Summary of Complete Solaria (CSLR) FY Conference Call - August 12, 2025 Company Overview - **Company**: SunPower (CSLR) - **Speaker**: CEO TJ Rogers - **Industry**: Solar Energy Key Points and Arguments 1. **Company Strategy and Vision**: SunPower aims to leverage its technological superiority in solar energy, moving away from reliance on government subsidies and focusing on innovation and quality products [2][7][37] 2. **Historical Context**: The company has a rich history, including a significant IPO and a previous spin-off from Cypress Semiconductor, which highlights its potential for growth and profitability [12][20] 3. **Market Position**: SunPower is recognized as a leader in solar technology, with a focus on high-quality, efficient solar panels and inverters [22][37] 4. **Financial Performance**: The company reported $67 million in revenue and $2.4 million in operating profit for Q2 2025, despite challenges in the solar market [43] 5. **Growth Projections**: SunPower aims to grow its revenue from $70 million to $236 million over the next few years, with a target market cap increase from $100 million to $1.4 billion [34][36] 6. **Cost Management**: The company has implemented significant cost-cutting measures, reducing headcount and improving operational efficiency to maintain profitability [42][46] 7. **Product Development**: SunPower has partnered with REC for high-quality solar panels and replaced its previous inverter technology with Enphase's advanced microinverters, enhancing product offerings [24][27] 8. **Market Challenges**: The company faces challenges from market volatility, including the impact of the ITC (Investment Tax Credit) on revenue and profitability [42][58] Additional Important Content 1. **Technological Innovation**: The CEO emphasized the importance of software-controlled solar systems, which differentiate SunPower from competitors relying on lower-cost, less efficient products [37][33] 2. **Quality Standards**: SunPower is committed to achieving 100% quality and zero defects in its manufacturing processes, reflecting a strong focus on customer satisfaction and product reliability [40] 3. **Investor Relations**: The CEO highlighted his extensive experience in raising capital and emphasized the importance of investor confidence in the company's future growth [13][15] 4. **Market Valuation**: The current market cap is viewed as undervalued, with potential for significant appreciation based on revenue growth and market positioning [15][56] This summary encapsulates the key insights from the conference call, focusing on SunPower's strategic direction, financial performance, and market challenges while highlighting the company's commitment to innovation and quality in the solar energy sector.

OREM, Utah, July 29, 2025 (GLOBE NEWSWIRE) -- SunPower (aka Complete Solaria, Inc.) ("SunPower" or the "Company") (Nasdaq: SPWR), a solar technology, services, and installation company, today announced the Company will attend the Canaccord Genuity 45th Annual Growth Conference, on Tuesday, August 12 at the InterContinental hotel in Boston, Massachusetts. SunPower (Nasdaq: SPWR) is a leading residential solar services provider in North America. The Company's digital platform and installation services support ...

Financial Data and Key Metrics Changes - The company reported revenue of $67.5 million, a decrease from $82.7 million in the previous quarter, attributed to the ITC revenue drop and other issues [5][9][31] - Operating profit was $2.4 million, down from $2.9 million in the last quarter, indicating a healthy performance despite the revenue decline [6][12] - Gross profit suffered a hit of $3.7 million, but was partially offset by a cost-cutting program that reduced operating expenses by $4.5 million [9][10][11] Business Line Data and Key Metrics Changes - The direct business segment showed strong growth, contributing significantly to the backlog, which increased by 30% from the previous quarter [88][89] - The new homes division also experienced a resurgence, indicating potential for future revenue growth [89] - The virtual business segment's performance was not detailed, but overall, the company is focusing on high-margin business areas [87][91] Market Data and Key Metrics Changes - The company is facing challenges due to changes in laws in Nevada and Utah, which affected the classification of contractors and impacted headcount metrics [29] - The company is reallocating sales resources to states with high total addressable markets (TAM) such as California, Texas, and Florida, which are expected to remain robust despite the ITC ruling [84][85] Company Strategy and Development Direction - The company is focusing on improving sales organization effectiveness and accountability, with plans to implement a more structured forecasting process [56][58] - There is an emphasis on inorganic growth through acquisitions, with ongoing negotiations to expand the company's market presence [68][69] - The company is also investing in battery technology, recognizing its growing importance in the solar market [91][93] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about bouncing back in revenue, projecting around $70 million for the next quarter, with a profit target of $3 million [31][32] - The management acknowledged the challenges posed by the ITC elimination but believes the company is well-positioned to benefit from a less crowded industry [75][80] - There is a focus on maintaining high gross margins, with expectations to achieve normal gross margins of around 36% by 2026 [108][109] Other Important Information - The company has established a low-cost finance center in India to enhance operational efficiency [35][36] - A new interim CFO, Jeannie Nguyen, has been appointed following the departure of the previous CFO, Dan Polley [40][41] - The company is actively working on improving its public perception and stock price, addressing concerns raised by investors [61][70] Q&A Session Summary Question: How can SunPower benefit from surviving the current cycle? - Management highlighted the company's ability to generate positive operating income while peers face bankruptcy, suggesting that SunPower can leverage its strong organization and structure to capture market opportunities [75][76] Question: What is driving the backlog growth? - The backlog growth is primarily driven by the direct business segment, which has shown a strong book-to-bill ratio of 1.2, indicating improved sales performance [88][89] Question: How does the inclusion of batteries change the economics of agreements? - The attach rate for batteries is currently low at 14%, but management sees significant upside potential, aiming to increase this to 1.3x or higher over time [101][104] Question: What is the outlook for gross margins? - Management is optimistic about maintaining high gross margins due to operational efficiencies and expects to achieve normal gross margins of around 36% by 2026 [108][109]

Financial Data and Key Metrics Changes - The company reported revenue of $67.5 million for Q2 2025, a decrease from $82.7 million in the previous quarter, attributed to the ITC revenue drop and other issues [5][9] - Operating profit for the quarter was $2.4 million, down from $2.9 million in the previous quarter, indicating a healthy performance despite the revenue decline [6][12] - Gross profit was impacted by a $3.7 million hit, but was partially offset by a cost-cutting program that reduced operating expenses by $4.5 million [9][11] Business Line Data and Key Metrics Changes - The direct business segment showed strong growth, contributing significantly to the backlog, which increased by 30% from the previous quarter [88] - New homes segment also showed regrowth, indicating a positive trend in bookings [89] - The company is focusing on high-margin business areas, particularly in new homes, which is noted as the most profitable division [91][104] Market Data and Key Metrics Changes - The company is experiencing a shift in the solar market dynamics due to the elimination of the ITC, which is expected to lead to a less crowded industry [78][82] - The sales organization is being restructured to better engage with critical markets such as California, Texas, and Florida, which have high total available market potential [84] Company Strategy and Development Direction - The company is implementing a more functional organizational structure to improve sales performance and accountability [57] - There is a focus on inorganic growth through acquisitions, with ongoing negotiations for potential deals [71] - The company is also investing in battery technology, which is expected to enhance revenue potential and gross margins [100][102] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving profitability in Q3 2025, with expectations for the highest profit in the current run [71] - The company is addressing high costs of selling and slow funnel velocity, which are seen as areas for improvement [55][56] - Management acknowledged the challenges posed by the ITC changes but believes the company is well-positioned to benefit from the evolving market landscape [78][82] Other Important Information - The company has established a low-cost finance center in India to improve operational efficiency [35][36] - There have been changes in the executive team, including the departure of the CFO and the appointment of an interim CFO [39][40] Q&A Session Summary Question: How can SunPower benefit from surviving the current cycle? - Management highlighted the company's ability to generate positive operating income while peers face bankruptcy, suggesting that SunPower can leverage its strong organization and structure to capture market opportunities [78][80] Question: Can you elaborate on the backlog growth? - The backlog increased by 30% due to strong performance in the direct business and regrowth in new homes, indicating a positive trend in bookings [86][88] Question: How does the inclusion of batteries change the economics of agreements? - The attach rate for batteries is currently low at 14%, but there is significant upside potential, with expectations to increase this to 1.3x or higher over time [100][102] Question: What is the outlook for gross margins? - Management is focused on maintaining high gross margins, which are currently above industry standards, and anticipates that they will remain strong as the company grows [104][106]

[Financial Performance](index=1&type=section&id=Financial%20Performance) [Q2 2025 Financial Highlights](index=1&type=section&id=SunPower%20Revenue%20%26%20Operating%20Income) The company reported Q2 2025 non-GAAP operating profit of **$2.4 million** on revenue of **$67.5 million**, with operating profit remaining relatively stable despite an **18.4%** sequential revenue decline due to significant cost reductions and a gross margin increase from **39%** to **43%**, while the cash balance saw a slight increase to **$11.1 million** Q2 2025 vs Q1 2025 Financials (Non-GAAP) | Metric ($1000s) | Q2 2025 | Q1 2025 | Change | | :--- | :--- | :--- | :--- | | Revenue | 67,524 | 82,740 | -18.4% | | Gross Profit | 28,761 | 32,497 | -11.5% | | Gross Margin | 43% | 39% | +4 pts | | Operating Exp. (less commission) | 17,288 | 21,875 | -21.0% | | Operating Income | 2,418 | 2,938 | -17.7% | | Cash Balance | 11,125 | 10,553 | +5.4% | - Non-GAAP financials, which are used to run the company, exclude non-cash amortization of intangibles, employee stock compensation, and one-time M&A or downsizing events[6](index=6&type=chunk) - The Q2 2025 GAAP operating loss was **($2.718) million**, which is **$5.136 million** lower than the non-GAAP operating income due to non-cash events like stock-based compensation (**$3.717 million**) and amortization of intangibles (**$1.419 million**)[5](index=5&type=chunk)[7](index=7&type=chunk) [CEO Commentary and Performance Summary](index=2&type=section&id=Summary%20of%20Q2%2725%20SunPower%20Results) CEO T.J. Rodgers acknowledged that the Q2 revenue of **$67.5 million** declined faster than anticipated due to the impact of losing the ITC tax subsidy, but the company remained profitable by aggressively cutting non-GAAP operating expenses by **$4.6 million** and improving gross margin to **43%** by focusing on more profitable market segments, believing Q2'25 was the bottom of the 'revenue freeze' and reducing headcount to **861 people** - Despite revenue dropping to **$67.5 million**, further and faster than predicted, the company achieved a **$2.42 million** non-GAAP operating profit[8](index=8&type=chunk)[14](index=14&type=chunk) - Profitability was maintained through a vigorous cost reduction program, cutting operating expenses (less commission) from **$21.9 million** in Q1'25 to **$17.3 million** in Q2'25, a **$4.6 million** improvement[8](index=8&type=chunk) - The company focused on its most profitable market segments, which increased gross margin from **39%** in Q1'25 to **43%** in Q2'25[8](index=8&type=chunk) - The company's headcount has been reduced to **861 people**, who will each receive a **$500** stock bonus for the quarterly performance[17](index=17&type=chunk)[19](index=19&type=chunk) [Outlook and Corporate Developments](index=4&type=section&id=Outlook%20and%20Corporate%20Developments) [Q3 2025 Outlook](index=4&type=section&id=Outlook) SunPower forecasts modest growth for Q3 2025, with revenue expected to increase to approximately **$70 million** and operating profit projected to rise to about **$3.0 million** Q3 2025 Forecast | Metric | Forecast | | :--- | :--- | | Revenue | ~$70 million | | Operating Profit | ~$3.0 million | [Subsequent Events & Management Changes](index=4&type=section&id=Subsequent%20Events) Post-quarter, SunPower secured an agreement to collect **$16 million** in delayed accounts receivable, joined the Russell 3000 Index, and established a low-cost finance center in India, also announcing the departure of CFO Dan Foley and CLO Chais Sweat, with interim and new appointments made, and Board member Dan McCranie becoming the EVP of sales - An agreement was signed to collect **$16 million** in delayed Accounts Receivable from the Old SunPower New Homes business, with collections expected in Q3 and Q4[21](index=21&type=chunk) - The company joined the Russell 3000 and Russell Microcap Indices, which is expected to expand its shareholder base and increase stock liquidity[22](index=22&type=chunk) - A low-cost finance center was created in Chennai, India, engaging with Excelencia for accounting and MylAI for process automation[23](index=23&type=chunk) - Key management changes include: CFO Dan Foley and CLO Chais Sweat have left the company. Jeanne Nguyen is now interim CFO, and Nicolas Wenker is the new CLO. Board member Dan McCranie has become the EVP of sales[24](index=24&type=chunk)[25](index=25&type=chunk)[27](index=27&type=chunk) [Stock Performance Analysis](index=5&type=section&id=Stock%20Performance%20Analysis) [Analysis of Price-to-Sales (P/S) Ratio](index=5&type=section&id=So%2C%20Why%20Isn%27t%20the%20Stock%20Price%20Higher%3F) The company questions why its stock price is not higher, noting its Price-to-Sales (P/S) ratio is only **0.54x**, which is significantly lower than the tech stock average of **2.5x** and even below solar competitor SunRun's recently recovered **1.0x**, despite SunPower's recent profitability Price-to-Sales (P/S) Ratio Calculation (as of 7/18/2025) | Metric | Value | Calculation | | :--- | :--- | :--- | | Market Capitalization | $141.53 M | $1.81 x 80.27M shares | | Annualized Revenue | $270 M | $67.5M x 4 | | **P/S Ratio** | **0.54x** | $141.53M / $270M | - The company's P/S ratio of **0.54x** is compared unfavorably to a basket of tech stocks (**2.5x**) and solar industry leader SunRun (**1.0x**)[32](index=32&type=chunk) [Factors Impacting Stock Price and Remediation](index=6&type=section&id=Fixing%20the%20Problems%20Reducing%20Price%20to%20Sales%20Ratio) Management attributes the low stock price to negative market reaction to the ITC cancellation announcement, aggressively worded 'Risk Factors' in SEC filings that contradicted positive earnings news, and persistent negative or outdated news from stock reporting services, which the company is addressing by aiming for a third consecutive profitable quarter, pursuing acquisitions for scale, and taking a more active role in reviewing risk factor language - The stock price was negatively impacted by news leaks of the ITC cancellation and by aggressively stated Risk Factors in the Q1'25 10Q filing, which seemed to contradict the company's reported profitability[35](index=35&type=chunk) - The company is being negatively affected by stock services reporting outdated news, such as old bankruptcy filings from August 2024[37](index=37&type=chunk) - To address underlying issues and improve valuation, the company is focused on delivering a third consecutive quarter of profit in Q3'25 and is actively working on acquisitions to achieve a more sustainable scale[36](index=36&type=chunk) [Supplementary Information](index=7&type=section&id=Supplementary%20Information) [Reconciliation of GAAP to Non-GAAP Measures](index=9&type=section&id=RECONCILIATION%20OF%20NON-GAAP%20FINANCIAL%20MEASURES%20(PRELIMINARY)) The report provides a detailed reconciliation of GAAP operating income to non-GAAP net income, where for Q2 2025, the GAAP operating loss of **($2.718) million** was adjusted for **$5.136 million** in non-cash and other items, primarily stock-based compensation (**$3.717 million**) and depreciation/amortization (**$1.419 million**), resulting in a non-GAAP income of **$2.418 million** Q2 2025 GAAP to Non-GAAP Reconciliation ($1000s) | Description | Amount | | :--- | :--- | | **GAAP operating loss** | **(2,718)** | | Depreciation and amortization | 1,419 | | Stock based compensation | 3,717 | | Total of Non-GAAP adjustments | 5,136 | | **Non-GAAP net Income** | **2,418** | - Non-GAAP adjustments primarily consist of non-cash expenses such as depreciation, amortization, and stock-based compensation, as well as restructuring and acquisition costs in prior periods[43](index=43&type=chunk)[44](index=44&type=chunk) [Disclaimers](index=7&type=section&id=Disclaimers) The report includes standard disclaimers, cautioning that the financial results are preliminary and subject to change upon finalization of Q2'25 accounting procedures, and contains forward-looking statements regarding future performance, which are subject to substantial risks and uncertainties, clarifying that non-GAAP measures are used to supplement, not replace, GAAP results for better analysis of core operations - The report contains forward-looking statements regarding financial performance and cost control efforts, which are subject to risks and uncertainties and are not guarantees of future results[38](index=38&type=chunk) - The financial results presented are preliminary, unaudited, and subject to change upon finalization of the quarter-end accounting procedures[39](index=39&type=chunk) - Non-GAAP financial measures are provided as a supplement to GAAP results to facilitate analysis of the company's core operating performance by excluding certain items management does not consider indicative of ongoing operations[40](index=40&type=chunk)

Vigorous Cost Cutting Offsets ITC-Related Revenue Drop OREM, Utah, July 22, 2025 (GLOBE NEWSWIRE) -- SunPower, formerly d/b/a Complete Solaria, Inc. ("SunPower" or the "Company") (Nasdaq: SPWR), a solar technology, services, and installation company, will present its Q2'25 results via webcast today Tuesday, July 22 at 1:00pm ET. Interested parties may access the webcast by registering here or by visiting the Events page within the IR section of the company website: https://investors.sunpower.com/news-events ...

Core Viewpoint - SunPower is set to release its quarterly investor report on July 22, 2025, and the CEO expresses confidence in the company's profitability despite industry challenges [1][2]. Company Performance - SunPower will report its Q2 2025 results, marking the second consecutive quarter of operating profit after a four-year profit drought [2]. - The company has been invited to join the Russell 3000 and Russell Microcap indices, which may help improve its market reputation [2]. Industry Context - The solar industry is facing challenges due to recent ITC (Investment Tax Credit) issues, but the CEO remains optimistic about SunPower's ability to thrive in a more competitive solar market [2]. - There are concerns regarding the negative portrayal of SunPower in media outlets, particularly regarding outdated references to bankruptcy, which the company is actively trying to correct [2]. Company Overview - SunPower is a leading residential solar services provider in North America, offering digital platforms and installation services to support energy-efficient lifestyles [3].

Core Viewpoint - SunPower has been added to the Russell 3000 and Russell Microcap Indices, indicating a positive recognition of the company's transformation and potential for growth in the solar market [1][3]. Company Performance - In Q1 2025, SunPower achieved an operating profit for the first time in four years, marking a significant turnaround under the current management team [4]. - The company is expected to announce its second consecutive quarter of profitability for Q2 2025 on July 22 [4]. Industry Context - The U.S. residential solar industry is facing structural uncertainties, but the company views this as a significant opportunity for growth, especially with the elimination of the Investment Tax Credit (ITC) seen as beneficial compared to competitors [5]. - SunPower aims to leverage its brand recognition and the advantages of being included in the Russell indices to attract a broader investor audience [5]. Market Impact - The Russell indices are benchmarks for approximately $8.5 trillion in assets, with about $2 trillion tracking them passively, highlighting the importance of SunPower's inclusion for institutional investors [2].

Core Viewpoint - The solar industry, particularly SunPower, is poised for significant change as the federal government considers eliminating the 30% solar Investment Tax Credit (ITC), which could lead to both challenges and opportunities for the company and the sector as a whole [1][5][18]. Company Overview - SunPower, founded in 1985, has navigated various economic downturns and crises, including a Chapter 11 bankruptcy in 2024, attributed to management failures and reliance on government subsidies [7][9]. - The company has recently restructured under new ownership, Complete Solar, which acquired key assets and aims to operate more efficiently and profitably [10][12]. Financial Performance - SunPower reported a revenue of $1.4 billion and an operating income of $168 million in 2008, but faced significant losses leading to bankruptcy in 2024 [8][9]. - The new SunPower has achieved a revenue of $320 million with a target of $80 million per quarter, and is on track for its second profitable quarter [10][17]. - Current financial models predict a breakeven revenue of approximately $72 million, which could decrease to $65 million with ongoing cost reductions [19][26]. Market Analysis - The solar market has seen significant growth, with shipments increasing from 2,176 MW to 6,953 MW between 2015 and 2024, while prices remained relatively stable [22]. - A potential price increase from $3.30 to $3.88 per watt (17.6%) could result in a volume loss of 134 MW, impacting SunPower's revenue by approximately 7.2% [25]. - The company’s revenue is projected to drop from $80 million to $74.2 million per quarter if market conditions worsen due to the ITC phase-out [25][27]. Strategic Direction - The company advocates for a free market approach, suggesting that the removal of the ITC could ultimately benefit the solar industry by reducing reliance on government subsidies [2][5]. - SunPower's strategy involves leveraging its existing assets and workforce to create a leaner, more profitable organization, moving away from the inefficiencies associated with previous government support [14][17]. Valuation Concerns - SunPower's stock price remains low, with a price-to-sales ratio of about 0.5x, despite recent operational improvements and profitability [33][34]. - The company aims to eliminate the "going concern" rating by year-end to improve investor confidence and stock valuation [34].

Summary of SunPower's 2Q Business Update Call Company Overview - **Company**: SunPower Corporation - **Key Speaker**: TJ Rogers, CEO - **Date of Call**: June 5, 2025 Core Industry Insights - **Industry**: Solar Energy - **Key Issue**: Discussion on the potential loss of the Investment Tax Credit (ITC) and its implications for the solar industry [4][5][6] Key Points and Arguments 1. **ITC Loss Discussion**: - The company is addressing the potential loss of the ITC, which may impact the solar industry significantly [4][5] - A detailed analysis regarding the ITC will be published, indicating the company's proactive approach to the issue [5] 2. **Philosophy on Subsidies**: - TJ Rogers expressed a belief that the solar industry can thrive without government subsidies, referring to it as "free at last" [6][7][9] - He criticized past government subsidies, suggesting they create dependency and hinder true business growth [9][14] 3. **Company Strategy**: - The company is focusing on building a leaner organization, utilizing valuable assets from SunPower to create a profitable startup [16][19] - A significant reduction in operational costs has been achieved, with ongoing efforts to streamline operations [47][48] 4. **Financial Performance**: - The company reported a revenue of $80 million in the last quarter, with a projection of maintaining or exceeding this figure [46][50] - The operational income has improved, marking the first profit for SunPower in four years [50][51] 5. **Market Dynamics**: - The demand for solar energy is not solely price-dependent, as indicated by the elasticity graph presented during the call [27][28] - The company is navigating a complex market environment, with a focus on maintaining profitability despite external pressures [70][71] 6. **Stock Performance Concerns**: - The CEO expressed frustration over the company's stock performance, which has not reflected the positive operational changes [70][74] - The stock price has been affected by external market perceptions and risk factors, which the company plans to address [80][82] 7. **Future Outlook**: - The company is optimistic about its ability to adapt and thrive in a subsidy-less environment, with plans to enhance its market position [9][14][70] - There is a focus on improving the company's image and addressing investor concerns regarding risk factors [83][86] Additional Important Content - **Risk Factors**: The company acknowledges that risk factors have negatively impacted investor sentiment and plans to revise how these are communicated [80][82] - **Funding Strategy**: The CEO highlighted the importance of maintaining a strong financial position and having access to various funding avenues to ensure stability [100][104] This summary encapsulates the key discussions and insights from SunPower's 2Q business update call, focusing on the company's strategies, financial performance, and outlook in the solar energy industry.