The company exhibits extreme top-line volatility, highlighted by a 146.5% revenue surge in 2025Q2 followed by a 36.7% contraction in 2026Q1, alongside structural margin compression that saw operating margins reach -47.4% in the most recent quarter.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 |
|---|
| Sales/Revenue | 25.15M | 27.63M | 22.88M | 11.12M | 25.88M | 18.31M | 19.49M | 20.58M | 106.39M | 101.39M | 114.4M | 106.52M | 92.19M | 88.16M | 83.96M | 68.79M | 47.24M | 40.6M | 0 |
| Revenue Growth % | -4.38% | 20.75% | 105.82% | -57.04% | 41.32% | -6.05% | -5.31% | -80.65% | 4.93% | -11.37% | 7.4% | 15.54% | 4.57% | 5% | 22.05% | 45.63% | 16.35% | - | - |
| Cost of Goods Sold | 21.32M | 24.2M | 17.36M | 8.89M | 23.05M | 16.92M | 18.61M | 19.42M | 87.14M | 81.4M | 89.5M | 85.42M | 74.02M | 66.39M | 65.02M | 52.81M | 35.64M | 28.73M | 0 |
| COGS % of Revenue | - | 87.6% | 75.9% | 79.98% | 89.08% | 92.39% | 95.48% | 94.34% | 81.91% | 80.28% | 78.23% | 80.19% | 80.29% | 75.31% | 77.44% | 76.77% | 75.44% | 70.78% | - |
| Gross Profit | 3.84M | 3.43M | 5.51M | 2.23M | 2.83M | 1.39M | 881K | 1.17M | 19.25M | 19.99M | 24.9M | 21.11M | 18.17M | 21.77M | 18.94M | 15.98M | 11.6M | 11.86M | 0 |
| Gross Margin % | 15.25% | 12.4% | 24.1% | 20.02% | 10.92% | 7.61% | 4.52% | 5.66% | 18.09% | 19.72% | 21.77% | 19.81% | 19.71% | 24.69% | 22.56% | 23.23% | 24.56% | 29.22% | - |
| Gross Profit Growth % | - | -37.87% | 147.82% | -21.27% | 102.87% | 58.12% | -24.38% | -93.95% | -3.7% | -19.73% | 17.99% | 16.16% | -16.54% | 14.94% | 18.55% | 37.74% | -2.22% | - | - |
| Operating Expenses | 10.1M | 10.02M | 10.76M | 9.26M | 8.64M | 5.25M | 5.17M | 12.92M | 21.46M | 16.71M | 20.74M | 21.19M | 15.22M | 14.72M | 13.18M | 11.07M | 7.91M | 3.95M | 3.5K |
| OpEx % of Revenue | - | 36.27% | 47.04% | 83.3% | 33.37% | 28.7% | 26.5% | 62.76% | 20.18% | 16.48% | 18.13% | 19.9% | 16.51% | 16.7% | 15.7% | 16.09% | 16.74% | 9.73% | - |
| Selling, General & Admin | 9.13M | 9.15M | 0 | 0 | 0 | 0 | 0 | 12.68M | 21.46M | 16.71M | 20.74M | 21.19M | 15.22M | 14.72M | 13.18M | 11.07M | 8.05M | 4.05M | 0 |
| SG&A % of Revenue | - | 33.11% | - | - | - | - | - | 61.61% | 20.18% | 16.48% | 18.13% | 19.9% | 16.51% | 16.7% | 15.7% | 16.09% | 17.04% | 9.98% | - |
| Research & Development | 950K | 875K | 1.05M | 885K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 3.17% | 4.59% | 7.96% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 22K | 0 | 9.71M | 8.38M | 8.64M | 5.25M | 5.17M | 237K | 0 | 0 | 205K | 0 | 0 | 0 | -92K | 0 | -139K | -104.41K | 3.5K |
| Operating Income | -6.27M | -6.59M | -5.25M | -7.04M | -5.81M | -3.86M | -4.28M | -11.75M | -1.87M | 3.39M | 2.1M | -5.3M | 1.75M | 7.13M | 5.95M | 4.71M | 3.69M | 7.92M | -3.5K |
| Operating Margin % | -24.92% | -23.87% | -22.94% | -63.29% | -22.45% | -21.09% | -21.98% | -57.1% | -1.76% | 3.34% | 1.84% | -4.98% | 1.9% | 8.09% | 7.08% | 6.85% | 7.81% | 19.5% | - |
| Operating Income Growth % | - | -25.67% | 25.4% | -21.08% | -50.44% | 9.85% | 63.55% | -527.5% | -155.3% | 61.06% | 139.68% | -402.86% | -75.47% | 19.96% | 26.26% | 27.64% | -53.39% | 226291.14% | - |
| EBITDA | -4.97M | -5.43M | -4.4M | -6.31M | -5.34M | -3.42M | -3.82M | -10.64M | 1.43M | 6.98M | 4.92M | -2.14M | 3.35M | 8.69M | 7.48M | 5.8M | 4.46M | 8.08M | -3.5K |
| EBITDA Margin % | -19.75% | -19.66% | -19.24% | -56.8% | -20.65% | -18.7% | -19.6% | -51.71% | 1.35% | 6.89% | 4.3% | -2.01% | 3.63% | 9.86% | 8.91% | 8.43% | 9.44% | 19.91% | - |
| EBITDA Growth % | 39.17% | -23.35% | 30.27% | -18.15% | -56.07% | 10.37% | 64.1% | -843.68% | -79.5% | 41.75% | 330.03% | -163.89% | -61.43% | 16.12% | 29.11% | 30.04% | -44.87% | 231080.11% | - |
| D&A (Non-Cash Add-back) | 1.3M | 1.16M | 845K | 721K | 466K | 438K | 464K | 1.11M | 3.3M | 3.59M | 2.82M | 3.16M | 1.6M | 1.55M | 1.54M | 1.09M | 767K | 167.61K | 0 |
| EBIT | -6.52M | -6.59M | -5.25M | -7.04M | -5.81M | -3.86M | -4.28M | -11.75M | -9.13M | -3.42M | 4.12M | -7.83M | 837K | 6.71M | 5.86M | 3.89M | 3.46M | 7.92M | 4.01M |
| Net Interest Income | 648K | 739K | 431K | 232K | 465K | 387K | 334K | -396K | -916K | 2.46M | -1.74M | -748K | -582K | -754K | -933K | -646K | -182K | -312K | 0 |
| Interest Income | 648K | 739K | 431K | 232K | 465K | 387K | 334K | 0 | 0 | 2.46M | 0 | 0 | 0 | 0 | 0 | 0 | 1K | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 396K | 916K | 0 | 1.74M | 748K | 582K | 754K | 933K | 646K | 183K | 311.5K | -3.5K |
| Other Income/Expense | -537K | 221K | 481K | 756K | 398K | 1.68M | 1.3M | 994K | -2.33M | -3.64M | -1.19M | -3.28M | -1.5M | -1.18M | -1.02M | -1.47M | -417K | -312K | 3.5M |
| Pretax Income | -6.81M | -6.37M | -4.77M | -6.28M | -5.41M | -2.18M | -2.98M | -10.76M | -5.36M | 857K | 572K | -8.58M | 255K | 5.95M | 4.92M | 3.24M | 3.27M | 7.61M | 0 |
| Pretax Margin % | -27.06% | -23.07% | -20.84% | -56.49% | -20.91% | -11.92% | -15.29% | -52.27% | -5.04% | 0.85% | 0.5% | -8.06% | 0.28% | 6.75% | 5.86% | 4.72% | 6.93% | 18.73% | - |
| Income Tax | 74K | 74K | -1.42M | 0 | 7K | -16K | 5K | 1.28M | 303K | 3.55M | 1.14M | -2.7M | 523K | 682K | 1.73M | 773K | 327K | 2.49M | 3.5K |
| Effective Tax Rate % | -1.09% | -1.16% | 29.75% | 0% | -0.13% | 0.73% | -0.17% | -11.88% | -5.65% | 414.7% | 199.48% | 31.48% | 205.1% | 11.46% | 35.21% | 23.83% | 9.99% | 32.74% | - |
| Net Income | -6.98M | -6.45M | 31.86M | -1.9M | -5.42M | -2.17M | -2.99M | -1.03M | -5.66M | -9.34M | -569K | -5.88M | -268K | 5.27M | 2.99M | -60K | 2.95M | 5.12M | -3.5K |
| Net Margin % | -27.75% | -23.34% | 139.23% | -17.07% | -20.94% | -11.83% | -15.32% | -5.01% | -5.32% | -9.22% | -0.5% | -5.52% | -0.29% | 5.98% | 3.56% | -0.09% | 6.24% | 12.6% | - |
| Net Income Growth % | -121.84% | -120.24% | 1778.35% | 64.98% | -150.07% | 27.43% | -189.34% | 81.78% | 39.38% | -1542.18% | 90.32% | -2094.4% | -105.09% | 76.25% | 5083.33% | -102.04% | -42.41% | 146248.34% | - |
| Net Income (Continuing) | -6.88M | -6.45M | -3.35M | -6.28M | -5.42M | -2.17M | -2.99M | -12.04M | -9.31M | -9.22M | 1.45M | -5.88M | -268K | 5.27M | 3.19M | 2.47M | 3.23M | 5.12M | 2.14M |
| Discontinued Operations | -100K | 0 | 35.2M | 4.38M | 0 | 0 | 0 | 11.01M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.63 | -0.54 | 2.90 | -0.19 | -0.37 | -0.24 | -0.34 | -1.38 | -0.65 | -1.07 | -0.07 | -0.76 | -0.04 | 0.84 | 0.51 | -0.01 | 0.50 | 1.10 | -0.00 |
| EPS Growth % | -122.42% | -118.62% | 1626.32% | 48.65% | -54.17% | 29.41% | 75.36% | -112.31% | 39.25% | -1536.09% | 91.39% | -1937.53% | -104.44% | 64.71% | 5149.51% | -102.02% | -54.55% | - | - |
| EPS (Basic) | - | -0.54 | 2.97 | -0.19 | -0.37 | -0.24 | -0.34 | -1.38 | -0.65 | -1.07 | -0.07 | -0.76 | -0.04 | 0.84 | 0.51 | -0.01 | 0.50 | 1.10 | -0.00 |
| Diluted Shares Outstanding | 11.1M | 11.19M | 10.95M | 9.91M | 9.73M | 8.86M | 8.73M | 8.73M | 8.73M | 8.72M | 8.7M | 7.75M | 7.18M | 6.3M | 5.91M | 5.95M | 5.93M | 4.66M | 1.2M |
| Basic Shares Outstanding | 11.1M | 11.1M | 10.75M | 9.91M | 9.73M | 8.86M | 8.73M | 8.73M | 8.7M | 8.7M | 8.7M | 7.74M | 7.18M | 6.26M | 5.91M | 5.91M | 5.87M | 4.66M | 1.2M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 52.9% | - |
Persistent Operating Margin Deficit
As reported in recent financial filings, PPSI's revenue trajectory remains highly erratic, characterized by significant quarterly fluctuations such as the 146.5% growth in 2025Q2 followed by a 36.7% contraction in 2026Q1, suggesting that the company's project-based business model lacks consistent, predictable top-line momentum.
The reliance on large-scale, lumpy project completions creates substantial revenue volatility that complicates long-term forecasting. Investors should monitor whether the company can transition toward a more recurring revenue model, as the current reliance on intermittent equipment sales appears to hinder sustainable growth durability.
Based on the company's reported figures, gross margins have struggled to maintain stability, oscillating between a low of -3.8% in 2023Q4 and a peak of 43.2% in 2024Q4, which indicates a lack of consistent pricing power and significant exposure to volatile input costs.
The inability to consistently expand gross margins suggests that PPSI may be absorbing high initial engineering and component costs for its newer product lines. This margin profile warrants further investigation into whether the company can achieve the necessary manufacturing scale to offset its variable cost structure.
According to the income statement data, PPSI continues to exhibit negative operating leverage, with operating margins reaching -47.4% in 2026Q1, demonstrating that the company's fixed overhead and SG&A expenses are currently scaling significantly faster than its ability to generate incremental gross profit.
The persistent gap between revenue growth and operating income suggests that the company's current cost structure is misaligned with its revenue base. Without a significant increase in throughput or a reduction in fixed operating expenses, the company appears to face a challenging path toward achieving operational break-even.
As evidenced by the 2024Q4 net income spike to $36.3 million, the company's bottom-line results are frequently distorted by non-operating items, which masks the underlying operational performance and makes traditional EPS analysis less reliable for assessing the firm's true earnings power.
Investors should be cautious when interpreting net income figures, as they appear heavily influenced by one-time events rather than core operational profitability. The frequent reliance on stock-based compensation and non-operating gains suggests that the quality of reported earnings remains low and warrants careful scrutiny.
Based on the provided financial statements, the primary risk to the investment thesis is the company's inability to convert its 20% revenue growth into positive operating cash flow, which raises concerns regarding the long-term viability of its current capital-intensive, project-based industrial strategy.
Short-sellers would likely focus on the persistent operating losses and the potential for inventory obsolescence within the Critical Power segment. The company's reliance on cash reserves to fund ongoing operations suggests that the current growth trajectory may be unsustainable without a fundamental improvement in unit economics.
Quick answers to the most common questions about buying PPSI stock.
For fiscal year 2025, Pioneer Power Solutions, Inc. (PPSI) reported total revenue of $27.6M.
Pioneer Power Solutions, Inc. (PPSI) reported a net loss of $6.4M for the fiscal year ending 2025.
Pioneer Power Solutions, Inc. (PPSI) reported an operating income of $-6.6M, resulting in an operating profit margin of -23.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Pioneer Power Solutions, Inc. (PPSI) generated $3.4M in gross profit for the year, representing a gross profit margin of 12.4%. This demonstrates the company's core pricing power and production efficiency.