NEW PORT RICHEY, Fla., June 16, 2025 (GLOBE NEWSWIRE) -- Zeo Energy Corp. (Nasdaq: ZEO) ("Zeo", "Zeo Energy", or the "Company"), a Florida-based provider of residential solar and energy efficiency solutions, today reported financial results for the first quarter ended March 31, 2025.
Recent Operational Highlights
-- Entered into a definitive agreement to acquire Heliogen, a provider of
on-demand clean energy technology solutions, allowing the company to
establish a division focused on long-duration energy generation and
storage for commercial and industrial-scale facilities, including
artificial intelligence $(AI)$ and cloud computing data centers.
-- Recruited and retained adequate staff ahead of the peak summer sales
season.
Management Commentary
"In the first quarter of 2025, we continued to navigate the challenging solar market and successfully generated $8.8 million of revenue," said Zeo Energy Corp. CEO Tim Bridgewater. "As announced last month, we were able to take advantage of the softer sector conditions by entering into a definitive agreement to acquire Heliogen. We believe that this proposed acquisition positions us to expand beyond traditional residential solar and into adjacent clean energy verticals with long-term upside. This move will also enhance our balance sheet and diversify our revenue base going forward."
"As anticipated, in Q1 we experienced a slowdown due to the seasonality of our intensive summer sales model. This slowdown was exacerbated by the current high-interest rate environment. We've maintained our strategic focus during this period, streamlining operations and strengthening our sales team ahead of the critical summer season that is now underway. Looking ahead, we remain confident in our full-year outlook. We expect meaningful improvement in the latter half of the year as market activity increases."
First Quarter 2025 Financial Results
Results compare the 2025 first quarter ended March 31, 2025 to the 2024 first quarter ended March 31, 2024.
-- Total revenue was $8.8 million in Q1 2025, a 56.4% decrease from $20.1
million in the comparable 2024 period. The decrease was primarily due to
higher interest rates creating a challenging environment for residential
solar direct sales.
-- Gross profit decreased to $3.8 million (43.0% of total revenue) in Q1
2025 from $6.0 million (29.9% of total revenue) in the comparable 2024
period. The decrease was driven in part by the decrease in sales compared
to the prior period. The improvement in gross profit as a percentage of
revenue was the result of improved operational efficiencies in labor and
a reduction in materials costs.
-- Net loss for Q1 2025 was $13.3 million compared to $4.1 million in the
comparable 2024 period. The decrease is primarily due to a decrease in
overall sales for the period.
-- Adjusted EBITDA, a non-GAAP measurement of operating performance
reconciled below, decreased to $(6.4) million (72.3% of total revenue) in
Q1 2024 from approximately $(0.5) million (2.3% of total revenue) in the
comparable 2024 period. The change was primarily related to the change in
net loss.
For more information, please visit the Zeo Energy Corp. investor relations website at investors.zeoenergy.com.
About Zeo Energy Corp.
Zeo Energy Corp. is a Florida-based provider of residential solar, distributed energy, and energy efficiency solutions. Zeo focuses on high-growth markets with limited competitive saturation. With its differentiated sales approach and vertically integrated offerings, Zeo, through its Sunergy Solar business unit, serves customers who desire to reduce high energy bills and contribute to a more sustainable future. For more information on Zeo Energy Corp., please visit www.zeoenergy.com.
Non-GAAP Financial Measures
Adjusted EBITDA
Zeo Energy defines Adjusted EBITDA, a non-GAAP financial measure, 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 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,
---------------------------------
2025 2024
------------ -------------
Net income (loss) $(13,319,363) $ (4,107,102)
Adjustment:
Other income, net (82,363) 0
Change in fair value of
warrant liabilities (663,449) 138,000.00
Interest expense 30,277 35,222
Income tax benefit 523,500 (114,668.00)
Stock compensation 2,257,139 3,118,584.00
Depreciation and
amortization 4,900,729 459,529
Adjusted EBITDA (6,353,530) (470,435)
Net income (loss) margin (151.6) % (20.4) %
Adjusted EBITDA margin (72.3) % (2.3) %
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 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,
----------------------------------
2025 2024
--------------- -----------
Total Revenue $ 8,783,695 $20,142,156
Adjusted EBITDA (6,353,530) (470,435)
Adjusted EBITDA margin (72.3) % (2.3) %
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," 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 Lumio 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 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 Lumio 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, 2024 and in its subsequent periodic reports and other filings with the SEC.
In light of the significant uncertainties in these 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)
As of March 31, As of December 31,
----------------- -------------------
2025 2024
Assets
Current assets
Cash and cash equivalents $ 2,894,103 $ 5,634,115
Accounts receivable,
including $286,103 and
$191,662 from related
parties, net of
allowance for credit
losses of $4,703,905 and
$1,165,336, as of March
31, 2025 and December
31, 2024, respectively 4,999,508 10,186,543
Inventories 847,395 872,470
Contract assets 577,398 64,202
Prepaid expenses and
other current assets 936,673 2,131,345
------------ --------------
Total current assets 10,255,077 18,888,675
Other assets 113,591 314,426
Property, equipment and
other fixed assets, net 2,629,283 2,475,963
Right of use operating
lease assets 1,087,496 1,268,139
Right of use financing
lease assets 412,893 447,012
Intangibles, net 2,938,804 7,571,156
Note receivable - related
party 3,000,000 3,000,000
Goodwill 27,010,745 27,010,745
Total assets $ 47,447,889 $ 60,976,116
============ ==============
Liabilities, redeemable noncontrolling interest
and stockholders' (deficit) equity
Current liabilities
Accounts payable $ 3,569,632 $ 2,780,885
Accrued expenses and
other current
liabilities, including
$2,320,129 and
$3,359,101 with related
parties at March 31,
2025 and December 31,
2024, respectively 6,581,799 8,540,188
Current portion of
long-term debt 301,091 291,036
Current portion of
obligations under
operating leases 555,672 583,429
Current portion of
obligations under
financing leases 133,408 130,464
Convertible promissory
note 2,455,000 2,440,000
Contract liabilities,
including $0 and $2,000
with related parties as
of March 31, 2025 and
December 31, 2024,
respectively 119,417 203,607
Total current
liabilities 13,716,019 14,969,609
Obligations under
operating leases,
non-current 662,291 799,385
Obligations under
financing leases,
non-current 314,167 348,807
Warrant liabilities 785,551 1,449,000
Long-term debt 414,268 496,623
Total liabilities 15,892,296 18,063,424
------------ --------------
Commitments and
contingencies (Note 14)
Redeemable noncontrolling
interests
Convertible preferred units,
1,500,000 units issued and
outstanding as of March 31,
2025 and December 31, 2024,
respectively 16,536,108 16,130,871
Class B Units 38,097,300 115,693,900
Stockholders' equity
Class V common stock,
$0.0001 par value,
100,000,000 authorized
shares; 26,730,000 and
35,230,000 shares issued
and outstanding as of
March 31, 2025, and
December 31, 2024,
respectively 2,673 3,523
Class A common stock,
$0.0001 par value,
300,000,000 authorized
shares; 21,796,464 and
13,252,964 shares issued
and outstanding as of
March 31, 2025, and
December 31, 2023,
respectively 2,180 1,326
Additional paid in
capital 16,486,224 14,523,963
Accumulated deficit (39,568,892) (103,440,891)
------------ --------------
Total stockholders' deficit (23,077,815) (88,912,079)
Total liabilities,
redeemable noncontrolling
interests and stockholders'
(deficit) equity $ 47,447,889 $ 60,976,116
============ ==============
ZEO ENERGY CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Three months ended March 31,
----------------------------------
2025 2024
---------------- ------------
Revenue, net $ 6,216,391 $ 11,329,387
Related party revenue, net 2,567,304 8,812,769
Total revenue 8,783,695 20,142,156
Operating costs and expenses:
Cost of goods sold (exclusive
of items shown below) 4,789,679 13,957,966
Depreciation and amortization 4,900,729 459,529
Sales and marketing 2,137,092 6,553,787
General and administrative 10,467,593 3,219,422
Total operating expenses 22,295,093 24,190,704
(Loss) income from operations (13,511,398) (4,048,548)
Other (expenses) income, net:
Other income, net 82,363 -
Change in fair value of warrant
liabilities 663,449 (138,000)
Interest expense (30,277) (35,222)
Total other expense, net 715,535 (173,222)
------------ -----------
Net (loss) income before taxes (12,795,863) (4,221,770)
Income tax (expense) benefit (523,500) 114,668
------------ -----------
Net (loss) income (13,319,363) (4,107,102)
Net (loss) attributable to
Sunergy Renewables LLC prior
to the Business Combination - (523,681)
------------ -----------
Net (loss) income subsequent to
the Business Combination (13,319,363) (3,583,421)
Net (loss) income attributable
to redeemable non-controlling
interests (6,958,098) (2,051,930)
Net (loss) income attributable to
Class A common stock $ (6,361,265) $ (1,531,491)
============ ===========
Basic and diluted net (loss)
income per common unit $ (0.48) $ (1.54)
============ ===========
Weighted average units
outstanding, basic and
diluted 13,252,964 994,345
============ ===========
ZEO ENERGY CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Three Months Ended March 31,
----------------------------------
2025 2024
---------------- ------------
Cash Flows from Operating Activities
Net (loss) income $ (13,319,363) $ (4,107,102)
Adjustment to reconcile net (loss)
income to cash (used in) provided by
operating activities
Depreciation and amortization 4,900,729 459,529
Interest income - -
Change in fair value of warrant
liabilities (663,449) 138,000
Provision for credit losses 3,538,569 150,000
Noncash operating lease expense 180,643 152,717
Stock based compensation expense 2,257,139 3,118,584
Changes in operating assets and
liabilities:
Accounts receivable 1,742,907 (2,297,517)
Accounts receivable due from
related parties (94,441) (2,692,841)
Inventories 25,075 (28,968)
Prepaid installation costs (513,196) 4,448,953
Prepaids and other current
assets 1,138,288 (1,420,528)
Other assets (37,656) (109,443)
Accounts payable 788,747 (400,861)
Accrued expenses and other
current liabilities (919,417) (691,316)
Accrued expenses and other
current liabilities due to
related parties (1,038,972) (2,148,960)
Contract liabilities (82,190) (3,508,323)
Contract liabilities due to
related parties (2,000) (1,054,263)
Operating lease payments (164,851) (159,650)
Net cash (used in) provided by
operating activities (2,263,438) (10,151,989)
Cash flows from Investing Activities
Purchases of property, equipment and
other assets (372,578) (226,076)
Net cash used in investing
activities (372,578) (226,076)
------------ -----------
Cash flows from Financing Activities
Principal payment of finance lease
liabilities (31,696) (28,537)
Proceeds from the issuance of
convertible preferred stock, net of
transaction costs - 10,277,275
Repayments of debt (72,300) (71,855)
Distributions to members - (90,000)
------------ -----------
Net cash provided by (used in)
financing activities (103,996) 10,086,883
Net (decrease) increase in cash and
cash equivalents (2,740,012) (291,182)
Cash and cash equivalents, beginning
of period 5,634,115 8,022,306
-----------
Cash and cash equivalents, end of
the period $ 2,894,103 $ 7,731,124
============ ===========
Supplemental Cash Flow Information
Cash paid for interest $ 25,785 $ 34,060
Cash paid for income taxes $ - $ -
Noncash finance lease expense $ 34,119 $ 34,118
Non-cash transactions
Deferred equity issuance costs $ - $ 3,269,039
Issuance of Class A common stock to
vendors $ - $ 891,035
Issuance of Class A common stock to
backstop investors $ - $ 1,569,463
Preferred dividends $ 405,237 $ 8,224,091
(END) Dow Jones Newswires
June 16, 2025 16:05 ET (20:05 GMT)
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