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  5. GRID: Based on your last comments on Tantalus Systems (GRID) can you comment on yesterday’s earnings release. [Tantalus Systems Holding Inc.]
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Q: Based on your last comments on Tantalus Systems (GRID) can you comment on yesterday’s earnings release. It looks great from what I see but I’ll leave the professional analysis to you guys. Based on your last comments is insider ownership the same? Is management doing a great job? Can you also comment on their 3rd Annual Utility of the Future report they posted at a the end of April please. Lastly can you update me in the Conguitive acquisition.

Feel free to answer after their conference call.

Asked by James on May 08, 2025
5i Research Answer:

EPS of ($0.026) missed estimates of ($0.024) and sales of $15.97M missed estimates of $16.18M. Sales grew 27% year-over-year, and revenue from connected devices and infrastructure increased 34%, and utility software applications and services sales grew 14%. Gross margins were 55%, an increase of 130 basis points from last year, and it generated cash from operations of $3.2M. We see 19% insider ownership, with some recent purchases in March. We think management has done a great job of improving operational efficiency, growing sales, and the company is trading at a decent valuation of 1.6X forward sales. The annual utility of the future report notes a critical need for utilities to enhance their preparedness in key areas like: investing in data management solutions, strengthening cybersecurity, addressing workforce challenges, and enhancing resilience against extreme weather. 

GRID acquired Congruitive in 2022 which enhanced its interoperability and ability to expand into new markets. It enables GRID to address the growing need for data-centric solutions in grid modernization efforts.