Stardust Solar Energy (SUN) Q1 2025 earnings summary

Executive summary

• Revenue grew 20% year-over-year to $1.00 million in Q1 2025, with gross margin rising to 48% from 27.4% in Q1 2024.

• Franchise fees and royalties reached a record $0.33 million, up 2.5 times from Q1 2024.

• Net loss widened to $0.65 million, or $0.01 per share, compared to a $0.39 million loss in Q1 2024.

• Franchise territories increased to 87, with continued U.S. expansion and new training programs launched.

Financial highlights

• Product gross profit rose 110% year-over-year to $0.10 million, with product gross margin at 18%.

• Working capital improved by $0.13 million during Q1 2025.

• Loans and lease obligations declined 44% to $0.43 million, reducing future interest expense.

• Operating expenses included $0.28 million in one-time advertising and promotion costs.

Outlook and guidance

• Trailing twelve-month revenue at March 31, 2025 was $3.8 million, up 4.7% from the prior twelve months.

• Management expects accelerated revenue growth for the remainder of 2025, driven by franchise additions and new training modules.

• Resources previously used for investor relations will be reallocated to customer acquisition and franchise support.