US-based residential solar provider, SunPower, has revised its full-year 2023 financial guidance, attributing the changes to diminished consumer demand and delayed revenue recognition resulting from extended cycle times.
The company's Q3 2023 financial report reveals a net loss of US$32 million, a significant shift from the net income of US$138.4 million recorded in Q3 2022, and a net loss of US$30.3 million in Q2 2023. Over the first three quarters of this year, SunPower's net loss reached US$115.1 million, declining from a net income of US$36.4 million.
The adjusted earnings before interest, taxes, depreciation, and amortization (Adjusted EBITDA) for Q3 stood at -US$0.78 million, down from US$25.3 million in Q3 2022. The first nine months of this year saw a decrease in adjusted EBITDA, amounting to -US$10 million, down from US$37 million for the same period in the previous year.
In Q3, the number of new customers added by SunPower decreased. The company welcomed 18,800 new customers, starting Q4 with a backlog of 18,400 retrofit customers and 38,000 new home customers. This contrasts with the addition of 20,400 customers in the previous quarter.
Despite these challenges, revenue in Q3 witnessed a dip, declining to US$432 million in 2023 from US$476.3 million in Q3 2022 and US$463.9 million in Q2 2023. However, revenue for the first three quarters of this year increased to US$1.33 billion from US$1.25 billion in the same period last year.
Peter Faricy, CEO of SunPower, acknowledged the ongoing industry-wide softness but noted positive signs in September and early October. These positive signs included the highest-ever month for storage sales, robust growth in SunPower Financial, and an improvement in consumer demand. Sales of SunPower's SunVault battery storage system increased by 163% quarter-on-quarter, making September the company's largest-ever month for battery sales.
Looking ahead, SunPower adjusted its guidance for a net loss for this year to be between -US$165 million and -US$175 million, a decrease from the previous range of -US$70 million to -US$90 million announced in the Q2 financial results. The updated guidance on adjusted EBITDA was revised to -US$25 million to -US$35 million, down from the previous range of US$55 million to US$75 million.
Furthermore, SunPower lowered its residential customer forecasts for this year, now estimating up to 80,000 customers, down from the earlier projection of up to 90,000.
Faricy emphasized the company's focus on cost reduction and prudent cash management, aiming to strengthen and enhance resilience to changing market conditions. This strategic approach is designed to ensure the company's sustainability and adaptability in evolving market landscapes.
Notably, prior to the recent financial results announcement, SunPower faced class action lawsuits alleging that the company misled investors by not disclosing inaccurate cost of revenue and inventory metrics. On October 24, SunPower revealed an internal control issue, acknowledging a preliminary overstatement of the value of consignment inventory of microinverter components at certain third-party locations in the range of approximately US$16-US$20 million during the preparation of financial statements.