NEW PORT RICHEY, Fla., May 27, 2025 (GLOBE NEWSWIRE) -- Zeo Energy Corp. (Nasdaq: ZEO) ("Zeo", "Zeo Energy", or the "Company"), a leading Florida-based provider of residential solar and energy efficiency solutions, today reported financial results for the fourth quarter and full year ended December 31, 2024.

Recent Financial and Operational Highlights

   -- Reported $73.2 million of revenue in 2024 despite pricing challenges from 
      a prolonged, higher interest rate environment 
 
   -- Reported $2.0 million of adjusted EBITDA in 2024, driven by the Company's 
      flexible operating model and disciplined cost management 
 
   -- Completed the integration of Lumio's assets, which were acquired in 
      November 2024 as part of Zeo's market expansion plan 
 
   -- Secured $4.0 million in December to develop a year-round sales force and 
      expand market presence, accelerating the Company's growth trajectory 
      heading into the second half of 2025 
 
   -- Achieved 6th straight year of positive adjusted EBITDA 

Management Commentary

"While 2024 was a challenging year for the solar business as a whole, we are entering 2025 with a sense of renewed optimism around the opportunities ahead," said Zeo Energy Corp. CEO Tim Bridgewater. "In a consolidating market, we remain positioned to acquire compelling renewable energy assets at attractive valuations to fuel our growth and gain market share over the intermediate term. Our November transaction with Lumio is an example of our ability to identify targets that offer Zeo accretive value with improved geographic and strategic positioning.

"Financially, thanks to our continued focus on efficiency as well as the flexibility in our operating model, we drove our sixth straight year of positive adjusted EBITDA. At the same time, our topline performance largely stabilized quarter-over-quarter, which was encouraging to see as we move through our traditionally slower seasons with limited sales in Q4 and Q1. As of today, our expanded recruitment initiatives remain on target as we begin our peak summer sales season in the second quarter of 2025. Put together, we believe we have the right strategy to operate sustainably today and to thrive over the long term."

Full Year 2024 Financial Results

Results compare the full year ended December 31, 2024 to the full year ended December 31, 2023.

   -- Total revenue was $73.2 million in 2024, a 33.2% decrease from $109.7 
      million in 2023. The decrease was primarily due to higher interest rates 
      creating a challenging environment for residential solar sales throughout 
      2024. 
 
   -- Gross profit decreased to $34.4 million (47.0% of total revenue) in 2024 
      from $49.8 million (45.4% of total revenue) in 2023. The decrease in 
      gross profit was driven in part by the decrease in sales compared to the 
      prior period. The improvement in gross profit as a percentage of revenue 
      was the result of improved operational efficiencies in labor, a reduction 
      in materials costs, and an increase in sales volume from our internal 
      sales teams. 
 
   -- Net loss was $9.9 million in 2024 compared to net income of $4.8 million 
      in the comparable 2023 period. The decrease was primarily due to stock 
      compensation, increased headcount, and costs incurred as a result of 
      becoming a public company. 
 
   -- Adjusted EBITDA, a non-GAAP measurement of operating performance 
      reconciled below, remained positive, but decreased to $2.0 million (2.7% 
      of total revenue) in 2024 from $7.0 million (6.4% of total revenue) in 
      2023. The decrease was primarily due to higher interest rates creating a 
      challenging environment for residential solar sales in 2024. 

Fourth Quarter 2024 Financial Results

Results compare the 2024 fourth quarter ended December 31, 2024 to the 2024 fourth quarter ended December 31, 2023.

   -- Total revenue was $18.6 million in Q4 2024, an 18.9% decrease from $23.0 
      million in the comparable 2023 period. The decrease was primarily due to 
      higher interest rates creating a challenging environment for residential 
      solar direct sales throughout 2024. 
 
   -- Gross profit decreased to $11.2 million (60.1% of total revenue) in Q4 
      2024 from $12.7 million (55.1% of total revenue) in the comparable 2023 
      period. The decrease was driven in part by the decrease in sales compared 
      to the prior period. The improvement in gross profit as a percentage of 
      revenue was the result of improved operational efficiencies in labor and 
      a reduction in materials costs. 
 
   -- Net loss for Q4 2024 was $1.1 million compared to $1.6 million in the 
      comparable 2023 period. The improvement was primarily related to a $0.7 
      million tax benefit. 
 
   -- Adjusted EBITDA, a non-GAAP measurement of operating performance 
      reconciled below, increased to $3.1 million (16.8% of total revenue) in 
      Q4 2024 from approximately $(0.9) million (4.1% of total revenue) in the 
      comparable 2023 period. The change was primarily related to a $3.0 
      million change in depreciation and amortization. 

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 Florida-based regional provider of residential solar, distributed energy, and energy efficiency solutions. Zeo focuses on high-growth markets with limited competitive saturation. With its differentiated sales approach and vertically integrated offerings, Zeo, through its Sunergy Solar business unit, serves customers who desire to reduce high energy bills and contribute to a more sustainable future. For more information on Zeo Energy Corp., please visit www.zeoenergy.com.

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:

 
 
                    Year Ended December 31,    Quarter Ended December 31, 
                    ------------------------  ---------------------------- 
                        2024         2023         2024           2023 
                    ------------  ----------  ------------  -------------- 
Net income (loss)   $(9,872,358)  $4,845,069  $(1,135,513)  $(1,596,773) 
Adjustment: 
    Other income, 
     net               (233,151)     183,401      (44,822)      190,383 
    Change in fair 
     value of 
     warrant 
     liabilities        (69,000)           -      759,000             0 
    Interest 
     expense            333,539      110,857       39,282        47,937 
    Income tax 
     benefit           (988,802)           -     (753,450)            0 
    Stock 
     compensation     7,951,248            -      849,430             0 
    Depreciation 
     and 
     amortization     4,836,538    1,841,874    3,423,464       410,392 
 
Adjusted EBITDA       1,958,014    6,981,201    3,137,391      (948,061) 
 
 

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:

 
 
              Year Ended December 31,          Quarter Ended December 31, 
           -----------------------------      ----------------------------- 
              2024              2023             2024              2023 
           -----------      ------------      -----------      ------------ 
Total 
 Revenue   $73,244,083      $109,691,001      $18,647,750      $22,985,981 
Adjusted 
 EBITDA      1,958,014         6,981,201        3,137,391         (948,061) 
Adjusted 
 EBITDA 
 margin            2.7   %           6.4   %         16.8   %         (4.1)   % 
 
 

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; the ability to effectively consolidate the assets of Lumio and produce the expected results; changes in the Company's strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, the ability to raise additional funds, and plans and objectives of management. These forward-looking statements are based on information available as of the date of this news release, and current expectations, forecasts, and assumptions, and involve a number of 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 a number 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 and changes in applicable laws or regulations, including tariffs or trade restrictions; (vi) the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; (vii) operational risk; (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 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, 2023 and in its subsequent periodic reports and other filings with the SEC.

In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation 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 subsequent to 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 
 
                             As of December 31,     As of December 31, 
                            --------------------  ---------------------- 
                                     2024                  2023 
Assets 
Current assets 
    Cash and cash 
     equivalents             $        5,634,115    $        8,022,306 
    Accounts receivable, 
     including $191,662 
     and $396,488 from 
     related parties, net 
     of allowance for 
     credit losses of 
     $1,165,336 and 
     $862,580, as of 
     December 31, 2024 and 
     2023, respectively              10,186,543             2,905,205 
    Inventories                         872,470               350,353 
    Contract assets                      64,202             4,915,064 
    Prepaid expenses and 
     other current assets             2,131,345                40,403 
                                ---------------       --------------- 
      Total current assets           18,888,675            16,233,331 
    Other assets                        314,426                62,140 
    Property, equipment 
     and other fixed 
     assets, net                      2,475,963             2,289,723 
    Right of use operating 
     lease assets                     1,268,139             1,135,668 
    Right of use financing 
     lease assets                       447,012               583,484 
    Intangibles, net                  7,571,156               771,028 
    Related party note 
     receivable                       3,000,000 
    Goodwill                         27,010,745            27,010,745 
Total assets                 $       60,976,116    $       48,086,119 
                                ===============       =============== 
 
Liabilities, mezzanine 
equity and stockholders 
(deficit) equity 
Current liabilities 
    Accounts payable         $        2,780,885    $        4,699,855 
    Accrued expenses and 
     other current 
     liabilities, 
     including $3,359,101 
     and $2,415,966 with 
     related parties at 
     December 31, 2024 and 
     2023, respectively               8,540,188             4,646,365 
    Current portion of 
     long-term debt                     291,036               294,398 
    Current portion of 
     obligations under 
     operating leases                   583,429               539,599 
    Convertible promissory 
     note                             2,440,000                     - 
    Contract liabilities, 
     including $2,000 and 
     $1,160,848 with 
     related parties as of 
     December 31, 2024 and 
     2023, respectively                 203,607             5,223,518 
      Total current 
       liabilities                   14,969,609            15,522,151 
    Obligations under 
     operating leases, 
     non-current                        799,385               636,414 
    Obligations under 
     financing leases, 
     non-current                        348,807               479,271 
    Warrant liabilities               1,449,000                     - 
    Long-term debt                      496,623               825,764 
Total liabilities                    18,063,424            17,463,600 
                                ---------------       --------------- 
 
Commitments and 
contingencies (Note 14) 
 
Redeemable noncontrolling 
interests 
Convertible preferred 
 units                               16,130,871                     - 
Class B Units                       115,693,900                     - 
 
Stockholders' (deficit) 
equity 
    Class V common stock, 
     $0.0001 par value, 
     100,000,000 
     authorized shares; 
     35,230,000 and 
     33,730,000 shares 
     issued and 
     outstanding as of 
     December 31, 2024, 
     and December 31, 
     2023, respectively                   3,523                 3,373 
    Class A common stock, 
     $0.0001 par value, 
     300,000,000 
     authorized shares; 
     13,252,964 and no 
     shares issued and 
     outstanding as of 
     December 31, 2024, 
     and December 31, 
     2023, respectively                   1,326                     - 
    Additional paid in 
     capital                         14,523,963            31,152,491 
    Accumulated deficit            (103,440,891)             (533,345) 
                                ---------------       --------------- 
Total stockholders' 
 (deficit) equity                   (88,912,079)           30,622,519 
Total liabilities, 
 redeemable noncontrolling 
 interests and 
 stockholders' (deficit) 
 equity                      $       60,976,116    $       48,086,119 
                                ===============       =============== 
 
 
 
 
                               ZEO ENERGY CORP. 
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 
 
                       Year Ended December 31,     3 Months Ended December 31, 
                     ----------------------------  ---------------------------- 
                         2024           2023           2024           2023 
                     -------------  -------------  ------------  -------------- 
Revenue, net         $ 51,088,065   $ 94,226,149   $14,630,831   $ 7,521,129 
Related party 
 revenue, net          22,156,018     15,464,852     4,016,919    15,464,852 
    Total revenue      73,244,083    109,691,001    18,647,750    22,985,981 
Operating costs and 
expenses: 
    Cost of goods 
     sold 

     (exclusive of 
     depreciation 
     and 
     amortization 
     shown below)      38,021,519     59,436,674     7,216,364    10,190,953 
    Depreciation 
     and 
     amortization       4,836,538      1,841,874     3,423,464       410,392 
    Sales and 
     marketing         19,587,073     30,324,059     3,408,698    10,510,080 
    General and 
     administrative    21,628,725     12,949,067     5,734,727     3,233,009 
      Total 
       operating 
       expenses        84,073,855    104,551,674    19,783,253    24,344,434 
(Loss) income from 
 operations           (10,829,772)     5,139,327    (1,135,503)   (1,358,453) 
Other (expenses) 
income, net: 
    Other income, 
     net                  233,151       (183,401)       44,822      (190,383) 
    Change in fair 
     value of 
     warrant 
     liabilities           69,000              -      (759,000)            - 
    Interest 
     expense             (333,539)      (110,857)      (39,282)      (47,937) 
      Total other 
       income 
       (expense), 
       net                (31,388)      (294,258)     (753,460)     (238,320) 
                      -----------    -----------    ----------    ---------- 
Net (loss) income 
 before taxes         (10,861,160)     4,845,069    (1,888,963)   (1,596,773) 
Income tax benefit        988,802              -       753,450             - 
                      -----------    -----------    ----------    ---------- 
Net (loss) income      (9,872,358)     4,845,069    (1,135,513)   (1,596,773) 
  Net (loss) 
   attributable to 
   Sunergy 
   Renewables LLC 
   prior to the 
   Business 
   Combination           (523,681)     4,845,069             -    (1,596,773) 
                      -----------    -----------    ----------    ---------- 
Net (loss) income 
 subsequent to the 
 Business 
 Combination           (9,348,677)             -    (1,135,513)            - 
  Net (loss) income 
   attributable to 
   redeemable 
   non-controlling 
   interests           (6,679,788)             -      (700,167)            - 
Net (loss) income 
 attributable to 
 Class A common 
 stock               $ (2,668,889)  $          -   $  (435,346)  $         - 
                      ===========    ===========    ==========    ========== 
 
    Basic and 
     diluted net 
     (loss) income 
     per common 
     unit            $      (0.48)  $          -   $     (0.04)  $         - 
                      ===========    ===========    ==========    ========== 
    Weighted 
     average units 
     outstanding, 
     basic and 
     diluted            5,546,925              -    11,057,312             - 
                      ===========    ===========    ==========    ========== 
 
 
 
 
                           ZEO ENERGY CORP. 
            CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 
 
                                            Year Ended December 31, 
                                          ---------------------------- 
                                              2024           2023 
                                          ------------  -------------- 
Cash Flows from Operating Activities 
Net (loss) income                         $(9,872,358)  $ 4,845,069 
Adjustment to reconcile net (loss) 
income to cash (used in) provided by 
operating activities 
  Depreciation and amortization             4,836,538     1,841,874 
  Gain on disposal of asset                   (91,684)            - 
  Change in fair value of warrant 
   liabilities                                (69,000)            - 
  Provision for credit losses               2,815,633     1,531,223 
  Noncash operating lease expense             705,293       550,425 
  Stock based compensation expense          7,951,248             - 
  Deferred tax asset                         (997,702)            - 
Changes in operating assets and 
liabilities: 
    Accounts receivable                    (8,785,973)   (3,475,661) 
    Accounts receivable due from related 
     parties                                  204,826      (396,488) 
    Inventories                              (131,898)      (63,207) 
    Contract assets                         4,850,862    (4,795,309) 
    Prepaids and other current assets      (1,757,354)       61,852 
    Other assets                              (13,795)            - 
    Due from related party                          -      (104,056) 
    Accounts payable                       (2,512,834)    4,501,798 
    Accrued expenses and other current 
     liabilities                           (1,140,780)    1,536,287 
    Accrued expenses and other current 
     liabilities due to related parties       943,135     2,415,996 
    Contract liabilities                   (3,861,063)    2,913,623 
    Contract liabilities due to related 
     parties                               (1,158,848)    1,160,848 
    Operating lease payments                 (630,963)     (547,140) 
      Net cash (used in) provided by 
       operating activities                (8,716,717)   11,977,134 
 
Cash flows from Investing Activities 
Purchases of property, equipment and 
 other assets                                (369,137)   (1,034,666) 
Investment in related party                (3,000,000)            - 
Lumio asset purchase                       (4,000,000)            - 
      Net cash used in investing 
       activities                          (7,369,137)   (1,034,666) 
                                           ----------    ---------- 
 
Cash flows from Financing Activities 
Proceeds from the issuance of debt                  -       311,029 
Principal payment of finance lease 
 liabilities                                 (118,416)      (84,678) 
Proceeds from private placement             2,716,000             - 
Proceeds from the issuance of 
 convertible preferred stock, net of 
 transaction costs                          9,221,649             - 
Repayments of debt                           (332,503)     (241,423) 
Proceeds from convertible promissory 
 note, net of debt issuance costs           2,440,000             - 
Dividends paid to Convertible preferred 
 units                                       (139,067) 
Distributions to members                      (90,000)   (5,173,396) 
                                           ----------    ---------- 
      Net cash provided by (used in) 
       financing activities                13,697,663    (5,188,468) 
 
Net (decrease) increase in cash and cash 
 equivalents                               (2,388,191)    5,754,000 
Cash and cash equivalents, beginning of 
 period                                     8,022,306     2,268,306 
                                                         ---------- 
Cash and cash equivalents, end of the 
 period                                   $ 5,634,115   $ 8,022,306 
                                           ==========    ========== 
 
Supplemental Cash Flow Information 
Cash paid for interest                    $   124,488   $   103,421 
Accrual of distribution to owners         $         -   $   325,000 
Cash paid for income taxes                $         -   $         - 
Noncash finance lease expense             $   136,472   $    98,881 
 
Non-cash transactions 
Right-of-use assets obtained in exchange 
 for operating lease liabilities          $   837,764   $         - 
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   $         - 
Preferred dividends                       $ 9,275,795   $         - 
 
 

(END) Dow Jones Newswires

May 27, 2025 08:30 ET (12:30 GMT)