Zeo Energy Corp. Reports Second Quarter 2025 Financial Results
Recent Operational Highlights
Completed acquisition of 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.
Successfully staffed and sold into existing and new markets, including Virginia, during the peak summer sales season.
Joined the Russell Microcap ® Index following the conclusion of the 2025 Russell US Indexes annual reconstitution.
Management Commentary
'In the second quarter we returned to growth and executed well through most of our peak selling season,' said Zeo Energy Corp. CEO Tim Bridgewater. 'During the period we generated $18.1 million in revenue, a 22% increase from the prior year driven by our expansion into new markets and the early results of our investments in a year-round sales force. At the same time, we remain committed to profitable growth, which has enabled us to operate with a long-term outlook, even during subdued residential solar market conditions. Our recently completed acquisition of Heliogen is a clear example of this approach in action. Heliogen's strong balance sheet bolsters our current competitive positioning while its long-duration energy storage technology also diversifies our revenue streams into attractive and growing markets including behind-the-meter energy solutions for data center customers. As we head into the second half of the year, we are well positioned to build on our current momentum and are actively pursuing additional growth opportunities in a favorable buyer's market.'
First Six Months 2025 Financial Results
Results compare the six months ended June 30, 2025 to the six months ended June 30, 2024.
Total revenue was $26.9 million, a 23.0% decrease from $34.9 million in the comparable 2024 period. The primary reason for the decrease in revenue was a decrease in deferred revenue recognized in first quarter of 2025 compared to the first quarter of 2024. The first quarter of 2024 benefited from systems which were installed at the end of 2023 that were recognized in 2024.
Gross profit increased to $14.4 million (53.5% of total revenue) from $13.6 million (38.9% of total revenue) in the comparable 2024 period. The increase was driven primarily by an improvement in cost of goods sold, mainly driven by the impact of the costs associated with the deferred revenue in 2023 being deferred to 2024. There were no such costs in 2025.
Net loss was $16.0 million compared to $5.9 million in the comparable 2024 period. The decrease is primarily due to a decrease in revenue related to softer residential solar market conditions in the first quarter of the year.
Adjusted EBITDA, a non-GAAP measurement of operating performance reconciled below, decreased to $(5.0) million (18.4% of total revenue) from $(0.2) million (0.6% of total revenue) in the comparable 2024 period. The change was primarily related to the change in net loss.
Second Quarter 2025 Financial Results
Results compare the 2025 second quarter ended June 30, 2025 to the 2024 second quarter ended June 30, 2024.
Total revenue was $18.1 million in Q2 2025, a 22.3% increase from $14.8 million in the comparable 2024 period. The increase was largely due to an increase in installations and revenues compared to the prior year. Gross profit increased to $10.6 million (58.6% of total revenue) in Q2 2025 from $7.6 million (51.2% of total revenue) in the comparable 2024 period. The increase was driven in part by an increase in the average selling price of contracts to customers compared to the prior year.
Net loss for Q2 2025 was $2.7 million compared to $1.8 million in the comparable 2024 period. The increase was partially due to an increase in operating expenses primarily related to efforts to include year-round sales through digital lead generation.
Adjusted EBITDA, a non-GAAP measurement of operating performance reconciled below, increased to $1.4 million (7.7% of total revenue) in Q2 2025 from approximately $(0.8) million (5.2% 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 regional 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
June 30, Six Months Ended
June 30,
2025 2024 2025 2024
Total net loss $ (2,679,464) $ (1,757,319) $ (15,998,827) $ (5,864,421)
Adjustments:
Other income, net (53,328) (50,821) (135,691) (50,821)
Interest expense (29,989) 49,808 288 85,030
Change in fair value of warrant liabilities 96,269 (828,000) (567,180) (690,000)
Income tax provision 73,708 (76,538) 597,208 191,206
Stock-based compensation 1,078,202 2,984,938 3,335,340 5,598,689
Depreciation and amortization 3,175,452 453,669 8,076,181 913,198
Adjusted EBITDA $ 1,400,153 $ 775,737 $ (4,953,378) $ (199,531)
Net loss margin (14.8)% (11.9)% (59.5)% (16.8)%
Adjusted EBITDA margin 7.7 % 5.2 % (18.4)% (0.6)%
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
June 30, Six Months Ended
June 30,
2025 2024 2025 2024
Total net loss $ (2,679,464) $ (1,757,319) $ (15,998,827) $ (5,864,421)
Adjusted EBITDA $ 1,400,153 $ 775,737 $ (4,953,378) $ (199,531)
Adjusted EBITDA margin 7.7 % 5.2 % (18.4)% (0.6)%
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)
June 30, December 31,
2025 2024
ASSETS (Unaudited)
Current Assets
Cash and cash equivalents $ 68,691 $ 5,634,115
Accounts receivable, net 5,413,133 9,994,881
Accounts receivable – related parties 58,150 191,662
Inventories 917,735 872,470
Contract assets 73,379 64,202
Contract assets – related parties 2,705,295 -
Prepaid expenses and other current assets 1,579,713 2,131,345
Total Current Assets 10,816,096 18,888,675
Other assets 1,081,132 314,426
Other assets – related parties 75,786 -
Property and equipment, net 2,849,966 2,475,963
Operating lease right-of-use assets 1,018,136 1,268,139
Finance lease right-of-use assets 378,775 447,012
Related party note receivable 3,000,000 3,000,000
Intangibles, net - 7,571,156
Goodwill 27,010,745 27,010,745
TOTAL ASSETS $ 46,230,636 $ 60,976,116
LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND STOCKHOLDERS' DEFICIT
Current Liabilities
Accounts payable $ 5,050,372 $ 2,780,885
Accrued expenses and other current liabilities 4,116,182 5,181,087
Accrued expenses and other current liabilities – related parties 1,358,427 3,359,101
Contract liabilities 204,543 201,607
Contract liabilities – related parties - 2,000
Current portion of operating lease obligations 567,625 583,429
Current portion of finance lease obligations 136,942 130,464
Current portion of long-term debt 305,362 291,036
Convertible promissory note, net 2,470,000 2,440,000
Total Current Liabilities 14,209,453 14,969,609
Operating lease obligations, net of current portion 568,870 799,385
Finance lease obligations, net of current portion 278,678 348,807
Long-term debt, net of current portion 337,483 496,623
Warrant liabilities 881,820 1,449,000
TOTAL LIABILITIES 16,276,304 18,063,424
Redeemable Non-Controlling Interests
Convertible preferred units, 1,500,000 units issued and outstanding as of June 30, 2025 and December 31, 2024 16,959,074 16,130,871
Class B Units 72,442,000 115,693,900
Stockholders' Deficit
Class V common stock, $0.0001 par value, 100,000,000 authorized shares; 26,480,000 and 35,230,000 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively 2,648 3,523
Class A common stock, $0.0001 par value, 300,000,000 authorized shares; 22,096,464 and 13,252,964 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively 2,210 1,326
Additional paid-in capital 36,766,921 14,523,963
Accumulated deficit (96,218,521) (103,440,891)
TOTAL STOCKHOLDERS' DEFICIT (59,446,742) (88,912,079)
TOTAL LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND STOCKHOLDERS' DEFICIT $ 46,230,636 $ 60,976,116
Three Months Ended
June 30, Six Months Ended
June 30,
2025 2024 2025 2024
Revenues
Revenue, net $ 9,976,447 $ 7,798,646 $ 16,192,838 $ 19,128,033
Related party revenue, net 8,125,483 6,997,626 10,692,787 15,810,395
Total Revenues 18,101,930 14,796,272 26,885,625 34,938,428
Operating Expenses
Cost of revenues 7,284,487 7,059,839 12,074,166 21,017,805
Depreciation and amortization 3,175,452 453,669 8,076,181 913,198
Sales and marketing 5,629,040 4,422,063 7,766,132 10,975,850
General and administrative 4,866,457 5,523,571 15,334,050 8,742,993
Total Operating Expenses 20,955,436 17,459,142 43,250,529 41,649,846
LOSS FROM OPERATIONS (2,853,506) (2,662,870) (16,364,904) (6,711,418)
Other Income (Expense)
Other income 53,328 50,821 135,691 50,821
Interest expense 29,989 (49,808) (288) (85,030)
Gain (loss) on change in fair value of warrant liabilities (96,269) 828,000 567,180 690,000
Total Other Income (Expense) (12,952) 829,013 702,583 655,791
NET LOSS FROM OPERATIONS BEFORE INCOME TAXES (2,866,458) (1,833,857) (15,662,321) (6,055,627)
Income tax provision 186,994 76,538 (336,506) 191,206
NET LOSS $ (2,679,464) $ (1,757,319) $ (15,998,827) $ (5,864,421)
Less: net loss attributable to Sunergy Renewables LLC prior to the business combination - - - (523,681)
NET LOSS SUBSEQUENT TO THE BUSINESS COMBINATION (2,679,464) (1,757,319) (15,998,827) (5,340,740)
Less: Net loss attributable to redeemable non-controlling interests (263,638) (1,479,529) (7,221,726) (3,531,459)
NET LOSS ATTRIBUTABLE TO CLASS A COMMON STOCKHOLDERS $ (2,415,836) $ (277,790) $ (8,777,101) $ (1,809,281)
LOSS PER CLASS A COMMON SHARE – BASIC AND DILUTED $ (0.11) $ (0.06) $ (0.44) $ (0.60)
WEIGHTED-AVERAGE CLASS A COMMON SHARES OUTSTANDING – BASIC AND DILUTED 22,096,464 5,026,964 19,983,013 3,010,654
Six Months Ended
June 30,
2025 2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (15,998,827) $ (5,864,421)
Adjustment to reconcile net loss to cash used in operating activities
Depreciation and amortization 8,076,181 913,198
Gain on change in fair value of warrant liabilities (567,180) (690,000)
Stock-based compensation 3,271,831 5,598,689
Class A common stock issued to employees for services 63,509 -
Provision for credit losses 3,270,881 250,000
Non-cash operating lease expense 318,763 307,221
Changes in operating assets and liabilities:
Accounts receivable 1,310,867 (4,452,021)
Accounts receivable – related parties 133,512 (422,724)
Inventories (45,265) (86,506)
Contract assets (9,177) 3,767,859
Contract assets – related parties (2,705,295) -
Prepaids and other current assets 495,250 (922,679)
Other assets (1,005,197) (201,381)
Other assets – related parties (75,786) -
Accounts payable 2,269,487 (2,459,688)
Accrued expenses and other current liabilities (1,038,671) (1,347,027)
Accrued expenses and other current liabilities – related parties (2,000,674) (1,631,439)
Contract liabilities 2,936 (3,637,081)
Contract liabilities – related parties (2,000) (1,150,948)
Operating lease payments (315,079) (322,802)
Net cash used in operating activities (4,549,934) (12,351,750)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment (807,025) (330,829)
Net cash used in investing activities (807,025) (330,829)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of convertible preferred stock, net of transaction costs - 10,277,275
Repayments of debt (144,814) (127,107)
Repayments of finance lease liabilities (63,651) (57,775)
Distributions to members - (90,000)
Net cash (used in) provided by financing activities (208,465) 10,002,393
NET CHANGE IN CASH AND CASH EQUIVALENTS (5,565,424) (2,680,186)
Cash and cash equivalents, beginning of period 5,364,115 8,022,306
Cash and cash equivalents, end of the period $ 68,691 $ 5,342,120
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for interest $ 49,672 $ 60,238
Cash paid for income taxes $ - $ -
NON-CASH INVESTING AND FINANCING ACTIVITIES
Net loss attributable to redeemable non-controlling interest $ 8,049,929 $ 12,139,938
OpCo class A preferred dividends $ 828,203 $ 8,608,479
Subsequent measurement of redeemable non-controlling interest $ 15,999,471 $ (58,542,890)
Class A common stock issued upon vesting of restricted stock awards $ 5 $ -
Class A common stock issued in exchange for class V common stock $ 875 $ -
Fair value of class A common stock issued in exchange for OpCo class B units $ 19,202,500 $ -
Reverse recapitalization related deferred taxes and adjustments $ 238,491 $ -
Operating lease right-of-use asset and liability measurement $ 68,760 $ -
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
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
10 minutes ago
- Globe and Mail
Lam Research Corp: Navigating the Financial Risks of Global Health Crises
Lam Research Corp (LRCX) has disclosed a new risk, in the Natural and Human Disruptions category. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Lam Research Corp faces significant risks from epidemics, pandemics, or disease outbreaks, which can severely impact its business operations and financial performance. Governmental measures to control disease spread, such as quarantines and travel bans, can restrict business activities, leading to facility closures, production delays, and supply chain disruptions. These challenges may result in increased costs, reduced revenues, and decreased profitability, potentially causing material adverse effects on the company's financial results. Additionally, global health crises can disrupt financial markets and economic stability, affecting customer demand and the company's access to financing. The average LRCX stock price target is $112.52, implying 6.88% upside potential. To learn more about Lam Research Corp's risk factors, click here.
Globe and Mail
13 minutes ago
- Globe and Mail
Stock Market Today: Bitmine Pops 5% as Crypto Infrastructure Stocks Surge
Bitmine Immersion Technologies (NYSEMKT: BMNR) rallied 5.9% on Wednesday to close at $62.44, extending its recent gains on a sharp uptick in trading volume. More than 128 million shares changed hands--nearly five times the company's three-month average--suggesting growing interest in the crypto infrastructure space. The stock remains well off its 52-week high of $161.00 but has recovered dramatically from its low of $1.93 earlier this year. Markets broadly advanced, with the Nasdaq Composite gaining 1.4% and the S&P 500 rising 1.1%, lifted by encouraging inflation data and renewed risk appetite across tech and growth sectors. Bitmine outperformed other crypto-exposed names, with Riot Platforms (NASDAQ: RIOT) rising 2.8% and Marathon Digital Holdings Inc (NASDAQ: MARA) up just 0.4%. Traders appear to favor Bitmine's differentiated positioning in immersion cooling infrastructure -- a technology increasingly adopted by large-scale Bitcoin (CRYPTO: BTC) miners and artificial intelligence (AI) server operators. Investor interest followed Bitmine's announcement that it plans to issue up to $20 billion worth of new stock to purchase additional Ethereum (CRYPTO: ETH) for its corporate treasury. The move, which would represent one of the largest public crypto accumulation strategies to date, reflects the company's aggressive bet on Ethereum's long-term value and potential to serve as a foundational asset for its infrastructure and liquidity goals. Should you invest $1,000 in Bitmine Immersion Technologies right now? Before you buy stock in Bitmine Immersion Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bitmine Immersion Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 11, 2025 Daily Stock News has no position in any of the stocks mentioned. This article was generated with GPT-4o, OpenAI's large-scale language-generation model and has been reviewed by The Motley Fool's AI quality control systems.
Globe and Mail
40 minutes ago
- Globe and Mail
Arkay Beverages Announces the Expansion of Zero-Proof Spirits Line with New Global Rollout Set for September 2025
Arkay Beverages has announced an update to its Zero-Proof alcohol-free spirits portfolio, applied across the company's full global range, reflecting the company's continued growth and dedication to meeting evolving consumer expectations worldwide. Miami, Florida--(Newsfile Corp. - August 14, 2025) - In the latest news, Arkay Beverages announces the expansion of Zero-Proof Spirits Line. The company has maintained its formula that relies on capsaicin—the active compound in chili peppers—and natural aromas to replicate the taste and warming sensation of traditional spirits without alcohol. Arkay Beverages "Today's announcement marks the completion of a multi-year process to align all Arkay Zero-Proof products," said Reynald Vito Grattagliano, founder of Arkay Beverages. "From day one, Arkay delivers clean-label, natural-ingredient beverages that respond to what consumers are asking for in 2025." With the latest expansion worldwide, the company focuses on all manufacturing facilities, with shipments to distributors in more than 35 countries scheduled to feature the new labeling by September 2025. About Arkay Beverages: Founded in 2011, Arkay Beverages is an early innovator in the alcohol-free spirits sector, offering a full range of Zero-Proof products for adult consumers. The company operates in over 35 countries and continues to develop alternatives to traditional alcoholic drinks using only natural ingredients. Since 2011, Arkay has never used any sweeteners of any kind in its product line, which is why Arkay is so healthy.
