Stardust Solar Reports Q2 2025 Results: Revenue of $2.21M (Up 13% YoY), Gross Profit of $1M (Up 84% YoY), and Project Backlog Increase of $2.52M (Up 69% YoY)

Rhea-AI Summary

Stardust Solar (OTCQB:SUNXF), a North American renewable energy installation franchisor, reported strong Q2 2025 financial results. The company achieved revenue of $2.21M (up 13% YoY) and gross profit of $1M (up 84% YoY). Notable improvements include gross margin expansion from 28% to 45% and a significant project backlog increase to $2.52M (up 69% YoY).

The company's franchise network expanded from 83 to 96 territories across Canada, the United States, and Antigua & Barbuda. Operating expenses decreased 13% quarter-over-quarter to $985K, while the company reduced total liabilities by 36% since December 2024. Management expects to surpass 100 territories by year-end 2025, supported by exclusive product partnerships and certified training programs.

Positive

• None.

Negative

• Operating loss increased to $1.13M from $567K YoY
• Operating expenses rose to $2.1M from $1.1M YoY
• Higher advertising and promotion expenses (+$454K)
• Increased interest and bank charges (+152K)

Vancouver, British Columbia--(Newsfile Corp. - August 20, 2025) - Stardust Solar Energy Inc. (TSXV: SUN) (OTCQB: SUNXF) (FSE: 6330) a leading North American franchisor of renewable energy installation services, today announced its unaudited interim financial results for the second quarter ended June 30, 2025.

On an IFRS basis, the Company reported year-to-date revenue of $2.21 million, an increase of 13% compared to the prior year period, and gross profit of $1 million, up from $0.54 million in Q2 2024. Gross margin increased from approximately 28% to 45%, which management attributes to operating leverage in its franchise and training model, as well as cost controls.

The Company also reported an increase in project backlog of $2.52 million in newly signed contracts during Q2 2025, a 69% increase compared to $1.49 million in new contracts signed in Q2 2024. These new contracts bring the year to date backlog total to $3.2 million. The Company project backlog represents the total dollar value of solar projects across Stardust Solar's franchise network that have not yet been executed and is a non-IFRS measure that management uses as an indicator of network activity. See "Non-IFRS Measures", below.

Q2 2025 Highlights (vs. Q1 2025)

• Revenue: $1.21M, up 21% from $1M.
• Gross Profit: $509K, up 5% from $486K.
• Operating Expenses: $985K, down $152K (-13%), despite higher revenue.
• Operating Loss: ($475K), an improvement of $176K from ($651K).
• Interest & Bank Charges: $63K, down 47%.
• Bad Debt Expense: $18K, down 67%.

Revenue changes reflected contributions from multiple sources: product sales were up 27% sequentially, training and exam administration revenue increased 39%, and franchise fees increased 9%.

Year-to-Date 2025 Results (six months ended June 30, 2025 vs. 2024)

• Total Revenue: $2.21M, up $260K (+12%).
• Gross Profit: $1M, up $454K (+84%).
• Direct Costs: $1.21M, down $194K (-14%).
• Operating Loss: ($1.13M) vs. ($567K), reflecting increased investment in growth initiatives.

Revenue growth was led by an increase in franchise fees ($696K vs. $253K, +175%) and training revenue (+28%). Direct costs declined year-over-year. Operating expenses rose to $2.1M (from $1.1M), primarily due to higher advertising and promotion expenses (+$454K), non-cash share-based compensation (+$259K), and interest and bank charges (+152K).

Balance Sheet (as of June 30, 2025)

• Current Assets: $1.28M, compared to $594K a year earlier, reflecting higher accounts receivable associated with increased sales.
• Total Liabilities: $1.75M, down $976K (-36%) since December 31, 2024, and down $11K (-1%) since March 31, 2025.
• The Company repaid certain loans and convertible borrowings during the period, which reduced debt and interest expenses.

Franchise Growth and Market Expansion

Stardust Solar's franchise network continued its expansion during the quarter, growing from 83 territories at the start of 2025 to 96 territories, including operations in Canada, the United States, and Antigua & Barbuda. Management expects the network to surpass 100 territories by year-end 2025, positioning Stardust as one of the fastest-growing renewable energy franchisors in North America.

Management Commentary

"Q2 2025 was an incredibly strong quarter for Stardust Solar," said Mark Tadros, Founder and CEO of Stardust Solar. "We reported 13% year-over-year revenue growth, nearly doubled gross profit, and higher gross margins, while significantly reducing liabilities and lowering quarterly operating expenses. As well, our project backlog reached its highest level to date, reflecting increased activity across the franchise network. Although year-over-year operating expenses are higher due to deliberate investments in marketing, franchise development, and retention, we believe that these initiatives are fueling expansion and are translating into stronger performance across our network."

Strategic Outlook

Looking ahead, Stardust Solar intends to build on this momentum by expanding its franchise network beyond 100 territories, supported by exclusive product partnerships, certified training programs, and a growing pipeline of clean energy demand across North America. Management believes these initiatives will continue to drive top-line growth, margin expansion, and long-term shareholder value.

About Stardust Solar:

Stardust Solar is a North American franchisor of renewable energy installation services, specializing in solar panels (PV), energy storage systems, and electric vehicle supply equipment. The Company equips entrepreneurs with branded business management services, cutting-edge equipment, and comprehensive support, including marketing, sales, engineering, and project management. With franchises across Canada and the United States, Stardust Solar drives the adoption of clean energy solutions that boost economic development and create a more sustainable future.

Media and Investor Contacts:

Steve Rickaby
Communications and Investor Relations
Phone: 1-672-472-1345
Email: steve@stardustsolar.com
Website: www.stardustsolar.com

Disclaimer:
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

The TSX Venture Exchange Inc. has neither approved nor disapproved the contents of this press release.

Caution Regarding Forward-Looking Information

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of applicable Canadian securities legislation. Forward-looking statements in this news release include, but are not limited to, statements with respect to: management's expectations regarding franchise expansion (including the potential to exceed 100 territories by year-end 2025), anticipated growth in revenue and margins, system-wide sales, future demand for clean energy solutions, the impact of sales and marketing initiatives, and the Company's strategic outlook.

Forward-looking statements are based on management's current expectations and assumptions, including assumptions regarding franchise sales activity, regulatory approvals, operating capacity, customer demand, market conditions, financing availability and the competitive environment. Although the Company believes that the expectations and assumptions reflected in such forward-looking statements are reasonable, there can be no assurance that they will prove correct.

Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company's control, that could cause actual results, performance, or achievements to differ materially from those expressed or implied in such statements. These risks and uncertainties include, but are not limited to: risks relating to franchise sales and renewals, the availability of qualified personnel, regulatory risks, economic conditions, competition, supply chain constraints, reliance on third-party partners, the effectiveness of cost management initiatives, and other factors disclosed in the Company's public filings available on SEDAR+.

The financial figures presented in this release are unaudited, are derived from summary information only, and may not contain all disclosures required by International Financial Reporting Standards. Readers are cautioned that they should refer to the Company's full unaudited interim financial statements and related MD&A for the six-month period ended June 30, 2025, available under the Company's profile on SEDAR+, for complete information.

Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not undertake to update or revise any forward-looking statements contained in this release, except as required by applicable securities laws. Forward-looking statements are expressly qualified in their entirety by this cautionary statement.

Non-IFRS Measures

In this news release the Company makes reference to "Project Backlog", which is a non-IFRS financial measure. The Company believes that this non-IFRS financial measure is a useful performance indicator for investors with regard to operating and financial performance of the Company. Project Backlog is not a generally accepted financial measure under IFRS and does not have a standardized meaning prescribed by IFRS. Investors are cautioned that project backlog, and any other non-IFRS financial measures, should not be considered as an alternative to revenue, earnings or cash flow, as determined in accordance with IFRS. As there is no standardized method of calculating project backlog, our method of calculating project backlog - which includes all signed contracts which have not yet been executed - may differ from the methods used by other entities and, accordingly, our use of project backlog may not be directly comparable to similarly titled measures used by other entities. Accordingly, this non-IFRS financial measure is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/263196

FAQ

What were Stardust Solar's (SUNXF) Q2 2025 revenue and profit figures?

Stardust Solar reported Q2 2025 revenue of $2.21M (up 13% YoY) and gross profit of $1M (up 84% YoY), with gross margins improving from 28% to 45%.

How many franchise territories does Stardust Solar currently operate?

Stardust Solar expanded its franchise network to 96 territories across Canada, the United States, and Antigua & Barbuda, with plans to exceed 100 territories by year-end 2025.

What is Stardust Solar's current project backlog value?

The company reported a project backlog increase of $2.52M in newly signed contracts during Q2 2025 (up 69% YoY), bringing the year-to-date backlog total to $3.2M.

How did Stardust Solar's operating expenses change in Q2 2025?

Operating expenses decreased by 13% quarter-over-quarter to $985K, though year-over-year expenses increased to $2.1M from $1.1M due to growth investments.

What improvements did Stardust Solar make to its balance sheet in Q2 2025?

The company reduced total liabilities by 36% since December 2024 through loan repayments and convertible borrowings, while current assets increased to $1.28M from $594K a year earlier.