Sunpower (SPWRQ) 1 Nov 232023 Q3 Earnings call transcript

Good morning. Welcome to SunPower Corporation's Third Quarter 2023 Third quarter call. [Operator Instructions]. Please be advised that today's conference is recorded. I would now like to turn the call over to Mr. of at President Corporation. Vice Weinstein, Investor SunPower Relations Mike Thank you, sir.

begin. may You

I Good XXXX welcome everyone earnings like to to call. morning. would our conference third quarter

On an update backlog, financing. on comments quarter announcements sales begin of we trends, highlights, operating who XXXX third the followed guidance, business Faricy, recent by SunPower, an and Peter on CEO with provide will and call today, update expense from will including

Peter's review results. Following Beth our CFO, Eby, then will comments, SunPower's financial

call the the of be replay available of on a reminder, a today will Investor the later As website. page Relations

During on are release, slide press today's as XX-Q. Form of risks call, described we to uncertainties reports today's presentation, our will make XXXX forward-looking statements and harbor today's subject XX-K that in and safe the quarterly various our

a first for for financial XX-Qs second restate filing, XX disclosed company the October the to information Please for Also, certain non-GAAP today's earnings well release we statements today's for practicable during additional these Please As those GAAP non-GAAP we appropriate and appendix metrics as regarding will and on call. as XX-K documents forward-looking statements. as may reconciliations. factors to Form X-K our presentation for soon see reference the press of as quarter those XXXX. XXXX in the to the plans refer affect that

Presentations the and of which we slides, Events PowerPoint will of enhance to set Relations the also call, this call during a Finally, the website. on posted we've reference Investor page

the of period we prior financial presented estimate information have pending restatement. of aforementioned periods, outcome historical our preliminary best the For

of metrics of that, the Peter? like financial data reposting our the information. And completed CEO to this turn SunPower. delaying restatement of also historical supplemental are have sheet to over Faricy, historical detailing additional we listing Peter until call with I'd We or

progress third with and and latest to of quarter, persistent factors our the Today, a that and our guidance on on consumer rates markets with of to in affect view our good previously could conditions results, the based morning, I the is we information year update higher XXXX. customer XXXX Mike, full cost difficult everyone. behavior. our reduction discuss QX market will had our important XXXX the Thanks, see interest of we impact contraction as continued forecast than In on higher result bookings and more installations a that

in longer have this these While in began and of year, than channels materializing that some continued highlight expected September. signs trends we our we deeper the early will sales positive

customers traditional to and We entire continue our as value XXXX. rise picture SunPower energy for we industry for expect costs an residential anticipate proposition improved the a growing solar in and

reported lower negative EBITDA quarter. million a this XX,XXX this slower new adjusted summer drivers this of quarter results customer and $X of the additions, were primary We higher from expenses installation bookings

As we we of later, in EBITDA new ranges XXXX our investment new reduced to current guidance customers, have -- will platform XX,XXX million. $XX EBITDA increased to more higher and and impact million lease under demand lower-than-expected negative of reflect negative revenue consumer $XX of delayed $XX adjusted volumes. as to platform adjusted XX,XXX $XXX discuss reflect new These $XX million $XXX of investment to million customer before have times per recognition conditions to detail ranges cycle of the market to the

in to aim of reduction operating meaningful expenses actions improvement XXXX expect we deepen as maintain cost financial through strength weaker to near-term our our our the will to We in result market that today the announced conditions. realization

the pockets of substantially lease strong new new of NEM strength time inventory by costs And XX,XXX as complete Sales XX,XXX more continue booking the Adjusted expectations, in versus growth and customers homes we in backlog Slide here. higher part X. improve QX, QX. increased market QX X.X higher at this a stormy was the installations installation the some have for a standard of customer the and their all we year. are California builders and $X,XXX in in despite SunPower's be recognition, above of volumes from XX,XXX retrofit currently backlog perform to mortgage declines. to new solar next We with continue California investment revenue to of with added SunPower's year average are business XX% communities backlog. outside continues while installation we expect to EBITDA before driven while customers platform home are rates. to expected business our facing average in per seas, to turn room of Please highlighting stands notable cost growing to

Sunvault Energy greater than show with attach XX% across of attach strength our Storage channels. rate System more overall sales an than California a sales and XX% continue rate to

reached to QX. a its we quarter, lease target loan in customers, costs way XX% the especially XX% reduced X.X on to the products We third our inventory in that with net a in metering Financials NEM models VX by XXX% storage where to declining with are increase SunPower at contracted an expect last continues volumes highlighted for for and proposition grow important Lease California, benefits XXXX. value the deplete customer Analyst of attach achieving and rapidly, Day. SunVault to part early year's well of the is utilities. of rate Battery this in demand the XX%

payment Power further agnostic due a the is markets access remains and Reduction company top-tier advantage. a bonus and under for Sun customer-centric lease higher utility solar residential previously, beyond, a competitive our and incentives leasing current capital major or towards lease that loan as of financing, As Act. we bills to to believe is expected in inflation tax noted competitiveness and combination versus growth XXXX

XX,XXX the to turn to our XX,XXX new With XX,XXX customers we've range #X. over far full this Slide Please tightened to for customers. so year XXXX year, guidance

months, as Florida sharply Colorado. in early be turnaround that Texas, to call prior particularly September may states we appeared trend, to versus highlight such in we're it a bookings and want While to seeing key as improve California,

of since marketably that improved turn We in bottom that XXXX. improvement to October. sales The and in us same we've and of installation see the these year-over-year remedies September in well booking XXXX this Please will reduced trends and our continue led is factors Slide as aim has as first we some the this these We quarter, better as will half #X. for We're trends action the XXXX. the recognition customer May optimistic October. outcome that line boost been to guidance we the to in figures continue help steep of pursue contraction as a some and I that disclose continue take to seeing

earlier, range XX,XXX to XX,XXX. customer tightened As we've to the I mentioned

slow customer and by indeed October recognition. the September trends pace this summer are our While of we booking positive, are nonetheless past slower that will affected bookings

continue We activation earlier this system year. face from delays state's the some from the although utilities, in improvements significant to we've recent California seen

and history. and exceeded our expectations, QX had customer the bookings customer new Homes best New have for backlog for we bookings in our company's homes

spread to is customer $XXX to trend and cycle Homes XXXX cash times the installation total minus in our guidance versus lease is cost on per amortization fees volumes, higher New of of ultimately $XX loans revenue of of $XXX, Reduced to positive The nonetheless boost goods for and platform recognition which for XXXX that XX% sold extended lower-than-expected sales. XX% reflected EBITDA EBITDA origination increase across track million negative before customers. a the comprise investment negative $XX to and volume. sales million of in results

investment the reflects is investment a The of substantial primarily this plan to adjust continue expect original operating through U.S. continue to decade We the continue platform investment conditions strained restatement and of the climbing continue expense range inflation to economic develop. for tenants the now reducing uncertainty. electrical financial well plan intended prior term, for $XX to market to as year to Long pace SunPower bills, judiciously positioning market, million inventory still our conditions -- period the unit is and business $XX market maintain investment change. and We higher our we to under order grid distributed to in market share Reduction earlier plan gain million solar costs to of Act. our below as legacy including tax values. utility market near-term a tailwinds Platform low penetration, strength plus

an from with fixed projecting and intend continued of expansion XXXX. financing to to manage variable during in we're reductions this We operations customer inventory reduction Finally, capacity. improvement continued cash and costs

bills. faster remain XX Please are We greater and proposition inflation. such million the gridded Price of the PG&E XX% bulk on In Mid-Atlantic wholesale with steep Conventional more customers of reports rise increase fuels of near that than our of year-over-year. turn X% residential solar continue in to continue electric most Information key rates #X. California, XXXX. for to We the believe increases increases highs than impact all-time to electric U.S. cost January increases the to customers primary power to lower Edison stabilize The gas. previous a compared Slide utility fuel rising the reduce as is XXXX powerful XXXX XX% X home the states investment X hit are moderating energy states prices, in and electric to estimate capital competition of Electric and Despite ways that the reside Institute to one as than to Energy projecting despite rates set of rates August Northeastern in states industry. electric that California retail average elevate cost U.S. stability in the and rates XX% from these utility potential Agency as with natural seeing years. residential value The

are of rooftop investments value likely that these to rising. we bills, believe continue As through solar recovered electric continue is the to

Please turn to #X. Slide

made share we with of we've as the long-term progress forward the our most strategic pillars five I'll plan. important QX Next, move in

center remain ranked on my launched installer our faster resolve SunPower with friction. a by platforms. ratings on indicated experience, reviews less website app multiple to as to customer within U.S. new For top questions experience and home, self-help and help our We've SunPower the solar also

and SunVault ever products, sales QX with rates highs sales XXX% new September. attach For up versus in in month best reached our QX

XX% September with new CC New York Colorado. Nevada, such communities outside For New homebuilders as Massachusetts bookings and signed retrofit September grew expanded Brothers growth, in August in and in Florida, Homes versus California with Meritage Toll Homes in and

new single a onboarded in dealers in also most XX the We QX, quarter. added

new SunPower increase scheduling first new SunPower designed SunPower sales of lease digital, which launch customers For using New released Financial reliability ADT software, finally, X is rollout Homes costs. phase and utilization to Solar's And the of in proposal and enabling completed appointment states. and sales the Financial, reduced tool completed a the for PPA

#X. lessor finance program we the and and agreement. Slide solar the be customers ADT gross purchase launched QX, to continues to or roughly to as has on sales the power business. financing launch is for choosing margins XXXX the expected Financial business In to exclusive slower turn overall. contributor profitability Please SunPower lease existing grow of SunPower despite volume to finance with impact QX, meaningful its the potential in Loan line at are to in a the that for

quarter, net of cost mentioned a enjoy As leased to our capital advantage loans. in bookings grow and earlier, leases currently strongly to the continued third compared

work the future. increase We in lease on capacity continue are financing agreements ABS place partners to facilities our to in with and access to financing funding

by opportunities this excited are space. We the in

stay tuned Beth? to QX turn that, I'll over for So more follow. to details for on Beth more With our it now results.

turn Slide to XX. Thank Please you, Peter.

words X-K. a Before say I about to want few recent I our begin,

expeditiously XXXX XX-K QX the for the We are file amended XX-Qs. QX to and financial and working XXXX statements

restatement as XX-Q increases of position. Form change inventory QX soon of as does our file prior revenue not The it microinverter cost the practicable. and cost cash our to the expect reduces We

effects Furthermore, restatement around are We conditions a we disclosed, negotiating and the company identified consent XXXX we've the are January as improve the our procedures, of and also terms around of the of and address previously waiver the under to agreement. reporting Bank sold. America working inventory goods credit cost SunPower's and amended particularly issues to currently of

regarding seek While we outcome. we and and can waiver a no working when consent make and will if are productively assurances positive received, the be

we million negative $X million are $XXX quarter, adjusted third and of the non-GAAP For of revenue. reporting EBITDA

customer reduced rates. interest be with by QX of in higher but driven continue customers to the effect new demand XX,XXX added have We largely

reduction, higher sequentially as Adjusted lease Peter margin a September of a gross installation installation times buoyed lower as October and due well OpEx. investments in the write-down. as cost result and are per QX, and improved in absence QX versus QX as amortization of as cycle inventory quarter, well Adjusted longer However, interest delayed recognition the sales to mentioned, revenue recently as is of by EBITDA year-over-year well year-over-year customer primarily we costs. digital from as corporate improved products, was stronger Platform cost, third persistently in customer financing. strong $X,XXX

continue and our conditions. work toward levels this matching we slower investment to While market to OpEx year-over-year, increased slightly

financial this share, to position future challenging Our to conditions. strength for gains look continued we in market is the maintain period aim through as stronger company market under

Turning With the operations improved ended with quarter to we We quarter balance of management cash debt. working from net sheet. cash $XXX levels recourse the capital, $XXX and reduced million inventory million to of the $XXX of and the positive end million $XX of million. generated at of

plans We place levels through of in XXXX remainder have bring XXXX. down the to and inventory further

million. on of of stake We now the to estimate in rate. to strong turn ownership lease value continue $XXX using a discount value we With Please net X% about XX. our growth value Slide the renewal retained at portfolio, our

by negative to of driven EBITDA anticipated before $XXX $XXX. XX,XXX platform customers range $XX to of guidance investment a discussed, to negative Peter million XX,XXX with As adjusted XXXX our customer already per $XX EBITDA, new million of an adjusted we incremental to reduced

million million is Platform cost adjustments. higher investments of prior $XX of and to than guidance year due higher period legacy impact prior this $XX the to

this this our year. Although original significantly still lower is than guide

to continue reduce through investment our efforts will platform We our XXXX.

call considering over call we we for the as over Q&A, ahead review I for are factors the look -- back turn comments return we you want a to we of Before towards closing before to XXXX. and turn Peter

February. we to be continues the This launch the turn XXXX out reset after will Slide Thank same until list showed as forward to you, continue industry. view don't XXXX. quarter last you a next We perspective, and is utility provide we Beth. a largely tailwinds into of increasing guidance year we difficult the one Please future From and rates our that XX. typically macro slide for equipment for expect pricing lower and to

rate available on as We also tax well bonus anticipate inflation interest the clarity a stable environment the improved more as Act. under credits Reduction

XXXX to results new in We reduce growth for near as we growth the expect this For opportunities from investment and bookings benefit XXXX. expected year of inflation With financing the from backlog large we financing lease our keep eye a growing Stronger-than-expected costs. long-term lower customer close to sales are tax in product credits homes with Act. expect to additional financial SunPower, this benefit an capacity add popularity on and investment. this lease we to in and year, specifically, platform benefit intend to Reduction term, in expected XXXX expect the recognition to to bonus we from

and grow seek to customers, origination with plan financing continues partnerships to announced Financial ADT. its for SunPower attachment we rates the with one opportunities recently continue SunPower through like additional to we growth

With equipment the our as you. I'd XXXX expect customers. we financial Thank questions. We selling from benefit start to Silverado with also charger begin seeing over collaboration to Motors for in solar and EV turn to that, General like operator, call

[Operator Instructions].

question line Bank. first Richardson Our Scotia from comes from of the Tristan

guys. morning, Good

specific on I of deep in It September, Peter, encouraging. October. the curious you you're are wanted the that's And you just sounds pretty really if mentioned the drill across Colorado, et seeing in specifically you your some mentioned, could Just of to the bookings some positive. if then country? states curious around or curious -- homes kind was of comments California, in about Texas, activity cetera. new

question. the for thanks Yes,

to our leading business then and is actual And so the is on from September rubber the of comments down So at the funnel. top we the sales meets where the interest of the speak. bookings. best October, there indicator around That's made consumer road, right

the from pretty last end pleased that similar be and the November Coming October of been a in were has velocity of such were turned bookings view. we're out sales that a and to into point December comping year year, of from So September month we strong weak.

was cautiously can we're the a a That So followed end very optimistic more in was summer. challenging by that year we positive what note.

from the booking July new that almost the out standpoint, that's going So to From of May to also on, banner But very of sales what were reflected call was if that really updated XXXX. is view. true be go guidance home point year point and turned a months we to to a and our in challenging back last were year you New for be think true. for that the a August turned out did June, we be homes. low And it's

New expected. homes bookings been have than better

Just to give backlog you year-over-year. actually a feel, is our New up homes XX%

at that very to backlog XX% we're we We it we if the as optimistic So where backlog right is just a a that cautious backlog you of now, you The took up with look installations. is view have, backlog ending view I business. compare QX with year, worth and to feel, think, last year-over-year. And into came a realistic years' the worth X going give of forward. year we're a the of business go year, that the

New that's So our we plans business year. grow that's And head as going optimistic we're to say, in homes next feel and cautiously right pretty that confident our we as now, business of XXXX. a I'd into for

Peter. Helpful. kind micro respect existing on Curious to you inventory inventory inventory, with inventory pace to then talked year. Appreciate respect And of about to with maybe early side additions through micros. to of some by or working either at the next respect with it, X.X

Yes.

about the last inventory were that able in work before panels. we million X on, all call, were quarter. really about talked to to, down on were $XX inventory pleased selling pleased we're pleased levels we think through sometime levels with with in microinverter inventory the We're we the really, with I So inventory SunVault battery that about comments we the bring levels -- made also wanting restatement we're QX. through that And

And with single as still in There's panels, leaner more the last that we in think pleased products. that's a progress all off to from get in call, position we're still to XXXX quarter. of by this across And a but end we'll the committed inventory to in better for across Beth room on improvement year. good get a be. So I where much levels about healthy talked calendar kick position progress. a into product I and want we're not standpoint a We're

question Our Inc. Oppenheimer the & next Company of Rusch line Colin from comes from

of obviously, that be variables talk what about potentially at to agreement fluid, still working terms -- point? and you through the the cash and discussions restricted the and credit Can is you need are might some of key in around this carrying you guys this

discussion Bank America lenders. our in still and of with We're

So talk the it's be and a restatement. premature waiver to little the consent will what our about terms to on address

And just then, to you on to guess of I that's do take a up how a conclusion time going follow before you reach have that? long with line sense

discussions The productive. are ongoing and

to And technology evolution and Can ] side, you of the opportunity I Perfect. at energy next changes. evolving I need storage then about with many your here product. how that look we're adjustments on guess platform. might meet the years product the to the design change talk guys you that couple [ some the and new guess seeing Okay. over performance to of kinds the of see conditions market rule you of you really the the of whether as the

Sorry, Colin, SunVault question. referring just Or your sorry, to specifically? clarify are you

SunVault I Exactly. mean. yes. Yes, On

Yes.

question. Sorry. a Yes. No, great that's

world here's battery about SunVault, we're go forward. storage on as So we how the thinking

are, lot of across enough pleased September sales had, from back California-based. of We've ever. with outages we're having of channels. was backup up economically, And growth, been we've SunVault in consumers lot that best it them month of want has resiliency better a having to velocity, talked sales gained the all the battery our these California. So and really particularly assuredness interestingly of sales A we about our But many benefit also rates. NEM manage that they grid battery really

do be and But to EV we pleased able for assemble the are -- in important panels, to we're two able think look believe the things we storage us reflected really for I manage be Historically, that's with going is to what it's So way battery single to have going. customers in have we where will ahead, that be space. there's forward that as app do that One our that seamlessly own changed would be to integrated chargers, our all battery. together. primary them a in

that do been data, that consumer we've permit able to to but assembly. have have will this the actual us to partnerships Now the for battery not negotiate manage

we once work participating say, compete announce And tuned, think anything batteries we're to forward scale, we're looking scale. look I of on sell with as game you we're battery not think makers. I excited SunVault we this become think would a effectively. in So through have forward, to really and excited. but call, And partners. have I to other of going we're the quite need has to And other stay a the battery don't X.X number world with to size I I

to So stop world-class and we've us as are X.X really made the space. that to on to well working on with forward in focus SunVault partners the who the work want consumers to go decision serve would we

battery be we're talked that's discussions, about more thinking go as world of in So sort the to about forward. future but we how

line Our the Roth Philip comes from from MKM. Shen next question of

Looking improved. what official bookings QX far, you that down in have are I haven't but it guidance, year adds you quarter-over-quarter. at like the so still But said, know QX 'XX, we maybe looks where the see Peter, given customer and are the XX% given

rate kind 'XX? of of So what and run cadence through activity should for might -- we and that X year for of look next like should kind we expect QX what expect what and

Yes. Phil. Thanks,

give some kinds growth impacted. Let how you and around factors we're thinking that of about me color the

year and One is agnostic we've market we of cash, well this loan were the because that lease pivot to positioned pivoted. big as always between the been positives

is the on plus bookings. about financing, for Well, XX-XX on than this Were leases, matter as we days does demand utilities that keep XX recognition it's with until to that for California, operate you loan the NEM at Why came we cash roughly it and year and lease. the X.X revenue have and recognize is time, roughly last loans. really exactly know, were permission the struggled So opposite. this And because out get later that's up to year, EBITDA of XX-XX customers? And in to stage. we revenue don't

XX-day been so delay a more to has XX-day that normal like XX- delay. And

it end really of through calendar through most work as recognition this this year, down our slowed year. that and has So customer we'll we

you yet. out As out we're giving We guidance guidance not as quarter we take give every a on mentioned, look at our year first XXXX, call.

I think And homes retrofit that cautiously like to and and October. like the in before taught year trending anything, is a then we're that a think of if we forward. going this year. that we'll But that I as on think it's make grow trend it's the New I continue go we business longer I this volatility September next has optimistic it's looks position what positively, comments that's be too us a -- a looks of the need signals business. we early there's to like the on proof

our Just customer last to revenue at grew in XX%. year, XX%, at grew in base put perspective, we XXXX, it

consumer this one in change dramatic the businesses. that So is don't year normally you see

given volatility, bookings then we'll we'll for you our think February better I for to remainder this play the in prepared and we see year, how 'XX. calendar so be to when be of give And you that guidance out talk thoughtful. We'll

capital? end of liquidity also was could share potential external for you external Okay. down Thanks, do How pursue work on thoughts can think the for to balance be Shifting I And help at external a then if capital? capital understand to need sheet inventory year-end you wondering might much you us liquidity. then by the to QX? conditions to And Peter. any need lever avoid and you need under you. what

ended drawdown. was million from We Cash recourse $XXX with quarter. on in of debt the inventory good million the $XXX operations of net cash,

ended QX. So we we're pleased with in how

are said multiple quarter, first working to as own multiple draw and we and but to is inventory. improve down priority thing, to forward, capital options there is are our last management cash liquidity, continue same and working And I Going -- improve options. our

there, We'll set about target. a last is XX about inventory think be the XXX million bigger get that target of for be of I $XXX days days. target, us we'll and moment. XX-day I then of mentioned But quarter inventory. we'd about a We'd at at at

left some to So do. we've got drawdown

Okay.

clarify. to Just

So you much mean you dollars? that what -- can How in have inventory? terms to of XX for that to might quantify days, get

So we're about at XXX now. right

So bleed a [indiscernible] But We're that for for shooting over that's QX. focus another that year-end, company. but $XX million-ish. into some of it's

Molchanov next comes of the Inc. Pavel Our James. Raymond from Raymond from line question

Thanks for from the versus capital given per versus analysis, of let's to does that some perspective, up the loan one $XX,XXX that lease the matter much the going sourced it capital call the it, financing chooses back to there from in flavor so dynamic, system Why provider. final be is, needs roof other? your whether customer

know is and believe we've for including them, best out solar the cash, consumers, that's which really only guess needs their our them really is the to I Well, the the agnostic. talk to we that option way. made, goal point get we're to and that residential company that's figure by We -- really

cons offer little the the to this it both our payment, Historically, flipped. better of of XX% to require loans But a last don't. comes sales. leases and cash business a try down talk were and both. loans through pros Typically, So financing, better is always value. today value when consumer still That's we year. actually options Leases year, are

vehicle that and think than and that with get is down growing people payment I into the fact It's no an saving to would versus into them rational. easier off they they're solar. very Consumers a leases fact get a loan bit little rooftop required. the like are So more

XXXX. For reminder, just friendly a those business we've -- as been since in lease the

been this business us. time. new for for So We've a in business not it's a long

the tax the of on partners regular lease side. a and great number We have equity side on capital

a excited continue we're that to plan go forward. business we So grow and as about to it's

Okay.

write-down said up April have situation is matter you another would follow inventory base you Benchmark a you on as where XX% this the me question. just to of your is on and At into of down between roughly modules accounting, the value. point a a recognize bulk of Let would get inventory October. price and what

above rules still a you're we accounting it you selling not write selling above do at if take are it down all and of So are, cost, cost.

add panel a that way. really color this and The equipment across I'd the all true by is is perspective, from

So it doesn't year matter have up whether it's and chargers. way panels, prices past inverters, gone Quality EV this down. come has

on be can now. of I no those right terrific. question at two they provide panels affordable quality the are we'll really, our panels, think prices, edge consumers. our to forward? out What customers, -- great world, who've the best we the really big whether them really in to to it's for have panels say that for which then have to would those are the close going to volatility to better focusing XX% to year, consumers. does play world-class And You're the or this not through We be think provide Well, And to be most. a drop be mean for for I that's focus been panels going selling the ticket and And in is -- that I we the that It's on position going on it's they item, greater share pieces think XXXX, we in we're but going I believe do for there's and we've had dealers of going both. affordable this given world-class in we is and competitive. market price want a XXXX, We're market greater think, affordable a the more in because options and important. are

of the Joseph comes Guggenheim. Our question from Osha next from line

couple of A questions.

then do philosophy can comments few helps. have through XXXX? reducing procuring we First, equipment cheaper your say as for buying in And move about cost, we've heard I'm inverters what panels another question. I wondering you obviously, a about

Sure. you It's Enphase. we've with number and of XXXX. support a They think I Yes. engineering them. products. an know, respect lot. quarter in had of first from for that company relationship team respect of is first exclusive gotten we've a that most quality years. all, through high-quality Well, make of been Enphase a the the we and place the team the We goes

quality and broadly products, what is to are decreasing pleased it's positive going inverters value our say were We're which prices, if true increasing the but nothing to have is expect market's I you are certainly doing would and And forward-looking, is or that those mentioned market. say we're we so whether on we are expectations dealers. the a give value what going or customer in and where expectations So is inverter the survey, and panels, increase. the I expectation would would in I you on the earlier, prices But reviews. customers a place with that's the

market to of point from as forward. would we competitive expect would that true we So view gotten be our recently. that, I say that has more go

having look all But as as and good expect benefit discussing I we that to from to calls in do well. that, continue said future dealer I new that a have forward entrants. partnership think our and number think a been from would a this There's That there's at I year are point, interesting of consumers think Enphase, go. past we'll standpoint more that I number of with options. have I introduced some

I'm sure [indiscernible] does too.

might like what trying you think in what state. to little on unique that looked year-on-year walk us, and in can wondering QX bit up a progression comments, of I'm sequential if look of there's in you for QX maybe and give given But some bookings walk California, like us the particular some dynamics obviously, just improvement. your some understand into that the QX following the of Just has

Yes.

little transition the interesting. than a on California longer how have lot turned What's it frankly, expectations in So would The the our the California NEM But law, kind actually more pretty been, been We difficult year September it's and California summer the forecast outside based on think forecast close have was this on our with recovery I side. would we I business. lasted to NEM thought has probably to X. were are line X out. to of for the guess, a October year in the from of

places calls, like think mentioned Florida and of the have the we struggling part Arizona kind on in I low U.S., costs. of those of and we southwest utility previous were some southeast

marginal. there's low. bit So remain but If there, little utility the costs benefit become benefit still more a does

been So thing a for Colorado. Florida, Same Arizona, Texas, struggle,

to So to really of increase beginning some some but there get think California, an we the signal. booking is traction, on the increase I reason is slide, begin which these about a we're states see positive the is in southern other talk retrofit that I think

October last long make feel early, comfortable that this too think we'd we do a yet not I September know will that and enough Now it's up trend saying into XXXX.

I think, such has volatile again, a been this year.

have I to year we the negative going think we'd here. end obviously, we a to But it's rather neutral signal. have also are signal, prudent or to a -- be thoughtful cautious -- positive and

the our that, So quite the of October, improvement September and bit is lasts that for of remainder and year. a in hope

put year-on-year bookings? just QX to do spot, think up be on the can you California Not Okay. you in in

that mentioned different on I confidence have year light. consumer it holidays, you of it to catching we of year-over-year, very may have a up bigger I really year. to it was the don't may this we flattish. beginning factors. will interest happened what Mid-November a very, the that December think end finally and the catching blame slowdown retrospect, has rates bookings through strong weather, those maybe think until was the chance get But been in but can into earlier, last all had a really up I finally closer really be year that And mid-November. been and up

December it will, and to have if will so flat performance, November a from year So year-over-year last easier was standpoint, soft. you be because

to goal flat something and closer our would our to November in is be that get So California. December hope and

Lee Our the comes line Sachs. of Brian from next from Goldman question

Could on more what remind had I could know, housekeeping factual. kind Beth, those still you. are, are? you some covenants But have actual guess one to believe working you covenant. might minimum and the what where those the us waivers coverage I stand today? cash be remind either you your was there with of question you're creditors and/or I what I relative us

covenants. the is the net debt X.Xx, a and adjustments nonrecourse. So EBITDA there's with all of that's all One to four

and And an covenant. and not the asset liquidity, interest minimum cash nonrecourse out coverage a an minimum there's take groups. You There's all of those.

And given the...

adjustments, And if but yes. final anything,

Understood.

Sorry, I there. cut you off

covenants here the on sounds morning, compliance it negative through plan you year-end? the outlook updated even be EBITDA those to that like all this market So still with in given you

looking, That's the a fine to always they're the in backward to to and restatement and about we we for else we're talking need. is QX, and get the need -- waivers anything we're final banks

little Okay. Understood. growth know kind and to shifting like chain cost a just hone of for there's I of the I inventory a in structure focus Helpful. bit. And I around bit. then matters gears been on you. wanted type guess a lot

in EBITDA talking You customers you're year XX,XXX did on this at the midpoint customers. almost new million last $XXX about XX,XXX year.

So your view it's mean that not last significantly off original I I know year. lower. the to entering year, it's But relative

here. EBITDA but is be to update negative new -- So given the significantly going clearly

assume So how are on how view out like played not year. navigate. a terms you of coming you're again, able is side XX,XXX if to of It you and you next it's you about on flat view if don't understand volumes in kind cost where formed a a are, market around customers, what think things? structure. structure of year, million the on thinking know in higher Because of wanted I the where the do fast EBITDA down, to wouldn't but fully optimistic quick that flat, given on year think if it's enough haven't still growth seems and been it better to you that can of process year cost a clearly pivot like have you more trends I be hasn't into did terms $XXX much and at next to in cost aggressive kind if modestly But given thought you to had cost

targets terms just some be there like think reduction? and achieving in needs of look to cost kind So of cost you could wondering what structure the what maybe

I'll that. Thanks, Yes. Brian. take

So right. you're

if look our XX%. at we beginning year, customer customers, XX%. you a very took this year, the was XX%, recall, were We of last guidance if grew our this year, think you cautious guidance revenue the I at year,

be So things be NEM, impact we a thought California didn't position to be and flattish a would bit little down will the year-over-year sell of our in but customers where down, we will revenue expect year-over-year. with that obviously,

this the we -- last -- thing round spending for scenario. waste. prepared are we But in of about weren't look on to fixed we this reductions our the first attack formula the announced is cost that our so very and second cost most. the matters our for places you discretionary That's today, announcement reduce but and you And call, we've talked that reductions,

prudent we're things down things but I that this structure to are the dealers, matter anticipate take fixed to done cost take that want really evaluate that you that to are away more and to possibility throughout will market our of -- don't You not continue in want discretionary this things kind yet. and to matter reduce. even to But away quarter. QX. costs fixed We'll eliminate during still customers

XXXX. in is. point thing see think this us I consumer the more agree as you a don't for we for And key strongly is it you're resilient what company emerge volatility, markets. making, this kind usually it with really The of to is stronger, But

from market say regardless those rates. and how is. volatile are and hard or position where through plus put cost to do standpoint, build on our goal or minus is We XX resilient in have of a prepared be an next XX. XX both globally, for ourselves and it a for these work is lot plus the to that's that's with happening reductions a have have flat we to consumer of company there world a it recognize minus XX or year. to So able will a impact can or to confidence how we're And disruptions interest

So it's right prudent now.

that's to exactly you spend thoughtful and You you have to and how spend, do. what be plan about we where

stronger So of cash have in QX and ready the we what remainder hope where a great the deliver the position recovery last be do plan for continue a in balance ourselves results company. our call, a and exactly focus put talked That's sheet, year liquidity, in costs, we throughout XXXX. we manage stronger lower I about to to

Peter. helpful, That's

So I a guess correctly, if fixed I there's charge of lot hear you focus.

gross in OpEx next trying see margins fair if into track more few your over 'XX, your to your than assume and it we'd in we're line? to So is quarters progress it the

you think cost possible. as be many trying the more I of key volatile I we the have lever when to successful as demand Yes, will. is is one your variable make think is And of to ways other

would And a work the in we're we this So company the year. costs we're fixed expect to our that that occurred where, And stronger business really the to calendar that's are now variable I much be we're happens. as time scenes. so get our costs reduce a fixed end many going fixed the again, if of and and that behind business position the only right doing then cost, they and goal resilient make that there is be more truly by

from line comes Ben Our next of question Kallo Baird. from the

is and just relationships a panel us you with side update could how open to of do both side, then agnostic on do battery platform kind Peter, manufacturers, an progress great up you the the And new brand, brand with -- that on value? you technology which panel as balance there. SunPower you

Ben. Yes. Great question,

up. back I'll first, So

of Maxeon partnership had many we've think since a spin-off. I you with the know,

We them. continue to work discussions with We're with Maxeon. in

that think an I both advantageous discussions optimistic that for is for out and we'll we're work think companies. agreement trended I both those positive, cautiously parties have

sold on we what and So stand. and never want. in QX, we a Maxeon dealers hit purposeful. consumers we've we enough, milestone what is hit that's that is Maxeon about not which more really panels. the panels actually, sold Interestingly before, It where That's side, we want non-Maxeon

more I to feedback, but dealer signal out to view number I makers one panels challenging a panel is to that business really from of quality our and are think is have mainstream point the of that's more a affordable. the From It's short differentiate today, that really put pressure from innovations and segment going any so another. And leasing probably panel it There's there. more commoditized. is high panel high-quality becoming becoming think really as also of more

all selling tests. I makers high-quality panel provide, know consumers. more our your I high-quality our and consumers other the think of We've that bar as with also that, with discussions options point, our quality by and that will will are think, dealers well. never quality we And been about but increasingly for compromise panels brand, But our meet I affordable to excited benefit anything we'll engaged from than

with about excited scenes to this that where that's different number I'd stay say the providers. We're today, forward. announcements going of another area we're a but make No behind So on working goes tuned.

a on Just you quarter. good follow-up had a the dealers, saw that there I

how I ads. up if think you're on come was in maybe technology-agnostic just or liquidity the dealer managing shift best kind wondering these you or it I'm you. said discussions the quarter more conversations those the of to relationships. of Thank

well-run they're had, They're been last of to during ourselves we've how turbulent They and Thank Yes. businesses. really particularly We me dealers, I bar interesting, -- our made is a this more experience. in the it's a as of master stand they've behind network become businesses customer great have They're we stories conference the world-class a and had the you. of our year. high dealer. recall stormy dealer highest kind Well, countless resilient providers. we've dealers we in investments dealer and even having seas think SunPower equity telling dealers that quality dealers world we the

many in recruit able so the QX and set So new record. that to a fact been we've

on survey know in every They us experience. front. the competitor our I U.S., it's to to solar attracted the that even is rated think solar goes the commitment by can the customer -- brand opportunity. talk you When pretty we're you world-class that the you closest more think residential that this and show it just across and in gap areas turbulent company very find them, a these and of I market, have SunPower great wide to between they're #X

to to that part lease to part So programs. attractive of fact we people of have you that be And want be ecosystem. add want then family. it the that They

a great that got have technology package We got app the attractive we've panel mySunPower and they We've dealers. options, love. for for really great consumers

to know expect adding we'll we over XX few if feedback dealers very add don't we able expect the the in QX, that did I the same high-quality we'll a dealers XX have quite next positive. to but continue has I been be rate at, to So to be months.

from the comes Jon line UBS. of next Windham Our question from

guidance question just EBITDA the per a $XXX $XXX to Perfect. was about quarter, had of customer In the million. I third million adjusted quick updated it $X,XXX.

terms quarter? think profitability year. that balance some previous rate of that parts? do we I maybe think sequential fourth the of in the into is moving of to much for to was the how this How And the that restatements about run two trying due

consumer new it way did this. is talked lower reflects the couple have demand guidance of bookings softer we in the things. So about summer and a the One we about we've is months, thought

and our point, So and even due We believe consumer June, it's May confidence. interest expectations. we're July was August, the rates low high below to but low the

normal in fact reflected -- getting that lot later, like later. customer to -- are and quarter. more for by that is that's to XX in done during choosing of So fewer a times where leases. it's That's been do Leases on days but our base rev average, XX we're get more days still our the rec the in particular business, California, fact exasperated XX projects a there's more we choosing of us

out profit really that revenue there. of are -- pushes as the recognition, still think it costs but and it So

past we and major then The you announced out. of the more earnings second quarters. final So been is think, today the we And to piece our have is, reduction term, know, as play those made in as fixed financials short at time take it's some reduction two challenging. reductions. But aggressive execute the part cost usually I cost

So we're today, QX. the XXXX. But benefit of the in get we partial example, for those only get year announced changes full going we'll benefit ones -- the in to

some amount gives quarter, restatement million-ish, a that -- this modest for you quarter. the the not on will has EBITDA The So little huge. the piece it's in A more call $X reflected it's, color. on it, be bit but impact

Our from of next Dumoulin-Smith line the comes Bank question from Julien of America.

much front, the and Look, it. just appreciate maybe liquidity starting just very time, real off on I you cash quickly. for Thank the

first through the as off? specifically. secondly, You I And sources the you think just tied you what how monetization periphery and how rotation think to? guys here, on South core I to on I about strong that, else mentioned further of liquidity follow-up then get specifically But a having of can got about do on raising specifically you the some reductions. of the some value about you asset options lease. point further mean cost the table, capital think but here, the financing business do

Yes.

mean, liquidity, I you're about as companies, your constantly know, all public debt. thinking Julien, cash So you

cash coming constantly it, new. optimize how out those we not still really and do inventory we the position. obviously, were we things. You're time free cash but even through million the pleased -- that -- to fact results. our spending managing were restatement we we're consistently, operations positive quarter, our kinds are terrific flow. good million reduction $XX on volatile and is you're times, the then focused of That's significantly progress. the do that before times, of reduction the cash we #X trying Those on have, The change In with liquidity that positive were And from the you're sell in thing you're last if to mix. things

A. pursue? there plan are Absolutely. that's to So And think for us I then options other

run generation. right that that of those And is the a so about now, options necessary. well, But the business put we if we're of really options but we're company in the cash pursue thinking focus generate none always with cash those to there position ourselves self-sufficient always #X at and need are where looking pursuing options things are we're

mean impacting repositioning? point, to business this you how fixed, and actually, about that repositioning versus how then just a OpEx the to presumably And But into sometimes. talking variable channels. if funnel, I sales EBITDA the to reductions versus other COGS I do decelerates geographic and one of the I'm manufacturing accentuate and you I customer? just same in per mean, How time, help of into try or like running on I much quarter Excellent. the is related more Again, quantify the think it you And -- How context I that, seems through COGS about seeing is that kind can the on if think I as 'XX Peter, trend platform And you're do again, some near-term that's well. per that and get about 'XX. the just mean into that a streamlining or linear much on that how put less point. right? side. the help whether cents like some you can of curious watt of through at pretty here. Because today -- about something then you necessarily different at translating maybe do dollars here? that reductions it isn't that's that provide you sales, substantive trend mean think reductions. geographic

Sure.

on with investment, questions So thing do do you focus. around marketing the run we're think to regionality number this set committed how you is long-term this, first business of of still part how one think a about the about

down that like running spend the way. not you the We're done things companies to number. about other just haven't pulling hit sometimes hear we So try a business marketing doing, to

it. and this do appropriately investing frankly, and in important still in marketing sales, we're to it's So business,

to So on business have forward. that have a base you build backlogs you business your we going be of to that the that run able and

don't you long-term marketing think shortcuts believe we really gold, run in it's in I important will. cutting business for to continue investment to and those a the like And I if with So are mind. us thoughtfully taking fool's and think sales,

strong regional same the volatile, that to don't you're have evaluate that, business, we regionally go out consumers. we And said and we really options it's a operations. have case, an the strategy in have this to our having are to we have spry point a Now serve our Direct We SunPower forward. because been and right direct what basis, particularly best can really year, as on advantage

Raven. a not Blue got any network. partners of great partners We've that great that We've strong of a are with part have ours We those dealer of subsidiary ecosystems. are installing got

demand really, how we're that it's is makes sense U.S. see process will economically. 'XX not throughout strategy how even prepare the the utility fourth be by the go-to-market across through changes what's to anticipate our that quarter constantly state for utility and you so going case, making by then do much state. you'll most And the It's And of the kind best in ourselves

a for resilient. positive minus But And again, year, big that's and XX lesson more if I volatility year, there's into to of model is flexible going is be it, a out the where this the and around made you And that for could be have reduction. COGS reduction then the reduction. we last prepared be how position think of coming was this more in ourselves we next question our -- prepared OpEx go build mindset that's put and a as think equally on year COGS great think about We've XX we progress your and effective. the on forward. I

materials from coming I materials down year-over-year between of think costs view, we point anticipate cost a and certainly 'XX 'XX.

positive us. value. We be will recognize for are are So year-over-year. should also value. that Consumers for that more prices down more looking looking Dealers are for

process how in go you described feel I next just the the that ourselves. around about I strong a for finish the you year. keep in those to think the overhead, position XXXX. How of between we COGS. through will dealers like we're ready be time costs that benefit we that really, your for And have your to optimize some it's a And of regional areas to infrastructure, material then think And do we'll I operations. and in do your potential QX, think position we'll So consumers, other by split be

you Thanks you very look XXXX -- everybody much. XXXX. strong a expectations forward next all for talking of early year your participation. hope, We for Thank close our for to and about to to we

Thank for you today's call. concludes conference participating. This

You now disconnect. may