on investment securities, goodwill impairment charges and other non-cash non-recurring charges or gains including abandonment of intangible assets and asset impairment. See the table following the Condensed Consolidated Statements of Operations for a reconciliation from net income (loss) to Adjusted EBITDA, as well as important disclosures about the Company's use of Adjusted EBITDA).
Conference Call Scheduled for November 13, 2025, at 9:30 am ET
Tecogen will host a conference call on November 13, 2025 to discuss the third quarter results beginning at 9:30 am eastern time. To listen to the call please dial (877) 407-7186 within the U.S. and Canada, or +1 (201) 689-8052 from other international locations. Participants should ask to be joined to the Tecogen Third Quarter conference call. Please begin dialing 10 minutes before the scheduled starting time. The earnings press release will be available on the Company website at www.Tecogen.com in the "News and Events" section under "About Us." The earnings conference call will be webcast live. To view the associated slides, register for and listen to the webcast, go to https://ir.tecogen.com/ir-calendar. Following the call, the recording will be archived for 14 days.
The earnings conference call will be recorded and available for playback one hour after the end of the call. To listen to the playback, dial (877) 660-6853 within the U.S. and Canada, or (201) 612-7415 from other international locations and use Conference Call ID#: 13752231.
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About Tecogen
Tecogen Inc. designs, manufactures, sells, installs, and maintains high efficiency, ultra-clean, cogeneration products including engine-driven combined heat and power, air conditioning systems, and high-efficiency water heaters for residential, commercial, recreational and industrial use. The company provides cost effective, environmentally friendly and reliable products for energy production that nearly eliminate criteria pollutants and significantly reduce a customer’s carbon footprint. In business for over 35 years, Tecogen has shipped more than 3,200 units, supported by an established network of engineering, sales, and service personnel in key markets in North America. For more information, please visit www.tecogen.com or contact us for a free Site Assessment.
Forward Looking Statements
This press release contains “forward-looking statements” which may describe strategies, goals, outlooks or other non-historical matters, or projected revenues, income, returns or other financial measures, that may include words such as "believe," "expect," "anticipate," "intend," "plan,"  "estimate," "project," "target," "potential," "will," "should," "could," "likely," or "may" and similar expressions intended to identify forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from those expressed or implied by such forward-looking statements. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to update or revise any forward-looking statements except as required under the securities laws.
In addition to those factors described in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q and in our Current reports on Form 8-K, under “Risk Factors,” and elsewhere therein, among the factors that could cause actual results to differ materially from past and projected future results are the following: fluctuations in demand for our products and services, competing technological developments, issues relating to research and development, the availability of incentives, rebates, and tax benefits relating to our products and services, changes in the regulatory environment relating to our products and services, integration of acquired business operations, the impact of tariffs, and the ability to obtain financing on favorable terms to fund existing operations and anticipated growth.
In addition to GAAP financial measures, this press release includes certain non-GAAP financial measures, including adjusted EBITDA which excludes certain expenses as described in the presentation. We use Adjusted EBITDA as an internal measure of business operating performance and believe that the presentation of non-GAAP financial measures provides a meaningful perspective of the underlying operating performance of our current business and enables investors to better understand and evaluate our historical and prospective operating performance by eliminating items that vary from period to period without correlation to our core operating performance and highlights trends in our business that may not otherwise be apparent when relying solely on GAAP financial measures.

Tecogen Media & Investor Relations Contact Information:
Abinand Rangesh
P: 781-466-6487
E: Abinand.Rangesh@tecogen.com

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TECOGEN INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
September 30, 2025December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents$15,253,975 $5,405,233 
Accounts receivable, net6,220,441 6,026,545 
Unbilled revenue126,738 398,898 
Inventories, net9,558,084 9,634,005 
Prepaid and other current assets918,835 680,565 
Total current assets32,078,073 22,145,246 
Long-term assets:
Property, plant and equipment, net1,788,248 1,738,036 
Right-of-use assets - operating leases1,610,839 1,730,358 
Right-of-use assets - finance leases1,305,353 452,390 
Intangible assets, net2,236,151 2,513,189 
Goodwill2,346,566 2,346,566 
Other assets99,058 166,474 
TOTAL ASSETS$41,464,288 $31,092,259 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Related party notes, current portion$— $1,548,872 
Accounts payable3,417,293 4,142,678 
Accrued expenses2,987,784 2,890,886 
Deferred revenue, current portion3,693,732 6,701,131 
Operating lease liabilities, current portion534,397 430,382 
Finance lease liabilities, current portion252,406 85,646 
Acquisition liabilities, current portion861,479 902,552 
Unfavorable contract liability, current portion73,368 113,449 
Total current liabilities11,820,459 16,815,596 
Long-term liabilities:
Deferred revenue, net of current portion1,189,074 1,165,951 
Operating lease liabilities, net of current portion1,126,695 1,341,789 
Finance lease liabilities, net of current portion934,109 325,235 
Acquisition liabilities, net of current portion816,951 1,008,760 
Unfavorable contract liability, net of current portion259,619 309,390 
Total liabilities16,146,907 20,966,721 
Commitments and contingencies
Stockholders’ equity:
Tecogen Inc. stockholders’ equity:
Common stock, $0.001 par value; 100,000,000 shares authorized; 29,818,979 issued and outstanding at September 30, 2025 and 24,950,261 shares issued and outstanding at December 31, 2024
29,819 24,950 
Additional paid-in capital78,090,221 57,845,289 
Unearned compensation(762,292)— 
Accumulated deficit(51,894,868)(47,639,894)
Total Tecogen Inc. stockholders’ equity25,462,880 10,230,345 
Non-controlling interest(145,499)(104,807)
Total stockholders’ equity25,317,381 10,125,538 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$41,464,288 $31,092,259 


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TECOGEN INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)

Three Months Ended
September 30, 2025September 30, 2024
Revenues
Products$2,983,795 $1,391,016 
Services3,943,510 3,850,551 
Energy production255,816 388,563 
Total revenues7,183,121 5,630,130 
Cost of sales
Products1,885,377 797,209 
Services2,946,438 2,139,042 
Energy production167,740 212,965 
Total cost of sales4,999,555 3,149,216 
Gross profit2,183,566 2,480,914 
Operating expenses:
General and administrative3,411,762 2,681,558 
Selling572,869 442,812 
Research and development297,926 233,809 
(Gain) loss on disposition of assets1,713 (4,042)
Total operating expenses4,284,270 3,354,137 
Loss from operations(2,100,704)(873,223)
Other income (expense)
Other income (expense), net81,925 (18,453)
Interest expense(41,113)(23,003)
Unrealized gain (loss) on investment securities(56,246)18,749 
Total other income (expense), net(15,434)(22,707)
Loss before provision for state income taxes(2,116,138)(895,930)
Provision for state income taxes2,928 — 
Consolidated net loss(2,119,066)(895,930)
(Income) loss attributable to the non-controlling interest(11,881)(34,478)
Loss attributable to Tecogen Inc.$(2,130,947)$(930,408)
Net loss per share - basic$(0.07)$(0.04)
Weighted average shares outstanding - basic28,817,040 24,850,261 
Net loss per share - diluted$(0.07)$(0.04)
Weighted average shares outstanding - diluted28,817,040 24,850,261 

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Three Months Ended
September 30, 2025September 30, 2024
Non-GAAP financial disclosure (1)
Net loss attributable to Tecogen Inc.$(2,130,947)$(930,408)
Interest expense, net(51,479)23,003 
Income taxes2,928 — 
Depreciation & amortization, net230,149 138,246 
EBITDA(1,949,349)(769,159)
Stock based compensation126,419 41,908 
Unrealized loss (gain) on investment securities56,246 (18,749)
Adjusted EBITDA $(1,766,684)$(746,000)

(1) Non-GAAP Financial Measures
In addition to reporting net income, a U.S. generally accepted accounting principle (“GAAP”) measure, this news release contains information about Adjusted EBITDA (net income (loss) attributable to Tecogen Inc adjusted for interest, income taxes, depreciation and amortization, stock-based compensation expense, unrealized gain or loss on investment securities, goodwill impairment charges and other non-cash non-recurring charges including abandonment of certain intangible assets), which is a non-GAAP measure.  The Company believes Adjusted EBITDA allows investors to view its performance in a manner similar to the methods used by management and provides additional insight into its operating results.  Adjusted EBITDA is not calculated through the application of GAAP.  Accordingly, it should not be considered as a substitute for the GAAP measure of net income and, therefore, should not be used in isolation of, but in conjunction with, the GAAP measure.  The use of any non-GAAP measure may produce results that vary from the GAAP measure and may not be comparable to a similarly defined non-GAAP measure used by other companies.
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TECOGEN INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)

Nine Months Ended
September 30, 2025September 30, 2024
Revenues
Products$8,672,927 $3,002,087 
Services12,153,700 11,991,378 
Energy production929,085 1,550,549 
Total revenues21,755,712 16,544,014 
Cost of sales
Products5,605,282 2,018,734 
Services7,675,073 6,423,114 
Energy production608,258 966,440 
Total cost of sales13,888,613 9,408,288 
Gross profit7,867,099 7,135,726 
Operating expenses:
General and administrative9,431,073 8,428,119 
Selling1,682,085 1,377,758 
Research and development859,318 734,994 
(Gain) loss on disposition of assets1,433 (8,070)
Total operating expenses11,973,909 10,532,801 
Loss from operations(4,106,810)(3,397,075)
Other income (expense)
Other income (expense), net61,302 (15,305)
Interest expense(111,592)(59,542)
Unrealized loss on investment securities(74,995)— 
Total other income (expense), net(125,285)(74,847)
Loss before provision for state income taxes(4,232,095)(3,471,922)
Provision for state income taxes20,615 22,100 
Consolidated net loss(4,252,710)(3,494,022)
(Income) loss attributable to non-controlling interest(2,264)(80,149)
Net loss attributable to Tecogen Inc.$(4,254,974)$(3,574,171)
Net loss per share - basic$(0.16)$(0.14)
Weighted average shares outstanding - basic26,354,875 24,850,261 
Net loss per share - diluted$(0.16)$(0.14)
Weighted average shares outstanding - diluted26,354,875 24,850,261 









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Nine Months Ended
September 30, 2025September 30, 2024
Non-GAAP financial disclosure (1)
Net loss attributable to Tecogen Inc.$(4,254,974)$(3,574,171)
Interest expense, net19,000 59,542 
Income taxes20,615 22,100 
Depreciation & amortization, net621,530 419,744 
EBITDA(3,593,829)(3,072,785)
Stock based compensation209,858 131,906 
Unrealized loss on marketable securities74,995 — 
Adjusted EBITDA $(3,308,976)$(2,940,879)

(1) Non-GAAP Financial Measures
In addition to reporting net income, a U.S. generally accepted accounting principle (“GAAP”) measure, this news release contains information about Adjusted EBITDA (net income (loss) attributable to Tecogen Inc adjusted for interest, income taxes, depreciation and amortization, stock-based compensation expense, unrealized gain or loss on investment securities, goodwill impairment charges and other non-cash non-recurring charges including abandonment of certain intangible assets), which is a non-GAAP measure.  The Company believes Adjusted EBITDA allows investors to view its performance in a manner similar to the methods used by management and provides additional insight into its operating results.  Adjusted EBITDA is not calculated through the application of GAAP.  Accordingly, it should not be considered as a substitute for the GAAP measure of net income and, therefore, should not be used in isolation of, but in conjunction with, the GAAP measure.  The use of any non-GAAP measure may produce results that vary from the GAAP measure and may not be comparable to a similarly defined non-GAAP measure used by other companies.













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TECOGEN INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
Nine Months Ended
September 30, 2025September 30, 2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Consolidated net loss$(4,252,710)$(3,494,022)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization621,530 419,744 
Provision for (recovery of) credit losses(50,883)29,817 
Stock-based compensation209,858 131,906 
Unrealized loss on investment securities74,995 — 
(Gain) loss on disposition of assets1,433 (8,070)
Non-cash interest expense43,476 25,966 
Changes in operating assets and liabilities
(Increase) decrease in:
Accounts receivable(143,013)1,303,300 
Inventory75,921 658,194 
Unbilled revenue272,160 119,000 
Prepaid assets and other current assets(238,270)(42,578)
Other assets330,804 704,565 
Increase (decrease) in:
Accounts payable(725,386)323,980 
Accrued expenses and other current liabilities96,898 133,599 
Deferred revenue(2,984,276)581,485 
Other liabilities(668,956)(1,003,881)
Net cash used in operating activities(7,336,419)(116,995)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment(353,296)(838,932)
Proceeds from disposition of assets1,280 40,255 
Distributions to non-controlling interest(42,956)(96,975)
Net cash used in investing activities(394,972)(895,652)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from follow on offering, net of transaction costs18,105,100 — 
Proceeds from related party notes payable— 1,000,000 
Related-party note repayment(1,076,956)— 
Finance lease principal payments(106,414)(56,385)
Proceeds from the exercise of stock options658,403 — 
Net cash provided by financing activities17,580,133 943,615 
Net increase (decrease) in cash and cash equivalents9,848,742 (69,032)
Cash and cash equivalents, beginning of the period5,405,233 1,351,270 
Cash and cash equivalents, end of the period$15,253,975 $1,282,238 
Supplemental disclosure of cash flow information:
Cash paid for interest$145,072 $22,909 
Cash paid for taxes$20,615 $22,100 
Non-cash investing activities
Right-of-use assets acquired under operating leases$193,480 $1,547,800 
Right-of-use assets acquired under finance leases$1,013,564 $275,501 
Aegis Contract and Related Asset Acquisition:
Contingent consideration$— $272,901 
Non-cash financing activities
Related party note conversion to common stock$514,148 $— 
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