It was a rough Wednesday for Hyliion Holdings Corp. (HYLN) shareholders. The stock was down about 14.5% after the company delivered a classic "good news, bad news" earnings report the night before.

Here's the financial snapshot: Hyliion reported a loss of 8 cents per share, which was actually a beat—analysts were expecting a loss of 9 cents. The problem was on the top line. The company brought in $759,000 in sales for the quarter, but Wall Street was looking for $1.65 million. That's a pretty big miss, and it's the kind of thing that tends to overshadow a slightly-better-than-expected loss.

So what's the company doing with that money? A lot of the focus is on its KARNO Power Module, a generator technology that can run on natural gas or propane. Hyliion says it's now meeting the performance requirements of its initial customers, which should allow for more real-world deployments. They've completed over 100 days of operational testing with no unplanned hardware downtime, and they say the emissions performance beats even the strictest local standards.

In a bit of helpful regulatory news, the company received confirmation from the Environmental Protection Agency that the KARNO system is not federally regulated. That simplifies things for customers looking to deploy it. Hyliion also demonstrated that the system can switch between natural gas and propane on the fly without losing power.

"We are now meeting our initial customers' performance requirements, enabling further system deployments in real-world applications," said CEO Thomas Healy.

Looking ahead, the company is sitting on a cash pile of $165 million. It expects to generate about $4 million in revenue for the full year 2025, which suggests the near-term sales ramp will be gradual. The big target is 2026, which is when Hyliion aims to fully commercialize the KARNO Power Module.

For now, investors seem focused on the revenue miss today rather than the potential commercialization in 2026. At last check, Hyliion shares were trading around $1.86.