plete Solaria(CSLR) - 2025 Q1 - Quarterly Results

Financial Performance Q1 2025 Financial Highlights 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][4] 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][8] - 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] Q1 2025 Accomplishments & Operations Operational Efficiency and Profitability 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] - 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] - 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] Outlook and Strategic Developments Business Outlook 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] Subsequent Events and Strategic Initiatives 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] - 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] - 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] Corporate Governance 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] - A fully independent board structure has been established, with Ron Pasek appointed as Lead Director and Dan McCranie as Compensation Committee Chairman[21] Supplementary Information Reconciliation of GAAP to Non-GAAP Financial Measures 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][33] 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] - The financial results for Q1'25 are preliminary, unaudited, and may change upon finalization of the company's closing procedures and external audit[29]