Revenue growth remains highly erratic, oscillating between a 50.1% expansion in 2026Q1 and a 56.4% contraction in 2025Q1, while operating margins reached a trough of -153.8% in 2025Q1.
| Sales/Revenue | 73.75M | 69.35M | 73.24M | 109.69M | 88.96M | 24.59M |
| Revenue Growth % | 19.34% | -5.32% | -33.23% | 23.3% | 261.79% | - |
| Cost of Goods Sold | 34.94M | 31.07M | 38.02M | 59.44M | 71.21M | 14.1M |
| COGS % of Revenue | - | 44.8% | 51.91% | 54.19% | 80.04% | 57.33% |
| Gross Profit | 38.81M | 38.28M | 35.22M | 50.25M | 17.75M | 10.49M |
| Gross Margin % | 52.63% | 55.2% | 48.09% | 45.81% | 19.96% | 42.67% |
| Gross Profit Growth % | - | 8.69% | -29.91% | 183.05% | 69.2% | - |
| Operating Expenses | 50.6M | 58.82M | 46.05M | 45.12M | 9.11M | 3.43M |
| OpEx % of Revenue | - | 84.81% | 62.88% | 41.13% | 10.24% | 13.95% |
| Selling, General & Admin | 46.92M | 50.24M | 41.22M | 43.27M | 7.4M | 3.05M |
| SG&A % of Revenue | - | 72.44% | 56.27% | 39.45% | 8.32% | 12.41% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - |
| Other Operating Expenses | 1.5M | 8.58M | 4.84M | 1.84M | 1.71M | 379.82K |
| Operating Income | -11.79M | -20.53M | -10.83M | 5.14M | 8.65M | 7.06M |
| Operating Margin % | -15.98% | -29.61% | -14.79% | 4.69% | 9.72% | 28.72% |
| Operating Income Growth % | - | -89.59% | -310.72% | -40.56% | 22.42% | - |
| EBITDA | -7.03M | -11.96M | -5.99M | 6.98M | 10.35M | 7.44M |
| EBITDA Margin % | -9.53% | -17.24% | -8.18% | 6.36% | 11.64% | 30.27% |
| EBITDA Growth % | 32.69% | -99.49% | -185.85% | -32.56% | 39.09% | - |
| D&A (Non-Cash Add-back) | 4.76M | 8.58M | 4.84M | 1.84M | 1.71M | 379.82K |
| EBIT | -11.17M | -19.21M | -10.53M | 4.96M | 8.72M | 7.09M |
| Net Interest Income | -136.07K | -155.49K | -333.54K | 124K | -51.3K | 0 |
| Interest Income | 29.99K | 0 | 0 | 124K | 0 | 0 |
| Interest Expense | 166.06K | 155.49K | 333.54K | 0 | 51.3K | 0 |
| Other Income/Expense | 432.3K | 1.17M | -31.39K | -294.26K | 20K | 28.4K |
| Pretax Income | -11.35M | -19.37M | -10.86M | 4.85M | 8.67M | 7.09M |
| Pretax Margin % | -15.39% | -27.93% | -14.83% | 4.42% | 9.74% | 28.84% |
| Income Tax | -351.98K | 263.65K | -988.8K | 0 | 0 | 0 |
| Effective Tax Rate % | 3.1% | -1.36% | 9.1% | 0% | 0% | 0% |
| Net Income | -11.16M | -14.01M | -2.67M | 4.85M | 8.67M | 7.09M |
| Net Margin % | -15.13% | -20.2% | -3.64% | 4.42% | 9.74% | 28.84% |
| Net Income Growth % | -58.22% | -424.89% | -155.08% | -44.09% | 22.21% | - |
| Net Income (Continuing) | -11M | -19.63M | -9.87M | 4.85M | 8.67M | 7.09M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 29.75M | 24.94M | 131.82M | 0 | 0 | 0 |
| EPS (Diluted) | -0.45 | -0.56 | -0.25 | -0.28 | 0.42 | 0.27 |
| EPS Growth % | 22.56% | -124% | 10.71% | -166.67% | 55.56% | - |
| EPS (Basic) | - | -0.56 | -0.25 | -0.28 | 0.42 | 0.27 |
| Diluted Shares Outstanding | 24.94M | 24.94M | 10.89M | 10.72M | 34.5M | 34.5M |
| Basic Shares Outstanding | 24.94M | 24.94M | 10.89M | 10.72M | 34.5M | 34.5M |
| Dividend Payout Ratio | - | - | - | - | 94.69% | 104.93% |
Liquidity and capital runway
According to the provided quarterly income statements, ZEO's revenue growth has exhibited significant volatility, oscillating between a 50.1% expansion in 2026Q1 and a 56.4% contraction in 2025Q1, suggesting that the company's project-based model lacks the predictable demand profile required for consistent top-line scaling in the Florida market.
The erratic revenue performance appears to reflect the inherent challenges of a project-based residential solar business that is highly sensitive to seasonal installation cycles and external financing conditions. Investors should monitor whether the recent 50.1% growth in 2026Q1 represents a sustainable recovery or merely a lumpy recognition of delayed projects from prior periods.
As reported in financial statements, ZEO maintains a notably high gross margin, peaking at 59.8% in 2025Q2, which suggests that the company's vertical integration strategy successfully captures significant value that would otherwise be lost to third-party dealers in a more fragmented installation model.
While these gross margins appear superior to national peers like Sunrun, they have not yet translated into operating profitability, indicating that the cost of maintaining this integrated infrastructure is substantial. The wide variance in gross margin, which dropped to 34.3% in 2026Q1, warrants further investigation into whether the company is sacrificing pricing power to maintain volume during periods of weak demand.
Based on ZEO's reported figures, the company continues to struggle with negative operating leverage, as evidenced by operating margins that reached a low of -153.8% in 2025Q1, indicating that fixed overhead costs are currently far too high to be supported by the existing revenue base.
The inability to scale operating income alongside gross profit suggests that the company's sales and administrative expenses are not yet optimized for its current installation volume. Without a significant increase in project density to amortize these fixed costs, the company may remain trapped in a cycle of persistent operating losses.
Analysis of the income statement reveals that SG&A expenses frequently exceed gross profit, such as in 2026Q1 where SG&A of $9.3M dwarfed the $4.5M gross profit, highlighting a structural cost discipline issue that threatens the company's long-term viability as a public entity.
The high level of SG&A relative to revenue suggests that the company is incurring significant customer acquisition and administrative costs that are not being recovered through its current project margins. Management's ability to rationalize these expenses will be a critical factor in determining whether the company can reach a break-even point before its cash reserves are exhausted.
Financial data suggests that ZEO's reliance on a localized, labor-intensive model may be fundamentally unsustainable, as the company has failed to achieve consistent profitability despite federal solar incentives, raising concerns about its ability to compete against larger, more capital-efficient national players in the long term.
Short-sellers would likely focus on the company's thin cash position and the persistent gap between gross profit and operating expenses as evidence of a failing business model. The lack of recurring revenue streams leaves the company highly exposed to any downturn in the Florida residential solar market, which could lead to a rapid depletion of remaining liquidity.
Quick answers to the most common questions about buying ZEO stock.
For fiscal year 2025, Zeo Energy Corp. (ZEO) reported total revenue of $69.3M. This represents a 182.0% increase compared to $24.6M in 2021.
Zeo Energy Corp. (ZEO) reported a net loss of $14.0M for the fiscal year ending 2025.
Zeo Energy Corp. (ZEO) reported an operating income of $-20.5M, resulting in an operating profit margin of -29.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Zeo Energy Corp. (ZEO) generated $38.3M in gross profit for the year, representing a gross profit margin of 55.2%. This demonstrates the company's core pricing power and production efficiency.