SunPower Inc. Revenue Disclosure
(4) Revenue Recognition and Contract Balances
Disaggregated revenue
All revenue is generated in the U.S. Revenue is disaggregated as follows (in thousands):
| Fiscal Year Ended | ||||||||
| December 28, | December 29, | |||||||
| 2025 | 2024 | |||||||
| Residential Solar Installation | ||||||||
| Revenue recognized over time | $ | 160,987 | $ | 67,460 | ||||
| Total Residential Solar Installation | 160,987 | 67,460 | ||||||
| New Homes Business | ||||||||
| Revenue recognized over time | 46,686 | 32,205 | ||||||
| Revenue recognized at a point in time | 77,909 | 9,077 | ||||||
| Total New Homes Business | 124,595 | 41,282 | ||||||
| Dealer | ||||||||
| Revenue recognized at a point in time | 14,418 | |||||||
| Total Dealer | 14,418 | |||||||
| Total revenue | $ | 300,000 | $ | 108,742 | ||||
| Total revenue recognized over time | $ | 207,673 | $ | 99,665 | ||||
| Total revenue recognized at a point in time | 92,327 | 9,077 | ||||||
Contract balances
Accounts receivable, contract assets and contract liabilities from contracts with customers are as follows (in thousands):
| As of | ||||||||
| December 28, | December 29, | |||||||
| 2025 | 2024 | |||||||
| Trade accounts receivable, net | $ | 67,824 | $ | 25,842 | ||||
| Contract assets: | ||||||||
| Contract assets, current | $ | 14,122 | $ | 26,066 | ||||
| Total contract assets | $ | 14,122 | $ | 26,066 | ||||
| Contract liabilities: | ||||||||
| Contract liabilities, current | $ | 20,336 | $ | 10,003 | ||||
| Contract liabilities, noncurrent | 794 | 918 | ||||||
| Total contract liabilities | $ | 21,130 | $ | 10,921 | ||||
The Company receives payments from customers based upon contractual payment terms. Accounts receivable are recorded in an amount that reflects the consideration that is expected to be received in exchange for those goods or services when the right to consideration becomes unconditional.
The increase in contract liabilities is primarily attributed to the acquisition of Sunder in fiscal year 2025.
Changes in the balances of contract assets in the fiscal years ended December 28, 2025 and December 29, 2024 were as follows (in thousands):
| Fiscal Year Ended | ||||||||
| Contract assets | December 28, | December 29, | ||||||
| 2025 | 2024 | |||||||
| Contract assets, beginning of period | $ | 26,066 | $ | |||||
| Contract assets recognized | 12,979 | 21,451 | ||||||
| Reclassifications to accounts receivable | (26,066 | ) | ||||||
| Increase due to contract assets acquired in business combination | 1,143 | 4,615 | ||||||
| Contract assets, end of period | $ | 14,122 | $ | 26,066 | ||||
Changes in the balances of contract liabilities in the fiscal years ended December 28, 2025 and December 29, 2024 were as follows (in thousands):
| Fiscal Year Ended | ||||||||
| Contract liabilities | December 28, | December 29, | ||||||
| 2025 | 2024 | |||||||
| Contract liabilities, beginning of period | $ | 10,921 | $ | 3,478 | ||||
| Increases due to billings or cash received in advance | 6,750 | 2,642 | ||||||
| Revenue recognized from beginning balance of contract liabilities | (9,889 | ) | (2,560 | ) | ||||
| Increase due to contract liabilities assumed in a business combination | 13,348 | 7,361 | ||||||
| Contract liabilities, end of period | $ | 21,130 | $ | 10,921 | ||||
Substantially all of the revenue recognized from the beginning balance of contract liabilities was recognized in the current year.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Apr 14, 2026 | Showing above |
| 2023 | Apr 1, 2024 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.