Zeo Energy (ZEO) Q2 2026 earnings summary

Executive summary

• Net revenues for the quarter were $16.2 million, down 10.7% year-over-year, primarily due to lower related party revenue, partially offset by increased third-party sales.

• First half 2026 revenue grew 9.2% year-over-year to $29.4 million, despite a 10.7% decline in Q2 revenue compared to the prior year quarter.

• Net loss attributable to Class A common stockholders was $2.3 million for the quarter, an improvement from $2.4 million in the prior year.

• Net loss for Q2 remained flat at $(2.7) million year-over-year, while first half net loss narrowed significantly to $(7.4) million from $(16.0) million.

• The company continues to focus on expanding its residential solar and roofing business, integrating Heliogen's energy storage technology, and improving operational efficiency.

Financial highlights

• Q2 2026 revenue: $16.2 million, down 10.7% year-over-year; first half 2026 revenue: $29.4 million, up 9.2%.

• Q2 gross profit: $7.6 million (47.1% margin), down from $10.8 million (59.8% margin) year-over-year.

• Q2 contribution profit: $3.4 million (21.1% margin), up from $2.7 million (15.1% margin) year-over-year.

• Cash and cash equivalents were $2.5 million as of June 30, 2026, with positive working capital of $7.1 million.

• Net cash used in operating activities improved to $1.3 million for the six months, compared to $4.5 million in the prior year.

Outlook and guidance

• Management expects operational investments to improve operating profit in the second half of 2026.

• The company is leveraging a $30 million equity line of credit (ELOC) with White Lion, with approximately $6.5 million currently accessible.

• Additional capital may be raised through private placements, public offerings, or warrant repricing.

• Improved access to tax equity capital and expanded funding capacity with principal financing partner support higher installation volumes.

• Optimism for growth in residential solar and commercial energy segments, including data center and renewable applications.