Emeren Group (SOL) investor relations material

Executive summary

• Revenue for Q3 2025 was $15.6 million, up from $12.9 million in Q3 2024, driven by higher electricity generation and solar project development revenue, partially offset by declines in EPC services and DSA revenue.

• Net income for Q3 2025 was $3.5 million, down from $5.7 million in Q3 2024, mainly due to lower unrealized foreign exchange gains and higher income tax expense, despite improved gross profit.

• The IPP business contributed over 79% of total revenue and 90% of gross profit in Q3 2025, reflecting a strategic focus on high-margin segments.

• A merger agreement with Shurya Vitra Ltd. and Emeren Holdings Ltd. was announced, with completion expected in 2025, subject to customary closing conditions.

Financial highlights

• Gross profit for Q3 2025 was $9.5 million (gross margin 60.8%), up from $5.6 million (43.8%) in Q3 2024, due to a higher share of electricity generation revenue.

• For the nine months ended September 30, 2025, revenue was $36.7 million (down from $57.5 million in 2024), with gross profit of $19.4 million (flat year-over-year), and a net loss of $21.9 million (vs. net income of $0.9 million in 2024), mainly due to a $27.3 million impairment loss.

• Operating cash flow for the nine months ended September 30, 2025 was $34.5 million, a significant increase from negative $14.6 million in the prior year period.

• As of September 30, 2025, cash and cash equivalents were $84.6 million, with positive working capital of $136.7 million.

Outlook and guidance

• Management expects continued growth in solar and storage project revenue in line with business expansion, but notes potential impacts from regulatory and trade policy changes.

• The merger, if completed, will result in delisting from the NYSE and may alter future liquidity and capital strategies.