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SunPower Reports Q4 Revenue Drop and Loss
POWER & RENEWABLE ENERGY

SunPower Reports Q4 Revenue Drop and Loss

In the latest financial report from SunPower Corporation, the distributed generation, storage, and energy services company revealed a fourth-quarter (Q4) revenue of $356.9 million, marking a significant decline of 28% from $498 million in the previous year. This downturn was primarily attributed to lower customer additions during the period.

During Q4, SunPower added only 16,000 customers, a stark contrast to the 35,700 added in the same period last year, reflecting a decline of approximately 56%. The company cited reduced bookings stemming from higher interest rates, changes in California?s NEM 3.0 net metering policy, and the winding down of NEM 2.0 installations as key factors contributing to this decline.

As a consequence of these challenges, SunPower reported a Q4 loss of $89.5 million, a notable downturn from the $19.5 million profit recorded in the previous year. The company also experienced negative adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in the quarter, with an adjusted EBITDA loss of $67.6 million compared to positive adjusted EBITDA of $30.6 million in the prior year.

To address its financial position and support its strategic initiatives, SunPower announced $175 million in new capital financing from TotalEnergies and Global Infrastructure Partners. This funding comprises $45 million of prior bridge financing, $80 million in new investment, and an additional $50 million available upon the satisfaction of certain conditions. As part of this transaction, the company will also receive $25 million of revolving debt capacity.

CEO Peter Faricy emphasized, ?With the recent infusion of capital, SunPower is focused on driving positive free cash flow and profitability.?

Looking at the full-year (FY) 2023 performance, SunPower reported revenue of $1.69 billion, a decrease of 3.3% from the previous year, attributed to higher interest rates and lower installations due to California?s NEM 3.0 regulations. The company also incurred a loss of $158.5 million in 2023, compared to a profit of $30 million in the prior year, primarily due to the impact of higher interest rates and regulatory changes.

Despite these challenges, SunPower remains optimistic about its future prospects. During a post-earnings call with analysts, CEO Peter Faricy acknowledged the difficulties faced in 2023, stating it was "one of the toughest years this industry has had to endure."

While SunPower added 75,900 customers throughout the fiscal year, compared to 111,600 in the previous year, the company remains focused on recovery and growth. In 2022, SunPower experienced significant revenue growth of 53%, driven by the addition of 83,000 new customers, highlighting its potential for expansion and resilience in the face of challenges.

The company also recorded a strong recovery in the second quarter of the fiscal year, with a 47% reduction in net loss compared to the previous year, supported by higher bookings and strategic initiatives.

In the latest financial report from SunPower Corporation, the distributed generation, storage, and energy services company revealed a fourth-quarter (Q4) revenue of $356.9 million, marking a significant decline of 28% from $498 million in the previous year. This downturn was primarily attributed to lower customer additions during the period. During Q4, SunPower added only 16,000 customers, a stark contrast to the 35,700 added in the same period last year, reflecting a decline of approximately 56%. The company cited reduced bookings stemming from higher interest rates, changes in California?s NEM 3.0 net metering policy, and the winding down of NEM 2.0 installations as key factors contributing to this decline. As a consequence of these challenges, SunPower reported a Q4 loss of $89.5 million, a notable downturn from the $19.5 million profit recorded in the previous year. The company also experienced negative adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in the quarter, with an adjusted EBITDA loss of $67.6 million compared to positive adjusted EBITDA of $30.6 million in the prior year. To address its financial position and support its strategic initiatives, SunPower announced $175 million in new capital financing from TotalEnergies and Global Infrastructure Partners. This funding comprises $45 million of prior bridge financing, $80 million in new investment, and an additional $50 million available upon the satisfaction of certain conditions. As part of this transaction, the company will also receive $25 million of revolving debt capacity. CEO Peter Faricy emphasized, ?With the recent infusion of capital, SunPower is focused on driving positive free cash flow and profitability.? Looking at the full-year (FY) 2023 performance, SunPower reported revenue of $1.69 billion, a decrease of 3.3% from the previous year, attributed to higher interest rates and lower installations due to California?s NEM 3.0 regulations. The company also incurred a loss of $158.5 million in 2023, compared to a profit of $30 million in the prior year, primarily due to the impact of higher interest rates and regulatory changes. Despite these challenges, SunPower remains optimistic about its future prospects. During a post-earnings call with analysts, CEO Peter Faricy acknowledged the difficulties faced in 2023, stating it was one of the toughest years this industry has had to endure. While SunPower added 75,900 customers throughout the fiscal year, compared to 111,600 in the previous year, the company remains focused on recovery and growth. In 2022, SunPower experienced significant revenue growth of 53%, driven by the addition of 83,000 new customers, highlighting its potential for expansion and resilience in the face of challenges. The company also recorded a strong recovery in the second quarter of the fiscal year, with a 47% reduction in net loss compared to the previous year, supported by higher bookings and strategic initiatives.

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