SunPower's shares dropped 7% following the Q1 report, as revenue came in 9% below guidance, operating losses widened due to late cost increases, and management provided a cautious near-term outlook with only modest improvement expected in Q2.

• Q1 revenue was $72.8 million, missing the $80 million guidance by 9%, signaling ongoing deceleration.
• Non-GAAP operating income was a loss of $12.9 million, pressured by a one-time $9.9 million spending increase not anticipated to recur.
• Significant cost-cutting initiatives, including 115 layoffs and a company-wide 4-day workweek (effectively a 20% pay cut), are underway but were implemented too late to impact Q1 results.
• Despite recent $41 million capital raise used primarily to pay down debt, the company projects a modest revenue bump to $75 million in Q2 with a reduced operating loss of $3 million.
• Management remains cautious, emphasizing recovery tied to acquisitions and expecting profitability only by Q3 with a projected revenue target of $96 million.