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Complete Solaria, Inc. (SPWR)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 delivered record non-GAAP operating income of $3.12M on $70.0M revenue as gross margin expanded to 48% and the company posted a third consecutive profitable quarter .
  • Management guided to new records in Q4 2025 with $83.3M revenue and $3.56M operating income, and projected FY 2025 revenue of $303M with $12.0M operating income; Q1 2026 operating income is expected to be ≥$2.0M .
  • The Sunder Energy acquisition materially expands reach (45 states) and the dealer salesforce to 1,744; management expects bookings in Q4 to rise by slightly over 2x (translating to ~1.3x revenue until installs catch up in 2026) .
  • Liquidity remains tight with ending cash at $4.11M; management is “in the process of raising money now,” a key near‑term catalyst and risk for the stock .

What Went Well and What Went Wrong

What Went Well

  • Record non‑GAAP operating income: “Our Q3’25 operating income is a post‑acquisition record of $3.12 million, representing 4.5% of revenue” .
  • Margin improvement and sequential growth: Revenue rose to $70.0M from $67.5M in Q2; gross margin expanded to 48% non‑GAAP (from 44% in Q2), supported by cost discipline and mix focus .
  • Go‑to‑market scale-up via Sunder: “SunPower closed the strategic acquisition of Sunder Energy to create the No. 5 residential solar company in the U.S.*, expanding reach from 22 to 45 states and increasing the dealer salesforce from 881 to 1,744” .

What Went Wrong

  • GAAP profitability not yet achieved: GAAP operating loss of ($2.344M) in Q3 despite non‑GAAP profit, driven by stock comp and intangible amortization exclusions in non‑GAAP .
  • Liquidity constraints: Ending cash fell to $4.11M (from $11.13M in Q2), and management is actively raising capital, highlighting funding risk .
  • Policy/macro overhang: Q2 revenue was impacted by ITC and tariff pressures; while bookings warmed in Q3, broader industry headwinds remain a watchpoint .

Financial Results

MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD Millions)$82.740 $67.524 $70.005
Gross Profit ($USD Millions, non-GAAP)$32.497 $28.761 $33.636
Gross Margin (%) (non-GAAP)39% 43% 48%
Operating Expenses ($USD Millions, non-GAAP)$29.559 $26.343 $30.513
Operating Income ($USD Millions, non-GAAP)$2.938 $2.418 $3.123
Operating Income ($USD Millions, GAAP)$1.042 ($2.718) ($2.344)
Cash Balance ($USD Millions)$10.553 $11.125 $4.109
Diluted EPS - Continuing Operations ($)Not disclosed Not disclosed Not disclosed

Notes: Q1 2025 figures reflect re‑calculated revenue recognition standards referenced in the Q2 release; prior Q1 press indicated $80.174M revenue and $1.274M non‑GAAP operating income under earlier methodology .

Segment breakdown: Not disclosed in Q3 materials .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($USD Millions)Q3 2025~$70 (Q2 outlook) Actual $70.0 Achieved vs prior outlook
Operating Income ($USD Millions, non-GAAP)Q3 2025~$3.0 (Q2 outlook) Actual $3.123 Achieved vs prior outlook
Revenue ($USD Millions)Q4 2025N/A$83.3 New guidance
Operating Income ($USD Millions, non-GAAP)Q4 2025N/A$3.56 New guidance
Revenue ($USD Millions)FY 2025N/A$303 New guidance
Operating Income ($USD Millions, non-GAAP)FY 2025N/A$12.0 New guidance
Operating Income ($USD Millions, non-GAAP)Q1 2026N/A≥$2.0 New guidance

Earnings Call Themes & Trends

Earnings call transcript was not available in our document set; Q3 results were presented via webcast (no transcript captured). The below themes reflect press releases and 8‑K commentary.

TopicPrevious Mentions (Q1 2025 and Q2 2025)Current Period (Q3 2025)Trend
Policy/macro (ITC/tariffs)“ITC deep freeze” drove Q2 revenue drop; gross margin improved via focus on profitable segments Sequential revenue recovery to $70.0M; continued acknowledgment of policy pressures Stabilizing sequentially; macro still a headwind
Cost control / headcountHeadcount reduced to 906 by Q1; target to be profitable at ~$300M annualized revenue Headcount reached target at 829; opex control remains a driver Continuing efficiency gains
Liquidity / capital raisingCash $13.995M in Q1; $11.125M in Q2 Cash $4.109M; “in process of raising money now” Deteriorated; capital raise priority
Go‑to‑market scaleStrategic partnership with Sunder (Q1) Closed acquisition; reach 45 states; dealer salesforce 1,744; bookings >2x Accelerating via acquisition
Operations / collections$16M AR collection expected to resume post estate agreement (Q2 subsequent events) Not reiterated; focus shifts to bookings and Q4 guidance AR issue addressed; emphasis on growth
Technology/R&D talentCTO hire, Dr. Sedigh; advisor Dr. Swanson (Q1) No new R&D disclosures; focus on salesforce integration Talent in place; commercial execution emphasis

Management Commentary

  • “We have now posted three consecutive profitable quarters, after four years of losses.”
  • “In Q4’25, we expect further revenue growth to $83.3 million with $3.56 million in operating income, both would be records.”
  • “SunPower closed the strategic acquisition of Sunder Energy… expands reach from 22 to 45 states, increases dealer salesforce from 881 to 1,744, and is anticipated to increase our bookings in Q4’25 by slightly over 2x.”
  • On liquidity and valuation: “Our stock is valued at only 0.53 times sales… Our low cash balance of $4.1 million… We are in the process of raising money now to address this.”

Q&A Highlights

A full Q3 earnings call transcript was not available in our document set. The company hosted a webcast; prepared remarks emphasized Q4 guidance records, Sunder integration, and the active capital raise to bolster liquidity . Any Q&A clarifications cannot be verified due to lack of transcript capture.

Estimates Context

  • Wall Street consensus estimates (S&P Global) for Q3 2025 EPS and revenue were unavailable in our system for SPWR. Values retrieved from S&P Global were not returned for Q1–Q3 2025; therefore, we cannot provide an estimates comparison at this time.*

KPIs and Operating Metrics

KPIQ1 2025Q2 2025Q3 2025
Headcount906 861 829
Dealer SalesforceNot disclosed 881 1,744 (post Sunder)
States Coverage22 22 45
Bookings OutlookGrowth expected starting Q3 via Sunder partnership Bookings warming post Q2 freeze Q4 bookings >2x expected
Revenue per Employee (forecast)Not disclosed Not disclosed ~$400k annualized (Q4 forecast)
Cash Balance ($USD Millions)$13.995 $11.125 $4.109

Key Takeaways for Investors

  • Margin and profit trajectory: Non‑GAAP operating income and gross margins are improving with rigorous opex control; sequential revenue growth suggests demand stabilization despite policy headwinds .
  • Q4 setup: Guidance calls for record revenue and operating income in Q4; execution on Sunder‑driven pipeline and installations is the key lever into 2026 .
  • Liquidity watch: Cash fell to $4.11M; timely and favorable capital raise terms are critical to sustain growth and reduce balance sheet risk .
  • Integration and scale: Sunder accelerates distribution scale (states and dealers), with bookings expected to more than double; revenue conversion lags until installs ramp in 2026, tempering near‑term revenue translation .
  • GAAP vs non‑GAAP: GAAP operating loss persists due to stock comp and intangible amortization; monitor reconciliation and path to GAAP profitability as a valuation catalyst .
  • Estimates gap: With no consensus data available, buyside should anchor short‑term trading on company guidance and sequential trends rather than sell‑side benchmarks.*
  • Narrative drivers: Capital raise outcome, Q4 bookings-to-revenue conversion, and policy backdrop (ITC/tariffs) are likely to move the stock in the near term .

*Values retrieved from S&P Global.