AMERICAN SUPERCONDUCTOR CORP /DE/
For the period ended Jun 30, 2025. Filed Jul 30, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Jul 30, 2025
AMSC$23.39-2.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-12-31; filed 2025-02-05.
0001437749-25-002900
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-30.
0001437749-25-023968
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 75 previous paragraphs and 68 current paragraphs.
32 unchanged; 32 reworded; 3 added; 11 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 7 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (3)
Current report
Unallocated corporate expenses included anet loss on contingent consideration of $3.9 million in the three months ended June 30, 2024.
Current report
Income tax expense was $0.2 million in both the three months ended June 30, 2025 and June 30, 2024.
Current report
The Company’s primary sources of liquidity are internally generated cash provided by operating activities, our cash and cash equivalents on hand, along with access to capital markets, including through our currently effective Registration Statements on Form S-3. We believe that these sources of liquidity are sufficient to meet both our short-term and reasonably foreseeable long-term requirements and obligations. As of** **June 30, 2025, we had cash and cash equivalents of $207.9 million.
Removed paragraphs (11)
Previous report
In February 2023, we completed the process of determining and verifying our eligibility and amount of payroll tax credits known as the Employee Retention Credit (“ERC”) under the CARES Act which Congress enacted as part of the Taxpayer Certainty and Disaster Tax Relief Act of 2020. This resulted in filing certain amended payroll tax forms for eligible quarters in 2020 and 2021, which, in the aggregate, totaled $3.3 million. We recognized a receivable in prepaid expenses and other current assets and a benefit to cost of revenues and operating expenses in the quarter ended March 31, 2023. In the year ended March 31, 2024, we received $3.0 million in payments for the initial claims that were processed. The remaining balance is expected to be received during fiscal 2025.
Previous report
Equity Method Investments
Previous report
We treat the equity investment in the condensed consolidated financial statements under the equity method. Equity method investments are equity securities in entities we do not control but over which we have the ability to exercise significant influence. These investments are accounted for under the equity method of accounting in accordance with ASC 323,Investments—* Equity Method and Joint Ventures*. Equity method investments are measured at cost minus impairment, if any, plus or minus the Company’s share of an investee’s income or loss, less distributions received. Other than those noted here, there were no significant changes in the critical accounting policies that were disclosed in our Annual Report on Form 10-K for the fiscal year ended March 31, 2024.
Previous report
Three and nine months ended December 31, 2024, compared to the three and nine months ended December 31, 2023
Previous report
Unallocated corporate expenses includednet losses on contingent consideration of $6.7 million in the nine months ended December 31, 2024, and net losses on contingent consideration of $0.9 million and $3.1 million in the three and nine months ended December 31, 2023, respectively. Additionally, unallocated corporate expenses consisted of stock-based compensation expense of $2.9 millionand $4.9 million in the three and nine months ended December 31, 2024, respectively, and$1.1 million and $3.6 million in the three and nine months ended December 31, 2023, respectively.
Previous report
Income tax benefit was $0.1 million and $4.9 million in the three and nine months ended December 31, 2024, respectively. Income tax expense was $0.1 million and $0.3 million in the three and nine months ended December 31, 2023, respectively. The net improvement to income tax benefit for the three and nine months ended December 31, 2024 was a result of the release of the valuation allowance due to the recording of the deferred tax liability from the acquisition of Megatran.
Previous report
We have experienced recurring operating losses and, as of December 31, 2024, had an accumulated deficit of $1,061.8 million.
Previous report
In January 2024, we filed a shelf registration statement on Form S-3 that will expire three years from the date on which it was declared effective, March 15, 2027 (the “First Form S-3”). The First Form S-3 allows us to offer and sell from time-to-time up to $250 million of common stock, debt securities, warrants or units comprised of any combination of these securities. The First Form S-3 is intended to provide us flexibility to conduct registered sales of our securities, subject to market conditions, in order to fund our future capital needs. The terms of any future offering under the First Form S-3 will be established at the time of such offering and will be described in a prospectus supplement filed with the SEC prior to the completion of any such offering.
Previous report
As described above, on August 1, 2024, we acquired all of the issued and outstanding shares of Megatran, for aggregate consideration in an amount equal to $61.4 million (the “Purchase Price”), which consideration amount was subject to various adjustments set forth in the Stock Purchase Agreement (including those described below) and consisted of: (a) (i) $25.0 million, minus (ii) the Indebtedness (as defined in the Stock Purchase Agreement) outstanding as of immediately prior to the closing, minus (iii) Company Expenses (as defined in the Stock Purchase Agreement) (collectively, the “Cash Purchase Price”); (b) a number of restricted shares (rounded up or down to the nearest whole share, as applicable) (the “Company Shares”) of our common stock equal to the quotient obtained by dividing (x) $31.4 million by (y) the closing price per share of Common Stock on the Nasdaq Global Select Market on the last trading day immediately preceding August 1, 2024; and (c) an additional cash payment equal to $5.0 million, as adjusted pursuant to Sections 5.6(c), (d), and (f) of the Stock Purchase Agreement. Megatran is now a wholly-owned subsidiary of the Company and, together with its wholly-owned subsidiaries and affiliates, is operated and reported as a component of its Grid business segment. On September 23, 2024, the Company paid the Additional Cash Purchase Price to the selling stockholders, which was calculated based on the agreed upon formula, in the amount of $8.3 million.
Previous report
In August 2024, we filed an automatically-effective shelf registration statement on Form S-3 that will expire no later than August 12, 2027 (the “Second Form S-3”). The Second Form S-3 allows us to offer and sell from time-to-time common stock, debt securities, warrants or units comprised of any combination of these securities and allows certain selling stockholders to offer and sell from time-to-time common stock. The Second Form S-3 assisted the Megatran selling stockholders in the resale of their common stock and is intended to provide us flexibility to conduct registered sales of our securities, subject to market conditions, in order to fund our future capital needs. The terms of any future offering under the Second Form S-3 will be established at the time of such offering and will be described in a prospectus supplement filed with the SEC prior to the completion of any such offering.
Previous report
In November 2023, the FASB issued ASU 2023-07,Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in ASU 2023-07 improve the disclosures about a public entity’s reportable segments and address requests from investors for additional, more detailed information about a reportable segment’s expenses. Following the release of ASU 2023-07 in November 2023, the effective date will be annual reporting periods beginning after December 15, 2023. As of December 31, 2024, we are evaluating the impact on our condensed consolidated financial statements.
Reworded paragraphs (32)
Previous wording
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). For this purpose, any statements contained herein that relate to future events or conditions, including without limitation, the statements in Part II, “Item 1A. Risk Factors” and in Part I under “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and located elsewhere herein regarding industry prospects, our prospective results of operations or financial position, the benefits from our acquisition of Megatran Industries, Inc. ("Megatran") together with its wholly-owned subsidiaries and affiliates , changes in macroeconomic and market conditions, anticipated payment of ERC's (as defined herein), and adoption of accounting changes may be deemed to be forward-looking statements. Without limiting the foregoing, the words “believes,” “anticipates,” “plans,” “expects,” and similar expressions are intended to identify forward-looking statements. Such forward-looking statements represent management’s current expectations and are inherently uncertain. There are a number of important factors that could materially impact the value of our common stock or cause actual results to differ materially from those indicated by such forward-looking statements. These important factors include, but are not limited to: We have a history of operating losses, which may continue in the future. Our operating results may fluctuate significantly from quarter to quarter and may fall below expectations in any particular fiscal quarter; We have a history of negative operating cash flows, and we may require additional financing in the future, which may not be available to us; Our technology and products could infringe intellectual property rights of others, which may require costly litigation and, if we are not successful, could cause us to pay substantial damages and disrupt our business; Changes in exchange rates could adversely affect our results of operations; We may be required to issue performance bonds or provide letters of credit, which restricts our ability to access any cash used as collateral for the bonds or letters of credit; If we fail to maintain proper and effective internal control over financial reporting, our ability to produce accurate and timely financial statements could be impaired and may lead investors and other users to lose confidence in our financial data; We may not realize all of the sales expected from our backlog of orders and contracts; Our contracts with the U.S. government are subject to audit, modification or termination by the U.S. government and include certain other provisions in favor of the government. The continued funding of such contracts remains subject to annual congressional appropriation, which, if not approved, could reduce our revenue and lower or eliminate our profit; Changes in U.S. government defense spending …
Excerpt shortened here; the source contains the full paragraph.
Current wording
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). For this purpose, any statements contained herein that relate to future events or conditions, including without limitation, the statements in Part II, “Item 1A. Risk Factors” and in Part I under “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and located elsewhere herein regarding industry prospects, our addressable markets, our competitive position, macroeconomic conditions and their anticipated effect on our business, the benefits of our acquisitions, financial results and financial condition, expectations for when our products become operational, capabilities and potential uses of our products, steps taken to enhance liquidity, or our prospective results of operations or financial position, may be deemed to be forward-looking statements. Without limiting the foregoing, the words “believes,” “anticipates,” “plans,” “expects,” and similar expressions are intended to identify forward-looking statements. Such forward-looking statements represent management’s current expectations and are inherently uncertain. There are a number of important factors that could materially impact the value of our common stock or cause actual results to differ materially from those indicated by such forward-looking statements. These important factors include, but are not limited to: We have not been historically profitable, which may recur in the future. Our operating results may fluctuate significantly from quarter to quarter and may fall below expectations in any particular fiscal quarter; While we generated positive operating cash flow in fiscal 2024 and the prior year, we have a history of negative operating cash flows, and we may require additional financing in the future, which may not be available to us; Our technology and products could infringe intellectual property rights of others, which may require costly litigation and, if we are not successful, could cause us to pay substantial damages and disrupt our business; Changes in exchange rates could adversely affect our results of operations; If we fail to maintain proper and effective internal control over financial reporting, our ability to produce accurate and timely financial statements could be impaired and may lead investors and other users to lose confidence in our financial data; We may be required to issue performance bonds, which restricts our ability to access any cash used as collateral for the bonds; We may not realize all of the sales expected from our backlog of orders and contracts; If we fail to implement our business strategy successfully, our financial performance could be harmed; We rely upon third-party suppliers for the components and subassemblies of many of our Grid and Wind products, making us vulnerable to supply shortages and price fluctuations, which could harm o…
Excerpt shortened here; the source contains the full paragraph.
Previous wording
American Superconductor®, Amperium®, AMSC®, D-VAR®, PowerModule™, D-VAR VVO*®,*PQ-IVR®, SeaTitan®, Gridtec™ Solutions, Windtec™ Solutions, Smarter, Cleaner...Better Energy™, orchestrate the rhythm and harmony of power on the grid™, actiVAR®, armorVAR™, NEPSI™ and Neeltran™ and SafetyLOCK™ are trademarks or registered trademarks of American Superconductor Corporation or our subsidiaries. We reserve all of our rights with respect to our trademarks or registered trademarks regardless of whether they are so designated in this Quarterly Report on Form 10-Q by an ® or ™ symbol. All other brand names, product names, trademarks or service marks appearing in this Quarterly Report on Form 10-Q are the property of their respective holders.
Current wording
American Superconductor®, Amperium®, AMSC®, D-VAR®, PowerModule™, D-VAR VVO*®,*PQ-IVR®, SeaTitan®, Gridtec™ Solutions, Windtec™ Solutions, Smarter, Cleaner...Better Energy™, orchestrate the rhythm and harmony of power on the grid™, actiVAR®, armorVAR™, NEPSI™ and Neeltran™, NWL™ and SafetyLOCK™ are trademarks or registered trademarks of American Superconductor Corporation or our subsidiaries. We reserve all of our rights with respect to our trademarks or registered trademarks regardless of whether they are so designated in this Quarterly Report on Form 10-Q by an ® or ™ symbol. All other brand names, product names, trademarks or service marks appearing in this Quarterly Report on Form 10-Q are the property of their respective holders.
Previous wording
Changes in macroeconomic conditions arising from various reasons, such as the ongoing wars between Russia and Ukraine and Israel and Hamas, labor force availability, sourcing, material delays and global supply chain disruptions, could have a material adverse effect on our business, financial condition and results of operations.
Current wording
Changes in macroeconomic conditions arising from various reasons, such as the ongoing wars between Russia and Ukraine and Israel and Hamas, tariffs, trade restrictions and resulting trade conflicts, labor force availability, sourcing, material delays and global supply chain disruptions, could have a material adverse effect on our business, financial condition and results of operations.
Previous wording
On August 1, 2024, we entered into a Stock Purchase Agreement (the “Stock Purchase Agreement”) with the selling stockholders named therein. Pursuant to the terms of the Stock Purchase Agreement and concurrently with entering into such agreement, we acquired all of the issued and outstanding shares of Megatran, for aggregate consideration in an amount equal to $61.4 million, as may be adjusted pursuant to the Stock Purchase Agreement (the “Purchase Price”), including a cash payment after closing of $5.0 million, as adjusted pursuant to Sections 5.6(c), (d), and (f) of the Stock Purchase Agreement (the “Additional Cash Purchase Price”). At closing, we paid to Megatran's selling stockholders $25.0 million in cash on hand, and 1,297,600 restricted shares of our common stock. On September 23, 2024, we paid the Additional Cash Purchase Price to the selling stockholders, which was calculated based on the agreed upon formula set forth in the Stock Purchase Agreement, in the amount of $8.3 million which includes the Additional Cash Purchase Price and the make whole payment. Megatran's wholly-owned subsidiary, NWL, Inc. ("NWL"), is a U.S.-based global provider of engineered power conversion solutions for demanding industrial and military applications. As a result of this transaction, Megatran became a wholly-owned subsidiary and is operated by our Grid business segment.
Current wording
On August 1, 2024, we entered into a Stock Purchase Agreement (the “Stock Purchase Agreement”) with the selling stockholders named therein. Pursuant to the terms of the Stock Purchase Agreement and concurrently with entering into such agreement, we acquired all of the issued and outstanding shares of Megatran, Industries, Inc. ("Megatran"), for aggregate consideration in an amount equal to $61.4 million, as may be adjusted pursuant to the Stock Purchase Agreement (the “Purchase Price”), including a cash payment after closing of $5.0 million, as adjusted pursuant to Sections 5.6(c), (d), and (f) of the Stock Purchase Agreement (the “Additional Cash Purchase Price”). At closing, we paid to Megatran's selling stockholders $25.0 million in cash on hand, and 1,297,600 restricted shares of our common stock. On September 23, 2024, we paid the Additional Cash Purchase Price to the selling stockholders, which was calculated based on the agreed upon formula set forth in the Stock Purchase Agreement, in the amount of $8.3 million which includes the Additional Cash Purchase Price and the make whole payment. Megatran's wholly-owned subsidiary, NWL, Inc. (together with Megatran, "NWL"), is a U.S.-based global provider of engineered power conversion solutions for demanding industrial and military applications. As a result of this transaction, Megatran became a wholly-owned subsidiary and is operated by our Grid business segment. We refer to this transaction as the "acquisition of NWL".
Previous wording
On February 14, 2024, we completed a public offering of 6,210,000 shares of our common stock at a price of $11.25 per share under our then-existing Registration Statement on Form S-3. We received net proceeds of approximately $65.2 million after deducting underwriting discounts and commissions and offering expenses.
Current wording
In June 2025, we completed an offering of 4,743,750 shares of our common stock at a public offering price of $28.00 per share under our Registration Statement on Form S-3. We received aggregate net proceeds of approximately $124.6 million after deducting underwriting discounts and commissions and offering expenses.
Previous wording
Total revenues increased 56% to $61.4 million for the three months ended December 31, 2024 and total revenues increased 51% to $156.2 million for the nine months ended December 31, 2024, compared to $39.4 million and $103.6 million for the three and nine months ended December 31, 2023, respectively. Our revenues are summarized as follows (in thousands):
Current wording
Total revenues increased 80% to $72.4 million for the three months ended June 30, 2025, compared to $40.3 million for the three months ended June 30, 2024. Our revenues are summarized as follows (in thousands):
Previous wording
Our Grid business segment accounted for 85% and 84% of total revenues for the three and nine months ended December 31, 2024, respectively, comparedto 85% foreach of the three and nine months ended December 31, 2023. Our Grid business segment revenues increased 56% to $52.3 million in the three months ended December 31, 2024, from $33.6 million in the three months ended December 31, 2023. Our Grid business segment revenues increased 50% to $131.6 million in thenine months ended December 31, 2024, from $87.9 million in thenine months ended December 31, 2023. The increase in the Grid business segment revenues in the three and nine months ended December 31, 2024, compared to the three and nine months ended December 31, 2023 was primarily driven by the acquisition of Megatran and increased shipments of new energy power systems than in the prior year periods.
Current wording
Our Grid business segment accounted for 83% of total revenues for the three months ended June 30, 2025, comparedto 80% forthe three months ended June 30, 2024. Our Grid business segment revenues increased 86% to $60.1 million in the three months ended June 30, 2025, from $32.3 million in the three months ended June 30, 2024. The increase in the Grid business segment revenues in the three months ended June 30, 2025, compared to the three months ended June 30, 2024 was primarily driven by the acquisition of NWL and increased shipments of new energy power systems than in the prior year period.
Previous wording
Our Wind business segment accounted for 15% and 16% of total revenues for the three and nine months ended December 31, 2024, respectively, comparedto 15% for each of the three and nine months ended December 31, 2023. Revenues in the Wind business segment increased 58% and 56% to $9.1 million and $24.6 million in the three and nine months ended December 31, 2024, respectively, from $5.8 million and $15.8 million in the three and nine months ended December 31, 2023, respectively. The increase during the three and nine months ended December 31, 2024, compared to the three and nine months ended December 31, 2023, was driven by additional shipments of electrical control systems ("ECS") at increased prices.
Current wording
Our Wind business segment accounted for 17% of total revenues for the three months ended June 30, 2025, comparedto 20% for the three months ended June 30, 2024. Revenues in the Wind business segment increased 54% to $12.3 million in the three months ended June 30, 2025, from $8.0 million in the three months ended June 30, 2024. The increase during the three months ended June 30, 2025, compared to the three months ended June 30, 2024, was driven by additional shipments of electrical control systems ("ECS").
Previous wording
Cost of revenues increased by 53% to $45.1 million for the three months ended December 31, 2024, compared to $29.4 million for the three months ended December 31, 2023. Cost of revenues increased by 42% to $112.0 million for thenine months ended December 31, 2024, compared to $78.8 million for thenine months ended December 31, 2023. Gross margin was 27% and 28% for thethree and nine months ended December 31, 2024, respectively, compared to 25% and 24% for thethree and nine months ended December 31, 2023, respectively. Cost of revenues includes total amortization expense of $0.3 million and $0.4 million in the three andnine months ended December 31, 2024, as a result of the Megatran acquired backlog intangible assets. In addition, a charge of $0.4 million and $0.7 million related to a fair value adjustment of approximately for the step-up basis assigned to acquired inventory to properly reflect the fair value in purchase accounting was charged to cost of revenues in the three and nine months ended December 31, 2024, when the inventory sold. The increase in gross margin in the three and nine months ended December 31, 2024 was due to higher revenues, a favorable product mix and favorable impacts across the business due to pricing increases across our product lines.
Current wording
Cost of revenues increased by 71% to $47.9 million for the three months ended June 30, 2025, compared to $28.1 million for the three months ended June 30, 2024. Gross margin was 34% for thethree months ended June 30, 2025, compared to 30% for thethree months ended June 30, 2024. The increase in gross margin in the three months ended June 30, 2025 was due to higher revenues, a favorable product mix and favorable impacts across the business due to pricing increases across our product lines.
Previous wording
Research and development ("R&D") expenses increased 36% and 39% in the three and nine months ended December 31, 2024, respectively, to $3.0 million and $7.9 million from $2.2 million and $5.7 million in the three and nine months ended December 31, 2023, respectively. The increasein thethree and nine months ended December 31, 2024 was driven primarily by the addition of Megatran R&D expenses, higher overall compensation expense and additional stock-based compensation expense.
Current wording
Research and development ("R&D") expenses increased 88% in the three months ended June 30, 2025, to $4.3 million from $2.3 million in the three months ended June 30, 2024. The increasein thethree months ended June 30, 2025 was driven primarily by the addition of NWL R&D expenses, higher overall compensation expense and additional stock-based compensation expense.
Previous wording
Selling, general and administrative ("SG&A") expenses increased 48% and 31% in the three and nine months ended December 31, 2024, respectively, to $11.6 million and $31.0 million from $7.8 million and $23.6 million in the three and nine months ended December 31, 2023, respectively. The increase in SG&A expense in the three months ended December 31, 2024 was driven primarily by the addition of Megatran SG&A expenses, higher overall compensation expense and additional stock-based compensation expense. The increase in the nine months ended December 31, 2024 was due to the addition of Megatran SG&A expenses, higher overall compensation expense, additional stock-based compensation expense, and higher acquisition costs.
Current wording
Selling, general and administrative ("SG&A") expenses increased 60% in the three months ended June 30, 2025, to $14.2 million from $8.9 million in the three months ended June 30, 2024. The increase in SG&A expense in the three months ended June 30, 2025 was driven primarily by the addition of NWL SG&A expenses, higher overall compensation expense and additional stock-based compensation expense.
Previous wording
We recorded amortization expense related to our core technology and know-how, customer relationships, and other intangible assets of $0.4 million and $1.3 million in the three and nine months ended December 31, 2024, respectively, and $0.5 million and $1.6 million in the three and nine months ended December 31, 2023, respectively. The decrease in amortization expense is a result of using the economic consumption method as the basis to amortize the acquired customer relationship intangible assets from Northeast Power Systems, Inc. ("NEPSI") and Neeltran.
Current wording
We recorded amortization expense related to our core technology and know-how and customer relationships of $0.3 million in the three months ended June 30, 2025, and $0.4 million in the three months ended June 30, 2024. The decrease in amortization expense is a result of using the economic consumption method as the basis to amortize the acquired customer relationship intangible assets from Northeast Power Systems, Inc. ("NEPSI") and Neeltran, Inc.
Previous wording
The change in fair value of our contingent consideration for the earnout payment on the acquisition of NEPSI resulted ina loss of $3.4 million resulting from an increase in fair value in thenine months ended December 31, 2024. During the three months ended September 30, 2024, we issued 300,000 shares of common stock of the Company to the selling stockholders following certification of the achievement of specified earnout revenue objectives. We recorded the above noted changes, compared to losses of $0.9 million and $3.1 million in thethree and nine months ended December 31, 2023, respectively. We also recorded a $3.3 million payment relating to the Megatran acquisition, as a payment to settle the remaining obligations after the acquisition. The value of this contingent consideration was de minimis at the Acquisition Date and the resulting change in fair value was recorded in September during the nine months ended December 31, 2024.
Current wording
The change in fair value of our contingent consideration for the earnout payment on the acquisition of NEPSI resulted ina loss of $3.9 million in the three months ended June 30, 2024 driven from an increase in fair value. There was no activity inthe three months ended June 30, 2025 as the contingent consideration was settled during the prior fiscal year.
Previous wording
Our Grid business segment generated operating income of $2.8 million and $6.0 million in thethree and nine months ended December 31, 2024, respectively, compared to operating income of $0.3 million and operating loss of $2.4 million in thethree and nine months ended December 31, 2023, respectively. The increase in the Grid business segment operating income in the three and nine months ended December 31, 2024 was due to higher revenues and gross margins in part due to a favorable product mix.
Current wording
Our Grid business segment generated operating income of $4.2 million in thethree months ended June 30, 2025, compared to an operating loss of $0.2 million in thethree months ended June 30, 2024. The improvement in the Grid business segment operating income in the three months ended June 30, 2025 was due to higher revenues and gross margins.
Previous wording
Our Wind business segment generated operating income of $1.4 million and $2.9 million in thethree and nine months ended December 31, 2024, respectively, compared to operating income of $0.3 million and operating loss of $0.1 million in thethree and nine months ended December 31, 2023, respectively. The improvement in the Wind business segment operating income in the three and nine months ended December 31, 2024 was due to higher revenues and gross margins from increased sales of ECS units.
Current wording
Our Wind business segment generated operating income of $1.5 million in thethree months ended June 30, 2025, compared to operating income of $0.9 million in thethree months ended June 30, 2024. The increase in the Wind business segment operating income in the three months ended June 30, 2025 was due to higher revenues and gross margins from increased sales of ECS units.
Previous wording
Interest income, net, was $0.8 million and $2.9 million in the three and nine months ended December 31, 2024, respectively, compared to $0.2 million and $0.5 million in the three and nine months ended December 31, 2023, respectively. The increase in interest income, net, in the three and nine months ended December 31, 2024 was due to higher cash balances.
Current wording
Interest income, net, was $0.9 million in the three months ended June 30, 2025, compared to $1.1 million in the three months ended June 30, 2024. The decrease in interest income, net, in the three months ended June 30, 2025 was due to lower interest rates.
Previous wording
Other income, net, was $0.3 million and other expense, net was $0.2 million in thethree and nine months ended December 31, 2024, respectively, compared to other expense, net of $0.3 million and $0.6 million in the three and nine months ended December 31, 2023, respectively. The decrease in other expense, net, during the three and nine months ended December 31, 2024, compared to the three and nine months ended December 31, 2023, was driven by the impacts of favorable fluctuations in foreign currencies and gain on earnings from NWL Pacific during the periods.
Current wording
Other income, net, was $0.3 million in thethree months ended June 30, 2025, compared to other expense, net of $0.2 million in the three months ended June 30, 2024. The improvement in other income, net, during the three months ended June 30, 2025, compared to the three months ended June 30, 2024, was driven by the impacts of favorable fluctuations in foreign currencies and gain on earnings from our NWL Pacific joint venture during the periods.
Previous wording
Net income was $2.5 million and $4.8 million in thethree and nine months ended December 31, 2024, respectively, compared to net losses of $1.6 million and $9.5 million in thethree and nine months ended December 31, 2023, respectively. The improvement in net income was driven primarily by increased revenues and gross margins as well as therelease of a partial valuation allowance against the deferred tax liability recorded as a result of the Megatran acquisition.
Current wording
Net income was $6.7 million in thethree months ended June 30, 2025, compared to a net loss of $2.5 million in thethree months ended June 30, 2024. The improvement in net income was driven primarily by increased revenues and gross margins.
Previous wording
***Non-GAAP Financial Measure -***Non-GAAP Net Income (Loss)
Current wording
***Non-GAAP Financial Measure -***Non-GAAP Net Income
Previous wording
We define non-GAAP net income (loss) as net income (loss) before stock-based compensation, acquisition costs, amortization of acquisition-related intangibles, change in fair value of contingent consideration, and other non-cash or unusual charges. We believe non-GAAP netincome (loss)assists management and investors in comparing our performance across reporting periods on a consistent basis by excluding these non-cash charges and other items that we do not believe are indicative of our core operating performance. In addition, we use non-GAAP netincome (loss) as a factor to evaluate the effectiveness of our business strategies. A reconciliation of GAAP to non-GAAP netincome (loss) is set forth in the table below (in thousands, except per share data):
Current wording
We define non-GAAP net income as net income (loss) before stock-based compensation, amortization of acquisition-related intangibles, change in fair value of contingent consideration, and other non-cash or unusual charges. We believe non-GAAP netincome assists management and investors in comparing our performance across reporting periods on a consistent basis by excluding these non-cash charges and other items that we do not believe are indicative of our core operating performance. In addition, we use non-GAAP netincome as a factor to evaluate the effectiveness of our business strategies. A reconciliation of GAAP to non-GAAP netincome is set forth in the table below (in thousands, except per share data):
Previous wording
We incurred non-GAAP net income of $6.0 million and $19.3 million, or $0.16 and $0.52 per share, for thethree and nine months ended December 31, 2024, respectively, compared to a non-GAAP net income of $0.9 million and a non-GAAP net loss of $1.3 million, or $0.03 and $(0.04) per share, for thethree and nine months ended December 31, 2023, respectively. The improvement in the non-GAAP net income (loss) for the three and nine months ended December 31, 2024 was due to higher revenues and gross margins.
Current wording
We generated non-GAAP net income of $11.6 million, or $0.30 per share, for thethree months ended June 30, 2025, compared to a non-GAAP net income of $3.0 million, or $0.09 per share, for thethree months ended June 30, 2024. The improvement in the non-GAAP net income for the three months ended June 30, 2025 was due to higher revenues and gross margins.
Previous wording
Our cash requirements depend on numerous factors, including the successful completion of our product development activities, our ability to commercialize our Resilient Electric Grid and ship protection system solutions, the rate of customer and market adoption of our products, collecting receivables according to established terms, the continued availability of U.S. government funding during the product development phase of our superconductor-based products and whether Inox is successful in executing on Solar Energy Corporation of India Limited orders or in obtaining additional orders under the new central and state auction regime. We continue to closely monitor our expenses and, if required, expect to reduce our operating and capital spending to enhance liquidity.
Current wording
Our cash requirements depend on numerous factors, including the successful completion of our product development activities, our ability to commercialize our Resilient Electric Grid and ship protection system solutions, the rate of customer and market adoption of our products, collecting receivables according to established terms, the continued availability of U.S. government funding during the product development phase of our superconductor-based products and whether Inox is successful in executing on Solar Energy Corporation of India Limited orders or in obtaining additional orders under the new central and state auction regime. We continue to closely monitor our expenses and, if required, may reduce our operating and capital spending to enhance liquidity.
Previous wording
On February 2, 2024, we completed an offering of 6,210,000 shares of our common stock at a public offering price of $11.25 per share under our then-existing Registration Statement on Form S-3. We received net proceeds of approximately $65.2 million after deducting underwriting discounts and commissions and offering expenses. See Note 1, “Nature of the Business and Operations and Liquidity,” for further information about this offering.
Current wording
On June 10, 2025, we completed an offering of 4,125,000 shares of our common stock at a public offering price of $28.00 per share under our Registration Statement on Form S-3. We received net proceeds of approximately $108.2 million after deducting underwriting discounts and commissions and offering expenses. The offering included an option to purchase an additional 618,750 shares over the initial offering of 4,125,000 shares at the public offering price, less underwriting discounts and commission. This option was fully exercised on June 16, 2025 resulting in an additional $16.3 million in net proceeds, after deducting underwriting discounts and commissions and offering expenses payable by the Company, for total net proceeds of approximately $124.6 million. The offering closed on June 16, 2025.
Previous wording
As of December 31, 2024, we had cash, cash equivalents and restricted cash of $80.0 million, compared to $92.3 million as of March 31, 2024, a decrease of $12.3 million. As of December 31, 2024, wehad $3.2 million in cash, cash equivalents, and restricted cash in foreign bank accounts. Our cash, cash equivalents, and restricted cash are summarized as follows (in thousands):
Current wording
As of June 30, 2025, we had cash, cash equivalents and restricted cash of $213.4 million, compared to $85.4 million as of March 31, 2025, an increase of $128.0 million. As of June 30, 2025, we had $3.3 million in cash, cash equivalents, and restricted cash in foreign bank accounts. Our cash, cash equivalents, and restricted cash are summarized as follows (in thousands):
Previous wording
For the nine months ended December 31, 2024, net cash provided by operating activities was $22.0 million, compared to cash used in operations of $0.1 million for the nine months ended December 31, 2023. The increase in cash flows provided by operating activities in the nine months ended December 31, 2024 was due primarily to increased net income, decrease in cash spent on accounts payable and accrued expenses, and increased deferred revenue, offset by an increase in accounts receivable, and cash spent on inventory purchases, prepaid expenses, and operating leases.
Current wording
For the three months ended June 30, 2025, net cash provided by operating activities was $4.1 million, compared to cash provided by operating activities of $3.4 million for the three months ended June 30, 2024. The increase in cash flows provided by operating activities in the three months ended June 30, 2025 was due primarily to increased net income, decrease in cash spent on accounts payable and accrued expenses as well as inventory, offset by an increase in accounts receivable, cash spent on prepaid expenses, and change in deferred revenue.
Previous wording
For the nine months ended December 31, 2024, net cash used in investing activities was $34.1 million, compared to $0.6 million for the nine months ended December 31, 2023. The increase in net cash used in investing activities was primarily due to cash paid for the acquisition of Megatran.
Current wording
For the three months ended June 30, 2025, net cash used in investing activities was $0.7 million, compared to less than $0.1 million for the three months ended June 30, 2024. The increase in net cash used in investing activities was primarily due to purchases of property, plant and equipment.
Previous wording
For the nine months ended December 31, 2024, net cash used in financing activities was $0.1 million compared to net cash provided by financing activities of $0.1 million for the nine months ended December 31, 2023. The decrease was due to the repurchase of common stock in connection with employee tax obligations upon the vesting of stock awards, offset by proceeds related to our ESPP.
Current wording
For the three months ended June 30, 2025, net cash provided by financing activities was $124.6 million compared to cash used in financing activities of $0.1 million for the three months ended June 30, 2024. The improvement was due to the equity raise in June 2025.
Previous wording
As of December 31, 2024, we had $3.5 million of restricted cash included in long-term assets and $1.3 million of restricted cash included in current assets. At March 31, 2024, we had $1.3 million of restricted cash included in long-term assets and $0.5 million of restricted cash in current assets. These amounts included in restricted cash primarily represent collateral deposits to secure surety bonds and letters of credit for various customer contracts. These deposits are held in interest bearing accounts.
Current wording
As of June 30, 2025, we had $4.2 million of restricted cash included in long-term assets and $1.3 million of restricted cash included in current assets. At March 31, 2025, we had $4.3 million of restricted cash included in long-term assets and $1.6 million of restricted cash in current assets. These amounts included in restricted cash primarily represent collateral deposits to secure surety bonds and letters of credit for various customer contracts. These deposits are held in interest bearing accounts.
Previous wording
We are a party to many contractual obligations involving commitments to make payments to third parties. These obligations impact our short-term and long-term liquidity and capital resource needs. Certain contractual obligations are reflected on the condensed consolidated balance sheet as of December 31, 2024, while others are considered future commitments. We have various contractual arrangements, under which we have committed to purchase certain minimum quantities of goods or services on an annual basis. For information regarding our other contractual obligations, refer to Note 15, "Contingent Consideration," Note 16, "Debt," Note 17, "Leases" and Note 18, "Commitments and Contingencies" to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.
Current wording
We are a party to many contractual obligations involving commitments to make payments to third parties. These obligations impact our short-term and long-term liquidity and capital resource needs. Certain contractual obligations are reflected on the condensed consolidated balance sheet as of June 30, 2025, while others are considered future commitments. We have various contractual arrangements, under which we have committed to purchase certain minimum quantities of goods or services on an annual basis. For information regarding our other contractual obligations, refer to Note 14, "Contingent Consideration," Note 15, "Leases" and Note 16, "Commitments and Contingencies" to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q. There have been no material changes to our contractual obligations from those disclosed in our Annual Report on Form 10-K for the fiscal year ended March 31, 2025.
Previous wording
We believe we have sufficient available liquidity to fund our operations and capital expenditures for the next twelve months. We raised $65.2 million, net of offering expenses, through an equity raise in February 2024. In addition, we may seek to raise additional capital, which could be in the form of loans, convertible debt or equity, to fund our operating requirements and capital expenditures. Our liquidity is highly dependent on our ability to increase revenues, control our operating costs, and raise additional capital, if necessary. There can be no assurance that we will be able to raise additional capital on favorable terms or at all or execute on any other means of improving our liquidity as described above. Additionally, the impact of global sources of instability, including the ongoing wars between Russia and Ukraine and Israel and Hamas, instability of financial institutions and political instability in the United States, on the global financial markets may reduce our ability to raise additional capital, if necessary, which could negatively impact our liquidity. We also continue to closely monitor our expenses and, if required, we intend to reduce our operating and capital spending to enhance liquidity.
Current wording
We believe we have sufficient available liquidity to fund our operations and capital expenditures for the next twelve months. We raised $124.6 million, net of offering expenses, through an equity raise in June 2025. In addition, we may seek to raise additional capital, which could be in the form of loans, convertible debt or equity, to fund our operating requirements and capital expenditures. There can be no assurance that we will be able to raise additional capital on favorable terms or at all or execute on any other means of improving our liquidity as described above. Additionally, the impact of global sources of instability, including the ongoing wars between Russia and Ukraine and Israel and Hamas, tariffs, trade restrictions and resulting trade conflicts, instability of financial institutions and political instability in the United States, on the global financial markets may reduce our ability to raise additional capital, if necessary, which could negatively impact our liquidity.
Previous wording
In December 2023, the FASB issued ASU 2023-09,Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in ASU 2023-09 address investor requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. Following the release of ASU 2023-09 in December 2023, the effective date will be annual reporting periods beginning after December 15, 2024. As of December 31, 2024, we are evaluating the impact on our condensed consolidated financial statements.
Current wording
In December 2023, the FASB issued ASU 2023-09,Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in ASU 2023-09 address investor requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. Following the release of ASU 2023-09 in December 2023, the effective date was annual reporting periods beginning after December 15, 2024. As of June 30, 2025, we are evaluating the impact on our condensed consolidated financial statements.
Previous wording
In March 2024, the FASB issued ASU 2024-02,Codification Improvements—Amendments to Remove References to the Concepts Statements. The amendments in ASU 2024-02 contain amendments to the Codification that remove references to various FASB Concepts Statements. Following the release of ASU 2024-02 in March 2024, the effective date will be annual reporting periods beginning after December 15, 2024. As of December 31, 2024, we are evaluating the impact on our condensed consolidated financial statements.
Current wording
In March 2024, the FASB issued ASU 2024-02,Codification Improvements—Amendments to Remove References to the Concepts Statements. The amendments in ASU 2024-02 contain amendments to the Codification that remove references to various FASB Concepts Statements. Following the release of ASU 2024-02 in March 2024, the effective date was annual reporting periods beginning after December 15, 2024. As of June 30, 2025, we are evaluating the impact on our condensed consolidated financial statements.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Three months ended June 30, 2025, compared to the three months ended June 30, 2024