Revenue accelerated 47.4% year-over-year to $163.4M in 2026Q2, but gross margin compressed to 30.3% from 37.2% a year earlier, and operating margin fell to 11.5% from 14.4%, reflecting cost pressures from the facility ramp.
Shoals Technologies Group, Inc. (SHLS) annual income statement — 8-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 |
|---|
| Sales/Revenue | 647.56M | 475.33M | 399.21M | 488.94M | 326.94M | 213.21M | 175.52M | 144.5M | 103.75M |
| Revenue Growth % | 49.21% | 19.07% | -18.35% | 49.55% | 53.34% | 21.48% | 21.47% | 39.27% | - |
| Cost of Goods Sold | 447.72M | 308.82M | 257.19M | 320.63M | 195.63M | 130.57M | 108.97M | 100.28M | 75.58M |
| COGS % of Revenue | - | 64.97% | 64.43% | 65.58% | 59.84% | 61.24% | 62.09% | 69.4% | 72.85% |
| Gross Profit | 199.84M | 166.51M | 142.02M | 168.3M | 131.31M | 82.64M | 66.55M | 44.21M | 28.17M |
| Gross Margin % | 30.86% | 35.03% | 35.57% | 34.42% | 40.16% | 38.76% | 37.91% | 30.6% | 27.15% |
| Gross Profit Growth % | - | 17.25% | -15.62% | 28.17% | 58.89% | 24.19% | 50.52% | 56.96% | - |
| Operating Expenses | 127.03M | 110.12M | 90.84M | 89.27M | 64.98M | 46.41M | 29.27M | 17.28M | 17.08M |
| OpEx % of Revenue | - | 23.17% | 22.76% | 18.26% | 19.88% | 21.77% | 16.68% | 11.96% | 16.46% |
| Selling, General & Admin | 124.66M | 101.52M | 82.25M | 80.72M | 55.91M | 37.89M | 21.01M | 9.06M | 8.9M |
| SG&A % of Revenue | - | 21.36% | 20.6% | 16.51% | 17.1% | 17.77% | 11.97% | 6.27% | 8.58% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2M | 8.6M | 8.59M | 8.55M | 9.07M | 8.52M | 8.26M | 8.22M | 8.18M |
| Operating Income | 72.81M | 56.38M | 51.17M | 79.03M | 66.33M | 36.23M | 37.28M | 26.93M | 11.09M |
| Operating Margin % | 11.24% | 11.86% | 12.82% | 16.16% | 20.29% | 16.99% | 21.24% | 18.64% | 10.69% |
| Operating Income Growth % | - | 10.19% | -35.25% | 19.15% | 83.07% | -2.8% | 38.42% | 142.9% | - |
| EBITDA | 90.44M | 70.2M | 63.8M | 89.56M | 76.84M | 46.28M | 46.68M | 36.09M | 20.08M |
| EBITDA Margin % | 13.97% | 14.77% | 15.98% | 18.32% | 23.5% | 21.71% | 26.6% | 24.98% | 19.35% |
| EBITDA Growth % | 31.57% | 10.04% | -28.77% | 16.56% | 66.01% | -0.85% | 29.34% | 79.77% | - |
| D&A (Non-Cash Add-back) | 17.64M | 13.82M | 12.63M | 10.53M | 10.51M | 10.05M | 9.4M | 9.16M | 8.99M |
| EBIT | 65.64M | 58.51M | 51.69M | 79.03M | 170.54M | 18.58M | 37.28M | 26.93M | 11.09M |
| Net Interest Income | -12.38M | -9.69M | -13.31M | -24.1M | -18.54M | -14.55M | -3.51M | -1.79M | -2.44M |
| Interest Income | 400K | 305K | 518K | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 12.78M | 9.99M | 13.83M | 24.1M | 18.54M | 14.55M | 3.51M | 1.79M | 2.44M |
| Other Income/Expense | -19.95M | -7.87M | -13.31M | -24.1M | 85.67M | -32.2M | -3.51M | -1.79M | -2.44M |
| Pretax Income | 52.86M | 48.52M | 37.86M | 54.94M | 152M | 4.03M | 33.77M | 25.14M | 8.65M |
| Pretax Margin % | 8.16% | 10.21% | 9.48% | 11.24% | 46.49% | 1.89% | 19.24% | 17.4% | 8.33% |
| Income Tax | 15.03M | 14.94M | 13.74M | 12.27M | 8.99M | 86K | 0 | 0 | 0 |
| Effective Tax Rate % | 28.43% | 30.8% | 36.28% | 22.34% | 5.91% | 2.13% | 0% | 0% | 0% |
| Net Income | 37.83M | 33.57M | 24.13M | 39.97M | 127.61M | 2.35M | 33.77M | 25.14M | 8.65M |
| Net Margin % | 5.84% | 7.06% | 6.04% | 8.18% | 39.03% | 1.1% | 19.24% | 17.4% | 8.33% |
| Net Income Growth % | 13.72% | 39.16% | -39.64% | -68.68% | 5334.88% | -93.05% | 34.3% | 190.77% | - |
| Net Income (Continuing) | 37.83M | 33.57M | 24.13M | 42.66M | 143.01M | 3.94M | 33.77M | 25.14M | 8.65M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 9.62M | -10.05M | 0 | 0 | 0 |
| EPS (Diluted) | 0.22 | 0.20 | 0.14 | 0.24 | 0.85 | 0.02 | 0.21 | 0.15 | 0.05 |
| EPS Growth % | 14.25% | 42.86% | -41.67% | -71.76% | 3947.62% | -90% | 40% | 189.02% | - |
| EPS (Basic) | - | 0.20 | 0.14 | 0.24 | 1.11 | 0.02 | 0.21 | 0.15 | 0.05 |
| Diluted Shares Outstanding | 170.13M | 168.38M | 168.72M | 164.5M | 167.63M | 112.05M | 160.28M | 166.59M | 166.59M |
| Basic Shares Outstanding | 168.38M | 167.26M | 168.57M | 164.16M | 114.5M | 112.05M | 160.28M | 160.28M | 160.28M |
| Dividend Payout Ratio | - | - | - | - | - | - | 1113.68% | 55.64% | 123.29% |
Quick answers to the most common questions about buying SHLS stock.
For fiscal year 2025, Shoals Technologies Group, Inc. (SHLS) reported total revenue of $475.3M. This represents a 358.2% increase compared to $103.8M in 2018.
Shoals Technologies Group, Inc. (SHLS) is profitable, generating $33.6M in net income for the fiscal year ending 2025 with a net profit margin of 7.1%.
Shoals Technologies Group, Inc. (SHLS) reported an operating income of $56.4M, resulting in an operating profit margin of 11.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Shoals Technologies Group, Inc. (SHLS) generated $166.5M in gross profit for the year, representing a gross profit margin of 35.0%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Margin compression from facility ramp
Metrics are mathematically derived from official filings.
Revenue Rebound Accelerates
Revenue surged 47.4% year-over-year to $163.4M in 2026Q2, per recent financial statements, marking the third consecutive quarter of accelerating growth after a trough in early 2025.
The growth trajectory has shifted decisively upward, with revenue climbing from $80.4M in 2025Q1 to $163.4M in 2026Q2, a 103% increase over five quarters. This acceleration appears driven by robust demand for utility-scale solar EBOS, supported by record backlog of $801.4M. However, the lumpy project-based nature of revenue suggests this pace may not be linear, and investors should monitor the conversion of backlog to revenue.
Gross Margin Compression Persists
Gross margin fell to 30.3% in 2026Q2 from 37.2% a year earlier, as reported in SEC filings, indicating cost pressures that may be tied to the new facility ramp.
The structural gross margin has deteriorated from the 40%+ levels seen in early 2024 to the low 30s, a decline of nearly 1000 basis points. This suggests that pricing power may be weakening or that input costs, particularly copper and aluminum, are not being fully passed through. The margin compression appears more than transitory, as it has persisted for several quarters, warranting close monitoring of management's ability to restore profitability.
Operating Leverage Elusive Amid Cost Hikes
Operating income margin contracted to 11.5% in 2026Q2 from 14.4% in 2025Q2, per income statement data, as SG&A expenses grew faster than gross profit.
Despite a 47% revenue increase, operating income only grew 17%, indicating that operating leverage is currently negative. SG&A expenses rose to $28.5M from $23.1M, a 23% increase, while gross profit grew only 20%. This suggests that overhead costs are not scaling efficiently, possibly due to investments in the new facility and legal expenses. If revenue growth moderates, margin pressure could intensify.
Earnings Quality Clouded by One-Time Items
Net income of $12.1M in 2026Q2 includes $4.4M in stock-based compensation, as per financial statements, representing 36% of net income, which may overstate underlying profitability.
The quality of reported earnings appears moderate, with SBC consuming a significant portion of net income. Additionally, the 2026Q1 net loss of $297K and the 2025Q1 loss suggest volatility that may be driven by non-operating items or tax effects. Investors should adjust for SBC and potential warranty reserves to assess true cash earnings power.
Cost Pressures from Facility Ramp
COGS rose to $113.8M in 2026Q2, up 63% year-over-year, according to reported figures, outpacing revenue growth and compressing gross margin to 30.3%.
The cost structure is heavily weighted toward variable inputs, and the recent spike in COGS suggests inefficiencies during the transition to the new Portland facility. While management indicates productivity improvements are progressing, the pace of margin recovery is uncertain. If cost overruns persist, they could erode the company's competitive position versus peers like Array Technologies, which reported a 23.2% gross margin.
2025Q1 Marks Trough and Turnaround
Revenue bottomed at $80.4M in 2025Q1 with a net loss, as per income statement data, before a sharp recovery to $163.4M by 2026Q2, signaling a demand inflection.
The period from 2025Q1 to 2026Q2 represents a clear operational inflection, driven by a rebound in solar project starts and the completion of the facility move. However, the margin profile has not fully recovered, indicating that the company is trading volume for profitability. The lasting impact of this inflection will depend on whether management can achieve the promised cost efficiencies and restore gross margins to historical levels.
What Could Invalidate the Base Case
Despite record backlog, the 2026Q2 EPS miss of $0.07 versus $0.12 consensus, as reported in recent filings, suggests margin pressures may be structural, not transitory.
Short-sellers could argue that the gross margin decline from 40%+ to 30.3% reflects a loss of pricing power rather than temporary facility costs, especially with rising copper prices and potential warranty liabilities. The company's reliance on US solar projects exposes it to policy and interconnection delays, which could slow backlog conversion. If the EV charging segment fails to scale, the growth narrative may weaken, and the stock could re-rate to construction-cyclical multiples.