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.

• 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.

• 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

• Six-month net revenues increased 9.2% year-over-year to $29.4 million, driven by higher solar installation activity.

• Cost of revenues rose 33.6% to $16.1 million for the six months, compressing gross margin due to higher material and labor costs.

• Adjusted EBITDA for the quarter was a loss of $2.1 million, with a margin of -13.0%.

• 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 to increase revenue and move toward positive cash flow by expanding the sales force and centralizing operations.

• 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.