Zeo Energy Corp. Revenue Disclosure

NOTE 8—DISAGGREGATION OF REVENUES AND SEGMENT REPORTING

 

Disaggregation of Revenues

 

The Company’s revenues are disaggregated based on revenue type, including (i) solar system installations, (ii) roofing installations, and (iii) energy storage solutions.

 

The Company’s net revenues for the years ended December 31, 2025 and 2024 are disaggregated as follows:

 

		Years Ended December 31,
		2025				2024
Solar system installations, net		$	68,154,316			$	70,295,305
Roofing installations			1,195,622				2,948,778
Energy storage solutions			–				–
Total net revenues		$	69,349,938			$	73,244,083

  

For the years ended December 31, 2025 and 2024, the Company had three customers that accounted for more than 10% of revenue. Aggregate revenue from these customers was $56,929,240 and $50,002,123 for the years ended December 31, 2025 and 2024, respectively.

Segment Reporting

 

The Company reports segment information in accordance with ASC 280. Operating segments are defined as components of an enterprise for which separate financial information is available and whose operating results are regularly reviewed by the Company’s CODM to allocate resources and assess performance.

 

Following the acquisition of Heliogen on August 8, 2025, the Company reassessed its segment structure and determined that it operates in two operating and reportable segments: (1) Sunergy, which includes the design, procurement, installation, and servicing of residential solar photovoltaic systems and related roofing services; and (2) Heliogen, which includes concentrated solar power and long-duration energy generation and storage technology solutions for commercial and industrial applications.

 

The CODM evaluates segment performance and allocates resources based on the operating results of each reportable segment, including revenues, cost of revenues, operating expenses, and net loss.

 

Prior to the acquisition of Heliogen on August 8, 2025, the Company operated as a single operating and reportable segment consisting of its solar installation and related services operations.

 

Corporate public company costs and other activities that are not allocated to Heliogen are included within the Sunergy segment.

 

Segment information for the years ended December 31, 2025 and 2024 is as follows:

 

		For the Year Ended December 31, 2025
		Sunergy				Heliogen				Total
Net revenues		$	69,349,938			$	–			$	69,349,938
Less: cost of revenues (exclusive of depreciation and amortization shown below):
Direct labor			7,920,972				(756	)			7,920,216
Materials			19,764,287				(6,790	)			19,757,497
Other			3,388,518				246				3,388,764
Cost of revenues (exclusive of depreciation and amortization):			31,073,777				(7,300	)			31,066,477
Less: depreciation and amortization related to cost of revenues			8,117,196				–				8,117,196
Total gross profit		$	30,158,965			$	7,300			$	30,166,265
Depreciation and amortization			459,306				–				459,306
Commissions expense			16,848,141				–				16,848,141
Sales and marketing (exclusive of commissions expense above)			5,850,264				–				5,850,264
General and administrative			25,103,491				2,437,195				27,540,686
Other income			(339,734	)			(24,184	)			(363,918	)
Interest expense			155,490				–				155,490
Gain on change in fair value of warrant liabilities			(957,720	)			–				(957,720	)
Total net loss before income taxes			(16,960,273	)			(2,405,711	)			(19,365,984	)
Income tax benefit (provision)			(263,649	)			–				(263,649	)
Net loss		$	(17,223,922	)		$	(2,405,711	)		$	(19,629,633	)

		For the Year Ended December 31, 2024
		Sunergy				Heliogen				Total
Net revenues		$	73,244,083			$	–			$	73,244,083
Less: cost of revenues (exclusive of depreciation and amortization shown below):
Direct labor			9,869,129				–				9,869,129
Materials			25,128,677				–				25,128,677
Other			3,069,290				–				3,069,290
Cost of revenues (exclusive of depreciation and amortization):			38,067,096				–				38,067,096
Less: depreciation and amortization related to cost of revenues			3,695,000				–				3,695,000
Total gross profit		$	31,481,987			$	–			$	31,481,987
Depreciation and amortization			1,141,538				–				1,141,538
Commissions expense			15,827,850				–				15,827,850
Sales and marketing (exclusive of commissions expense above)			3,759,223				–				3,759,223
General and administrative			21,558,136				–				21,558,136
Other income			(141,467	)			–				(141,467	)
Interest expense			333,539				–				333,539
Gain on disposal of property and equipment			(91,684	)			–				(91,684	)
Gain on change in fair value of warrant liabilities			(69,000	)			–				(69,000	)
Total net loss before income taxes			(10,836,148	)			–				(10,836,148	)
Income tax benefit (provision)			963,790				–				963,790
Net loss		$	(9,872,358	)		$	–			$	(9,872,358	)