Pineapple Energy Reports $10.1 Million Net Loss in Q1 2024

Pineapple Energy reported a $10.1 million net loss in Q1 2024 due to unfavorable market conditions and project delays in Hawaii and New York. The company's revenue declined 40.09% quarter-over-quarter, with a significant debt burden and liquidity concerns.

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Aqsa Younas Rana
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Pineapple Energy Reports $10.1 Million Net Loss in Q1 2024

Pineapple Energy Reports $10.1 Million Net Loss in Q1 2024

Pineapple Energy Inc. (NASDAQ: PEGY), a company specializing in solar and battery storage solutions, reported a net loss of $10.1 million or $0.26 per diluted share in the first quarter of 2024. This result falls short of profitability targets due to unfavorable market conditions and project delays in Hawaii and New York.

Why this matters: The struggles of Pineapple Energy highlight the challenges faced by companies in the renewable energy sector, which is critical to addressing climate change and reducing carbon emissions. As the demand for clean energy solutions continues to grow, the financial performance of companies like Pineapple Energy can have a significant impact on the overall transition to a more sustainableenergy landscape.

The company's HEC business in Hawaii experienced a decline in revenue, both year-over-year and versus budget, due to the expiration of a lucrative battery bonus program in December 2023. The confusion over the timing and details of the successor tariffs caused uncertainty and lack of action from customers throughout the first quarter of 2024.

In New York, the SUNation business also experienced misses on both the residential and commercial sides, year-over-year and versus budget. The commercial business unit was the most affected, with several projects slipping due to extenuating circumstances.

Despite the challenges, Pineapple Energy has made efforts to improve operational efficiency and increase sales. CEO Kyle Udseth stated, "We are committed to getting profitability back on track in Q2 and beyond. One quarter of underperformance doesn't knock us off the longer-term path or fundamentally change our positioning in the marketplace."

Key financial metrics for Pineapple Energy in Q1 2024 include a 43.42% revenue growth over the last twelve months, a 40.09% quarterly revenue decline, a market capitalization of $3.88 million, and significant debt burden with concerns about making interest payments and financial stability. The company's liquidity is also a concern, with short-term obligations exceeding liquid assets.

Analysts do not anticipate Pineapple Energy will be profitable this year, as the company has not been profitable over the last twelve months. The stock price has experienced a significant decline, falling by 96.44% over the last year. Pineapple Energy is focusing on growth through acquisitions and fundraising to support its capital requirements.

CFO Eric Ingvaldson emphasized that the company's forward-looking statements are subject to risks and uncertainties, stating, "We are not obliged to revise or update any forward-looking statements except as may be required by law." Despite the challenges faced in Q1 2024, Pineapple Energy remains committed to improving its financial performance and positioning in the solar and battery storage market.

Key Takeaways

  • Pineapple Energy reports $10.1M net loss in Q1 2024 due to market conditions and project delays.
  • Revenue growth of 43.42% over last 12 months, but 40.09% quarterly decline.
  • Company faces liquidity concerns, significant debt burden, and short-term obligations.
  • Analysts don't expect profitability in 2024, with stock price down 96.44% over last year.
  • Pineapple Energy focuses on growth through acquisitions and fundraising to support capital requirements.