Zeo Energy (ZEO) Q3 2025 earnings summary

Executive summary

• Q3 2025 net revenues increased 21.6%–22% year-over-year to $23.9 million, driven by higher installations, new pricing agreements, and higher average selling prices.

• Gross margin improved to 57.4% in Q3 2025 from 48.8% in Q3 2024, reflecting higher average selling prices.

• Net loss for Q3 2025 was $1.9 million, narrowing from $2.9 million in Q3 2024, with a basic and diluted loss per share of $0.12.

• The Heliogen acquisition, completed in Q3 2025, expands offerings into large-scale commercial and industrial energy generation and storage.

Financial highlights

• Q3 2025 net revenues: $23.9 million (up from $19.7 million in Q3 2024); nine months ended September 30, 2025: $50.8 million (down from $54.6 million in 2024).

• Gross profit for Q3 2025: $13.7 million (57.4% margin); nine months: $28.1 million (55.3% margin).

• Net loss for Q3 2025: $1.9 million; nine months: $17.9 million, up from $8.7 million in 2024 due to softer residential solar demand and bad debt.

• Adjusted EBITDA for Q3 2025: $2.0 million (8.2% margin); nine months: $(1.9) million.

• Cash and cash equivalents as of September 30, 2025: $3.9 million, down from $5.6 million at year-end 2024.

Outlook and guidance

• Q4 2025 net revenues expected to be consistent with Q3, reflecting stabilization and typical year-end seasonality.

• Management expects continued expansion into new residential and commercial markets, leveraging the Heliogen acquisition for growth in energy storage and industrial projects.

• Inflation and higher interest rates are expected to continue impacting material and labor costs, as well as consumer demand for financed solar systems.

• The company believes existing cash and working capital are sufficient for the next twelve months, but additional capital may be needed for future acquisitions.

• Expansion into new markets like Virginia and focus on attracting top sales talent to drive future growth in 2026.