Financial Data and Key Metrics Changes - For Q1 2022, the company reported $11 million of adjusted EBITDA and $336 million of non-GAAP residential revenue, with a 40% year-over-year increase in new customers [15][16] - Residential gross margin remained at 23%, consistent with Q1 results from the previous year, despite higher panel, freight, and labor costs impacting results [16] - The adjusted EBITDA per customer before platform investment decreased to $1,700 for the quarter, influenced by increased spending on sales and marketing [16][20] Business Line Data and Key Metrics Changes - The company added 16,500 new customers in Q1 2022, a 40% increase year-over-year, supported by a 72% increase in gross lead appointments [15][16] - The SunPower direct channel experienced a 118% year-over-year growth, while the company set a new backlog record with 13,800 customers [7][15] - SunPower Financial achieved a 41% bookings attach rate in Q1, progressing towards a goal of 45% by year-end [8][19] Market Data and Key Metrics Changes - The company reported strong demand across all sales channels, with significant growth in Texas, Florida, and the Northeast, indicating a shift from a California-centric business model [32][76] - The company is expanding its dealer network, adding 83 new dealers, and has partnerships with five of the top 20 U.S. homebuilders [8][10] Company Strategy and Development Direction - The company is focused on executing a five-pillar strategy to become a leading renewable energy company, emphasizing customer experience, product innovation, and market expansion [7][11] - A new dealer accelerator program was launched to support dealer growth and territorial expansion, which is seen as a critical component of the company's market share growth strategy [9][36] - The company is in discussions with First Solar to develop high-efficiency tandem thin film and polysilicon modules, aiming to enhance its product offerings [8][9] Management's Comments on Operating Environment and Future Outlook - Management noted that rising supply chain costs have not led to price increases for dealers and customers in 2021, allowing the company to pass along cost increases in 2022 without hurting demand [13][29] - The company expects to achieve its guidance of 73,000 to 80,000 customers by year-end, driven by strong customer demand and backlog [15][17] - Management expressed confidence in meeting guidance despite challenges in panel supply due to the Department of Commerce investigation, stating that the main panel supplier is not involved [14][62] Other Important Information - The company closed a new residential lease and PPA fund, which will support demand and improve customer affordability [21] - The company is actively working to improve customer experience, with a Net Promoter Score increase from 35% to 49% year-over-year [11] Q&A Session Summary Question: Challenges of using thin film technology - Management expressed excitement about the potential partnership with First Solar, highlighting the unique efficiency of tandem products combining silicon and thin film technologies [24][25] Question: Impact of rising interest rates on customer preferences - Management noted no significant changes in customer preferences, with strong growth in all financing options, particularly loans [26][27] Question: Price increase strategy - Management indicated that they can pass along cost increases to customers without negatively impacting demand, which has actually accelerated [29][30] Question: Update on EV charging partnership - Management highlighted the strong overlap between EV owners and solar customers, indicating a positive outlook for the EV charging opportunity [54] Question: Module availability and supply chain issues - Management reassured that they have sufficient panel supply to meet customer demand and guidance, despite some tightness in the market [60][62] Question: Future of the First Solar deal - Management expects discussions with First Solar to conclude in the next couple of quarters, with no significant gating factors anticipated [68][69]

Part I [Business](index=7&type=section&id=Item%201.%20Business) SunPower provides integrated solar, storage, and home energy solutions in the U.S. and Canada, focusing on residential markets after strategic acquisitions and divestitures - SunPower is a leading solar technology and energy services provider in the U.S. and Canada, offering integrated solar, storage, and home energy solutions through a network of dealers and in-house sales teams[33](index=33&type=chunk) - On October 4, 2021, the company acquired Blue Raven Solar to expand its geographic footprint in the U.S. residential market for up to **$165 million**, including a **$20 million** contingent payment[37](index=37&type=chunk)[39](index=39&type=chunk) - In Q4 2021, SunPower launched SunPower Financial™, an in-house finance company, to provide a broader range of financing options and increase access to solar for more homeowners[40](index=40&type=chunk) - On February 6, 2022, SunPower signed an agreement to sell its Commercial and Industrial (C&I) Solutions business to a subsidiary of TotalEnergies SE for approximately **$190 million**, plus up to **$60 million** in contingent consideration, to sharpen its focus on the residential market[41](index=41&type=chunk) - The company operates through two main segments: Residential, Light Commercial (RLC) and Commercial & Industrial (C&I) Solutions, sourcing solar panels from Maxeon Solar under a master supply agreement[42](index=42&type=chunk)[58](index=58&type=chunk) - As of January 2, 2022, SunPower had approximately **3,660** full-time employees worldwide, with about **2,510** located in the United States[96](index=96&type=chunk) [Risk Factors](index=19&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant operational and financial risks, including COVID-19 impacts, supply chain dependencies, product quality issues, reliance on government incentives, substantial debt, and control by its majority shareholder - The COVID-19 pandemic has adversely affected business operations, supply chains, and customer demand, and its future impact remains unpredictable[108](index=108&type=chunk)[109](index=109&type=chunk) - The business is dependent on a limited number of suppliers, including an exclusive supply agreement with the 2020 spin-off Maxeon Solar for certain critical solar cells and panels, exposing the company to supply chain risks[186](index=186&type=chunk)[187](index=187&type=chunk) - Growth is dependent on the availability of third-party financing for customers and projects, with the launch of SunPower Financial introducing new risks related to consumer underwriting and potential default rates[136](index=136&type=chunk)[143](index=143&type=chunk) - The reduction, modification, or elimination of government incentives like the solar investment tax credit (ITC), or changes to regulations like net energy metering, could significantly reduce demand and harm financial results[156](index=156&type=chunk)[158](index=158&type=chunk) - The company has a significant amount of debt outstanding (**$536.7 million** as of Jan 2, 2022), which could make it difficult to meet payment obligations and fund operations[180](index=180&type=chunk) - Product quality issues, such as a recently identified third-party connector defect, can lead to significant warranty costs, reputational harm, and decreased sales, with the company recording a **$26.5 million** charge for this issue[195](index=195&type=chunk)[196](index=196&type=chunk) - TotalEnergies SE's majority ownership (approx. **51%**) gives it significant control over the company's affairs, which may adversely affect the stock's liquidity and limit the influence of other stockholders[266](index=266&type=chunk)[268](index=268&type=chunk) [Unresolved Staff Comments](index=53&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company has no unresolved staff comments - None[313](index=313&type=chunk) [Properties](index=53&type=section&id=Item%202.%20Properties) The company's principal properties are leased facilities, including its California headquarters, global support offices, and a former Oregon manufacturing site Principal Leased Properties | Facility | Location | Approx. Square Footage | | :--- | :--- | :--- | | Corporate headquarters | California, U.S. | 61,000 | | Global support offices | California, U.S. | 163,000 | | Global support offices | Texas, U.S. | 69,000 | | Global support offices | Philippines | 129,000 | | Global support offices | Utah, U.S. | 43,000 | | Former manufacturing facility | Oregon, U.S. | 212,000 | [Legal Proceedings](index=53&type=section&id=Item%203.%20Legal%20Proceedings) Information on legal proceedings is incorporated by reference from Note 9 of the consolidated financial statements - The company is party to various litigation matters, settling an ongoing litigation matter in Q4 2021 and receiving proceeds of **$14.8 million**[619](index=619&type=chunk) - Subsequent to the fiscal year end, on February 16, 2022, a securities class action lawsuit was filed against the company related to the disclosure of a cracking issue in certain factory-installed connectors[736](index=736&type=chunk) [Mine Safety Disclosures](index=53&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[317](index=317&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=54&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) SunPower's common stock trades on Nasdaq under "SPWR"; the company has never paid cash dividends and repurchased shares in Q4 2021 for tax withholding - The company's common stock is listed on the Nasdaq Global Select Market under the trading symbol "SPWR"[318](index=318&type=chunk) - SunPower has never declared or paid a cash dividend on its common stock and does not intend to in the foreseeable future[319](index=319&type=chunk) Issuer Purchases of Equity Securities (Q4 2021) | Period | Total Shares Purchased | Average Price Paid Per Share ($) | | :--- | :--- | :--- | | Oct 4 - Oct 31, 2021 | 59,834 | $26.69 | | Nov 1 - Nov 28, 2021 | 20,957 | $32.59 | | Nov 29 - Jan 2, 2022 | 8,994 | $24.44 | | **Total** | **89,785** | | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=54&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In fiscal 2021, total revenues grew 18% to **$1.32 billion**, driven by RLC segment growth, while the company reported a **net loss of $38.0 million** and faces a **$425.0 million** convertible debenture maturity in January 2023 [Results of Operations](index=56&type=section&id=Results%20of%20Operations) Fiscal 2021 saw **18% revenue growth** to **$1.32 billion**, driven by the RLC segment, but increased SG&A and the absence of a prior-year gain resulted in a **$38.0 million net loss** from continuing operations Fiscal Year 2021 vs. 2020 Financial Performance | Metric | FY 2021 (ended Jan 2, 2022) (Millions) | FY 2020 (ended Jan 3, 2021) (Millions) | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $1,323.5 | $1,124.8 | 18% | | Gross Profit | $221.6 | $167.1 | 33% | | Gross Margin | 17% | 15% | +2 p.p. | | Operating Loss | ($27.5) | ($6.0) | N/A | | Net (Loss) Income from Continuing Operations | ($38.0) | $597.0 | N/A | Revenue by Segment (FY 2021 vs. FY 2020) | Segment | FY 2021 Revenue (Millions) | FY 2020 Revenue (Millions) | % Change | | :--- | :--- | :--- | :--- | | Residential, Light Commercial | $1,121.2 | $848.1 | 32% | | Commercial and Industrial Solutions | $191.5 | $254.8 | (25)% | | Other | $10.2 | $65.6 | (84)% | - The **32%** revenue growth in the RLC segment was driven by higher volumes in residential cash, loan, and new home channels, and the consolidation of the newly acquired Blue Raven business[334](index=334&type=chunk) - SG&A expenses increased by **$67.6 million** (**41%**) in fiscal 2021, primarily due to the consolidation of Blue Raven, transaction costs, increased labor costs, and accelerated vesting of stock units for the former CEO[347](index=347&type=chunk) - Other income decreased by **$669.6 million**, mainly because fiscal 2020 included a **$692.1 million** gain on an equity investment, compared to a much smaller **$21.7 million** gain in fiscal 2021[354](index=354&type=chunk) [Liquidity and Capital Resources](index=64&type=section&id=Liquidity%20and%20Capital%20Resources) As of January 2, 2022, the company held **$127.1 million** in cash, with **$44.5 million** net cash used in operations, and plans to address its **$425.0 million** convertible debenture maturity in January 2023 through asset sales and operations Cash Flow Summary (Fiscal Year Ended) | Cash Flow Activity | Jan 2, 2022 (Millions) | Jan 3, 2021 (Millions) | | :--- | :--- | :--- | | Net cash used in operating activities | ($44.5) | ($187.4) | | Net cash provided by investing activities | $54.3 | $129.2 | | Net cash used in financing activities | ($108.0) | ($153.9) | - The company ended fiscal 2021 with **$127.1 million** in unrestricted cash and cash equivalents, down from **$232.8 million** at the end of fiscal 2020[389](index=389&type=chunk) - SunPower must address the maturity of its **$425.0 million** **4.00%** senior convertible debentures due January 15, 2023, planning to use proceeds from the sale of Enphase stock, cash from operations, and the pending sale of the C&I Solutions business to satisfy this obligation[391](index=391&type=chunk) Material Contractual Obligations as of Jan 2, 2022 | Obligation Type | Total (Millions) | Due in 2022 (Millions) | Due in 2023-2024 (Millions) | | :--- | :--- | :--- | :--- | | Convertible debt, including interest | $442.7 | $17.0 | $425.7 | | Other debt, including interest | $116.3 | $115.8 | $0.2 | | Operating lease commitments | $64.4 | $15.8 | $24.2 | | Supply agreement commitments | $169.0 | $128.1 | $34.9 | | **Total** | **$865.9** | **$350.2** | **$484.9** | [Quantitative and Qualitative Disclosures About Market Risk](index=67&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks including credit, interest rate, and equity price fluctuations, particularly concerning its Enphase investment and convertible debentures - The company is exposed to interest rate risk, as higher rates could make it more difficult for customers to finance solar systems, potentially reducing demand[398](index=398&type=chunk) - SunPower holds an equity investment in Enphase Energy, Inc. (ENPH), recognizing a gain of **$21.0 million** from this investment in fiscal 2021 and selling **one million shares** for **$177.8 million** in proceeds, retaining **2.5 million shares** as of January 2, 2022[399](index=399&type=chunk) - The fair market value of the company's **$425.0 million** in outstanding convertible debentures is subject to interest rate and market price risk, particularly changes in SunPower's common stock price[400](index=400&type=chunk) [Financial Statements and Supplementary Data](index=68&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for fiscal year 2021, including balance sheets, statements of operations, comprehensive income, equity, cash flows, and accompanying notes Consolidated Balance Sheet Highlights | (In thousands) | Jan 2, 2022 | Jan 3, 2021 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $127,130 | $232,765 | | Total current assets | $1,073,466 | $790,315 | | Total assets | $1,554,806 | $1,646,482 | | **Liabilities & Equity** | | | | Total current liabilities | $509,596 | $529,731 | | Total liabilities | $1,164,782 | $1,239,996 | | Total stockholders' equity | $388,389 | $404,167 | | Total liabilities and equity | $1,554,806 | $1,646,482 | Consolidated Statement of Operations Highlights | (In thousands, except per share data) | FY 2021 | FY 2020 | | :--- | :--- | :--- | | Total revenues | $1,323,493 | $1,124,829 | | Gross profit | $221,607 | $167,127 | | Operating (loss) | ($27,462) | ($6,012) | | Net (loss) income from continuing operations | ($38,042) | $597,020 | | Net (loss) income attributable to stockholders | ($37,358) | $475,048 | | Diluted EPS | ($0.22) | $2.48 | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=134&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants regarding accounting and financial disclosure - None[737](index=737&type=chunk) [Controls and Procedures](index=134&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of January 2, 2022, excluding the recently acquired Blue Raven from the latter's evaluation - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of January 2, 2022[739](index=739&type=chunk) - Management concluded that internal control over financial reporting was effective as of January 2, 2022, though the evaluation excluded Blue Raven, which was acquired on October 4, 2021[741](index=741&type=chunk)[742](index=742&type=chunk) [Other Information](index=135&type=section&id=Item%209B.%20Other%20Information) The company reports no other information - None[743](index=743&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=135&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Not applicable[743](index=743&type=chunk) Part III [Directors, Executive Officers, Corporate Governance, Executive Compensation, Security Ownership, and Principal Accountant Fees](index=135&type=section&id=Items%2010%2C%2011%2C%2012%2C%2013%2C%20and%2014) Information for Items 10 through 14, covering governance, compensation, and ownership, is incorporated by reference from the company's 2021 definitive proxy statement - Information for Items 10, 11, 12, 13, and 14 is incorporated by reference from the registrant's definitive proxy statement[744](index=744&type=chunk)[745](index=745&type=chunk)[748](index=748&type=chunk)[749](index=749&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=136&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section provides an index of exhibits and notes the omission of financial statement schedules from the Annual Report on Form 10-K - This section contains the index to the Consolidated Financial Statements and a list of exhibits filed with the report, with all financial statement schedules having been omitted[751](index=751&type=chunk)[752](index=752&type=chunk) [Form 10-K Summary](index=139&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company provides no Form 10-K summary - None[761](index=761&type=chunk)

Financial Data and Key Metrics Changes - The company reported $385 million in revenue for Q4 2021, a 12% increase year-over-year and a 19% increase sequentially from Q3 2021, driven by the strength of the residential business [22][23] - Adjusted EBITDA was negative $8 million, impacted by a $27 million charge for crack connectors in commercial equipment and other costs related to sales and marketing, weather, and COVID-related delays [22][23] - Residential gross margins reached 25.6%, up 100 basis points year-over-year, marking the highest margins in nearly six years [24] Business Line Data and Key Metrics Changes - The residential business saw nearly 22,500 new customer bookings in Q4 2021, a 42% increase over the previous year, leading to a record addition of 17,000 customers, representing 31% year-over-year growth [8][9] - The New Home segment reported a record pipeline of 66,000 customers, more than 40% higher than a year ago [9] - Sunbelt bookings exited 2021 with a run-rate of over $130 million [9] Market Data and Key Metrics Changes - The company is experiencing strong growth in both California and other regions, particularly in the Northeast and Southeast [30] - The attach rate for the SunVault battery product has increased to the mid-30s percentage in the direct channel, indicating strong demand for battery storage [31] Company Strategy and Development Direction - The company is transforming into a residential solar company focused on customer experience, aiming to create a lifetime relationship with customers through an ecosystem of integrated products and services [10] - Five strategic pillars have been established: customer care, growth, best and affordable products, digital innovation, and world-class financial solutions [11][12][13][14][15] - The company plans to invest in upgrading customer services, expanding sales outside California, and introducing new high-value products [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth despite short-term challenges from the pandemic and supply chain issues [9][21] - The company anticipates a strong demand for residential solar and plans to increase the origination of residential financing from 35% in 2021 to 45% in 2022 [20][25] - Guidance for 2022 includes an adjusted EBITDA range of $90 million to $110 million, with expectations of over 35% volume growth and 73,000 to 80,000 new customers [25][26] Other Important Information - The company has successfully transitioned to focus solely on the residential solar business, exiting the light commercial business [66] - A new module supply agreement allows the company to continue offering existing residential products while exploring additional panel providers [21] Q&A Session Summary Question: Steps to boost growth outside California - Management highlighted strong growth in the Northeast and Southeast, with plans to discuss Blue Raven's expansion at the Analyst Day [30] Question: Trends in SunVault attach rates with EVs - Management noted that the combination of solar, battery, and EV products is expected to grow rapidly, particularly in new homes [33] Question: Role of SunPower Financial in revenue mix - Management indicated plans to increase financing from 35% to 45% and build a scalable financial products business [36][37] Question: Impact of connectors charge on guidance - Management confirmed that the connectors charge is included in the guidance for both customer and EBITDA metrics [64] Question: Sensitivities regarding NEM and ITC changes - Management expressed cautious optimism about favorable outcomes for NEM and ITC, with potential benefits for the company [57][58] Question: Changes to cost structure after exiting light commercial business - Management stated that there would be minimal impact on OpEx, as most employees would be reallocated to the residential business [65]

SunPower Corporation (NASDAQ:SPWR) Q3 2021 Earnings Conference Call November 3, 2021 4:30 PM ET Company Participants Michael Weinstein – Head-Investor Relations Peter Faricy – Chief Executive Officer Manu Sial – Chief Financial Officer Conference Call Participants Ben Kallo – Baird Sean Morgan – Evercore Kashy Harrison – Piper Sandler Brian Lee – Goldman Sachs Philip Shen – ROTH Capital Maheep Mandloi – Credit Suisse Joe Beninati – Oppenheimer Operator Good day and thank you for standing by. Welcome to the ...

SunPower Corporation (NASDAQ:SPWR) Q2 2021 Results Earnings Conference Call August 3, 2021 4:30 PM ET Company Participants Robert Okunski - Vice President, Investor Relations Peter Faricy - Chief Executive Officer Manavendra Sial - Executive Vice President and Chief Financial Officer Eric Potts - Executive Vice President, Commercial Americas Conference Call Participants Benjamin Kallo - Robert W. Baird & Co. Brian Lee - Goldman Sachs Maheep Mandloi - Credit Suisse Philip Shen - ROTH Capital Partners Kashy H ...