Core Viewpoint - Sunnova Energy's stock has significantly declined due to concerns regarding its ability to continue as a going concern, raising substantial doubts about its financial stability and future operations [1] Financial Performance - The company reported a net loss of $30 million for the latest quarter, which is a substantial increase compared to a loss of $12 million in the same quarter last year, indicating worsening financial health [1] - Revenue for the quarter was $70 million, reflecting a 15% increase year-over-year, but this growth is overshadowed by the rising losses [1] Market Reaction - Following the announcement of its financial results and the going concern warning, Sunnova's stock price dropped by over 20%, signaling investor panic and loss of confidence in the company's future [1] - Analysts have expressed concerns that the company's current cash reserves may not be sufficient to sustain operations in the long term, further contributing to the stock's decline [1] Industry Context - The renewable energy sector is facing increased scrutiny as companies navigate financial challenges amid rising interest rates and supply chain issues, which may impact overall market sentiment [1] - Sunnova's situation reflects broader trends in the industry, where companies are struggling to balance growth with financial sustainability [1]

[Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) Sunnova's 2024 performance saw increased cash and solar capacity, alongside strategic cost-cutting efforts [2024 and Recent Highlights](index=1&type=section&id=2024%20and%20Recent%20Highlights) Sunnova increased total cash and managed capacity in 2024, implementing strategic cost-cutting measures despite missing unrestricted cash targets Highlight Metrics as of Dec 31, 2024 | Highlight | Metric as of Dec 31, 2024 | | :--- | :--- | | Total Cash | $548 million (+11% YoY) | | Solar Power Generation Under Management | 3.0 gigawatts | | Energy Storage Under Management | 1,662 megawatt hours | - The company missed its unrestricted cash target due to timing delays of ITC sales, fewer installed systems, and the classification of some December funds as restricted[2](index=2&type=chunk) - Strategic initiatives undertaken in 2024 and early 2025 to improve financial positioning include mandating domestic content for dealers, raising prices, simplifying the business to cut costs, and aligning dealer payment terms with funding sources[3](index=3&type=chunk) - Announced operational optimizations are estimated to reduce annual cash costs by **$70 million**[6](index=6&type=chunk) [Full Year 2024 Financial Performance Analysis](index=1&type=section&id=Full%20Year%202024%20Financial%20Performance%20Analysis) Detailed analysis of Sunnova's 2024 financial performance, examining revenue growth and expense trends [Revenue Analysis](index=1&type=section&id=Revenue%20Analysis) Total revenue grew 16.5% in 2024, driven by customer agreements and incentives, partially offset by reduced product sales due to strategic shifts Revenue Performance | Revenue Category | 2024 Revenue ($M) | 2023 Revenue ($M) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Customer agreements and incentives | 541.5 | 378.1 | +43% | | Solar energy system and product sales | 298.4 | 342.5 | -13% | | **Total Revenue** | **839.9** | **720.7** | **+16.5%** | - Revenue from customer agreements and incentives increased by **$163.4 million** (**+43%**), driven by more systems in service and an increase in battery attachment rates from **27%** in 2023 to **34%** in 2024[3](index=3&type=chunk) - SREC revenue increased by **16%** (**+$8.2 million**) due to higher volumes in Massachusetts, Pennsylvania, and New Jersey[4](index=4&type=chunk) - Loan revenue grew by **38%** (**+$13.2 million**) as the weighted average number of systems with loan agreements increased by **21%**[5](index=5&type=chunk) - The decrease in solar energy system and product sales was primarily due to a **43%** drop in inventory sales revenue as the company strategically shifted away from reselling inventory to dealers[6](index=6&type=chunk) [Expense Analysis](index=2&type=section&id=Expense%20Analysis) Operating expenses increased in 2024, driven by higher cost of revenue, G&A, and net interest expense, despite some headcount reductions - Cost of revenue for customer agreements increased by **43%** (**+$64.2 million**), primarily due to a **46%** increase in depreciation as more solar and storage systems were placed in service[8](index=8&type=chunk) - Operations and maintenance expense increased by **8%** (**+$8.0 million**), mainly driven by an **$11.5 million** charge for non-recoverable costs from terminated dealers[11](index=11&type=chunk) - General and administrative expense rose by **19%** (**+$74.8 million**) due to increased payroll, depreciation on technology projects, and financing deal costs, despite a **12%** decrease in employees from year-end 2023 to year-end 2024[13](index=13&type=chunk) - Net interest expense increased by **32%** (**+$119.2 million**) due to a **25%** increase in average debt outstanding and a **0.73%** rise in the weighted average interest rate[16](index=16&type=chunk) - The provision for current expected credit losses decreased by **24%** (**-$11.1 million**) primarily due to a lower volume of loan originations in 2024[14](index=14&type=chunk) [Liquidity, Capital Resources, and Going Concern](index=4&type=section&id=Liquidity%2C%20Capital%20Resources%2C%20and%20Going%20Concern) Assessment of Sunnova's liquidity, capital resources, and the company's going concern status [Liquidity Position](index=4&type=section&id=Liquidity%20Position) Sunnova's liquidity as of December 31, 2024, included **$548.1 million** in total cash and significant available borrowing and undrawn tax equity capacity Liquidity Components as of Dec 31, 2024 | Liquidity Component | Amount as of Dec 31, 2024 ($M) | | :--- | :--- | | Total Cash and Restricted Cash | $548.1 | | Unrestricted Cash | $211.2 | | Available Borrowing Capacity | $623.8 | | Undrawn Committed Tax Equity Capital | $537.3 | [New Term Loan Agreement](index=4&type=section&id=New%20Term%20Loan%20Agreement) A new **$185 million** secured term loan facility was entered into on March 2, 2025, with a **15.00%** interest rate and **1.30x** MOIC - On March 2, 2025, the company entered into a **$185 million** secured term loan facility for general working capital purposes[21](index=21&type=chunk) - The facility has a **3-year** maturity, bears interest at **15.00%** per annum, and allows for interest to be paid in kind if cash flows are insufficient[21](index=21&type=chunk)[22](index=22&type=chunk) - The loan is subject to a minimum repayment equal to a Minimum Multiple of Invested Capital (MOIC) of **1.30x**[22](index=22&type=chunk) [Going Concern Assessment](index=4&type=section&id=Going%20Concern%20Assessment) Management concluded substantial doubt exists regarding the company's ability to continue as a going concern without additional, unproven measures - Management has concluded that substantial doubt exists regarding the company's ability to continue as a going concern for at least one year[28](index=28&type=chunk) - Current liquidity sources are not sufficient to meet obligations and fund operations for the next year without implementing additional measures[28](index=28&type=chunk) - Management's plans to address the issue include refinancing debt, securing new financing, reducing expenditures, and obtaining tax equity commitments, but the company cannot conclude that completing these plans is probable[29](index=29&type=chunk) [Financial Statements](index=7&type=section&id=Financial%20Statements) Overview of Sunnova's consolidated financial statements, including balance sheets, income statements, and cash flows [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) As of December 31, 2024, total assets increased to **$13.35 billion**, with liabilities at **$10.67 billion** and equity at **$2.42 billion** Consolidated Balance Sheet Summary | Balance Sheet Item (in thousands) | As of Dec 31, 2024 | As of Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $211,192 | $212,832 | | Total current assets | $1,027,503 | $936,248 | | Property and equipment, net | $7,411,954 | $5,638,794 | | **Total assets** | **$13,353,699** | **$11,340,971** | | Total current liabilities | $1,323,751 | $1,095,292 | | Long-term debt, net | $8,133,179 | $7,030,756 | | **Total liabilities** | **$10,668,606** | **$9,212,059** | | **Total equity** | **$2,424,531** | **$1,963,040** | [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) For 2024, total revenue reached **$839.9 million**, with net loss improving to **$447.8 million** and net loss per share at **$(2.96)** Consolidated Statements of Operations Summary | Income Statement Item (in thousands) | Year Ended Dec 31, 2024 | Year Ended Dec 31, 2023 | | :--- | :--- | :--- | | Total revenue | $839,922 | $720,653 | | Total operating expense, net | $1,079,463 | $964,088 | | Operating loss | $(239,541) | $(243,435) | | **Net loss** | **$(447,773)** | **$(502,426)** | | Net loss attributable to stockholders | $(367,893) | $(417,961) | | **Net loss per share** | **$(2.96)** | **$(3.53)** | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) In 2024, cash used in operations was **$310.8 million** and investing **$1.62 billion**, offset by **$1.98 billion** from financing, resulting in a **$53.7 million** net cash increase Consolidated Statements of Cash Flows Summary | Cash Flow Item (in thousands) | Year Ended Dec 31, 2024 | Year Ended Dec 31, 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(310,848) | $(237,562) | | Net cash used in investing activities | $(1,615,775) | $(2,544,661) | | Net cash provided by financing activities | $1,980,332 | $2,731,051 | | **Net increase (decrease) in cash** | **$53,709** | **$(51,172)** | [Key Metrics and Supplemental Data](index=10&type=section&id=Key%20Metrics%20and%20Supplemental%20Data) Presentation of Sunnova's key operational and financial metrics and their definitions [Operational and Financial Metrics](index=10&type=section&id=Operational%20and%20Financial%20Metrics) Sunnova's customer base expanded to **441,200** by year-end 2024, with growth across all weighted average system categories Number of Customers | Metric | As of Dec 31, 2024 | As of Dec 31, 2023 | | :--- | :--- | :--- | | Number of customers | 441,200 | 419,200 | Weighted Average Number of Systems (Full Year) | Weighted Average Number of Systems (Full Year) | 2024 | 2023 | | :--- | :--- | :--- | | Excluding loan/cash sales | 283,000 | 219,100 | | With loan agreements | 128,800 | 120,400 | | With cash sales | 16,000 | 9,300 | | **Total** | **427,800** | **348,800** | [Definitions of Key Metrics](index=11&type=section&id=Definitions%20of%20Key%20Metrics) This section defines key operational metrics, including 'Number of Customers' and 'Weighted Average Number of Systems' - The 'Number of Customers' metric includes every unique premises where a Sunnova product is installed or where Sunnova has a service obligation[43](index=43&type=chunk) - The 'Weighted Average Number of Systems' is calculated based on the number of months a system is in service during a period, providing a more accurate reflection of its contribution to financial results[44](index=44&type=chunk) [Other Information](index=5&type=section&id=Other%20Information) Additional information including conference call details and forward-looking statements [Conference Call Information](index=5&type=section&id=Conference%20Call%20Information) A conference call for Q4 and full-year 2024 results was scheduled for March 3, 2025, at 8:00 a.m. Eastern Time - A conference call to discuss Q4 and full-year 2024 results was scheduled for **8:00 a.m. Eastern Time** on **March 3, 2025**[30](index=30&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) The press release includes forward-looking statements subject to risks, notably the substantial doubt about the company's going concern ability - The press release contains forward-looking statements concerning expectations, strategy, and financial targets, which are not guarantees of future performance[32](index=32&type=chunk) - Key risks that could cause actual results to differ include the substantial doubt about the ability to continue as a going concern, market fluctuations, capital availability, and supply chain uncertainties[32](index=32&type=chunk)

Core Viewpoint - Sunnova Energy (NOVA) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ended December 2024, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The consensus estimate indicates a quarterly loss of $0.81 per share, reflecting a year-over-year change of -305%, while revenues are projected to be $234.53 million, representing a 20.8% increase from the previous year [3]. - The earnings report is expected to be released on March 3, and the stock may rise if the reported figures exceed expectations, whereas a miss could lead to a decline [2]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised 1.73% higher, indicating a collective reassessment by analysts [4]. - The Most Accurate Estimate for Sunnova Energy is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +3.06%, suggesting a likelihood of beating the consensus EPS estimate [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the deviation of actual earnings from the consensus estimate, with positive readings being more reliable [7][8]. - Historical performance shows that Sunnova Energy has beaten consensus EPS estimates three times in the last four quarters, although it missed expectations in the most recent quarter by a significant margin [12][13]. Industry Comparison - Another player in the solar industry, Sunrun (RUN), is expected to report a loss of $0.27 per share, with revenues projected at $538.42 million, reflecting a year-over-year increase of 4.2% [17]. - Sunrun's consensus EPS estimate has been revised 4.2% lower, resulting in a negative Earnings ESP of -174.62%, making it challenging to predict a beat against the consensus [18].

Group 1 - The annual general meeting of Nova Klúbbsins hf. is scheduled for March 27, 2025, and the nomination committee is seeking candidates for the board of the company [1] - Nominations, along with resumes, should be submitted to the nomination committee via email, and a nomination form can be found on the company's investor page [2] - The deadline for submitting nominations to the nomination committee is February 10, 2025, although the committee reserves the right to consider late submissions [3] Group 2 - Current board members intend to stand for re-election, and the committee's decision on nominations will be announced at least three weeks prior to the annual meeting [3] - The general nomination period ends five days before the annual meeting, specifically at 16:00 on March 22, 2025, and the nomination committee's activities do not restrict candidates from submitting nominations until that deadline [4] - Further information can be obtained from Thelma Kristín Kvaran, the chair of the nomination committee [4]

Group 1 - Nova Klúbburinn hf. purchased 3,660,000 own shares for a total price of 15,901,300 ISK as part of its share buyback program announced on April 24, 2024 [1] - The share buyback program has a maximum limit of 550 million ISK and will remain in effect until this limit is reached or until the company's annual general meeting in 2025 [1] - Following the transactions, Nova Klúbburinn will hold 110,139,000 own shares, representing approximately 2.99% of the total issued shares in the company [2] Group 2 - The execution of the share buyback program will comply with the Icelandic Companies Act and relevant EU regulations regarding market abuse [3] - Further information can be obtained from the CFO of Nova Klúbburinn, Þórhallur Jóhannsson [3]

Stock Performance - Sunnova Energy International stock surged 10 3% in Thursday's trading with an intraday high of 12 7% [1] - The stock has experienced significant volatility over the past year declining approximately 69% despite the recent gain [3] Analyst Coverage and Price Target - JPMorgan initiated coverage on Sunnova Energy with an overweight rating equivalent to a buy recommendation [2] - JPMorgan lowered its one-year price target from $14 to $11 per share citing uncertainties related to the Inflation Reduction Act [2] - The revised price target of $11 per share still implies a potential upside of approximately 243% from the current closing price [2] Financial Performance and Guidance - Sunnova's Q3 revenue increased 19% year-over-year reaching $235 5 million [4] - The company reiterated its cash generation guidance of $100 million for 2024 $350 million for 2025 and $400 million for 2026 [4] Industry and Market Trends - Concerns about the Trump administration's potential impact on the solar industry may be overblown [3] - Emerging power demands from artificial intelligence (AI) could serve as a catalyst for solar companies [5] - The Trump administration's investments in AI data centers which consume significant power could indirectly benefit solar stocks [5]

Group 1 - Nova Klúbburinn hf. purchased a total of 3,151,000 own shares at a total price of 13,113,020 kr [1] - The share buyback plan was announced on April 24, 2024, and allows for a maximum buyback of 550 million kr [1] - Following the transactions, Nova Klúbburinn will hold 92,878,000 own shares, representing approximately 2.52% of the company's issued shares [2] Group 2 - The total purchase price of the shares held by Nova Klúbburinn after the buyback will amount to 358,692,720 kr [2] - The execution of the buyback plan will comply with the Icelandic Companies Act and relevant EU regulations regarding market abuse [2]

Core Insights - Broadridge Financial Solutions, Inc. received the 2024 NOVA "Innovation in Operations" award from Nicsa for its Tailored Shareholder Reports solution, which addresses complexities from the SEC's TSR ruling effective July 2024 [1][2] - The Tailored Shareholder Reports solution has empowered 342 fund companies, processed over 14,000 CUSIPs, delivered more than 140 million emails, and executed approximately 57 million mailings since the rule's implementation [2] - Broadridge's solution enhances investor communication by providing personalized reports that combine and deliver TSRs specific to the funds and share classes held by investors [2][3] Company Overview - Broadridge Financial Solutions is a global technology leader that supports clients in the financial services industry with operational resiliency and transformative technology [3][4] - The company processes over 7 billion communications annually and facilitates daily trading of more than $10 trillion in securities globally [4] - Broadridge is part of the S&P 500 Index and employs over 14,000 associates across 21 countries [4] Industry Context - The SEC's Tailored Shareholder Reports rule requires intricate summarized disclosures to improve clarity and transparency for individual investors managing mutual fund and ETF investments [3] - Nicsa, the awarding body, is a not-for-profit trade association that promotes collaboration within the global asset and wealth management industry [5]

Core Insights - Sunnova Energy's shares experienced a significant increase of 23% in price, outperforming the S&P 500 index, which remained flat [1] - The company's CFO, Eric Williams, purchased 13,800 shares at a weighted average price of $3.60, indicating confidence in the business despite the relatively small size of the transaction compared to the company's market cap of nearly $530 million [2] - There is a cautious optimism regarding the clean energy sector, particularly in light of the potential challenges posed by the incoming presidential administration, but recent developments suggest a positive outlook [3] - Sunnova has been selected by the Penobscot Nation to deploy a half-megawatt battery energy storage system, which will support several facilities in Maine, showcasing the company's growth initiatives [4] - The recent investor reaction can be seen as a relief rally following the pessimism after the presidential election, although the solar industry remains challenging, as evidenced by Sunnova's history of bottom-line losses [5]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________________________________________________________________ FORM 10-Q _________________________________________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For t ...