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Complete Solaria, Inc. (CSLR)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 revenue was $81.103M with 37% gross margin; operating expenses fell sharply, and the company finished the quarter with $13.308M in cash .
  • Management guided to Q1 2025 revenue of $82.0M and targeted non-GAAP operating income breakeven, pulling forward the profitability timeline versus prior quarter expectations .
  • The integration of SunPower assets is “substantially complete,” headcount reduced from 3,499 in October to 1,140 by Q4-end with a target of 980, and OpEx less commissions dropped from $84M in Q3 to $19.8M in Q4 .
  • Catalysts: integration execution, aggressive cost takeout, SunPower brand rights, and guidance toward breakeven in Q1 2025; management emphasized confidence while acknowledging seasonality and remaining execution risks .

What Went Well and What Went Wrong

What Went Well

  • “Our $81.1 million revenue last quarter re-defined our company,” beating the internally communicated $80M forecast; gross margin improved to 37% (GAAP and non-GAAP) with materially lower fixed costs .
  • Integration milestones: “The SunPower integration is substantially complete,” leadership hires in New Homes and Blue Raven, consolidation of IT onto Blue Raven’s Albatross platform to cut expensive software stacks .
  • OpEx efficiency: OpEx less commissions fell from $84M in Q3 to $19.8M in Q4, and management targets another 30% reduction in Q1; breakeven non-GAAP operating income guided for Q1 2025 .

What Went Wrong

  • Dealer division missed plan materially; headcount cut from ~140 to 5 and merged into Blue Raven, reflecting unstable third-party dealer economics and cancellation risk .
  • GAAP operating loss remained high due to acquisition and restructuring charges; Q4 GAAP operating loss was $(29.586)M while non-GAAP net loss was $(5.940)M .
  • New Homes backlog attrition after SunPower’s bankruptcy: management and GM estimate 20–30% loss, requiring relationship rebuilding and customer support programs (e.g., battery monitoring arrangements) .

Financial Results

MetricQ1 2024Q2 2024Q3 2024Q4 2024
Revenue ($USD Thousands)$10,040 $4,492 $5,536 $81,103
Gross Margin (%)23% -20% -57% 37%
Operating Expenses ($USD Thousands)$9,827 $8,602 $26,813 $35,721
OpEx less Commissions ($USD Thousands)$6,711 $7,297 $19,543 $19,764
GAAP Operating Income/(Loss) ($USD Thousands)$(7,544) $(9,494) $(29,770) $(29,586)
Non-GAAP Operating Income/(Loss) ($USD Thousands)$(5,440) $(5,333) $(6,877) $(5,940)
Cash Balance ($USD Thousands)$5,615 $5,677 $83,343 $13,308

Notes and reconciliations: Q4 non-GAAP adjustments included D&A ($1,105K), SBC ($9,770K), and restructuring/acquisition charges ($12,771K); total non-GAAP adjustments $23,646K .

Segment revenue (where disclosed):

SegmentQ3 2024 Combined NewCoQ4 2024
New Homes ($USD Millions)$53.2 Not disclosed
Blue Raven Solar ($USD Millions)$43.5 Not disclosed
Dealer (+ CSLR) ($USD Millions)$20.6 Dealer downsized; no Q4 revenue disclosed
Total ($USD Millions)$117.3 $81.1 (company total)

Selected KPIs and Operating Metrics:

KPIQ1 2024Q2 2024Q3 2024Q4 2024Q1 2025 Guide
Headcount (approx.)——Started at 3,499 in Oct; reduced to ~1,257 early 1,140 at Q4-end; target 980 Target 980 maintained
OpEx less Commissions ($USD Millions)$6.711 $7.297 $84.0 (non-GAAP, call framing) $19.8 (non-GAAP) Drop another ~30%
Cash Balance ($USD Millions)$5.615 $5.677 $83.343 $13.308 “Will be going up” (operating cash)
Revenue ($USD Millions)$10.040 $4.492 $5.536 $81.103 $82.0 guide
Employee bonus ($USD Millions)———$1.14 (for “all hands equally”) —

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueQ4 2024$100M in investor five-quarter plan Revised to $80M in Nov; actual delivered $81.103M Lowered; then delivered above revised guide
RevenueQ1 2025—$82.0M New guide
Operating Income (non-GAAP)Q1 2025First profitable quarter in Q2 2025 (prior plan) Breakeven operating income in Q1 2025 Pulled forward (raised)
OpEx less CommissionsQ1 2025—Reduce another ~30% q/q New efficiency target
Headcount2025 run-rateTarget implied by $80M breakeven: 980 Target maintained at 980 Maintained

Management reiterated seasonality headwind in Q1 but expects to “buck” it via operational execution when guiding to $82.0M .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q4 2024)Trend
Integration & Cost TakeoutQ3: Consolidation underway; plan to cut OpEx to ~$17M in Q4 Integration “substantially complete”; OpEx less commissions to $19.8M; further 30% cut guided Improving; execution ahead of plan
Profitability TimelineQ3: First profitable quarter planned for Q2 2025 Breakeven non-GAAP operating income in Q1 2025 Pulled forward
SunPower Brand & RightsQ3: Won brand rights; price premium potential Intends to leverage brand; timing of name change TBD Strategic asset; deliberate rollout
Dealer StrategyQ3: Dealer economics unstable; high acquisition cost Dealer downsized; integrated into Blue Raven Rationalization complete
C&I OpportunitiesQ3: 57 Starbucks installations; opportunistic C&I 57/“dealt with” Starbucks reiterated; C&I via existing divisions Adjacent growth, asset-light
Supply Chain & BacklogQ3: Backlog boosted Q3 combined $117.3M; normalization ahead New Homes backlog attrition 20–30%; rebuilding relationships Stabilizing after bankruptcy shock
Policy/MacroQ3: Tax credits likely remain; investor sentiment reflected Similar stance; seasonality acknowledged Neutral to cautiously constructive

Management Commentary

  • “Our $81.1 million revenue last quarter re-defined our company with annualized revenue of $324 million and a loss of $5.94 million…that will not survive in 2025.”
  • “We’re forecasting non-GAAP operating income at breakeven in Q1 2025…that number is plus $800,000…a kind of fragile margin.”
  • On integration: “The SunPower integration is substantially complete…we’ve got our GMs in place.”
  • On cost: “OpEx…went from $94 million in Q3 to $35 million in Q4…OpEx without commissions from $84 million to $20 million…planning on dropping another 30% in Q1.”
  • On Dealer: “We’re cutting our head count from 140 to 5 in the dealer division…merged into Blue Raven.”
  • On New Homes: “We lost 20–30% of new homes business…we’re rebuilding relationships and putting customer support programs in place.”

Q&A Highlights

  • New Homes backlog and churn: Builders initially reduced exposure post-bankruptcy; CSLR estimates 20–30% attrition but is rebuilding backlog (>10,000 homes) and providing battery monitoring solutions via partners to restore confidence .
  • SunPower brand leverage: CSLR owns the name and plans to deploy it strategically; timing of corporate name change TBD, balancing internal culture with brand equity .
  • C&I pipeline: 57 Starbucks projects executed; C&I to be served opportunistically through New Homes/Blue Raven rather than separate division .
  • Cost reduction runway and breakeven risks: Additional rent and software rationalization pending; breakeven forecast acknowledged as aggressive with limited cushion (~$0.8M) .
  • M&A appetite: Preference for disciplined, cash-efficient acquisitions with strong practices/customers; avoid aggregations of weak companies .

Estimates Context

  • S&P Global Wall Street consensus (Revenue, EPS, # of estimates) was unavailable for CSLR due to missing Capital IQ mapping, so we cannot provide consensus comparisons for Q4 2024. We attempted retrieval but could not access estimates (SPGI mapping error).
  • Company-level internal expectation context: Q4 2024 revenue delivered $81.103M versus internally communicated $80M forecast in November .
  • If you need a consensus comparison, we will re-run once S&P Global mapping is updated.

Key Takeaways for Investors

  • Q4 established a post-merger baseline: $81.1M revenue, 37% GM, with material fixed-cost compression; watch Q1 for breakeven delivery (non-GAAP) and whether seasonal headwinds are offset by backlog and execution .
  • Integration and cost actions are tracking ahead: headcount down to 1,140 (target 980), IT consolidation, leases exited; further 30% OpEx-less-commissions reduction guided for Q1 .
  • Mix evolution: Dealer downsized; focus on New Homes (more profitable) and Blue Raven (vertically integrated) should improve stability and margins as cancellations normalize .
  • Brand optionality: SunPower name rights and perceived pricing premium offer a strategic lever; management is methodical about rollout and culture alignment .
  • Execution risks remain near term: tight breakeven cushion, audit timing, seasonality; monitor cash trajectory (management expects operating cash to improve in 2025) .
  • Medium-term thesis: disciplined M&A, technology partnerships, and operational discipline could support revenue scale-up and margin recovery as macro stabilizes; management targets sustainable profitability and leverages brand equity .

Disclosures:

  • All financials and commentary above are sourced from the company’s Q4 2024 8-K and press release, Q4 earnings call transcript, and Q3 2024 filings/transcripts: .
  • S&P Global consensus estimates were unavailable due to CIQ mapping for CSLR at time of retrieval attempt.