Solar technology, services and installation company SunPower Inc. reported preliminary financial results for the second quarter of 2026, posting revenue of $56.0 million, down from $72.8 million in the first quarter, as project delays in its Direct Division weighed on performance.
The company reported a GAAP operating loss of $18.1 million for the quarter, compared with a loss of $19.2 million in Q1 2026. On a non-GAAP basis, the operating loss improved slightly to $12.5 million, while operating expenses declined by $19.7 million quarter over quarter following cost-reduction initiatives.
Gross profit for the quarter stood at $26.2 million, with a GAAP gross margin of 47%, compared with 62% in the previous quarter. SunPower ended Q2 with a cash balance of $4.0 million, below its internal minimum target of $10 million, after opting not to raise capital at what it described as a low share price.
According to the company, the revenue decline was primarily driven by approximately 1,105 delayed residential solar projects in its SunPower Direct Division. These projects had signed customer contracts but were not submitted for funding because they failed to meet the company’s quality standards, including incomplete documentation, poor-quality photographs and permitting-related issues.
Chief Executive Officer T.J. Rodgers said the delayed projects represent approximately $15.3 million in revenue that the company expects to recognize during the third quarter as they move through the installation pipeline.
Rodgers also announced significant management changes within the Direct Division, stating that senior leadership associated with the acquired Ambia business had been replaced following the discovery of quality control violations. The division will now be led by SunPower veterans Kapil Rai and Steve Erickson.
Looking ahead, SunPower expects Q3 2026 revenue to exceed $75 million while reducing its non-GAAP operating loss by approximately 90%, targeting a loss of less than $1.0 million.
The company also plans to achieve an additional $5.9 million in quarterly fixed cost reductions during Q3 through further restructuring and organisational right-sizing, building on the $7.1 million in quarterly fixed cost savings already implemented earlier this year.
SunPower said it remains focused on strengthening its premium solar offerings, including its Monolith and Monolith II solar panels and high-margin residential installation business, as it works toward restoring profitability in the coming quarters.
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