SUNation Energy (SUNE) investor relations material

Executive summary

• Q1 2026 saw a 43% year-over-year sales decline to $7.2M, driven by a 53% drop in residential contract revenue after the expiration of federal tax credits and weather disruptions, partially offset by commercial revenue growth and cost management.

• Gross profit fell 64% to $1.6M, with gross margin dropping to 22% from 35% due to fixed costs not scaling with revenue.

• Net loss widened to $4.1M, or $(1.20) per diluted share, compared to $3.5M, or $(106.71) per share, in Q1 2025.

• Management initiated a strategic review in April 2026, considering options including a sale, merger, or restructuring, and emphasized diversification across segments.

Financial highlights

• Operating expenses decreased 10% to $5.9M, mainly from lower selling and marketing costs and headcount reductions.

• Interest expense dropped 77% to $0.13M, reflecting debt reduction and restructuring.

• Cash and equivalents were $1.7M at March 31, 2026, with a working capital deficit of $3.5M.

• Net cash used in operating activities was $5.2M, up from $3.4M in Q1 2025.

Outlook and guidance

• Management expresses substantial doubt about the company's ability to continue as a going concern without additional capital and is seeking new funding through equity, debt, or strategic alliances.

• The Board is evaluating strategic pathways to enhance financial flexibility and support long-term shareholder value.