NEW PORT RICHEY, Fla., April 01, 2026 (GLOBE NEWSWIRE) -- Zeo Energy Corp. (Nasdaq: ZEO) (“Zeo,” “Zeo Energy,” or the “Company”), a provider of residential solar and commercial long-duration energy-storage solutions, today reported financial results for the fourth quarter and twelve months ended December 31, 2025.
Recent Financial and Operational Highlights
- Fourth quarter revenue was $18.6 million, in line with revenue from the prior year period.
- Gross margin increased by 50 basis points to 43.5%, up from 43.0% in the prior year.
- On February 18, 2026, Zeo Energy signed a memorandum of understanding (“MOU”) with Creekstone Energy to develop approximately 280 megawatt (MW) of baseload energy generation and long-duration energy storage to support Creekstone's data center under construction in Millard County, Utah.
Management Commentary
“In 2025, we delivered consistent revenue in a challenging operating environment while also managing our core operating costs,” said Zeo Energy Corp. CEO Tim Bridgewater. “Zeo remains well positioned to capitalize on the rapidly changing environment in residential solar sector, particularly given the low overall penetration rates in some of the most attractive markets. Looking ahead to 2026, we expect our core residential solar business to grow materially, with the goal of growth in line with what we experienced in the third quarter of 2025 before we encountered weather-related delays at the end of this past year. We also expect our Adjusted EBITDA margins to return to the mid-to-high single digits. At the same time, we are continuing to expand into favorable new geographic markets, like Virginia, and attract top sales talent that values our competitive differentiation, both of which have us set up well for future growth in 2026.”
“Separately, our 2025 acquisition of Heliogen positions us to expand beyond residential applications into the large commercial market. Our Heliogen efforts have begun to bear fruit as evidenced by the MOU we signed last month with Creekstone Energy to explore the ability of Zeo to support the power needs of Creekstone’s gigasite facility, which is intended for cloud computing and AI applications. We are engaged in several other discussions with potential data center and commercial customers seeking large-scale, behind-the-meter energy solutions utilizing Heliogen’s photovoltaic (PV) solar and energy storage capabilities. Further, we are continuing to explore complementary acquisitions such as Heliogen in 2026.”
Fourth Quarter 2025 Financial Results
Results compare the fourth quarter of 2025 ending December 31, 2025, to the fourth quarter of 2024 ending December 31, 2024.
- Total revenue was $18.6 million in Q4 2025, in line with the Q4 2024 period. Harsher weather in key markets had an impact on our ability to install solar products during Q4 2025.
- Gross profit decreased to $2.1 million (11.3% of total revenue) in Q4 2025 from $8.3 million (44.6% of total revenue) in Q4 2024 due primarily to an increase in labor expense and the cost of domestic content materials used to meet tax incentive criteria for our customers.
- Net loss for Q4 2025 was $1.8 million compared to a net loss of $1.1 million in the comparable 2024 period. The decrease was driven by the decrease in gross profit and other costs associated with servicing our financing partners.
- Adjusted EBITDA, a non-GAAP measurement of operating performance reconciled below, decreased to $(1.4) million in Q4 2025 from approximately $3.9 million in the comparable 2024 period. The change was primarily related to the increased costs associated with materials and labor.
Full Year 2025 Financial Results
Results compare the twelve months ended December 31, 2025, to the nine months ended December 31, 2024.
- Total revenue was $69.3 million, a 5.0% decrease from $73.2 million in 2024. The change was primarily related to a challenging residential sales environment with changes in tax policy and financing options available to homeowners. Zeo carried additional expenses in 2025 compared to 2024 due to the cost of servicing acquired Lumio customers and leases, and higher overall labor costs. Zeo is also carrying the expense of personnel acquired in the Heliogen acquisition. The Company believes the above costs will be better absorbed in 2026 as it realizes the benefit from the increased revenues and the centralization of our operations in key markets.
- Gross profit decreased to $30.2 million (43.6% of total revenue) from $31.5 million (43.0% of total revenue) in 2024. The decrease in gross profit margin was driven primarily by an improvement in cost of goods sold, mainly driven by the impact of the costs associated with the deferred revenue in 2023 being deferred to 2024. There were no such costs in 2025.
- Net loss was $19.6 million compared to $9.9 million in 2024. The decrease is primarily due to $8 million in amortization expense associated with the November 2024 Lumio acquisition and a decrease in revenue. Zeo incurred higher incentive stock compensation, higher costs associated with the acquisitions of Lumio and Heliogen, and the bankruptcy of a finance partner which resulted in $3.2 million of one-time bad debt expense.
- Adjusted EBITDA, a non-GAAP measurement of operating performance reconciled below, decreased to $(3.3) million from $4.0 million in the comparable 2024 period. The change was primarily related to lower revenues and ($3.2) million of bad debt associated with the bankruptcy of a customer.
Non-GAAP Financial Measures
Adjusted EBITDA
Zeo Energy defines Adjusted EBITDA, a non-GAAP financial measure, as net income (loss) before interest and other expenses, net, income tax expense, and depreciation and amortization, as adjusted to exclude stock-based compensation. Zeo utilizes Adjusted EBITDA as an internal performance measure in the management of the Company’s operations because the Company believes the exclusion of these non-cash and non-recurring charges allows for a more relevant comparison of Zeo’s results of operations to other companies in the industry. Adjusted EBITDA should not be viewed as a substitute for net loss calculated in accordance with GAAP, and other companies may define Adjusted EBITDA differently.
The following table provides a reconciliation of net income (loss) to Adjusted EBITDA for the periods presented:
Three Months EndedDecember 31, Twelve Months Ended
December 31, 2025 2024 2025 2024 Net loss $(1,810,086) $(1,135,513) $(19,629,633) $(9,872,358)Adjustments: Other income, net (62,919) (329,796) (363,918) (141,467)Interest expense 25,483 39,282 155,490 333,539 Gain on disposal of property and equipment - (91,684) - (91,684)Gain on change in fair value of warrant liabilities (266,340) 759,000 (957,720) (69,000)Income tax provision (benefit) (121,609) (728,438) 263,649 (963,790)Stock-based compensation 429,609 849,430 6,498,623 7,951,248 Acquisition-related expenses 90,343 703,053 2,116,156 1,971,700 Depreciation and amortization 250,874 3,423,464 8,576,502 4,836,538 Adjusted EBITDA $(1,464,645) $3,488,798 $(3,340,851) $3,954,726 Net loss margin (9.7)% (6.1)% (28.3)% (13.5)%Adjusted EBITDA margin (7.6)% 20.7% (4.8)% 5.4%
Adjusted EBITDA Margin
Zeo Energy defines Adjusted EBITDA margin, a non-GAAP financial measure, expressed as a percentage, as the ratio of Adjusted EBITDA to revenue, net. Adjusted EBITDA margin measures net income (loss) before interest and other expenses, net, income tax expense, depreciation and amortization, as adjusted to exclude stock-based compensation and is expressed as a percentage of revenue. In the table above, Adjusted EBITDA is reconciled to the most comparable GAAP measure, net income (loss). Zeo utilizes Adjusted EBITDA margin as an internal performance measure in the management of the Company’s operations because the Company believes the exclusion of these non-cash and non-recurring charges allows for a more relevant comparison of the Company’s results of operations to other companies in Zeo’s industry.
The following table sets forth Zeo’s calculations of Adjusted EBITDA margin for the periods presented:
Three Months EndedDecember 31, Twelve Months Ended
December 31, 2025 2024 2025 2024 Net loss $(1,810,086) $(1,135,513) $(19,629,633) $(9,872,358)Adjusted EBITDA $(1,415,893) $3,865,456 $(3,340,851) $3,954,726 Adjusted EBITDA margin (7.6)% 20.7% (4.8)% 5.4%
For more information, please visit the Zeo Energy Corp. investor relations website at investors.zeoenergy.com.
About Zeo Energy Corp.
Zeo Energy Corp. is a diversified clean energy company providing residential, commercial, industrial, and utility-scale solutions that cut costs and carbon emissions. Based in Florida, Zeo operates Sunergy, a residential solar, distributed energy, and efficiency solutions business, in high-growth markets with limited competitive saturation. It also operates Heliogen, Inc., a long-duration energy generation and storage business designed to deliver renewable power for high-demand applications such as AI, data centers, and other energy-intensive industries. With its vertically integrated approach, Zeo helps customers with a cost-effective transition to 24/7 clean energy. For more information on Zeo Energy Corp., please visit www.zeoenergy.com.
Cautionary Note Regarding Forward-Looking Statements
This news release contains certain forward-looking statements within the meaning of section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Exchange Act of 1934, as amended, that are based on beliefs and assumptions and on information currently available to the Company. Such statements may include, but are not limited to, statements that refer to projections, forecasts, or other characterizations of future events or circumstances, including any underlying assumptions. The words “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will,” and similar references to future periods may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements may include, for example, statements about the future financial performance of the Company (including, without limitation, the potential for increased revenue from the Company’s core residential solar business); the ability to effectively consolidate the assets of Lumio and Heliogen and produce the improved results of operations; changes in the Company’s strategy, future operations, financial position, estimated revenues and losses, potential acquisitions, projected costs, prospects, the ability to raise additional funds, and other plans and objectives of management. These and other forward-looking statements are based on information available as of the date of this news release, and current expectations, forecasts, and assumptions, and involve numerous and significant assumptions, judgments, risks, and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing the Company’s views as of any subsequent date, and the Company does not undertake any obligation to update such forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities laws. You should not place undue reliance on these forward-looking statements. As a result of known and unknown risks and uncertainties, the Company’s actual results or performance may be materially different from those expressed or implied by these forward-looking statements. Some factors that could cause actual results to differ include: (i) the outcome of any legal proceedings that may be instituted against the Company or others; (ii) the Company’s success in retaining or recruiting, or changes required in, its officers, key employees, or directors; (iii) the Company’s ability to maintain the listing of its common stock and warrants on Nasdaq; (iv) limited liquidity and trading of the Company’s securities; (v) geopolitical risk impacting energy costs or markets generally, and changes in applicable laws or regulations, including tariffs or trade restrictions; (vi) the possibility that the Company may be adversely affected by other international, national or local economic, business, and/or competitive factors; (vii) operational risks; (viii) litigation and regulatory enforcement risks, including the diversion of management time and attention and the additional costs and demands on the Company’s resources; (ix) the Company’s ability to effectively consolidate the assets of Lumio and Heliogen and produce the expected results; and (x) other risks and uncertainties, including those included under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”) for the year ended December 31, 2025 and in its subsequent periodic reports and other filings with the SEC.
Considering the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation, guarantee or warranty by the Company, its respective directors, officers or employees or any other person that the Company will achieve its objectives and plans in any specified time frame, or at all. The forward-looking statements in this news release represent the views of the Company as of the date of this news release. Subsequent events and developments may cause that view to change. However, while the Company may elect to update these forward-looking statements at some point in the future, there is no current intention to do so, except to the extent required by applicable law. You should, therefore, not rely on these forward-looking statements as representing the views of the Company as of any date after the date of this news release.
Zeo Energy Corp. Contacts
For Investors:
Tom Colton and Greg Bradbury
Gateway Group
ZEO@gateway-grp.com
For Media:
Zach Kadletz
Gateway Group
ZEO@gateway-grp.com
-Financial Tables to Follow-
ZEO ENERGY CORP.CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)
December 31, December 31, 2025 2024 ASSETS (Unaudited) Current Assets Cash and cash equivalents $6,137,939 $5,634,115 Accounts receivable, net 8,158,909 8,994,881 Accounts receivable – related parties 611,807 191,662 Inventories 852,179 872,470 Contract assets 2,598,623 1,089,051 Contract assets – related parties - - Prepaid expenses and other current assets 4,192,590 2,106,496 Total Current Assets 22,552,047 18,888,675 Other assets 92,712 75,935 Interest receivable – related parties 153,485 - Deferred tax asset, net - 238,491 Property and equipment, net 2,830,490 2,475,963 Operating lease right-of-use assets 897,476 1,268,139 Finance lease right-of-use assets 310,539 447,012 Related party note receivable 3,000,000 3,000,000 Intangibles, net - 7,571,156 Goodwill 27,091,695 27,010,745 TOTAL ASSETS $56,928,444 $60,976,116 LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND STOCKHOLDERS’ DEFICIT Current Liabilities Accounts payable $3,769,078 $2,780,885 Accrued expenses and other current liabilities 2,421,237 5,181,087 Accrued expenses and other current liabilities – related parties 49,269 3,359,101 Contract liabilities 1,301,393 201,607 Contract liabilities – related parties - 2,000 Current portion of operating lease obligations 684,819 583,429 Current portion of finance lease obligations 142,095 130,464 Current portion of long-term debt 23,526 291,036 Convertible promissory note, net - 2,440,000 Total Current Liabilities 8,391,417 14,969,609 Operating lease obligations, net of current portion 304,295 799,385 Finance lease obligations, net of current portion 208,865 348,807 Long-term debt, net of current portion 55,586 496,623 Warrant liabilities 491,280 1,449,000 TOTAL LIABILITIES 9,451,443 18,063,424 Redeemable Non-Controlling Interests Convertible preferred units, 1,500,000 units issued and outstanding as of December 31, 2025 and December 31, 2024 17,207,469 16,130,871 Class B Units, 22,880,000 and 33,730,000 units issued and outstanding as of December 31, 2025 and 2024, respectively 24,939,200 115,693,900 Stockholders’ Deficit Class V common stock, $0.0001 par value, 100,000,000 authorized shares; 24,480,000 and 35,230,000 shares issued and outstanding as of December 31, 2025 and 2024, respectively 2,438 3,523 Class A common stock, $0.0001 par value, 300,000,000 authorized shares; 33,180,843 and 13,252,964 shares issued and outstanding as of December 31, 2025 and 2024, respectively 3,318 1,326 Additional paid-in capital 63,394,456 14,523,963 Accumulated other comprehensive loss (4,895) - Accumulated deficit (58,064,985) (103,440,891)TOTAL STOCKHOLDERS’ DEFICIT 5,330,332 (88,912,079)TOTAL LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND STOCKHOLDERS’ DEFICIT $56,928,444 $60,976,116
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended
December 31, Twelve Months Ended
December 31, 2025 2024 2025 2024 Revenues Revenue, net $18,135,800 14,630,831 51,208,067 51,088,065 Related party revenue, net 432,065 4,016,919 18,141,871 22,156,018 Total Net Revenues 18,567,865 18,647,750 69,349,938 73,244,083 Operating Expenses Cost of revenues 8,938,645 7,261,941 31,066,477 38,067,096 Depreciation and amortization 250,874 3,423,464 8,576,502 4,836,538 Sales and marketing 5,343,888 3,408,698 22,698,405 19,587,073 General and administrative 6,221,177 5,664,138 27,540,686 21,558,136 Total Operating Expenses 20,754,584 19,758,241 89,882,070 84,048,843 LOSS FROM OPERATIONS (2,186,719) (1,110,491) (20,532,132) (10,804,760) Other Income (Expense) Other income 62,919 (46,862) 363,918 141,467 Interest expense (25,483) (39,282) (155,490) (333,539)Gain on disposal of property and equipment - 91,684 - 91,684 Gain on change in fair value of warrant liabilities 266,340 (759,000) 957,720 69,000 Total Other Income 303,776 (753,460) 1,166,148 (31,388) NET LOSS FROM OPERATIONS BEFORE INCOME TAXES (1,882,943) (1,863,951) (19,365,984) (10,836,148)Income tax benefit (provision) 121,609 728,438 (263,649) 963,790 NET LOSS $(1,761,334) $(1,135,513) $(19,629,633) $(9,872,358) Less: net loss attributable to Sunergy Renewables LLC prior to the business combination - - - (523,681)NET LOSS SUBSEQUENT TO THE BUSINESS COMBINATION (1,761,334) (1,135,513) (19,629,633) (9,348,677) Less: Net income (loss) attributable to redeemable non-controlling interests 245,299 (700,167) (5,620,879) (6,679,788)NET LOSS ATTRIBUTABLE TO CLASS A COMMON STOCKHOLDERS $(2,006,633) $(435,346) $(14,008,754) $(2,668,889) LOSS PER CLASS A COMMON SHARE – BASIC AND DILUTED $(0.06) $(0.04) $(0.56) $(0.48)WEIGHTED-AVERAGE CLASS A COMMON SHARES OUTSTANDING – BASIC AND DILUTED 31,522,132 11,057,312 24,936,865 5,546,925 COMPREHENSIVE LOSS Foreign currency translation adjustments - - 4,895 - COMPREHENSIVE LOSS $(2,006,633) $(435,346) $(14,013,649) $(2,668,889)
ZEO ENERGY CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
December 31, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES Net loss $(19,629,633) $(9,872,358)Adjustment to reconcile net loss to cash used in operating activities Depreciation and amortization 8,576,502 4,836,538 Amortization of debt discount 60,000 - Gain on change in fair value of warrant liabilities (957,720) (69,000)Gain on disposal of fixed assets - (91,684)Stock-based compensation 6,397,925 7,695,748 Class A common stock issued to employees for services 100,698 255,500 Provision for credit losses 3,359,588 2,815,633 Deferred taxes 238,491 (997,702)Non-cash operating lease expense 641,863 705,293 Changes in operating assets and liabilities: Accounts receivable (2,218,236) (8,785,973)Accounts receivable – related parties (420,145) 204,826 Inventories 20,291 (131,898)Contract assets (1,509,572) 4,850,862 Prepaids and other current assets (1,076,486) (1,757,354)Other assets (2,180) (13,795)Interest receivable – related parties (153,485) - Accounts payable 2,753,886 (2,512,834)Accrued expenses and other current liabilities (1,996,262) (1,140,780)Accrued expenses and other current liabilities – related parties (3,309,832) 943,135 Contract liabilities 1,099,786 (3,861,063)Contract liabilities – related parties (2,000) (1,158,848)Operating lease payments (664,900) (630,963)Net cash used in operating activities (8,691,421) (8,716,717) CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property and equipment (1,223,400) (369,137)Investment in note receivable – related party - (3,000,000)Cash paid in the asset acquisition of Lumio - (4,000,000)Cash acquired in the acquisition of Heliogen 14,596,267 - Net cash provided by (used in) investing activities 13,372,867 (7,369,137) CASH FLOWS FROM FINANCING ACTIVITIES Net proceeds from the issuance of convertible preferred stock - 9,221,649 Proceeds from the issuance of class A common stock in a private placement - 2,716,000 Net proceeds from the issuance of convertible promissory note - 2,440,000 Repayments of finance lease liabilities (128,311) (118,416)Repayments of debt (3,256,424) (332,503)Dividends paid to OpCo class A preferred unit holders (621,063) (139,067)Tax withholdings paid related to stock-based compensation (166,929) - Distributions to members - (90,000)Net cash (used in) provided by financing activities (4,172,727) 13,697,663 Effect on foreign exchange on cash (4,895) - NET CHANGE IN CASH AND CASH EQUIVALENTS 503,824 (2,388,191)Cash and cash equivalents, beginning of period 5,634,115 8,022,306 Cash and cash equivalents, end of the period $6,137,939 $5,634,115 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Cash paid for interest $99,384 $124,488 Cash paid for income taxes $- $- NON-CASH INVESTING AND FINANCING ACTIVITIES Net loss attributable to redeemable non-controlling interest $7,318,540 $16,094,650 OpCo Class A preferred dividends $1,697,661 $9,414,862 Subsequent measurement of redeemable non-controlling interest $59,384,660 $105,672,00 Class A common stock issued upon vesting of restricted stock awards $24 $- Class A common stock issued in exchange for class V common stock $1,085 $- Fair value of class A common stock issued in exchange for OpCo class B units $24,051,500 $- Class A common stock issued in settlement of accrued advisory fees $1,619,729 $- Class A common stock issued upon conversion of convertible note payable $2,500,000 $- Operating lease right-of-use asset and liability measurement $140,975 $837,764 Accounts payable settled for loan payable $2,547,877 $- Net assets acquired in the acquisition of Heliogen $14,424,860 $- Class A common stock issued in the acquisition of Heliogen $14,424,860 $- Class A common stock issued in asset acquisition of Lumio $- $8,131,656 Deferred equity issuance costs $- $2,769,039 Issuance of Class A common stock to vendors $- $891,035 Issuance of Class A common stock to backstop investors $- $1,569,463