Shoals Technologies (SHLS) - 2025 Q1 - Quarterly Results

Financial Performance - Quarterly revenue decreased by 11.5% to $80.4 million compared to $90.8 million in the prior-year period[7] - Adjusted EBITDA decreased by $7.7 million to $12.8 million compared to $20.5 million in the prior-year period[10] - Net loss for the quarter was $(0.3) million compared to a net income of $4.8 million in the prior-year period[10] - Revenue for the three months ended March 31, 2025, was $80,631, a decrease of 11.5% compared to $90,807 in the same period of 2024[34] - Adjusted EBITDA for the three months ended March 31, 2025, was $12,789, a decrease of 37.5% from $20,458 in 2024[37] - Net loss for the three months ended March 31, 2025, was $(282), compared to a net income of $4,774 in 2024[34] - Adjusted Net Income for the same period was $5,193, down from $12,621 in 2024[37] - Adjusted Diluted EPS for the three months ended March 31, 2025, was $0.03, down from $0.07 in 2024[39] Margins and Expenses - Gross margin was 35.0%, down from 40.2% in the prior-year period, reflecting strategic pricing actions and customer mix[8] - General and administrative expenses decreased to $21.7 million from $22.8 million in the prior-year period[9] - Gross profit for the same period was $28,140, representing a gross profit margin of 35.0%, down from 40.2% in 2024[37] Future Guidance - The company expects second quarter 2025 revenue in the range of $100 million to $110 million and adjusted EBITDA between $20 million and $25 million[17] - Full year 2025 revenue guidance is projected between $410 million and $450 million, with adjusted EBITDA expected to be between $100 million and $115 million[17] Backlog and Orders - Backlog and awarded orders increased by 5% year-over-year to $645.1 million, with approximately $500 million scheduled for the next four quarters[3][11] - The company reported a robust international market presence, comprising over 13.4% of backlog and awarded orders[11] Strategic Initiatives - Strategic initiatives for market penetration and diversification are progressing well, indicating positive business fundamentals[4] Cash and Assets - Cash and cash equivalents increased to $35,609 as of March 31, 2025, from $15,236 at the end of the same period in 2024[36] - Total current assets decreased slightly to $187,746 as of March 31, 2025, compared to $188,352 at the end of 2024[32] - Total liabilities decreased to $229,493 as of March 31, 2025, from $236,280 at the end of 2024[32] Taxation - The effective income tax rate for Adjusted Net Income was 24.4% for the three months ended March 31, 2025[39]