Financial Performance & Growth - SunPower achieved over 30% year-over-year (YoY) growth in blended bookings[5] - The company experienced a 60% YoY increase in dollar gross margin growth in Q1 2021[5] - SunPower anticipates over 40% EBITDA growth in 2022[5, 31] - Q1 2021 adjusted EBITDA was $19 million, a significant increase compared to $(3) million in Q1 2020[25] - Net resource debt decreased by approximately 50% from the prior year, reaching $300 million[25] Residential Business Momentum - SunPower added 12,000 new customers in Q1, bringing the total customer base to 363,000[11] - Residential value creation in Q1 was $0.41 per watt, with 55% of sales being full systems[11] - Residential gross margin reached 22%, an increase of 780 basis points YoY[11] - SunVault™ Storage annualized April bookings run rate exceeded $50 million[11] Commercial & Industrial (C&I) Solutions - SunPower has contracted and awarded over 275 MW of solar and over 250 MWh of storage for recognition in 2021-22[18] - The company has secured a pipeline of over 115 MW for community solar projects[20] - Front-of-the-Meter (FTM) storage projects include over 20 MWh under contract and over 400 MWh awarded or shortlisted[20, 23] Strategic Initiatives & Market Expansion - SunPower is expanding its platform and financing options for dealers[10, 16] - The company is pursuing partnerships to expand its installer network and leverage its customer base[10, 16] - SunPower is extending its servicing platform to loans and exploring commercial project ownership through SunStrong[10] - The company is expanding its New Homes efforts to include Multi-Family projects and is focused on storage solutions[10]

Part I [Business](index=5&type=section&id=Item%201.%20Business) SunPower Corporation is a leading solar energy company focused on the U.S. and Canadian Distributed Generation (DG) market, providing complete solar solutions including hardware, software, and financing [Company Overview and Recent Developments](index=5&type=section&id=Company%20Overview%20and%20Recent%20Developments) SunPower is a leading solar energy solutions provider in the U.S. and Canada, focusing on the Distributed Generation (DG) market for residential and commercial customers - SunPower is a leader in the U.S. downstream Distributed Generation (DG) market, offering complete solar solutions to residential and commercial customers through a network of dealers and direct sales[15](index=15&type=chunk) - On August 26, 2020, the company completed the spin-off of its non-U.S. manufacturing operations, Maxeon Solar Technologies, Ltd. This strategic move reshaped the company's focus towards its downstream business[16](index=16&type=chunk) - On May 14, 2020, SunPower sold the majority of its Operations & Maintenance (O&M) services contracts and related assets to NovaSource Power Services for a total consideration of **$36.3 million**[18](index=18&type=chunk) [Segments Overview](index=6&type=section&id=Segments%20Overview) Concurrent with the Maxeon Solar spin-off in Q3 2020, SunPower reorganized its business into new segments to focus on the U.S. downstream market - The company's new segments are Residential, Light Commercial (RLC), Commercial and Industrial Solutions (C&I Solutions), and Others (for non-core legacy businesses)[21](index=21&type=chunk) - RLC includes sales to third-party dealers, storage solutions, and direct cash, loan, and lease sales to end customers[21](index=21&type=chunk) - C&I Solutions focuses on direct sales of turn-key EPC services and energy sales under Power Purchase Agreements (PPAs)[21](index=21&type=chunk) - Business performance is viewed through two revenue streams: 'Dev Co' (origination/installation) and 'Power Co' (recurring services), reflecting different risk profiles[22](index=22&type=chunk) [Impact of COVID-19](index=6&type=section&id=Impact%20of%20COVID-19) The COVID-19 pandemic prompted SunPower to shift to virtual operations, expanding its internal virtual salesforce and enabling dealers to conduct virtual consultations, which has helped reduce customer acquisition costs - The company expanded its virtual salesforce and enabled dealers to conduct virtual sales consultations, leading to attractive customer acquisition costs[23](index=23&type=chunk) - Strict safety measures were implemented for on-site installation employees, as this work is considered an essential business in many areas[25](index=25&type=chunk) - Temporary salary reductions for executives, directors, and certain employees were implemented to sustain the business, with full salaries restored by September 2020[25](index=25&type=chunk) [Solutions and Technology](index=7&type=section&id=Solutions%20and%20Technology) SunPower offers comprehensive solar solutions, including the SunPower Equinox® for residential and Helix® for commercial customers, which are pre-engineered modular systems - The company offers complete solutions like the SunPower Equinox® for residential and Helix® for commercial applications, combining high-efficiency modules with integrated hardware[28](index=28&type=chunk)[34](index=34&type=chunk) - Introduced OneRoof™, a Class A fire-rated, integrated roof-plus-solar solution designed for new home construction that installs **2-3 times faster** than conventional mounting[30](index=30&type=chunk) - Launched SunVault™ storage, a home solar and storage solution designed, installed, and warranted by one company, providing backup power and intelligent energy management[31](index=31&type=chunk) - Offers flexible financing, including loans via third-party partners and a residential lease program, to make solar solutions accessible to a wide range of customers[32](index=32&type=chunk)[33](index=33&type=chunk) - The "Smart Energy" initiative focuses on adding intelligent control to homes and buildings, integrating energy storage and management to reduce customers' overall cost of energy[40](index=40&type=chunk)[41](index=41&type=chunk) [Supply, Customers, and Competition](index=9&type=section&id=Supply%2C%20Customers%2C%20and%20Competition) SunPower sources all its solar panels from Maxeon Solar under an exclusive supply agreement established during the spin-off - Solar panels are entirely sourced from Maxeon Solar under an exclusive supply agreement established post-spin-off[39](index=39&type=chunk) - The customer base is diverse, ranging from individual homeowners to large commercial and governmental entities, served through direct sales and a broad partner network[45](index=45&type=chunk) - Key competitors include SunRun, Inc., Sunnova Energy International Inc., Tesla, Inc., and GAF Energy, among others in the residential and commercial solar markets[47](index=47&type=chunk) - Competitive factors in the market include total system price, LCOE/CCOE, panel efficiency, ease of installation, financing availability, and warranty protection[51](index=51&type=chunk) [Intellectual Property and Regulations](index=12&type=section&id=Intellectual%20Property%20and%20Regulations) SunPower protects its proprietary rights through a combination of patents, trademarks, trade secrets, and contractual agreements - As of January 3, 2021, the company held **565 U.S. patents** (353 licensed to Maxeon Solar) and **26 U.S. trademarks**[53](index=53&type=chunk)[54](index=54&type=chunk) - The business is significantly influenced by government policies like tax credits, feed-in tariffs, and net energy metering, which accelerate solar adoption[56](index=56&type=chunk) - The company is subject to environmental regulations regarding the use and disposal of hazardous chemicals in its research, development, and construction activities[59](index=59&type=chunk) - Disclosed activities of its affiliate TOTAL SE related to Iran, noting that operational activities stopped in 2018, but a representative office for non-operational functions remains[61](index=61&type=chunk)[62](index=62&type=chunk) [Human Capital](index=15&type=section&id=Human%20Capital) As of January 3, 2021, SunPower employed approximately 2,200 full-time employees globally, with about 1,300 in the United States and 900 in the Philippines - As of January 3, 2021, SunPower had approximately **2,200 full-time employees** worldwide, with **1,300 in the U.S.** and **900 in the Philippines**[75](index=75&type=chunk) - The company is committed to diversity, equity, and inclusion, believing that a diverse workforce leads to more innovation and better decision-making[78](index=78&type=chunk)[79](index=79&type=chunk) - A comprehensive total rewards system, including a pay-for-performance philosophy and stock-based awards, is used to attract and retain key employees[78](index=78&type=chunk) [Risk Factors](index=16&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks that could adversely affect its business [Risks Related to COVID-19 Pandemic](index=18&type=section&id=Risks%20Related%20to%20COVID-19%20Pandemic) The COVID-19 pandemic has adversely affected SunPower's business, operations, and financial condition - The pandemic has negatively impacted business operations, manufacturing, sales, and supply chains, and may affect the ability to invest in planned R&D initiatives[100](index=100&type=chunk)[103](index=103&type=chunk) - A decline in demand for solar panels is expected to continue due to the global economic slowdown and decreased consumer spending, potentially impacting revenue and cash flows[104](index=104&type=chunk) - Reduced cash flow generation due to the pandemic could impact the company's ability to meet its debt obligations[105](index=105&type=chunk) [Risks Related to the Spin-Off](index=20&type=section&id=Risks%20Related%20to%20the%20Spin-Off) The spin-off of Maxeon Solar presents several risks, including potential tax implications and unrealized benefits - If the spin-off distribution does not qualify as tax-free, it could be treated as a dividend to stockholders, and SunPower may have to indemnify Maxeon Solar for related taxes[109](index=109&type=chunk)[111](index=111&type=chunk) - The anticipated strategic, financial, and operational benefits of the spin-off may not be fully achieved, and as a smaller, less-diversified company, SunPower may be more vulnerable to market changes[112](index=112&type=chunk) - Divergent interests between SunPower and Maxeon Solar could negatively impact the scope and effectiveness of the transition services and other ancillary agreements[113](index=113&type=chunk)[114](index=114&type=chunk) [Risks Related to Our Sales Channels](index=21&type=section&id=Risks%20Related%20to%20Our%20Sales%20Channels) SunPower's sales channels are subject to significant risks, including unpredictable fluctuations in revenue, particularly from large commercial projects - Results of operations are subject to significant fluctuations, as a substantial portion of revenue can come from a few large commercial projects, making revenue timing unpredictable[119](index=119&type=chunk) - Changes in international trade policies, such as the safeguard tariffs on imported solar cells and modules, could adversely affect business, margins, and cash flows[125](index=125&type=chunk)[126](index=126&type=chunk) - The company's growth strategy depends on the continued availability of third-party financing for its projects and customers, which is affected by general economic and credit market conditions[129](index=129&type=chunk)[130](index=130&type=chunk)[131](index=131&type=chunk) - The reduction, modification, or elimination of government incentives like feed-in tariffs, tax credits, and net metering could cause revenue to decline[142](index=142&type=chunk) [Risks Related to Our Supply Chain](index=31&type=section&id=Risks%20Related%20to%20Our%20Supply%20Chain) The company's supply chain is exposed to significant concentration risk due to its dependency on Maxeon Solar as the sole source for critical components - SunPower depends on Maxeon Solar as a **sole source supplier** for critical components, including solar cells and modules, under an exclusive supply agreement[171](index=171&type=chunk)[172](index=172&type=chunk) - Any supply interruption or delay from Maxeon Solar could result in sales and installation delays, penalty payments, and loss of market share[171](index=171&type=chunk)[174](index=174&type=chunk) [Risks Related to Our Operations](index=32&type=section&id=Risks%20Related%20to%20Our%20Operations) Operational risks include potential quality issues with solar products that could harm sales and reputation, and adverse changes to the solar investment tax credit (ITC) - Product quality issues or defects could lead to significant warranty costs, damage customer relations, and harm the company's reputation[178](index=178&type=chunk)[179](index=179&type=chunk) - Adverse changes to the solar investment tax credit (ITC) could negatively impact business, as the company's financial planning and customer agreements rely on assumptions about these incentives[180](index=180&type=chunk)[181](index=181&type=chunk) - As a general contractor for many installations, SunPower is exposed to construction risks, including cost overruns, delays, and performance penalties, which could materially affect financial results[198](index=198&type=chunk)[200](index=200&type=chunk)[201](index=201&type=chunk) - Project development involves significant upfront investment and risks, such as permitting delays and unforeseen engineering problems, which could result in the inability to recover investments if a project is not completed[195](index=195&type=chunk)[197](index=197&type=chunk) [Risks Related to Our Liquidity](index=29&type=section&id=Risks%20Related%20to%20Our%20Liquidity) SunPower faces liquidity risks due to its significant debt and the capital-intensive nature of its business - The company may not generate sufficient cash flow or access external financing to fund operations, capital investments, and project development[159](index=159&type=chunk)[160](index=160&type=chunk) - As of January 3, 2021, SunPower had approximately **$638.5 million of outstanding debt**, which could make it difficult to meet payment obligations and fund working capital[163](index=163&type=chunk) - Debt agreements contain restrictive covenants that may limit the ability to incur additional debt, make certain investments, or sell assets, potentially hindering the ability to respond to changing business conditions[168](index=168&type=chunk) [Risks Related to Our Intellectual Property](index=40&type=section&id=Risks%20Related%20to%20Our%20Intellectual%20Property) SunPower's business depends on its intellectual property, exposing it to risks of infringement claims which can be costly and time-consuming to defend - The company may face intellectual property infringement claims that are expensive to defend and could result in the loss of significant rights or require substantial damage payments[224](index=224&type=chunk)[225](index=225&type=chunk) - Protection of proprietary rights relies heavily on trade secret laws and confidentiality agreements, which may not be adequate to prevent misappropriation of technology[227](index=227&type=chunk) - Failure to obtain sufficient patent protection for new technology could harm the company's competitive position and increase expenses[230](index=230&type=chunk)[231](index=231&type=chunk) [Risks Related to Our Debt and Equity Securities](index=42&type=section&id=Risks%20Related%20to%20Our%20Debt%20and%20Equity%20Securities) The company's debt and equity securities carry several risks, including the subordination of convertible debentures and the influence of its majority stockholder - Outstanding convertible debentures are unsecured and effectively subordinated to existing and future secured debt, as well as liabilities of subsidiaries[239](index=239&type=chunk)[240](index=240&type=chunk) - TOTAL SE's majority ownership (approx. **52%**) gives it significant control over the company, which could adversely affect the stock's liquidity and value, and limit other stockholders' influence[241](index=241&type=chunk)[242](index=242&type=chunk) - Future sales of common stock or conversion of outstanding debentures could dilute ownership and cause the market price of the stock to decrease[246](index=246&type=chunk)[247](index=247&type=chunk)[248](index=248&type=chunk) - The company's ability to use its net operating loss carryforwards (**$498.0 million federal**, **$863.1 million California state** as of Jan 3, 2021) may be limited by Section 382 ownership change rules[256](index=256&type=chunk)[257](index=257&type=chunk) [Unresolved Staff Comments](index=49&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that there are no unresolved staff comments - None[286](index=286&type=chunk) [Properties](index=49&type=section&id=Item%202.%20Properties) The company leases all of its principal properties, which include its corporate headquarters in California, a manufacturing facility in Oregon, and global support offices in California, Texas, and the Philippines Principal Leased Properties | Facility | Location | Approx. Square Footage | Ownership | Lease Expiration Year | | :--- | :--- | :--- | :--- | :--- | | Corporate headquarters | California, U.S. | 61,000 | Leased | 2027 | | Solar cell and module manufacturing facility | Oregon, U.S. | 212,000 | Leased | 2022 | | Global support offices | California, U.S. | 163,000 | Leased | 2023 | | Global support offices | Texas, U.S. | 46,000 & 23,000 | Leased | 2024 & 2021 | | Global support offices | Philippines | 65,000 | Leased | 2021 | [Legal Proceedings](index=49&type=section&id=Item%203.%20Legal%20Proceedings) Information regarding legal proceedings is incorporated by reference from Note 10, "Commitments and Contingencies—Legal Matters," in the Notes to the Consolidated Financial Statements - Disclosure for legal proceedings is incorporated by reference from Note 10 of the financial statements[287](index=287&type=chunk) [Mine Safety Disclosures](index=50&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[289](index=289&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=50&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) SunPower's common stock is traded on the Nasdaq Global Select Market under the symbol "SPWR" - The company's common stock is listed on the Nasdaq Global Select Market under the symbol "SPWR"[290](index=290&type=chunk) - SunPower has never declared or paid a cash dividend on its common stock and does not intend to in the foreseeable future[291](index=291&type=chunk) Issuer Purchases of Equity Securities (Q4 2020) | Period | Total Shares Purchased | Average Price Per Share | | :--- | :--- | :--- | | Sep 28, 2020 - Oct 25, 2020 | 8,583 | $15.56 | | Oct 26, 2020 - Nov 22, 2020 | 31,787 | $18.90 | | Nov 23, 2020 - Jan 3, 2021 | 172,785 | $21.13 | | **Total** | **213,155** | **-** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=50&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In fiscal 2020, SunPower's total revenue increased by 3% to $1.12 billion, driven by growth in the Commercial and Industrial Solutions segment [Results of Operations](index=53&type=section&id=Results%20of%20Operations) For fiscal year 2020, total revenue increased 3% to $1.12 billion from $1.09 billion in 2019, primarily due to a 5% increase in the Commercial and Industrial Solutions segment Key Financial Results (Fiscal Year Ended) | Metric (in thousands) | Jan 3, 2021 | Dec 29, 2019 | Dec 30, 2018 | | :--- | :--- | :--- | :--- | | Total Revenue | $1,124,829 | $1,092,226 | $1,202,311 | | Gross Profit | $167,127 | $163,478 | $148,497 | | Operating Income (Loss) | $(6,012) | $60,573 | $(303,180) | | Income (Loss) from Continuing Operations | $597,020 | $172,783 | $(383,468) | | Net Income (Loss) Attributable to Stockholders | $475,048 | $22,159 | $(811,091) | Revenue by Segment (in thousands) | Segment | FY 2020 | FY 2019 | % Change (YoY) | | :--- | :--- | :--- | :--- | | Residential, Light Commercial | $848,073 | $863,853 | (2)% | | Commercial and Industrial Solutions | $254,811 | $243,311 | 5% | | Other | $65,574 | $156,615 | (58)% | - Other income increased by **$515.9 million** in fiscal 2020 compared to 2019, primarily due to a **$692.1 million gain** on an equity investment with a readily determinable fair value[350](index=350&type=chunk) - R&D expense decreased by **$11.8 million** in fiscal 2020, mainly due to a **$12.5 million reimbursement** from Maxeon Solar under a product collaboration agreement[335](index=335&type=chunk) [Critical Accounting Estimates](index=62&type=section&id=Critical%20Accounting%20Estimates) Management's discussion highlights several critical accounting estimates that require significant judgment - **Revenue Recognition:** Significant judgment is required for EPC contracts to estimate total costs to completion, which determines the timing of revenue recognition using a cost-based input method[364](index=364&type=chunk)[365](index=365&type=chunk) - **Impairment of Long-Lived Assets:** The company evaluates assets for impairment by analyzing estimated future undiscounted net cash flows, which involves significant assumptions[380](index=380&type=chunk)[503](index=503&type=chunk) - **Product Warranties:** Warranty reserves are based on management's best estimate of future costs, considering historical claims, lab testing, and field monitoring data[384](index=384&type=chunk)[508](index=508&type=chunk) - **Accounting for Income Taxes:** The company records a valuation allowance against its U.S. and Mexico deferred tax assets, assessing historical income levels and future taxable income estimates[390](index=390&type=chunk) [Liquidity and Capital Resources](index=67&type=section&id=Liquidity%20and%20Capital%20Resources) As of January 3, 2021, SunPower had $232.8 million in unrestricted cash and cash equivalents Cash Flow Summary (in thousands) | Activity | FY 2020 | FY 2019 | FY 2018 | | :--- | :--- | :--- | :--- | | Net cash used in operating activities | $(187,391) | $(270,413) | $(543,389) | | Net cash provided by investing activities | $129,190 | $21,366 | $274,900 | | Net cash (used in) provided by financing activities | $(153,852) | $344,314 | $85,847 | - The company ended fiscal 2020 with **$232.8 million** in unrestricted cash and cash equivalents, down from **$302.0 million** at the end of fiscal 2019[405](index=405&type=chunk) Contractual Obligations as of Jan 3, 2021 (in thousands) | Obligation Type | Total | Due in 2021 | Due in 2022-2023 | | :--- | :--- | :--- | :--- | | Convertible debt, including interest | $522,616 | $79,908 | $442,708 | | CEDA loan, including interest | $56,775 | $2,550 | $5,100 | | Other debt, including interest | $134,555 | $104,664 | $25,219 | | Operating lease commitments | $77,919 | $14,164 | $26,543 | | Supply agreement commitments | $394,411 | $248,965 | $137,654 | - Management believes total cash and cash equivalents are sufficient to meet obligations over the next 12 months, including the repayment of the remaining **$62.6 million** of 0.875% debentures due in 2021[409](index=409&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=71&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) SunPower is exposed to several market risks, including credit risk from its financial instruments and accounts receivable, which it manages through policies requiring high-quality counterparties - **Credit Risk:** Exposure exists with cash, investments, and accounts receivable. This is managed by using high-quality financial institutions and performing ongoing credit evaluations of customers[417](index=417&type=chunk) - **Interest Rate Risk:** An increase in interest rates could negatively impact customer demand by making financing for solar systems more expensive and could increase the company's own interest expense on variable-rate debt[418](index=418&type=chunk) - **Equity Price Risk:** The company holds **3.5 million shares** of Enphase common stock as of January 3, 2021, the value of which is subject to market price fluctuations[422](index=422&type=chunk) - **Debt Market Risk:** The fair market value of the company's **$487.6 million** in convertible debentures is sensitive to changes in interest rates and the market price of SunPower's common stock[423](index=423&type=chunk) [Financial Statements and Supplementary Data](index=72&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section contains the company's audited consolidated financial statements for the fiscal year ended January 3, 2021, including the Consolidated Balance Sheets, Statements of Operations, Statements of Comprehensive Income (Loss), Statements of Equity (Deficit), and Statements of Cash Flows [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 that there were no changes in or disagreements with its accountants on accounting and financial disclosure - None[782](index=782&type=chunk) [Controls and Procedures](index=139&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of January 3, 2021 - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of January 3, 2021[784](index=784&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of January 3, 2021, based on the COSO framework[785](index=785&type=chunk) [Other Information](index=139&type=section&id=Item%209B.%20Other%20Information) The company reports no other information under this item - None[787](index=787&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=140&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information required for this item is incorporated by reference from the company's proxy statement for the 2021 annual meeting of stockholders - Information is incorporated by reference from the 2021 proxy statement[789](index=789&type=chunk) [Executive Compensation](index=140&type=section&id=Item%2011.%20Executive%20Compensation) Information required for this item is incorporated by reference from the company's proxy statement for the 2021 annual meeting of stockholders - Information is incorporated by reference from the 2021 proxy statement[790](index=790&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=140&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information required for this item is incorporated by reference from the company's proxy statement for the 2021 annual meeting of stockholders - Information is incorporated by reference from the 2021 proxy statement[790](index=790&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=140&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information required for this item is incorporated by reference from the company's proxy statement for the 2021 annual meeting of stockholders - Information is incorporated by reference from the 2021 proxy statement[791](index=791&type=chunk) [Principal Accountant Fees and Services](index=140&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information required for this item is incorporated by reference from the company's proxy statement for the 2021 annual meeting of stockholders - Information is incorporated by reference from the 2021 proxy statement[791](index=791&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=140&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists the documents filed as part of the Annual Report on Form 10-K - This section contains the index of financial statements and a list of all exhibits filed with the 10-K report[792](index=792&type=chunk)[796](index=796&type=chunk)

Q4 2020 Performance & Growth - SunPower's MWr increased by 41%[3] - DevCo gross margin per watt increased by approximately 50%[3] - The company added 13,000 new residential customers[3] - Commercial & Industrial Solutions (CIS) experienced a 65% MWr growth[3] - Residential value creation in Q4 2020 was $0.46/W[16] Financial Highlights - Q4 2020 revenue was $342 million[34] - Adjusted EBITDA for Q4 2020 was $39 million[34] - Net recourse debt was reduced to approximately $281 million[3, 34] - Devco gross margin per watt was $0.50[3, 34] Future Outlook & Priorities - The company anticipates approximately 35% revenue growth in 2021[12] - Expects approximately 3X EBITDA growth in 2021 and over 40% in 2022[13] - Residential lease and loan value creation is expected to be greater than 50% in 2021[3]

Financial Data and Key Metrics Changes - In Q4 2020, the company achieved a gross margin per watt of approximately $0.50, up 50% from $0.34 in Q3 2020, with residential gross margin at $0.64 per watt [22] - The net debt to EBITDA ratio was reduced to less than 2.5x, and the company significantly deleveraged its balance sheet [8][24] - Adjusted EBITDA is expected to triple in 2021, with growth of more than 40% anticipated in 2022 [13][26] Business Line Data and Key Metrics Changes - The residential and light commercial segment saw a sequential megawatt growth of 35%, while the C&I solutions segment increased approximately 65% compared to Q3 2020 [21] - Residential value creation rose to $0.46 per watt in Q4 2020, up from $0.30 per watt [15][22] - The company expects residential revenue growth to exceed 40% in 2021, driven by strong momentum and new homes growth [11] Market Data and Key Metrics Changes - The U.S. residential solar market is projected to accelerate over the next five years, driven by the extension of the ITC and increasing affordability of solar [9] - The new homes market is expected to grow at a rate exceeding 40% due to the California mandate, with the company maintaining a market share of about 50% [9][15] - Demand for storage solutions is rising, with expectations for rapid adoption in both commercial and residential markets [10] Company Strategy and Development Direction - The company aims to capitalize on increasing demand for front-of-the-meter storage solutions and develop new digital services for customers [10][11] - Key priorities for 2021 include executing growth plans, improving profitability through margin expansion, and thoughtfully deploying capital for long-term growth [11][13] - The company is focused on expanding its addressable market, particularly in the electrification of buildings and transportation [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning for long-term, profitable growth following the successful Maxeon split [7] - The company anticipates strong industry tailwinds and continued federal policy support, expecting revenue and adjusted EBITDA growth of more than 40% in 2022 [26] - Management highlighted the importance of improving project economics and enhancing business mix to significantly increase residential value creation [22] Other Important Information - The company ended Q4 2020 with a strong balance sheet and reduced net debt, driven by cash generation from business units [24] - The company plans to release its 2020 sustainability report in the spring, reflecting its commitment to integrating ESG efforts into its corporate strategy [14] Q&A Session Summary Question: Guidance clarification regarding EBITDA margin growth - Management indicated that both megawatt growth and revenue growth are better than previously implied, with stronger gross margins expected to translate into improved EBITDA performance [30][31] Question: Visibility on new homes opportunity amid the pandemic - Management confirmed strong visibility in the new homes market, with record backlog and expectations for bookings to set records in Q1 [34] Question: Impact of ITC extension on demand pull-in - Management expressed optimism about potential further extensions of the ITC, which could influence demand positively in 2022 [90] Question: Constraints on module supply - Management stated that most modules are produced outside of China, and they are in good shape regarding supply [42] Question: Digital and product investment sustainability - Management confirmed that digital investments are expected to be recurring but more efficient over time, with a focus on enhancing customer tools and dealer solutions [46][47] Question: Loan product adoption among dealers - More than half of the dealer base is currently using the company's loan product, with expectations for further penetration [72] Question: C&I visibility and backlog - Approximately 75% of the C&I backlog is secured, with the remaining 25% awarded and awaiting construction [69]

SunPower Corporation (NASDAQ:SPWR) Q3 2020 Results Earnings Conference Call October 28, 2020 4:30 PM ET Company Participants Bob Okunski - VP, IR Thomas Werner - Chairman, President & CEO Manavendra Sial - EVP & CFO Norman Taffe - EVP, North America Residential Eric Potts - Senior Vice President, Commercial Americas Conference Call Participants Brian Lee - Goldman Sachs Michael Weinstein - Credit Suisse Ben Kallo - Baird Philip Shen - ROTH Capital Partners Colin Rusch - Oppenheimer Stephen Byrd - Morgan Sta ...

SunPower Corp (NASDAQ:SPWR) Q2 2020 Earnings Conference Call August 5, 2020 4:30 PM ET Company Participants Bob Okunski - VP, IR Thomas Werner - Chairman, President & CEO Jeffrey Waters - CEO, SunPower Technologies Business Unit Manavendra Sial - EVP & CFO Norman Taffe - EVP, North America Residential Conference Call Participants Michael Weinstein - Crédit Suisse Brian Lee - Goldman Sachs Group Philip Shen - ROTH Capital Partners Benjamin Kallo - Robert W. Baird & Co. Colin Rusch - Oppenheimer Julien Dumoul ...