SUNE

Scott mentioned that in 2025, the company stabilized the business, cleaned up the balance sheet, reduced costs, and tightened execution, leading to stronger operating performance. The fourth quarter showed strong residential demand as customers moved ahead of the Section 25D residential tax credit expiration. The company is building a strong commercial and service pipeline and plans to return to the roll - up strategy in 2026. They are also watching the impact of AI and data center infrastructure on energy demand, seeing opportunities in distributed energy, storage, and resilient energy systems. The commercial side has strong relationships and the service side performs well with orphan system opportunities and retrofit/upgrade potential.

Management is not comfortable giving 2026 guidance at this point due to industry turmoil. They expect to have clarity on financing options by the end of Q2. The solar industry is transitioning to third - party ownership, and the market is facing changes in regulations and financing.

For the fourth quarter of 2025, total sales were $27.2 million compared to $15.4 million in the prior year period, an increase of 77%. For the full year 2025, total sales were $71.9 million compared to $56.9 million in full year 2024, an increase of 26%. Fourth quarter residential sales increased 54%, and service revenue grew more than 70%. Fourth quarter profit was $11.1 million or 40.7% of sales compared to $5.6 million or 36.4% in the prior year quarter. For the full year 2025, gross margin was 38.3%. Adjusted EBITDA for fourth quarter was $4.1 million to an adjusted EBITDA loss of $1.1 million in the prior year quarter. For the full year 2025, adjusted EBITDA was $2.5 million compared to an adjusted EBITDA loss of $4.9 million in 2024.

The solar industry is volatile with changes in tax policies, tariffs, and financing. The transition to new ownership models and regulatory changes can pose risks. Weather conditions in Q1 can impact operations, and the industry shakeout can bring uncertainties.

Q: Around 2026 guidance and largest headwinds impacting the space.

A: Scott said not comfortable giving guidance now, expects clarity by end of Q2. Jim mentioned the industry is pivoting to third - party ownership. Scott also talked about energy rates in NY and HI dictating the market and financing companies sorting out products.

Q: Long - term outlook for residential solar.

A: Third - party ownership is not new, but at state and utility level is important. Energy prices and their increase drive residential solar adoption, and products are evolving.

Q: Addition of Generac to equipment suite.

A: Scott said he likes Generac, it's for residential solar and storage, driven by customer demand and diversification. They see cross - branding and service opportunities with Generac.