“Wow, we really dodged the bullet. Maybe a million customers lost service, but none of the grids went down. Anyway, you can’t really prepare for freak events. Congrats on a job well done!” You can just imagine the imaginary manager of the imaginary US electric grid control center telling that to the frazzled staff after that fierce winter storm dubbed Fern. Of course, a number of power plants (largely gas-fired) stopped operating, power lines went down, and in some parts, even a week later, there was still ...

Financial Performance - Revenue for Q3 2025 reached $38 million, a 31% increase year-over-year (YoY)[6] - Operating cash flow was $11 million, a $21 million increase YoY[6] - Adjusted EBITDA was $2 million, a $6 million increase YoY[6] - GAAP gross margin was 35%, a 14 percentage point increase YoY, while non-GAAP gross margin was 47%, a 1 percentage point increase YoY[6] - Cash operating expenses decreased by 47% YoY[11] Operating Metrics - Annual Recurring Revenue (ARR) reached $60 million, a 3% increase quarter-over-quarter (QoQ) and a 17% increase YoY[6] - Storage Assets Under Management (AUM) increased by 6% QoQ, while Solar AUM increased by 4% QoQ[6] - Bookings decreased sequentially due to a strategic de-emphasis on low-margin battery hardware[20] Guidance Update - Total revenue guidance for 2025 is updated to $135 million - $160 million[22] - Software, edge hardware, & services revenue guidance for 2025 is updated to $125 million - $140 million[22] - Non-GAAP gross margin % guidance for 2025 is updated to 40% - 50%[22] - Adjusted EBITDA guidance for 2025 is updated to ($5) million - $5 million[22]

Core Insights - The USA is experiencing a significant infestation of the New World Screwworm Fly, prompting Agriculture Secretary Betty Rollins to declare an emergency and close the border to beef exports from Mexico [1] - A bipartisan group of six lawmakers is working to address the infestation, and the company is reaching out to them to promote an all-natural, environmentally friendly product produced in the USA [2] - The company's scientific team has found that its product, SGP+™, can effectively prevent the screwworm fly from affecting cattle, which is crucial for the beef and dairy industries [3][4] Company Initiatives - Impact Fusion is actively engaging with lawmakers to inform them about its environmentally friendly product that can combat the screwworm infestation [2] - The company is collaborating with researchers at Texas A&M to explore the positive impact of SGP+™ on the New World Screwworm Fly crisis [3] - The CEO of Impact Fusion believes the company is well-positioned to provide cost-effective solutions that enhance herd performance in an environmentally sustainable manner [4] Industry Context - The infestation poses a serious threat to the American beef cattle and dairy industries, which could have broader implications for food supply [1] - The ongoing climate change issues, such as temperature extremes and shifting wind and ocean currents, are exacerbating agricultural challenges [3] - The company's focus on health and wellness products for both humans and animals aligns with the growing demand for sustainable agricultural practices [5]