Tecogen Inc. outlined progress in its data center strategy during its Q2 2026 investor presentation, even as the company reported a 15% year-over-year decline in revenue to $22.3 million.
The slide deck, released Thursday, emphasized the company’s push into high-growth data center cooling solutions, positioning the segment as a key driver for future revenue despite the broader revenue contraction. Tecogen, which provides combined heat and power (CHP) systems, noted that data center demand for energy-efficient cooling solutions has accelerated, aligning with its core offerings.
Revenue for the quarter fell to $22.3 million from $26.2 million in the same period last year, reflecting weaker demand in traditional CHP markets. Gross margin remained stable at 28%, though operating expenses rose 8% to $6.4 million, driven by investments in R&D and sales initiatives tied to the data center push.
Management highlighted a 20% increase in data center-related inquiries compared to Q1 2026, signaling sustained industry interest. The company also reiterated its 2026 revenue guidance of $100 million to $110 million, though analysts noted the outlook remains contingent on execution in the data center segment.
Tecogen’s stock, which has underperformed the S&P 500 over the past year, traded flat in after-hours trading following the release.
