Financial Performance - Net revenues for the three months ended September 30, 2025, were $23,896,448, an increase from $19,657,905 in the same period of 2024, representing a growth of 11.4%[117] - Gross profit for the three months ended September 30, 2025, was $13,707,389, with a gross margin of 57.4%, compared to a gross profit of $9,587,229 and a gross margin of 48.8% in the same period of 2024[117] - The company reported a net loss of $1,869,472 for the three months ended September 30, 2025, compared to a net loss of $2,872,424 in the same period of 2024, indicating a reduction in losses[117] - Adjusted EBITDA for the three months ended September 30, 2025, was $1,956,127, with an adjusted EBITDA margin of 8.2%, compared to an adjusted EBITDA of $(241,712) and an adjusted EBITDA margin of (1.2)% in the same period of 2024[117] - Net revenues for the nine months ended September 30, 2025, decreased by approximately $3.8 million to $50.8 million, a 7.0% decline compared to $54.6 million for the same period in 2024[148] - For the nine months ended September 30, 2025, net revenues were $50.8 million, a decrease from $54.6 million in 2024, while gross profit increased to $28.1 million from $23.2 million[167] - Contribution profit for the nine months ended September 30, 2025, was $7.6 million, with a contribution margin of 15.0%, compared to $9.7 million and 17.8% in 2024[167] - Adjusted EBITDA for the nine months ended September 30, 2025, was $(1.9) million, with an adjusted EBITDA margin of (3.8)%, compared to $89,270 and 0.2% in 2024[168] - The gross margin for the nine months ended September 30, 2025, was 55.3%, up from 42.5% in 2024[167] - The company reported a net loss of $17.9 million for the nine months ended September 30, 2025, compared to a net loss of $8.7 million in 2024[168] - Stock-based compensation for the nine months ended September 30, 2025, amounted to $6.1 million, compared to $7.1 million in 2024[168] Operational Highlights - The company completed the acquisition of Heliogen on August 8, 2025, issuing 6,217,612 shares of class A common stock at an exchange ratio of 0.9591 shares for each share of Heliogen common stock[113][114] - The company plans to expand its roofing business in all markets to facilitate faster solar installations, particularly in areas affected by severe weather[123] - Future revenue growth is expected to be driven by the expansion into new residential markets in states with favorable incentives and net metering policies[122] - The company aims to increase its in-house sales force and external sales dealers to target new customers in the Southern U.S. regional residential markets[125] Cost and Expenses - Cost of revenues for the three months ended September 30, 2025, increased by $0.3 million to $10.1 million, but as a percentage of revenue, it declined from 49.8% to 42.1%[142] - General and administrative expenses decreased by $1.2 million to $6.0 million for the three months ended September 30, 2025, primarily due to decreased stock-based compensation expenses[144] - Sales and marketing expenses increased by $4.4 million to $9.6 million for the three months ended September 30, 2025, driven by increased stock-based compensation and efforts to expand sales[145] - Cost of revenues for the nine months ended September 30, 2025, decreased by $8.7 million to $22.1 million, improving as a percentage of revenue from 56.4% to 43.6%[149] - Total operating expenses for the nine months ended September 30, 2025, increased by $4.8 million to $69.1 million, a 7.5% increase compared to the same period in 2024[147] Cash Flow - Net cash used in operating activities was approximately $11.1 million for the nine months ended September 30, 2025, a decrease of $1.1 million compared to $12.2 million for the same period in 2024[160] - Net cash provided by investing activities was approximately $13.5 million for the nine months ended September 30, 2025, primarily related to cash acquired in the acquisition of Heliogen[161] - Net cash used in financing activities was approximately $4.1 million for the nine months ended September 30, 2025, compared to $8.8 million provided in the same period of 2024[162] Debt and Financing - The company has approximately $2.5 million in convertible notes and only $0.1 million of debt related to service trucks and vehicles[163] Financial Metrics - The company utilized non-GAAP financial measures to monitor and evaluate business performance, which may differ from GAAP results[164] - Management emphasizes the importance of contribution profit and margin for strategic decision-making and resource allocation[166]
ESGEN Acquisition (ESAC) - 2025 Q3 - Quarterly Report