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)

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 $4 million, providing solid visibility heading into 2026. This follows the Company's strongest quarter to date for the three months ended September 30, 2025, in which Stardust Solar delivered record revenue of $1.78 million (+99% YoY), a gross margin of 44% (vs. 31% in Q3 2024), and its first-ever EBITDA-positive quarter.

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 also 44% (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 a 39% loss margin in Q2 to 1% 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 $340K at quarter-end (vs. $171K at June 30, 2025).

• Operating cash flow: Positive $131K - 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, up 40% from $2.85M in the prior-year period.

• TTM revenue: Approximately $4.8M, representing a 32% 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 $4.4 million. The narrowing of our quarterly net loss to $25,000 reflects disciplined cost management and stronger system-wide performance. Our priorities remain converting backlog into revenue, supporting franchise partners as they grow, and maintaining a balanced approach to capital allocation."

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?

Stardust Solar reported $1.78M revenue for Q3 2025, up 99% YoY.

How large is Stardust Solar's project backlog as of Sept 30, 2025 (SUNXF)?

Total backlog was $4.4M as of September 30, 2025.

Did Stardust Solar (SUNXF) generate positive operating cash flow in Q3 2025?

Yes — operating cash flow was +$131K in Q3 2025, the company's first positive quarter.

What margin and profitability milestones did SUNXF report for Q3 2025?

Gross margin improved to 44% and the company achieved its first EBITDA-positive quarter (EBITDA $16,293).

What growth targets did Stardust Solar announce for 2026 (SUNXF)?

The company expects to add approximately 25–50 new franchise territories in 2026 and increase commercial project activity.

How much in new contracts did Stardust Solar sign in Q3 2025 (SUNXF)?

Signed contracts totaled $2.55M in Q3 2025, a +206% YoY increase.