Q3 2026 board update
From Hana Lindqvist, CEO, and Marcus Bell, CFO. Confidential to the board.
Three resolutions need your vote: a second inverter supplier, a bridge backstop and the Series B timeline. Go to the decisions
Where we stood on 30 September
Point at or tap a trend line to read each month
A note from Hana
Dear all,
Q3 was our best quarter for the business we have and our weakest for the business we promised. Revenue grew 15% on Q2 to $1.45M, and gross margin averaged 40.8%, the first quarter above 40%. But we brought 19 sites live against a plan of 30. Eleven stores are installed and wired, waiting for inverters our only supplier has now delayed twice.
That one dependency runs through this pack. It cost us $51k of revenue against plan this quarter, it is the top risk, and two of the three resolutions are about making sure it can't set our timeline again.
The rest of the news is good. Customers stay and add services: sites we installed in the first half of 2024 now pay 121% of what they paid in their first year. Cold storage grew from a quarter of revenue in January to a third in September, faster than we planned, because the savings are larger and the sales cycle is shorter. We will lean into it.
I'd like to spend most of our time on the 15th on inverter supply and the Series B timeline. Marcus and I are free before then if you want to go through the numbers.
HanaHana Lindqvist, chief executive
Revenue against plan
Q3 revenue was $1.45M, 97% of plan. The eleven sites waiting on inverters account for most of the $51k gap. Year to date we're at 99% of plan.
View the monthly numbers
Pipeline by stage
$16.4M of annual revenue is in play across 393 sites. Weighted by stage it's $4.37M, which covers the 2027 plan's $3.9M of new ARR with a little room. Select a stage to see the largest deals in it.
Cash and runway
We ended September with $14.2M in the bank. At Q3's average net burn of $1.01M a month, that's 14 months. Switch scenarios to see how the inverter delays and a bridge would change it.
Runway
14.1months
Cash lasts to the end of November 2027
$14.2M cash ÷ $1.01M net burn a month
- Net burn a month
- $1.01M
- Runway when the Series B process starts in January
- 11.1 months
View the cash projection by month
Hiring plan
We made three of the five hires planned for Q3. We're 41 people today and plan to be 46 by the end of the year. We've paused one sales role until the second inverter supplier is live.
| Role | Team | Planned start | Status |
|---|
Top risks
Four risks we're watching, ordered by how much they could move the plan. The first two are why we're bringing resolutions 1 and 2.
Decisions we need from the board
Mark each resolution as you read. Your marks and notes stay on this page in your browser and aren't sent to anyone unless you email them.
Nothing marked yet. Start with resolution 1.
Appendix
Supporting detail for the numbers above. Open a section to read it; everything prints expanded.
Unit economics of a typical site
500 kWh system, Q3 averages
Installed cost, financed by our project facility
| Battery modules and enclosure | $128,000 |
| Inverter and switchgear | $38,000 |
| Installation and grid connection | $48,000 |
| Installed cost | $214,000 |
Hardware sits in a $40M project facility, so it isn't in our net burn. Revenue less maintenance pays back the installed cost in 64 months; systems are warranted for 12 years.
Each month, per site
| Revenue: subscription $2,400 and grid services $1,150 | $3,550 |
| Hardware depreciation over 12 years | −$1,486 |
| Facility interest | −$410 |
| Monitoring and maintenance | −$200 |
| Gross profit, 41% | $1,454 |
The customer saves $4,900 a month in demand charges on average and pays us $2,400, so they keep about $2 for every $1 they spend with us.
Customer cohorts
Sites grouped by when they went live
| Went live | Installed | Live today | ARR today | ARR per site | Revenue retention |
|---|
Revenue retention compares a cohort's revenue today with its first full year. It rises as we add grid services to older sites. The one site we lost from the second half of 2024 was a store that closed. Cohorts younger than a year don't have a retention figure yet.
How we define the numbers
ARR, net burn, runway and dispatch
- Annual recurring revenue (ARR)
- September's recurring revenue multiplied by 12. It includes customer subscriptions and our share of grid-services income.
- Net burn
- Operating cash out minus cash in. Battery hardware is financed by the project facility and is excluded.
- Runway
- Cash at month end divided by the average monthly net burn over the latest quarter.
- Energy dispatched
- Energy our batteries discharged at customer sites, in megawatt-hours, whether to shave a peak or answer a grid event.