Zeo Energy Corp. reported third‑quarter 2025 financial results on November 14, 2025, showing net revenue of $23.9 million, a 21.6 percent increase from the $19.7 million earned in the same quarter a year earlier and a 32 percent jump from $18.5 million in Q2 2025. The company posted a net loss of $1.9 million, a significant narrowing from the $2.9 million loss reported in Q3 2024, and an adjusted EBITDA of $2.0 million, up from a $0.2 million loss in the prior year. Gross profit margin expanded to 57.4 percent, up from 48.8 percent, reflecting higher average selling prices and improved cost efficiency.
Revenue growth was driven by robust demand in the residential solar segment and the company’s expansion into Virginia, where new contracts added $2.5 million to the quarter. The mix shift toward higher‑margin commercial and utility‑scale projects, coupled with a 5 percent increase in average selling price, helped lift overall revenue. CEO Tim Bridgewater noted that the company’s focus on vertical integration and cost discipline has allowed it to capture pricing power even as the broader residential market faces headwinds.
The jump in gross margin was largely attributable to the higher average selling price and a 3 percent reduction in direct material costs, which offset the impact of higher labor expenses. Operating leverage also improved as fixed costs were spread over a larger revenue base, contributing to the 8.2 percent margin relative to revenue. Management emphasized that the margin expansion signals stronger execution and a more favorable product mix.
The narrowing net loss reflects the elimination of a $1.0 million one‑time restructuring charge that was recorded in Q3 2024, as well as disciplined operating expenses. While the company remains in the red for the nine‑month period—reporting a $17.9 million net loss versus $8.7 million in 2024—its quarterly loss trajectory is improving, indicating that the company is moving toward profitability as it scales its operations.
On August 8, 2025, Zeo completed the acquisition of Heliogen, Inc. in an all‑stock transaction that valued Heliogen shareholders at approximately $10 million in Zeo Class A common stock and transferred $13.6 million of net cash to Zeo. The deal adds long‑duration storage technology to Zeo’s portfolio and positions the company to pursue large commercial and data‑center projects, a strategic shift that CEO Bridgewater described as “expanding our reach from individual homes to massive industrial energy systems.”
For Q4 2025, Zeo expects net revenue to be consistent with Q3, citing stable seasonal demand and ongoing Virginia expansion. The company also reiterated its focus on cost discipline and strategic investments in high‑return verticals, signaling confidence in maintaining profitability while navigating the challenging residential market. Bridgewater added that the Heliogen acquisition will accelerate Zeo’s transition to a comprehensive clean‑energy platform across residential, commercial, and utility‑scale segments.
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