Tecogen Q2 Revenue Jumps 54%, Driven by Record Products Sales and New Chiller Launch

Tecogen's Q2 2025 revenue jumped 54.3% to $7.29 million, driven by record products segment sales and new chiller launches. Gross margin dropped 10.2 percentage points to 33.8%, impacted by higher costs from the initial ramp-up of hybrid chillers. The company ended the quarter with $1.64 million in cash before completing a $18.2 million capital raise.

Tecogen Inc. (NYSE American:OTC:TGEN) reported a substantial 54.3% year-over-year revenue increase in its Q2 2025 presentation delivered on August 13, 2025. The company's total revenue reached $7,294,000, up from $4,728,000 in Q2 2024. This growth was primarily driven by record sales in the Products segment, which saw a 2,529% year-over-year increase, reaching $2,016,000. The company's strategic pivot towards data center cooling solutions has been a significant driver of this growth [1].

Despite the revenue growth, Tecogen's gross margin contracted year-over-year, with gross profit growth (18.4%) lagging significantly behind revenue growth (54.3%). The company attributed this to selling a prototype unit at a discount and operational inefficiencies in its service segment. Gross margin dropped to 33.8%, down from 44.0% in the prior year period [2].

The company's focus on data center cooling solutions has shown significant market interest, with multiple Letters of Intent (LOIs) and quotations for large-scale projects. This includes evaluations for a 100MW+ data center and quotes for "giga scale" facilities requiring 60-100 chillers. Tecogen's Dual Power Data Center Chiller, which can operate on natural gas, electricity, or both simultaneously, is a key innovation driving this interest [1].

Tecogen's financial position was bolstered by a recent capital raise, which strengthened its balance sheet and provided resources for expansion initiatives. The company ended Q2 2025 with $1.64 million in cash, prior to completing a $18.2 million capital raise. Tecogen plans to expand its manufacturing capacity to meet anticipated demand, with current factory capacity at 40-60 chillers per year, and plans to increase this to 80-100 units annually through contract manufacturing and factory layout changes [1].

The company's near-term milestones include converting LOIs to purchase orders, launching marketing initiatives with partner Vertiv in Q3/Q4, and securing larger unit orders to eliminate supply chain and capacity bottlenecks. Tecogen's Q2 2025 results highlight major topline progress, offset by tighter profitability and a reduced cash balance, with a significant capital raise completed just after the reporting period. While the company continues to operate at a loss, its strengthened balance sheet and growing pipeline of potential data center projects position it to capitalize on increasing cooling demands in AI infrastructure [2].

References:
[1] https://www.investing.com/news/company-news/tecogen-q2-2025-slides-revenue-surges-54-amid-data-center-cooling-push-93CH-4186908
[2] https://www.nasdaq.com/articles/tecogen-revenue-jumps-54-q2