Zeo Energy (ZEO) investor relations material

Executive summary

• Fourth quarter 2025 revenue was $18.6 million, flat year-over-year, with weather-related installation delays impacting results.

• Full year 2025 revenue declined 5% to $69.3 million due to a challenging residential sales environment and changes in tax policy and financing options.

• Gross margin for Q4 2025 increased slightly to 43.5%, but gross profit fell sharply due to higher labor and material costs.

• Net loss widened to $1.8 million in Q4 2025 and $19.6 million for the full year, impacted by acquisition-related amortization, higher costs, and a one-time $3.2 million bad debt expense.

• Adjusted EBITDA was negative $1.4 million in Q4 2025 and negative $3.3 million for the year, reflecting increased costs and lower revenues.

Financial highlights

• Q4 2025 gross profit was $2.1 million (11.3% margin), down from $8.3 million (44.6%) in Q4 2024.

• Full year 2025 gross profit was $30.2 million (43.6% margin), down from $31.5 million (43.0%) in 2024.

• Q4 2025 Adjusted EBITDA margin was -7.6%, compared to 20.7% in Q4 2024.

• Full year 2025 Adjusted EBITDA margin was -4.8%, compared to 5.4% in 2024.

• Cash and cash equivalents at year-end 2025 were $6.1 million, up from $5.6 million at year-end 2024.

Outlook and guidance

• Management expects core residential solar business to grow materially in 2026, targeting growth rates similar to Q3 2025 before weather disruptions.

• Adjusted EBITDA margins are expected to return to mid- to high-single digits in 2026.

• Anticipates better absorption of acquisition-related costs and benefits from operational centralization in 2026.