$SHLS

Shoals Technologies Group, Inc.

CIK:0001831651|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenue	$ 163,372	$ 110,841	$ 303,929	$ 191,202
Cost of revenue	113,847	69,639	213,394	121,860
Gross profit	49,525	41,202	90,535	69,342
Operating expenses
General and administrative expenses	28,465	23,064	59,479	44,757
Depreciation and amortization	2,338	2,140	4,616	4,275
Total operating expenses	30,803	25,204	64,095	49,032
Income from operations	18,722	15,998	26,440	20,310
Interest expense	(3,474)	(2,236)	(6,377)	(4,651)
Interest income	268	76	327	194
Litigation settlement expense, net of recoveries	0	0	(5,250)	0
Gain (loss) on sale of assets	0	3,134	(2)	3,134
Foreign currency gain (loss)	(20)	0	(28)	0
Income before income taxes	15,496	16,972	15,110	18,987
Income tax expense	(3,358)	(3,117)	(3,269)	(5,414)
Net income	$ 12,138	$ 13,855	$ 11,841	$ 13,573
Earnings per share of Class A common stock:
Basic (in dollars per share)	$ 0.07	$ 0.08	$ 0.07	$ 0.08
Diluted (in dollars per share)	$ 0.07	$ 0.08	$ 0.07	$ 0.08
Weighted average shares of Class A common stock outstanding:
Basic (in shares)	168,059	167,286	167,808	167,124
Diluted (in shares)	170,023	167,562	169,893	167,238
Common Class A
Earnings per share of Class A common stock:
Basic (in dollars per share)	$ 0.07	$ 0.08	$ 0.07	$ 0.08
Diluted (in dollars per share)	$ 0.07	$ 0.08	$ 0.07	$ 0.08
Weighted average shares of Class A common stock outstanding:
Basic (in shares)	168,059	167,286	167,808	167,124
Diluted (in shares)	170,023	167,562	169,893	167,238

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash Flows from Operating Activities
Net income	$ 11,841	$ 13,573
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	8,732	6,622
Amortization/write off of deferred financing costs	311	311
Equity-based compensation	7,698	5,255
Provision for obsolete or slow-moving inventory	2,245	617
Provision for warranty expense	4,369	256
Deferred taxes	3,269	6,592
Other	3,529	(3,134)
Changes in assets and liabilities:
Accounts receivable	(6,029)	(25,251)
Unbilled receivables	(393)	10,973
Inventory	(97,087)	(1,539)
Other assets	(2,448)	(2,449)
Accounts payable	865	6,099
Accrued expenses and other	10,026	3,937
Warranty liability	(4,090)	(21,463)
Litigation receivable and settlement liabilities	4,308	0
Deferred revenue	18,214	1,338
Net Cash Provided by (Used in) Operating Activities	(34,640)	1,737
Cash Flows from Investing Activities
Purchases of property, plant and equipment	(14,663)	(15,430)
Proceeds from sale of property, plant and equipment	0	5,088
Net Cash Used in Investing Activities	(14,663)	(10,342)
Cash Flows from Financing Activities
Employee withholding taxes related to net settled equity awards	(2,293)	(279)
Proceeds from revolving credit facility	60,000	30,000
Excise taxes on treasury stock transactions	0	59
Net Cash Provided by (Used in) Financing Activities	57,707	(10,220)
Net Increase (Decrease) in Cash and Cash Equivalents	8,404	(18,825)
Cash and Cash Equivalents—Beginning of Period	7,320	23,511
Cash and Cash Equivalents—End of Period	15,724	4,686
Supplemental Cash Flows Information:
Cash paid for interest	5,628	4,255
Cash paid (refunded or received) for taxes	(948)	(183)
Non-cash investing and financing activities:
Purchased equipment not yet paid for	241	3,110
Revolving Credit Facility
Cash Flows from Financing Activities
Repayments of revolving credit facility	$ 0	$ (40,000)

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current Assets
Cash and cash equivalents	$ 15,724	$ 7,320
Accounts receivable, net	134,822	128,793
Unbilled receivables	22,526	22,133
Inventory	184,720	89,878
Insurance receivable	191	0
Other current assets	11,475	9,762
Total Current Assets	369,458	257,886
Property, plant and equipment, net	63,265	53,302
Goodwill	69,941	69,941
Other intangible assets, net	29,706	33,499
Deferred tax assets	434,758	438,027
Right-of-use operating lease assets	43,946	46,044
Other assets	5,826	5,402
Total Assets	1,016,900	904,101
Current Liabilities
Accounts payable	65,981	64,875
Accrued expenses and other	35,270	22,215
Litigation settlement liability	4,499	0
Warranty liability—current portion	3,481	3,202
Deferred revenue	55,245	37,031
Total Current Liabilities	164,476	127,323
Revolving line of credit	196,750	136,750
Right-of-use operating lease liabilities	37,061	38,661
Warranty liability, less current portion	403	403
Other long-term liabilities	991	991
Total Liabilities	399,681	304,128
Commitments and Contingencies (Note 13)
Stockholders’ Equity
Preferred stock, $0.00001 par value - 5,000,000 shares authorized; none issued and outstanding as of June 30, 2026 and December 31, 2025	0	0
Additional paid-in capital	498,495	493,090
Treasury stock, at cost, 3,908,387 shares as of June 30, 2026 and December 31, 2025	(25,272)	(25,272)
Retained earnings	143,994	132,153
Total Stockholders' Equity	617,219	599,973
Total Liabilities and Stockholders’ Equity	1,016,900	904,101
Common Class A
Stockholders’ Equity
Class A common stock, $0.00001 par value - 1,000,000,000 shares authorized; 172,196,879 and 171,358,711 shares issued; 168,288,492 and 167,450,324 outstanding as of June 30, 2026 and December 31, 2025, respectively	$ 2	$ 2