Marlborough-based ConnectM Technology Solutions sold off multiple operating businesses, finalized an acquisition, and reported a going-concern warning as it posted a $6.7 million first-quarter loss.
ConnectM narrowed its losses compared to the $7-million loss in the first quarter of 2025.
The company reported revenue of $8.2 million for the quarter ended March 31, down from $9 million in the first quarter of 2025, according to a May 26 filing with the U.S. Securities and Exchange Commission.
The revenue decline reflected the exit from some ventures, partially offset by $1.9 million in new product sales from Keen Labs, its Marlborough-based AI and energy technology subsidiary, along with some growth elsewhere in the company.
“This quarter’s results reflect deliberate work that does not always show up in a single line item on the income statement,” Bhaskar Panigrahi, chairman and CEO of ConnectM, said in a Thursday earnings announcement. “We are exiting businesses that were not earning their cost of capital and concentrating resources in the parts of ConnectM that compound.”
The company held $2.5 million in cash at quarter end and reported a working capital deficit of $27.42 million. The filing said those conditions raise substantial doubt about the company’s ability to continue as a going concern.
ConnectM transferred its Air Temp Service Co. HVAC operations in New Jersey to a new, unaffiliated company called A.T.S. Heating & Cooling in a transaction involving no cash payment.
The Marlborough company sold Green Energy Gains – a Danvers-based energy audit and weatherization contractor operating under the Mass Save program – to Newton-based Forge Team Inc. for $100,000.
ConnectM began winding down Blue Sky Electric, a division that installed and serviced electrical and energy systems for homes and businesses and ended a standing-service contract to support Florida-based HVAC firm AC Authority.
ConnectM has closed its acquisition of Harry Kahn Associates, a Maryland-based defense contractor. The company paid 400,000 shares of common stock for the firm, which generated approximately $2 million in revenue in 2025. Harry Kahn Associates serves clients including the U.S. Navy, Air Force, Marine Corps, Boeing, Northrop Grumman, and Lockheed Martin.
ConnectM signed an agreement with India-based Blue Cloud Softech Solutions to transfer its India-based distributed energy and transportation operations to Blue Cloud in exchange for approximately 160 million Blue Cloud shares. ConnectM valued the proposed transaction at $39.6 million.
Blue Cloud shareholders approved the deal in May, with closing expected in the fourth quarter.
The company effected a 1-for-32 reverse stock split in April and said it is working with New York-based ThinkEquity as financial advisor toward a planned national exchange uplisting.
ConnectM has traded on the OTCQX market since being delisted from Nasdaq in May 2025.
Eric Casey is the managing editor at Worcester Business Journal, who primarily covers the real estate and banking & finance industries.
