Zeo Energy Corp. Reports $69.3 Million in Net Revenues for 2025, Net Loss Increases to $19.6 Million

Zeo Energy Corp. reported net revenues of $69.3 million for the year ended December 31, 2025, a decrease of $3.9 million or 5.3% compared to $73.2 million for the year ended December 31, 2024. The decrease in revenue was primarily attributed to a decline in installations, partially offset by a new pricing agreement with a related-party entity, Solar Leasing I, LLC. The company reported a gross profit of $30.2 million, with a gross margin of 43.5%, compared to a gross profit of $31.5 million and a gross margin of 43.0% in the previous year. The improvement in gross margin reflects lower per-installation costs in 2025 compared to 2024.

The company's loss from operations increased to $20.5 million in 2025 from $10.8 million in 2024, and the net loss increased to $19.6 million from $9.9 million. This increase in net loss was primarily due to higher depreciation and amortization expenses, increased sales and marketing expenses, and higher general and administrative expenses. Adjusted EBITDA was negative $3.3 million, compared to positive $4.0 million in the prior year, and the Adjusted EBITDA margin was -4.8% compared to 5.4% in the prior year.

Key operational developments included the acquisition of Heliogen, Inc. in August 2025, which was accounted for as a business combination, and the conversion of a $2.5 million promissory note into 1,851,851 shares of Class A common stock in October 2025. The company also entered into a Common Stock Purchase Agreement with White Lion Capital LLC in January 2026, providing the company with the right, but not the obligation, to sell up to $30.0 million in newly issued shares of Class A Common Stock. As of December 31, 2025, the company had approximately 190 full-time employees.

The company identified a material weakness in its internal controls over financial reporting related to ineffective controls over period-end financial disclosure and reporting processes. Management is in the early stages of designing and implementing a plan to remediate this material weakness. The company's strategy includes expanding operations into additional geographic markets, increasing capacity for efficient growth by investing in people and systems, growing the external dealer sales channel, expanding customer options for buying affordable solar energy, and diversifying operations through acquisitions. The company's ability to execute its growth strategy depends on the availability of third-party financing arrangements for customers' purchases and is affected by general economic conditions and other factors.