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Stardust Solar Reports 20% Revenue Growth in Q1 2025 and Strengthens Gross Margin to 48%
Newsfileยท 2025-07-08 12:30
Core Viewpoint - Stardust Solar Energy Inc. reported solid financial performance in Q1 2025, highlighting growth in revenue and gross margin, alongside an expansion of its franchise network [2][5]. Financial Highlights - Revenue for Q1 2025 was CAD 1.00 million, a 20% increase from CAD 0.83 million in Q1 2024 [6]. - Gross margin improved to 48%, up from 27.4% in Q1 2024 [6]. - Franchise fees and royalties reached a record high of CAD 0.33 million, a 2.5-fold increase compared to Q1 2024 [6]. - Product gross profit rose 110% year-over-year to CAD 0.10 million, with product gross margin at 18% [6]. - The net loss for Q1 2025 was CAD 0.65 million, or CAD 0.01 per share, compared to a net loss of CAD 0.39 million or CAD 0.02 per share in Q1 2024 [6]. Operational Review - The company added 4 net new franchise territories, bringing the total to 87 as of March 31, 2025 [2][6]. - The accredited training programs were expanded to include new advanced curriculums [2]. - Product sales were lower year-over-year due to a large commercial order in Q1 2024, but underlying product revenue met management's expectations [2]. Balance Sheet and Liquidity - Current liabilities decreased by CAD 553,993, a 30% reduction, and total liabilities decreased by CAD 987,202, a 36% reduction [4]. - As of March 31, 2025, the company had CAD 0.62 million in cash and cash equivalents, with working capital of CAD 1.77 million [4]. - Loan and lease obligations were reduced to CAD 0.45 million from CAD 0.88 million at March 31, 2024, primarily due to the repayment of a high-interest facility [4]. Outlook - Trailing-twelve-month revenue as of March 31, 2025, was CAD 3.8 million, a 4.7% increase from the twelve months ended December 31, 2024 [5]. - Management anticipates revenue growth to accelerate through the remainder of 2025, driven by franchise additions and an expanding installation backlog [5]. - The company is reallocating resources from investor-relations activities to focus on direct customer acquisition and franchise support [5].