Shares declined 2.7% following the earnings release as investors reacted to ongoing deceleration in a key segment and cautious outlook despite some sequential margin improvement and growing order momentum in specific verticals.

• Revenue improved 32% sequentially from Q4 2025 but was held back by a non-repeating large water for energy delivery from the prior year’s quarter and timing of order conversions.
• Gross margin expanded by approximately 1,290 basis points sequentially, reflecting operational improvements and portfolio transition.
• Commercial pool and marine segments showed meaningful revenue growth year-over-year, with pool revenue increasing to $0.8 million from $0.3 million and marine doubling from $0.2 million to $0.8 million.
• Management reiterated full-year revenue guidance of $23 million to $27 million, signaling no upward revision amid ongoing market uncertainties.
• The business remains in transition toward more repeatable, service-supported platforms but continues to face challenges in visibility and order pacing, particularly in the water for energy segment.