| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 54.86 | 24.6% | 18.8% |
| Total Income | 54.86 | 24.6% | 18.8% |
| Expenditure | 78.31 | 14.9% | 11.5% |
| PBT | 6.89 | 48.5% | 130.7% |
| Net Profit | 6.89 | 31.2% | 130.7% |
| OPM | -42.76% | 16.39pp | 38.73pp |
| NPM | 12.57% | 5.36pp | 45.77pp |
| EPS | 0.05 | 25.0% | 117.9% |
SunPower Reports Q2'26 Results with Q3'26 Outlook
28 Jul 2026 · 28 Jul, 5:32 pm
Summary
SunPower reported preliminary Q2'26 revenue of $56.0 million, down $16.8 million from the prior quarter. Despite the revenue decline, the company managed a non-GAAP operating loss of $12.5 million, slightly better than Q1'26, due to a significant $19.7 million reduction in operating expenses, including $7.1 million in fixed cost savings. Management attributed the revenue miss to delays in the SunPower Direct Division, caused by quality control issues that have since been addressed with new management. Looking ahead, SunPower is optimistic for Q3'26, forecasting revenue above $75 million and a 90% reduction in operating loss, supported by strong bookings and further cost-cutting measures.
Key Highlights
- 1
SunPower reported preliminary Q2'26 revenue of $56.0 million, a decrease of $16.8 million from Q1'26.
- 2
The company experienced a non-GAAP operating loss of $12.5 million in Q2'26, which was slightly better than the Q1'26 loss.
- 3
Operating expenses decreased by $19.7 million in Q2'26, with a $7.1 million reduction in fixed costs.
- 4
The Q2'26 revenue decline was primarily attributed to the SunPower Direct Division due to a backlog of 1,105 delayed jobs.
- 5
SunPower expects Q3'26 revenue to exceed $75 million and reduce its operating loss by 90% from the Q2'26 figure.
- 6
The company has achieved $13.0 million in permanent cost reductions, with an additional $5.9 million planned for Q3'26.
Management Comments
T.J. Rodgers
The Q2’26 $16.8 million revenue drop was factors worse than any result New SunPower has ever posted. And was caused primarily by our SunPower Direct Division. The relevant questions are why did we fail to make our numbers; what will we change to prevent the problem in the future; and when will we return to profitability? The Direct Division revenue miss was caused in turn by a pile-up of about 1,105 jobs delayed at the end of the line in Q2’26. The principle is simple: double the inventory of any operation and for a given effort, the inventory will move half as fast. These delayed jobs have signed contracts, are in operation now and will clear the line this quarter, releasing about $15.3 million in revenue (which I expected to ship in Q2, hence I made no pre-announcement). In short form, we had the orders, the designs, and the financing, but chose not to submit the jobs for funding due to violations of our quality specifications for funding package submissions, such as blurry photographs or a missing utility bill or – worse – re-design and re-permit. Fortunately, our Quality group held its ground and did not allow any defective jobs to be submitted for funding. Our strong quality policy is why SunPower’s New Homes division has not suffered even one rejection of its financing submissions for over 70 weeks by its financial partner, Palmetto LightReach – a feat that earned SunPower the LightReach Platinum Partner Award in 2026. The Q2’26 quality problems were self-induced by the SunPower Direct management team that knowingly and surreptitiously violated our quality specifications. After that discovery, I replaced the top two and one-half tiers of that management team from Ambia, a startup we acquired, and started over with SunPower veterans Kapil Rai and Steve Erickson. The benefit of eliminating that management team will become visible in Q3.
Informational and educational content only. Not investment advice.