Zeo Energy (ZEO) investor relations material

Executive summary

• Net revenues increased 50.1% year-over-year to $13.2 million, driven by higher solar system installations.

• Net loss narrowed to $4.7 million from $13.3 million in the prior year quarter.

• Contribution margin improved to 17.0% from -31.5% year-over-year.

• Adjusted EBITDA loss improved to $2.9 million from $5.5 million in the prior year.

Financial highlights

• Cost of revenues rose 58.3% to $7.6 million, reflecting increased installation activity.

• Depreciation and amortization dropped to $1.1 million from $4.9 million, due to full amortization of prior intangibles and accelerated software depreciation.

• General and administrative expenses decreased 33.9% to $6.3 million, mainly from lower bad debt and stock-based compensation.

• Cash and cash equivalents were $1.7 million at quarter-end, down from $6.1 million at year-end.

Outlook and guidance

• Management expects operational improvements and increased sales agents to drive revenue growth and move toward profitability in 2026.

• Plans include centralizing field offices, implementing new CRM software, and leveraging the White Lion ELOC for capital needs.

• Company believes current cash, working capital, and access to equity markets will meet business needs for the next twelve months.