SUNation Energy (SUNE) 11 Aug 232023 Q2 Earnings call transcript

Good morning, and welcome to the Pineapple Energy Second Quarter 2023 Conference Call.

As a reminder, today's call is being recorded. [Operator Instructions] For opening remarks and introductions, I'd like to turn the call over to Eric Ingvaldson, CFO of Pineapple Energy. Mr. Ingvaldson, please go ahead.

you. Thank welcome second conference quarter and results to Pineapple the for of to morning, call Energy's discuss Good XXXX. With our me Chief Udseth, Executive Officer. today is Kyle

from Our to which our cause are speak expressed forward-looking implied statements. are statements those outlook will beyond statements control, predictions uncertainties, considered call our are many by forward-looking to company's which subject and future, may the differ and or actual expectations, that statements. the of These this morning risks which materially to in results these include of

obliged filings. forward-looking the statements equivalent release disclosures the forward-looking been this not by discussed measures Investor copy page non-GAAP press of A reference. regarding may to are law. can in to GAAP in except issued required and SEC has and be for factors in posted press We the of Relations our The revise that website release we our today's or U.S. any be yesterday. our risk statements, earnings financial reconciled update call Please are release to refer to other as and found

ahead. that, CEO, Kyle go to will turn our With Kyle, please the over Udseth. I call

the Thanks, West early, everyone joining Eric, call this folks. for and know this especially us thanks I Coast on morning. your to is for

without continued we And in and peers. strong costs out and integration pineapple. at model. The happy and sales deepening our challenges growth, another corporate Today, continued great services results continuing the able weak internal from Energy. its both The strong results Pineapple quarter while Hawaii of its been this industry solar office, our earnings financial and effectively their to excellence to and of shared has In business that as growth be trend momentum plan. we New quarter, York year top-line many positive of prior adjusted year year-over-year by deliver I'm share another to build not and EBITDA. able Pineapple, operational buck overhead evidenced But strong business second contained showed exceeded U.S. both installation our public quarter residential center at of and the into QX the were we to

by continuously are on but a in finished, and and improving with focus and great no hungry we've means delivering We cultivating made mentality goals. on execution lean a progress

other the company of at everybody will that them we've understands improvements we confidence the rest me and think expected this over to into cultural continue I year each and XXXX. and thrive what's accountable now made of in the give holding perform

look want truly give of and DeBone For driver of help at go quarter. start in a a turned XX% quarter, year-over-year. to more detailed our shoutout worked in-quarter Hawaii, were our excellent This solar in all team his crews was up a this to deliver are which I in the result. Chris install hard Hawaii installed, homeowners performance, recognition, Kilowatts let's great largest and revenue to and who where monster a so

is of customer experience just Hawaii, we as remained QX our great in Chris the referrals, electricity. rate the future, XX%, grid the deliver our a day. building came own every of continue customer which foundation number all consume produce, and team in of sold ] XX% [ can important attachment And via and people is in to HEC Hawaii the at systems which phenomenal testament that so a for store Battery their and outstanding out where

that the people well I New goals to working a Maskin company team for help York business, New to were the hard communities off New are Battery their shoutout want really when give with XX% York attach our do batteries unexpected really in our our up levels although January of and is go also in delivered quarter, installed in starting and in consistent We Scott in rates to as and that's XXXX Island historical now hit and second time to not with day quarter. implemented our Turning and were help solar. strong take a his solar X% only Kilowatts Long market. and York year-over-year, to the rates expect paired to installers market.

sales poised in of years be leveraging from Hawaii. we'll all team And New happens, our quarter this by from XX% came customer the and referrals. know-how York When to in experience the of capitalize

Now customers. X/X from for existing to number, that And the new Hawaii well. a and Sunnova, great just programs XX% topped referral minute, month it's ever I we and at at both as this where may think to used relative our just over number. of appear a I result about small but Sunrun either great truly we That's [ a comes a satisfied run think ] business had company. don't the

whole number a taking job and expectations our delivering customers New team this do how of care well. at in York the as So shows of Scott and on great

As of revenue. quarter good installation an giving on of million us backlog, $XX probability-weighted have we end, visibility estimated

to the with year, million. year backlog the range together stated us numbers, that half $XX revenue we've Taken gives the revenue continued our confidence full first already delivered in of $XX in of million

state details, continuing EBITDA the something team, as as to well, QX to positive I are differentiator and XXXX. That's comps. we here Eric versus deliver positive I'll on, competitors for that it's we so a more while like a able adjusted other again year guide in that full think leadership did big and EBITDA we, Additionally, focused of extremely another adjusted public will and quarter provide were just we're

front founded that as I on operational style quarter we've The that That businesses. local and our big us. always our and a well. be solar kept growth driving critical foundation is had deeper regional on driving existing will excellence same-store the this leading focus on strategy company for residential roll-up companies, integration organic sales a a of with second KPI foot a across of and metric But accelerator and our

While is say moment, and consolidation, this we filling a our themselves strong companies the who our ever announce pipeline. the and of my for something new our it to deals right any I More part faith diligencing This during in made benefit at ripe come the as separated and And in you believe M&A from great in that being pack, ability find as quarter, our strategy to front. progress been. has is we've industry the of bigger. didn't in environment on this I'll see

call walk detail. more I'll the that, to back With over our now Eric, financials our through in go Eric ahead. Ingvaldson, turn CFO, to please

a deal. to remaining all cost XX, a sellers assets legacy Ecessa It proceed round solar Kyle. quarter. closed solely we and fully Partners. SUNation substantially us important to and realize you, of has JDL Decathlon integration retired This This assets synergies forward of we the Capital June merger Technologies, as dilution, completes On company. no revenue the both legacy the and was the the financing Inc. Then X, of begin sale Pineapple with subsidiaries, and debt equity of the June of of busy for note move the Pineapple short-term monetization the allowed been to Thank fully on forward SUNation from it substantially with certainly with the allows as completed financing CSI all the Corporation. the sale

all results presented will be JDL will Ecessa discontinued results not Prospectively, in historical included results and prior JDL Pineapple Ecessa from of operations and period as the in comparisons. and be

fourth of results QX better review results a last was the certain less the numbers of pro of and GAAP results sense will not that you performance year our as in because SUNation numbers which I the SEC included year-over-year forma Hawaii Now are XXXX. and the operations GAAP will by our business. of insightful give required the financials only then of The acquired review the quarter

or $XX.X XXXX quarter Let's $XX.X revenue results. of start of QX XXXX. XXX% acquisition Total and growth the up a was of in revenue quarter strong with from organic The in the second SUNation increase GAAP second Hawaii. million, result in was the million XXXX

increased result normalization was and the chain to a year-over-year. organization. total $X.X Gross power the Our an profit due acquisition, an million a and of margin margin. gross buying revenue as of XXX% increased improved or were supply larger gross $X.X profit Gross profit better of increase SUNation improvements profit million,

amortization or remeasurement million $X.X the SUNation favorable million of of fair $X.X or declined fair XX% or expenses an expense the assets consideration, million, million of and of value XXXX, to contingent operating of was $X.X remeasurement income increase result $XXX,XXX increase of XXXX. favorable in rights income was second of the includes Other quarter Operating million of of value a of gain expense in were rights in The SUNation year-over-year. earn-out XXXX. market in million due quarter $X.X an year-over-year. $X.X $X.X Other million interest the decrease value $X.X in year-over-year. second $X.X million and by of on XX% unfavorable a value the the million million, QX XXX% fair $X.X remeasurement remeasurement and Total acquisition was an primarily the of expenses which merger of loss, value million, sale increase offset contingent earnout the the $X.X $X.X a improvement unfavorable operating

The income This loss per XXXX. from operating was $X.X million of loss was was or from continuing result second diluted in in operations XXXX. $X.XX million common decline income. $X.X other stockholders improvement of a continuing in second from decline of decline the the by Net quarter of loss operations share attributable net to million offset the a $X.X of $XXX,XXX quarter the a

XXXX. for We results days the will CSI GAAP due of ended results the June aren't quarter in meaningful year-over-year on operations months X as only to post-merger represented with first not the X of comment U.S. XX comparable

let's XX% increase SUNation operational XX%, an X%. an from and revenue result increase quarter increase full is to the in for comparisons of of XXXX. QX other SUNation revenue was HEC represent revenue The we the revenue assumes Now the rate due was quarter quarter of and kilowatts XX%, forma of and XX% pro XXXX of the owned in a battery in increase an by of business up million in growth. forma of offset up with second XX% a up increase of to year, of in of last second are pro XX% commercial Pro in and The in residential revenue XXXX. versus residential in XX% summarize XX% $XX.X residential results, in decline quarter XX% second performance installed service XX% revenue residential year-over-year the from forma better which the an attach XX%. up acquired

per installed. kilowatts revenue The increase outpaced battery relatively XX% led a to divisions as in projects. a the licensing decline that in as products. result roofing kilowatt is in price and while and the revenue selling rate of The of timing of flat, installed service well increase the increase other attach revenues in remained Average service success E-Gear the our is of commercial the revenue commercial from increase to due completion residential

XXX% average EBITDA Pro forma in installed the flat, and improved price of systems interrogating the This leverage the improvement was gross margin from declined, profit While improvement. million positive operating these the growth, aggressively of negative selling year. systems remains gained our operating relatively improvement of through cost business. cost resulting margin interrogating and adjusted prior of $XXX,XXX by the $X.X achieved managing

$XX.X changes forma $X.X of the ended the XXXX. remeasurement adjusted cash forma XXX% accrued the obligations, stock in accounts up Pro million operating is the negative and ended deposits. other which includes operations from capital. $XX.X liabilities, the activities quarter liquid holders. EBITDA assets net pro XX, in the compensation, sale to Pineapple decrease was million last Year-to-date, million available million for forma $X.X for $XXX,XXX million customer was We million reserved the used and year working value in $X.X due of losses. changes end from June and We payable to of right the compared EBITDA and restricted available improved year had pro XX% in CVR for at first quarter. Year-to-date, Net the $X.X contingent net for months of working cash X revenue result with value cash in to were Notable year. of on another for earnout the of prior gain adjusted investments, impairment capital adjustments of fair

backlog. the in the due of with commercial a prior is This deferred financing projects. improve, to The decrease in of reduction of customer the consistent commercial collection installation end prior with the result seasonality we who was deferred The customer liabilities revenue and the a want secure as of of business. our to to partners accrued improve year the expected timing as year. the date the of is the other in an The of accelerate decline to deposit the customers milestone from payments general expansion deposits result deposits anticipated to balance from

like would for go we questions. Now call to ahead. please open Operator, the

Instructions] Markets. from Thank your the first of Capital from question [Operator line Northland that, Donovan you. With comes Schafer

of But looks I curious power Hawaii. quarter. by be the margins don't if made think and the like wildfires the first that right page within fires It's on good. really nice storms, has they Journal the I'm like themselves weather outages Congratulations see I well. -- front are as are think caused it ask about caused headlines actually these I I think level of of to there it's Hawaii, parts know now, gross want Hawaii market, yesterday. an particularly somewhat events, it in And I to some the Wall elevated I Street understand the isolated, in

I'm something an customers this power. But you of it all without backup when power. Hawaii headline and part it something so as, know, can like, drive of interest where news I of over and X% everything and outages, plastered daily was -- you like or that just exposure what increases don't that's is the kind order the of event And general, provide do in curious I think on getting even in if get

this can curious you in in experience in So exposure. like -- get particular, upticks I'm small to any just have be help of that does if if headline demand. would too drive At that of event, just headline kind events even matter it significant how this Hawaii with if

details be any things of kind there great. understand Just or me help would

Yes. Sure. And thanks, Donovan, for early. being so on

this maybe just pattern, baby, new everything. is normal the with your Although

you So the new us appreciate for the start making of I the family. and time congrats on

asking members in there on just and to talked certainly should you a the on our not and we've family operations, about we're the mentioned release, Hawaii. Chris of certainly on been on what's team friends this in appreciate and probably paying Maui attention have some but and to we're I lot of fires, with I Maui. have And the but have Oahu, going folks

by great been impacted it, but And that's nobody so fortunately, us, big is has and hear obviously for tragic. relief, it's directly everybody to safe, a and

hearts our out to so And go those folks.

to one we're -- it's underscore, more continue. of extreme, in that more the this and to. utilities right? homeowners individual grid go to to broader grid decarbonize looks and This the in decarbonization the we're to found It's going to general, seeing of motivation to big event doing, just don't any the industry tie this events right? distributed are the just wanted hard need save to to why of one wanted to a really for this, where what the thing, is has not generation. move less it think is weather get I This just why money, regulated to importance of space, specifics what and any it's but like, and to what get planet future, I and help it does it's be get getting needs not severe spurs get solar where the monopoly we company. direction. I the for is on for to you climate. the And is we This This into rely to can't

influx get data that funnel that leads like days specific wouldn't of can question, back in your top in a back weather that Oahu. I But yes, the you demand. the say extreme last in and events more and post the seen trends we've rising huge over on tie X of the correlate you To just happen,

I business the forward. absolutely standby somebody or you it, like you But just Seaboard places want industry, think experience you from Florida to for when space, acute like root broader and in but it's it's see I right? at strange never this in like of these mean, see Generac more horrified these moves you a a with hurricane. level right, there's my the aspect the when see home and know the you model things, yes, it's probably generators, or Eastern You it things some where for are Texas

get it fact I is and have helps consume to but There's that neighbors power, normal. the power it take do agency up don't it's again control peace think it's tied going over is just store one people directly, woken new and own some of helps more of you acute some and like decision own own that grid. produce thing your helps your community, think the the your a to be situation I extreme to thing, of the it and more the this mind to can this. your And to and take your and you some it power, make helps best and

So paying and it just industry it attention reinforces the that we're in ends the to too. hope feel know I mission the others and situation, on, certainly quickly here,

That's And in a -- kind -- Okay. a you want to of seeing U.S. about lot I X.X NEM I don't of really of where where and California, peers and exposure. of have lot some mentioned Texas weakness then ask in helpful. market tied have much others exposure you that's you really also like about know any the the to that in don't and like Southeast talked weakness guys

beginnings that's think some of pretty doing I kind had in imagine say at but small of expansion this did Florida, least point. the you SUNation, very I at

I wrong. as getting somehow don't be this to as at than seasonality And like it to -- curious, tried to patterns a thing, least I that's lower looks seasonal last I decline but like I'm seem I quarter. did revenue try But hard remember, sequentially, quarter think so

is of the of totally really the if totally you some behavior? kind and are reflecting Or far, kind of you question been kind that of The anything maybe of more sequential macroeconomically it there? decline consumer that's you sequential from some seeing so or just are broadly, weakness? Yes, just immune So decline is. immune

Yes.

wasn't think unexpected I for us. it

this I know residential Hawaii we call in recognize we've talked on install delayed what's those pull think we and to able year. some, reasons expecting the don't been about in they XXXX. well different as that of right each in And York for had completed got to market, had December and were QX we some last I New projects got how the term, because back in them of

a into we would range. otherwise we revenue QX than had we and stronger have, So baked that the

So not no, in of weakness evidence market it's the demand.

I think space in by too rising is impacted the bit rates. a everybody interest

I think the that of Hawaii, prop power And value the through continued doing is and a given is team fundamentals strong there we've job on that. capitalizing great just take in so share that there the demand there. the to and

back always to start there year that penetration and to were seems last this it. with but in kind of I those you'd then and of think think start see electricity got and take they that X the Texas you space Yes, this off. And sleeping and sunny mentioned economics markets the with populations states and Florida. I end down savings. a below wake we use in those finally for talked close rates of to it -- year, hot, eventually, it's up up pushed going been lot about those get as and like in like I've positive the states, years, we at always the of huge and the giants And

aspire So these it, markets. into ambitious each of by and grow although we're not directly we're impacted to

various to target that. able in and look eye and through kind those an kept we been secondhand M&A places, we've of so see that at markets, companies those And got we've on we've

Some of impacts. those

I our to this a think would based rates I or in in solar. on the will it I think I it electric no, that what on But last is interest states. continued versus if but I is the touched utility solar has go and don't homeowner those demand just real be we our -- it -- what my good, to think do what comparing be those to the markets if are bill decision little be call. continue Rising go making aren't on

are where And into what think bill rates a level, years that comparing a payment determines prices read to just system. you that in ] really you to $XXX needs I it into But interest billion, But and expert double places. put utility and in is every keep up rising a go estimated alternative high of is for for shape the out variable And at XXX year same gets bad. And go was just that, or and rates yourself kind annual Like your answer be big and grid ago, shape? just in the calculus, gas like you're XX think a it some CapEx deep the just they the policy bit. to of understand is of the grid U.S. the look good the [ to I don't that the continued grid rate-based a weeks I that billion the that to on a moderating size at monthly the the year-over-year -- bad to the is bills. have couple have means that next lights of on. digits little lot a if up maybe ask of with leveling think I study

right the I bill it's gives product, think of just are costs. over stability and month savings, know as the not about gives about also and now. about at X your it so It's over things this savings. customers But much just life the you it And where you thinking

Fed is factors interest -- seem So I mitigated obviously, it that what but to of the some think going do, rates. have to will rising I that a out, those But there's does rates start like don't not raise meeting, cool yes, and predict, topped hard the that maybe rates say seeing have chance and the we're next they a better than to me bit. to little at inflation are

few to the next So quarters. provide going I to tailwind think a industry probably over the that's

of numbers the yes, businesses we would operating is look quarter that do higher, first our forma was did revenue forma actual at you QX we've QX a 'XX was Yes. -- up the pro the we reason And performance better compare quite did quarter that our And And to here, number We're we I over of of acquired. add the if XX% just 'XX, of XX' of underlying substantial. but increase, it. businesses the or XX% in 'XX. of second the operating pro results had QX which QX the results,

part is massive a of decline So the that to result of normalized that number that had we just growth XX% sequential second in the quarter. quarter first the in

for Okay. the I about forget circumstances did first kind of Yes. exceptional the the quarter.

your reviewing get to or kind maybe opportunities. were actively proposals those insight quarter are just very getting or that across weakness maybe that's here, weakness your you a other been targets ago, of calls said of standpoint or markets And are from kind the kind looking come flow the that an parts on you've But into can of of that we pricing more deal it when some when I is have -- you opportunities on because of been opportunities. where then everyone you either potential So able comment there's think versus desk M&A incrementally for? -- you people is answering on where opens the helpful. more or theme impact has kind can an up those same zagging? else had kind So zig a interest, U.S., the the if of of in you

be Just that any any details around would kind helpful. -- of

Yes.

interesting it has I space question. it's over made certainly months. think think a great last dynamic I the And this and

components it's -- in are to to We the for right got companies. think thing particular company -- no find key more of I than growing think find financially a the has profitable. anything And we've We've and I else, to us, and that. healthy got there the is bunch to order, fit. be

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in medium- the that's and the Like model. long-term vision

is So that fit piece key.

at more that crunch interest finance don't with they did payments, and or away and rates because both as in market transition looks in because until to yes, capital say, much now at gotten their the end. not maybe have companies the the working demand we've are they get milestone MX coming more MX companies also from cash from higher, install I'd opportunities manage all struggled So the

and those is to or fit cash pushing looking the this head-to-head who's wasn't the to the the into off who having for are part heard to want -- be motivated for than sunset and we're we And But keep share. buy after then are we of founder industry want more And bigger like players so folks to to looking to companies those think out the talked and it keep the right time it's time owner the boat, fit right and and fit it's and the not came keep chance up I piece of fair and language it's And building looks. other and when a a an ride a looking want to hungry we want us. something buy healthy, Like great we bigger, people these this the we're to for. go we And are our with, right? win against said strong to they was companies their have language that only right?

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Sure. Great.

with correctly, And rates attachment been around batteries. a last the actual The just of -- And deploying recall the like product really high I remember in my you're lot Franklin have if Hawaii Home and then Whole and Okay. I you growth certainly you is of storage. you're folks are question believe in kind that. of just it's of either deploying number more exclusive that. the certified limited with if you if guys -- recall market relationship I Hawaii of an either one I or there's can't kind And that --

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taking a the as are We look for New at York market these well.

U.S. the first off installers scale so one Chris pivot. team And the And and great the it's for hats and this in of been a finding early being to

We some make for bit that time, quarter, to only think to leverage. after standpoint. a but every really And we're the there, happened choice. of this they the a in to a might duopoly interaction little get just right? you getting long Well, -- we side them. a just person want frustrated the got if sitting to the pricing management table I And and place can you're you cautious that that have you've want and stuck choice, on just multiple other and keep to you have always say, don't they a single-threaded, a you're And think from my look complacent what is because when always at not redundancy of I think partners. it with prudent risk not sure Enphase maybe be

really think I Enphase. next product that Tesla right? those. interesting Chris for beauty side, in applications to like I is strong, thing. out, I me years, New Scott, of that in a think makes although I'm [indiscernible] We've back compared right? sometimes been step York. the system, And the on but we're So it's and always lot a the of next have coming not. in the market the we've string installed I've doing right out and the space of best a kind to installing and X inverter been product, the Tigo's inverters on veteran are It's good for there looking like It's this

way onshoring going is this look can always mentality the you over innovation But be and this Act, Inflation you get too. an with especially if goodness, it's this X it's exciting chains a and I products supply and years of, what's hey, this years time with in XX to and in be to next space, it's while, with just think years, for been Reduction the going the like and out and how it's X set. happening always product and But solutions my just and

harbinger it's been what's guys. has fantastic, And to in think love with a come So those of Franklin working industry. the just going I

Okay.

knowledgeable of in So home that more being integrator a like reflection kind versus sense. of a kind of

market of to we to product, in that of Is of were future. product kind here appropriate way kind at the more So not it? can well, and we the showing demonstrates we doing able ahead out where one that sticking in keep look get an a but, are, to of that similar exciting things it's doing

Yes.

deliver really in we're agnostic on, brand not is. to think on reliable We're sense, be product going we the hardware-agnostic a good good to the need what and that's customer. the experience like I

and DC for et in set versus batteries, and cases use We're the always we're can be cetera. that depending on the solution the cetera, application. So craft finger different AC product pulse homeowners, the That and We're keeping et the to tariffs always can what's markets, coupled right shopping. out the different always by on an of trying there. for coupled be

are York. install my in out want We're one starting York here. offered in Those them No New here then next. what's and more, certainly go and to and coming do already, a charging what's to good meetings Integrating RE+ slate excited EV understanding just new to one The New it fly really Minnesota. and have panels installs for in I cool. to of house SPAN guys have me.

think like choice and space, cost. track lot the homeowners too, We've who we that yes, there's going with it's only innovation think So we got with quality good and a to reliable, from of happening in work of benefit a are product but partners. and I to record

questions that's offline. And I'll congratulations Okay. great. Well, quarter. the of on the take my rest

Donovan. the Congratulations That's on Thanks new a awesome. lot, baby.

Thank you, Donovan.

Instructions] comes Global The Alliance next from you. Jeff Thank Grant from question ] Partners. [Operator the line of [

But questions sequentially, quarter despite about as little margin already the the for quarters? coming talked you bit might you gross for A of lower And couple how sustainable front the front that? the you. worse do what in to of or really takes nice view mid-XXs. on be margin gives and changing kind the better Again, revenue guys a on that the for the last over

side, margin on the Just specifically?

Yes.

margins. but I think your of is which, efficiencies, competitive it's how Just the super view number, your that you run guys a I of and sustainability business gross the to wondering, obviously a quarters. mean, in just the coming testament

will inverters supply have, relationships distributors buy Yes. and is willing would being able And against in negotiate. and in to out I a vendors. chain gain just as the at leverage with and prices. partners continue better I York, to power have do our with, there to we are space deals see larger continuing Hawaii to our buying acquisitions we on future normalized. that relationships number. mean a say the The panels it the New both that organization we margin that sustainable We're in has The better

So result ton Home. a United Kyle Reduction Whole manufacturing And Franklin the Inflation entrants Act to mentioned, States. in of of there's online we capacity know coming the a continued as as the innovation as and new such market, definitely

pricing And competitive. so to very we purchasing of equipment the that we're the continue see be to

any, of it's impact, in extent a New in is But an the 'XX the number in to you a ballpark I'm of curious, margin for going terms and revenue. New York market nice be a the way here? rates kind with battery of kind And I'm the tailwind about thinking, install Great. of guys, and So kind if with just attachment I step thinking a have Okay. York the margin there change without contribution changes assume coming the on to from delta battery? in

go battery the expect certainly New we rate to up attach Yes, York. in

are As we rates, mentioned comments, of converting the in believe, in part to 'XX. time-of-use first some of they I the

pricing have yet We the impact yet. margin that kind and of out of forecasted not the

we that in time-of-use go can't being to I comment with anticipate do really up intelligently, certainly New battery York on but So rates rates the attach deployed.

guys? not? thinking, just on different, revenue look contribution does assume, margin like without the is you install margin is I more of kind -- profile how all, or at a with was material contribution battery a it the Okay. I guess an or has a today, customer the if but does a battery if Eric, obviously, Is higher, materially for I

of tariffs, non-export lot the it, a you question kind I it margin so I have of where markets, in -- little you think want have as have more. think you number market, the I And of I'd battery the of a just project. to a into think been don't you in how especially it's up a to of we that and in from And overall because -- new with follow you price. about apart I just have can pull Hawaii say, front historically, me. we bake the bit

solar you of the it's it's the they're an the adding not a has had right? a NPV. if to not decision in about, for on battery like solar you're mind. the going island "savings" But it's add historically it, peace not backup, ROI rates. It's to ROI You've The or PV. onto more resilience, has low-single-digit Long been an It's really traditionally, why then attach really battery savings. the like There's markets -- do reason product,

battery think solar that. savings to the almost well, add okay, in I'm like the like, markets battery, the of some the people going in it from to so going the for of and whole And use pay to I'm

like I to want think more to at to it's glaring, are people add to the especially time ROI financially the think don't I as and flip huge going not be things batteries. just batteries, screaming, more but going day, just of start,

we to how be price thoughtful it. So we'll try about

margin. extra this be huge away add-on right there's this You're an looking where to not necessarily for

where meet save you people cases. good I money still they a And systems think holistically PV, to it's where design trying more and it's use their make for with that the product margin. just some a

sell to like not significantly installment going product not be solar. understand expect gross of just higher that's itself. an I than the I PV wouldn't top we're So the on specific, to But it them also margin cost but just

Understood.

opportunity Okay. I you that organically pursuing? kind sneak appreciate material the just the commentary. can Any I in. update expansion more one Florida guys If were on of

Yes, it's early still.

those on some starting starting see our QX. months signed lead-gen that filter a we'll there. our start when to think efforts. We lease We're efforts. sales got We're of report results X I down we through in

building we're up. So

the think I viewed time, data-driven think entire as right? think of metrics-based. I talked being we and it's -- rightfully We a test I We it so, about that mentioned And part that. accountability.

and Marketing can experiment something an marketing showcase control plan, is not best about. a like just the another it. not do the and premise think that experimental you think plan is my get a just test-and-learn. to thoughtful part culture analytical I'm we're you approach areas. work, of testing, things. passionate being to have for is in trouble it company test is and if background bring to what It's just a nowadays to of whole lot mindset and I it's it. It's this be about the to It's trying out you doesn't have laying do And plan test-and-learn and in than of we have

able low-investment I could think think learning I the mentality that way, as think who and the about think in and it's out that rocket New takes a I Scott is viewed Florida, going But different well. to it's keep or other outside team trying market it our to it serve geography. tieback that's are the John us see that personnel we're kind in it the going going whether kind like markets ] and SUNation. off it's And of it, testing same, C I York it And core whether it but we [ still nonadjacent successful. be have if We in of and doesn't, a good confident a right? ship verdict test things of as got to in approaching on -- to build right make well, I'm to where we've but the we're capital-unintensive to

Thank in queue. more you. the Seeing no questions

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All right, to business. back

the scorecards quarter across that first have this entire The back while that even put real-time and of behalf to the I are team, on leadership the more we work can it half. this And in sustain told Pineapple confidence had performance our has point, strong about ago, hard X in be more confidence build up. now we'd months been strong connected I able I you and excited company at the after better, able past business, we same robust more with to Speaking XXXX. deliver out data reporting, we analytics to to but entire say

guidance progress our will We're in and for We're deliver every what joining for and at continuing building us XXXX is company reporting to on continue each our to for to November. look growing forward a That key call metrics-based earnings employee. your continued Pineapple is our track again you enable and growing Thank We accountability acquisitions. transformative pursue where next support. to this data-driven morning while profitably.

Eric contact If or you today. our have any further questions, call concludes please me. This

disconnect. you. all may You Thank