Executive Summary

Q3 2021 came in as a preliminary quarter with revenue estimated at $6.2–$7.2M, gross margin at 18–20%, and net loss of $1.2–$1.5M; year-to-date revenue was $17.8–$18.8M with YTD gross margin of 4–6% and YTD net loss of $6.7–$7.2M .
Backlog expanded to $80.7M, driven by Commercial & Industrial EPC, and cash improved to ~$27.5M; management cited a return toward pre‑COVID margin levels as backlog converts .
Prior quarter (Q2) results showed $4.3M revenue and continued margin pressure from labor shortages and industry‑wide input cost increases; outlook called for at least doubling 2021 revenue versus 2020 on backlog conversion over 12–18 months .
Street estimates via S&P Global were unavailable for ISUN; comparisons to consensus cannot be made (S&P Global mapping unavailable).

What Went Well and What Went Wrong

What Went Well
- Backlog strength: $80.7M as of 9/30/21, supporting revenue visibility and margin normalization as backlog converts .
- Cash position: ~$27.5M at quarter-end, enhancing execution capacity and strategic flexibility .
- CEO confidence and pipeline expansion: “We continue to see strong revenue growth… and a return to pre‑COVID margin targets,” with backlog excluding a new $30M utility development commitment and residential backlog from SolarCommunities to be updated with full Q3 results .
What Went Wrong
- Profitability still negative: Q3 net loss of ~$1.2–$1.5M and YTD net loss of ~$6.7–$7.2M .
- Margin headwinds persisted earlier in the year: Q2 gross profit was −$0.6M with explicit attribution to labor shortages and component/material price inflation .
- Operating losses in Q2 (−$2.8M) reflected the dual impact of margin pressure and elevated G&A from strategic initiatives (acquisitions), implying execution risk in scaling the platform .

Financial Results

Quarterly overview (oldest → newest):

Metric	Q1 2021	Q2 2021	Q3 2021
Revenue ($USD Millions)	$7.3	$4.3	~$6.2–$7.2
Net Income ($USD Millions)	−$3.1	N/A	~−$1.2 to −$1.5
Diluted EPS ($USD)	−$0.41	N/A	N/A
Gross Margin %	N/A	N/A	~18%–20%

Note: The Q3 press release references two revenue ranges in different passages ($6.7–$7.2M in highlights and $6.2–$7.2M later); both are preliminary and unaudited .

Year-to-Date metrics:

Metric	YTD through Q2 2021	YTD through Q3 2021
Revenue ($USD Millions)	$11.6	~$17.8–$18.8
Gross Margin %	N/A (gross profit −$0.5)	~4%–6%
Net Income ($USD Millions)	Operating loss −$5.4 (not net)	~−$6.7 to −$7.2

KPIs and balance metrics:

KPI	Q1 2021	Q2 2021	Q3 2021
Backlog ($USD Millions)	N/A	~$77.0	~$80.7
Cash ($USD Millions)	N/A	~$20.2	~$27.5

Segment breakdown: Backlog composed of solar, electric and data projects generated by the Commercial & Industrial EPC division; residential and utility contributions (e.g., SolarCommunities acquisition and $30M utility development services commitment) were not included in the $80.7M backlog as of 9/30 and will be updated with full Q3 results .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue (FY 2021)	FY 2021	“At least double revenue in 2021 vs 2020”	Not explicitly updated in Q3 prelim; backlog expanded and cash increased	Maintained/implicitly supported
EBITDA Margin	FY 2021	“Improved EBITDA margin throughout the year” on efficiencies/scale/new offerings	Q3 prelim gross margin expected to return toward pre‑COVID levels	Maintained trajectory (qualitative)
Backlog conversion	12–18 months	Backlog largely converts over 12–18 months	Backlog grew to $80.7M; additional $30M utility commitment not yet included	Positive update (size)

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3 2021)	Trend
Supply chain and labor	Q2 cited labor shortages and input cost inflation driving negative gross profit and operating loss	Management expects margins to return toward pre‑COVID levels as backlog converts	Improving margins expected
Backlog visibility	YTD backlog ~$77M with 12–18 month conversion window	Backlog expanded to ~$80.7M; additional $30M utility development services commitment, plus residential backlog from SolarCommunities to be incorporated	Strengthening pipeline
M&A/platform buildout	Q2 highlighted acquisitions (iSun Energy LLC IP; Oakwood Construction Services) and residential platform plans	Q3: Liberty Electric asset purchase (closed 11/18/21) to bolster capabilities; consideration includes cash, stock, earnout	Ongoing consolidation
EV/technology initiatives	Q2 awarded 18 off‑grid iSun Roam EV solar carports; broader development rights (118MW Industrial; EPC rights ~$120M not in backlog)	Investor presentation (12/8) reiterates multi‑segment platform and execution roadmap for 2022	Scaling multi‑segment execution

Management Commentary

“We continue to see strong revenue growth within our Commercial and Industrial Divisions as well as a return to pre‑COVID margin targets… Our backlog does not include the recently announced $30 million commitment secured for Development Services by our Utility Division or the project backlog secured by our Residential Division with the recently announced acquisition of SolarCommunities, Inc.” – Jeffrey Peck, CEO .
“These declines [Q2 margins] were due to carryover issues related to the pandemic, specifically labor shortages and industry‑wide increases in material and component prices.” – Q2 press release .
“With a robust backlog of $77 million… the Company continues to expect to at least double revenue in 2021… [and] generate improved EBITDA margin throughout the year.” – Q2 outlook .

Q&A Highlights

Backlog conversion and margin normalization: Management emphasized margin recovery toward pre‑COVID levels as backlog executes; backlog conversion timeline guided at 12–18 months in prior quarter .
Supply chain/labor pressures: Q2 commentary attributed margin pressure to labor shortages and material inflation, providing context for Q3’s anticipated margin normalization .
Strategic pipeline additions: The $30M utility development services commitment and residential backlog from SolarCommunities were highlighted for inclusion in updated backlog with full Q3 results .

Note: The Q3 2021 earnings call transcript was not retrievable via the Read tool due to a database inconsistency; general themes are supported using company filings and investor materials cited above.

Estimates Context

Wall Street consensus via S&P Global (SPGI/Capital IQ) was unavailable for ISUN due to a missing company mapping in the S&P Global system; therefore, comparisons to consensus EPS and revenue for Q3 2021 cannot be provided (S&P Global data unavailable).

Key Takeaways for Investors

Backlog momentum and margin recovery narrative: Expanded backlog ($80.7M) alongside management’s expectation of margin normalization should support revenue acceleration and improving gross margins as projects convert over 12–18 months .
Liquidity improved: Cash increased to ~$27.5M in Q3 prelim from $20.2M in Q2, bolstering capacity to execute and pursue strategic initiatives .
Profitability inflection pending: Q3 still showed losses (−$1.2 to −$1.5M), but normalization of margins versus Q2’s labor/supply chain headwinds is the key swing factor for earnings trajectory .
Platform build via M&A: Ongoing acquisitions (e.g., Liberty Electric) and residential expansion (SolarCommunities) broaden capabilities and potential revenue streams, though integration and cost discipline remain execution risks .
2021 outlook: Prior guidance to at least double 2021 revenue vs 2020 reiterated qualitatively through backlog growth; monitor the forthcoming full Q3 release for finalized numbers and updated backlog incorporating utility/residential additions .
Trading implication: Near‑term catalysts include the full Q3 report and any quantified updates to backlog and margin trajectory; watch for evidence of cost normalization and project mix upgrades that could accelerate gross margin recovery .

ISUN, INC. (ISUN)·Q3 2021 Earnings Summary