Ozap Energy Solutions Reports 93% Revenue Decline and Increased Losses in Latest Quarter

Ozop Energy Solutions, Inc. reported significant declines in revenue and increased losses in its latest quarterly financial results, as detailed in its 10-Q filing for the period ending June 30, 2025. The company generated revenues of $63,731 for the three months ended June 30, 2025, a stark decrease of approximately 93% compared to $941,972 for the same period in 2024. For the six months ended June 30, 2025, revenues totaled $105,988, down from $1,193,694 in the prior year. The decline in revenue is attributed to reduced demand for residential solar installations, exacerbated by higher interest rates and competitive pricing pressures.

The company's cost of revenue also decreased significantly, amounting to $49,617 for the three months and $78,636 for the six months ended June 30, 2025, compared to $823,647 and $939,092, respectively, in the same periods of 2024. Despite the reduction in costs, the gross profit fell sharply, resulting in a net loss from continuing operations of $2,205,998 for the three months and $3,763,169 for the six months, compared to losses of $1,291,791 and $2,715,586 in the prior year periods. The increase in losses is primarily due to lower revenues and higher other expenses, including interest and derivative losses.

Operationally, Ozop Energy Solutions has made strategic moves, including the formation of new subsidiaries focused on renewable energy and lighting control systems. The company has also engaged in equity financing agreements to raise capital, securing $295,965 from the sale of common stock during the first half of 2025. However, as of June 30, 2025, the company reported a working capital deficit of $35,469,211 and an accumulated deficit of $228,631,810, raising substantial doubt about its ability to continue as a going concern.

The company’s employee headcount has been reduced, with only a few employees remaining to manage operations across its subsidiaries. The filing indicates that the company is actively seeking to improve its financial position through potential fundraising efforts and strategic partnerships. However, the ongoing challenges in the market and the need for additional capital to meet obligations remain critical concerns for the company’s future operations.