Zeo Energy Corp. Segments Disclosure
NOTE 19- SEGMENT REPORTING
The Company has one operating segment and one reportable segment, the business of sales and installation of solar panel technology to individual households within the United States. The Company’s chief operating decision-maker (“CODM”) is our chief executive officer. Our CODM reviews and evaluates consolidated net income (loss) for purposes of evaluating financial performance, making operating decisions, allocating resources, and planning and forecasting for future periods.
All the Company’s long-lived assets and revenues are maintained in the U.S. Refer to Note 3 for further information on revenues.
The following presents the significant financial information with respect to the Company’s reportable segment for the years ended December 31, 2024 and 2023 (in thousands):
| Year ended December 31, | ||||||||
| 2024 | 2023 | |||||||
| Total revenue | $ | 73,244,083 | $ | 109,691,001 | ||||
| Less: Cost of goods sold (exclusive of depreciation and amortization shown below): | ||||||||
| Direct labor | 9,857,796 | 13,488,173 | ||||||
| Materials | 23,730,300 | 40,830,481 | ||||||
| Other | 4,433,423 | 5,118,020 | ||||||
| Less: Cost of goods sold (exclusive of depreciation and amortization shown below): | 38,021,519 | 59,436,674 | ||||||
| Less: Depreciation and amortization related to Cost of goods sold | 827,848 | 444,663 | ||||||
| Gross Profit | $ | 34,394,716 | $ | 49,809,664 | ||||
| Depreciation and amortization | 4,008,690 | 1,397,211 | ||||||
| Commissions expense | 15,827,850 | 28,679,176 | ||||||
| Sales and marketing (exclusive of Commissions expense above) | 3,759,223 | 1,644,883 | ||||||
| General and administrative | 21,628,724 | 12,949,067 | ||||||
| Other expense, net | (233,151 | ) | 183,401 | |||||
| Change in fair value of warrant liabilities | (69,000 | ) | ||||||
| Interest expense | 333,539 | 110,857 | ||||||
| Net (loss) income before taxes | (10,861,159 | ) | 4,845,069 | |||||
| Income tax benefit | 988,802 | |||||||
| Net (loss) income | (9,872,357 | ) | 4,845,069 | |||||
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.