Shoals Technologies Beats Q1 Revenue Estimates, Raises 2026 Outlook to $600M–$640M
Shoals Technologies reported a net loss of $297,000 in Q1 on revenue of $140.6 million, topping analyst estimates of $130.2 million and delivering adjusted earnings of $0.07 per share versus consensus $0.06. The company raised its Q2 revenue outlook to $150–170 million and full-year forecast to $600–640 million.
1. First Quarter Financial Results
Shoals reported Q1 revenue of $140.6 million, a 75% year-over-year increase that topped the $130.2 million consensus. The company recorded a net loss of $0.3 million, or less than $0.01 per share, and achieved adjusted EPS of $0.07 versus analyst projections of $0.06.
2. Profitability and Operational Metrics
Gross profit reached $41.0 million, but gross margin declined to 29.2% from 35.0% due to $3.8 million in additional tariffs and higher material costs. Adjusted EBITDA climbed to $21.1 million from $13.5 million, despite a $5.3 million accrual for litigation settlement.
3. Record Backlog and Awarded Orders
Backlog and awarded orders stood at $758.0 million, marking a 17.5% increase year-over-year and a 1.4% sequential gain driven by strong demand in domestic utility-scale solar and emerging battery storage markets.
4. Outlook and Guidance
For Q2 2026, Shoals projects revenue of $150–170 million. The company raised its full-year 2026 outlook to $600–640 million in revenue, $118–132 million in adjusted EBITDA, $65–85 million in operating cash flow, and $20–30 million in capital expenditures.