Zeo Energy Corp. Reports Q2 2026 Financial Results with $16.2M Revenue and $2.7M Net Loss

Zeo Energy Corp. reported its financial results for the second quarter of 2026, revealing a net revenue of $16.2 million, a decrease of 10.7% from $18.1 million in the same period last year. For the first half of 2026, total net revenues increased by 9.2% to $29.4 million, compared to $26.9 million in the first half of 2025. The company attributed the revenue growth primarily to increased solar system installation activity, although this was partially offset by a decline in related party revenue from Solar Leasing I, LLC.

The company's operating expenses for the second quarter totaled $19.2 million, down 8.6% from $21.0 million in the prior year. Notably, costs of revenues rose by 17.3% to $8.5 million, driven by higher labor and material costs. However, depreciation and amortization expenses saw a significant decline of 92.2%, falling to $248,171, primarily due to the full amortization of customer-related intangible assets acquired in previous transactions. General and administrative expenses increased by 22.2% to $5.9 million, reflecting higher bad debt expenses and professional fees.

Zeo Energy reported a net loss of $2.7 million for the second quarter, a slight improvement from a loss of $2.9 million in the same quarter of 2025. For the first half of 2026, the net loss was $7.4 million, significantly reduced from $16.0 million in the prior year. The company’s loss per Class A common share was $(0.07) for the second quarter, compared to $(0.11) in the same period last year. The weighted average shares outstanding increased to 35.2 million from 22.1 million year-over-year, reflecting the issuance of new shares.

In terms of strategic developments, Zeo Energy has been focusing on expanding its customer base and enhancing operational efficiency. The company has plans to increase its sales agents and improve productivity through the implementation of new customer relationship management software. Additionally, Zeo has entered into a Note Purchase Agreement with White Lion Capital, allowing for the issuance of up to $7.5 million in convertible promissory notes, with the first closing generating $1.5 million in net proceeds.

Looking ahead, Zeo Energy aims to achieve positive cash flow from operations and is exploring various avenues for capital, including the potential sale of shares under its equity line of credit with White Lion. The company is also working to address short-term cash needs and is optimistic about its operational plans to increase revenue and improve financial performance in the coming quarters.