SunPower (SPWR) Q2 2026 earnings summary

Executive summary

• Q2'26 revenue declined to $55.96 million–$56.0 million from $72.79 million–$73 million in Q1'26, mainly due to delayed panel shipments and execution issues, particularly in the SunPower Direct Division.

• Non-GAAP operating loss improved slightly to $(12.5) million from $(12.9) million, with GAAP operating loss at $(18.1) million.

• Aggressive cost reductions, including $13 million in permanent savings and $19.7 million in operating expense cuts, were achieved through headcount reduction, a four-day workweek, and management rationalization.

• Leadership changes included the appointment of CFO Tom Kowalczuk and replacement of SunPower Direct management after quality control violations.

• Strategic focus is shifting to premium solar technology, high-margin installations, and leveraging technology partnerships.

Financial highlights

• Gross margin ranged from 27.6% to 49% in Q2'26, down from 44%–62% in Q1'26.

• Operating expenses reduced by $19.7 million sequentially, including $7.1 million in fixed cost reductions.

• Cash balance at quarter-end was $4.0 million, below the $10 million target.

• Stock price declined 79.81% year-over-year, with a market cap of $45.22 million.

• Share count stands at 151 million, potentially rising to 200 million as legacy deals settle.

Outlook and guidance

• Q3'26 revenue is projected to exceed $75 million, with operating loss targeted to be reduced by 90% to less than $1 million.

• Backlog clearance is expected to release $15.3 million in revenue in Q3'26.

• Further $5.9 million in fixed cost reductions planned for Q3'26.

• Management remains committed to achieving targets despite industry headwinds such as labor shortages, heat waves, and regulatory delays.

• Normalized revenue run rate estimated at $60 million per quarter, with gradual growth expected.