1H 2026 revenue increased 9.2%
Continued focus on identifying accretive commercial opportunities and controlling costs
NEW PORT RICHEY, Fla., Aug. 14, 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 second quarter and first half ended June 30, 2026.
Second Quarter and First Half Financial and Operational Highlights
-
Second quarter revenue was $16.2 million, down 10.7% from the $18.1 million in the prior year quarter, although in the first half 2026 revenue increased 9.2% as described further below.
-
Gross profit for the quarter decreased to $7.6 million from $10.8 million in the prior year quarter.
-
Contribution profit increased to $3.4 million from $2.7 million in the prior year quarter.
-
Net loss was $(2.7) million in the second quarter, unchanged from a loss of $(2.7) million in the prior year quarter.
-
Second quarter Adjusted EBITDA (a non-GAAP financial measure reconciled below) was a loss of $(2.1) million compared to Adjusted EBITDA of $1.6 million in the prior year quarter.
-
Revenue for the first six months of 2026 increased 9.2% to $29.4 million compared to $26.9 million in the first six months of 2025.
-
Gross profit for the first six months of 2026 decreased to $13.2 million from $14.8 million in the prior year quarter.
-
Contribution profit for the first six months increased to $5.7 million from $(0.0) million in the first six months of 2025.
-
Net loss for the first six months of 2026 was $(7.4) million compared to $(16.0) million in the first six months of 2025.
-
Adjusted EBITDA loss for the first six months of 2026 was $(5.0) million compared to $(3.9) million in the first six months of 2025.
Management Commentary
"Zeo continues to generate results that are outpacing the residential solar market, and we believe we have successfully turned a corner as we enter a new growth cycle," said Zeo Energy Corp. CEO Tim Bridgewater. "Revenues in the second quarter improved 23% sequentially versus our first quarter 2026 revenues. While the industry has seen a 40% decrease in permits for residential solar during the first half of the year, our revenues were up 9% ( 1). We continue to invest in our commercial energy strategy to support data center partners. In addition, we have made investments in our operational processes to improve overall costs. We expect these investments to bear fruit in the second half of the year and enhance operating profit. Overall, we believe we are well positioned to further separate ourselves from our peers."
Mr. Bridgewater continued, "Longer term, we are optimistic about our growth potential in our core residential solar business. As an example, we are seeing improving access to tax equity capital in the residential solar market. After a period of reduced investor activity, Zeo's principal financing partner closed multiple tax equity funds in 2026, a positive sign of normalization. Zeo has strengthened its relationship with this partner, with greater alignment to expand funding capacity and support higher installation volumes. These developments provide a foundation for growth through the balance of 2026 and into 2027 as the market for residential solar becomes more robust."
Lastly, Mr. Bridgewater commented on the Company's commercial opportunities outlook, "We continue to evaluate several long-duration energy storage projects to support behind-the-meter power. We remain focused on diversifying Zeo Energy into commercial energy, including data center and renewable applications, and remain opportunistic in identifying and integrating the right set of assets that will fit into our overall operating business and align with our vision to build a comprehensive energy solutions platform."
Second Quarter 2026 Financial Results
Results compare the second quarter of 2026 ended June 30, 2026 to the second quarter of 2025 ended June 30, 2025.
-
Net revenue was $16.2 million in the second quarter of 2026, down 10.7% from $18.1 million in the prior year period due to a decrease in the number of solar system installations.
-
Gross profit decreased to $7.6 million, 47.1% of net revenue, in the second quarter of 2026 from $10.8 million, 59.8% of net revenue, in the prior year period. The decrease in gross profit was due to decreased revenue while margins were lower due to higher sourcing of domestic content.
-
Contribution profit in the second quarter of 2026 increased to $3.4 million from $2.7 million in the prior year period and contribution margin increased to 21.1% of revenue from 15.1% of revenue in the prior year period due to better cost control.
-
Net loss for the second quarter of 2026 was $(2.7) million; the same as the prior year period. Overall, Zeo's operating expenses were down $1.8 million, or 8.6%, compared to the prior year period. This resulted in a narrowing of loss per share to $(0.07) from $(0.11).
-
Adjusted EBITDA decreased to a loss of $(2.1) million, (13.0)% of net revenue, in the second quarter of 2026 from approximately $1.6 million, 9.0% of net revenue, in the prior year period. The decrease was primarily related to lower depreciation and amortization, revenues, and stock-based compensation expenses.
First Half 2026 Financial Results
Results compare the first six months of 2026 ended June 30, 2026 to the first six months of 2025 ended June 30, 2025.
-
Net revenue was $29.4 million in the first six months of 2026, up 9.2% from $26.9 million in the prior year period as a result of an increase in the number of solar system installations in the first half of 2026.
-
Gross profit decreased to $13.2 million, 45.1% of net revenue, in the first six months of 2026 from $14.8 million, 55.1% of net revenue, in the prior year period due to higher sourcing of domestic content.
-
Contribution profit increased to $5.7 million in the first six months of 2026 from $(0.0) million in the prior year period, and contribution margin increased to 19.2% of revenue from (0.1)% of revenue in the prior year period due better cost control.
-
Net loss in the first six months of 2026 was $(7.4) million compared to $(16.0) million in the prior year period. The decrease in loss was driven by higher revenue, lower operating expenses, including lower depreciation and amortization and sales and marketing expenses. Overall, Zeo's operating expenses were down $6.1 million, or 14.2%, as compared to the prior year period. This resulted in a narrowing of loss per share to $(0.17) from $(0.44).
-
Adjusted EBITDA decreased to a loss of $(5.0) million, (16.9)% of net revenue, from $(3.9) million, (14.4)% of net revenue, in the prior year period.
(1) Based on data from Ohm Analytics comparing January through May of 2026 compared to January through May of 2025 and second quarter and first half year-over-year results from SunPower and SunRun, both comparables of Zeo Energy.
Additional information regarding Zeo's results of operations for the quarter ended June 30, 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, notably "Adjusted EBITDA" and "Adjusted EBITDA margin". 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 June 30, 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
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Net loss
$
(2,749,966
)
$
(2,679,464
)
$
(7,441,277
)
$
(15,998,827
)
Adjustments:
Other income
(101,200
)
(53,328
)
(169,637
)
(135,691
)
Interest expense
32,429
(29,989
)
43,282
288
Gain on change in fair value of derivative liability
(232,500
)
–
(232,500
)
–
(Gain) loss on change in fair value of warrant liabilities
(34,500
)
96,269
41,400
(567,180
)
Income tax provision (benefit)
96,782
(186,994
)
4,653
336,506
Stock-based compensation
634,228
1,078,201
1,328,596
3,335,340
Transaction-related expenses
–
226,439
138,723
1,072,298
Depreciation and amortization
248,171
3,175,452
1,329,699
8,076,181
Adjusted EBITDA
$
(2,106,556
)
$
1,626,586
$
(4,957,061
)
$
(3,881,085
)
Net loss margin
(17.0
)%
(14.8
)%
(25.3
)%
(59.5
)%
Adjusted EBITDA margin
(13.0
)%
9.0
%
(16.9
)%
(14.4
)%
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
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Net loss
$
(2,749,966
)
$
(2,679,464
)
$
(7,441,277
)
$
(15,998,827
)
Adjusted EBITDA
$
(2,106,556
)
$
1,626,586
$
(4,957,061
)
$
(3,881,085
)
Net loss margin
(17.0
)%
(14.8
)%
(25.3
)%
(59.5
)%
Adjusted EBITDA margin
(13.0
)%
9.0
%
(16.9
)%
(14.4
)%
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," "aim," "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 operational or 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 and other 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 significant 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 risks (including those that impact the price of energy) 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)
June 30,
December 31,
2026
2025
(Unaudited)
ASSETS
Current Assets
Cash and cash equivalents
$
2,451,981
$
6,137,939
Accounts receivable, net of allowance of $2,010,535 and $4,777,550, respectively
10,015,739
8,158,909
Accounts receivable – related party
286,638
611,807
Inventories
820,547
852,179
Contract assets
2,000,117
2,598,623
Prepaid expenses and other current assets
4,042,046
4,192,590
Total Current Assets
19,617,068
22,552,047
Other assets
61,277
92,712
Property and equipment, net
1,975,341
2,830,490
Operating lease right-of-use assets
603,128
897,476
Finance lease right-of-use assets
242,302
310,539
Note receivable – related party
6,383,149
3,153,485
Goodwill
27,091,695
27,091,695
TOTAL ASSETS
$
55,973,960
$
56,928,444
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable
$
4,721,355
$
3,769,078
Accrued expenses and other current liabilities
3,148,309
2,421,237
Customer advances – related party
3,779,066
49,269
Contract liabilities
244,033
1,301,393
Current portion of operating lease obligations
495,687
684,819
Current portion of finance lease obligations
149,534
142,095
Current portion of long-term debt
24,858
23,526
Total Current Liabilities
12,562,842
8,391,417
Operating lease obligations, net of current portion
166,944
304,295
Finance lease obligations, net of current portion
132,189
208,865
Long-term debt, net of current portion
42,815
55,586
Convertible note, net
529,082
–
Derivative liability
699,100
–
Warrant liabilities
532,680
491,280
TOTAL LIABILITIES
14,665,652
9,451,443
Redeemable Noncontrolling Interests
Class A convertible preferred units, 1,500,000 units issued and outstanding as of June 30, 2026 and December 31, 2025
17,925,295
17,207,469
Class B units, 21,380,000 and 22,880,000 units issued and outstanding as of June 30, 2026 and December 31, 2025, respectively
14,119,352
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 June 30, 2026 and December 31, 2025, respectively
2,288
2,438
Class A common stock, $0.0001 par value, 300,000,000 authorized shares; 35,399,972 and 33,180,843 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively
3,540
3,318
Additional paid-in capital
65,679,328
63,394,456
Accumulated other comprehensive income (loss)
15,898
(4,895
)
Accumulated deficit
(56,437,393
)
(58,064,985
)
TOTAL STOCKHOLDERS' EQUITY
9,263,661
5,330,332
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS' EQUITY
$
55,973,960
$
56,928,444
ZEO ENERGY CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Revenues
Revenue, net
$
15,547,544
$
9,976,447
$
27,703,065
$
16,192,838
Related party revenue, net
621,919
8,125,483
1,651,342
10,692,787
Total Net Revenues
16,169,463
18,101,930
29,354,407
26,885,625
Operating Expenses
Cost of revenues
8,545,576
7,284,487
16,125,622
12,074,166
Depreciation and amortization
248,171
3,175,452
1,329,699
8,076,181
Sales and marketing
4,416,419
5,629,040
7,428,189
7,766,132
General and administrative
5,948,252
4,866,457
12,224,976
15,334,050
Total Operating Expenses
19,158,418
20,955,436
37,108,486
43,250,529
LOSS FROM OPERATIONS
(2,988,955
)
(2,853,506
)
(7,754,079
)
(16,364,904
)
Other Income (Expense)
Other income
101,200
53,328
169,637
135,691
Interest expense
(32,429
)
29,989
(43,282
)
(288
)
Gain on change in fair value of derivative liability
232,500
–
232,500
–
Gain (loss) on change in fair value of warrant liabilities
34,500
(96,269
)
(41,400
)
567,180
Total Other Income (Expense)
335,771
(12,952
)
317,455
702,583
NET LOSS BEFORE INCOME TAXES
(2,653,184
)
(2,866,458
)
(7,436,624
)
(15,662,321
)
Income tax benefit (provision)
(96,782
)
186,994
(4,653
)
(336,506
)
NET LOSS
$
(2,749,966
)
$
(2,679,464
)
$
(7,441,277
)
$
(15,998,827
)
Less: Net loss attributable to redeemable non-controlling interests
(414,736
)
(263,628
)
(1,593,373
)
(7,221,726
)
NET LOSS ATTRIBUTABLE TO CLASS A COMMON STOCKHOLDERS
$
(2,335,230
)
$
(2,415,836
)
$
(5,847,904
)
$
(8,777,101
)
LOSS PER CLASS A COMMON SHARE
BASIC AND DILUTED
$
(0.07
)
$
(0.11
)
$
(0.17
)
$
(0.44
)
WEIGHTED-AVERAGE CLASS A COMMON SHARES OUTSTANDING
BASIC
35,194,815
22,096,464
34,296,809
19,983,013
DILUTED
35,837,664
22,096,464
34,618,233
19,983,013
COMPREHENSIVE INCOME
Foreign currency translation adjustments
7,647
–
20,793
–
NET COMPREHENSIVE LOSS
$
(2,327,583
)
$
(2,415,836
)
$
(5,827,111
)
$
(8,777,101
)
ZEO ENERGY CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Six Months Ended
June 30,
2026
2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss
$
(7,441,277
)
$
(15,998,827
)
Adjustment to reconcile net loss to net cash used in operating activities
Depreciation and amortization
1,329,699
8,076,181
Amortization of debt discount
17,814
–
Interest added to note receivable – related party
(79,664
)
(75,786
)
Gain on change in fair value of derivative liability
(232,500
)
–
(Gain) loss on change in fair value of warrant liabilities
41,400
(567,180
)
Stock-based compensation
1,297,281
3,271,831
Class A common stock issued to employees for services
31,315
63,509
Provision for credit losses
471,044
3,270,881
Non-cash operating lease expense
336,073
318,763
Changes in operating assets and liabilities:
Accounts receivable
(2,327,874
)
1,310,867
Accounts receivable – related party
325,169
133,512
Inventories
31,632
(45,265
)
Contract assets
598,506
(9,177
)
Contract assets – related parties
–
(2,705,295
)
Prepaids and other current assets
141,094
495,250
Other assets
31,435
(1,005,197
)
Accounts payable
972,687
2,269,487
Accrued expenses and other current liabilities
837,649
(1,038,671
)
Customer advances – related party
3,729,797
(2,000,674
)
Contract liabilities
(1,057,360
)
2,936
Contract liabilities – related party
–
(2,000
)
Operating lease payments
(368,208
)
(315,079
)
Net cash used in operating activities
(1,314,288
)
(4,549,934
)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment
(406,315
)
(807,025
)
Investment in note receivable – related party
(3,150,000
)
–
Net cash used in investing activities
(3,556,315
)
(807,025
)
CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from Class A common stock issued in connection with a committed equity facility
13,455
–
Net proceeds from convertible note
1,500,000
–
Debt issuance costs paid
(57,132
)
–
Repayments of finance lease liabilities
(69,237
)
(63,651
)
Repayments of debt
(11,439
)
(144,814
)
Dividends paid to OpCo Class A preferred unit holders
(160,153
)
–
Tax withholdings paid related to stock-based compensation
(30,107
)
–
Net cash provided by (used in) financing activities
1,185,387
(208,465
)
Effect of foreign exchange on cash
(742
)
–
NET CHANGE IN CASH AND CASH EQUIVALENTS
(3,685,958
)
(5,565,424
)
Cash and cash equivalents, beginning of period
6,137,939
5,634,115
Cash and cash equivalents, end of the period
$
2,451,981
$
68,691
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for interest
$
20,664
$
49,672
Cash paid for income taxes
$
–
$
–
NON-CASH INVESTING AND FINANCING ACTIVITIES
Net loss attributable to redeemable noncontrolling interest
$
2,471,352
$
8,049,929
OpCo Class A preferred dividends
$
877,979
$
828,203
Subsequent measurement of redeemable noncontrolling interest
$
7,475,496
$
15,999,471
Class A common stock issued upon vesting of restricted stock awards
$
38
$
5
Class A common stock issued in exchange for Class V common stock
$
150
$
875
Fair value of Class A common stock issued in exchange for OpCo Class B units
$
873,000
$
19,202,500
Class A common stock issued for commitment fee
$
100,000
$
–
Reverse recapitalization related deferred taxes and adjustments
$
–
$
238,491
Fair value of derivative liability recognized upon issuance of convertible note
$
931,600
$
–
Original issue discount on convertible note
$
170,000
$
–
Right-of-use assets obtained in exchange for new operating lease liabilities
$
41,725
$
68,760
