Shoals Technologies Group, Inc.

Revenue in Q2 2026 was $163.4 million, up 47% year over year. Gross profit was $49.5 million versus $41.2 million in the prior-year quarter; GAAP gross margin was 30.3% and adjusted gross margin was 30.6%. Adjusted diluted EPS was $0.12, up $0.02 from the prior year period, and adjusted EBITDA was $31.6 million versus $24.7 million, up 27.9% year over year. For Q3 2026, Shoals guided revenue to $150 million to $170 million and adjusted EBITDA to $32 million to $37 million. For full-year 2026, it reaffirmed revenue guidance of $600 million to $640 million, adjusted EBITDA of $118 million to $132 million, cash flow from operations of $65 million to $85 million, capex of $20 million to $30 million, and interest expense of $8 million to $12 million.

Brandon Moss said the quarter was in line with expectations and emphasized that underlying demand remains intact, especially in U.S. utility-scale solar. He highlighted record quotes, backlog, and continued diversification into Australia, BESS, OEM, and data-center-related products. His tone was upbeat and confident, especially around Shoals’ competitive position, new product launches, and the company’s ability to execute at its new facility.

Dominic Bardos walked through the quarter’s numbers and said gross profit rose to $49.5 million, adjusted EBITDA to $31.6 million, and adjusted diluted EPS to $0.12. He noted SG&A was $28.5 million, cash from operations was $6.8 million, cash and equivalents were $15.7 million, and net debt was $181.1 million with net debt-to-adjusted EBITDA at 1.6x. He also said Shoals temporarily expanded its revolver by $50 million and reiterated full-year cash flow from operations of $65 million to $85 million, capex of $20 million to $30 million, and interest expense of $8 million to $12 million.

Analysts focused on what could drive upside to guidance, margin trajectory, the new TerraFlow and ON.energy relationships, and the implications of tariffs and ITC litigation. Management said guidance was reiterated because the company already raised it in Q1 and wants targets that are “reasonable and achievable,” while also pointing to strong bookings, a $1 billion quote pipeline, and potential for more BESS orders later in the year. On margins, management said mix, new-factory efficiencies, and lower legal expense after the third-quarter Voltage district court case should help, while on TerraFlow they said revenue should begin in 2027 and there will be no 2026 impact.