SolarMax Technology Reports 54.5% Revenue Growth in Q2 2025 Despite Net Loss

SolarMax Technology, Inc. reported its financial results for the second quarter and first half of 2025, revealing a significant increase in revenue compared to the same period in 2024. For the three months ended June 30, 2025, the company generated revenues of $6.9 million, a 54.5% increase from $4.5 million in the prior year. The six-month revenue also rose to $13.8 million, up 35.2% from $10.2 million. This growth was primarily driven by a substantial increase in solar energy sales, which surged by 88.2% to $5.9 million in the second quarter, attributed to the expansion of the company's dealer network program.

Despite the revenue growth, SolarMax reported a net loss of $1.9 million, or $(0.04) per share, for the second quarter, an improvement from a loss of $2.2 million, or $(0.05) per share, in the same quarter of 2024. For the first half of 2025, the net loss was $3.2 million, significantly reduced from $21.4 million in the prior year. The decrease in losses was largely due to a reduction in general and administrative expenses, which fell to $4.5 million from $20.7 million, primarily due to a one-time stock-based compensation expense recognized in the previous year.

Operationally, the company has seen a notable shift in its business model, with approximately 48% of revenues in the first half of 2025 generated through its dealer network, compared to just 11% in the same period of 2024. This strategic pivot aims to offset declines in residential solar sales, particularly in California, where the implementation of NEM 3.0 has reduced the financial incentives for solar installations. The company is also focusing on commercial sales to mitigate the impact of these regulatory changes.

As of June 30, 2025, SolarMax reported total assets of $38.2 million, a slight decrease from $38.6 million at the end of 2024. The company’s cash and cash equivalents increased to $1.9 million from $786,000, while total liabilities decreased marginally to $53.4 million. The company continues to face challenges, including a working capital deficit of approximately $18.3 million and an accumulated deficit of $106.8 million, raising concerns about its ability to continue as a going concern. Management is actively seeking to negotiate the exchange of a significant portion of its current debt for convertible notes to improve its financial position.

Looking ahead, SolarMax is optimistic about its future prospects, particularly with the recent engineering, procurement, and construction agreement for a battery energy storage system expected to generate approximately $127.3 million in revenue. The company is also exploring additional commercial projects and expanding its dealer network to enhance its market presence and drive growth in the coming years.