Zeo Energy Reports Second Quarter 2026 Financial Results

1H 2026 revenue increased 9.2%

Continued focus on identifying accretive commercial opportunities and controlling costs

NEW PORT RICHEY, Fla., Aug. 14, 2026 (GLOBE NEWSWIRE) --   Zeo Energy Corp. (Nasdaq: ZEO) (“Zeo,” “Zeo Energy,” or the “Company”), a provider of residential solar and commercial long-duration energy-storage solutions, today reported financial results for the second quarter and first half ended June 30, 2026.

Second Quarter and First Half Financial and Operational Highlights

• Second quarter revenue was $16.2 million, down 10.7% from the $18.1 million in the prior year quarter, although in the first half 2026 revenue increased 9.2% as described further below.
  
  
• Gross profit for the quarter decreased to $7.6 million from $10.8 million in the prior year quarter.
  
  
• Contribution profit increased to $3.4 million from $2.7 million in the prior year quarter.
  
  
• Net loss was $(2.7) million in the second quarter, unchanged from a loss of $(2.7) million in the prior year quarter.
  
  
• Second quarter Adjusted EBITDA (a non-GAAP financial measure reconciled below) was a loss of $(2.1) million compared to Adjusted EBITDA of $1.6 million in the prior year quarter.
  
  
• Revenue for the first six months of 2026 increased 9.2% to $29.4 million compared to $26.9 million in the first six months of 2025.
  
  
• Gross profit for the first six months of 2026 decreased to $13.2 million from $14.8 million in the prior year quarter.
  
  
• Contribution profit for the first six months increased to $5.7 million from $(0.0) million in the first six months of 2025.
  
  
• Net loss for the first six months of 2026 was $(7.4) million compared to $(16.0) million in the first six months of 2025.
  
  
• Adjusted EBITDA loss for the first six months of 2026 was $(5.0) million compared to $(3.9) million in the first six months of 2025.
  

Management Commentary

“Zeo continues to generate results that are outpacing the residential solar market, and we believe we have successfully turned a corner as we enter a new growth cycle,” said Zeo Energy Corp. CEO Tim Bridgewater. “Revenues in the second quarter improved 23% sequentially versus our first quarter 2026 revenues. While the industry has seen a 40% decrease in permits for residential solar during the first half of the year, our revenues were up 9% (1). We continue to invest in our commercial energy strategy to support data center partners. In addition, we have made investments in our operational processes to improve overall costs. We expect these investments to bear fruit in the second half of the year and enhance operating profit. Overall, we believe we are well positioned to further separate ourselves from our peers.”

Mr. Bridgewater continued, “Longer term, we are optimistic about our growth potential in our core residential solar business. As an example, we are seeing improving access to tax equity capital in the residential solar market. After a period of reduced investor activity, Zeo’s principal financing partner closed multiple tax equity funds in 2026, a positive sign of normalization. Zeo has strengthened its relationship with this partner, with greater alignment to expand funding capacity and support higher installation volumes. These developments provide a foundation for growth through the balance of 2026 and into 2027 as the market for residential solar becomes more robust.”

Lastly, Mr. Bridgewater commented on the Company’s commercial opportunities outlook, “We continue to evaluate several long-duration energy storage projects to support behind-the-meter power. We remain focused on diversifying Zeo Energy into commercial energy, including data center and renewable applications, and remain opportunistic in identifying and integrating the right set of assets that will fit into our overall operating business and align with our vision to build a comprehensive energy solutions platform.”

Second Quarter 2026 Financial Results

Results compare the second quarter of 2026 ended June 30, 2026 to the second quarter of 2025 ended June 30, 2025.

• Net revenue was $16.2 million in the second quarter of 2026, down 10.7% from $18.1 million in the prior year period due to a decrease in the number of solar system installations.
  
  
• Gross profit decreased to $7.6 million, 47.1% of net revenue, in the second quarter of 2026 from $10.8 million, 59.8% of net revenue, in the prior year period. The decrease in gross profit was due to decreased revenue while margins were lower due to higher sourcing of domestic content.
  
  
• Contribution profit in the second quarter of 2026 increased to $3.4 million from $2.7 million in the prior year period and contribution margin increased to 21.1% of revenue from 15.1% of revenue in the prior year period due to better cost control.
  
  
• Net loss for the second quarter of 2026 was $(2.7) million; the same as the prior year period. Overall, Zeo’s operating expenses were down $1.8 million, or 8.6%, compared to the prior year period. This resulted in a narrowing of loss per share to $(0.07) from $(0.11).
  
  
• Adjusted EBITDA decreased to a loss of $(2.1) million, (13.0)% of net revenue, in the second quarter of 2026 from approximately $1.6 million, 9.0% of net revenue, in the prior year period. The decrease was primarily related to lower depreciation and amortization, revenues, and stock-based compensation expenses.
  

First Half 2026 Financial Results

Results compare the first six months of 2026 ended June 30, 2026 to the first six months of 2025 ended June 30, 2025.

• Net revenue was $29.4 million in the first six months of 2026, up 9.2% from $26.9 million in the prior year period as a result of an increase in the number of solar system installations in the first half of 2026.
  
  
• Gross profit decreased to $13.2 million, 45.1% of net revenue, in the first six months of 2026 from $14.8 million, 55.1% of net revenue, in the prior year period due to higher sourcing of domestic content.
  
  
• Contribution profit increased to $5.7 million in the first six months of 2026 from $(0.0) million in the prior year period, and contribution margin increased to 19.2% of revenue from (0.1)% of revenue in the prior year period due better cost control.
  
  
• Net loss in the first six months of 2026 was $(7.4) million compared to $(16.0) million in the prior year period. The decrease in loss was driven by higher revenue, lower operating expenses, including lower depreciation and amortization and sales and marketing expenses. Overall, Zeo’s operating expenses were down $6.1 million, or 14.2%, as compared to the prior year period. This resulted in a narrowing of loss per share to $(0.17) from $(0.44).
  
  
• Adjusted EBITDA decreased to a loss of $(5.0) million, (16.9)% of net revenue, from $(3.9) million, (14.4)% of net revenue, in the prior year period.
  

(1) Based on data from Ohm Analytics comparing January through May of 2026 compared to January through May of 2025 and second quarter and first half year-over-year results from SunPower and SunRun, both comparables of Zeo Energy.

Additional information regarding Zeo’s results of operations for the quarter ended June 30, 2026, can be found in its Quarterly Report on Form 10-Q, which has been filed with the U.S. Securities and Exchange Commission and can be accessed here.

For more information, please visit the Zeo Energy Corp. website at https://zeoenergy.com/.

About Zeo Energy Corp.

Zeo Energy Corp. (Nasdaq: ZEO) 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. 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.

Non-GAAP Financial Measures

In addition to reporting financial results in accordance with U.S. generally accepted accounting principles (“GAAP”), this press release includes certain non-GAAP measures, notably “Adjusted EBITDA” and “Adjusted EBITDA margin”. The Company is providing this non-GAAP measure as a supplement to its financial statements prepared in accordance with GAAP which appear in this press release and in the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 as filed with the U.S. Securities and Exchange Commission. Readers are cautioned that non-GAAP financial measures are not required to be uniformly applied and are not audited.

Adjusted EBITDA

Zeo Energy defines Adjusted EBITDA 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 Energy 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,   2026  2025  2026  2025 Net loss $(2,749,966) $(2,679,464) $(7,441,277) $(15,998,827)                 Adjustments:                Other income  (101,200)  (53,328)  (169,637)  (135,691)Interest expense  32,429   (29,989)  43,282   288 Gain on change in fair value of derivative liability  (232,500)  –   (232,500)  – (Gain) loss on change in fair value of warrant liabilities  (34,500)  96,269   41,400   (567,180)Income tax provision (benefit)  96,782   (186,994)  4,653   336,506 Stock-based compensation  634,228   1,078,201   1,328,596   3,335,340 Transaction-related expenses  –   226,439   138,723   1,072,298 Depreciation and amortization  248,171   3,175,452   1,329,699   8,076,181 Adjusted EBITDA $(2,106,556) $1,626,586  $(4,957,061) $(3,881,085)                 Net loss margin  (17.0)%  (14.8)%  (25.3)%  (59.5)%Adjusted EBITDA margin  (13.0)%  9.0%  (16.9)%  (14.4)%

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 Energy 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,   2026  2025  2026  2025 Net loss $(2,749,966) $(2,679,464) $(7,441,277) $(15,998,827)Adjusted EBITDA $(2,106,556) $1,626,586  $(4,957,061) $(3,881,085)Net loss margin  (17.0)%  (14.8)%  (25.3)%  (59.5)%Adjusted EBITDA margin  (13.0)%  9.0%  (16.9)%  (14.4)%

Cautionary Note Regarding 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,” “aim,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will,” along with derivatives of these words 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 operational or financial performance of the Company; the ability to effectively consolidate the assets of acquired companies 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 and other 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 significant 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 raise additional capital and maintain the listing of its common stock and warrants on Nasdaq; (iv) limited liquidity and trading of the Company’s securities; (v) geopolitical risks (including those that impact the price of energy) 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 acquired companies 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, 2025 and in its subsequent periodic reports and other filings with the SEC.

In light of the significant risks and uncertainties associated with 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,   2026  2025   (Unaudited)    ASSETS      Current Assets      Cash and cash equivalents $2,451,981  $6,137,939 Accounts receivable, net of allowance of $2,010,535 and $4,777,550, respectively  10,015,739   8,158,909 Accounts receivable – related party  286,638   611,807 Inventories  820,547   852,179 Contract assets  2,000,117   2,598,623 Prepaid expenses and other current assets  4,042,046   4,192,590 Total Current Assets  19,617,068   22,552,047          Other assets  61,277   92,712 Property and equipment, net  1,975,341   2,830,490 Operating lease right-of-use assets  603,128   897,476 Finance lease right-of-use assets  242,302   310,539 Note receivable – related party  6,383,149   3,153,485 Goodwill  27,091,695   27,091,695 TOTAL ASSETS $55,973,960  $56,928,444          LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS’ EQUITY        Current Liabilities        Accounts payable $4,721,355  $3,769,078 Accrued expenses and other current liabilities  3,148,309   2,421,237 Customer advances – related party  3,779,066   49,269 Contract liabilities  244,033   1,301,393 Current portion of operating lease obligations  495,687   684,819 Current portion of finance lease obligations  149,534   142,095 Current portion of long-term debt  24,858   23,526 Total Current Liabilities  12,562,842   8,391,417          Operating lease obligations, net of current portion  166,944   304,295 Finance lease obligations, net of current portion  132,189   208,865 Long-term debt, net of current portion  42,815   55,586 Convertible note, net  529,082   – Derivative liability  699,100   – Warrant liabilities  532,680   491,280 TOTAL LIABILITIES  14,665,652   9,451,443          Redeemable Noncontrolling Interests        Class A convertible preferred units, 1,500,000 units issued and outstanding as of June 30, 2026 and December 31, 2025  17,925,295   17,207,469 Class B units, 21,380,000 and 22,880,000 units issued and outstanding as of June 30, 2026 and December 31, 2025, respectively  14,119,352   24,939,200          Stockholders’ Equity        Class V common stock, $0.0001 par value, 100,000,000 authorized shares; 22,880,000 and 24,380,000 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively  2,288   2,438 Class A common stock, $0.0001 par value, 300,000,000 authorized shares; 35,399,972 and 33,180,843 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively  3,540   3,318 Additional paid-in capital  65,679,328   63,394,456 Accumulated other comprehensive income (loss)  15,898   (4,895)Accumulated deficit  (56,437,393)  (58,064,985)TOTAL STOCKHOLDERS’ EQUITY  9,263,661   5,330,332 TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS’ EQUITY $55,973,960  $56,928,444 

ZEO ENERGY CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
     Three Months Ended
June 30,  Six Months Ended
June 30,   2026  2025  2026  2025 Revenues            Revenue, net $15,547,544  $9,976,447  $27,703,065  $16,192,838 Related party revenue, net  621,919   8,125,483   1,651,342   10,692,787 Total Net Revenues  16,169,463   18,101,930   29,354,407   26,885,625                  Operating Expenses                Cost of revenues  8,545,576   7,284,487   16,125,622   12,074,166 Depreciation and amortization  248,171   3,175,452   1,329,699   8,076,181 Sales and marketing  4,416,419   5,629,040   7,428,189   7,766,132 General and administrative  5,948,252   4,866,457   12,224,976   15,334,050 Total Operating Expenses  19,158,418   20,955,436   37,108,486   43,250,529                  LOSS FROM OPERATIONS  (2,988,955)  (2,853,506)  (7,754,079)  (16,364,904)                 Other Income (Expense)                Other income  101,200   53,328   169,637   135,691 Interest expense  (32,429)  29,989   (43,282)  (288)Gain on change in fair value of derivative liability  232,500   –   232,500   – Gain (loss) on change in fair value of warrant liabilities  34,500   (96,269)  (41,400)  567,180 Total Other Income (Expense)  335,771   (12,952)  317,455   702,583                  NET LOSS BEFORE INCOME TAXES  (2,653,184)  (2,866,458)  (7,436,624)  (15,662,321)Income tax benefit (provision)  (96,782)  186,994   (4,653)  (336,506)NET LOSS $(2,749,966) $(2,679,464) $(7,441,277) $(15,998,827)                 Less: Net loss attributable to redeemable non-controlling interests  (414,736)  (263,628)  (1,593,373)  (7,221,726)NET LOSS ATTRIBUTABLE TO CLASS A COMMON STOCKHOLDERS $(2,335,230) $(2,415,836) $(5,847,904) $(8,777,101)                 LOSS PER CLASS A COMMON SHARE                BASIC AND DILUTED $(0.07) $(0.11) $(0.17) $(0.44)                 WEIGHTED-AVERAGE CLASS A COMMON SHARES OUTSTANDING                BASIC  35,194,815   22,096,464   34,296,809   19,983,013 DILUTED  35,837,664   22,096,464   34,618,233   19,983,013                  COMPREHENSIVE INCOME                Foreign currency translation adjustments  7,647   –   20,793   – NET COMPREHENSIVE LOSS $(2,327,583) $(2,415,836) $(5,827,111) $(8,777,101)

ZEO ENERGY CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
     Six Months Ended
June 30,   2026  2025        CASH FLOWS FROM OPERATING ACTIVITIES      Net loss $(7,441,277) $(15,998,827)Adjustment to reconcile net loss to net cash used in operating activities        Depreciation and amortization  1,329,699   8,076,181 Amortization of debt discount  17,814   – Interest added to note receivable – related party  (79,664)  (75,786)Gain on change in fair value of derivative liability  (232,500)  – (Gain) loss on change in fair value of warrant liabilities  41,400   (567,180)Stock-based compensation  1,297,281   3,271,831 Class A common stock issued to employees for services  31,315   63,509 Provision for credit losses  471,044   3,270,881 Non-cash operating lease expense  336,073   318,763 Changes in operating assets and liabilities:        Accounts receivable  (2,327,874)  1,310,867 Accounts receivable – related party  325,169   133,512 Inventories  31,632   (45,265)Contract assets  598,506   (9,177)Contract assets – related parties  –   (2,705,295)Prepaids and other current assets  141,094   495,250 Other assets  31,435   (1,005,197)Accounts payable  972,687   2,269,487 Accrued expenses and other current liabilities  837,649   (1,038,671)Customer advances – related party  3,729,797   (2,000,674)Contract liabilities  (1,057,360)  2,936 Contract liabilities – related party  –   (2,000)Operating lease payments  (368,208)  (315,079)Net cash used in operating activities  (1,314,288)  (4,549,934)         CASH FLOWS FROM INVESTING ACTIVITIES        Purchases of property and equipment  (406,315)  (807,025)Investment in note receivable – related party  (3,150,000)  – Net cash used in investing activities  (3,556,315)  (807,025)         CASH FLOWS FROM FINANCING ACTIVITIES        Net proceeds from Class A common stock issued in connection with a committed equity facility  13,455   – Net proceeds from convertible note  1,500,000   – Debt issuance costs paid  (57,132)  – Repayments of finance lease liabilities  (69,237)  (63,651)Repayments of debt  (11,439)  (144,814)Dividends paid to OpCo Class A preferred unit holders  (160,153)  – Tax withholdings paid related to stock-based compensation  (30,107)  – Net cash provided by (used in) financing activities  1,185,387   (208,465)         Effect of foreign exchange on cash  (742)  –          NET CHANGE IN CASH AND CASH EQUIVALENTS  (3,685,958)  (5,565,424)Cash and cash equivalents, beginning of period  6,137,939   5,634,115 Cash and cash equivalents, end of the period $2,451,981  $68,691          SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION        Cash paid for interest $20,664  $49,672 Cash paid for income taxes $–  $–          NON-CASH INVESTING AND FINANCING ACTIVITIES        Net loss attributable to redeemable noncontrolling interest $2,471,352  $8,049,929 OpCo Class A preferred dividends $877,979  $828,203 Subsequent measurement of redeemable noncontrolling interest $7,475,496  $15,999,471 Class A common stock issued upon vesting of restricted stock awards $38  $5 Class A common stock issued in exchange for Class V common stock $150  $875 Fair value of Class A common stock issued in exchange for OpCo Class B units $873,000  $19,202,500 Class A common stock issued for commitment fee $100,000  $– Reverse recapitalization related deferred taxes and adjustments $–  $238,491 Fair value of derivative liability recognized upon issuance of convertible note $931,600  $– Original issue discount on convertible note $170,000  $– Right-of-use assets obtained in exchange for new operating lease liabilities $41,725  $68,760