SunPower (SPWR) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $72.8 million, down from $90.9 million in Q4 2025 and 7% lower year-over-year, missing guidance due to market softness and increased spending for anticipated Q3 2026 growth.

• Non-GAAP operating loss was $12.9 million, impacted by one-time spending, hiring, and higher operating expenses post-acquisitions.

• Record bookings in Q1 2026 reached 4,446 jobs, up from 1,197 in Q1 2025, driven by recent acquisitions.

• Significant cost reductions implemented, including layoffs, a four-day workweek, and restructuring, to improve future profitability.

• Restatements of three quarters required after a difficult audit, with new financial controls, SOX compliance, and leadership changes.

Financial highlights

• Q1 2026 revenue: $72.8 million; gross margin improved to 62% GAAP (up from 51% in Q4 2025 and 35% in Q1 2025).

• Q1 2026 non-GAAP operating loss: -$12.9 million; GAAP operating loss: -$19.2 million.

• Operating expenses rose to $64.4 million, mainly from increased sales commissions and G&A costs.

• Cash balance at quarter end: $9.5 million, nearly flat sequentially.

• 2025 audited revenue restated to $300 million from $308 million due to double booking; operating income restated to $7.3 million.

Outlook and guidance

• Q2 2026 revenue estimate: $75 million, with operating loss reduced to $3 million; 60% of cost cuts to benefit Q2.

• Q3 2026 revenue expected to exceed $96 million, with profitability and positive cash flow anticipated.

• Management expects continued operating losses and negative cash flows in the near term, with long-term goal of $1 billion revenue run rate by Q3 2028.