NEW PORT RICHEY, Fla., May 18, 2026 (GLOBE NEWSWIRE) -- Zeo Energy Corp. (Nasdaq: ZEO) ("Zeo," "Zeo Energy," or the "Company"), a provider of residential solar and commercial long-duration energy-storage solutions, today reported financial results for the first quarter March 31, 2026.
First Quarter Financial and Operational Highlights
-- First quarter revenue was $13.2 million, up 50% from $8.8 million in the
prior year period.
-- Gross profit margin for the quarter increased to $5.6 million from $4.0
million in the prior year period.
-- Contribution profit increased to $2.2 million from a loss of $(2.8)
million in the prior year period.
-- First quarter Adjusted EBITDA, a non-GAAP financial measure, was a loss
of $(2.9) million, an improvement from a Adjusted EBITDA loss of $(5.5)
million in the prior year period.
Management Commentary
"We grew revenue significantly year-over-year as we continue to focus on core states with low solar penetration rates and large upside potential, " said ZEO Energy Corp. CEO Tim Bridgewater. "Despite the first quarter normally being our slowest period due to the seasonality of our business that peaks in the summer months, we delivered over 50% top-line growth while also reducing our cash operating expenses. We are also continuing to look for ways to reduce costs as we did in the first quarter, especially considering the shift to domestic content sourcing which carries higher costs."
"At the same time, our work under the memorandum of understanding with Creekstone continues to progress and we will share more details with our investors as they become available. Looking ahead, we remain optimistic about our growth potential in both the residential solar business and our long-duration energy storage business in 2026 and beyond."
First Quarter 2026 Financial Results
Results compare the first quarter of 2026 ending March 31, 2026, to the first quarter of 2025 ending March 31, 2025.
-- Total revenue was $13.2 million in the first quarter of 2026, up 50% from
$8.8 million in the 2025 period as a result of an increase in the number
of solar system installations.
-- Gross profit increased to $5.6 million, 42.5% of total revenue, in the
first quarter of 2026 from $4.0 million, 45.5% of total revenue, in the
prior year period due to increased revenue while margins were lower due
to higher cost of goods sold from an increase in the use of domestic
content product.
-- Contribution profit increased to $2.2 million from a loss of ($2.8)
million in the prior year period and contribution margin increased to
17.0% of revenue from (31.5)% of revenue in the prior year period due to
higher revenues and better cost control.
-- Net loss for the first quarter of 2026 was $(4.7) million compared to
$(13.3) million in the prior year period. The decrease in loss was driven
by higher revenues and lower operating expenses which included a 33.9%
reduction in general and administrative expenses. The decrease in general
and administrative expenses was driven by significant reductions in bad
debt expense as the result of the bankruptcy of one of Zeo's customers
and stock-based compensation expense compared to the prior period. This
resulted in a narrowing of loss per share to $(0.11) from $(0.48).
-- Adjusted EBITDA, a non-GAAP measurement of operating performance
reconciled below, increased to $(2.9) million, (21.6)% of total revenue,
in the first quarter of 2026 from approximately $(5.5) million, (62.7)%
of total revenue, in the comparable 2025 period. The change was primarily
related to the improvement in revenue and lower operating expenses.
Additional information regarding Zeo's results of operations for the quarter ended March 31, 2026 can be found in its Quarterly Report on Form 10-Q, which has been filed with the U.S. Securities and Exchange Commission and can be accessed here.
For more information, please visit the Zeo Energy Corp. website at https://zeoenergy.com/.
About Zeo Energy Corp.
Zeo Energy Corp. (Nasdaq: ZEO) is a diversified clean energy company providing residential, commercial, industrial, and utility-scale solutions that cut costs and carbon emissions. Based in Florida, Zeo operates Sunergy, a residential solar, distributed energy, and efficiency solutions business, in high-growth markets with limited competitive saturation. It also operates Heliogen, Inc., a long-duration energy generation and storage business designed to deliver renewable power for high-demand applications such as AI, data centers, and other energy-intensive industries. With its vertically integrated approach, Zeo helps customers with a cost-effective transition to 24/7 clean energy.
Non-GAAP Financial Measures
In addition to reporting financial results in accordance with U.S. generally accepted accounting principles ("GAAP"), this press release includes certain non-GAAP measures. The Company is providing this non-GAAP measure as a supplement to its financial statements prepared in accordance with GAAP which appear in this press release and in the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 as filed with the U.S. Securities and Exchange Commission. Readers are cautioned that non-GAAP financial measures are not required to be uniformly applied and are not audited.
Adjusted EBITDA
Zeo Energy defines Adjusted EBITDA as net income (loss) before interest and other expenses, net, income tax expense, and depreciation and amortization, as adjusted to exclude stock-based compensation. Zeo Energy utilizes Adjusted EBITDA as an internal performance measure in the management of the Company's operations because the Company believes the exclusion of these non-cash and non-recurring charges allows for a more relevant comparison of Zeo's results of operations to other companies in the industry. Adjusted EBITDA should not be viewed as a substitute for net loss calculated in accordance with GAAP, and other companies may define Adjusted EBITDA differently.
The following table provides a reconciliation of net income (loss) to Adjusted EBITDA for the periods presented:
Three Months Ended
March 31,
-----------------------------
2026 2025
----------- ------------
Net loss $(4,691,311) $(13,319,363)
Adjustments:
Other income (68,437) (82,363)
Interest expense 10,853 30,277
(Gain) loss on change in fair
value of warrant liabilities 75,900 (663,449)
Income tax provision (benefit) (92,129) 523,500
Stock-based compensation 694,368 2,257,139
Non-recurring
transaction-related expenses 138,723 845,859
Depreciation and amortization 1,081,528 4,900,729
---------- -----------
Adjusted EBITDA $(2,850,505) $ (5,507,671)
========== ===========
Net loss margin (35.6)% (151.6)%
========== ===========
Adjusted EBITDA margin (21.6)% (62.7)%
========== ===========
Adjusted EBITDA Margin
Zeo Energy defines Adjusted EBITDA margin, a non-GAAP financial measure, expressed as a percentage, as the ratio of Adjusted EBITDA to revenue, net. Adjusted EBITDA margin measures net income (loss) before interest and other expenses, net, income tax expense, depreciation and amortization, as adjusted to exclude stock-based compensation and is expressed as a percentage of revenue. In the table above, Adjusted EBITDA is reconciled to the most comparable GAAP measure, net income (loss). Zeo Energy utilizes Adjusted EBITDA margin as an internal performance measure in the management of the Company's operations because the Company believes the exclusion of these non-cash and non-recurring charges allows for a more relevant comparison of the Company's results of operations to other companies in Zeo's industry.
The following table sets forth Zeo's calculations of Adjusted EBITDA margin for the periods presented:
Three Months Ended
March 31,
-----------------------------
2026 2025
----------- ------------
Net loss $(4,691,311) $(13,319,363)
Adjusted EBITDA $(2,850,505) $ (5,507,671)
========== ===========
Adjusted EBITDA margin (21.6)% (62.7)%
========== ===========
Cautionary Note Regarding Forward-Looking Statements
This news release contains certain forward-looking statements within the meaning of section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Exchange Act of 1934, as amended, that are based on beliefs and assumptions and on information currently available to the Company. Such statements may include, but are not limited to, statements that refer to projections, forecasts, or other characterizations of future events or circumstances, including any underlying assumptions. The words "anticipate," "intend," "plan," "goal, " "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will," along with derivatives of these words and similar references to future periods may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements may include, for example, statements about the future financial performance of the Company; the ability to effectively consolidate the assets of acquired companies and produce the expected results; changes in the Company's strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, the ability to raise additional funds, and plans and objectives of management. These forward-looking statements are based on information available as of the date of this news release, and current expectations, forecasts, and assumptions, and involve a number of judgments, risks, and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing the Company's views as of any subsequent date, and the Company does not undertake any obligation to update such forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities laws. You should not place undue reliance on these forward-looking statements. As a result of a number of known and unknown risks and uncertainties, the Company's actual results or performance may be materially different from those expressed or implied by these forward-looking statements. Some factors that could cause actual results to differ include: (i) the outcome of any legal proceedings that may be instituted against the Company or others; (ii) the Company's success in retaining or recruiting, or changes required in, its officers, key employees, or directors; (iii) the Company's ability to raise additional capital and maintain the listing of its common stock and warrants on Nasdaq; (iv) limited liquidity and trading of the Company's securities; (v) geopolitical risk and changes in applicable laws or regulations, including tariffs or trade restrictions; (vi) the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; (vii) operational risk; (viii) litigation and regulatory enforcement risks, including the diversion of management time and attention and the additional costs and demands on the Company's resources; (ix) the Company's ability to effectively consolidate the assets of acquired companies and produce the expected results; and (x) other risks and uncertainties, including those included under the heading "Risk Factors" in the Company's Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the "SEC") for the year ended December 31, 2025 and in its subsequent periodic reports and other filings with the SEC.
In light of the significant risks and uncertainties associated with forward-looking statements, you should not regard these statements as a representation or warranty by the Company, its respective directors, officers or employees or any other person that the Company will achieve its objectives and plans in any specified time frame, or at all. The forward-looking statements in this news release represent the views of the Company as of the date of this news release. Subsequent events and developments may cause that view to change. However, while the Company may elect to update these forward-looking statements at some point in the future, there is no current intention to do so, except to the extent required by applicable law. You should, therefore, not rely on these forward-looking statements as representing the views of the Company as of any date subsequent to the date of this news release.
Zeo Energy Corp. Contacts
For Investors:
Tom Colton and Greg Bradbury
Gateway Group
ZEO@gateway-grp.com
For Media:
Zach Kadletz
Gateway Group
ZEO@gateway-grp.com
--Financial Tables to Follow--
ZEO ENERGY CORP.
CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)
March 31, December 31,
2026 2025
------------ ------------
(Unaudited)
ASSETS
-----------------------------------
Current Assets
Cash and cash equivalents $ 1,731,160 $ 6,137,939
Accounts receivable, net of
allowance of $4,978,233 and
$4,777,550, respectively 10,360,929 8,158,909
Accounts receivable -- related
parties 765,757 611,807
Inventories 854,733 852,179
Contract assets 2,337,408 2,598,623
Prepaid expenses and other
current assets 3,982,540 4,192,590
----------- -----------
Total Current Assets 20,032,527 22,552,047
----------- -----------
Other assets 67,667 92,712
Property and equipment, net 1,988,422 2,830,490
Operating lease right-of-use
assets 732,192 897,476
Finance lease right-of-use assets 276,421 310,539
Note receivable -- related
parties 6,343,069 3,153,485
Goodwill 27,091,695 27,091,695
----------- -----------
TOTAL ASSETS $ 56,531,993 $ 56,928,444
=========== ===========
LIABILITIES, REDEEMABLE
NONCONTROLLING INTERESTS AND
STOCKHOLDERS' EQUITY
-----------------------------------
Current Liabilities
Accounts payable $ 5,010,855 $ 3,769,078
Accrued expenses and other
current liabilities 1,847,476 2,421,237
Accrued expenses and other
current liabilities -- related
parties 3,849,754 49,269
Contract liabilities 623,591 1,301,393
Current portion of operating
lease obligations 611,704 684,819
Current portion of finance lease
obligations 145,767 142,095
Current portion of long-term debt 24,183 23,526
----------- -----------
Total Current Liabilities 12,113,330 8,391,417
Operating lease obligations, net
of current portion 196,281 304,295
Finance lease obligations, net of
current portion 171,017 208,865
Long-term debt, net of current
portion 49,288 55,586
Warrant liabilities 567,180 491,280
----------- -----------
TOTAL LIABILITIES 13,097,096 9,451,443
----------- -----------
Redeemable Noncontrolling Interests
Class A convertible preferred
units, 1,500,000 units issued
and outstanding as of March 31,
2026 and December 31, 2025 17,479,714 17,207,469
Class B units, 21,380,000 and
22,880,000 units issued and
outstanding as of March 31, 2026
and December 31, 2025,
respectively 12,272,120 24,939,200
Stockholders' Equity
Class V common stock, $0.0001 par
value, 100,000,000 authorized
shares; 22,880,000 and
24,380,000 shares issued and
outstanding as of March 31, 2026
and December 31, 2025,
respectively 2,288 2,438
Class A common stock, $0.0001 par
value, 300,000,000 authorized
shares; 35,139,912 and
33,180,843 shares issued and
outstanding as of March 31, 2026
and December 31, 2025,
respectively 3,514 3,318
Additional paid-in capital 65,063,624 63,394,456
Accumulated other comprehensive
loss 8,251 (4,895)
Accumulated deficit (51,394,614) (58,064,985)
----------- -----------
TOTAL STOCKHOLDERS' EQUITY 13,683,063 5,330,332
----------- -----------
TOTAL LIABILITIES, REDEEMABLE
NONCONTROLLING INTERESTS AND
STOCKHOLDERS' EQUITY $ 56,531,993 $ 56,928,444
=========== ===========
ZEO ENERGY CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended
March 31,
--------------------------
2026 2025
----------- ------------
Revenues
Revenue, net $12,155,521 $ 6,216,391
Related party revenue, net 1,029,423 2,567,304
---------- -----------
Total Net Revenues 13,184,944 8,783,695
---------- -----------
Operating Expenses
Cost of revenues 7,580,046 4,789,679
Depreciation and amortization 1,081,528 4,900,729
Sales and marketing 3,011,770 3,112,799
General and administrative 6,276,724 9,491,886
---------- -----------
Total Operating Expenses 17,950,068 22,295,093
---------- -----------
LOSS FROM OPERATIONS (4,765,124) (13,511,398)
---------- -----------
Other Income (Expense)
Other income 68,437 82,363
Interest expense (10,853) (30,277)
Gain (loss) on change in fair
value of warrant liabilities (75,900) 663,449
---------- -----------
Total Other Income (Expense) (18,316) 715,535
---------- -----------
NET LOSS FROM OPERATIONS BEFORE
INCOME TAXES (4,783,440) (12,795,863)
Income tax benefit (provision) 92,129 (523,500)
---------- -----------
NET LOSS $(4,691,311) $(13,319,363)
========== ===========
Less: Net loss attributable to
redeemable noncontrolling
interests (1,178,637) (6,958,098)
---------- -----------
NET LOSS ATTRIBUTABLE TO CLASS A
COMMON STOCKHOLDERS $(3,512,674) $ (6,361,265)
========== ===========
LOSS PER CLASS A COMMON SHARE --
BASIC AND DILUTED $ (0.11) $ (0.48)
========== ===========
WEIGHTED-AVERAGE CLASS A COMMON
SHARES OUTSTANDING -- BASIC AND
DILUTED 33,377,040 13,252,964
========== ===========
COMPREHENSIVE LOSS
Foreign currency translation
adjustments (13,146) --
---------- -----------
NET COMPREHENSIVE LOSS $(3,499,528) $ (6,361,265)
========== ===========
ZEO ENERGY CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Three Months Ended
March 31,
--------------------------
2026 2025
----------- ------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $(4,691,311) $(13,319,363)
Adjustment to reconcile net loss to
net cash used in operating
activities
Depreciation and amortization 1,081,528 4,885,729
Amortization of debt discount -- 15,000
(Gain) loss on change in fair
value of warrant liabilities 75,900 (663,449)
Stock-based compensation 663,053 2,193,630
Class A common stock issued to
employees for services 31,315 63,509
Provision for credit losses 200,683 3,538,569
Non-cash operating lease expense 165,284 180,643
Changes in operating assets and
liabilities:
Accounts receivable (2,402,703) 1,742,908
Accounts receivable -- related
parties (153,950) (94,441)
Inventories (2,554) 25,075
Contract assets 261,215 32,609
Prepaids and other current assets 204,075 1,138,288
Other assets 25,045 --
Interest receivable -- related
parties (39,584) (37,656)
Accounts payable 1,254,681 788,747
Accrued expenses and other current
liabilities (467,073) (1,465,223)
Accrued expenses and other current
liabilities -- related parties 3,800,485 (1,038,972)
Contract liabilities (677,802) (82,190)
Contract liabilities -- related
parties -- (2,000)
Operating lease payments (181,129) (164,851)
---------- -----------
Net cash used in operating
activities (852,842) (2,263,438)
---------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and
equipment (205,342) (372,578)
Investment in note receivable --
related party (3,150,000) --
---------- -----------
Net cash used in investing
activities (3,355,342) (372,578)
---------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from Class A common
stock issued in connection with a
committed equity facility 13,455 --
Repayments of finance lease
liabilities (34,176) (31,696)
Repayments of debt (5,641) (72,300)
Dividends paid to OpCo Class A
preferred unit holders (160,153) --
Tax withholdings paid related to
stock-based compensation (11,609) --
---------- -----------
Net cash used in financing
activities (198,124) (103,996)
---------- -----------
Effect of foreign exchange on
cash (471) --
---------- -----------
NET CHANGE IN CASH AND CASH
EQUIVALENTS (4,406,779) (2,740,012)
Cash and cash equivalents,
beginning of period 6,137,939 5,634,115
---------- -----------
Cash and cash equivalents, end of
the period $ 1,731,160 $ 2,894,103
========== ===========
SUPPLEMENTAL DISCLOSURES OF CASH
FLOW INFORMATION
Cash paid for interest $ 10,853 $ 25,785
Cash paid for income taxes $ -- $ --
NON-CASH INVESTING AND FINANCING
ACTIVITIES
Net loss attributable to
redeemable noncontrolling
interest $ 1,611,035 $ 7,363,336
OpCo Class A preferred dividends $ 432,398 $ 405,237
Subsequent measurement of
redeemable noncontrolling
interest $10,183,045 $ 51,448,264
Class A common stock issued upon
vesting of restricted stock
awards $ 12 $ --
Class A common stock issued in
exchange for Class V common
stock $ 150 $ 850
Fair value of Class A common stock
issued in exchange for OpCo Class
B units $ 873,000 $ 18,785,000
Class A common stock issued for
commitment fee $ 100,000 $ --
Reverse recapitalization related
deferred taxes and adjustments $ -- $ 238,491
(END) Dow Jones Newswires
May 18, 2026 08:30 ET (12:30 GMT)