Pineapple Energy Inc, a key player in sustainable solar energy and backup power, provided an update on its ongoing business activities following the release of its second-quarter 2024 earnings report. The company is addressing the impact of industry-specific challenges on its performance, with signs of recovery emerging.
Scott Maskin, Interim CEO of Pineapple Energy, acknowledged the challenges faced in the renewable energy sector across the United States, which have affected the company’s operations. “While we are not satisfied with some metrics in our recent earnings report, such as the performance of our battery attachment rate in Hawaii and delays in our commercial projects in New York, we are seeing these challenges begin to diminish,” Maskin said.
Maskin also noted that the company has incurred both cash and non-cash expenses related to ongoing corporate restructuring efforts. Despite these setbacks, Maskin expressed optimism for the latter half of the year, particularly in the commercial sector. He stated that the company’s restructuring efforts are expected to lead to reduced overhead and lower operating expenses, positioning Pineapple Energy for improved performance.
The company highlighted the strong performance of its New York subsidiary, SUNation, during the first six months of 2024. SUNation reported a 22% year-over-year increase in systems sold, a 21% increase in overall kilowatts sold, and a 19% rise in systems sold through client referrals. Additionally, SUNation saw an 11% increase in total invoice value per sale and a 4% reduction in client acquisition costs. Operating expenses were down by $650,000, and gross margins improved by 4.8% year over year.
Maskin noted that while commercial and industrial solar projects typically take longer to materialize than residential projects, several delayed commercial projects are now underway. The financial impact of these projects is expected to be reflected in the company’s results starting in the third quarter. He also highlighted a 46% increase in commercial contract sales during the second quarter compared to the same period last year, signaling growth in this segment of the business.
Despite these positive developments, Pineapple Energy reported quarterly revenues of $13.5 million, a 37% decline in gross profit compared to Q2 2023, and a 41% increase in operating losses. The company posted a net loss of $5.6 million for the quarter.
Maskin expressed gratitude to shareholders for their continued support and noted that the increased share authorization announced in July provides the company with potential access to capital markets to fund future growth initiatives. This authorization is expected to have a positive impact on accounting for certain outstanding debt and capital instruments in the third quarter and beyond.
Reflecting on the company’s journey, Maskin emphasized Pineapple Energy’s resilience in navigating the challenges of the solar industry. “We are focused on cleaning up every obstruction that prevents us from executing our corporate strategy. We remain committed to improving corporate governance, aligning operations, and refining our strategy to address long-term market opportunities,” he said.
Maskin concluded by expressing confidence in Pineapple Energy’s future, stating, “We believe that Pineapple Energy is uniquely positioned to emerge as a national industry leader. I have never been more excited about the future and our place in it.”
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