Zeo Energy (ZEO) Q4 2025 earnings summary

Executive summary

• Net revenues for 2025 were $69.3 million, down 5.3% from $73.2 million in 2024, primarily due to decreased installations and higher interest rates impacting consumer financing demand.

• Gross profit for 2025 was $30.2 million (43.5% margin), slightly down from $31.5 million (43.0% margin) in 2024, reflecting improved per-installation costs.

• Net loss widened to $19.6 million in 2025 from $9.9 million in 2024, driven by higher operating expenses, increased depreciation/amortization, and expanded sales and marketing efforts.

• Adjusted EBITDA was a loss of $3.3 million in 2025, compared to a positive $4.0 million in 2024.

• The company completed the acquisition of Heliogen in August 2025, expanding into commercial and industrial energy storage markets.

Financial highlights

• Cost of revenues decreased by $7.0 million year-over-year, improving gross margin to 43.5%.

• Operating expenses increased by $9.1 million, mainly due to higher payroll, stock-based compensation, and costs associated with being a public company.

• Cash and cash equivalents at year-end 2025 were $6.1 million, up from $5.6 million in 2024.

• Net cash used in operating activities was $8.7 million in both 2025 and 2024.

• Net cash provided by investing activities was $13.4 million in 2025, primarily from cash acquired in the Heliogen acquisition.

• Net cash used in financing activities was $4.2 million in 2025, mainly for debt repayments and preferred unit dividends.

Outlook and guidance

• Management expects to improve cash flows in 2026 through increased sales agents, operational efficiency, and new CRM software.

• The company has access to a $30 million equity line of credit with White Lion Capital to support liquidity.

• Plans include further expansion into new geographic markets and continued investment in sales and installation capacity.