Executive Summary

Q2 2023 revenue was $25.0M, up 51.8% year over year; gross margin expanded 90 bps to 23.7%, and operating loss narrowed to $1.8M as efficiencies took hold .
Management reaffirmed FY2023 revenue guidance of $95–$100M and expects continued gross margin expansion and adjusted EBITDA profitability by year-end 2023 .
Backlog remained sizable at $161.8M, supported by $8.0M of new awards in Q2 and $40.0M YTD, underpinning visibility into 2H execution .
Trend vs prior quarter: revenue rose from $17.4M in Q1 to $25.0M in Q2; gross margin improved from 20.5% to 23.7%, and operating loss improved from $2.7M to $1.8M .
Street consensus (S&P Global) for Q2 2023 EPS/revenue was unavailable due to mapping constraints; use press-release and historical context for evaluation [GetEstimates error].

What Went Well and What Went Wrong

What Went Well

Commercial and industrial execution accelerated, driving 51.8% YoY revenue growth; CEO: “We are continuing to benefit from positive momentum… as we generated 51.8% higher revenue… leveraging… climate legislation and higher customer interest” .
Margin expansion: gross margin rose to 23.7% (+90 bps YoY), aided by synergies, higher productivity, and improved labor utilization after consolidating the C&I divisions .
Contracting momentum: $8.0M new awards in Q2; $40.0M in 1H23; backlog at $161.8M supports revenue visibility .

What Went Wrong

GAAP profitability remained negative: Q2 operating loss was $1.8M (vs $5.6M prior-year), and net loss was $2.5M or ($0.13) per share, though the losses narrowed .
Adjusted EBITDA was still negative at ($0.6)M in Q2, despite improvement from ($3.2)M in Q2 2022; underlying efficiency gains not yet sufficient for sustained profitability .
Residual supply chain constraints persisted (albeit lessened), which management cited as ongoing headwinds even as productivity improved .

Financial Results

Consolidated Financials (YoY and Sequential)

Metric	Q2 2022	Q4 2022	Q1 2023	Q2 2023
Revenue ($USD Millions)	$16.5	$25.9	$17.4	$25.0
Gross Margin (%)	22.8%	21.0%	20.5%	23.7%
Operating Income (Loss) ($USD Millions)	($5.6)	($2.1)	($2.7)	($1.8)
Net Income (Loss) ($USD Millions)	($5.7)	($3.1)	($3.0)	($2.5)
EPS (GAAP, Basic/Diluted) ($)	($0.40)	($0.12)	($0.19)	($0.13)

Notes: Period columns are ordered oldest to newest for comparability.

Segment Revenue (2023 Quarters)

Segment	Q1 2023	Q2 2023
Residential ($USD Millions)	$6.9	$9.3
Commercial & Industrial ($USD Millions)	$10.3	$15.6
Utility & Development ($USD Millions)	$0.2	$0.1

KPIs and Operating Metrics

KPI	Q4 2022	Q1 2023	Q2 2023
Backlog ($USD Millions)	$164.2	$178.8	$161.8
New Awards in Period ($USD Millions)	$11.0	$32.0	$8.0
YTD Revenue ($USD Millions)	N/A	N/A	$42.4

Non-GAAP

Metric	Q2 2022	Q1 2023	Q2 2023
Adjusted EBITDA ($USD Millions)	($3.2)	($1.5)	($0.6)
Adjusted EPS ($)	($0.23)	($0.10)	($0.01)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue ($USD)	FY 2023	$95–$100M (Q1 2023 reaffirm)	$95–$100M (Q2 2023 reaffirm)	Maintained
Gross Margin	FY 2023	Expansion expected (Q1)	Expansion expected (Q2)	Maintained
Adjusted EBITDA	FY 2023	Profitability by end of 2023 (Q1)	Profitability by end of 2023 (Q2)	Maintained

Additional relevant release: iSun issued a preliminary Q2 revenue update and scheduled the Aug 10 call; supports continuity of outlook communications .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2022, Q1 2023)	Current Period (Q2 2023)	Trend
Supply Chain and Logistics	Industry-wide constraints; expected reduction in 2023	Constraints still present but lessening; efficiencies offset headwinds	Improving
Efficiency and Cost Discipline	Opex reduction; Adjusted EBITDA positive in Q4 2022; focus on scaling efficiently	Consolidation of C&I divisions increased labor utilization; margin up 90 bps	Improving
Backlog and Awards	Backlog $164.2M; awards $11.0M in Q4 2022	Backlog $161.8M; awards $8.0M in Q2; $40.0M YTD	Solid/Stable
Policy Tailwinds (IRA)	Expect IRA to support solar/EV asset values and development	IRA tailwinds continue; confidence to scale operations over next few years	Supportive
Segment Focus (Residential vs C&I)	Residential accelerated in 2022 (50% of rev)	C&I momentum driving growth; planned increase in residential implementations in 2H	Mixed: C&I strong; Residential ramp

Management Commentary

CEO Jeffrey Peck: “We are continuing to benefit from positive momentum… leveraging the positive tailwinds from climate legislation… [and] improved synergies as we scale… enabled us to increase our margins by 90 basis points… We have increased our labor utilization this year… which offsets… supply chain constraints…” .
On strategy and growth: “We remain confident that our capabilities… position us to accelerate our growth in the evolving alternative energy sector… [IRA] will help us scale our operations significantly in the next few years, and thus enable us to generate steadily higher revenue and reach operating profitability.” .
On awards and backlog: “I am very pleased by our continued success in achieving new contract wins, as we added $8 million in the second quarter, for a total of $40 million in the first half… a record pace for iSun.” .

Q&A Highlights

The company hosted its Q2 2023 earnings call on Aug 10 at 8:30 AM ET; call details in the IR section and press release .
Transcript retrieval from our document system was unavailable due to database inconsistency; Q&A specifics cannot be cited from primary sources in this report. Refer to the hosted webcast replay link provided by the company for full Q&A content .

Estimates Context

S&P Global (Capital IQ) consensus estimates for Q2 2023 EPS, revenue, and EBITDA were unavailable due to a mapping constraint in our SPGI data connector for ISUN. As a result, we cannot benchmark reported results versus consensus in this report [GetEstimates error].
Implication: Absent formal consensus comparisons, use YoY and sequential performance, backlog trajectory, and guidance maintenance as primary indicators of underlying momentum .

Key Takeaways for Investors

Revenue inflected strongly (+51.8% YoY) with gross margin expansion to 23.7%; operating loss narrowed materially—a constructive trajectory heading into 2H .
Backlog and awards ($161.8M backlog; $40.0M YTD awards) provide near-term revenue visibility, supporting the reaffirmed $95–$100M FY revenue guide .
Efficiency programs (C&I consolidation, higher labor utilization) are translating to margin gains; watch for continued improvements and adjusted EBITDA break-even by year-end .
Residual supply chain constraints remain a swing factor; management indicates mitigation via productivity gains—monitor 2H execution pace and segment mix shift toward residential implementations .
Policy tailwinds (IRA) reinforce medium-term growth prospects across solar and EV infrastructure, potentially lifting asset values and financing conditions .
With Street consensus unavailable, traders should anchor on press-release KPIs, guidance maintenance, and sequential margin and loss improvement; catalysts include sustained award momentum and proof of adjusted EBITDA profitability by EOY .

Sources: Q2 2023 8-K earnings press release and exhibits ; Q1 2023 8-K ; Q4 2022 8-K ; preliminary Q2 release (BusinessWire) .

ISUN, INC. (ISUN)·Q2 2023 Earnings Summary