Complete Solaria Reports 24% Revenue Growth to $108.7 Million, Faces Financial Challenges

Complete Solaria, Inc. reported a significant increase in revenue for the fiscal year ending December 29, 2024, achieving $108.7 million, a 24% rise from $87.6 million in the previous year. This growth was primarily driven by the acquisition of SunPower's assets, which contributed approximately $84.6 million to the total revenue. However, the company also experienced a notable decline in its legacy solar energy system installation revenue, which fell by 70% to $26.1 million, attributed to decreased demand following changes in California's net energy metering program and a general softening in the solar market due to economic conditions and rising interest rates.

Despite the revenue growth, Complete Solaria reported a net loss of $56.5 million for 2024, a decrease from a loss of $269.6 million in 2023. The improvement in net loss was influenced by a substantial increase in gross profit, which rose to $39.5 million, up 122% from the previous year. The gross margin also improved significantly, increasing from 20% to 36%, largely due to the higher-margin New Homes Business segment acquired from SunPower. Operating expenses, however, rose by 54% to $108 million, driven by costs associated with the integration of SunPower and increased general and administrative expenses.

Operationally, Complete Solaria expanded its workforce significantly, with over 600 employees as of December 29, 2024, including approximately 534 who joined through the SunPower acquisition. The company aims to leverage this expanded capacity to enhance its installation capabilities and enter new geographic markets. The acquisition of SunPower's assets is expected to accelerate revenue growth and expand the company's footprint in the solar market, particularly in regions where it previously had limited presence.

Looking ahead, Complete Solaria faces challenges related to its financial health, as it reported an accumulated deficit of $411.4 million and raised concerns about its ability to continue as a going concern. The company had cash and cash equivalents of $13.4 million at the end of 2024, which raises doubts about its liquidity and operational sustainability. Management plans to secure additional funding to support ongoing operations and growth initiatives, but there is no assurance that such financing will be available on favorable terms. The company is also focused on addressing identified material weaknesses in its internal controls over financial reporting, which could impact its financial reporting accuracy and compliance with regulatory requirements.