Zeo Energy Q2 rev up 32% YoY, acquires Heliogen for energy storage solutions.

• Zeo Energy Corp. reports Q2 and H1 2025 financial results • Completed acquisition of Heliogen for clean energy solutions • Established long-duration energy division for commercial and industrial facilities • Successfully staffed and sold into new markets during peak season • Joined Russell Microcap Index following reconstitution • Returned to growth in Q2, executing well during peak sales season

Zeo Energy Corp. (Nasdaq: ZEO), a Florida-based residential solar solutions provider, reported mixed financial results for the second quarter (Q2) and first half (H1) of 2025. The company showed signs of growth in Q2, with revenue increasing by 22.3% to $18.1 million, driven by expansion into new markets and investments in year-round sales capabilities. Gross profit improved to $10.6 million, representing a 58.6% margin compared to 51.2% in Q2 2024 [1].

However, the company's overall performance in the first half of 2025 was challenging. Revenue declined by 23% to $26.9 million compared to the $34.9 million in the first half of 2024. The net loss widened to $16 million for the six-month period, up from $5.9 million in the first half of 2024. This deterioration in profitability occurred despite improved gross margins [1].

A key strategic move was the acquisition of Heliogen, expanding Zeo's capabilities into long-duration energy storage and AI data center solutions. The company also expanded into Virginia and joined the Russell Microcap® Index. Zeo's CEO Tim Bridgewater commented, "In the second quarter we returned to growth and executed well through most of our peak selling season. During the period we generated $18.1 million in revenue, a 22% increase from the prior year driven by our expansion into new markets and the early results of our investments in a year-round sales force" [1].

Management attributes the weaker first-half performance to "softer residential solar market conditions" early in the year and a decrease in deferred revenue recognition compared to 2024. The Heliogen acquisition represents a strategic pivot toward diversification, potentially reducing Zeo's dependence on the challenging residential solar market. This move into long-duration energy storage and commercial/industrial solutions, particularly for data centers, could provide more stable revenue streams and higher-margin opportunities [1].

Zeo Energy Corp. is a Florida-based regional provider of residential solar, distributed energy, and energy efficiency solutions. The company focuses on high-growth markets with limited competitive saturation. With its differentiated sales approach and vertically integrated offerings, Zeo serves customers who desire to reduce high energy bills and contribute to a more sustainable future [2].

References:
[1] https://www.stocktitan.net/news/ZEO/zeo-energy-corp-reports-second-quarter-2025-financial-7uso5p08zsv8.html
[2] https://www.zeoenergy.com