SunPower Reports Q1’26 Results
Rhea-AI Summary
SunPower (Nasdaq: SPWR) reported preliminary, unaudited Q1 2026 revenue of $72.8 million, below its prior $80 million guidance, and a non-GAAP operating loss of $12.9 million driven by lower revenue and spending ahead of expected Q3 2026 growth.
The company reduced debt by $40 million via a convertible note offering and ended Q1 with $9.5 million in cash. Q1 2026 bookings reached a record 4,446 jobs, up from 1,197 a year earlier, supported by acquisitions.
SunPower implemented quarterly cost reductions of about $9.9 million, including a reduction in force of 115 employees and a temporary four-day workweek until September. It estimates Q2 2026 revenue of $75 million with an operating loss of about $3 million, and forecasts Q3 2026 revenue of $96 million, its cashflow breakeven level.
AI-generated analysis. Not financial advice.
Positive
- Record Q1 2026 bookings of 4,446 jobs vs. 1,197 in Q1 2025
- Convertible note offering reduced debt by $40 million
- Permanent quarterly operating expense reduction of about $9.9 million starting May 2026
- Q2 2026 revenue estimate of $75 million with projected operating loss narrowed to about $3 million
- Q3 2026 revenue forecast of $96 million, aligning with cashflow breakeven level
- Q1 2026 non-GAAP gross margin of 64% vs. 61% in Q4 2025
Negative
- Q1 2026 revenue of $72.8 million vs. $80 million prior guidance (about 9% shortfall)
- Q1 2026 non-GAAP operating loss of $12.9 million vs. non-GAAP operating income of $3.2 million in Q4 2025
- Q1 2026 ending cash balance of $9.5 million, roughly flat vs. $9.6 million prior quarter
- Planned restatements of Q1 2025–Q3 2025 10Q filings following 2025 10K audit adjustments
- Resignation of prior CFO and CEO temporarily serving as Principal Financial Officer
- Reduction in force of 115 employees and temporary four-day workweek until September
Market Reaction – SPWR
Following this news, SPWR has declined 10.96%, reflecting a significant negative market reaction. Our momentum scanner has triggered 7 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $1.01. This price movement has removed approximately $16M from the company's valuation.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.
Key Figures
Market Reality Check
Peers on Argus
SPWR is up 4.59% with sub-average volume, while only one peer (SMXT) appeared on the momentum scanner, moving 6.57% higher. Other solar peers show mixed, mostly modest moves, pointing to a stock-specific reaction to Q1’26 results and cost actions rather than a broad solar rally.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Apr 28 | Debt reduction funding | Positive | -0.9% | Closed $41M convertible funding round, cutting total debt by $40M. |
| Apr 22 | Convertible notes priced | Negative | -9.3% | Priced $41M high-coupon convertible notes with substantial potential dilution. |
| Apr 14 | 2025 10-K filed | Neutral | -1.6% | Filed 2025 10-K with revenue adjustments and non-GAAP operating income. |
| Mar 13 | Sunder integration | Positive | +1.6% | Completed Sunder Energy integration using structured, quality-focused process. |
| Feb 25 | Conference participation | Neutral | -2.8% | Announced attendance at several investor conferences to engage institutions. |
Recent news has centered on financings, 10-K completion, and integration work. Positive operational updates and capital-structure moves have often seen muted to negative price reactions, especially around convertible debt and audit-related disclosures.
Over the last few months, SPWR focused on stabilizing its capital structure and executing integrations. On Feb 25, it highlighted conference participation. By Mar 13, it completed the Sunder integration. March filings and proxies detailed significant equity and convertible-note structures. The Apr 14 10-K showed restatements and non-GAAP profitability, followed by late-April convertible funding that cut debt by $40M. Today’s Q1’26 update builds directly on that audit work, debt reduction, and integration-driven growth narrative.
Market Pulse Summary
This announcement highlights a mixed Q1’26, with revenue of $72.8M missing prior guidance and a non-GAAP operating loss of ($12.9M), offset by record bookings of 4,446 jobs and permanent quarterly cost cuts of $9.9M. Investors may track execution against Q2’26 revenue of $75M, the forecast Q3’26 breakeven at $96M, cash levels around $9.5M, and how quickly acquisitions convert bookings into sustainable, profitable revenue.
Key Terms
gaap financial
non-gaap financial
10k regulatory
10q regulatory
AI-generated analysis. Not financial advice.
- Q1’26 Revenue
$72.8 million - Q1’26 Op Inc (
$12.9) million loss due to revenue miss and staffing for Q3’26 growth - Convertible note offering reduced debt by
$40 million - Bookings increased to a record 4,446 jobs, up from 1,197 in Q1’25 due to acquisitions
- 2025 10K statement filed on time; difficult 10K audit
- We plan to file the Q1’25-Q3’25 10Q restatements on time
OREM, Utah, May 12, 2026 (GLOBE NEWSWIRE) -- SunPower Inc. (herein “SunPower,” the “Company,” or Nasdaq: “SPWR”), a solar technology, services, and installation company, will present its Q1’26 results via webcast today, Tuesday, May 12, at 1:00pm ET. Register for the webcast here or by visiting our Events page: https://investors.sunpower.com/news-events/events.
Fellow Shareholders:
The preliminary, unaudited Q1’26 report is shown below, compared to the Q4’25 results from our recent 10K audit.
| SunPower Q1’26 Revenue & Operating Income Statement1 | ||||||||||
| GAAP2 | NON-GAAP3 | |||||||||
| ( | Q1 2026 | Q4 20254 | Q1 2026 | Q4 20254 | ||||||
| Revenue | 72,793 | 90,985 | 72,793 | 90,985 | ||||||
| Gross Profit | 45,162 | 45,996 | 46,883 | 55,195 | ||||||
| Gross Margin | ||||||||||
| Operating Expense (Opex) | 64,357 | 58,684 | 59,748 | 52,011 | ||||||
| Opex (less commission) | 35,793 | 46,584 | 31,184 | 39,911 | ||||||
| Stock Comp, Intangibles, M&A3 | 6,331 | 15,872 | 0 | 0 | ||||||
| Operating Income (loss) | (19,196 | ) | (12,688 | ) | (12,865 | ) | 3,184 | |||
| Cash Balance5 | 9,488 | 9,617 | 9,488 | 9,617 | ||||||
SunPower CEO, T.J. Rodgers, said, “After four consecutive Preliminary Quarter Reports with positive operating income, we lost money in Q1’26 due to lower revenue combined with a ramp in spending for anticipated Q3’26 growth – which we still believe will happen.”
___________________________________
1 Non-GAAP Operating income is based on preliminary, unaudited non-GAAP results posted on the IR section of our website under “News” [us.sunpower.com].
2 Our 2025 GAAP financial statements are found in the 10K filing posted on our website.
3 Our non-GAAP financials are used to run the company. Our policy allows for only three GAAP/non-GAAP differences: a) no non-cash amortization of intangibles, b) no employee stock compensation charges and c) no one-time restructuring M&A gains or losses.
4 Restated 10Q results consistent with adjustments in the 2025 10K report, and upcoming Q1’25-Q3’25 restatements
5 Cash balances exclude restricted cash and include issued but uncashed checks.
| 10K Audit Analysis (by T.J. Rodgers) |
Before analysing the results from Q1’26 and the forecast for Q2’26, I want to present the restated 2025 quarterly results for revenue and operating income both before and after the 10K adjustments as shown below. During our 2025 10K audit, I realized that our company’s structure, a collection of six non-public companies with immature accounting, presented our finance group with a very tough job – to reconcile our first 10K audited annual results with the preliminary, unaudited “Prior Quarterly Reports” issued in Q1’25-Q4’25, before the 10K audit.
These Prior Quarterly Reports came from six different IT systems, two of them now obsolete, but our auditor, BDO, still had to run a full 10K audit process. The financial results for revenue and non-GAAP operating income for the yearly (10K) and quarterly (restated 10Q) are presented below compared to the Prior Quarterly Reports.
The standard auditing method is to sample line items from our books and ask us to retrieve and supply independent third-party documentation that proves the books are accurate.
Our Prior Quarter Reports showed well vs. the 10K results for full-year revenue (10K:
There are nine steps in our solar installation process that document our reported installation revenue. Our auditors required proof with hard third-party evidence on each of the nine steps of each of our 11,500 jobs in 2025. This process led to 390 formal requests for information from our auditors during the 10K audit.
The observations above are made to scope the problem, not to make excuses. The problem is mine. In the semiconductor industry, wafer fabrication equipment is network-connected and self-reports problems. Every wafer is automatically tested hundreds of times in the line. By contrast, while the solar problem is less sophisticated, it is tougher on accounting. SunPower’s solar panels and customers are spread out all over the U.S. – where a fraction of our customers, for example the new homeowners, are often non-responsive. Nonetheless, solar financial reporting must meet full public company standards. In 34 years as the CEO of Cypress Semiconductor, we reported zero restated quarters. I actually verified that fact to insure I was not remembering the “good old days” as better than reality.
What SunPower has done: 1) We have received and accepted the resignation of the CFO, 2) I have been appointed by the board of directors as SunPower’s Principal Financial Officer for approximately one month, until we hire our current CFO candidate, 3) the board has appointed Bernard Gutmann (eight years as the CFO of the
Rodgers continued, “The vision above is not a CEO’s zero-defect dream. A similar SunPower financial zero-defect effort led by Quality in 2025 permanently eliminated the input data quality problems suffered by one of our funding sources, reducing a
| Q1’26 Results and Beyond |
- Our Q1’26 revenue was
$72.8 million , down9% from our Q4’25$80 million guidance, primarily due to our Q1’26 revenue slowdown, which was actually mild compared to the market. This alone would have led to only a$1.8 million operating income fall through, but - Our non-GAAP operating income was driven to
$(12.9) million by another$9.9 million in added spending in anticipation of what we still expect to be a big Q3’26. - Our ending cash balance was
$9.5 million vs.$9.6 million last quarter
Q2’26 had been on target until the end of April. We reacted immediately in early May with
What SunPower has done:
- RIFed 115 employees.
- Installed an across-the-board four-day workweek until September.
- Cut the inside sales group from 90 to 15 people, affecting revenue less than
10% because paradoxically call center sales have lower profit and a worse cashflow profile than does our conventional 1,552-member salesforce. - Reduced finance costs, which had ballooned during the 10K audit.
Rodgers continued, “These actions reduced our ongoing operating expense permanently by about
Rodgers concluded, “Our Q1’26 bookings shown below were driven by acquisitions to record levels, which will show up in revenue in Q3’26 and beyond.”
About SunPower
SunPower Inc. (Nasdaq: SPWR) is a leading residential solar services provider in North America. The Company’s digital platform and installation services support energy needs for customers wishing to make the transition to a more energy-efficient lifestyle. For more information visit www.sunpower.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, about us and our industry that involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “preliminary,” “will,” “goal,” “prioritize,” “plan,” “target,” “expect,” “in the process,” “focus,” “forecast,” “look forward,” “opportunity,” “believe,” “estimate,” “continue,” “anticipate,” and “pursue” or the negative of these terms or similar expressions. Forward-looking statements in this press release include, without limitation, our Q2’26 revenue and operating profit projections, our expectations regarding our financial performance, including our revenue plan; the anticipated timing for the filing of the Q1’26 Form 10-Q and Q1’25 – Q3’25 Form 10-Q restatements; and our expectations regarding the benefits of or our acquisitions; our expectations regarding steps taken to improve our internal controls and procedures; the anticipated impacts and benefits of our cost control efforts; and our expectations and plans relating to further cost control efforts. Actual results could differ materially from these forward-looking statements as a result of certain risks and uncertainties, including, without limitation, our ability to implement further headcount reductions and cost controls, our ability to integrate and operate the combined business with Sunder and Ambia, our ability to achieve the anticipated benefits of acquisitions (including Sunder, Ambia and Cobalt), our ability to raise capital and maintain expected cash balances, global market conditions, any adjustments, changes or revisions to our financial results arising from our financial closing procedures, the completion of our financial statements for Q1’26 and the filing of the related Form 10-Q, the completion of our restatements for Q1’25 – Q3’25, and other risks and uncertainties applicable to our business. For additional information on these risks and uncertainties and other potential factors that could affect our business and financial results or cause actual results to differ from the results predicted, readers should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of our annual report on Form 10-K filed with the SEC on April 14, 2026, our quarterly reports on Form 10-Q filed with the SEC and other documents that we have filed with, or will file with, the SEC. Such filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements in this press release speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and SunPower assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.
Preliminary and Unaudited Financial Results
The selected unaudited financial results for the Q1’26 are preliminary and subject to our quarter-end accounting procedures. As a result, the financial results presented in this press release may change in connection with the finalization of our closing and reporting processes and financial statements for Q1’26 and may not represent the actual financial results for such period. In addition, the information in this press release is not a comprehensive statement of our financial results for Q1’26, should not be viewed as a substitute for financial statements prepared in accordance with generally accepted accounting principles, and are not necessarily indicative of our results for any future period.
Non-GAAP Financial Measures
In addition to providing financial measurements based on generally accepted accounting principles in the United States of America ("GAAP"), SunPower provides additional financial metrics in this press release that are not prepared in accordance with GAAP ("non-GAAP"). Management believes the non-GAAP financial measures in this press release, in addition to GAAP financial measures, are useful measures of operating performance because the non-GAAP financial measures do not include the impact of items that management does not consider indicative of SunPower’s operating performance, such as amortization of goodwill and expensing employee stock options in addition to accounting for their dilutive effect, which facilitates the analysis of SunPower’s core operating results across reporting periods. The non-GAAP financial measures do not replace the presentation of SunPower’s GAAP financial results and should only be used as a supplement to, not as a substitute for, SunPower’s financial results presented in accordance with GAAP. Descriptions of and reconciliations of the non-GAAP financial measures used in this press release are included in the financial table above and related footnotes. We encourage investors to carefully consider our preliminary results under GAAP, as well as our preliminary non-GAAP information and the reconciliations between these presentations, to more fully understand our business. Non-GAAP financial measures are reported in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.
Company Contacts:
Sioban Hickie
VP Investor Relations
IR@sunpower.com
(801) 515-8727
| SUNPOWER | |||||||||
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (PRELIMINARY) | |||||||||
| (In Thousands) | |||||||||
| AS REPORTED Unaudited | |||||||||
| Q1 2026 | Q4 2025 | ||||||||
| GAAP operating Income(loss) from continuing operations | Note | (19,196 | ) | (12,688 | ) | ||||
| Depreciation and amortization | A | 3,710 | 4,833 | ||||||
| Stock based compensation | B | 1,605 | 2,611 | ||||||
| Restructuring charges | C | 1,016 | 8,428 | ||||||
| Total of Non-GAAP adjustments | 6,331 | 15,872 | |||||||
| Non-GAAP Operating Income (loss) | (12,865 | ) | 3,184 | ||||||
| Notes: | |||||||||
| (A) | Depreciation and amortization: Depreciation and amortization related to capital expenditures. | ||||||||
| (B) | Stock-based compensation: Stock-based compensation relates to our equity incentive awards and for services paid in warrants. Stock-based compensation is a non-cash expense. | ||||||||
| (C) | Acquisition Costs: Costs primarily related to acquisition, headcount reductions (i.e. severence), legal, professional services (i.e. historical carveout audits) and due diligence. | ||||||||
Source: SunPower Inc.
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