SolarMax Technology Reports First Quarter 2025 Financial Results

Rhea-AI Summary

SolarMax Technology (NASDAQ: SMXT) has reported its Q1 2025 financial results, showing mixed performance. The company achieved revenue of $6.9 million, marking a 20% increase from $5.8 million in Q1 2024. Gross profit improved to $1.4 million, compared to a loss of $0.5 million in the previous year. The net loss narrowed significantly to $1.3 million ($0.03 per share) from $19.3 million ($0.46 per share) in Q1 2024.

Operating expenses decreased substantially to $2.6 million from $18.4 million, primarily due to the absence of a one-time stock-based compensation expense of $15.9 million recorded in Q1 2024. The company faces challenges from California's NEM 3.0 policy affecting residential solar demand but is seeing positive momentum through its dealer network and is exploring commercial project opportunities.

Positive

• Revenue increased 20% year-over-year to $6.9 million
• Gross profit improved to $1.4 million from -$0.5 million in Q1 2024
• Net loss significantly reduced to $1.3 million from $19.3 million year-over-year
• Operating expenses decreased substantially to $2.6 million from $18.4 million

Negative

• Company still operating at a net loss of $1.3 million
• California's NEM 3.0 policy negatively impacting residential solar demand
• No executed contracts for commercial projects despite pipeline development
• Facing ongoing inflationary and regulatory pressures

RIVERSIDE, Calif., May 16, 2025 (GLOBE NEWSWIRE) -- SolarMax Technology, Inc. (Nasdaq SMXT) (“SolarMax” or the “Company”), an integrated solar energy company, today reported financial results for the quarter ended March 31, 2025.

First Quarter 2025 Financial Highlights

• Revenue: $6.9 million, compared with $5.8 million in the first quarter of 2024.
• Gross profit: $1.4 million, compared with ($0.5) million in the first quarter of 2024.   Cost of revenues in the first quarter of 2024 included a one-time, non-cash stock-based compensation expense of $1.3 million.
• Total operating expense: $2.6 million, compared with $18.4 million in the first quarter of 2024. Operating expense in the first quarter of 2024 included a one-time, non-cash stock-based compensation expense of $15.9 million.
• Net loss: $1.3 million, or $0.03 per share, compared with a net loss of $19.3 million, or $0.46 per share in the first quarter of 2024.

David Hsu, CEO of SolarMax, stated, “We are encouraged by our progress this quarter, having achieved a 20% increase in revenue and improvement in gross margin despite ongoing inflationary and regulatory pressures. We believe this improvement demonstrates our team's ability to navigate a dynamic market while enhancing operational efficiency and executing on cost containment initiatives.”

“While California’s NEM 3.0 policy—which significantly reduced the compensation homeowners receive for excess solar power sent to the grid—continues to impact residential solar demand in the state, we’re seeing meaningful traction through our dealer network and our proposed commercial projects,” continued Hsu. “We are laying the groundwork for commercial and industrial solar and battery system projects that we believe represent a growth opportunity. Although we have no executed contracts, our development pipeline is active, and we are seeking to position SolarMax for longer-term diversification and growth.”

About SolarMax Technology Inc.

SolarMax, based in California and founded in 2008, is a leader within the solar and renewable energy sector focused on making sustainable energy both accessible and affordable. SolarMax has established a strong presence in southern California. SolarMax is looking to generate growth with strategic initiatives that aim to scale commercial solar development services and LED lighting solutions in the US while expanding its residential solar operations. For more information, visit www.solarmaxtech.com.

Any information contained on, or that can be accessed through, our website or any other website or any social media is not a part of this press release.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (“Securities Act”) as well as Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be covered by the safe harbor created by those sections. Forward-looking statements, which are based on certain assumptions and describe the Company's future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect,” “may,” “will,” “should,” “would,” “could,” “seek,” “intend,” “plan,” “goal,” “project,” “estimate,” “anticipate,” “strategy,” “future,” “likely” or other comparable terms, although not all forward-looking statements contain these identifying words. All statements other than statements of historical facts included in this press release regarding the Company's strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Important factors that could cause the Company's actual results and financial condition to differ materially from those indicated in the forward-looking statements. Such forward-looking statements are subject to risk and uncertainties, including, but not limited to, including but not limited to the Company’s ability to develop its commercial solar business and to be accepted as a provider of commercial solar systems in the United States, and its ability to recommence its operations in China where is has not generated any revenue since 2021, and to respond to any changes in governmental policies relating to renewable energy and those factors described in “Cautionary Note on Forward-Looking Statements” “Item 1A. Risk Factors,” and “Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations,” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC on March 31, 2025. SolarMax undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events except as required by law. You should read this press release with the understanding that our actual future results may be materially different from what we expect.

Contact:
For more information, contact:
Stephen Brown, CFO
(951) 300-0711

FAQ

What was SolarMax Technology's (SMXT) revenue in Q1 2025?

SolarMax Technology reported revenue of $6.9 million in Q1 2025, a 20% increase from $5.8 million in Q1 2024.

How much did SMXT lose per share in Q1 2025?

SolarMax Technology reported a net loss of $0.03 per share in Q1 2025, compared to a loss of $0.46 per share in Q1 2024.

How is California's NEM 3.0 policy affecting SolarMax Technology?

The NEM 3.0 policy is negatively impacting residential solar demand in California by significantly reducing compensation for homeowners who send excess solar power to the grid.

What was SolarMax's (SMXT) gross profit in Q1 2025?

SolarMax reported a gross profit of $1.4 million in Q1 2025, compared to a loss of $0.5 million in Q1 2024.

What are SolarMax Technology's plans for growth?

SolarMax is focusing on developing commercial and industrial solar and battery system projects for diversification and growth, though currently has no executed contracts.