Shoals Technologies Group, Inc. Earnings Recaps
Q2 2026
Aug 8, 2026
Shoals Technologies' shares fell 7.4% post-earnings as investors reacted negatively to ongoing margin pressure and cautious operational execution despite solid revenue growth and backlog strength.
Key takeaways
- Q2 revenue grew 47% year-over-year to $163 million, within guided range; backlog and orders remain healthy with a book-to-bill of 1.3 and backlog at $801 million (+19% YoY).
- Adjusted gross margin held steady at 30.6%, but margin improvement remains incremental and subject to operational challenges from factory consolidations and capacity expansion.
- SG&A expenses increased, partly from higher payroll and legal costs, limiting operating profit growth to 17% YoY, while GAAP net income declined from prior year due to a one-time gain in 2025.
- Adjusted EBITDA grew 28% to $31.6 million, but net debt rose to $181 million with leverage at 1.6x, raising concerns about capital structure amid measured expansion.
- Management highlighted progress in manufacturing efficiencies and growth in emerging segments like BESS and international markets, but their cautious tone on operational execution and outlook likely weighed on sentiment.
Q3 2025
Nov 4, 2025
Shoals Technologies Group reported record Q3 revenue of $135.8 million, reflecting a robust 32.9% year-over-year growth, driven by a strong backlog and a positive demand environment for solar energy.
Key takeaways
- New orders totaled $185.4 million, resulting in a backlog of $720.9 million, a 21% year-over-year increase.
- Adjusted EBITDA reached $32 million, or 23.5% of revenue, indicating effective cost management and strong operational performance.
- The company slightly increased its full-year revenue growth forecast to 17%-20%, signaling sustained momentum into 2026.