Up 72% and Accelerating
This could become our next multibagger
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Seven months ago, I wrote about a company quietly solving one of the biggest infrastructure challenges in North America.
The power grid - built in the 1960s for one-way power flow - is now struggling to handle rooftop solar pushing electricity backwards, EV chargers pulling 10x normal demand, and AI data centres requiring city-sized power blocks.
Replacing the whole network is a political and financial fantasy.
So utilities are turning to surgical modernization - and one company has spent 35 years building the platform to help them do it.
The thesis was a low-drama compounder with 99.4% customer retention, a hardware-to-software transformation underway via a new flagship product, and a stock trading at a fraction of software peers despite serving 325+ utilities with near-zero churn.
Here’s a link to the original post:
Since then, the stock is up 72%.
Here’s what’s happened over the last seven months to drive that run-up:
Q3 revenue hit a record $14.2 million - up 22.5% year-over-year
Orders converted in the first 9 months reached $54 million - up 35% year-over-year
Their new flagship product expanded to 52 utilities - surpassing internal estimates
The company swung to net income of $384,000 - from a loss of $361,000 the prior year
Book-to-bill ratio hit 1.37x
And then today, this dropped:
4 million endpoints delivered - up from 3.8 million when I first wrote
Factory integration with a major meter manufacturer - modules now embedded directly into meters during manufacturing
New patent secured - protecting their distributed energy resource management capabilities
This company is now on track to become our second multi-bagger - following DBOX, which has already crossed the 100% threshold.
For paid subscribers, I’m going to break down exactly what this news means, why the thesis is stronger than ever in my opinion, and what I’m watching next.