Sunworks reports Q3 EPS (84c) vs. (16c) last year

Reports Q3 revenue $28.7M vs. $40.7M last year. “The long-term economics of residential and commercial solar remain attractive, positively influenced by the provisions in the Inflation Reduction Act and rising utility costs,” stated Mark Trout, CEO. “Our team remains committed to empowering customers by delivering on-demand access to clean, reliable and cost-effective solar and storage solutions that reduce reliance on traditional, third-party energy sources. While longer-term solar demand fundamentals remain intact, our residential solar business continues to face challenges. The combination of higher interest rates across the country and less favorable residential solar economics in California following the NEM 3.0 transition negatively impacted originations during the quarter. As a result, we have right sized our cost structure, including a reduction in force, as well as closing non-strategic and underutilized markets. Additionally, we have refocused our sales team in markets in which we can drive scale, including markets with strong competitive positions and have favorable homeowner economics. We believe these actions, along with other cost reductions will reduce our cash burn and best position the Company for a recovery in 2024. Within our commercial solar business, we’re seeing a strong pipeline of potential new opportunities with larger commercial organizations, including independent power producers. While project timing can vary from quarter-to-quarter, we remain positive about our growing addressable market, including our first order for a commercial grade electric vehicle system. Execution within our commercial business continued to be strong in the third quarter, as revenue more than doubled on a year-over-year basis and operated at a materially higher gross margin. As before, the market opportunity for solar remains significant across our geographic footprint, positioning Sunworks to play a leading role in the transition toward affordable, clean, and independent energy production and storage. We believe the actions taken to prioritize markets and build scale, best positions us to rebuild momentum in our business entering 2024.”