Stardust Solar Sets 2026 Outlook Backed by $4M Backlog and Strengthening Financial Metrics
Rhea-AI Summary
Stardust Solar (OTCQB: SUNXF) reported a record quarter ended September 30, 2025, with $1.78M revenue (+99% YoY), a 44% gross margin (vs. 31% in Q3 2024) and its first EBITDA-positive quarter (EBITDA $16,293). Signed contracts in Q3 reached $2.55M (+206% YoY), lifting total backlog to $4.4M as of Sept 30, 2025. Operating cash flow was +$131K and cash balance was $340K at quarter-end. For the nine months ended Sept 30, 2025, revenue was $3.99M (40% YoY) and trailing twelve-month revenue ~$4.8M (+32%).
The company expects to add 25–50 franchises in 2026, expand commercial projects, evaluate M&A, and prioritize converting backlog into revenue.
Positive
- Record revenue $1.78M (+99% YoY)
- Gross margin improved to 44% from 31% YoY
- First EBITDA-positive quarter (EBITDA $16,293)
- Signed contracts $2.55M in Q3 (+206% YoY)
- Backlog increased to $4.4M as of Sept 30, 2025
- Operating cash flow +$131K (first positive quarter)
Negative
- Operating expenses increased 14% YoY
- Quarter-end cash balance only $340K
- Company remains net loss for quarter ($25,018)
News Market Reaction
On the day this news was published, SUNXF gained 3.80%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
No peer stocks with momentum or same-day headlines were reported, indicating the 5.52% move and elevated volume are company-specific rather than sector-driven.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 02 | Outlook & backlog | Positive | +3.8% | Raised 2026 outlook with record backlog and improving profitability metrics. |
| Oct 28 | Earnings update | Positive | +39.6% | First EBITDA-positive quarter with record revenue and stronger margins. |
| Oct 07 | Franchise expansion | Positive | -14.8% | Reached 100 franchises globally and reported rising signed contract backlog. |
| Aug 20 | Q2 2025 earnings | Positive | -19.4% | Reported revenue and gross profit growth plus backlog and territory expansion. |
| Aug 08 | Governance change | Neutral | -11.4% | Adopted new by-law with advance notice provisions for director nominations. |
Shares have reacted positively to strong financial updates but showed negative reactions to some growth and governance news, indicating mixed follow-through on otherwise constructive announcements.
Over the last six months, Stardust Solar reported several growth milestones. Q2 2025 earnings on Aug 20 showed higher revenue and margins but the stock fell. Franchise expansion to 100 territories on Oct 7 also saw a negative move. In contrast, the first EBITDA-positive quarter on Oct 28 drove a 39.59% gain. Today’s outlook update on Dec 2, highlighting a $4.4M backlog and stronger metrics, followed with a more moderate 3.8% rise.
Market Pulse Summary
This announcement highlighted record Q3 2025 revenue of $1.78M (+99% YoY), a stronger 44% gross margin, and the company’s first EBITDA-positive quarter. Backlog reached $4.4M as of September 30, 2025, supported by $2.55M in new contracts. Management outlined plans for 2026 franchise growth, commercial projects, and M&A evaluation. Investors may focus on cash of $340K, continued positive operating cash flow, and progress converting backlog into revenue.
Key Terms
ebitda financial
ifrs financial
AI-generated analysis. Not financial advice.
Vancouver, British Columbia--(Newsfile Corp. - December 2, 2025) - Stardust Solar Energy Inc. (TSXV: SUN) (OTCQB: SUNXF) (FSE: 6330) today announced that its signed project backlog has exceeded
2026 Growth Outlook
Organic Franchise Expansion:
Stardust Solar expects to add approximately 25-50 new franchise territories in 2026, supported by continued demand for residential and commercial solar solutions. As the franchise network scales, management anticipates improved system-wide operating leverage. The Company has also expanded internationally, with new locations established in the Caribbean and Zambia, demonstrating the adaptability and scalability of the franchise model.
Commercial Project Growth:
With internal expertise now in place to manage commercial installations, the Company anticipates a meaningful increase in commercial project activity in 2026. This aligns with broader market demand for distributed energy solutions in Canada, United States and internationally.
Mergers & Acquisitions:
The Company continues to evaluate acquisition opportunities that complement its existing operations. Several potential transactions are currently under review as part of the Company's growth strategy for 2026.
Q3 2025 Financial and Operational Highlights (Three months ended September 30, 2025)
Record revenue:
$1.78M (+99% YoY), the highest quarterly revenue in Company history.Gross margin:
44% (vs.31% in Q3 2024); year-to-date margin also44% (vs.29% in YTD 2024).EBITDA:
$16,293 , representing the Company's first EBITDA-positive quarter.Net loss improvement: Net loss narrowed to
$25,018 (loss per share:$0.00) , improving from a39% loss margin in Q2 to1% in Q3.Operating expenses:
$812,628 (+14% YoY), reflecting higher advertising, promotional, professional, and administrative costs associated with growth and public-company requirements.Record signed contracts:
$2.55M of new contracts in Q3 (+206% YoY), increasing total backlog to$4.4M as at September 30, 2025 (+38% vs. June 30, 2025).Liquidity: Cash and cash equivalents of
$340 K at quarter-end (vs.$171 K at June 30, 2025).Operating cash flow: Positive
$131 K - the Company's first positive operating cash flow quarter since going public.
Year-to-Date and Trailing Twelve-Month Results
Nine months ended September 30, 2025, revenue:
$3.99M , up40% from$2.85M in the prior-year period.TTM revenue: Approximately
$4.8M , representing a32% increase from ~$3.6M in the comparable 12-month period.
"Q3 demonstrates the scaling potential of our model," said Mark Tadros, Founder & CEO. "We delivered record revenue, improved margins, positive operating cash flow, and a significant increase in signed contracts that expanded our backlog to
Non-IFRS Measures
This release references non-IFRS measures including "signed contracts" and "backlog." These metrics do not have standardized meanings under IFRS and may not be comparable to those used by other issuers. Backlog represents the aggregate value of solar projects not yet executed across the franchise network and is intended to illustrate network-wide activity and future revenue potential. These measures should not be considered substitutes for IFRS financial results.
About Stardust Solar:
Stardust Solar is a North American franchisor specializing in renewable energy installation services, including solar photovoltaic systems, energy storage, and EV charging infrastructure. The Company provides franchisees with end-to-end business management support, technical training, engineering services, equipment distribution, and project management resources. With operations across Canada, the United States, the Caribbean and Zambia Stardust Solar supports the growing adoption of clean energy solutions while contributing to economic development and long-term sustainability.
Media and Investor Contacts:
Erica Bearss, MBA, DBA (c)
VP of Corporate Communications
Phone: 1-888-620-6733
Email: investors@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.
The information in this news release includes certain information and statements about management's view of future events, expectations, plans and prospects that constitute forward looking statements, including statements relating to the Company's business plans and expected future growth, expected franchise expansions, the outlook of future operations, revenue growth, new opportunities and the demand for the Company's products. These statements are based upon assumptions that are subject to significant risks and uncertainties. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward looking statements. Any number of factors could cause actual results to differ materially from these forward‐looking statements as well as future results. Although the Company believes that the expectations reflected in forward looking statements are reasonable, it can give no assurances that the expectations of any forward looking statements will prove to be correct. Except as required by law, the Company disclaims any intention. It assumes no obligation to update or revise any forward looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward looking statements or otherwise.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/276565
FAQ
What revenue did Stardust Solar (SUNXF) report for Q3 2025?
How large is Stardust Solar's project backlog as of Sept 30, 2025 (SUNXF)?
Did Stardust Solar (SUNXF) generate positive operating cash flow in Q3 2025?
What margin and profitability milestones did SUNXF report for Q3 2025?
What growth targets did Stardust Solar announce for 2026 (SUNXF)?
How much in new contracts did Stardust Solar sign in Q3 2025 (SUNXF)?
