Executive Summary

Revenue declined to $8.78M as residential solar demand slowed; gross margin improved to 43.0% on operational efficiencies while adjusted EBITDA fell to $(6.35)M and net loss widened to $(13.32)M .
Sequentially, revenue fell from $18.65M in Q4 2024 to $8.78M; adjusted EBITDA swung from $3.14M to $(6.35)M as depreciation and amortization spiked to $4.90M .
Management announced a definitive agreement to acquire Heliogen to expand into long-duration clean energy and AI/data-center solutions and expressed confidence in 2H improvement as the summer sales season begins .
Catalysts: Nasdaq deficiency notices on late 10-K/10-Q filings and subsequent class-action investigations pressured shares (−9.91% on May 30 after the notice) .

What Went Well and What Went Wrong

What Went Well

Gross margin improved to 43.0% from 29.9% YoY on cost reductions and labor efficiencies; CEO: “we successfully generated $8.8 million of revenue… [and] improved operational efficiencies in labor and a reduction in materials costs” .
Strategic expansion: definitive agreement to acquire Heliogen to establish a long-duration energy generation/storage division targeting AI/cloud data centers .
Preparedness for seasonality: “Recruited and retained adequate staff ahead of the peak summer sales season” to drive 2H momentum .

What Went Wrong

Demand headwinds: revenue down 56.4% YoY to $8.78M on high interest rates and seasonal slowdown in direct sales .
Profitability pressure: adjusted EBITDA margin fell to −72.3% and net loss widened to $(13.32)M; significant non-cash items (D&A $4.90M, stock comp $2.26M) impacted results .
Compliance overhang: Nasdaq notices for late filings and subsequent class-action firm investigations add listing and litigation risk .

Financial Results

Metric	Q1 2024	Q4 2024	Q1 2025
Revenue ($USD)	$20.14M	$18.65M	$8.78M
Gross Profit ($USD)	$6.00M	$11.20M	$3.80M
Gross Margin (%)	29.9%	60.1%	43.0%
Net (Loss) ($USD)	$(4.11)M	$(1.14)M	$(13.32)M
Net (Loss) Margin (%)	(20.4%)	(6.0% implied from totals)	(151.6%)
Adjusted EBITDA ($USD)	$(0.47)M	$3.14M	$(6.35)M
Adjusted EBITDA Margin (%)	(2.3%)	16.8%	(72.3%)
Basic & Diluted Net Loss per Unit ($USD)	$(1.54)	$(0.04)	$(0.48)

Segment/Revenue Mix

Metric	Q1 2024	Q4 2024	Q1 2025
Revenue, net ($USD)	$11.33M	$14.63M	$6.22M
Related party revenue, net ($USD)	$8.81M	$4.02M	$2.57M
Total revenue ($USD)	$20.14M	$18.65M	$8.78M

Operating/KPI snapshots

KPI ($USD)	Q1 2024	Q4 2024	Q1 2025
Sales & Marketing	$6.55M	$10.51M	$2.14M
General & Administrative	$3.22M	$3.23M	$10.47M
Depreciation & Amortization	$0.46M	$0.41M	$4.90M
Cash from Operations (quarter)	$(10.15)M	N/A	$(2.26)M
Cash & Equivalents (period end)	$7.73M	$5.63M	$2.89M

Notes:

The sharp sequential drop in adjusted EBITDA was amplified by a large increase in depreciation and amortization ($4.90M vs $0.41M in Q4), plus stock-based compensation ($2.26M) .
Gross margin improved YoY despite lower volumes, reflecting efficiencies and materials cost reductions .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2025	Not provided	Not provided; management expects “meaningful improvement in the latter half of the year”	Maintained directional outlook
Margins	FY 2025	Not provided	Not provided	N/A
OpEx	FY 2025	Not provided	Not provided	N/A
OI&E	FY 2025	Not provided	Not provided	N/A
Tax rate	FY 2025	Not provided	Not provided	N/A
Segment guidance	FY 2025	Not provided	Not provided	N/A
Dividends	FY 2025	Not applicable	Not applicable	N/A

Management did not provide numeric ranges in Q1 2025 materials .

Earnings Call Themes & Trends

No Q1 2025 earnings call transcript was available after searching; trend table reflects press releases and filings.

Topic	Previous Mentions (Q4 2024)	Current Period (Q1 2025)	Trend
Interest rate impact on demand	Higher rates pressured direct sales all year	Continued headwind; Q1 slowdown exacerbated by rates	Persistent headwind
Seasonality	“Limited sales in Q4 and Q1” acknowledged	Staff recruited ahead of peak summer season	Seasonal recovery expected in Q2–Q3
Gross margin/efficiency	Margin at 60.1% in Q4; efficiencies noted	Margin 43.0%; efficiencies and material cost reductions	Efficiency benefits continuing
Strategic M&A	Lumio assets integrated, expansion plan	Heliogen acquisition agreement for long-duration/AI data centers	Portfolio diversification
Compliance/listing	Late 10-K (filed 5/28)	Late 10-Q; plan to regain compliance by Oct 13 window	Listing risk ongoing
Legal/regulatory	—	Multiple law-firm investor alerts in June	Litigation overhang increased

Management Commentary

“We continued to navigate the challenging solar market and successfully generated $8.8 million of revenue… we were able to take advantage of the softer sector conditions by entering into a definitive agreement to acquire Heliogen… expand beyond traditional residential solar and into adjacent clean energy verticals… including artificial intelligence (AI) and cloud computing data centers.” — CEO Tim Bridgewater .
“As anticipated, in Q1 we experienced a slowdown due to the seasonality of our intensive summer sales model… exacerbated by the current high-interest rate environment… We remain confident in our full-year outlook. We expect meaningful improvement in the latter half of the year.” — CEO Tim Bridgewater .

Q&A Highlights

No Q1 2025 earnings call transcript was found; therefore Q&A highlights and clarifications are unavailable after document search (we searched for Q1 2025 earnings call transcripts but none were listed or retrievable).

Estimates Context

Consensus availability: S&P Global coverage did not provide consensus EPS, revenue, or estimate counts for Q1 2025; “Primary EPS Consensus Mean,” “Revenue Consensus Mean,” and estimate counts returned no values, indicating no published consensus to benchmark this quarter’s results. Values retrieved from S&P Global.*
With no consensus, beats/misses vs Street estimates cannot be determined this quarter. Values retrieved from S&P Global.*

Key Takeaways for Investors

Residential solar demand softness plus seasonality drove revenue down to $8.78M and a net loss of $(13.32)M; profitability was heavily impacted by increased depreciation/amortization and stock compensation .
Despite lower volumes, gross margin improved YoY to 43.0% due to operational efficiencies and material cost reductions—a positive sign for unit economics as volumes return in peak season .
Sequential deterioration from Q4 2024 (revenue $18.65M; adjusted EBITDA $3.14M) underscores the importance of summer sales execution to stabilize cash burn (Q1 operating cash flow $(2.26)M) .
Strategic pivot via Heliogen acquisition targets long-duration energy generation/storage and AI/data centers, potentially diversifying revenue and enhancing balance sheet positioning .
Compliance and litigation overhang persists: Nasdaq notices on late filings and multiple investor alerts raise near-term listing and headline risks until the 10-Q filing and compliance plan are executed .
Expense mix shifted materially: G&A rose to $10.47M while sales & marketing fell to $2.14M, suggesting back-office/public-company cost absorption amid lower selling activity .
Related-party revenue declined materially vs Q1 2024 ($8.81M → $2.57M), contributing to total revenue contraction and potentially altering revenue mix risk .

Additional Notes on Document Coverage

Prior-quarter benchmarking: We used Q4 2024 results from the May 27, 2025 8-K. No Q3 2024 8-K/press release was available; YoY comparisons employ Q1 2024 data embedded in the Q1 2025 8-K .
Other relevant press releases: Nasdaq compliance notices (April 18 and May 29) and joint disclosure on the Heliogen merger agreement were read; external law-firm investor alerts in late June were noted as sentiment/overhang indicators .

Zeo Energy Corp. (ZEO)·Q1 2025 Earnings Summary