SUNation Energy Q2 revenue falls 38% after solar tax credit expires

SUNation Energy, Inc. (Nasdaq: SUNE) reported second-quarter 2026 revenue of $8.2 million, down 38% from $13.1 million in the same period a year earlier, as the expiration of the Section 25D federal residential solar tax credit under the One Big Beautiful Bill Act weighed on demand.

The company posted a net loss of $3.3 million for the quarter ended June 30, 2026, compared with a net loss of $9.6 million in the second quarter of 2025. The prior-year figure included a $7.5 million non-cash warrant fair-value charge that did not recur. Gross profit was $2.1 million, down 56% year over year, with a gross margin of 26.1% versus 37.0% in the year-ago quarter.

Total operating expenses fell 24% to $5.3 million from $7.0 million a year earlier, including $571,000 in one-time transaction costs related to a proposed merger with Suniva, Inc. Selling, general and administrative expenses declined 35% year over year to $4.2 million.

Commercial revenue rose 23% year over year to $1.72 million, partially offsetting residential weakness. Cash and cash equivalents stood at $3.1 million at June 30, 2026, up from $1.7 million at March 31, 2026, following a $2.7 million private placement completed June 7, 2026, at $1.13 per share. Total liabilities declined to $20.4 million from $23.9 million at December 31, 2025.

On June 5, 2026, SUNation entered into a definitive merger agreement with Suniva, Inc., a solar manufacturer. Under the agreement, Suniva would become a wholly owned subsidiary of SUNation, and the combined company is expected to operate under the Suniva name. Closing is targeted for the fourth quarter of 2026, subject to regulatory approvals and customary closing conditions.

CEO Scott Maskin said in a statement that residential demand remained under pressure and that the company was focused on cost reduction, liquidity, and diversification across commercial, service, and storage segments. The financial results are based on the company's press release.

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