Zeo Energy Corp. Reports Third Quarter 2025 Financial Results

NEW PORT RICHEY, Fla., Nov. 14, 2025 (GLOBE NEWSWIRE) -- Zeo Energy Corp. (NASDAQ:ZEO) ("Zeo," "Zeo Energy," or the "Company"), a Florida-based provider of residential solar and commercial long-duration energy-storage solutions, today reported financial results for the third quarter and nine months ended September 30, 2025.

Recent Financial and Operational Highlights

• Third quarter net revenue was approximately $23.9 million, a 32% increase from the second quarter and a 22% increase from the third quarter of 2024.
• Third quarter Adjusted EBITDA, a non-GAAP financial measure, was $2.0 million, an improvement from $1.4 million in the second quarter and $(0.2) million in the third quarter of 2024.
• The Company's completed acquisition, during the third quarter, of Heliogen, a provider of on-demand clean energy technology solutions, provides the company with an opportunity 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.
• As a result of the acquisition of Heliogen, the Company has begun to receive strong interest from potential customers interested in solutions supported by Heliogen's technology, including data centers and other energy infrastructure projects.

Management Commentary

"While the broader residential solar market remains challenging, we believe that we have demonstrated a consistent ability to maintain revenue and manage our costs, positioning us well as conditions improve," said Zeo Energy Corp. CEO Tim Bridgewater. "In the third quarter we generated approximately $23.9 million in net revenue, up more than 20% from the third quarter of 2024. Looking ahead, we expect Q4 net revenues to be consistent with Q3, having stabilized in the near term as we navigate typical seasonality associated with the year end. At the same time, we are continuing to expand into favorable new markets, like Virginia, and attract top sales talent that values our competitive differentiation, both of which we believe have us set up well for future growth in 2026.

"Separately, our recently completed acquisition of Heliogen has begun to create additional interest and awareness for the business with exciting potential new opportunities on the horizon. More specifically, we are engaged in several discussions with potential data center and commercial end customers seeking large-scale behind-the-meter energy solutions utilizing photovoltaic (PV) solar and storage. As our diversified platform for energy solutions thesis begins to emerge, we intend to balance select opportunities while remaining committed to profitable growth of our core business."

Third Quarter 2025 Financial Results

Results comparing the third quarter ended September 30, 2025 to the third quarter ended September 30, 2024.

• Total net revenue was approximately $23.9 million in Q3 2025, a 21.6% increase from approximately $19.7 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 approximately $13.7 million (57.4% of total net revenue) in Q3 2025 from approximately $9.6 million (48.8% of total net 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 Q3 2025 was approximately $1.9 million compared to approximately $2.9 million in the comparable 2024 period. The decrease was primarily due to an net increase in revenue during the third quarter of 2025.
• Adjusted EBITDA, a non-GAAP measurement of operating performance reconciled below, increased to approximately $2.0 million (8.2% of total net revenue) in Q3 2025 from approximately $(0.2) million (1.2% of total net revenue) in the comparable 2024 period. The change was primarily related to the improvement in net revenue in the third quarter of 2025.

First Nine Months 2025 Financial Results

Results compare the nine months ended September 30, 2025 to the nine months ended September 30, 2024.

• Total revenue was $50.8 million, a 7.0% decrease from $54.6 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 $28.1 million (55.3% of total revenue) from $23.2 million (42.5% 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 $17.9 million compared to $8.7 million in the comparable 2024 period. The increase is primarily due to a decrease in revenue related to softer residential solar market conditions in the first half of the year.
• Adjusted EBITDA, a non-GAAP measurement of operating performance reconciled below, decreased to $(1.9) million (3.8% of total revenue) from $0.1 million (0.2% of total revenue) in the comparable 2024 period. The change was primarily related to lower revenues and bad debt associated with the bankruptcy of a customer.

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 diversified clean energy company providing residential, commercial, industrial, and utility-scale solutions that cut costs and carbon emissions. Based in Florida, Zeo operates Sunergy, a residential solar, distributed energy, and efficiency solutions business, in high-growth markets with limited competitive saturation. As of August 8, 2025, the closing of the acquisition, it also operates Heliogen, Inc., a long-duration energy generation and storage business designed to deliver renewable power for high-demand applications such as AI, data centers, and other energy-intensive industries. With its vertically integrated approach, Zeo helps customers with a cost-effective transition to 24/7 clean energy. 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 September 30,								Nine Months Ended September 30,
		2025				2024				2025				2024
Net loss		$	(1,869,472	)		$	(2,872,424	)		$	(17,868,299	)		$	(8,736,845	)
Adjustments:
Other income, net			(165,308	)			(137,508	)			(300,999	)			(188,329	)
Interest expense			129,719				209,227				130,007				294,257
Gain on change in fair value of warrant liabilities			(124,200	)			(138,000	)			(691,380	)			(828,000	)
Income tax provision (benefit)			48,752				(44,146	)			385,258				(235,352	)
Stock-based compensation			2,733,674				1,503,129				6,069,014				7,101,818
Acquisition-related expenses			953,515				738,134				2,025,813				1,268,647
Depreciation and amortization			249,447				499,876				8,325,628				1,413,074
Adjusted EBITDA		$	1,956,127			$	(241,712	)		$	(1,924,958	)		$	89,270
Net loss margin			(7.8	)%			(14.6	)%			(35.2	)%			(16.0	)%
Adjusted EBITDA margin			8.2	%			(1.2	)%			(3.8	)%			0.2	%

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 September 30,								Nine Months Ended September 30,
		2025				2024				2025				2024
Net loss		$	(1,869,472	)		$	(2,872,424	)		$	(17,868,299	)		$	(8,736,845	)
Adjusted EBITDA		$	1,956,127			$	(241,712	)		$	(1,924,958	)		$	89,270
Adjusted EBITDA margin			8.2	%			(1.2	)%			(3.8	)%			(0.2	)%

Forward-Looking Statements

This earnings 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 Heliogen 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 earnings 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 Heliogen 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 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 earnings release represent the views of the Company as of the date of this earnings 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 earnings 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
		September 30,				December 31,
		2025				2024
ASSETS		(Unaudited)
Current Assets
Cash and cash equivalents		$	3,915,900			$	5,634,115
Accounts receivable, net			10,918,344				9,994,881
Accounts receivable – related parties			465,047				191,662
Inventories			934,871				872,470
Contract assets			2,511,737				640,709
Contract assets – related parties			3,581,890				-
Prepaid expenses and other current assets			1,590,333				1,554,838
Total Current Assets			23,918,122				18,888,675
Other assets			92,712				75,935
Interest receivable – related parties			114,393				-
Deferred tax asset, net			-				238,491
Property and equipment, net			2,871,507				2,475,963
Operating lease right-of-use assets			1,067,373				1,268,139
Finance lease right-of-use assets			344,657				447,012
Related party note receivable			3,000,000				3,000,000
Intangibles, net			-				7,571,156
Goodwill			27,091,695				27,010,745
TOTAL ASSETS		$	58,500,459			$	60,976,116
LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND STOCKHOLDERS' DEFICIT
Current Liabilities
Accounts payable		$	3,446,248			$	2,780,885
Accrued expenses and other current liabilities			2,844,376				5,181,087
Accrued expenses and other current liabilities – related parties			-				3,359,101
Contract liabilities			1,250,465				201,607
Contract liabilities – related parties			-				2,000
Current portion of operating lease obligations			724,083				583,429
Current portion of finance lease obligations			140,300				130,464
Current portion of long-term debt			22,887				291,036
Convertible promissory note, net			2,485,000				2,440,000
Total Current Liabilities			10,913,359				14,969,609
Operating lease obligations, net of current portion			448,633				799,385
Finance lease obligations, net of current portion			242,318				348,807
Long-term debt, net of current portion			61,713				496,623
Warrant liabilities			757,620				1,449,000
TOTAL LIABILITIES			12,423,643				18,063,424
Redeemable Non-Controlling Interests
Convertible preferred units, 1,500,000 units issued and outstanding as of September 30, 2025 and December 31, 2024			16,775,111				16,130,871
Class B Units, 22,980,000 and 33,730,000 units issued and outstanding as of September 30, 2025 and December 31, 2024, respectively			31,023,000				115,693,900
Stockholders' Deficit
Class V common stock, $0.0001 par value, 100,000,000 authorized shares; 24,480,000 and 35,230,000 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively			2,448				3,523
Class A common stock, $0.0001 par value, 300,000,000 authorized shares; 31,198,080 and 13,252,964 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively			3,120				1,326
Additional paid-in capital			60,084,125				14,523,963
Accumulated other comprehensive loss			(4,895	)			-
Accumulated deficit			(61,806,093	)			(103,440,891	)
TOTAL STOCKHOLDERS' DEFICIT			(1,721,295	)			(88,912,079	)
TOTAL LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND STOCKHOLDERS' DEFICIT		$	58,500,459			$	60,976,116

ZEO ENERGY CORP. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
		Three Months Ended September 30,								Nine Months Ended September 30,
		2025				2024				2025				2024
Revenues
Revenue, net		$	16,879,429			$	17,329,201			$	33,072,267			$	36,457,234
Related party revenue, net			7,017,019				2,328,704				17,709,806				18,139,099
Total Net Revenues			23,896,448				19,657,905				50,782,073				54,596,333
Operating Expenses
Cost of revenues			10,053,666				9,787,350				22,127,832				30,805,155
Depreciation and amortization			249,447				499,876				8,325,628				1,413,074
Sales and marketing			9,588,385				5,202,525				17,354,517				16,178,375
General and administrative			5,985,459				7,151,005				21,319,509				15,893,998
Total Operating Expenses			25,876,957				22,640,756				69,127,486				64,290,602
LOSS FROM OPERATIONS			(1,980,509	)			(2,982,851	)			(18,345,413	)			(9,694,269	)
Other Income (Expense)
Other income			165,308				137,508				300,999				188,329
Interest expense			(129,719	)			(209,227	)			(130,007	)			(294,257	)
Gain on change in fair value of warrant liabilities			124,200				138,000				691,380				828,000
Total Other Income			159,789				66,281				862,372				722,072
NET LOSS FROM OPERATIONS BEFORE INCOME TAXES			(1,820,720	)			(2,916,570	)			(17,483,041	)			(8,972,197	)
Income tax benefit (provision)			(48,752	)			44,146				(385,258	)			235,352
NET LOSS		$	(1,869,472	)		$	(2,872,424	)		$	(17,868,299	)		$	(8,736,845	)
Less: net loss attributable to Sunergy Renewables LLC prior to the business combination			-				-				-				(523,681	)
NET LOSS SUBSEQUENT TO THE BUSINESS COMBINATION			(1,869,472	)			(2,872,424	)			(17,868,299	)			(8,213,164	)
Less: Net income (loss) attributable to redeemable non-controlling interests			1,355,548				(2,448,162	)			(5,866,178	)			(5,979,621	)
NET LOSS ATTRIBUTABLE TO CLASS A COMMON STOCKHOLDERS		$	(3,225,020	)		$	(424,262	)		$	(12,002,121	)		$	(2,233,543	)
LOSS PER CLASS A COMMON SHARE – BASIC AND DILUTED		$	(0.12	)		$	(0.08	)		$	(0.53	)		$	(0.60	)
WEIGHTED-AVERAGE CLASS A COMMON SHARES OUTSTANDING – BASIC AND DILUTED			27,307,260				5,053,942				22,489,940				3,696,721
COMPREHENSIVE LOSS
Foreign currency translation adjustments			4,895				-				4,895				-
COMPREHENSIVE LOSS		$	(3,229,915	)		$	(424,262	)		$	(12,007,016	)		$	(2,233,543	)

ZEO ENERGY CORP. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
		Nine Months Ended September 30,
		2025				2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss		$	(17,868,299	)		$	(8,736,845	)
Adjustment to reconcile net loss to cash used in operating activities
Depreciation and amortization			8,325,628				1,413,074
Amortization of debt discount			45,000				-
Gain on change in fair value of warrant liabilities			(691,380	)			(828,000	)
Gain on disposal of fixed assets			-				(91,684	)
Stock-based compensation			6,005,505				6,846,318
Class A common stock issued to employees for services			63,509				255,500
Provision for credit losses			2,557,343				2,282,588
Non-cash operating lease expense			471,966				523,821
Changes in operating assets and liabilities:
Accounts receivable			(3,175,426	)			(7,864,274	)
Accounts receivable – related parties			(273,385	)			(36,410	)
Inventories			(62,401	)			(131,898	)
Contract assets			(1,871,028	)			3,842,974
Contract assets – related parties			(3,581,890	)			-
Prepaids and other current assets			974,118				(689,656	)
Other assets			(2,180	)			(254,806	)
Interest receivable – related parties			(114,393	)			-
Accounts payable			2,431,056				(437,190	)
Accrued expenses and other current liabilities			(1,573,123	)			(1,195,659	)
Accrued expenses and other current liabilities – related parties			(3,359,101	)			(1,985,281	)
Contract liabilities			1,048,858				(3,460,989	)
Contract liabilities – related parties			(2,000	)			(1,160,848	)
Operating lease payments			(481,298	)			(480,270	)
Net cash used in operating activities			(11,132,921	)			(12,189,535	)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment			(1,047,661	)			(285,067	)
Cash acquired in the acquisition of Heliogen			14,596,267				-
Net cash provided by (used in) investing activities			13,548,606				(285,067	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of convertible preferred stock, net of transaction costs			-				9,221,649
Repayments of debt			(3,250,936	)			(261,563	)
Repayments of finance lease liabilities			(96,653	)			(87,728	)
Dividends paid to OpCo class A preferred unit holders			(621,063	)			-
Tax withholdings paid related to stock-based compensation			(160,353	)			-
Distributions to members			-				(90,000	)
Net cash (used in) provided by financing activities			(4,129,005	)			8,782,358
Effect on foreign exchange on cash			(4,895	)			-
NET CHANGE IN CASH AND CASH EQUIVALENTS			(1,718,215	)			(3,692,244	)
Cash and cash equivalents, beginning of period			5,634,115				8,022,306
Cash and cash equivalents, end of the period		$	3,915,900			$	4,330,062
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for interest		$	85,007			$	135,980
Cash paid for income taxes		$	-			$	-
NON-CASH INVESTING AND FINANCING ACTIVITIES
Net loss attributable to redeemable non-controlling interest		$	7,131,481			$	14,986,655
OpCo class A preferred dividends		$	1,265,303			$	9,007,034
Subsequent measurement of redeemable non-controlling interest		$	53,636,919			$	45,873,807
Class A common stock issued upon vesting of restricted stock awards		$	25			$	-
Class A common stock issued in exchange for class V common stock		$	1,075			$	-
Fair value of class A common stock issued in exchange for OpCo class B units		$	23,902,500			$	-
Reverse recapitalization related deferred taxes and adjustments		$	(238,491			$	112,909
Operating lease right-of-use asset and liability measurement		$	140,975			$	790,615
Deferred equity issuance costs		$	-			$	2,769,039
Issuance of class A common stock to vendors		$	-			$	891,035
Issuance of class A common stock to backstop investors		$	-			$	1,569,463
Issuance of class A common stock for services		$	-			$	255,485
Accounts payable settled for loan payable		$	2,547,877			$	-
Net assets acquired in the acquisition of Heliogen		$	14,424,860			$	-
Class A common stock issued in the acquisition of Heliogen		$	14,424,860			$	-
Class A common stock issued in settlement of accrued advisory fees		$	1,619,729			$	-