Eguana Announces Third Quarter 2025 Financial Results

Rhea-AI Summary

Eguana Technologies (OTC: EGTYF) reported Q3 2025 results for the quarter ended September 30, 2025, and year to date figures through Sept 30, 2025. Year-to-date revenue was $2.06M, up 310% YoY. Q3 2025 revenue was $132,000. Year-to-date gross margin improved to 42% from negative 66% a year earlier; Q3 gross margin was -16% versus -139% in Q3 2024, with an adjusted Q3 gross margin of 31% excluding the standard warranty accrual. Q3 operating loss narrowed to $1,124,527 from $1,579,623 a year earlier. Working capital remained negative due to classification of long-term debt as current. A strategic investor, ITOCHU, deferred interest payments and amended maturity dates, most recently to Jan 31, 2026. Operational updates note a completed megawatt roll-out in British Columbia, follow-on orders and early shipments for December installations, and utility/VPP progress in North America.

Positive

• YTD revenue $2.06M (+310% YoY)
• YTD gross margin 42% vs -66% prior year
• Adjusted Q3 gross margin 31% (excluding warranty accrual)
• Q3 operating loss narrowed to $1,124,527

Negative

• Q3 gross margin -16% (impacted by warranty accrual and low volume)
• Working capital remained negative with long-term debt classified as current
• Liquidity dependence on investor accommodations; ITOCHU deferred payments and extended maturity to Jan 31, 2026

Calgary, Alberta--(Newsfile Corp. - November 28, 2025) - Eguana Technologies Inc. (TSXV: EGT) (OTC Pink: EGTYF) ("Eguana" or the "Company"), a leading provider of high-performance energy storage systems, announces its third quarter financial results for the three-month ended September 30, 2025.

Third Quarter 2025 Summary Results

• Year to date revenue of $2.06 million is an increase of 310% versus the prior year comparative period. Q3 2025 revenue of $132,000 is an 8.3% increase from the comparative quarter in September 2024. Third quarter decrease to prior quarters was related to the time required to engage customers and contractors as part of the transition to the new feeder region and optimization of the project management process based on lessons learned in the first phase.

• Year to date gross margin of 42% compares to the prior year comparative period of negative 66%. The improvement was significantly impacted by the purchase of discounted finished goods from a former partner in 2024. Q3 2025 gross margin of negative 16% compares to a gross margin of negative 139% in the comparative quarter of September 2024. Q3 gross margin was negatively impacted by a combination of the Company's standard quarterly warranty provision and low volume of sales during Q3. The warranty provision is netted with actual warranty expenses at year end, and there were no material warranty expenses within the quarter. Adjusted gross margin without the warranty accrual was 31% during Q3.

• Q3 2025 operating loss was $1,124,527, a decrease from a $1,579,623 operating loss for the comparative September quarter in 2024. The improvement is largely due to lower expenses in operational categories in the third quarter of 2025, where the Company reduced development spending along with strategic spending within the supply chain.

• Working capital at September 30, 2025 remained in a negative position, as the total long-term debt is classified as current. The liquidity position, which continues to be impacted by slow market recovery, is closely monitored and has been reported in prior news releases.

• ITOCHU Corporation ("ITOCHU"), a strategic investor in the Company, deferred their interest payment, in cash or shares in lieu, at March 1, 2025, to support the Company's liquidity. The payment had been deferred to August 31, 2025 and again deferred further to November 30, 2025. Post quarter end the parties executed an additional amendment to extend the maturity date to January 31^st, 2026.

Business Updates for the Third Quarter

• Completed megawatt roll out for targeted feeder improvement in British Columbia, received follow-on order to upgrade additional feeders in the Okanogan Valley, shipments commenced in November for planned installations in December.

• Entered into negotiations with BC utility partner to increase recurring revenue streams based on Evolve's grid services and fleet management capabilities.

• Building on the successes in the feeder support programs, and in order to maximize deployment of batteries in British Columbia, Eguana began a digital marketing program in partnership with the utility to raise awareness for all battery and demand response incentive programs and to accelerate deployment of Eguana batteries in the province.

• Continued advancement in Northern California VPP with partner Serious Controls for demand response, and commenced scale up meetings with utility for targeted first half 2026 roll out.

• Completed product installation in Medicine Hat as part of the Energy Innovation Challenge, a collaborative program from the City of Medicine Hat and Decentralized Energy Canada.

• Two additional smart meter company integrations completed to IEEE 2030.5 communication standards to continue building out additional utility channels.

"We are very excited to continue our fleet expansion as we enter the winter peak season in British Columbia. Through this season we will continue demonstrating the performance and capability of Eguana's feeder support solutions, clearing a path for expanded deployments in BC along with other utility partners across North America" commented Eguana Chief Executive Officer Justin Holland.

About Eguana Technologies Inc.

Eguana's vision is to accelerate grid modernization and resilience, by delivering flexible, modular, and cost-effective alternatives to traditional grid upgrades. Our technology provides value to all key stakeholders - from the consumer, to the electricity retailer, the distribution utility, and the system operator.

Eguana Technologies connects utilities with consumers, through its high-performance commercial and residential energy storage solutions. Eguana's vertically integrated product suite has been designed from the ground up, with both the end user and the utility in mind, to transition the power grid seamlessly.

Manufactured in local facilities across the globe to ensure compliance and quality, Eguana's standardized platform allows the flexibility to ensure each product solution is optimized for use in major grid modernization markets.

To learn more, visit www.EguanaTech.com, follow us on LinkedIn or @EguanaTech on X.

Company Inquiries

Justin Holland, CEO
Eguana Technologies Inc.
+1.416.728.7635
Justin.Holland@EguanaTech.com

Forward-Looking Statements

The reader is advised that all information herein, other than statements of historical fact, may constitute forward-looking statements and forward-looking information (together, "forward-looking statements") within the meaning assigned by National Instrument 51-102 - Continuous Disclosure Obligations and other relevant securities legislation.

Forward-looking statements are included to provide information about management's current expectations and plans that allows investors and others to have a better understanding of the Company's business plans and financial performance and condition. All statements, other than statements of historical fact included in this news release, regarding the Company's strategy, future operations, prospects, plans and objectives of management are forward-looking statements that involve risks and uncertainties. Forward-looking statements are typically identified by words such as "plan", "expect", "estimate", "intend", "anticipate", "believe", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements in this news release include, but are not limited to: that the Company will remain focused on demonstrating the value of demand response, load management and auxiliary power, and voltage and frequency control for utility companies; and, that the Company's VPP utility accelerator program, including Eguana Edge™, is expected to drive higher storage sales with stronger margins and deliver future recurring revenues.

Forward-looking statements are not a guarantee of future performance and involves a number of risks and uncertainties. Many factors could cause the Company's actual results, performance or achievements, or future events or developments, to differ materially from those expressed or implied by the forward-looking information. Such factors include, but are not limited to, risks associated with: failure by the Company to improve cash flow which would have a material adverse impact on the viability of the business to continue operating; timely collection of accounts receivable; ability to raise capital in debt or equity, as needed, on appropriate terms; unanticipated effects of the reduction to headcount; effective implementation and deployment of Eguana solutions and building additional partnerships and developing existing partnerships; general economic, market and business conditions; competitive factors; achieving strategic objectives; engagement and adoption of the VPP solutions with utilities; obtaining additional revenue, recurring revenue and higher margins; inability to or delays in sourcing materials; production delays or certification delays: the Company's ability to roll out additional utility pilot programs and demonstrations or deployment; the operational effectiveness and efficiency of the products when in use by utilities; a slower adoption of energy storage technologies and other factors set out in the "Risk Factors" section of the Company's management's discussion and analysis for the three and nine months ended September 30, 2023 and annual information form dated May 1, 2023, which may be found on its website or at www.sedarplus.ca. Readers are cautioned not to place undue reliance on forward-looking information, which speaks only as of the date hereof. The Company does not undertake any obligation to release publicly any revisions to forward-looking statements contained herein to reflect events or circumstances that occur after the date hereof or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/276303

FAQ

What were Eguana (EGTYF) year-to-date revenues through Sept 30, 2025?

Year-to-date revenue was $2.06 million, a 310% increase versus the prior year period.

What was Eguana's Q3 2025 gross margin and adjusted gross margin (EGTYF)?

Q3 2025 gross margin was -16%; adjusted gross margin without the warranty accrual was 31%.

How much operating loss did Eguana report for Q3 2025 (EGTYF)?

Eguana reported an operating loss of $1,124,527 for Q3 2025, improved from $1,579,623 in Q3 2024.

What liquidity actions affected Eguana (EGTYF) after Q3 2025?

Strategic investor ITOCHU deferred interest payments and amended the debt maturity date, most recently to Jan 31, 2026.

What commercial progress did Eguana report for British Columbia and Northern California?

Eguana completed a megawatt roll-out in British Columbia, received a follow-on order with shipments in November for December installs, and advanced a Northern California VPP with Serious Controls targeting H1 2026 scale-up.