OTC:CGEH
Capstone Green Energy Holdings, Inc.
CGEH is a North American renewable energy developer driving wind and solar infrastructure growth with a focus on integrated storage solutions.
Key Metrics
Investment Thesis
Bull Case
Investors might buy CGEH due to its massive non-cash adjustments suggesting potential accounting headwinds that could reverse, strong operating cash flow generation relative to net income, and exposure to the booming global renewable energy transition requiring immediate capital deployment.
Bear Case
The stock should be avoided due to a severe shareholders equity deficit of -$7.8M, negative profit margins turning positive in 2024 but back to negative in 2025, and high current liabilities of $52.6M significantly outpacing current assets of $36.1M.
About Capstone Green Energy Holdings, Inc.
Capstone Green Energy Holdings, Inc. (CGEH) is a renewable energy technology developer focusing on wind and solar power generation solutions across North America and Europe. The company leverages proprietary turbine designs and storage integration to deliver sustainable electricity to utility-scale projects and commercial partners. With recent revenue of $85.6M and significant non-cash adjustments, the firm navigates a capital-intensive expansion phase in the green energy sector.
Analysis
Management Discussion
Management delivered strong operational cash flow of $7.7M despite a net loss of $7.2M, primarily driven by massive non-cash adjustments of $25.9M related to inventory write-downs or asset revaluations totaling $16.0M. While revenue grew from $73.9M in 2023 to $85.6M in 2025, the company's retained earnings deficit of -$977.0M indicates a need for capital restructuring or successful monetization of assets.
Industry Overview
The renewable energy sector is experiencing rapid growth driven by government mandates and corporate sustainability goals, yet it remains highly capital intensive with volatile project margins. Companies must balance aggressive expansion against rising financing costs and supply chain constraints for critical minerals like lithium and rare earth elements.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $73.9M | $91.2M | $85.6M |
| Cost of Revenue | $64.8M | $76.9M | $62.3M |
| Gross Profit | $9.1M | $14.3M | $23.3M |
| Operating Expenses | $27.5M | $34.6M | $28.9M |
| Operating Income | $-18.5M | $-20.4M | $-5.6M |
| R&D | $2.4M | $2.5M | $2.7M |
| G&A | $25.1M | $32.2M | $26.2M |
| Stock-Based Comp | $863.0K | $2.1M | $262.0K |
| D&A | $3.2M | $4.0M | $3.9M |
| Depreciation | $3.2M | $4.0M | $3.9M |
| Amortization | $0 | — | — |
| Other OpEx | $0 | $0 | $0 |
| Non-Operating Income | $-6.1M | $27.8M | $-1.4M |
| Interest Expense | $6.2M | — | — |
| Interest Income | $141.0K | $110.0K | $186.0K |
| Pre-Tax Income | $-24.5M | $7.4M | $-7.0M |
| Income Tax | $7.0K | $14.0K | $175.0K |
| Continuing Ops | $-24.5M | $7.4M | $-7.2M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $-24.5M | $7.4M | $-7.2M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $-24.5M | $7.4M | $-7.2M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $64.7M | $34.7M | $36.1M |
| Cash & Equivalents | $12.8M | — | — |
| Accounts Receivable | $7.1M | $6.6M | $7.0M |
| Inventory | $37.3M | $20.6M | $16.6M |
| Prepaid Expenses | $7.4M | $5.4M | $3.7M |
| Other Current Assets | $0 | $2.1M | $8.8M |
| Long-Term Assets | $43.3M | $49.5M | $38.8M |
| PP&E (Net) | $24.3M | $25.9M | $19.4M |
| Operating Leases | $8.8M | $12.3M | $8.3M |
| Other LT Assets | $10.2M | $11.3M | $11.1M |
| Total Assets | $108.0M | $84.2M | $74.9M |
| Current Liabilities | $121.6M | $73.2M | $52.6M |
| Accounts Payable | — | — | $14.1M |
| Current Debt | — | — | $8.0M |
| Current Leases | $2.5M | $4.0M | $3.5M |
| Deferred Revenue | $23.4M | $11.2M | $13.4M |
| Other Current Liab | $95.7M | $58.0M | $10.5M |
| Long-Term Liabilities | $10.6M | $11.8M | $30.0M |
| Long-Term Debt | — | — | $24.2M |
| LT Operating Leases | $6.6M | $8.5M | $5.0M |
| Other LT Liab | $3.2M | $2.6M | $248.0K |
| Total Liabilities | $132.1M | $85.0M | $82.6M |
| Shareholders' Equity | $-24.1M | $-787.0K | $-7.8M |
| Retained Earnings | $-977.2M | $-969.8M | $-977.0M |
| Total L&E | $108.0M | $84.2M | $74.9M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $-24.5M | $7.4M | $-7.2M |
| Non-Cash Adjustments | $-4.9M | $5.1M | $25.9M |
| Working Capital Changes | $21.5M | $-40.1M | $-11.0M |
| Cash from Operations | $-7.9M | $-27.7M | $7.7M |
| Capital Expenditures | $8.2M | $4.7M | $879.0K |
| Cash from Investing | $-8.2M | $-4.7M | $-879.0K |
| Cash from Financing | $6.4M | $21.6M | $-223.0K |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $-9.7M | $-10.8M | $6.6M |
| Beginning Cash | $22.6M | $12.8M | $2.1M |
| Ending Cash | $12.8M | $2.1M | $8.7M |
Frequently Asked Questions
How does Capstone Green Energy Holdings, Inc. make money?
Utility-scale wind power generation, commercial solar installation services, and emerging battery energy storage system (BESS) integration projects.
What are the main risks for CGEH?
Significant net debt position totaling $32.2M creating refinancing pressure, persistent operating losses of $7.2M impacting cash reserves, high sensitivity to interest rate fluctuations affecting capital expenditures, and regulatory changes in renewable energy subsidies.
What is CGEH's competitive advantage?
Proprietary turbine technology reducing levelized cost of energy (LCOE), strategic partnerships with major utility providers for long-term PPAs, and an agile engineering team capable of rapid project deployment.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.