Zeo Energy Corp. Reports Second Quarter 2025 Financial Results
NEW PORT RICHEY, Fla., Aug. 13, 2025 (GLOBE NEWSWIRE) -- Zeo Energy Corp. (NASDAQ:ZEO) ("Zeo," "Zeo Energy," or the "Company"), a Florida-based provider of residential solar and energy efficiency solutions, today reported financial results for the second quarter and six months ended June 30, 2025.
Recent Operational Highlights
- Completed acquisition of Heliogen, a provider of on-demand clean energy technology solutions, allowing the company to establish a division focused on long-duration energy generation and storage for commercial and industrial-scale facilities, including artificial intelligence (AI) and cloud computing data centers.
- Successfully staffed and sold into existing and new markets, including Virginia, during the peak summer sales season.
- Joined the Russell Microcap® Index following the conclusion of the 2025 Russell US Indexes annual reconstitution.
Management Commentary
"In the second quarter we returned to growth and executed well through most of our peak selling season," said Zeo Energy Corp. CEO Tim Bridgewater. "During the period we generated $18.1 million in revenue, a 22% increase from the prior year driven by our expansion into new markets and the early results of our investments in a year-round sales force. At the same time, we remain committed to profitable growth, which has enabled us to operate with a long-term outlook, even during subdued residential solar market conditions. Our recently completed acquisition of Heliogen is a clear example of this approach in action. Heliogen's strong balance sheet bolsters our current competitive positioning while its long-duration energy storage technology also diversifies our revenue streams into attractive and growing markets including behind-the-meter energy solutions for data center customers. As we head into the second half of the year, we are well positioned to build on our current momentum and are actively pursuing additional growth opportunities in a favorable buyer's market."
First Six Months 2025 Financial Results
Results compare the six months ended June 30, 2025 to the six months ended June 30, 2024.
- Total revenue was $26.9 million, a 23.0% decrease from $34.9 million in the comparable 2024 period. The primary reason for the decrease in revenue was a decrease in deferred revenue recognized in first quarter of 2025 compared to the first quarter of 2024. The first quarter of 2024 benefited from systems which were installed at the end of 2023 that were recognized in 2024.
- Gross profit increased to $14.4 million (53.5% of total revenue) from $13.6 million (38.9% of total revenue) in the comparable 2024 period. The increase was driven primarily by an improvement in cost of goods sold, mainly driven by the impact of the costs associated with the deferred revenue in 2023 being deferred to 2024. There were no such costs in 2025.
- Net loss was $16.0 million compared to $5.9 million in the comparable 2024 period. The decrease is primarily due to a decrease in revenue related to softer residential solar market conditions in the first quarter of the year.
- Adjusted EBITDA, a non-GAAP measurement of operating performance reconciled below, decreased to $(5.0) million (18.4% of total revenue) from $(0.2) million (0.6% of total revenue) in the comparable 2024 period. The change was primarily related to the change in net loss.
Second Quarter 2025 Financial Results
Results compare the 2025 second quarter ended June 30, 2025 to the 2024 second quarter ended June 30, 2024.
- Total revenue was $18.1 million in Q2 2025, a 22.3% increase from $14.8 million in the comparable 2024 period. The increase was largely due to an increase in installations and revenues compared to the prior year. Gross profit increased to $10.6 million (58.6% of total revenue) in Q2 2025 from $7.6 million (51.2% of total revenue) in the comparable 2024 period. The increase was driven in part by an increase in the average selling price of contracts to customers compared to the prior year.
- Net loss for Q2 2025 was $2.7 million compared to $1.8 million in the comparable 2024 period. The increase was partially due to an increase in operating expenses primarily related to efforts to include year-round sales through digital lead generation.
- Adjusted EBITDA, a non-GAAP measurement of operating performance reconciled below, increased to $1.4 million (7.7% of total revenue) in Q2 2025 from approximately $(0.8) million (5.2% of total revenue) in the comparable 2024 period. The change was primarily related to the change in net loss.
For more information, please visit the Zeo Energy Corp. investor relations website at investors.zeoenergy.com.
About Zeo Energy Corp.
Zeo Energy Corp. is a Florida-based regional provider of residential solar, distributed energy, and energy efficiency solutions. Zeo focuses on high-growth markets with limited competitive saturation. With its differentiated sales approach and vertically integrated offerings, Zeo, through its Sunergy Solar business unit, serves customers who desire to reduce high energy bills and contribute to a more sustainable future. For more information on Zeo Energy Corp., please visit www.zeoenergy.com.
Non-GAAP Financial Measures
Adjusted EBITDA
Zeo Energy defines Adjusted EBITDA, a non-GAAP financial measure, as net income (loss) before interest and other expenses, net, income tax expense, and depreciation and amortization, as adjusted to exclude stock-based compensation. Zeo utilizes Adjusted EBITDA as an internal performance measure in the management of the Company's operations because the Company believes the exclusion of these non-cash and non-recurring charges allows for a more relevant comparison of Zeo's results of operations to other companies in the industry. Adjusted EBITDA should not be viewed as a substitute for net loss calculated in accordance with GAAP, and other companies may define Adjusted EBITDA differently.
The following table provides a reconciliation of net income (loss) to Adjusted EBITDA for the periods presented:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Total net loss | $ | (2,679,464 | ) | $ | (1,757,319 | ) | $ | (15,998,827 | ) | $ | (5,864,421 | ) | ||||
| Adjustments: | ||||||||||||||||
| Other income, net | (53,328 | ) | (50,821 | ) | (135,691 | ) | (50,821 | ) | ||||||||
| Interest expense | (29,989 | ) | 49,808 | 288 | 85,030 | |||||||||||
| Change in fair value of warrant liabilities | 96,269 | (828,000 | ) | (567,180 | ) | (690,000 | ) | |||||||||
| Income tax provision | 73,708 | (76,538 | ) | 597,208 | 191,206 | |||||||||||
| Stock-based compensation | 1,078,202 | 2,984,938 | 3,335,340 | 5,598,689 | ||||||||||||
| Depreciation and amortization | 3,175,452 | 453,669 | 8,076,181 | 913,198 | ||||||||||||
| Adjusted EBITDA | $ | 1,400,153 | $ | 775,737 | $ | (4,953,378 | ) | $ | (199,531 | ) | ||||||
| Net loss margin | (14.8 | )% | (11.9 | )% | (59.5 | )% | (16.8 | )% | ||||||||
| Adjusted EBITDA margin | 7.7 | % | 5.2 | % | (18.4 | )% | (0.6 | )% | ||||||||
Adjusted EBITDA Margin
Zeo Energy defines Adjusted EBITDA margin, a non-GAAP financial measure, expressed as a percentage, as the ratio of Adjusted EBITDA to revenue, net. Adjusted EBITDA margin measures net income (loss) before interest and other expenses, net, income tax expense, depreciation and amortization, as adjusted to exclude stock-based compensation and is expressed as a percentage of revenue. In the table above, Adjusted EBITDA is reconciled to the most comparable GAAP measure, net income (loss). Zeo utilizes Adjusted EBITDA margin as an internal performance measure in the management of the Company's operations because the Company believes the exclusion of these non-cash and non-recurring charges allows for a more relevant comparison of the Company's results of operations to other companies in Zeo's industry.
The following table sets forth Zeo's calculations of Adjusted EBITDA margin for the periods presented:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Total net loss | $ | (2,679,464 | ) | $ | (1,757,319 | ) | $ | (15,998,827 | ) | $ | (5,864,421 | ) | ||||
| Adjusted EBITDA | $ | 1,400,153 | $ | 775,737 | $ | (4,953,378 | ) | $ | (199,531 | ) | ||||||
| Adjusted EBITDA margin | 7.7 | % | 5.2 | % | (18.4 | )% | (0.6 | )% | ||||||||
Forward-Looking Statements
This news release contains certain forward-looking statements within the meaning of section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Exchange Act of 1934, as amended, that are based on beliefs and assumptions and on information currently available to the Company. Such statements may include, but are not limited to, statements that refer to projections, forecasts, or other characterizations of future events or circumstances, including any underlying assumptions. The words "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will," and similar references to future periods may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements may include, for example, statements about the future financial performance of the Company; the ability to effectively consolidate the assets of Lumio and produce the expected results; changes in the Company's strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, the ability to raise additional funds, and plans and objectives of management. These forward-looking statements are based on information available as of the date of this news release, and current expectations, forecasts, and assumptions, and involve a number of judgments, risks, and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing the Company's views as of any subsequent date, and the Company does not undertake any obligation to update such forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities laws. You should not place undue reliance on these forward-looking statements. As a result of a number of known and unknown risks and uncertainties, the Company's actual results or performance may be materially different from those expressed or implied by these forward-looking statements. Some factors that could cause actual results to differ include: (i) the outcome of any legal proceedings that may be instituted against the Company or others; (ii) the Company's success in retaining or recruiting, or changes required in, its officers, key employees, or directors; (iii) the Company's ability to maintain the listing of its common stock and warrants on Nasdaq; (iv) limited liquidity and trading of the Company's securities; (v) geopolitical risk and changes in applicable laws or regulations, including tariffs or trade restrictions; (vi) the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; (vii) operational risk; (viii) litigation and regulatory enforcement risks, including the diversion of management time and attention and the additional costs and demands on the Company's resources; (ix) the Company's ability to effectively consolidate the assets of Lumio and produce the expected results; and (x) other risks and uncertainties, including those included under the heading "Risk Factors" in the Company's Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the "SEC") for the year ended December 31, 2024 and in its subsequent periodic reports and other filings with the SEC.
In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by the Company, its respective directors, officers or employees or any other person that the Company will achieve its objectives and plans in any specified time frame, or at all. The forward-looking statements in this news release represent the views of the Company as of the date of this news release. Subsequent events and developments may cause that view to change. However, while the Company may elect to update these forward-looking statements at some point in the future, there is no current intention to do so, except to the extent required by applicable law. You should, therefore, not rely on these forward-looking statements as representing the views of the Company as of any date subsequent to the date of this news release.
Zeo Energy Corp. Contacts
For Investors:
Tom Colton and Greg Bradbury
Gateway Group
[email protected]
For Media:
Zach Kadletz
Gateway Group
[email protected]
-Financial Tables to Follow-
| ZEO ENERGY CORP. CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) | ||||||||
| June 30, | December 31, | |||||||
| 2025 | 2024 | |||||||
| ASSETS | (Unaudited) | |||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 68,691 | $ | 5,634,115 | ||||
| Accounts receivable, net | 5,413,133 | 9,994,881 | ||||||
| Accounts receivable – related parties | 58,150 | 191,662 | ||||||
| Inventories | 917,735 | 872,470 | ||||||
| Contract assets | 73,379 | 64,202 | ||||||
| Contract assets – related parties | 2,705,295 | - | ||||||
| Prepaid expenses and other current assets | 1,579,713 | 2,131,345 | ||||||
| Total Current Assets | 10,816,096 | 18,888,675 | ||||||
| Other assets | 1,081,132 | 314,426 | ||||||
| Other assets – related parties | 75,786 | - | ||||||
| Property and equipment, net | 2,849,966 | 2,475,963 | ||||||
| Operating lease right-of-use assets | 1,018,136 | 1,268,139 | ||||||
| Finance lease right-of-use assets | 378,775 | 447,012 | ||||||
| Related party note receivable | 3,000,000 | 3,000,000 | ||||||
| Intangibles, net | - | 7,571,156 | ||||||
| Goodwill | 27,010,745 | 27,010,745 | ||||||
| TOTAL ASSETS | $ | 46,230,636 | $ | 60,976,116 | ||||
| LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND STOCKHOLDERS' DEFICIT | ||||||||
| Current Liabilities | ||||||||
| Accounts payable | $ | 5,050,372 | $ | 2,780,885 | ||||
| Accrued expenses and other current liabilities | 4,116,182 | 5,181,087 | ||||||
| Accrued expenses and other current liabilities – related parties | 1,358,427 | 3,359,101 | ||||||
| Contract liabilities | 204,543 | 201,607 | ||||||
| Contract liabilities – related parties | - | 2,000 | ||||||
| Current portion of operating lease obligations | 567,625 | 583,429 | ||||||
| Current portion of finance lease obligations | 136,942 | 130,464 | ||||||
| Current portion of long-term debt | 305,362 | 291,036 | ||||||
| Convertible promissory note, net | 2,470,000 | 2,440,000 | ||||||
| Total Current Liabilities | 14,209,453 | 14,969,609 | ||||||
| Operating lease obligations, net of current portion | 568,870 | 799,385 | ||||||
| Finance lease obligations, net of current portion | 278,678 | 348,807 | ||||||
| Long-term debt, net of current portion | 337,483 | 496,623 | ||||||
| Warrant liabilities | 881,820 | 1,449,000 | ||||||
| TOTAL LIABILITIES | 16,276,304 | 18,063,424 | ||||||
| Redeemable Non-Controlling Interests | ||||||||
| Convertible preferred units, 1,500,000 units issued and outstanding as of June 30, 2025 and December 31, 2024 | 16,959,074 | 16,130,871 | ||||||
| Class B Units | 72,442,000 | 115,693,900 | ||||||
| Stockholders' Deficit | ||||||||
| Class V common stock, $0.0001 par value, 100,000,000 authorized shares; 26,480,000 and 35,230,000 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively | 2,648 | 3,523 | ||||||
| Class A common stock, $0.0001 par value, 300,000,000 authorized shares; 22,096,464 and 13,252,964 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively | 2,210 | 1,326 | ||||||
| Additional paid-in capital | 36,766,921 | 14,523,963 | ||||||
| Accumulated deficit | (96,218,521 | ) | (103,440,891 | ) | ||||
| TOTAL STOCKHOLDERS' DEFICIT | (59,446,742 | ) | (88,912,079 | ) | ||||
| TOTAL LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND STOCKHOLDERS' DEFICIT | $ | 46,230,636 | $ | 60,976,116 | ||||
| ZEO ENERGY CORP. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenues | ||||||||||||||||
| Revenue, net | $ | 9,976,447 | $ | 7,798,646 | $ | 16,192,838 | $ | 19,128,033 | ||||||||
| Related party revenue, net | 8,125,483 | 6,997,626 | 10,692,787 | 15,810,395 | ||||||||||||
| Total Revenues | 18,101,930 | 14,796,272 | 26,885,625 | 34,938,428 | ||||||||||||
| Operating Expenses | ||||||||||||||||
| Cost of revenues | 7,284,487 | 7,059,839 | 12,074,166 | 21,017,805 | ||||||||||||
| Depreciation and amortization | 3,175,452 | 453,669 | 8,076,181 | 913,198 | ||||||||||||
| Sales and marketing | 5,629,040 | 4,422,063 | 7,766,132 | 10,975,850 | ||||||||||||
| General and administrative | 4,866,457 | 5,523,571 | 15,334,050 | 8,742,993 | ||||||||||||
| Total Operating Expenses | 20,955,436 | 17,459,142 | 43,250,529 | 41,649,846 | ||||||||||||
| LOSS FROM OPERATIONS | (2,853,506 | ) | (2,662,870 | ) | (16,364,904 | ) | (6,711,418 | ) | ||||||||
| Other Income (Expense) | ||||||||||||||||
| Other income | 53,328 | 50,821 | 135,691 | 50,821 | ||||||||||||
| Interest expense | 29,989 | (49,808 | ) | (288 | ) | (85,030 | ) | |||||||||
| Gain (loss) on change in fair value of warrant liabilities | (96,269 | ) | 828,000 | 567,180 | 690,000 | |||||||||||
| Total Other Income (Expense) | (12,952 | ) | 829,013 | 702,583 | 655,791 | |||||||||||
| NET LOSS FROM OPERATIONS BEFORE INCOME TAXES | (2,866,458 | ) | (1,833,857 | ) | (15,662,321 | ) | (6,055,627 | ) | ||||||||
| Income tax provision | 186,994 | 76,538 | (336,506 | ) | 191,206 | |||||||||||
| NET LOSS | $ | (2,679,464 | ) | $ | (1,757,319 | ) | $ | (15,998,827 | ) | $ | (5,864,421 | ) | ||||
| Less: net loss attributable to Sunergy Renewables LLC prior to the business combination | - | - | - | (523,681 | ) | |||||||||||
| NET LOSS SUBSEQUENT TO THE BUSINESS COMBINATION | (2,679,464 | ) | (1,757,319 | ) | (15,998,827 | ) | (5,340,740 | ) | ||||||||
| Less: Net loss attributable to redeemable non-controlling interests | (263,638 | ) | (1,479,529 | ) | (7,221,726 | ) | (3,531,459 | ) | ||||||||
| NET LOSS ATTRIBUTABLE TO CLASS A COMMON STOCKHOLDERS | $ | (2,415,836 | ) | $ | (277,790 | ) | $ | (8,777,101 | ) | $ | (1,809,281 | ) | ||||
| LOSS PER CLASS A COMMON SHARE – BASIC AND DILUTED | $ | (0.11 | ) | $ | (0.06 | ) | $ | (0.44 | ) | $ | (0.60 | ) | ||||
| WEIGHTED-AVERAGE CLASS A COMMON SHARES OUTSTANDING – BASIC AND DILUTED | 22,096,464 | 5,026,964 | 19,983,013 | 3,010,654 | ||||||||||||
| ZEO ENERGY CORP. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | ||||||||
| Six Months Ended June 30, | ||||||||
| 2025 | 2024 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net loss | $ | (15,998,827 | ) | $ | (5,864,421 | ) | ||
| Adjustment to reconcile net loss to cash used in operating activities | ||||||||
| Depreciation and amortization | 8,076,181 | 913,198 | ||||||
| Gain on change in fair value of warrant liabilities | (567,180 | ) | (690,000 | ) | ||||
| Stock-based compensation | 3,271,831 | 5,598,689 | ||||||
| Class A common stock issued to employees for services | 63,509 | - | ||||||
| Provision for credit losses | 3,270,881 | 250,000 | ||||||
| Non-cash operating lease expense | 318,763 | 307,221 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 1,310,867 | (4,452,021 | ) | |||||
| Accounts receivable – related parties | 133,512 | (422,724 | ) | |||||
| Inventories | (45,265 | ) | (86,506 | ) | ||||
| Contract assets | (9,177 | ) | 3,767,859 | |||||
| Contract assets – related parties | (2,705,295 | ) | - | |||||
| Prepaids and other current assets | 495,250 | (922,679 | ) | |||||
| Other assets | (1,005,197 | ) | (201,381 | ) | ||||
| Other assets – related parties | (75,786 | ) | - | |||||
| Accounts payable | 2,269,487 | (2,459,688 | ) | |||||
| Accrued expenses and other current liabilities | (1,038,671 | ) | (1,347,027 | ) | ||||
| Accrued expenses and other current liabilities – related parties | (2,000,674 | ) | (1,631,439 | ) | ||||
| Contract liabilities | 2,936 | (3,637,081 | ) | |||||
| Contract liabilities – related parties | (2,000 | ) | (1,150,948 | ) | ||||
| Operating lease payments | (315,079 | ) | (322,802 | ) | ||||
| Net cash used in operating activities | (4,549,934 | ) | (12,351,750 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Purchases of property and equipment | (807,025 | ) | (330,829 | ) | ||||
| Net cash used in investing activities | (807,025 | ) | (330,829 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Proceeds from the issuance of convertible preferred stock, net of transaction costs | - | 10,277,275 | ||||||
| Repayments of debt | (144,814 | ) | (127,107 | ) | ||||
| Repayments of finance lease liabilities | (63,651 | ) | (57,775 | ) | ||||
| Distributions to members | - | (90,000 | ) | |||||
| Net cash (used in) provided by financing activities | (208,465 | ) | 10,002,393 | |||||
| NET CHANGE IN CASH AND CASH EQUIVALENTS | (5,565,424 | ) | (2,680,186 | ) | ||||
| Cash and cash equivalents, beginning of period | 5,364,115 | 8,022,306 | ||||||
| Cash and cash equivalents, end of the period | $ | 68,691 | $ | 5,342,120 | ||||
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||||||||
| Cash paid for interest | $ | 49,672 | $ | 60,238 | ||||
| Cash paid for income taxes | $ | - | $ | - | ||||
| NON-CASH INVESTING AND FINANCING ACTIVITIES | ||||||||
| Net loss attributable to redeemable non-controlling interest | $ | 8,049,929 | $ | 12,139,938 | ||||
| OpCo class A preferred dividends | $ | 828,203 | $ | 8,608,479 | ||||
| Subsequent measurement of redeemable non-controlling interest | $ | 15,999,471 | $ | (58,542,890 | ) | |||
| Class A common stock issued upon vesting of restricted stock awards | $ | 5 | $ | - | ||||
| Class A common stock issued in exchange for class V common stock | $ | 875 | $ | - | ||||
| Fair value of class A common stock issued in exchange for OpCo class B units | $ | 19,202,500 | $ | - | ||||
| Reverse recapitalization related deferred taxes and adjustments | $ | 238,491 | $ | - | ||||
| Operating lease right-of-use asset and liability measurement | $ | 68,760 | $ | - | ||||
| Deferred equity issuance costs | $ | - | $ | 3,269,039 | ||||
| Issuance of class A common stock to vendors | $ | - | $ | 891,035 | ||||
| Issuance of class A common stock to backstop investors | $ | - | $ | 1,569,463 | ||||
