SunPower Reports Q3 2023 Financial Results: Focus on Expansion and Resilience

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SunPower, a leading solar technology and energy solutions company, has released its financial results for the third quarter of 2023. The company reported a revenue of $432 million during the quarter, with a net loss of $32 million.

Despite the challenges, SunPower made notable progress in various aspects of its business. The company welcomed 18,800 new customers in the third quarter, ending the period with a backlog of 18,400 retrofit customers and 38,000 new homes customers. The expansion of its customer base showcases the growing interest in solar solutions.

One of the highlights of the quarter was the continued success of SunVault battery storage, which saw sales surge by an impressive 163 percent quarter-over-quarter. September marked a significant milestone for the company, as it became SunPower’s largest-ever month for battery sales. The SunVault attach rates in California surpassed 60 percent in the SunPower Direct channel, demonstrating strong demand for sustainable energy solutions.

SunPower’s solar adoption rebounded in the third quarter, with September retrofit bookings showing a remarkable increase of nearly 60 percent compared to August. The company also expanded its network by adding 88 new dealers during the quarter, broadening its coverage in key states such as Texas and Florida.

Peter Faricy, SunPower’s CEO, in its earnings report, emphasized the company’s commitment to cost reduction and prudent cash management. Faricy stated, “We are reducing our 2023 guidance due to lower-than-expected consumer demand as well as delayed revenue recognition from longer cycle times. We are focused on continuing to reduce costs while prudently managing cash. With this emphasis, we are prioritizing our efforts to build a stronger and more resilient company that can withstand changing market conditions.”

As part of this adjustment, SunPower reduced its guidance for the 2023 net loss, now estimated to be in the range of $165 million to $175 million. Guidance for Adjusted EBITDA per customer before platform investment was also adjusted to a range of $600 to $700 to account for installation and other costs spread over fewer customers than initially anticipated. This adjustment considers delayed revenue recognition due to longer cycle times, higher year-over-year installation costs, and the impact of cost of goods sold by inventory carried at costs higher than the current market value.

Additionally, SunPower increased its guidance for Platform Investment for the year, now projected to be in the range of $70 million to $90 million. This increase primarily reflects higher legacy business unit costs and the restatement of prior-period inventory value.

SunPower’s adjusted EBITDA for the year was revised to a range of $(25) million to $(35) million.

Despite the challenges faced in the third quarter, SunPower remains committed to its mission of providing innovative solar and energy storage solutions, expanding its customer base, and building a resilient foundation for the future.