Core Insights - SunPower will present its Q3'25 results via webcast on October 21, 2025, at 1:00 PM ET [1] - The company has achieved its third consecutive quarter of operating profit since the acquisition of SunPower assets, marking a significant milestone [2] - SunPower recently acquired Sunder Energy, which is expected to drive long-term growth and enhance operational capabilities [2] Company Overview - SunPower is a leading residential solar services provider in North America, focusing on digital platforms and installation services to support energy-efficient lifestyles [3]

Core Points - SunPower announced inducement grants to three key employees of Sunder Energy as part of its acquisition strategy [1][2] - The inducement grants consist of 2.7 million restricted stock units (RSUs) of SunPower common stock, with a vesting schedule over five years [1] - The grants were approved by the board and are outside of the 2023 Equity Incentive Plan, complying with Nasdaq Listing Rule 5635(c)(4) [2] Company Overview - SunPower is a leading residential solar services provider in North America, focusing on energy-efficient solutions [3]

Core Viewpoint - SunPower has successfully completed the acquisition of Sunder Energy, positioning itself as the fifth largest company in the U.S. residential solar industry by installed megawatts [1] Company Overview - SunPower, previously known as Complete Solaria, Inc., is a leading provider of residential solar services in North America, focusing on energy-efficient solutions [4] - Sunder Energy is recognized as the leading independent solar sales company in the U.S., empowering homeowners to manage their energy costs and produce clean energy [5] Acquisition Details - The acquisition is expected to restore SunPower's revenue to pre-ITC levels and set new records, driven by Sunder's sales force of 893 independent dealers and 20 permanent employees [2] - The integration plan includes a 10-person leadership team overseeing 10 integration tracks, with a goal of completing approximately 310 deliverables within a quarter [3] - The acquisition is anticipated to double SunPower's sales force from 841 to 1,734 representatives, leveraging Sunder's sales software and methodologies [2][3] Market Position and Growth Potential - The acquisition positions SunPower to rapidly expand its market share across the U.S., with expectations to grow from 22 to 45 states [7] - The U.S. solar industry is projected to grow by $32.6 billion in 2025, indicating a favorable environment for the combined entity [7] - SunPower expects to generate significant revenue from Sunder's 5,500 new solar contracts annually, enhancing its overall financial performance [7]

Summary of the Conference Call on SunPower's Acquisition of Sunder Energy Company and Industry - **Company**: SunPower Corporation (NasdaqGM:SPWR) and Sunder Energy - **Industry**: Solar Energy Key Points and Arguments 1. **M&A Announcement**: SunPower announced the acquisition of Sunder Energy, a solar company based in South Jordan, Utah, with funding already secured for the transaction [2][11] 2. **Sales Projections**: Combined sales for SunPower and Sunder are projected to be approximately $286 million and $74 million respectively for 2025, indicating significant growth potential [11] 3. **Revenue Model**: Sunder's revenue is primarily from pure orders, which is considered a strong indicator in the solar industry. SunPower's revenue includes engineering, procurement, and construction (EPC) services [12][20] 4. **Market Position**: The merger will position the combined entity as the fifth largest solar company in the U.S. residential market [11] 5. **Sales Efficiency**: Sunder has a high revenue per employee ratio of $4 million, significantly higher than SunPower's current average of $333,000 per employee [24][28] 6. **Battery Attach Rate**: Sunder's higher average selling price (ASP) is attributed to a greater battery attach rate, which SunPower aims to replicate through training and strategy implementation [46] 7. **Sales Strategy**: Sunder employs a mix of traditional door-to-door sales and referral networks, with a focus on leveraging SunPower's digital marketing capabilities for lead generation [48][49] 8. **Operational Efficiency**: The company aims to maintain operational expenses while ramping up installation capacity, with a target of 820 employees to control costs effectively [60][61] 9. **Quality Assurance**: SunPower is focusing on quality improvements to distinguish itself from competitors, addressing past customer dissatisfaction and enhancing service reliability [63] Additional Important Content 1. **Technological Advancements**: SunPower is working on software-defined products and has a joint development agreement with REC for high-wattage solar panels [51][35] 2. **Future Growth Plans**: The company aims to grow from current revenues of $300 million to $1 billion by 2028, with a focus on advanced technology and software-controlled solar systems [30][32] 3. **Market Dynamics**: The solar industry is shifting from loan-based arrangements to third-party ownership (TPO), which is becoming increasingly popular among consumers [26][25] 4. **Brand Value**: SunPower's brand is recognized for its premium pricing, with a 50% premium over competitors, which the company plans to leverage in its marketing strategy [34] 5. **Cultural Integration**: The acquisition process is being managed carefully to avoid cultural clashes that have affected past mergers, with a focus on creating a unified company culture [62] This summary encapsulates the key discussions and strategic insights from the conference call regarding SunPower's acquisition of Sunder Energy and the broader implications for the solar industry.

Acquisition Overview - SunPower is acquiring Sunder Energy to become the No 5 solar company in the US[26] - The consideration for Sunder is $40 million in cash and 10 million shares valued at $555 million (at $155 per share)[27] Financial Projections & Synergies - Sunder is projected to contribute $74 million in sales revenue in 2025[27] - Sunder's EPC customer revenue is $173 million, with 50% ($865 million) expected to be captured by Q4 2026[27] - Sunder's 2026 revenue contribution is modeled to be $128 million, including $74 million from sales and $54 million from EPC[27] - The acquisition is expected to increase SunPower's revenue per employee from $333K to $4201 million per year[46, 48] Sales & Market Expansion - Sunder brings a sales force of 893 salespeople, doubling SunPower's sales force to 1,734[42] - The acquisition expands SunPower's coverage from 22 to 45 states[39, 42] - Sunder's revenue per install is $40,000, higher than the industry average and SunPower's $35,000[42] - Sunder's order/install yield is 55%, better than the industry average and SunPower's 45%[42] Strategic Goals - SunPower aims to grow from $300 million in 2025 to $1 billion in 2028[49] - SunPower projects Q3 2025 revenue of $70 million and aims to grow to $250 million by Q3 2028[49] - SunPower anticipates achieving record revenue in Q4 2025 with the help of Sunder[58]

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.

Core Points - SunPower will attend the Canaccord Genuity 45th Annual Growth Conference on August 12, 2025, in Boston, Massachusetts [1][2] - The company is experiencing its third consecutive quarter of profitability after a four-year period of losses, indicating a positive turnaround [3] - SunPower aims to share its growth story and future plans with investors during the conference [3] Company Overview - SunPower is a leading residential solar services provider in North America, focusing on digital platforms and installation services to support energy-efficient lifestyles [6] - The company is actively participating in various conferences in the second half of 2025, including RE+ in Las Vegas and the Jefferies Renewables & Clean Energy Conference in New York City [4][8]

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)