ConnectM Technology Solutions Reports Transformational FY2025: Records 93% Gross Profit Growth, Turns Positive Equity, Targets \$75M Revenue and Profitability in FY2026

Key Financial Highlights

• Record Revenue Growth: Fiscal 2025 revenue reached \$35.8 million, a surge of 58% from \$22.7 million in FY2024.
• Gross Profit Soars: Gross profit nearly doubled, climbing 93% year-over-year to \$11.5 million. Gross margin improved sharply to 32% from 26%, reflecting a 570 basis point expansion.
• Balance Sheet Turnaround: The company achieved a dramatic \$25.4 million improvement in stockholders’ equity, moving from a deficit of (\$23.8) million to a positive \$1.6 million.
• Total Assets Growth: Total assets rose 183% to \$36.2 million, up from \$12.8 million, underscoring significant strengthening of the balance sheet.
• Operational Efficiency: Net loss narrowed by 29% to (\$16.1) million, compared to (\$22.5) million in the prior year. Loss from operations was (\$12.6) million vs. (\$11.6) million, while total other expense net improved to (\$3.5) million from (\$10.9) million.
• Net Loss Per Share: Improved markedly to (\$0.22) from (\$1.18), an 81% improvement, aided by a significant increase in shares outstanding to 153.3 million from 29.1 million.

Strategic Catalysts & AI Initiatives

• Launch of Keen Labs AI Platform: ConnectM established Keen Labs, a wholly owned subsidiary, which now processes over 30GB of daily operational data from 130,000+ connected assets. This platform powers predictive maintenance and Virtual Power Plant (VPP) models, placing ConnectM at the forefront of AI-driven energy management.
• Battery Technology Acquisition: The company completed the acquisition of Amperics, adding Hi-C™ (defense/data centers) and Hi-E™ (residential VPP) battery technologies to its portfolio. These assets are expected to be central to ConnectM’s future energy storage and AI-enabled solutions.
• National Exchange Uplisting: ConnectM has filed an S-1 registration statement for a firm commitment public offering with ThinkEquity as sole book-runner, a milestone toward uplisting from the OTC to a national exchange, which could significantly enhance liquidity and institutional investor access.
• Portfolio Rationalization: Management divested three lower-margin home service businesses (ATS, SESB, GEG) to focus capital and resources on higher-margin, technology-driven AI and infrastructure segments. This streamlining is expected to continue improving efficiency and margins.

Segment Performance

2026 Outlook: Profitability and Accelerated Growth

• Positive EBITDA Target: The company is targeting \$75 million in revenue and positive EBITDA for FY2026, reflecting a mandate to achieve and sustain profitability.
• Growth Drivers:
  • Organic expansion, including full-year contributions from 2025 acquisitions.
  • Leveraging the 76-acre Geo Impex logistics and data center campus in India, providing significant hard-asset backing to the valuation.
  • Continued segment rationalization, focusing on highest-margin and highest-multiple business lines to accelerate the path to profitability.

Management Commentary

“Fiscal year 2025 was a transformational year for ConnectM. We delivered 58% revenue growth, nearly doubled our gross profit, and executed a \$25.4 million stockholders’ equity turnaround—all while completing strategic acquisitions, launching Keen Labs as our AI innovation engine, and filing our S-1 for a national exchange uplisting. The SPAC overhang is behind us. Capital is now a growth tool, not a survival tool.”

“With our Hi-C and Hi-E battery technology, our 130,000+ connected asset network, and our expanding energy intelligence platform, ConnectM is positioned at the intersection of electrification, artificial intelligence, and energy storage—three of the highest-growth sectors in the market today. We are actively streamlining our portfolio to concentrate on our highest-margin, highest-multiple business lines, which we expect to drive meaningful SG&A improvement and accelerate our path to profitability. We are targeting \$75 million revenue and positive EBITDA generation for fiscal 2026.”

– Bhaskar Panigrahi, Chairman and CEO

What Shareholders Need to Know (Potential Price-Sensitive Information)

• The massive equity turnaround from a deficit to positive equity, a critical milestone for financial health and market confidence.
• Uplisting process to a national exchange is underway, which could meaningfully impact liquidity, institutional participation, and valuation.
• Launch of Keen Labs and integration of AI into energy management and predictive maintenance opens new high-margin markets and technological leadership.
• Strategic divestments and portfolio focus are expected to improve profitability and operational efficiency.
• Strong revenue and gross profit growth positions ConnectM as a potential leader in the rapidly growing electrification, AI, and energy storage sectors.
• Ambitious 2026 guidance of \$75 million revenue and positive EBITDA marks a pivot to profitability and sustained growth, which could be transformative to the company’s valuation.

About ConnectM Technology Solutions

ConnectM is a constellation of technology-driven businesses powering the modern energy economy. The company delivers AI-powered electrification, distributed energy, energy storage, last-mile delivery, and industrial IoT solutions worldwide through its operating subsidiaries and Keen Labs technology platform.

For more information, visit www.connectm.com.

About Keen Labs

Keen Labs, a wholly owned subsidiary of ConnectM, develops AI, control, and energy intelligence platforms. Its portfolio includes industrial IoT hardware, the Hi-C™ line of hybrid energy storage systems, and the Hi-E™ line of lithium iron phosphate long-duration storage and VPP-enabling systems, all integrated with its software platform to optimize performance across fleets, facilities, and distributed energy assets.

For more information, visit www.keenlabs.ai.

Disclaimer

This article contains forward-looking statements based on current expectations and projections about future events. Actual results may differ materially due to known and unknown risks, uncertainties, and other factors. Investors are advised to review the company’s filings with the SEC and not to place undue reliance on forward-looking statements. This article does not constitute investment advice.

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