iSun, Inc.

iSun reported Q3 2023 revenue of $27.9 million, up 47% from $19 million in Q3 2022. Year-to-date revenue was $70.3 million, up $19.7 million, or 39%, from the same period in 2022. Gross profit was $5.4 million, up 50% from $3.6 million, and gross margin was 19.45%, up 45 basis points from 19% a year ago. Operating loss improved to $1.8 million from a $4.9 million loss, net loss was $2.2 million, or $0.07 per share, versus $4.9 million, or $0.36 per share, and adjusted EBITDA was a loss of $0.5 million, or $0.02 per share. Year to date, gross margin was 21.2%, operating loss was $6.2 million, net loss was $7.8 million, and adjusted EBITDA was a loss of $2.3 million. Backlog was $161.8 million at September 30, 2023, and management said it added $27 million of new business in Q3 and $67 million year to date. Full-year 2023 revenue guidance was reaffirmed at $95 million to $100 million, which management said implies 24% to 31% growth over 2022, along with gross margin expansion.

Jeff Peck said the quarter showed iSun’s platform strategy is working: the company is scaling revenue while cutting costs and improving profitability. He highlighted strength in C&I, continued customer satisfaction and referrals in residential, and ongoing opportunities in EV infrastructure and utility development. His tone was upbeat and confident, emphasizing that diversification and new partnerships should support growth into 2024 and beyond.

John Sullivan focused on the financial progress from operating leverage and cost control. He cited Q3 gross profit of $5.4 million, gross margin of 19.45%, operating expenses down about $1.3 million year over year in the quarter, and YTD operating expenses down $5.6 million, or 21%, while revenue rose 39%. On the balance sheet, total debt fell to $9.4 million from $13.6 million at year-end 2022, cash was $5.5 million, and the company signed a term sheet for a non-dilutive $8 million term loan intended to retire the convertible note and add working capital, which he said should improve working capital by about $6 million at closing.

Analysts focused on the new term loan, asking whether it would retire the convertible notes in full and what the terms would be; management said that is the primary use of proceeds and that the deal should close toward the end of November or the first week of December, but final terms were not yet ready to disclose. Questions also centered on why residential demand is softer than C&I and whether higher rates could cause backlog cancellations; Peck said residential saw initial sticker shock from higher loan rates but demand has picked up since August, while C&I projects are longer-cycle and IRA provisions may help offset rate pressure. On utility, management said the 1.6 gigawatts under development are multiple projects with timing that is difficult to predict, and construction is generally about a year.