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Highlights

  • Tantalus Systems reported USD 13.1 million in revenue, up 22% from the prior-year quarter.
  • Net loss narrowed to USD 903,000, while adjusted EBITDA turned positive at USD 510,000.
  • Annual recurring revenue increased 11% year over year to reach USD 13.3 million.

Tantalus Systems (TSX:GRID) reported financial results for the quarter ended June 30, 2025. The company posted revenue of USD 13.1 million for the second quarter, marking a 22% increase compared to the same period in 2024. Growth was observed across both its Connected Devices & Infrastructure and Software and Services segments. Recurring revenue totaled USD 3.2 million, representing 25% of the total.

Annual recurring revenue stood at USD 13.3 million as of June 30, 2025, compared to USD 12.0 million a year earlier. This 11% year-over-year increase marks a new milestone for the company. Gross profit margin reached 53%, exceeding the company's long-term target and reflecting the impact of tariffs and product mix.

The company reported a net loss of USD 903,000, which narrowed from a USD 1.0 million loss in the prior-year quarter. Diluted loss per share remained flat at USD 0.02. Adjusted EBITDA turned positive at USD 510,000, improving from a negative USD 174,000 in Q2 2024.

Cash flow from operating activities was negative USD 759,000, compared to positive USD 475,000 a year ago. The decline was attributed to seasonal changes in working capital, marketing investments, and increased production related to the TRUSense Gateway.

As of June 30, 2025, available liquidity was approximately USD 19.7 million, consisting of USD 11.2 million in cash and USD 8.5 million in available borrowing capacity under the Comerica revolving credit facility. During the quarter, the company repaid the remaining USD 3.7 million outstanding on the facility.

In terms of operational activity, Tantalus converted USD 24.6 million in sales orders during the quarter, the highest in its history. Through the first half of 2025, the company has converted USD 44.1 million in orders, a 34% increase year over year. Tantalus also added four new utility customers in the quarter.

45 utilities had placed initial orders to trial or deploy the TRUSense Gateway. The company also secured a deployment of its TRUGrid Analytics solution by the Indiana Municipal Power Agency, which will extend access to 19 member utilities. In April, the U.S. government raised tariffs on products imported from the Philippines from 10% to 19%. These tariffs apply only to the Connected Devices segment. Tantalus is currently covering 5% of the incremental cost.

The company also amended its credit facility with Comerica, extending the maturity date to June 30, 2027, and modified certain terms. Additionally, it secured a six-month deferral of principal and interest payments on its term loan from EDC.