Sign in

You're signed outSign in or to get full access.

CS

Complete Solaria, Inc. (CSLR)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 delivered $80.2M revenue and positive non-GAAP operating income of $1.3M (first profitable quarter in four years), while GAAP operating loss was $(8.9)M; gross margin was 36% .
  • Sequentially, revenue fell versus Q4 2024 due to harmonized rev-rec (Q4 2024 revenue $88.7M), but operating performance improved with cost resets; cash increased to $14.0M from $13.3M .
  • Guidance signaled “steady revenue and positive operating income again next quarter”; the forward-looking section also references breakeven OI in Q2’25—management commentary and legal boilerplate are not fully aligned (actionable tone: positive OI; caution: footnote breakeven) .
  • Strategic catalysts: rebranding to SunPower (SPWR) effective April 22, partnership with Sunder for sales ramp in Q3’25, and board additions (ex-CEO directors) to support execution and M&A .
  • Wall Street consensus (S&P Global/CIQ) for Q1 2025 was unavailable for CSLR/SPWR during the rebranding transition; estimate comparisons are not possible at this time (values unavailable; S&P Global data mapping gap).

What Went Well and What Went Wrong

What Went Well

  • “First profitable quarter in four years” on a non-GAAP operating basis (+$1.274M), supported by lean staffing and headcount reductions ahead of plan .
  • Headcount cut from 3,499 at launch (Oct 1, 2024) to 906 by Q1’25, surpassing the 980 target; management asserts this staffing makes profitability feasible at a $300M annualized revenue run-rate .
  • Strategic hiring and board strengthening: Dr. Richard Swanson (SunPower founder) advising technology, Dr. Mehran Sedigh as CTO (ex-Enphase battery BU), and three ex-CEO directors (Maier, McCranie, Haenggi) .

What Went Wrong

  • GAAP results still show operating loss in Q1’25 of $(8.876)M due to D&A, stock comp, and non-recurring items from the SunPower asset purchase .
  • Sequential revenue decline versus harmonized Q4’24 ($80.2M vs $88.7M), and PR notes Q4’24 gross margin was inflated by jobs with no COGS from SunPower—limiting forward extrapolation of that margin .
  • Industry and regulatory headwinds persist: tariff exposure (AD/CVD investigations and safeguard measures), NEM 3.0 reducing residential solar economics, and going-concern and capital access risks highlighted in the 10-K .

Financial Results

MetricQ3 2024 (Unofficial combined)Q4 2024 (Audited/harmonized)Q1 2025 (Prelim)
Revenue ($USD Millions)$117.0 $88.7 $80.2
Gross Margin (%)N/A47% 36%
GAAP Operating Income ($USD Millions)$(39.6) (Operating loss) $(21.5) $(8.9)
Non-GAAP Operating Income ($USD Millions)N/A$(5.9) $1.3
Cash and Equivalents ($USD Millions)N/A$13.3 $14.0

Notes and cross-references:

  • Q3’24 figures are management’s combined, unofficial sums for the three businesses pre-integration; audited harmonized rev-rec introduced in Q4’24 .
  • PR explicitly cautions Q4’24 gross margin was inflated by jobs purchased at no COGS and should not be used for forward projections .
  • GAAP vs Non-GAAP differences reflect D&A of intangibles, stock-based compensation, and restructuring/acquisition impacts; reconciliation provided in Exhibit 99.1 .

KPIs and Operating Metrics

KPIQ3 2024Q4 2024Q1 2025
Headcount (employees)3,499 at launch (Oct 1, 2024) 1,140 at quarter-end 906 (ahead of 980 target)
Operating Expenses ($USD Thousands, GAAP)N/A62,769 27,366
Operating Expenses less commission ($USD Thousands, GAAP)N/A49,870 12,270

Disclosure notes:

  • Management also referenced Q4’24 non-GAAP OpEx less commissions at $19.7M during the Q4 call; PR tables reflect harmonized policies for the combined company and differ from earlier unaudited letter metrics—use caution and prefer audited/harmonized presentations for comparability .

Segment Breakdown

  • The company emphasized it now operates through Blue Raven (direct-to-consumer) and New Homes; the dealer network was wound down, but segment revenue/margin detail was not disclosed in Q1’25 PR or filings .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueQ2 2025No numeric range provided; the Q4’24 call discussed bucking winter seasonality and improving sequentially (Q1 guide was ~$82M) “Steady revenue” versus Q1 run-rate (qualitative) Maintained (qualitative)
Operating Income (Non-GAAP)Q2 2025Breakeven (referenced in forward-looking statements) “Positive operating income again next quarter” (management narrative); forward-looking section references breakeven Mixed signals; management tone suggests raised to positive OI, legal boilerplate cites breakeven

Additional outlook commentary:

  • Growth expected from Sunder sales partnership beginning Q3’25 .
  • More detailed forecast and growth plan to be provided at May annual meeting .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024)Previous Mentions (Q4 2024)Current Period (Q1 2025)Trend
Headcount & Cost ControlsAggressive plan post SunPower asset purchase; cut from ~2,800+ to targeted ~980; OpEx reduction path outlined Cut from 2,800 to 1,200 and continued reductions; leases/software rationalization; Albatross IT consolidation Staff at 906, ahead of 980 target; profitability feasible at $300M run-rate; non-GAAP OI positive Improving execution and structural cost base
Tariffs/Macro/PolicyNEM 3.0 risk; macro headwinds discussed broadly Discussed industry winter seasonality and interest rate impacts Detailed 10-K disclosure of AD/CVD actions, safeguard tariffs; NEM 3.0 impacts in CA Persistent headwinds; vigilance required
Product/Battery & ServiceLegacy SunVault monitoring solution with Hannon Armstrong to stabilize service Ongoing quality and customer service emphasis Tech leadership additions; battery/storage expertise (Sedigh); plan to pursue panel/storage innovation Building technology credibility
Sales ChannelsDealer channel high cost, unstable—rationalized; focus on Blue Raven + New Homes Blue Raven and New Homes as core; daily revenue management Sunder partnership to accelerate top-line in Q3’25 Shift to owned and strategic channels
Brand/RebrandingPursuit of SunPower naming rights; brand premium potential Integration narrative and name value highlighted Rebranded to SunPower (SPWR) effective April 22, 2025 Branding upgrade completed

Management Commentary

  • “The rebranding also fortuitously coincides with SunPower’s first profitable quarter in four years.” — T.J. Rodgers, CEO (non-GAAP operating profit basis) .
  • “We are at the right headcount to be profitable at $300 million in annualized revenue.” .
  • “We forecast steady revenue and positive operating income again next quarter.” .
  • Strategic adds: “We hired Dr. Richard Swanson… to advise us on technology, as well as our new CTO, Dr. Mehran Sedigh…” .

Q&A Highlights

  • Cost reduction durability: Management indicated heavy lifting done; incremental savings from rent and software rationalization; cautioned fragile margin for early profit targets .
  • Channel strategy: Dealer business deemed unstable/expensive (c.30% of order value); focus on Blue Raven (own dealer) and New Homes .
  • Growth/M&A: Preference for solid operators with prudent cash histories; opportunistic commercial projects (e.g., Starbucks installations) without launching a separate division .
  • Forecasting discipline: Daily revenue tracking used to hit quarter targets; end-of-quarter cadence managed to preserve backlog for subsequent quarter .

Estimates Context

  • S&P Global consensus estimates for CSLR/SPWR Q1 2025 were unavailable due to mapping/data transition during rebranding; therefore, beats/misses versus the Street cannot be assessed at this time (S&P Global CIQ mapping gap; no usable estimate values returned).

Key Takeaways for Investors

  • Non-GAAP operating profitability achieved ahead of plan; GAAP remains loss-making due to integration and non-cash items—focus on sustained non-GAAP OI and conversion to GAAP over time .
  • Structural cost resets and headcount discipline are the primary drivers of margin stabilization; continued lease/software rationalization supports Opex leverage .
  • Near-term narrative hinges on delivering “steady revenue” and positive OI in Q2’25—watch for clarity at/after the May annual meeting and reconcile management tone with legal guidance language .
  • Strategic sales partnership (Sunder) is a tangible Q3’25 top-line catalyst; assess conversion into backlog and installation throughput .
  • Rebranding to SunPower (SPWR) may enhance pricing power and customer acquisition; avoid extrapolating Q4’24 gross margin given one-time COGS dynamics; normalize expectations around 30–40% GM ranges referenced in PR/calls .
  • Policy/tariff and NEM 3.0 pressures remain material; monitor AD/CVD outcomes and CPUC impacts on residential demand in CA—risk to volume/mix and margins .
  • Liquidity and capital access risks flagged in 10-K (going concern, delayed filings/Nasdaq notice now addressed); evaluate cash generation and potential financing needs against growth ambitions .

Appendix: Additional Relevant Q1 2025 Press Releases and Filings

  • Nasdaq deficiency notice due to late 10-K filing (addressed by April 30 filing); CEO emphasized no penalty and no shareholder impact .
  • SunPower Vision message: aspirational path to >$1B run-rate via acquisitions and tech partnerships, with emphasis on disciplined integration and storage/panel innovation (vision, not forecast) .