Shoals Technologies Group Reports 74.9% Revenue Growth to $140.6 Million

Shoals Technologies Group, Inc. reported significant financial growth in its latest quarterly results, with revenue reaching $140.6 million for the three months ended March 31, 2026, a 74.9% increase from $80.4 million in the same period last year. The company's gross profit also rose to $41.0 million, although the gross profit margin decreased to 29.2% from 35.0% due to increased costs associated with tariffs and material expenses. Operating expenses increased by 39.6% to $33.3 million, primarily driven by higher legal costs related to ongoing litigation and increased personnel expenses.

The company experienced a net loss of $297,000 for the quarter, slightly worse than the $282,000 loss reported in the prior year. This loss was impacted by a litigation settlement expense of $5.3 million, which was accrued in connection with ongoing securities litigation. Interest expenses also rose to $2.9 million, reflecting higher borrowings under the company's revolving credit facility, which increased to $181.8 million as of March 31, 2026, up from $136.8 million at the end of 2025.

In terms of operational metrics, Shoals reported a backlog of $758 million, which includes $390.3 million in signed purchase orders and $367.7 million in awarded orders. This backlog represents a 17.5% increase compared to the same date last year and a 1.4% increase from the end of 2025. The company continues to focus on expanding its market presence, with over 13.1% of its backlog related to international projects. The employee headcount increased from 171 to 199 over the past year, reflecting the company's growth strategy.

Looking ahead, Shoals Technologies Group remains optimistic about the utility-scale solar market, despite facing challenges such as supply chain disruptions and regulatory uncertainties. The company is actively monitoring market conditions and adjusting its strategies to mitigate risks associated with trade regulations and inflationary pressures. Management anticipates that the demand for solar energy projects will continue to grow, which could positively impact the company's financial performance in the coming quarters.