SUNation Energy Announces 2025 Second Quarter Results and Reiterates Full Year Financial Guidance

FY 2025 Total Sales Expected to Rise 14% - 23% from FY 2024 with Positive Adjusted EBITDA

Q2 2025 Select Highlights

Gross Margin Expanded to 37%

Total Debt Declined by $11.7 Million, a 61% Improvement from December 31, 2024

Residential Backlog at June 30, 2025 Increased to $27.1 Million from December 31, 2024 and Rose to $35.6 Million at July 31, 2025

RONKONKOMA, N.Y., Aug. 18, 2025 (GLOBE NEWSWIRE) -- SUNation Energy, Inc. (NASDAQ:SUNE) (the "Company"), a leading provider of sustainable solar energy and backup power to households, businesses, municipalities, and for servicing existing systems, today announced financial results for the second quarter ended June 30, 2025 ("Q2 2025") and reiterated full year financial guidance for total sales and Adjusted EBITDA.

"In 2024, Jim Brennan and I assumed the leadership of SUNation. With the support of an amazing team, we created and implemented a series of initiatives that have strengthened our operations, reduced costs, eliminated significant debt, and enhanced efficiencies," said Scott Maskin, Chief Executive Officer. "The passage of the One Big Beautiful Bill Act ("OBBBA") in July represented a major policy reversal for our industry; however, our success in improving our operations has prepared us to adjust to and, we believe, prosper in, this new environment. While uncertainty remains, we believe that the long-term outlook for solar is strong given its compelling value proposition, environmental benefits, and support of energy independence. SUNation is well positioned to capitalize on the opportunities that lie ahead and we are committed to delivering a best-in-class customer experience."

Mr. Maskin continued, "Demand for residential solar in our primary markets of New York and Hawaii has increased considerably since the passage of the OBBBA. Consumers in these regions, which happen to be two of the most expensive electricity markets in the country, are being driven by a heightened sense of urgency to install new systems before the December 31, 2025 deadline to be eligible for the Section 25D tax credit. This has resulted in a significant increase in new residential business that we expect will be completed by the end of the year. Our Commercial business is also picking up with project backlog extending in 2026. We are diversifying our business model to create new revenue streams, continuing to pursue select acquisitions and partnership agreements, and pivoting towards leasing and third party owned systems in New York and Hawaii, where solar demand is expected to persist due to utility structure and high electricity costs."   

James Brennan, SUNation's Chief Financial Officer, said, "The benefits from our restructuring and debt reduction initiatives had a pronounced positive effect on second quarter financial results. We increased gross margin, reduced SG&A expenses, and improved our Adjusted EBITDA loss. We also further improved our financial position; cash at quarter end rose nearly four-fold from December 31, 2024 and we reduced our debt by $11.7 million from December 31, 2024. These improvements in combination with a robust project backlog are expected to drive strong second half performance and give us great confidence in our ability to meet our full year financial guidance."

Q2 2025 Financial Results OverviewComparisons are to the second quarter ended June 30, 2024 ("Q2 2024") unless otherwise noted

Total sales were $13.1 million compared to $13.5 million, driven by higher sales at SUNation NY, partially offset by sales declines at Hawaii Energy Connection ("HEC") and service revenue.

Consolidated gross profit improved to $4.8 million, or 37.0% of sales, from gross profit of $4.8 million, or 35.4% of sales, driven by higher gross profit at SUNation NY partially offset by a smaller decline in gross profit at HEC.   

SG&A expenses improved to $6.4 million from $6.6 million, the result of cost optimization and efficiency measures implemented in 2024 and 2025.

Net loss was $(9.6) million compared to $(6.9) million.   However, net loss in Q2 2025 included a $(7.5) million non-cash charge related to fair value remeasurement of warrant liability compared to $(3.3) million in Q2 2024 and $(0.6) million in financing fees.

Adjusted EBITDA loss improved to $(1.0) million from $(1.7) million.

Residential backlog improved to $27.1 million at June 30, 2025 from $26.9 million at December 31, 2024; at July 31, 2025, residential backlog further increased to $35.6 million.

Commercial backlog was $0.9 million at June 30, 2025 and $4.2 million at July 31, 2025.  

Financial Condition at June 30, 2025

Cash and cash equivalents improved to $3.2 million from $0.8 million at December 31, 2024. Restricted cash and equivalents was stable at $0.3 million.

Total debt, which includes earnout consideration of $0.5 million, improved 61% to $7.5 million from $19.1 million at December 31, 2024.

Accounts payable improved to $6.4 million from $8.0 million at December 31, 2024.

Inventories improved to $2.3 million from $2.7 million at December 31, 2024.

Current liabilities improved to $12.8 million from $27.2 million at December 31, 2024

Stockholders' equity improved to $22.1 million from $8.5 million at December 31, 2024.

As previously announced, during Q2 2025 the Company terminated all of the outstanding Series A Common Stock Purchase Warrants ("Series A Warrants") issued in connection with a previously announced Registered Direct Offering. The transaction eliminated the potential dilution created by the Series A Warrants by ensuring that up to 652,174 shares of stock underlying those warrants will no longer be able to enter the market.

Mr. Brennan commented, "The termination of these warrants allowed us to deploy our cash in a way that delivered meaning value to our shareholders by removing a significant source of potential dilution and simplifying our capital structure."

REITERATES 2025 FINANCIAL GUIDANCE

Based on current business conditions and estimated outlook, the Company is reiterating its previously issued financial guidance for the full year ending December 31, 2025:

Total sales are expected to rise to $65 million to $70 million, a projected increase of between 14% and 23% from total sales of $56.9 million in 2024.

Adjusted EBITDA is expected to improve to $0.5 million to $0.7 million from an Adjusted EBITDA loss in 2024.

Guidance for full year 2025 is based on the Company's current views, beliefs, estimates and assumptions. It does not include any potential impact related to, among numerous other potential events that are largely out of our control, such as current or future tariffs, global disruptions, broader industry dynamics, and legislative policy changes, which the Company is unable to predict at this time. All financial expectations are forward-looking, and actual results may differ materially from such expectations, as further discussed below under the heading "Forward-Looking Statements."

We are not able to provide a reconciliation of Adjusted EBITDA guidance for full year 2025 to net profit (loss), the most directly comparable GAAP financial measure, because certain items that are excluded from Adjusted EBITDA but included in net profit (loss) cannot be predicted on a forward-looking basis without unreasonable effort or are not within our control.

Q2 2025 CONFERENCE CALL

Management will host a conference call on Tuesday, August 19, 2025 at 9:00 am ET. Interested parties may participate in the call by dialing:

Domestic: (800) 715-9871

International: (646) 307-1963

Passcode: 2227965

The conference call will also be accessible via the Investor Relations section of the Company's web site at https://ir.sunation.com/news-events or via this link: https://edge.media-server.com/mmc/p/w68i8uua.

About SUNation Energy, Inc.

SUNation Energy, Inc. is focused on growing leading local and regional solar, storage, and energy services companies nationwide. Our vision is to power the energy transition through grass-roots growth of solar electricity paired with battery storage. Our portfolio of brands (SUNation, Hawaii Energy Connection, E-Gear) provide homeowners and businesses of all sizes with an end-to-end product offering spanning solar, battery storage, and grid services. SUNation Energy, Inc.'s largest markets include New York, Florida, and Hawaii, and the company operates in three (3) states.

Forward Looking Statements 

Our prospects here at SUNation Energy Inc. are subject to uncertainties and risks. This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. The Company intends that such forward-looking statements be subject to the safe harbor provided by the foregoing Sections. These forward-looking statements are based largely on the expectations or forecasts of future events, can be affected by inaccurate assumptions, and are subject to various business risks and known and unknown uncertainties, a number of which are beyond the control of management. Therefore, actual results could differ materially from the forward-looking statements contained in this presentation. The Company cannot predict or determine after the fact what factors would cause actual results to differ materially from those indicated by the forward-looking statements or other statements. The reader should consider statements that include the words "believes", "expects", "anticipates", "intends", "estimates", "plans", "projects", "should", or other expressions that are predictions of or indicate future events or trends, to be uncertain and forward-looking. We caution readers not to place undue reliance upon any such forward-looking statements. The Company does not undertake to publicly update or revise forward-looking statements, whether because of new information, future events or otherwise. Additional information respecting factors that could materially affect the Company and its operations are contained in the Company's filings with the SEC which can be found on the SEC's website at www.sec.gov.

Contacts: Scott Maskin Chief Executive Officer +1 (631)

SUNation Energy Investor

 

SUNATION ENERGY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

 

 

 

 

ASSETS

 

June 30

 

December 31

 

2025

 

 

2024

 

CURRENT ASSETS:

 

 

 

 

 

Cash and cash equivalents

$

3,186,757

 

 

$

839,268

 

Restricted cash and cash equivalents

 

286,630

 

 

 

312,080

 

Trade accounts receivable, less allowance for

 

 

 

 

 

credit losses of $215,738 and $240,817, respectively

 

3,298,944

 

 

 

4,881,094

 

Inventories, net

 

2,321,966

 

 

 

2,707,643

 

Prepaid income taxes

 

15,776

 

 

 

—

 

Related party receivables

 

23,039

 

 

 

23,471

 

Prepaid expenses

 

1,028,996

 

 

 

1,587,464

 

Costs and estimated earnings in excess of billings

 

604,077

 

 

 

560,648

 

Other current assets

 

185,227

 

 

 

198,717

 

TOTAL CURRENT ASSETS

 

10,951,412

 

 

 

11,110,385

 

PROPERTY, PLANT AND EQUIPMENT, net

 

1,107,372

 

 

 

1,238,898

 

OTHER ASSETS:

 

 

 

 

 

Goodwill

 

17,443,869

 

 

 

17,443,869

 

Operating lease right of use asset

 

3,513,114

 

 

 

3,686,747

 

Intangible assets, net

 

11,102,083

 

 

 

12,220,833

 

Other assets, net

 

12,000

 

 

 

12,000

 

TOTAL OTHER ASSETS

 

32,071,066

 

 

 

33,363,449

 

TOTAL ASSETS

$

44,129,850

 

 

$

45,712,732

 

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:

 

 

 

 

 

Accounts payable

$

6,406,277

 

 

$

8,032,769

 

Accrued compensation and benefits

 

687,464

 

 

 

796,815

 

Operating lease liability

 

327,454

 

 

 

321,860

 

Accrued warranty

 

190,411

 

 

 

350,013

 

Other accrued liabilities

 

1,318,915

 

 

 

1,055,995

 

Accrued loss contingencies

 

—

 

 

 

1,300,000

 

Income taxes payable

 

—

 

 

 

5,071

 

Refundable customer deposits

 

1,533,688

 

 

 

1,870,173

 

Billings in excess of costs and estimated earnings

 

421,474

 

 

 

444,310

 

Contingent value rights

 

286,630

 

 

 

312,080

 

Earnout consideration

 

104,167

 

 

 

2,500,000

 

Current portion of loans payable

 

330,112

 

 

 

3,139,113

 

Current portion of loans payable - related party

 

1,203,401

 

 

 

6,951,563

 

Embedded derivative liability

 

—

 

 

 

82,281

 

TOTAL CURRENT LIABILITIES

 

12,809,993

 

 

 

27,162,043

 

LONG-TERM LIABILITIES: