Stardust Solar Energy (SUN) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue reached $2.21M, up 13% year-over-year, with gross profit of $1M, up 84% year-over-year.

• Gross margin improved from 28% to 45% due to operating leverage and cost controls.

• Project backlog increased by $2.52M in Q2, up 69% year-over-year, bringing the year-to-date backlog to $3.2M.

• Franchise network expanded from 83 to 96 territories, with expectations to surpass 100 by year-end 2025.

Financial highlights

• Sequential Q2 revenue grew 21% to $1.21M; gross profit rose 5% to $509K.

• Operating expenses decreased 13% sequentially to $985K; operating loss improved to ($475K).

• Interest and bank charges fell 47%; bad debt expense dropped 67%.

• Year-to-date direct costs declined 14% to $1.21M; operating expenses rose to $2.1M, mainly from higher advertising and non-cash compensation.

• Current assets increased to $1.28M; total liabilities decreased 36% since December 2024.

Outlook and guidance

• Management expects continued franchise expansion, aiming for over 100 territories by year-end.

• Strategic focus on exclusive product partnerships, certified training, and growing clean energy demand to drive top-line growth and margin expansion.