Q2 revenue hit $15.4M, up 18% YoY, while gross margin of 55% beat the 50% target. The utility-tech firm reported $690K adjusted EBITDA, up 35%.
Tantalus Systems Holding Inc. (GRID:CA) reported a record second quarter, with revenue of $15.4 million, up 18% from a year earlier, and gross profit margin of approximately 55%, well above its 50% target, Chief Financial Officer Azim Lalani said during an investor update webinar on Tuesday.
The company also delivered positive adjusted EBITDA of $690,000, a 35% increase, and reported total liquidity of $41.3 million, the strongest balance sheet in its history, according to Lalani.
“This quarter really demonstrates the durability and operating leverage of our business model,” Lalani told investors. The call was organized as an informal Q&A session after the company’s official earnings release last week. CEO Peter Londa was scheduled to join but experienced WiFi connectivity issues while attending the Canaccord Growth Conference, the moderator noted.
The utility-technology firm provides smart grid solutions for electric, water, and gas utilities. The record results come as utilities across North America continue to invest in grid modernization and automated metering infrastructure, a trend that has supported demand for Tantalus’ hardware and software platforms.
Lalani highlighted four key metrics: revenue growth, margin expansion, positive EBITDA, and a strong liquidity position. The $41.3 million in total liquidity includes cash and available credit, giving the company flexibility to invest in product development and pursue potential acquisitions, he said. The balance sheet strength is notable given that many smaller technology firms have struggled with rising interest costs and tighter capital markets.
Gross margin of 55% compares with the company’s stated long-term target of 50%, suggesting the mix of higher-margin software and services revenue is improving. Adjusted EBITDA of $690,000, while still modest in absolute terms, represents a 35% year-over-year gain and underscores the operating leverage Lalani referenced.
The company did not provide specific forward guidance during the call. Londa and Lalani were attending the Canaccord Growth Conference at the time of the webinar, and the session was cut short by technical difficulties, the moderator said.
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