Core Points - All 12 shareholder proposals at SunPower's Annual Meeting received over 95% approval, including the re-election of board members and the employee stock plan [2][3] - The company has transformed significantly through the SPWR asset acquisition, increasing employee count by 10 times and revenue by 14.7 times [3] - The CEO expressed confidence that the ITC phase-out will not adversely affect revenue to the point of unprofitability for the remainder of the year [4][5] Company Updates - A Business Update Call is scheduled for June 5, 2025, to discuss the company's financial performance and the impact of the ITC phase-out [5] - The company has been a leading residential solar services provider in North America since 1985, focusing on energy-efficient solutions [6]

Financial Data and Key Metrics Changes - The company reported a stable revenue forecast of $80 million for the upcoming quarter, with a worst-case scenario of $75 million, indicating resilience despite potential market fluctuations [15][16] - The company anticipates that even with adverse ITC decisions, it could see a revenue drop to $71 million in 2026 without incurring losses, showcasing a strong profit outlook for the next year [15][16] Business Line Data and Key Metrics Changes - No specific data on individual business lines was provided in the meeting Market Data and Key Metrics Changes - The company is currently navigating ITC market issues, which may cause some revenue instability in the short term, but overall forecasts remain positive [14][15] Company Strategy and Development Direction and Industry Competition - The approval of the equity incentive plan amendment allows the company to reserve additional shares for growth through acquisitions, indicating a strategic focus on expansion [11][13] - The company is preparing for potential challenges in the ITC landscape, with management expressing confidence in navigating these issues without significant financial impact [14][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the current ITC market problems but expressed confidence in the company's ability to maintain profitability and stability in revenue [15][16] - A more detailed analysis of the ITC issues is expected in the following week, indicating ongoing monitoring and strategic planning [14] Other Important Information - The company successfully elected all director nominees and ratified the selection of BDO as the independent registered accounting firm for 2025 [11] Q&A Session Summary Question: What is the outlook for revenue given the current ITC issues? - Management indicated that despite potential revenue fluctuations due to ITC market problems, the forecast remains stable at $80 million, with a worst-case scenario of $75 million [15] Question: How will the company handle potential revenue drops in 2026? - Management stated that even if revenue falls to $71 million in 2026, the company would still remain profitable, demonstrating strong financial health [15][16]

May 12, 2025 45700 Northport Loop East Fremont, California 94538 Dear [Investor], I am writing to you as one of our largest SunPower shareholders [Nasdaq: SPWR] to ask for your proxy vote in our 'virtual' annual meeting of stockholders at 11:00 a.m. Pacific Time on Thursday, May 29, 2025. While annual meetings have shrunk in size, this particular virtual meeting is critical to the new SunPower and its shareholders. We need shareholder approval for three proposals. The first two proposals are both non-contro ...

Core Viewpoint - SunPower received a deficiency notification from Nasdaq for not timely filing its Annual Report on Form 10-K for the year ended December 29, 2024, which was filed 16 days late on April 30, 2025 [1][3]. Group 1: Compliance and Reporting - The Company was notified by Nasdaq on April 28, 2025, regarding non-compliance with Listing Rule 5250(c)(1) due to the late filing of its 2024 Form 10-K [1]. - The delay in filing the 2024 Form 10-K was attributed to the need for additional time to complete year-end audit procedures, requiring 14,000 hours of auditing compared to the typical 6,500 hours for more mature companies [2][3]. - The Company filed the 2024 Form 10-K, including audited financial statements, on April 30, 2025, as planned [2]. Group 2: Company Overview - SunPower is recognized as a leading residential solar services provider in North America, offering a digital platform and installation services to support energy-efficient lifestyles [4].

Part I [Business](index=8&type=section&id=Item%201.%20Business) Complete Solaria provides solar system sales and installation, formed by a **2022** merger, and expanded through the **2024 SunPower residential business acquisition** - The company's mission is to provide **energy-efficient solutions** to homeowners and small to medium-sized businesses to lower energy bills and reduce their carbon footprint[20](index=20&type=chunk) - **Complete Solaria** was formed in **November 2022** through the merger of **Complete Solar Holding Corporation** and **The Solaria Corporation**[21](index=21&type=chunk) - In **October 2023**, the company sold its solar panel assets, including intellectual property, to **Maxeon Solar Technologies, Ltd.** for approximately **$11.0 million** in **Maxeon** shares[22](index=22&type=chunk) - On **September 30, 2024**, the company completed the **acquisition** of certain **SunPower assets**, including the **Blue Raven Solar business**, **New Homes Business**, and **Non-Installing Dealer network**[23](index=23&type=chunk) - The company's primary revenue source is **Solar System Sales and Installation** for residential homeowners and new home builders, leveraging a network of third-party sales and builder partners[24](index=24&type=chunk)[25](index=25&type=chunk) - As of **December 29, 2024**, the company had over **600** full-time employees, with approximately **534** joining as part of the **SunPower acquisition**[48](index=48&type=chunk) [Risk Factors](index=14&type=section&id=Item%201A.%20Risk%20Factors) The company faces substantial risks including recurring losses, negative cash flows, internal control weaknesses, and integration challenges, raising **going concern** doubts - The company has a history of **losses**, with **net losses** of **$56.5 million** in **fiscal 2024** and **$269.6 million** in **fiscal 2023**, and an accumulated deficit of **$411.4 million**. These conditions, along with a cash balance of **$13.4 million**, raise **substantial doubt** about its ability to continue as a **going concern**[57](index=57&type=chunk)[62](index=62&type=chunk) - **Material weaknesses** have been identified in the company's **internal controls over financial reporting** across all five components of the **COSO framework**: **control environment**, **risk assessment**, **control activities**, **information and communication**, and **monitoring**[66](index=66&type=chunk)[68](index=68&type=chunk)[69](index=69&type=chunk)[70](index=70&type=chunk)[71](index=71&type=chunk) - The company's business is significantly affected by international trade policies, particularly safeguard tariffs on imported solar cells and modules, which could increase costs and reduce demand[76](index=76&type=chunk)[77](index=77&type=chunk) - The business relies heavily on the availability of government rebates and tax credits, such as the **Investment Tax Credit (ITC)** and **Residential Clean Energy Credit**. The reduction or elimination of these incentives could adversely impact business[81](index=81&type=chunk)[82](index=82&type=chunk)[88](index=88&type=chunk) - The company may not realize the anticipated benefits from the **acquisition** of **SunPower's businesses**, and the integration process poses numerous risks, including assimilation of operations and personnel, and retaining key customers[128](index=128&type=chunk)[129](index=129&type=chunk) - Due to not timely filing its **Annual Report** on **Form 10-K**, the company is not in compliance with **Nasdaq continued listing rules**, which could lead to delisting and adversely affect stock liquidity and price[188](index=188&type=chunk)[189](index=189&type=chunk) [Unresolved Staff Comments](index=51&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that it has no **unresolved staff comments** from the **SEC** - **None**[215](index=215&type=chunk) [Cybersecurity](index=51&type=section&id=Item%201C.%20Cybersecurity) The company is implementing a **cybersecurity risk management program** overseen by key executives and the **Audit Committee**, utilizing third-party providers to manage threats - The company is implementing information security procedures to manage material risks from **cybersecurity threats**, with oversight from the **Chief Information Officer**, **Chief Legal Officer**, **CEO**, **CFO**, and **Chief Administrative Officer**[216](index=216&type=chunk)[217](index=217&type=chunk) - The **Audit Committee** of the board of directors is responsible for overseeing the company's **cybersecurity risk management processes** and regularly reviews these risks with management[221](index=221&type=chunk) [Properties](index=52&type=section&id=Item%202.%20Properties) **Complete Solaria** leases all its facilities, with corporate headquarters in **Fremont, California**, and an additional administrative office in **Orem, Utah** Leased Facilities | Principal Operations | Location | Approx. square footage | Ownership | Lease Term Ends | | :--- | :--- | :--- | :--- | :--- | | Headquarters | Fremont, CA | 22,847 | Leased | 2026 | | General administrative and operations | Orem, UT | 43,470 | Leased | 2027 | [Legal Proceedings](index=52&type=section&id=Item%203.%20Legal%20Proceedings) Information regarding **legal proceedings** is incorporated by reference from **Note 19 – Commitments and Contingencies** in the consolidated financial statements - Details on **legal proceedings** are provided in **Note 19** to the consolidated financial statements[225](index=225&type=chunk) [Mine Safety Disclosures](index=52&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is **not applicable** to the company - **Not applicable**[226](index=226&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities](index=53&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) **Complete Solaria's common stock** trades on **Nasdaq** under "**SPWR**", with approximately **140** holders of record, and the company has never paid nor plans to pay cash dividends - The company's **common stock** is traded on **Nasdaq** under the symbol "**SPWR**"[228](index=228&type=chunk) - The company has never paid cash dividends and has no plans to do so[229](index=229&type=chunk) [Reserved](index=53&type=section&id=Item%206.%20Reserved) This item is reserved and contains no information [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=53&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) **Fiscal 2024** revenue increased **24%** to **$108.7 million** due to the **SunPower acquisition**, improving gross margin to **36%**, but the company reported a **$54.4 million** net loss from continuing operations, raising **substantial doubt** about its **going concern** ability Fiscal Year 2024 vs 2023 Performance | (in thousands) | Fiscal Year Ended Dec 29, 2024 | Fiscal Year Ended Dec 31, 2023 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $108,742 | $87,616 | $21,126 | 24% | | **Gross profit** | $39,502 | $17,788 | $21,714 | 122% | | **Gross margin %** | 36% | 20% | | | | **Loss from continuing operations** | ($68,509) | ($52,358) | ($16,151) | 31% | | **Net loss from continuing operations** | ($54,444) | ($96,197) | $41,753 | (43)% | Revenue by Segment | (in thousands) | FY 2024 | FY 2023 | $ Change | | :--- | :--- | :--- | :--- | | Residential Solar Installation | $67,460 | $87,616 | ($20,156) | | New Homes Business | $41,282 | $0 | $41,282 | | **Total revenue** | **$108,742** | **$87,616** | **$21,126** | - The increase in **General and Administrative costs** in **2024** was primarily due to transformation costs related to the **SunPower acquisition**, including **$14.0 million** in professional services, **$10.4 million** in payroll, **$10.0 million** in bad debt expense, and **$13.3 million** in one-time integration costs[289](index=289&type=chunk) - The company's cash position of **$13.4 million** as of **December 29, 2024**, combined with a history of **net losses**, raises **substantial doubt** about its ability to continue as a **going concern**[294](index=294&type=chunk) Cash Flow Summary | (in thousands) | Fiscal Year Ended Dec 29, 2024 | Fiscal Year Ended Dec 31, 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | ($54,662) | ($58,802) | | Net cash (used in) provided by investing activities | ($54,657) | $6,171 | | Net cash provided by financing activities | $120,100 | $50,425 | [Quantitative and Qualitative Disclosures about Market Risk](index=75&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company has no significant interest rate risk but is exposed to credit risk from customers and a notable revenue concentration, with three customers accounting for **36%** of **fiscal 2024** gross revenues - The company does not have significant exposure to interest rate risk as it holds no variable rate debt[326](index=326&type=chunk) - For the **fiscal year ended December 29, 2024**, three customers represented **36%** of gross revenues. For the **fiscal year ended December 31, 2023**, one customer represented **55%** of gross revenues[328](index=328&type=chunk) [Financial Statements and Supplementary Data](index=76&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's **audited consolidated financial statements**, with the auditor's report expressing **substantial doubt** about **going concern**, reflecting a **$56.5 million** net loss in **2024** and increased assets and liabilities from the **SunPower acquisition** - The **auditor's report** for the **fiscal year ended December 29, 2024**, includes a paragraph stating that the company's recurring losses and **negative cash flows** raise **substantial doubt** about its ability to continue as a **going concern**[333](index=333&type=chunk) Consolidated Balance Sheet Data (in thousands) | | Dec 29, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $95,602 | $37,749 | | **Total Assets** | $144,466 | $47,322 | | **Total Current Liabilities** | $79,442 | $109,183 | | **Total Liabilities** | $242,005 | $124,135 | | **Total Stockholders' (Deficit)** | ($97,539) | ($76,813) | Consolidated Statement of Operations Data (in thousands) | | Fiscal Year Ended Dec 29, 2024 | Fiscal Year Ended Dec 31, 2023 | | :--- | :--- | :--- | | **Revenues** | $108,742 | $87,616 | | **Net loss from continuing operations** | ($54,444) | ($96,197) | | **Net loss from discontinued operations** | ($2,007) | ($173,358) | | **Net loss** | ($56,451) | ($269,555) | | **Net loss per share, basic** | ($0.85) | ($4.94) | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=139&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no disagreements with its accountants on any matter of accounting principles or practices, or financial statement disclosure - **None**[602](index=602&type=chunk) [Controls and Procedures](index=139&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that **disclosure controls and procedures** were ineffective as of **December 29, 2024**, due to **material weaknesses** across all **COSO framework** components, with a **remediation plan** underway - Management concluded that as of **December 29, 2024**, the company's **disclosure controls and procedures** were not effective[604](index=604&type=chunk) - **Material weaknesses** were identified in all five components of the **COSO Framework** for **internal control**: **control environment**, **risk assessment**, **control activities**, **information and communication**, and **monitoring activities**[610](index=610&type=chunk)[612](index=612&type=chunk)[613](index=613&type=chunk)[614](index=614&type=chunk)[615](index=615&type=chunk) - The assessment of **internal control over financial reporting** as of **December 29, 2024**, excluded the **SunPower Acquisition**, which represents **93%** of consolidated **total assets**[609](index=609&type=chunk) - A **remediation plan** is in progress, which includes hiring additional finance and accounting professionals, providing training, and re-evaluating the **Sarbanes-Oxley compliance program**[618](index=618&type=chunk)[622](index=622&type=chunk) [Other Information](index=142&type=section&id=Item%209B.%20Other%20Information) The company has adopted an **Insider Trading Policy**, and no directors or officers adopted or terminated **Rule 10b5-1 trading plans** in **Q4 2024** - The company has adopted an **Insider Trading Policy** applicable to all directors, officers, and employees[625](index=625&type=chunk) - No directors or officers adopted or terminated any **Rule 10b5-1 trading arrangements** in the three months ended **December 29, 2024**[626](index=626&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=142&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is **not applicable** to the company - **Not applicable**[627](index=627&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=143&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) This section provides biographical information for the company's directors and **executive officers**, led by **Executive Chairman** and **CEO Thurman J. Rodgers**. It confirms that a majority of the board is independent as per **Nasdaq listing standards**. The board has established **Audit, Compensation, and Nominating and Corporate Governance committees** with defined memberships and responsibilities. The company has adopted a **code of ethical business conduct**. It also discloses several delinquent **Section 16(a) filings** for various directors and officers during **fiscal 2024** - The company's executive leadership includes **Thurman J. Rodgers** as **Executive Chairman** & **CEO** and **Daniel Foley** as **Chief Financial Officer**[632](index=632&type=chunk)[644](index=644&type=chunk) - The **Board of Directors** has determined that a majority of its members are "**independent**" under **Nasdaq listing standards**[645](index=645&type=chunk) - The Board has three standing committees: **Audit**, **Compensation**, and **Nominating and Corporate Governance**[648](index=648&type=chunk) - Several late **Form 4 filings** were reported for **fiscal 2024**, involving directors and officers including **T.J. Rodgers**, **Tidjane Thiam**, **William Anderson**, **Chris Lundell**, and **Daniel Foley**[661](index=661&type=chunk) [Executive Compensation](index=148&type=section&id=Item%2011.%20Executive%20Compensation) As an emerging growth company, **Complete Solaria** provides summary compensation information for its **named executive officers (NEOs)**. For **2024**, the **NEOs** were **CEO T.J. Rodgers**, **CFO Daniel Foley**, former **CEO Chris Lundell**, and former **CFO/COO Brian Wuebbels**. Compensation primarily consists of **base salary** and **equity awards**. **Mr. Rodgers** received no separate compensation for his **CEO** role in **2024**. The section details **employment agreements**, **outstanding equity awards** at year-end, and the company's **equity incentive plans**, including the **2023 Plan** and several **legacy plans** from predecessor companies 2024 Summary Compensation Table | Name and Principal Position | Year | Salary | Option Awards | Total | | :--- | :--- | :--- | :--- | :--- | | **Thurman J. (T.J.) Rodgers**, **CEO** | 2024 | — | — | — | | **Daniel Foley**, **CFO** | 2024 | **$161,947** | **$474,761** | **$636,708** | | **Chris Lundell**, Former **CEO** | 2024 | **$375,024** | **$152,876** | **$527,900** | | **Brian Wuebbels**, Former **CFO/COO** | 2024 | **$210,708** | **$280,732** | **$491,440** | - **CEO Thurman J. Rodgers** did not receive any separate compensation for his role as **Chief Executive Officer** during **2024**[666](index=666&type=chunk)[674](index=674&type=chunk) - The company adopted the **2023 Incentive Equity Plan** and an **Employee Stock Purchase Plan** in **July 2023**. **Outstanding awards** also exist under several **legacy plans** from **Complete Solar** and **Solaria**[691](index=691&type=chunk)[693](index=693&type=chunk)[716](index=716&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=165&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) This section discloses the **beneficial ownership** of the company's **common stock** as of **April 30, 2025**. Key beneficial owners include entities affiliated with director **Devin Whatley** (**12.3%**), **CEO T.J. Rodgers** (**16.3%**), **Alyeska Investment Group** (**10.9%**), and **Kline Hill** (**10.3%**). Collectively, all directors and **executive officers** as a group beneficially own approximately **32.3%** of the outstanding **common stock** Security Ownership of Certain Beneficial Owners and Management (as of April 30, 2025) | Name of Beneficial Owner | Percentage of Common Stock Outstanding | | :--- | :--- | | **5% or Greater Stockholders:** | | | **Ecosystem Integrity Fund II, L.P.** | 12.3% | | **Thurman J. (T.J.) Rodgers** | 16.3% | | **Entities affiliated with Alyeska Investment Group, L.P.** | 10.9% | | **Entities Affiliated with Kline Hill** | 10.3% | | **All directors and executive officers as a group (11 persons)** | 32.3% | [Certain Relationships and Related Transactions, and Director Independence](index=169&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) The company engaged in several significant **related party transactions** in **2024**. These include multiple **Simple Agreements for Future Equity (SAFEs)** and participation in **convertible note financings** with entities affiliated with **CEO T.J. Rodgers**. A major **debt restructuring** via an **Exchange Agreement** involved **5%** stockholders **Carlyle** and **Kline Hill**. The company also had **commercial dealings** with **Pegasus Solar**, affiliated with director **Devin Whatley**, and **SameDay Solar**, affiliated with director **William Anderson**. The company has a **formal policy** for reviewing and approving such transactions - In **2024**, the company entered into three **SAFE agreements** totaling **$6.0 million** with a trust affiliated with **CEO Thurman J. Rodgers**[781](index=781&type=chunk)[782](index=782&type=chunk)[784](index=784&type=chunk) - In **July 2024**, the company issued **12% convertible notes**, with significant participation from related parties including the **Rodgers Massey Revocable Living Trust** (**$18.0M**), **CRSEF Solis Holdings, L.L.C.** (**$10.0M**), and **Kline Hill entities** (approx. **$7.97M**)[792](index=792&type=chunk) - In **September 2024**, the company issued **7% convertible notes**, with **$8.0 million** purchased by trusts affiliated with **CEO T.J. Rodgers** and **$750,000** by a trust for which director **J. Daniel McCranie** is a trustee[794](index=794&type=chunk) - The company has **commercial agreements** with **Pegasus Solar** (affiliated with director **Devin Whatley**) and **SameDay Solar** (**60%** owned by director **William Anderson**)[797](index=797&type=chunk)[798](index=798&type=chunk) [Principal Accountant Fees and Services](index=175&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) This section details the fees paid to the company's **principal accountants**. On **August 1, 2024**, **BDO USA, P.C.** was engaged as the new **independent registered public accounting firm**, replacing **Deloitte & Touche LLP**. For **fiscal year 2024**, **BDO** was billed a total of **$7.2 million**, primarily for **audit and audit-related services**. For **fiscal year 2023**, **Deloitte** was billed a total of **$2.0 million**. The company confirms that all services were **pre-approved by the Audit Committee** and that there were no disagreements with the former auditors - On **August 1, 2024**, the company dismissed **Deloitte & Touche LLP** and engaged **BDO USA, P.C.** as its new **independent registered public accounting firm**[810](index=810&type=chunk)[815](index=815&type=chunk) Accountant Fees (in thousands) | | BDO (FY 2024) | Deloitte (FY 2023) | | :--- | :--- | :--- | | Audit Fees | $2,601 | $1,440 | | Audit-Related Fees | $4,621 | $400 | | Tax Fees | $0 | $147 | | All Other Fees | $0 | $200 | | **Total Fees** | **$7,222** | **$1,987** | Part IV [Exhibits and Financial Statement Schedules](index=178&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists exhibits filed as part of the **Annual Report** on **Form 10-K**, including key agreements, debt indentures, equity plans, and required certifications [Form 10-K Summary](index=183&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company indicates that no **Form 10-K summary** is provided - **None**[833](index=833&type=chunk)

Financial Data and Key Metrics Changes - SunPower reported $121.27 million in profit for Q1 2025, a significant increase from a loss of $5.9 million in the previous quarter [6][7] - The company achieved profitability and cash flow positivity in the quarter, marking a turnaround from the previous quarter's losses [6][7] - Non-GAAP profit for the quarter was reported at $121.27 million, compared to $81.1 million in the prior quarter, indicating a 49% increase [6][10] Business Line Data and Key Metrics Changes - The company has streamlined its operations post-merger, reducing headcount from 3,500 to 906, which has contributed to cost savings and improved profitability [11][12][17] - The focus on maintaining a lean workforce has resulted in an annualized savings of $1.6 million [16][17] - Revenue per employee is currently at $369,000, which is considered strong for the solar industry [23] Market Data and Key Metrics Changes - SunPower's market performance has been relatively stable compared to competitors, with the company slightly ahead of industry averages despite market challenges [65] - The company is positioned to benefit from a strategic partnership with Sundar, a sales firm that will support growth and increase sales capacity [58] Company Strategy and Development Direction - SunPower aims to enhance its technology edge by partnering with REC for panels and Enphase for inverters, focusing on innovation in solar technology [86][109] - The company is committed to maintaining strong financials through disciplined cost management and strategic acquisitions, while being cautious about integrating new companies [68][70] - The management emphasizes the importance of customer satisfaction and quality service as a core value to differentiate from competitors [101][104] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the current challenges in the solar market but believes that SunPower is better positioned than many competitors [65] - The company is entering a new phase in the renewable energy sector, with a focus on scaling up production and improving supply chain efficiencies [44][45] - The management is optimistic about the future, leveraging decades of industry experience to navigate complex challenges [45][56] Other Important Information - SunPower has strengthened its board by adding three directors with extensive public company experience, enhancing governance and strategic oversight [59][61] - The company has rebranded itself to reflect its new direction and vision, which includes a focus on technology and customer service [66][100] Q&A Session Summary Question: What is the company's strategy for future growth? - The company plans to focus on technology partnerships and maintaining a lean operational structure to drive profitability and growth [86][68] Question: How is SunPower addressing customer satisfaction? - SunPower is committed to improving customer service and quality, with management personally involved in addressing customer issues [101][104] Question: What are the expectations for market performance moving forward? - Management believes that SunPower is positioned to perform better than competitors in the current market environment, despite overall industry challenges [65]

Financial Data and Key Metrics Changes - SunPower reported $121.27 million in profit for Q1 2025, a significant increase from a loss of $5.9 million in the prior quarter [7] - Non-GAAP profit for the quarter was $121.27 million, up from $81.1 million in the previous quarter, indicating a 49% increase [8][9] - The company achieved profitability and was cash flow positive during the quarter, marking a turnaround in financial performance [7][8] Business Line Data and Key Metrics Changes - The company is currently generating over $80 million in revenue per quarter, with plans to increase this figure [11] - The headcount has been reduced from 3,500 employees post-merger to 906, reflecting a significant cost-cutting effort [12][13] - The company is tracking revenue per employee, currently at $369,000, which is considered strong for the solar industry [24] Market Data and Key Metrics Changes - SunPower's performance is slightly ahead of competitors in the market, which are experiencing declines [66] - The company is focusing on maintaining solid financials amidst a challenging market environment, with a strategy to avoid the pitfalls that led to the bankruptcy of other solar companies [67][70] Company Strategy and Development Direction - SunPower is rebranding and restructuring to enhance its market position, with a focus on technology and innovation [67][88] - The company is forming strategic partnerships to support growth, including a partnership with a sales firm named Sundar [59] - SunPower aims to regain its technological edge by collaborating with companies like REC and Enphase for solar panels and inverters [88][111] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the renewable energy sector, noting the transition to a dominant energy source as solar becomes the lowest cost form of electrical energy [46][47] - The company is focused on improving customer service and quality to differentiate itself from competitors [103][106] - Management acknowledged the need for immediate action to retain key employees while reducing headcount, indicating a balanced approach to cost management [38][39] Other Important Information - The company has strengthened its board with experienced directors from public companies to enhance governance [60][62] - SunPower is implementing a disciplined approach to managing headcount and costs, with regular tracking of employee metrics [17][19] - The company is committed to maintaining a strong customer focus, emphasizing the importance of customer satisfaction in its operations [103][106] Q&A Session Summary Question: What is the company's strategy for growth in the current market? - Management highlighted the importance of strategic partnerships and technological innovation as key components of their growth strategy [59][88] Question: How is the company addressing customer service issues? - Management emphasized a commitment to improving customer service and quality, with a focus on treating customers well to avoid negative publicity [103][106] Question: What measures are being taken to ensure financial stability? - The company is actively managing costs through headcount reductions and disciplined financial tracking to maintain profitability [12][17][38]

[Financial Performance](index=1&type=section&id=Financial%20Performance) [Q1 2025 Financial Highlights](index=1&type=section&id=Q1%202025%20Financial%20Highlights) SunPower achieved its first profitable quarter in four years, reporting **$80.2 million** revenue and **$1.3 million** non-GAAP operating income for Q1 2025 - Achieved the **first profitable quarter in four years**, coinciding with the company's rebranding to SunPower[1](index=1&type=chunk)[4](index=4&type=chunk) Q1 2025 Non-GAAP Financial Summary (In Thousands) | ($1000s) | Q1 2025 (Non-GAAP) | Q4 2024 (Non-GAAP) | Change | | :--- | :--- | :--- | :--- | | Revenue | 80,174 | 88,674 | -9.6% QoQ | | Gross Margin | 36% | 47% | -11 p.p. QoQ | | Operating Income/(loss) | 1,274 | (5,940) | Improved by $7.2M | | Cash Balance | 13,995 | 13,308 | +$0.7M | - The company explains that non-GAAP results, which are used to run the company, differ from GAAP by excluding non-cash amortization, stock compensation, and one-time events[6](index=6&type=chunk)[8](index=8&type=chunk) - The reported **47% gross margin** for Q4'24 is noted as being inflated due to jobs acquired from SunPower at no COGS cost and should not be used for forward-looking projections[6](index=6&type=chunk) [Q1 2025 Accomplishments & Operations](index=2&type=section&id=Q1%202025%20Accomplishments%20%26%20Operations) [Operational Efficiency and Profitability](index=2&type=section&id=Operational%20Efficiency%20and%20Profitability) SunPower achieved **$80.2 million** revenue in a challenging quarter, driven by significant headcount reduction to **906 employees** - Q1'25 revenue of **$80.2 million** was achieved during the traditionally difficult winter quarter[12](index=12&type=chunk) - The company has aggressively reduced headcount from a combined **3,499 employees** on October 1, 2024, to **906** in Q1'25, which is ahead of its target of 980[12](index=12&type=chunk) - Continuous cost-cutting measures improved operating income from a **$39.6 million loss** in Q3'24 (pro-forma) and a **$5.9 million loss** in Q4'24 to a **$1.3 million profit** in Q1'25[17](index=17&type=chunk) [Outlook and Strategic Developments](index=3&type=section&id=Outlook%20and%20Strategic%20Developments) [Business Outlook](index=3&type=section&id=Business%20Outlook) The company forecasts steady revenue and positive operating income for Q2 2025, with further details at the May annual meeting - SunPower forecasts steady revenue and positive operating income again for Q2 2025[16](index=16&type=chunk) [Subsequent Events and Strategic Initiatives](index=4&type=section&id=Subsequent%20Events%20and%20Strategic%20Initiatives) Post-quarter, the company rebranded as **SunPower** (SPWR), formed a strategic partnership with **Sunder**, and hired key industry talent - On April 21, 2025, the company rebranded as **SunPower**, and its ticker changed from CSLR to **SPWR** effective April 22, 2025[19](index=19&type=chunk) - A new strategic partnership was formed with **Sunder**, a large solar sales firm, which is expected to contribute to top-line growth starting in Q3'25[19](index=19&type=chunk) - Key new hires include **Dr. Richard Swanson**, founder of SunPower, as a technology advisor, and **Dr. Mehran Sedigh**, former head of Enphase's battery business, as the new CTO[17](index=17&type=chunk) [Corporate Governance](index=4&type=section&id=Corporate%20Governance) SunPower strengthened its board with three new public-company ex-CEO directors and established a fully independent structure with a Lead Director - The board was strengthened with the addition of three public-company ex-CEO directors: **Lothar Maier, Dan McCranie, and Jamie Haenggi**[20](index=20&type=chunk) - A fully independent board structure has been established, with **Ron Pasek** appointed as Lead Director and **Dan McCranie** as Compensation Committee Chairman[21](index=21&type=chunk) [Supplementary Information](index=6&type=section&id=Supplementary%20Information) [Reconciliation of GAAP to Non-GAAP Financial Measures](index=8&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) The company provides a reconciliation of GAAP to non-GAAP financial measures, adjusting a **$8.9 million** GAAP operating loss to a **$1.3 million** non-GAAP operating income Reconciliation (In Thousands) | Reconciliation (In Thousands) | Q1 2025 (ended 30-Mar-24) | | :--- | :--- | | **GAAP operating loss** | **(8,876)** | | Depreciation and amortization | 1,146 | | Stock based compensation | 5,756 | | Restructuring charges | 3,248 | | Total of Non-GAAP adjustments | 10,150 | | **Non-GAAP net income** | **1,274** | - Adjustments primarily consist of depreciation and amortization, non-cash stock-based compensation, and acquisition/restructuring costs such as severance and professional services[32](index=32&type=chunk)[33](index=33&type=chunk) [Disclaimers](index=6&type=section&id=Disclaimers) This report contains forward-looking statements subject to risks and uncertainties, and Q1 2025 financial results are preliminary and unaudited - The report includes forward-looking statements regarding revenue, profit, and cost control efforts, which are not guarantees of future performance[28](index=28&type=chunk) - The financial results for Q1'25 are preliminary, unaudited, and may change upon finalization of the company's closing procedures and external audit[29](index=29&type=chunk)

Core Viewpoint - SunPower has reported its first profitable quarter in four years, coinciding with its rebranding from Complete Solaria, Inc. to SunPower, and has shown significant improvements in revenue and operating income [3][18]. Financial Performance - Q1 2025 revenue was $80.2 million, consistent with expectations, despite being a traditionally challenging winter quarter [9]. - The company achieved a gross margin of 36% in Q1 2025, down from 47% in Q4 2024 [4]. - Operating income for Q1 2025 was $1.3 million on a non-GAAP basis, a significant improvement from a loss of $5.9 million in Q4 2024 [16]. - Cash balance increased to $14.0 million in Q1 2025 from $13.3 million in Q4 2024 [13]. Operational Changes - The company reduced its workforce from 3,499 employees to 906 within a quarter, aligning staffing levels with profitability targets [9]. - SunPower has implemented continuous cost-cutting measures, leading to improved operating income over the last three quarters [16]. Strategic Developments - SunPower has formed a strategic partnership with Sunder, a solar sales firm, expected to contribute to revenue growth starting in Q3 2025 [18]. - The board has been strengthened with the addition of three former public company CEOs, enhancing governance and strategic oversight [19]. Future Outlook - The company forecasts steady revenue and positive operating income for the next quarter, with a detailed growth plan to be presented at the May annual meeting [15].

Upcoming Webcast Information As announced via press release last week, SunPower will present audited financial results for the full year 2024 and unaudited results for Q1'25 on April 30, 2025, at 1:00pm EDT. 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/events. OREM, Utah, April 21, 2025 (GLOBE NEWSWIRE) -- Complete Solaria, Inc. d/b/a SunPower ("SunPower" or the "Company") ...