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olivLaw · US equity research

Capstone Energy+, Inc. CEPL

Engines & Turbines · SIC 3510 · Vertical: Engines & Turbines (SIC 3510)

2.55USD−3.04% · 1 dayClose 02 Nov 2026

Capstone Energy+ makes microturbine systems for on-site power, combined heat and power, and increasingly for AI data centers. The company reported revenue of 106.0 million USD in fiscal 2026, and its relevance is growing as demand for reliable power for AI infrastructure rises, while refinancing of its exit notes remains a major watch point.

At the close of 02 Nov 2026, Capstone Energy+, Inc. (CEPL) stock was 2.55 USD (−3.04% on the day), with market capitalisation 47.3 m USD, 52-week range 2.55–11.88 USD. Latest reported quarter (Q1 2027): revenue of 24.9 m USD (−10.6% YoY), net income of 37.0 k USD, diluted EPS -0.03 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
47.3 m USD
shares as of 10 Jun 2024
P/E (TTM)
unavailable
Diluted EPS TTM -2.65 · TTM to 30 Jun 2026
E/P (TTM)
-103.77%
TTM to 30 Jun 2026
Dividend yield
unavailable
Beta (2y)
unavailable
Volatility (1y) 109%
52-week range
2.5511.88

Price history

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Technical reading

RSI (14)
29.8
oversold (≤ 30)
Bollinger (20, 2)
2.07 – 4.47
in the lower half of the band · %B 0.20 · band width 73.3%
SMA 50 / 200
4.65 / unavailable
MACD (12, 26, 9)
-0.61 / -0.66
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month−43.3%−2.3%−41.0 pp—
3 months−68.4%−0.8%−67.7 pp—
6 monthsunavailable+4.7%unavailable—
Year to dateunavailable+10.2%unavailable—
1 yearunavailable+10.3%unavailable−9.7%
3 yearsunavailable+73.0%unavailable+95.3%
5 yearsunavailable+61.8%unavailable—
Max drawdown (1y)
−78.5%
08 Jul 2026 → 02 Nov 2026
Max drawdown (5y)
−78.5%
08 Jul 2026 → 02 Nov 2026
Compound annual growth (5y)
unavailable
S&P 500 +10.1%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q1 2027 · 30 Jun 2026

Revenue
24.9 m USD
−10.6% YoY
Net income
37.0 k USD
unavailable YoY
Diluted EPS
-0.03
unavailable YoY
net / operating
0.1% / 3.9%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26Q4 '26Q1 '27
Revenue22.7 m20.1 m27.1 m27.9 m28.4 m26.8 m23.0 m24.9 m
Cost of revenue15.7 m15.2 m19.5 m20.3 m19.4 m16.3 m16.1 m16.2 m
Gross profit7.0 m5.0 m7.5 m7.6 m9.0 m10.4 m6.9 m8.8 m
Research & development592.0 k744.0 k785.0 k814.0 k809.0 k971.0 k1.0 m1.2 m
SG&A6.4 m6.3 m6.7 m6.9 m6.8 m7.4 m5.7 m6.6 m
Operating income18.0 k-2.1 m14.0 k-171.0 k1.4 m2.0 m157.0 k967.0 k
Depreciation & amortisation1.1 m ≈947.0 k ≈835.0 k926.0 k1.0 m ≈1.2 m ≈1.1 m1.2 m
Interest expense1.0 m986.0 k941.0 k1.0 m1.1 m1.1 m885.0 k857.0 k
Pre-tax income-398.0 k-2.7 m-7.0 k-693.0 k838.0 k1.2 m1.4 m42.0 k
Income tax25.0 k23.0 k119.0 k5.0 k4.0 k5.0 k-68.0 k5.0 k
Net income-423.0 k-2.7 m-126.0 k-698.0 k834.0 k1.2 m1.5 m37.0 k
Diluted EPS-0.02-0.14-0.01 ≈-0.04-0.89-1.790.06 ≈-0.03
Operating cash flow-1.2 m ≈1.3 m ≈5.5 m-1.6 m551.0 k ≈3.0 m ≈-4.5 m5.4 m
Capex13.0 k ≈679.0 k ≈38.0 k126.0 k255.0 k ≈392.0 k ≈62.0 k894.0 k
Share repurchases———134.0 k74.0 k ≈2.0 k ≈—173.0 k

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Fiscal years

Fiscal year20192020202120222023202420252026
Revenue83.4 m68.9 m67.6 m64.0 m73.9 m91.2 m85.6 m106.0 m
Revenue YoY+0.7%−17.4%−1.9%−5.4%+15.5%+23.5%−6.2%+23.9%
Net income-16.7 m-21.9 m-20.8 m-22.4 m-24.5 m7.4 m-7.2 m2.8 m
Net income YoYunavailableunavailableunavailableunavailableunavailableunavailable−197.3%unavailable
Diluted EPSunavailableunavailable-1.84-1.52-1.430.39-0.38-3.21
Diluted EPS YoYunavailableunavailableunavailableunavailableunavailableunavailable−197.4%unavailable
net %-20.0%-31.8%-30.7%-35.0%-33.2%8.1%-8.4%2.7%
Free cash flow-21.1 m-23.9 m-1.5 m-37.4 m-16.2 m-32.3 m6.8 m-3.4 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2026 · 31 Mar 2026

Cash
28.2 m USD
Financial debt
50.6 m USD
Net debt
22.5 m USD
Equity
-44.5 m USD
Total assets
111.5 m USD
Debt / equity
unavailable
Current ratio
0.96x
ROE
unavailable
ROA
3.0%
FCF margin
-3.2%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2024
91.2 m
2025
85.6 m
2026
106.0 m

SEC (XBRL)· 25 Jun 2026verified

Cost of revenue
2024
76.9 m
2025
62.3 m
2026
72.1 m

SEC (XBRL)· 25 Jun 2026verified

Gross profit
2024
14.3 m
2025
23.3 m
2026
33.9 m

SEC (XBRL)· 25 Jun 2026verified

Research & development
2024
2.5 m
2025
2.7 m
2026
3.6 m

SEC (XBRL)· 25 Jun 2026verified

SG&A
2024
32.2 m
2025
26.2 m
2026
26.9 m

SEC (XBRL)· 25 Jun 2026verified

Operating income
2024
-20.4 m
2025
-5.6 m
2026
3.4 m

SEC (XBRL)· 25 Jun 2026verified

Depreciation & amortisation
2024
4.0 m
2025
3.9 m
2026
4.3 m

SEC (XBRL)· 25 Jun 2026verified

EBITDA
2024
-16.4 m ≈
2025
-1.7 m ≈
2026
7.7 m ≈

SEC (XBRL)· 25 Jun 2026derived

Interest expense
2024
5.5 m
2025
3.9 m
2026
4.1 m

SEC (XBRL)· 25 Jun 2026verified

Pre-tax income
2024
7.4 m
2025
-7.0 m
2026
2.8 m

SEC (XBRL)· 25 Jun 2026verified

Income tax
2024
14.0 k
2025
175.0 k
2026
-54.0 k

SEC (XBRL)· 25 Jun 2026verified

Net income
2024
7.4 m
2025
-7.2 m
2026
2.8 m

SEC (XBRL)· 25 Jun 2026verified

Diluted EPS
2024
0.39
2025
-0.38
2026
-3.21

SEC (XBRL)· 25 Jun 2026verified

Weighted average diluted shares
2024
18.8 m
2025
19.1 m
2026
20.8 m

SEC (XBRL)· 25 Jun 2026verified

Balance sheet · USD

Cash
2024
2.1 m
2025
8.7 m
2026
28.2 m

SEC (XBRL)· 25 Jun 2026verified

Receivables
2024
6.6 m
2025
7.0 m
2026
12.9 m

SEC (XBRL)· 25 Jun 2026verified

Inventories
2024
20.6 m
2025
16.6 m
2026
22.1 m

SEC (XBRL)· 25 Jun 2026verified

Current assets
2024
34.7 m
2025
36.1 m
2026
67.8 m

SEC (XBRL)· 25 Jun 2026verified

Property, plant & equipment, net
2024
25.9 m
2025
19.4 m
2026
16.2 m

SEC (XBRL)· 25 Jun 2026verified

Intangibles (excl. goodwill)
2024
—
2025
0
2026
5.5 m

SEC (XBRL)· 25 Jun 2026verified

Total assets
2024
84.2 m
2025
74.9 m
2026
111.5 m

SEC (XBRL)· 25 Jun 2026verified

Accounts payable
2024
15.1 m
2025
14.1 m
2026
17.6 m

SEC (XBRL)· 25 Jun 2026verified

Short-term debt
2024
28.9 m
2025
8.0 m
2026
25.3 m

SEC (XBRL)· 25 Jun 2026verified

Long-term debt
2024
28.9 m
2025
24.2 m
2026
25.3 m

SEC (XBRL)· 25 Jun 2026verified

Current liabilities
2024
73.2 m
2025
52.6 m
2026
70.8 m

SEC (XBRL)· 25 Jun 2026verified

Total liabilities
2024
85.0 m
2025
82.6 m
2026
82.0 m

SEC (XBRL)· 25 Jun 2026verified

Equity
2024
-14.6 m
2025
-21.6 m
2026
-44.5 m

SEC (XBRL)· 25 Jun 2026verified

Cash flow · USD

Operating cash flow
2024
-27.7 m
2025
7.7 m
2026
-2.5 m

SEC (XBRL)· 25 Jun 2026verified

Capex
2024
4.7 m
2025
879.0 k
2026
835.0 k

SEC (XBRL)· 25 Jun 2026verified

Free cash flow
2024
-32.3 m ≈
2025
6.8 m ≈
2026
-3.4 m ≈

SEC (XBRL)· 25 Jun 2026derived

Investing cash flow
2024
-4.7 m
2025
-879.0 k
2026
-925.0 k

SEC (XBRL)· 25 Jun 2026verified

Financing cash flow
2024
21.6 m
2025
-223.0 k
2026
23.7 m

SEC (XBRL)· 25 Jun 2026verified

Computed indicators

Growth

Revenue growth (YoY)
23.9%
computed by olivLawFY 2026
Revenue CAGR 3Y
12.8%
computed by olivLawFY 2023 → FY 2026
Revenue CAGR 5Y
9.4%
computed by olivLawFY 2021 → FY 2026
EBIT growth (YoY)
unavailable
the base of the ratio is not positive
Net income growth (YoY)
unavailable
the base of the ratio is not positive
Net income CAGR 3Y
unavailable
the base of the ratio is not positive
Net income CAGR 5Y
unavailable
the base of the ratio is not positive
EPS growth (YoY)
unavailable
the base of the ratio is not positive
EPS CAGR 3Y
unavailable
the base of the ratio is not positive
EPS CAGR 5Y
unavailable
the base of the ratio is not positive
FCF growth (YoY)
-149.4%
computed by olivLawFY 2026

Profitability

Gross margin
34.0%
computed by olivLawTTM to 30 Jun 2026
EBITDA margin
8.8%
computed by olivLawTTM to 30 Jun 2026
EBIT margin
4.4%
computed by olivLawTTM to 30 Jun 2026
Net margin
3.5%
computed by olivLawTTM to 30 Jun 2026
FCF margin
2.8%
computed by olivLawTTM to 30 Jun 2026

Returns

ROE
unavailable
equity is negative: the ratio is not economically meaningful (not by itself insolvency; usually the result of buybacks)
ROA
3.8%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROIC
unavailable
equity is negative: buybacks shrink the invested capital and ROIC would come out large without meaning anything
ROCE
11.6%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
18.4 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Net debt / EBITDA
2.0x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Debt / equity
unavailable
equity is negative: the ratio is not economically meaningful (not by itself insolvency; usually the result of buybacks)
Interest coverage
1.1x
computed by olivLawTTM to 30 Jun 2026

Liquidity

Current ratio
1.0x
computed by olivLawbalance sheet at 30 Jun 2026
Quick ratio
0.6x
computed by olivLawbalance sheet at 30 Jun 2026
Cash ratio
0.4x
computed by olivLawbalance sheet at 30 Jun 2026

Cash

Operating cash flow
4.5 m USD
computed by olivLawTTM to 30 Jun 2026
Capital expenditure
1.6 m USD
computed by olivLawTTM to 30 Jun 2026
Free cash flow
2.9 m USD
computed by olivLawTTM to 30 Jun 2026
FCF conversion
80.7%
computed by olivLawTTM to 30 Jun 2026
Cash conversion
49.4%
computed by olivLawTTM to 30 Jun 2026

Efficiency

Days sales outstanding
42 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Days inventory outstanding
117 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Days payables outstanding
93 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Cash conversion cycle
66 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026

Market and valuation

Market capitalisation
47.3 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Enterprise value
65.7 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Market cap / net income TTM
13.3x
computed by olivLawTTM to 30 Jun 2026
P/E (TTM)
unavailable
insufficient data
Earnings yield
-103.8%
computed by olivLawTTM to 30 Jun 2026
P/B
unavailable
equity is negative: the ratio is not economically meaningful (not by itself insolvency; usually the result of buybacks)
P/S
0.5x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
EV/EBITDA
7.3x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
EV/EBIT
14.5x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
EV/Sales
0.6x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
P/FCF
16.5x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
FCF yield
6.1%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero
Shareholder yield (distributions)
unavailable
input data missing

Risk

Altman Z
-10.52
computed by olivLawbalance sheet at 30 Jun 2026

Valuation

olivLaw classification

Neutral profile

Score: 60 / 100

A scoring methodology on indicators and valuation, not investment advice.

Closing price

2.55 USD

02 Nov 2026Source: olivLaw, closing series

Market cap: 47.3 m USD

Key indicators

Market capitalisation
47.3 m USD
computed by olivLawbalance sheet at 30 Jun 2026
P/E (TTM)
unavailable
insufficient data
P/B
unavailable
equity is negative: the ratio is not economically meaningful (not by itself insolvency; usually the result of buybacks)
EV/EBITDA
7.3x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROE
unavailable
equity is negative: the ratio is not economically meaningful (not by itself insolvency; usually the result of buybacks)
Net margin
3.5%
computed by olivLawTTM to 30 Jun 2026
Revenue growth (YoY)
23.9%
computed by olivLawFY 2026
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero

Coverage and freshness

32/37 reporting lines present
Latest full fiscal year: 2026
Latest reported period: 30 Jun 2026
Latest balance sheet date: 30 Jun 2026
Share count (cover of the latest filing), as of: 10 Jun 2024
Source: SEC (XBRL)published 12 Aug 2026
verified 2228derived 190

Score by group

  • Growth100
  • Quality61
  • Valuation73
  • Balance sheet32

Estimated value range

Low
5.14
USD per share
Mid
8.21
USD per share
High
11.76
USD per share
Price: 2.55 USD
The price is below the range
Potential to the central value: 222.1% (value / price − 1)
Margin of safety: 69.0% (1 − price / value)
Agreement between methods: high · 2 methods used · 2 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 4.06 – 12.82 USD.

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)6.23 – 12.82 (Mid 8.45)
    WACC 7.1% · starting FCFF 6.2 m USD · terminal value share of EV 81%
    The WACC × g sensitivity gives the method's bounds; these are not probabilities.
    Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): -26.2%
  • Peers: EV/EBITDA4.06 – 10.70 (Mid 7.97)
    4 companies used · median multiple 18.4x · quartiles 10.3x – 23.9x
    BC, BWXT, CMI, CYD
  • Peers: P/Eunavailable · the base of the ratio is not positive
  • Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
Multiple comparisons use the SIC vertical: Engines & Turbines (SIC 3510)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Neutral profile · Score 60/100

FactorValueScoreWeight used
ROIC · Qualityunavailableunavailable—
Net margin · Quality3.5%50 (vs peers)10%
FCF conversion · Quality80.7%72 (on a fixed band)10%
Revenue CAGR 3Y · Growth12.8%100 (on a fixed band)14%
EPS CAGR 3Y · Growthunavailableunavailable—
Net debt / EBITDA · Balance sheet2.0x56 (on a fixed band)17%
Interest coverage · Balance sheet1.1x0 (on a fixed band)10%
Current ratio · Balance sheet1.0x17 (on a fixed band)7%
P/E (TTM) · Valuationunavailableunavailable—
EV/EBITDA · Valuation7.3x70 (on a fixed band)17%
FCF yield · Valuation6.1%76 (on a fixed band)14%
Shareholder yield (distributions) · Returnsunavailableunavailable—
Payout ratio (FCF) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet32/100 · 3/3 factors with a value
  • Growth· partial100/100 · 1/2 factors with a value
  • Quality61/100 · 2/3 factors with a value
  • Returns· partialunavailable · 0/2 factors with a value
  • Valuation73/100 · 2/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

Capstone Energy Plus, Inc. (CEPL). Latest full fiscal year: 2026; data up to 2026-06-30.

Figures computed from the financial statements: revenue 106.0 m USD in 2026; YoY growth 23.9%; net margin 3.5%; net debt/EBITDA 2.0x.

The estimated value range is 5.14–11.76 USD per share (median of 2 methods, agreement: high); assumptions are illustrative. Against the central value of 8.21 USD, the price of 2.55 USD leaves a potential of 222.1% (value / price − 1) and a margin of safety of 69.0% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

olivLaw score 60/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: growth, returns. Not investment advice.

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • FCF conversion: 80.7%
  • Revenue CAGR 3Y: 12.8%
  • EV/EBITDA: 7.3x
  • FCF yield: 6.1%
  • The price is below the estimated value range

What contradicts it

  • Interest coverage: 1.1x
  • Current ratio: 1.0x

Not assessed (insufficient data or a ratio without meaning): ROIC, EPS CAGR 3Y, P/E (TTM), Shareholder yield (distributions), Payout ratio (FCF).

Versus the vertical median

Engines & Turbines (SIC 3510) · same industry (4-digit SIC) · compared with 6 companies

Multiples and returns vs the median

P/E
—
vertical median 22.3x
EV/EBITDA
7.3x
vertical median 18.4x
below median (−60.5%)
P/S
0.5x
vertical median 1.5x
below median (−69.4%)
P/B
—
vertical median 4.2x
ROE
—
vertical median 13.2%
Net margin
3.5%
vertical median 4.9%
below median (−29.7%)
EBIT margin
4.4%
vertical median 7.2%
below median (−38.7%)
Revenue YoY
23.9%
vertical median 3.7%
above median (+546.7%)
Net debt/EBITDA
2.0x
vertical median 1.0x
above median (+107.9%)
Dividend yield
—
vertical median 1.6%

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
CMICummins Inc.68.9 bn25.323.0%8.1%−1.3%+1% / +123%
BWXTBwx Technologies, Inc.12.0 bn32.028.2%10.4%+18.3%−27% / +67%
BCBrunswick Corporation5.1 bn—-4.8%-1.5%+2.4%+20% / +0%
PSIXPower Solutions International, Inc.1.1 bn15.740.1%10.0%+51.8%−14% / +1,554%
CYDChina Yuchai International Limited826.5 m19.33.5%1.7%+5.0%−38% / +142%
CEPLCapstone Energy Plus, Inc.47.3 m——3.5%+23.9%unavailable / unavailable
WPRTWestport Fuel Systems Inc.33.0 m—-59.9%-264.3%−42.7%−5% / −63%

1- and 3-year price returns: for CEPL from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
2.74
Total return 8% · Per year 8%
4.83
Total return 90% · Per year 90%
7.26
Total return 185% · Per year 185%
3 years
3.13
Total return 23% · Per year 7%
6.15
Total return 141% · Per year 34%
10.07
Total return 295% · Per year 58%
5 years
3.56
Total return 40% · Per year 7%
7.82
Total return 207% · Per year 25%
13.97
Total return 448% · Per year 41%
What moves the 3-year price the most
  • Exit P/E± 1.54
  • Net margin± 1.08
  • Annual revenue growth± 0.82
  • Annual dilution± 0.09

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

In brief

Capstone Energy+ makes microturbine systems for on-site power, combined heat and power, and increasingly for AI data centers. The company reported revenue of 106.0 million USD in fiscal 2026, and its relevance is growing as demand for reliable power for AI infrastructure rises, while refinancing of its exit notes remains a major watch point.

SWOT

Strengths

  • The microturbine technology, based on an oil-free air bearing design, reduces maintenance and supports high uptime, which underpins total cost of ownership 1.
  • Fuel flexibility, from natural gas to flare gas and biogas, allows operation in locations where other technologies do not work efficiently 1.
  • The global installed base and distributor network provide an entry point for new projects and recurring service revenue 1.

Weaknesses

  • Refinancing obligations are significant, and the company has not yet secured the financing needed to repay the notes at maturity 1.
  • A history of net losses and the fiscal 2026 results show fragile profitability 1.
  • Revenue is sensitive to the timing of large orders and rental fleet utilization, which makes quarterly results volatile 3.

Opportunities

  • If demand for on-site power in AI data centers materializes, the company's products could generate revenue in a new segment 1.
  • Grid interconnection constraints could expand demand for bridge power and microgrid solutions 1.
  • Acquiring distributors in selected markets could extend geographic reach and direct distribution 1.

Threats

  • Financing constraints and the loan's financial covenants could lead to enforcement against the company's assets 1.
  • If AI adoption slows, investment in data center infrastructure could decline 1.
  • Competitors with greater resources and existing AI revenue could quickly capture market share 1.

Risks

  • Refinancing of the exit noteshigh

    The exit notes mature in December 2026 and the company has not yet secured refinancing, which could create serious liquidity pressure 1.

  • Loan financial covenantshigh

    The loan includes covenants on minimum liquidity and minimum adjusted EBITDA, and a failure could allow the lender to enforce its security interests 1.

  • Dependence on AI demandmedium

    The AI data center market is new for the company and no sales to AI customers have been reported so far, which makes this segment's contribution uncertain 1.

  • Volatility of quarterly revenuemedium

    The timing of large orders and rental fleet utilization can change results sharply from one quarter to the next, as seen in the recent quarter 3.

Investment thesis

What would need to be true (bull case)

  • If demand for on-site power in AI data centers turns into real orders, the company could meaningfully diversify its revenue base 1.
  • The oil-free technology and fuel flexibility could keep supporting a competitive position in energy efficiency and renewable segments 1.
  • Improved gross margins and positive operating cash flow in the recent quarter could show that cost and mix efforts are working 3.

What would break the thesis

  • If refinancing is not completed before December 2026, the company could be forced to seek bankruptcy protection again, with severe consequences for shareholders 1.
  • Quarterly revenue declined in the recent quarter, and profitability depends on order timing, which could make results hard to predict 3.
  • Larger competitors could quickly take the AI segment, leaving the company in a weaker position if it does not convert its prototypes into sales 1.

What to watch

  • Refinancing or extension of the exit notes2026
  • First commercial orders in AI data centers and from the Energy Surplus Program2027
  • Trend in revenue and gross margin over the coming fiscal quartersQ2 2027

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

The business

Capstone Energy+, Inc. presents itself as a provider of behind-the-meter clean energy solutions for industrial and commercial operations, as well as for artificial intelligence and data center applications 1. The core technology is an oil-free, friction-free microturbine with an air bearing system, able to run on a broad range of gaseous fuels, from natural gas and biogas to landfill gas and blended hydrogen 1. The company also offers Energy as a Service models such as PPAs, leasing and long-term service agreements 1.

Segments

Energy efficiency CHP and CCHP

This is the most established segment, targeting hotels, hospitals, office buildings and industrial plants, where microturbines produce electricity and recovered heat at the same time 1. The company says total system efficiency reaches about 85% in hot water or chilled water applications, versus about 33% in simple-cycle operation 1. Management describes this as the leading market segment 1.

AI data centers and ports

This is the growth segment the company names as a priority for the rest of fiscal 2027, especially data centers and ports 3. For data centers the company has developed the Energy Surplus Program and an 800 VDC platform, but has no AI customer sales yet and commercialization is at an early stage 1. For ports, containerized microturbines can supply power and EV charging directly at the point of consumption 1.

Natural resources and renewable energy

In oil, gas and mining, microturbines use flare gas and sour gas that would otherwise be burned or vented, often at sites without grid power 1. In renewables, the systems run on biogas from landfills, wastewater plants and farms, where the fuel may be effectively free to the operator 1. The company says this segment is sensitive to oil price volatility, which is why it is pursuing diversification 2.

Market context

The distributed power market is pushed by rising energy needs of AI infrastructure, constraints on existing grids, and the need for resilient, cost-stable, low-emission power 1. The company considers itself the market leader in microturbines, measured by annual units sold and installed base 2. Interconnection delays and demand for backup power represent potential demand for its bridge power solutions, but these trends do not guarantee sales volume.

The microturbine market remains relatively narrow, and the company acknowledges a sustainable market could fail to develop or develop more slowly than expected 1. Oil and natural gas price volatility affects demand in the natural resources segment 2. If AI adoption slows or data center rules tighten, demand for the company's solutions could be affected 1.

Trends

  • AI and data center power demandmixed

    The rapid growth of AI data centers creates a need for reliable on-site power that traditional grids struggle to meet 1. The company says it is pursuing this market but has not yet generated revenue from AI customers, and success depends on execution and validation 1. If AI adoption slows, demand could fall below expectations 1.

  • Grid interconnection constraintstailwind

    Interconnection queues have lengthened and substations in high-growth areas are near capacity, which makes bridge power solutions more attractive 1. A faster pace of grid connection could, however, reduce demand for these temporary solutions 1.

  • Emissions and flaring regulationtailwind

    EPA and state restrictions on flaring, along with stricter air quality standards, strengthen the economic case for low-emission microturbines 1. On the other hand, future rules on AI and data center energy efficiency remain uncertain 1.

  • Oil and gas price volatilityheadwind

    The oil and gas market is volatile, and the company has shifted its focus toward energy efficiency and renewables in response 2. The recent decline in rental fleet utilization was partly attributed to uncertainty over oil prices 3.

Competitive position

The company describes competition from reciprocating engines and other distributed generation technologies, which may be cheaper under some conditions or have different operating ranges 1. In AI data centers, larger competitors with substantially greater resources already have revenue from AI business lines, while Capstone has not yet made AI customer sales 1. The sources do not explicitly name listed competitors, and the available information is limited to general descriptions.

  • Reciprocating engine manufacturers

    Traditional competitors in distributed generation, which the company considers less flexible on fuels and more demanding on maintenance, according to its description 1.

  • UPS and diesel backup generator suppliers

    Conventional backup solutions for critical power, which microturbines replace in applications where outages are costly 1.

  • Competitors with AI business lines

    Larger companies that already earn revenue from AI infrastructure, cited as a competitive factor in the data center segment 1.

  • On-site power providers for data centers

    Suppliers offering alternative on-site power systems for data center applications, a segment where the company has no AI customers yet 1.

News & filings

In the press

The latest news item in our archive is from 07 Jul 2026; the newest SEC filing is from 26 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.

SEC filings

Sources

  1. [1] Form 10-K, fiscal year ended 2026-03-31 · SEC / Capstone Energy+, Inc. · 25 Jun 2026
  2. [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Capstone Energy+, Inc. · 12 Aug 2026
  3. [3] Form 8-K, results release (exhibit 99.1) · SEC / Capstone Energy+, Inc. · 12 Aug 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.

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