Profitability improved despite lower revenue: Fiscal Q1 2027 revenue fell to $24.9 million from $27.9 million, but gross profit rose 16% to $8.8 million and gross margin expanded to 35%. Capstone posted approximately $37,000 in net income, its fourth consecutive profitable quarter, while adjusted EBITDA remained $2.7 million. Cash flow strengthened, but debt refinancing remains a priority: Cash and restricted cash increased to $32.3 million, supported by $5.4 million of operating cash flow, including a $3.7 million customer deposit.
The company is evaluating commercial-bank refinancing or repayment options for $25.3 million of exit notes due in December 2026. Data-center opportunities are growing but not yet contracted: Capstone reported expanding interest in its microturbine systems for behind-the-meter data-center power, including its 800-volt DC technology, but has not signed a data-center customer agreement. Oil-and-gas weakness continues to pressure rental revenue, while larger commercial projects and energy-as-a-service structures are lengthening sales cycles.
Capstone Energy+ (NASDAQ:CEPL) reported fiscal first-quarter 2027 revenue of $24.9 million for the quarter ended June 30, 2026, down from $27.9 million a year earlier, as lower product shipment volume and reduced rental utilization were partly offset by growth in parts and service revenue. Despite the lower revenue base, the company increased gross profit 16% year over year to $8.8 million and expanded gross margin to 35% from 27%. Interim Chief Financial Officer John Miller said the results reflected favorable product mix, including sales of previously rented microturbine systems, ongoing product cost-reduction efforts and distribution-services contributions. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat Capstone recorded operating income of about $1 million, compared with an operating loss of $200,000 in the prior-year quarter.
Net income was approximately $37,000, compared with a $700,000 net loss a year earlier, marking the company's fourth consecutive quarter of positive net income, according to Miller. Adjusted EBITDA, a non-GAAP metric, was $2.7 million, unchanged from the prior-year period. The company reported a net loss per share of $0.03, versus a net loss per share of $0.04 in the prior-year quarter.
Miller said that although consolidated net income was positive, earnings available to common stockholders included a $1 million non-cash reduction for cumulative paid-in-kind dividends on Series A convertible preferred stock. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be Product and accessories revenue declined to $13 million from $15.7 million, primarily because of lower shipment volume. Rental revenue fell to $2.2 million from $4.2 million, which management attributed to lower fleet utilization amid uncertainty around oil prices. Parts and service revenue rose 14% to $9.7 million from $7.9 million.
Product and accessories gross margin increased to 31% from 8%, while parts and service gross margin declined to 41% from 53%. Miller said the decrease in parts and service margin reflected higher claims under Factory Protection Plan contracts and increased shipments of higher-cost parts associated with warranty claims. → Nebius' Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand Rental gross margin fell to 36% from 52% because of lower fleet utilization. Research and development expense increased to $1.2 million from $800,000, reflecting investments in product enhancements, cost reductions and development programs, including an 800-volt DC microturbine system for AI data center applications and a five-parts-per-million combustion liner.
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