SPWR

My name is Siobhan Hickie, SunPower's VP of IR. I would like to welcome everyone to the first quarter 2026 earnings call. I will review a few housekeeping items before turning the call over to our CEO, T.J. Rodgers. All lines have been placed on mute at this time. This call is being recorded, and a replay will be available within the events section of SunPower's website. Please note that today's presentation may contain projections and other forward-looking statements. These statements are subject to known and unknown risks and uncertainties that may cause actual results to differ from those expressed or implied in our statements. Also on today's call, we may discuss certain non-GAAP financial measures. A reconciliation of any differences between those non-GAAP financial measures and the most directly comparable GAAP financial measures are available within our press release.

Lastly, we will be holding a question and answer session after the end of formal remarks today. For those watching via the webcast, you may submit a written question at any time via the submission box located on the right hand side of your screen. For those joining our live Q&A, please click the Raise Hand icon located at the bottom of your screen to enter the queue. With that, I will turn the call over to T.J. Rodgers, SunPower's Chairman and CEO.

Good morning. We've got the Q1 2026 results to show you this morning and answer questions. First, top lines, Q1 2026 revenue $72.8 million. That was down 9% from our guidance. Our latest guidance was $80 million, the market closed softer than we thought it would. Not catastrophic. 9% down quarter-over-quarter is not bad, it was weaker than we expected. This revenue alone would have impacted our Operating Income for $1.8 million. Our non-GAAP Operating Income was -$12.9 million, and that is a one-time event because we added $9.9 million in spending during the quarter. We had anticipated and still do anticipate a great Q3, and we started hiring 86 people last quarter.

Now we turned it around. We've gone from plus 86 to minus 115. Our cash was flat. You know, we raised $40 million, $41 million during the quarter. We used all of it to pay off debt, except to keep working cash at around $10 million. Since that time, this means since the beginning of May, we've cut our costs $9.9 million a quarter. That included RIF'd employees, 115. We went from 86 hires to 115 RIFs. We installed an across-the-board 4-day workweek through September. The theory on a 4-day weekend comes from my prior life in semiconductors. It's extremely difficult to build up a good workforce, and the last thing you wanna do in a yo-yo economy is lose your good people.

We did have a layoff. This was focused on overhead and redundancy among our 4 startups. In the sales and fulfillment area and the install area, we went to a 4-day workweek. What that means is, you work 4 days a week, you get paid for 4 days a week. Another way to look at that is a 25, or excuse me, a 20% pay cut. When you come out of it, you start working another day, the people you've got remain in place, and you have less of a arduous climb back. That was the theory on the 4-day work week. We've cut our inside sales group. We had a large call center.

We've cut it down to those needed to maintain our pipeline there, because I use the word paradoxically, call center sales have a lower profit margin and worse cash flow profile than our conventional sales force, which has now grown to 1,552 members, that represents 90% of our revenue. The inside sales group was using a lot of purchased leads from the market, and we wanted to get rid of that expense. We will continue this function, but at a reduced scale with the top producers. We reduced our finance admin costs, which had ballooned, not for any bad reason, but basically we went through an audit.

It was arduous, very arduous, and we just allowed anybody to be hired, either contract or employee that we needed without restriction. We brought that back down. You've seen this graph pretty much all the time. It's my proxy. It's actually the way I run the company. It's a metric I can understand and people can understand. We actually run it on dollars, but I report it on headcount. If you go back to pre-merger, there were 3,500 SunPower and Complete Solaria people. We picked 1,280 of them to start the company. Year ago, Q4 was our first quarter, we successively dropped that target over time. We have been in a period where the target's been 820, which is very lean.

We bounce up and down around 820 as we acquire companies who will bring in 100 people, from over 100 people from Ambia, for example, and then that pops us up, and then we work it back down with Synergy. Now just this quarter, we've dropped our target to 700. We think that's doable, and we're currently at 710. I wanted to talk about that before I went into the 2026 forecast. The cuts reduced our operating expense by $9.9 million a quarter. That's done. They were too late to make Q1 2026 better, hence the -$12 million loss. They will be in effect for 60% of the second quarter, and they will have a significant positive impact in the second quarter.

Our current Q2 2026 revenue estimate is $75 million. It's up $3 million from last quarter, still anemic, and the market is still anemic. We are starting with our acquisitions, starting to be able to bounce off the bottom. The operating loss will be reduced to $3 million based on the cuts that I talked about earlier. We're going to have a reasonable quarter, but a loss this quarter. Finally, an early forecast ahead more than 1 quarter. In Q3, we believe we're going to beat $96 million. I'll explain that in a little while. At $96 million in that quarter, we will be profitable and cash flow positive. We're going through a weak but mildly weak quarter on our way to a plan we've had all year.

That plan is shown here. This particular version of the plan is the one we used to raise money. We raised $41 million in the last quarter. Here you see revenue all the way through for 3 years. The guidance, meaning that's what I'm telling you and I'm planning on achieving and expect to be criticized if I don't meet it, guidance, and then out here is a model. Our $1 billion, our mission statement is to have $1 billion in revenue, and that run rate will be achieved in Q3 of 2028, so that's still on target. We're still talking about a big jump in revenue in 2026, and you can see that this is the non-trivial gap here.

As we've shown and put on the website, it is because our acquisitions, Ambia, Sunder, Cobalt, and the recovery of New Homes from the bankruptcy, they're all kicking in, and that's what we expect to give us a big jump in revenue in 2026. I put 2 more lines in here to show you where we are. We've done careful calculations. Our current break-even revenue, op inc break-even revenue, $76 million, and our current cash flow break-even revenue is $96 million. This $20 million extra, times the various yields going through the P&L is what's required to pay for the debt that we've got. We still are anticipating big growth in Q3. I'll let Dan McCranie's here.

He's running sales and marketing for us right now on a daily basis. I'll let him talk about that later. As a matter of fact, I'll let him talk about it now. Dan?

Thanks, T.J. Can I get the graph up, please? Thanks. This graph is total bookings beginning in Q4 2024, going on through Q1 of 2026. Just a brief word of what this definition of bookings is. This is just not a signed a home improvement contract from a customer. This is actually a signed contract plus a completion of the design plus funding approval. It's a robust, high-yielding bookings. That's what we use for our forecast methodology. You can see in Q4 2024 all the way through Q3 of 2025, the numbers were hovering around 1,500 to 2,500 jobs a quarter. You see a step function increase in Q4 2025. Remember, we acquired all three of our major acquisitions, Sunder, Ambia, and Cobalt, in Q4 of 2025.

Beginning in the second half of 2024, we started seeing the results of their bookings. You can see over 4,000 jobs were created in Q4 2025. In Q1 2026, we had a record of 4,446 jobs. Remember, there's about a 3-month lag between a booking and revenue in this particular industry. What we're booking for in Q2 now is, beginning now, is for the first stages of our Q3 revenue plan. T.J. showed you that we have a very robust Q3 numbers, a step function up, from about $75 million to $130 million. T.J. told you we're guaranteeing at least 96 and above that. We are currently on track in Q2 with the bookings we've got so far across all departments to meet that $130 million number.

We're happy with the way the bookings are going. It's predominantly the Sunder and Ambia turn on that's occurring, particularly in the springtime when the contracts get much larger compared to the winter. Going forward in Q2 2026, you're of course gonna have a record in bookings, and we think we're gonna have a record in bookings that allow us to do revenue in Q3 well in excess of T.J.'s $96 million.

Dan's used two words, guarantee and well in excess of $96 million. I can tell you right now that our lawyer in New York has just had a myocardial infarction, and he's laying on the floor. We'll call people to kind of recover him. I wanna make one other point here. These jobs, I don't deal with solar backlog is like oatmeal. It's just not firm. You can't tell where you're at. We have a definition the company means you have a signed contract, that is the guy signed up to begin with. You designed his home for him, and you showed him the contract, you showed him pictures and went again, and he signed up on that. You told him the funding was approved.

We've gone through our funders, and he was approved. Today, third-party ownership or TPO is the way people fund it, meaning, the funder is gonna pay for the house and then only installation, and his house will be part of a pseudo-utility later on for that funder. Funder. Okay. This is really good news. Normally, if I weren't talking about a $12 million loss, I'd be bragging about this and talking about big things in the future, and I still feel that way. Huh?

Bernard.

Bernard. What's wrong is what we changed. Boys, I worked till midnight last night on this thing. There are pages missing. I need to take about a two-minute break and bring out a memory stick here and load a computer with things I forgot, like our new CFO. Our new board member. I put it in my briefcase. I could tell you that I had planned this in advance, but that wouldn't be true. All right. Now I go to PowerPoint. Rise this thing. I'll give you the first page right now. Okay. That one I gave you. Nope. Convertible note offering, I talked about. Bookings are a record we talked about. We saw the detail. We filed our 10-K. It was a difficult audit.

I'm gonna talk about that audit and what happened. The audit required restatements, three restatements, three quarters of restatements, and they're gonna happen on time. That means within the next week. Here's the P&L. In Q4 2025, the last quarter, we did $90 million in revenue with $3 million in profit. Note 4 says we restated 10-Q results consistent with adjustments in the 2025 10-K. We've got a 10-K. That's God's word. That's filed. Everything is gonna be consistent with it starting today. I just wanted to point out that, and I will show you in a minute, that these numbers were what we reported before, and they were close to being right on, and I'll tell you why they weren't. Q1, $72 million, $12 million loss.

If you ask why the loss, it's right here. Operating expense going up dramatically for the reason I already said, we're getting ready for Q3. We're going to get ready for Q3, but we're going to get ready for Q3 in a shorter period of time. If I look at the 10-K audit, this is called prior quarterly results, so it's what I told you last year in meetings like this one. We were profitable in every quarter, minimally profitable in every quarter, and our non-GAAP op inc added up to $10.9 million on $308 million in revenue distributed like this throughout the quarter. After adjustments, post-10-K audit, the total op inc for the quarter dropped to $7.33 million.

Given the changes in the quarters, that was a pretty good result. The revenue for the company dropped to $300, and I'll explain that in a minute. There was one error there that caused that. If I look at the quarters, this is the first quarter of the new year after the acquisition, and in the 10-K audit, we uncovered a bunch of stuff and they had write-offs. They took our profit from $2.984 million, what I would call cash profit, down to a loss. There was a little bit of bleed over into Q2, and then Q3 became more profitable. In this case, this is non-GAAP profit, where we have put in actual cash gross margin.

The GAAP numbers have a different gross margin, which is lower than the actual cash collected based on some rules about acquisitions, where you're not allowed to acquire something and then have more than your average gross margin reported for it. In this case, our the actual cash gross margin was 80%, and that means we made more money according to GAAP than I reported. Okay. Old, new, and I'll just point out one thing. This is the new source of truth. When I talk about record profit in the future, it'll be because we're above 4.85, not above 3.5. When I talk about record revenue, it will be because we're above $91 million. This is history.

I wanted to show the comparison to show you that we played it straight for the entire year, and I wanted to. Actually, if you wanna ask which is the more believable scenario from a businessman's point of view, the answer is this one right here. This includes a lot of put this in that quarter, put that in that quarter. This is on your books, we've got to clean it up. We actually took the record quarter we ever had, and it got bigger. So it is what it is. This is the new source of truth. This is our base.

The good thing about it is for this amount of revenue and this amount of profit, I now have fully audited quarterly results where I will have in a few days when we submit the restated report, and we go forward with a clean set of books and a better accounting capability than we had. I want to talk about the audit for a minute. The standard auditing method is to sample line items from our books, and you have to sample because there are too many line items to actually look at every one. The auditors ask us to supply independent third-party documentation that validates the books. What does that mean?

For a given order, for example, revenue, they want the home improvement contract, they want the work orders that showed we sent people to their house, they want the drawings for the system that shows we designed it, they want the invoices for the panels that we bought and other things, so everything we bought to work on the house. They want the work logs, what crew went in what house when. They want the customer invoices. We billed them. Here's the bill. These are all hard proof points. They want proof of payment, they really did pay you. Then that means bank account showing money went into the bank as a cash flow kind of thing. Then they want proof of activation.

The system you built actually is running as we speak, and that involves typically getting a utility bill and showing them that there's been a change in the bill based on the solar. It is an arduous task, the audit, the 10-K audit, and there's only 1 audit a year that matters. It's 10-K, and that's the entire year. Then the quarters are unaudited till the end, and that's when you have the final statement. Okay. How big is all this? There are 9 steps in our solar installation process that lead to revenue. Our auditors required proof with hard third-party evidence on each of the 9 steps, on each of our 11,500 jobs in 2025. You multiply those numbers, you get over 100,000 line items. That means you have to sample.

In the sampling process, they go in, grab some, make you go through all of this stuff for it and prove it and document it. The sampling in this year required 309-- it led to 390 formal requests. 390 times our auditors said, "We need this," or, "We need that." By the way, I'm not making excuse here. Our accounting isn't where it ought to be. I'll tell you in a minute, the head accounting guy is now T.J. Rodgers. He's not used to this kind of accounting and will be better in the future. Like right now being the future. Our prior quarter reports that I just showed you showed well versus the 10-K, the truth, the source of truth for full year revenue.

The 10-K audited number for 2025 revenue was $300 million versus what we stated was $308 million. When we went back to find out what happened, the extra $8 million in revenue in the prior quarterly reports came from double booking a legacy company, Blue Raven, which doesn't exist anymore, from a defunct computing system, Albatross, which doesn't exist anymore. Somebody way back when, we're talking now probably Q4 of the prior year, booked jobs twice, and they came into our books, and we didn't start selling the things we acquired from SunPower until midyear, and then we didn't really start looking through what we inherited until the end of the year for the 10-K audit. Which by the way, I don't consider to be annoyance.

I consider it to be something that gives credibility to the company. That's why we're working hard on it. I'll show you what we've done. Okay, on the income side, Operating Income, I always use Operating Income rather than EBITDA, which I don't like. Our prior statement was $10.9 million. The new number was $7.3 million. The difference that was due primarily to pre-acquisition balance sheet assets, as I told you, using actual gross margin instead of a calculated gross margin. I'll show you this. I will show you. Nice having memorized this thing. These are the quarters that came from these quarters. This is the yearly total. It's really the only part of the 10-K.

These things exist only because of the requirement to do a restated 10-Q. These differences are big. Obviously, it went from a loss from profit to a loss in a quarter. That's when the auditors said, "We have to restate." We're doing that, and we've actually already done it. We already have agreement on the numbers. There's a filing coming up this week or early next week. Okay. Revenue did well. The extra revenue came from a double booking in an old system. The operating income, I showed a difference, but really the quarters being so different triggered the requirement to restate in Q1 2025 through Q3 2025. I stand for financial integrity.

I go, and this is an accounting term,, when I don't see numbers that are perfectly right and believable, and I've always been that way. I've been doing this stuff for 40 years. This is the first time I've ever had a restatement. All of a sudden, I had this horrible thought. When you lived in semiconductor nirvana, did you really never have a restatement, or did your finance guys who let you work on Moore's Law and transistors and they took care of finances, did your finance guys have a restatement here or there to that you didn't know about? When you're bragging about, "I've never had a restatement in my career," is it really true? I went on AI, "Is Cypress Semiconductor ever restate a quarter?" Let me start over here.

I did it 4 times. I've shown 2 of the 4. I changed the question because the answers changed, and I wanted to get a good look at it. Based on available search results, there is no direct indication that Cypress Semiconductor ever formally restated a quarterly report. The provided information shows during its time as an independent, publicly traded company, it warned of misses. The company often warned of upcoming quarterly shortfalls due to changing market, lowered guidance. They lowered earnings and revenue targets, such as September of 2004. They adjusted results. They reported GAAP versus non-GAAP results in 2016 and 2017 to account for acquisition-related costs. The search results do not contain reports of accounting errors, fraud, or formal financial restatements. I read this 1 second because it's got a little kudo for me in there.

It says, "The company, particularly under longtime CEO T.J. Rodgers, was known for a strong, no-nonsense approach to financial reporting." What has changed? I will not tolerate not having perfect finances, period. Period. No question, no debate, no meetings. We've changed. This first statement, we have received and accepted the resignation of CFO. I am not blaming this on our CFO. It's my fault, T.J. Rodgers' fault. That simple. I run the company, and if it's not perfect, it's my fault. We're changing CFOs. It's a mutual agreement to part ways and we've also agreed not to sling any mud at all in either direction. I have been appointed by the Board of Directors to SunPower's principal financial officer.

That's what you get called if you aren't really an accountant, but you run the finances for approximately 1 month. We're in the process of closing a new CFO, I'll be the principal financial officer for 1 month, I can guarantee you, I go to 2 meetings a day on finances. Although I'm not an accountant, I can read stuff and I can understand what's right and what's wrong based on all my experience. The board has appointed Bernard Gutmann, 8 years the CFO of the $42 billion chip company ON Semiconductor, to the board and to serve on our Audit Committee. We've made changes on our board to bolster our board. I want to introduce Bernard right now. He signed up last week, he was at his first board meeting last week.

Let me tell a story about Bernard. Are you showing his picture now? All right. You guys should be able to see Bernard now. I met Bernard. We're at Enovix right now. That's my free TV studio, so I don't have to do something at SunPower. Bernard is on the Enovix board, the battery company. I've noted, I sit right across from him in the board meetings, he's extraordinarily meticulous. Walks out, unlike me, he's got almost perfect handwriting, and he walks out with three pages of single line item notes every time. We've had zero problems at Enovix. I have now two validations, my old company and Enovix, that the ship can get run right and you shouldn't have things like restatements. It's just not okay. Okay. I know Bernard.

How do I know him? My SPAC invested in Enovix. We took them public. On my SPAC board was a guy named Manny Hernandez, who was my CFO. They created CFO heaven for me while I was running a chip company, and I got to work on Moore's Law, and he had no restatements for 30 years. He wanted to retire, truly, lot of grandkids, all that stuff. We said, "You can't do it." He said, "I've got a guy who's as good as me. Matter of fact, I trained him." I met Bernard Gutmann, and he was absolutely right. These are the two best CFO guys I've ever met.

With that little anecdote, I'd like to introduce Bernard, have him tell you a little bit about himself and what he saw at the first board meeting, if he's up for it. Bernard?

Thank you, T.J., for these kind words. I'm very excited to join the SunPower board. As T.J. mentioned, I had an opportunity last Friday to review and attend as an observer the board meeting and it was quite exciting. It is definitely with the issues that T.J. talked about from the finance point of view, a little bit of a challenge in the short run. I'm up for that challenge. It makes it even more exciting. I think we can set up the right processes and controls in place so that this doesn't reoccur. From the business point of view, again, I will be careful not to get the lawyers and other attack, what I saw was quite exciting.

With the successive amount of acquisitions that have been done, the pipeline seems to be quite exciting and Dan talked about it with the more than 4,000 bookings that are predicting some pretty good stuff to go in the future. Go beyond just the break-even, but into the moving towards the $1 billion opportunity that T.J. talked about. That by itself, business-wise, is quite exciting. Quickly from my background, I'm a industrial engineer by degree. However, I have worked more than close to 40 years, primarily in finance.

I worked at Motorola and ON Semiconductor in all kinds of roles, starting from the bottom as a financial analyst in a semiconductor factory in Guadalajara, Mexico, growing all the way up to becoming the CFO for the last 8 years of my career in this pretty heavy manufacturing environment to all kinds of activities, including debt financings, including audits, including operational stuff. My background is quite adept for helping TJ and the board in this upcoming challenge. I'm ready for it. Thank you, TJ.

I will give away one little secret. When Bernard Gutmann accepted, he said, "It's a really interesting company, but the pay sucks." Bernard Gutmann is like me. He's doing something that's interesting to him. What has changed? The SunPower team responsible for implementing Sarbanes-Oxley accounting procedures, if we had that in place right now, we wouldn't be talking about this topic. We've changed the line of command through the quality Vice President, Surinder Bedi, directly to the Chairman of our Audit Committee. The people who had been sucked into the hubbub of the audit working on SOX are going back to work on SOX only. The Chairman of our Audit Committee is Ron Pasek.

He's the only other former CFO on the board, and he and I were overwhelmed with when the audit came in with so many adjustments required. Both of us were quite surprised. I always brag about having eight former CEOs on the board. We have an extraordinarily good board. Right now I wish I had four CEOs and four CFOs, but we made a big step forward here. All SunPower responses to audit questions, so the 390, are now formal documents as opposed to telephone calls between us and the auditors. Formal documents that are pre-reviewed by the quality department, and they have a spec for when you respond to an auditor, what that response needs to contain.

If you don't follow it, they reject your response, and it doesn't go to the auditor. They understand they can't be slow, so they typically deliver an audited document, our own internal audit, 2 hours after the request. We never would have made it through the audit in time if we hadn't turned on this process, and it will That's the way we're gonna work forever. We bolstered our finance team. We needed to do more with people from operations and quality. I'm talking about 10-ish from either or both groups. The finance guys, and the reason I'm not casting aspersion on any of them, were getting questions that were beyond their scope. I mean, a very common result in solar is the guy owes you money.

You call him up, he doesn't answer. You call him up, he doesn't answer. You call him up, he doesn't answer. You find out he doesn't live there anymore. His financing expires, so you can't get the last payment. You have to get permission from the new owners to get in the house. If there's something wrong, you've got to work on it. All you have to do is have something like 500 to 1,000 jobs like that pile up, which they easily can over the period of a couple of years, and that is the quality poison that I see is more responsible for the malaise in the solar industry than anything else.

This way, we're putting together a team to respond to those questions and preempt them in the future, creating processes such that nothing happens that isn't pre-audited in our own company. Okay, I gave you this one and this one and this one. We've done our cuts. They'll be two-thirds effective this quarter. This quarter will still be weak but better than last quarter, and the losses will be contained a lot better. I validated again the model we used, and it's on our couple websites, and said we are going to make this jump. It's real. One of the reasons you've been hearing about Sunder for a while, I just make this one point. Sunder is a sales company.

Sunder manages 1,500 reps with 100 or so internal people, and their product is a signed contract, one of those contracts with all of the parts that I said earlier. They therefore have sold their product, and it's gone. There is no pipeline inside of Sunder, is really the point. When you buy them, you buy a machine that creates orders, and you don't start collecting orders in your own pipeline until after they're signed up, and that's why it's taken a while to fill up the pipeline. The same is true for New Homes, where we've gotten a lot of orders for New Homes, but that pipeline was dumped actually before we took over, took over the SunPower assets.

That pipeline was already dumped too because the builders, the corporations, they moved on, and they were gone, and we had to refill that pipeline. Then I pointed out, and you can write these numbers down and do incremental calculations on them, when we get profitable and when we get profitable and positive cash flow. Dan talked about the business. Now I'm ready for questions. I apologize for the mix-up. I'm sitting here thinking, "How could that possibly happen?" The answer is, we mail a few of my slides in a not the final slides. I worked on them last night. The email here, those slides we used to bring up the protection system and everything. They weren't intended to be the report, but that's what I ended up showing you. Apologies for that. Questions?

Thank you. Our first question today comes from Derek Soderberg at Cantor Fitzgerald. Derek, you may go ahead.

Yeah. Good morning, everyone. T.J., I appreciate all the detail you provided on the business here. I wanna start with the record bookings number. Specifically, what's the average revenue per job in the current mix, what's the assumed conversion timeline from booking to recognized revenue? I've got a follow-up.

You have it. Hey, Derek. The average selling price right now is about $32,000 per installation. Just as an aside, that's going up as more and more of the installations have battery attach. Battery attach is big, as you know, in California, where it's almost 100% battery attach, and we're getting very strong in California. About 45% in Texas. ASP is $32,000 and climbing through the year. Your next question involved, I think, the cycle time associated, the time between FTC or a hard order and revenue.

Yeah.

Was that the question?

Yeah.

It's the median right now on that is right around 2 months, 2-plus months. It ranges anywhere from a low of about 35 days to a high of about 115 days, depending upon the complexity of the roof install. We use as a general rule of thumb about 90 days. If you see our bookings pop in Q2, just track about 1 quarter forward and you should see the grand bulk of that revenue.

The corollary of that is, in the fourth quarter, when things start to slow down, you've got a bunch of bookings, and that 90 days worth of bookings jumps from Q3 to Q4. You hit January and we're still, promising to come out of the January, February, March malaise, and we can see it.

Got it. That's helpful. and then TJ, we're seeing some other solar companies, you know, over the past 6 months or so, specifically, you know, a big residential installer, you know, filing Chapter 11. Can you talk about that dynamic a bit, what you're seeing out there, and are you guys benefiting yet from survivorship? Thanks.

Benefiting from survivorship. We're seeing bankruptcies. The big surprise, and it's public, was Freedom Forever. They're bigger than us, they should be more robust than us in terms of hard times. We benefited from getting some of their salespeople. Not a lot. We've already acquired 3 other sales forces to bring us up to over 1,500. I don't wanna say the other area where we acquired because I don't want the other guys to know about that. We're not hiring right now, so when we hire 5 or 6 people in a key area, that means 5 or 6 people elsewhere, typically in an administrative function, go away because we got a 700-person limit in the company.

What's bad is you'd like to say we are benefiting from the malaise in the industry right now. What's bad is we had to lay off some people, not good. Screws up morale, gives you reset. Also, your sales force are 1099s, what that means is they run independent companies that you don't control. They don't work for you, they can disappear whenever they want, they often disappear anonymously, you find out later when nobody's answering the phone why. It creates unrest in the sales force, we're working on that right now 'cause a lot of our salespeople are new. They're coming in, "Man, I thought I escaped. SunPower's bragging about record this, record that.

I thought I escaped, now I'm watching. There were some minor things on the internet. Minor. SunPower stopped buying, what do you call them?

Leads.

Leads. Stopped buying leads. Yeah, right, 'cause the group that used them, we cut way back 'cause that group wasn't effective as our main sales force. SunPower stopped buying leads, and of course that's interpreted as imminent bankruptcy and it feeds the frenzy. solar industry is one of rumors, almost always unfounded. It's rare to hear the truth on the street in solar industry. So I hate that worse than I like the benefit of being able to pick and choose good people that we can wire down.

Picking and choosing has gotten us some top talent. That's why I think you're gonna see extremely strong Q2 bookings coming forward.

Got it. Super helpful. Thanks, guys.

Thank you, Derek. Our next question today comes from Gus Richard from Northland Capital Markets. Please go ahead.

Yes. Thanks for taking my questions. Just curious on the bookings in the quarter. I'm assuming those are all installs. How many of those were, you know, converted from Sunder Energy sales?

Make sure I understand your question, Gus. Are you asking how many of those bookings-

First question is, I guess first part is those bookings are installs, correct?

Correct. Yes.

Then of those installs, you know, some of them I'm assuming came from Sunder sales.

Correct.

I was just curious how many of the Sunder Energy sales got converted into installs?

Let me take it. Well, the answer is these are the ones being installed now. Sunder is difficult to say No, it's not. Actually, I prepared a slide. I'll show you the slide. Probably regret it later. There it is. Okay, this is our 1099 head count, number of salesmen. This is old SunPower. These guys sold loans, not TPOs, to people in the Midwest who wanted a 5-year loan to put on solar, and they're To me, it's pretty simple. The TPO pitch is actually more attractive to an individual. This group, it's essentially three-quarters of them have gone away. We picked up Sunder, this one you're talking about, and we still have 713 of the 900 people we had there.

We picked up Ambia, that's another 300, and we picked up a company we haven't talked about publicly because we just hired them, and that's Purelight. This is another company that had got in trouble. They've got an excellent sales force. Right now we've got a rejuvenated sales force that specializes in third-party ownership sales, and lucky we did. How many are Sundar? About half. Direct old Sundar, but Eric Nielsen, the head of Sundar, president of Sundar, and now our VP of Marketing and Sales, runs all these groups. They're now mixed together. They've been mixed together for 90 days. I only had this graph created so I could look at what we acquired and what it looks like. There's your answer.

Half Sunder, but all Sunder 'cause the guy that ran Sunder runs sales for us, except for New Homes, which has got a different sell to corporate customers, and it's a very small sales group that deals with that.

Got it. Then, obviously in the news is the war in Iran. New England, for example, uses LNG to produce energy, and it's better for the guys who sell LNG to sell in Europe, and their utility prices are gonna go up as they are in a lot of places. You know, sort of how much has the change in the energy landscape, if you will, starting to incentivize consumers?

That's the biggest driving force. I mean, you asked all the questions that I put down in the appendix to save time. This is solar energy additions to the grid, so now talking about utility scale solar. There's no oil of any kind up here. We have only natural gas is being added today. First it says, "Here's solar," it says solar didn't matter enough even to be a blip on the graph until 2011. If you look at the growth of solar, it's been spectacular. Here's a bad year. Here's another bad year that lasted for 3 years before it recovered, so solar is not immune to dislocations. Battery is the second one.

Battery, if you really think about it, there's batteries in the grid where they take some power source and store it in the battery. There's also batteries on 1 million houses in the United States. They're the best kind of battery 'cause they keep that. What they do is they don't add power to the grid. What they do is they reduce the power that house requires. They store the daytime sunlight energy, let the customer use it at night to avoid the high, high-priced natural gas, the kilowatt-hour fees. Right now, if you wanted to talk about is this market good, market's great. If you wanted to talk about what does it mean when the price of utilities go up, that's great because our prices are going down, not up.

There may be a glitch due to something in the supply chain. Our prices are going down every year and have been. This whole rise here in solar is because we've become truly economically competitive. I don't run around talking green this, green that. I run around talking about, "You pay me so much a month, and your bill will go down by more than that per month for the rest of your life. What do you think?" Okay, then, let me see. By the way, I won't discuss it. This is Q1 2026 revenue. First plan, this is a positive event we wanted, our second plan, our third plan, then actuals.

I only look at this every day, and I got nervous right about there when this second plan got created there. We had drifted off just a few percent, and we started reacting right there. If we hadn't done that, we wouldn't be in the shape we are in right now to react to this crisis. Let me leave it there. If somebody asks me another question, I would love to show you that graph, but I'd rather take questions. Go ahead. I'm set. Thanks.

Thank you, Gus. We have a couple questions coming in from the web. The first one is, "With the increased bookings that you've discussed, what is SunPower doing to ramp up installs to meet this incremental demand?

Yeah, that's a great question. Well, we were in the process of hiring 86 people for our install organization to handle all that business. I came in one day and, you know, I'm the hotshot from Silicon Valley, and I said, "Wait a minute, don't hire 86 people, lay off 115 people." The market has whipped us around and the four-day workweek I discussed was designed to allow the company flexibility. The reason my graph revenue shows $130 million in Q3, and I've only guided to $96 million, 'cause that's cash flow positive and that's sort of a minimum step we have to take, is that we still have to do the ramp.

Actually I was driving over here today, I was thinking about next guy I'm going to call is Spencer Jensen, he runs our ops, and I'm going to tell Spencer he needs to take his new employee training time from his current 4 weeks, where I pay salary for 4 weeks and don't get anything, to like 1 week. We do that in sales, in our sales division, and we need to get faster. We need to be able to react faster, because I'm not going to buy it up front and spend money now on that increase that's coming later.

Thank you. We have a question, T.J., to you. Last year in July you spoke about, potentially, you know, looking to wind down and exit as our CEO in about a year, which is coming up. The question is, would Dr. Rodgers like to revise that timeline and reinsure investors of his continued attention and leadership within SunPower?

Well, one thing I kinda like is that I was retired. I was on 6 boards, so I wasn't exactly doing nothing, but I was retired for 6 months. Now I'm enjoying being back in the full war mode. That's 1. 2, I would never leave a mess behind and have them say, "Rodgers, you know, screwed it up and then took off." That won't happen. The aren't gonna win, we're gonna win, and I'm gonna be there as long as it takes.

Thank you. We have looks like one final question regarding battery attachments. "What effect do they have on the overall profit margin of your sales?

Batteries are more profitable at solar. Best job is called a grid-tied battery. That's where you don't even back up the house. You think, "Well, why would you buy a battery and not back up your house?" The answer is you buy a battery to collect cheap, free energy at noon, and then dump it into your system at night if you live in San Diego and they want $0.40 a kilowatt hour for it. A grid-tied battery is one thing hanging on your garage wall and then one hookup. It's very you can do two of them a day. Batteries are sort of an afterburner for us because to that $32,000, add another $10,000 for a battery, that's $42,000.

Thank you very much. That concludes our call for today. Dr. Rodgers, do you have any final closing remarks?

Well, yeah. I'm embarrassed by that. It is the last event that basically is tied to the string of misfortune we've had surrounding the 10-K. I frankly would like to thank our auditors for. You realize they bulked up from 10 to 17 people just to do I created the memo machine and started machine-gunning them with answers. They bulked up from 10 to 17 people and stayed with us until we tied it up. Now I'm gonna have three perfect quarters restated by next week and I've got the year of the 10-K done. Going forward I now know, as you've seen today, the details of how that happened and it's an interesting problem to manage that.

I've started to realize the reason there are so few install companies that are public is being solar, and the vagaries of having your stuff spread all over the U.S., as opposed to in a nice controlled factory. Being solar, the accounting for a public company are not incompatible, but it's difficult. One of the things I'm going to do is make our accounting a weapon that's cheap, efficient, and accurate so we can focus on the other things. I didn't talk today about our new products, I didn't talk about our new bifacial panel we just put in the boardroom to show the board last week, so that our people can focus on that, not on the error.

Thank you very much. That concludes our call. You may now disconnect.

Good morning. My name is Sioban Hickie. I'm VP of IR, and I would like to welcome everyone to SunPower's Fourth Quarter earnings call. I will take a few -- I will review a few housekeeping items before turning the call over to our CEO, Dr. T.J. Rodgers. This call is being recorded, and a replay will be available within the Events Section of SunPower's Investor Relations website. Please note that today's presentation may contain projections and other forward-looking statements. These statements are subject to known and unknown risks and uncertainties that may cause actual results to differ from those expressed or implied in our statements. Also on today's call, we may discuss certain non-GAAP financial measures. A reconciliation of any differences between those non-GAAP financial measures and the most directly comparable GAAP financial measures are available within our press release. Lastly, we will hold a question-and-answer session after the end of formal remarks today. [Operator Instructions] I will now turn the call over to Dr. T.J. Rodgers, SunPower's Chairman and CEO.

Morning. We have some guests here today. First, we have John Berger, I'm going to introduce later. And we have 2 directors of SunPower, Dan McCranie and Will Anderson, both of whom I have slides to introduce. So let me get right into it. Our logo is the Helios airplane. It had 35,000 watts of SunPower solar cells on it back when it flew under its own power, takeoff 92,000 feet, an unbroken record. I'll relate to one more aspect of this airplane today, you notice this reflection here. That reflection means that the bottom side of this wing is clear plastic. So this wing, if you looked at it, you can look right through it and you see the struts and clear plastic on one side and solar panels on the other side, meaning all the light coming from down here can come in the bottom of the wing and add power. And that's what's called bifacial that is the cells accept energy from either side. I'll talk about that later. Dan McCranie, I introduced to you a very short introduction. He's been on 10 NASDAQ boards. That's what he did. Like after he left Cypress Semiconductor, who ran VP of Marketing and Sales. And he was the Chairman of both halves of Motorola when they split up into Freescale and on, and he was on the Cypress Board as well. He's also run [ SST ] Technology, which is the -- was the spin-out of Intel in nonvolatile memories. Will Anderson is on the far side. He's MIT, Stanford MBA credential guy. He's been on the SunPower Board since 2010, and he was actually the Founder and CEO of Complete Solar, the company which acquired SunPower in the SunPower name. Now he's on our Board. And he's a glutton for punishment. He's got another start-up called same-day solar, and he's learning how to do financing. So if that works out, that may be a way for us to get into that business, which we're not in right now. Okay. I showed you this slide before, and I'm showing you again because I think it's cool. This is a picture of the Helios flying at 80,000 feet. Curve of the earth clearly above the atmosphere unbridled sun coming right in. Of course, that means more energy. And I did a little engineering work since last time you saw this. At 80,000 feet, atmospheric pressure is down to 0.4 pounds per square inch from 14.7 psi at sea level. And okay, what does that mean? Well, here, obviously, it's -- you can't breathe, but there's more than that. The boiling point of water at sea level is 212F and the boiling point of water at that pressure is 59F. Said another way, if your body is at 86 -- 98.6 degrees Fahrenheit, your body temperature is enough to boil your blood. Hence, if you fly in one of these airplanes, you have to wear a space suit. And this is my favorite of all the pictures. You can see completely sealed up oxygen. They'll run in 4.7 pounds of oxygen, which is partial pressure that you get on earth. And I really like this one. And this airplane can stay up forever because it has batteries in it. This is a report we put out this morning early. Record financials. I'll talk about that. We have 2 acquisitions I'll mention, and we just signed a $55 million equity line of credit. I'll go through this in detail on the next page. The main points are our revenue set a record of $88.5 million, up from $70 million last quarter. The main thing is that we have 2 new acquisitions, Sunder, which contributed a full quarter of revenue and Ambia a partial quarter. Our operating income is a -- for the new SunPower record of $3.5 million. That's only 4% of revenue. Our target is to get to operating income to 10%. And our ending cash balance was $9.3 million, up from $5.1 million in the prior quarter. And we -- I already mentioned this, but we increased our equity line of credit with White Line Capital, that's our vendor in Southern California to $55 million on January 11. It's now signed and the shareholders have to approve it because it's an equity transaction. We've got a shareholder meeting coming up. A little bit of details. These are abbreviated preliminary financials. I don't expect them to change a lot, but I've limited to the key numbers that investors want to see based on my experience. So on the non-GAAP side over here, we jumped 26% quarter-on-quarter revenue to $88.5. On the gross margin, we had exceptional gross margin because we cleaned up some old backlog that we bought from SunPower. And the reason I put base 38% is to say that's our normal fall-through of gross margin. I urge you not to change models and put in some giant numbers, which are unmakable in the long haul. And then I'll point that our OpEx went up only 8.5% quarter-on-quarter. And by the way, we're working on that. That can get better, yes. That left us with a record profit of $3.545 million, up from $2 million last quarter. We also added $4.3 million in cash. This did not include any money from the ELOC I mentioned. This was the "natural quarter" that we had. This is a graph of our operating income. So it shows time before acquisition, time after acquisition, $0 here, massive loss for the 3 components of what turned now called SunPower, 1 quarter of loss and then now 4 quarters of profit, including a record profit this quarter. We came out of -- this is a revenue sort of a footnote. We came out of SunPower acquisition with about $80 million a quarter in revenue, $320 million run rate. The record was set in the second quarter. We got the bad news of the ITC cut in the second quarter, and our revenue dropped precipitously, but we were ahead of it with cost cutting, and we actually made almost the same profit on a lot less revenue. We recovered in the third quarter a little bit to $70 million of revenue. This number when I first showed it to you 91 days ago was $3.123 million, and it was a record. We chose because we had a lot of aged backlog that we inherited from SunPower, now completely collected, I might add. But at that time, we had aged backlog. We took $1.1 million out of this number and stuffed it into reserves. So we have reserves in the $8 million range. We've been getting our reserves so we can have some sort of hiccup in the future and not trash our earnings. The quarter we're in now, $88.5 million, primarily a large growth due to the start-ups just starting -- to the acquisitions just starting to kick in, and that led record revenue to record profit. For the next quarter, I've got a conservative estimate here where -- by the way, this shows the acquisitions, Sunder, Ambia and Cobalt. I'll talk about each of them later. I went down 4.4% in the estimate and the profit is commensurate with that. That's conservative. We believe we can make that number. But this quarter is typically the bad quarter for solar, the winter quarter, and we're deployed in the north. And then you've got the ITC uncertainty. So this will still be our second best quarter ever, even in the uncertain perfect storm quarter of Q1 '26. Okay. It was our fourth consecutive profitable quarter. So our whole year was profitable. That comes off of 4 consecutive years that the prior SunPower different company did not make money. Our Q4 '25 revenue and operating income were both records. Our 2025 revenue totaled $308.8 million. So we managed to hold the revenue and not lose it. And there are factors that can cause you to lose revenue in our business. I'll talk about that later with a profit. And that included a loss of this profit of $1.1 million in bad debt reserve we took last quarter. Our Q1 '26 revenue is expected to be $84 million, and I say it's highly uncertain. I'm pretty sure of the $84 million, but I put some slack in the writing. Our Q1 '26 operating income is expected to be positive. That's the main event. And if we make it through Q1 with a positive income, we're going to make it through 2026. I'm going to say one thing about marketing. This is the Energy Information Agency, sort of the -- one of the official places to get data. This is United States residential solar penetration. So it says that in the United States, we currently as of 2024, this report, we're 5.6% penetrated, up from 3.7% in 2020. And then here, you can see in the West, the sunny West in California, where green is in big time, the penetrations are higher. But even then, the highest penetration on the list is 15.5%. Point is I don't think about the market as being competitive like I used to with chips. Don't worry about my competitor that's got to RAM cheaper and mine or processor with more megaflops per millowatt, don't think about any of that. The market here is an ocean, infinite. And when you throw your cork in the ocean, it doesn't cause somebody else's cork to go up or down. It's just there to be taken. And that's why I am not going to talk all about ITC and speculate on rates going up and down because this is an exponential growth curve. And the reason it is, is there. Today, 94.6%, 100% minus that of qualifying homes do not yet have solar. And the price of solar, your competitor isn't confident. The price of solar goes up -- the price of electricity goes up every year, and it goes up faster than the index than any inflation index. So your competitor is giving you business. So stop thinking about do you have a hiccup, what happens with the dislocation in the market. Stop thinking about that and go take some market share. That's where my head is. This is a graph of acquisition-related increases in our sales rep headcount. So in the solar business, we talk about 1099s, meaning in the IRS, they're 1099s, meaning they're independent contractors. They don't work for us. We can't give them orders. We can't force them to domicile somewhere, and they can quit it well. And the fact is in the 1099 world, oftentimes people will go to a different company, and you'll find out about it later. So these are our reps. And the name of the game here is since you don't pay for them, you pay them only commission. They are only incremental costs, big incremental costs, but only incremental cost, you get as many as you can, okay? So now we go back to the beginning of this year, we had 1,126 reps. They all came from old SunPower. And old SunPower was in the process of a strong decline because the old SunPower went bankrupt. And a lot of the guys decided to head for the road and find a new home at that time. In Q3, we announced Sunder. Sunder was, in my mind, the most important sales company in Salt Lake, and that's Solar Valley, Salt Lake, Utah. And we brought on -- we more than doubled our sales force. Now you notice here, while this sales force was declining in Q3, the Sunder sales force actually grew. So when Eric Nielsen took over and started running sales right, better than me for sure, then the 1099s decided it was in their interest to come to work for us. So that -- this number has actually been growing. Then in Q4, we announced Ambia, and Ambia was 20 -- added 203 salespeople, and they're still with us. This is a snapshot on today, so I can give you where we are now. And then -- we've never announced this, but another company in Salt Lake went bankrupt. It's called Purolite. It had 350 sales reps that were generally considered to be really top-notch. So we created a program to bring them in, talk about it later, and we hired them. So I didn't put this on any of the financials because they're 1099s. We have now more 1099s working for us, and these guys are pretty good. And the fact is the results are producing so far are pretty impressive. So bottom line, we've gone from 1,100 to 2,000 rounded out, almost double in our sales rep headcount. Having said that, there's another headcount that matters and matters in a different way. This is our direct employee headcount. These we call W-2s, those that work for us, and we pay them to standard employees. That needs to stay stable because when this goes up to a first order directly proportional, your cost going up and your gross profit going down. So this thing goes all the way back to Q3 '24 back in that massive loss quarter I showed you earlier, you can see why there was massive losses. The combined companies had 3,499 employees. We used the ARC strategy and put -- we said we can handle 1,225 on the ARC, and we achieved that by the fourth quarter of year before last. Then we tightened our target to 980, and we achieved that. And now we're in the game of acquiring and acquiring. So we pushed up a little bit. We actually were down here, but then we pushed up. Ambia had a bunch of direct employees because they were a real company with EPC and real meat in that company. And now we've started using synergy where we have 2 of this and 2 of that to cut down and we're back down to 47. The goal is still to get to 820 after having absorbed the best people from 3 companies, all of the sales reps that want to work for us, plus the best of the other W-2 people using synergy to use the best of decision, who stays and who doesn't. Okay. If you then hold your headcount constant and grow to record revenue, then our overarching metric is revenue per employee per year. And this is a relatively crude metric, but it's not that bad. You just think somewhere between $70,000, $78,000 a year for the average employee in solar, multiply that and you got a cost and you take your headcount and you've got a major part of your cost furthermore, everybody adds other expenses. Okay. So we came out in the first quarter at $285,000. We lost money that quarter. We cut our expenses that quarter. So I'm going to tell you that this number right here, $285,000 per employee per year is our breakeven level. It wasn't in this quarter, but it is now. Then we jumped up to 360, times are full line high, then we got clobbered with our revenue going down, and we stayed at 304. That's make a little bit of money level. Then we climbed to 337 last quarter. And this quarter, we're setting a record first time we've been over $400,000 per employee per year. So there's Sunder coming in and there's Ambia coming in. And those companies brought in more salespeople and sales than they brought in people. Therefore, revenue per employee went up in each case. I'm comparing to Sunrun because I admire them. If you take their revenue of $240 billion and 11,058 employees, these are published numbers, you get $217,000. -- not a completely fair comparison because they also run the utility, right? They keep their jobs. They don't sell them like we do to some other financial company or to the owner of a house. They keep them and they're building a utility and they have the infrastructure to bill and collect it. But nonetheless, I'm very proud of our productivity per employee. And I don't know because there's not a lot of data, but I think it's probably the best in the industry, certainly as good as the chip industry was when I was in that. And final point, we have a clear line of sight to get to $0.5 million per employee per year. I can see that because we're just now starting to incremental revenue doesn't add -- I don't add an incremental lawyer to add incremental revenue. I don't add an incremental controller to get incremental revenue, et cetera. So we're amortizing overhead. This is a graph of market cap, your ratio of market cap to revenue. If you looked at it on a stock basis, it's a price per share to sales per share ratio or PS ratio. So it's the analog of PE ratio, but market cap on sales. And here, you see an interesting trend. You see SunPower, I mean, that's almost planks constant. I actually had written it here, and I got rid of it because it was too cute. It's 0.55 plus or minus 0.15. So then I said, is that good or bad? And a while back, when we were down here, I said, well, the whole solar industry is getting clobbered, and we're doing about as well as them. Well, if you look at the leader, Sunrun, they've recovered, and we have, and I'm going to address that today. that is a problem for me and an opportunity for investors because yes, you guys managed to move that thing right across my arrow. Okay. Because that's a 3x change if we can figure out the formula to get to that multiple, which is achievable. And I'll also point out that we have a high-tech index that PS ratio for 5, 6 companies is 2.2. And if you look at a company like Enphase, a solar company, they're up at 3.3. So this is still depressed as an industry, the leader should be higher, and we just want to catch up. That's my job. Okay. So why did Sunrun recover from the ITC cut while SunPower didn't. And I've listed 3 reasons here. One is cash. Last quarter in this meeting, last quarter, we reported $5.1 million in cash. And I did that honestly, so you all know where we were. And I won't say freak out, but people are going, whoa, that's not enough. So we have raised our equity line of credit. This is -- so an equity line of credit, you sign a contract, a broker agrees to have stock put on them and sell it and give you back proceeds. So it's like an ATM where you do it yourself and the proper ELOC has got professionals selling it is kinder on the market and doesn't cost any more than an ATM. So that got raised from $20 million to $55 million -- $30 million to $55 million. point here is we chose an ELOC because that's an option to raise money, not a raise. But you can raise now and you can raise on demand. And that means we weren't forced to raise expensive money immediately. So right now, that's expensive. At our share price, I think equity is expensive. So what I want to do is have $10 million at the end of every quarter come hell or high water. And then -- but I don't want to pay for that right now other than a promise to work with these guys over time, which we certainly will. We like these guys are pretty good WhiteLion. We also have 3 other funding deals in progress. I talked about these last year. I've worked on everyone for the last like 6 weeks. We've got meetings and discussions in 3 other areas, and I will be announcing things over time. Second point, we had late SEC report. Our Q3 was late. And it turned out, everybody is going, oh my God, what's going on? The old SunPower had problems with their auditor blah, blah, blah. It turns out we're just slow and not okay, but we were slow and the actual change that happened after all of that was de minimis. It was that $1.1 million I talked about, which actually ensures future performance if you look at it that way. Our financial system is currently a mix of acquired systems. And now we have 2 brand-new acquired systems, and that slows us down. We're not nimble on finances the way I'm used to it. And if you want to ask about King, talk about Intel. They report early in the quarter with the reports filed, always ready to go. That's my goal, and that's what I'm demanding from our finance people. But we go back and forth with the auditor and those cycles are long, and that's what pumped us over on the late SEC report. There was no smoke indicating fire or anything like that. But I'm tired of it. And therefore, I've hired a guy named Cal Hoagland. He's a well-known Silicon Valley financial consultant. He's worked for 20 companies. He is -- he comes in, he's an auditor himself, and he helps you straighten up your finances by bringing in his knowledge of state-of-the-art systems. In the last 3 years, he's worked for 20 companies. And his longest tenure at any one of the company has been 7 months. So he comes in, helps you fix it and then goes on to his next company. And he's been with us for a few weeks right now. And he's going to help us speed up, upgrade our financial systems. Finally, I've been talking CFO now for 6 months. I've used my own network, which I could find a CFO. I'm right here in Silicon Valley right now. But I could use my network and talk to 3 CFOs and have one in 2 weeks. But I want somebody in Salt Lake, and that's been harder for me. And we're working on it, and we have a list of Salt Lake CFOs right now, and we're doing methodical interviews. So we have a formal search going on. And finally, I've talked about this before, disinformation from financial services. This quarter, I read in one place that we were being investigated by the SEC, not true. The old SunPower was being investigated by the SEC, et cetera, and I've asked them to stop and be careful and they're not listening. And the next time they hear from me, it will be a formal demand, not -- why don't you guys -- you guys claim to show the light for finances. Work with me because I tell you how to invest. Well, if you can't get the name of a company right, what credibility do you have? So that's going to be subject to my purse strings, my next initiative. Monolith. We announced this a while back. This is the name of a solar panel. I picked the name and I actually -- we have a thing called SunPower of the movies in Salt Lake, and I showed 2001 space Odyssey done in 1968, an amazing movie. And there's this mysterious monolith that. Black monolith. You never know what it is. And the movie never tells you. Roger Ebert when he reviewed the movie back when it came up, said it asked more questions than it answers. So we called our all-Black high-wattage panel, Monolith. This is our sales conference and me pulling a thing off to also spot there through the music from -- the music from the music from the movie. What's good about it is it's -- I call it a record 470 watts. Now if you ask for -- go on your phone and say, list 500-watt panels for me, you'll get a big list. So why is 470 record? Because the real name of the game here is that OSHA enforces a weight limit and they say a panel can't weigh more than 50 pounds. And if it does, then the work limits change. For example, you need 2 guys to lift the panel and install it, disaster for efficiency. So there is in the residential area. Now you go and that's 2 square meters for the panel area. If you go into utilities, the typical panel is 3 square meters, so it's 1.5x more power and many of them are over 500 watts. But they're lifted into place by robots in a construction site. It's not apples-to-apples. I want to give credit to our partner, REC, which is the largest non-Chinese panel company in the world solar panel and actually, they're the largest in the United States for residential solar panels. And this is -- I see why we use the monolith for a word. Otherwise, I'd have to talk about our Alpha Pure-RX 470-watt panel. which I don't want to do. But I want to give credit to these guys. They're good, and we're the only one that got that panel, by the way, that they offered us an exclusive. And we're working to make the site -- I mentioned this earlier, bifacial. -- that is instead of having black plastic on the back of the panel, glass on the front, if you put glass on the front and glass on the back, then light can come in from either side. And if you can get some reflected light like the light reflected from the earth I showed you earlier coming in the back, you can get more power. Now it's not going to blow you away, but it's perfectly reasonable depending upon the installation and the place to get the panel over 500 watts just by putting glass on the back, and that's our plan. Cobalt, -- we announced on January 16, we signed a letter of intent to acquire Cobalt Power Systems. And I wrote these words carefully, Silicon Valley's premier solar company. I was around when SunPower went public in 2002. I was Chairman of SunPower. And everybody knew about Cobalt. And they made a big deal about the Monolith panels. My guys back in Salt Lake said, yes, we got some more panels. That's great. We got a lot of different kinds of panels. John Bergh called me up and said, when can I get some? I said, when do you need them? He said, now. So they got put in his parking lot just last week. And one of our first projects is going to be 111 kilowatts. So they do bigger stuff. There's a building called the Fortinet building in Sunnyvale. Sunnyvale is 2 cities south of Palo Alto, dead center of Silicon Valley. And it's an iconic building. We're going to do -- that's going to be one of our first ones. When the ITC news came out, I wrote a press release called free at last. We're free of government meddling at last. We'll actually be a free market in solar at last, and that's going to play for us because we think free market. We don't think safe harbor, buy stuff and put it and let it rot in somewhere else. We don't work like that. We do what's best for a business. And I said we would take advantage of the free market because we know how to behave in free markets. And we have 2 goals, and I've already shown them to you, to rapidly grow our rep sales force as big as we can and to upgrade but not grow our 847-person workforce. And by the way, every one of them is an option holder. So that's a little piece of Silicon Valley that we brought to Salt Lake. Now I can introduce John Bergh. This is a picture. He has a house in Santa Cruz, and this is a picture of him, self-made man. His dad had a water well business and died and he got yanked out of college in his junior year to take the family business. He started working on solar thermal collectors. This is solar energy focused to heat water, worked his way into understanding PV. I knew about him at SunPower. He started the salesman and walked right through up to the Silicon Valley regional sales manager, arguably the most important sales position in sales other than maybe one of the biggest companies in Salt Lake. He went to work for Qcells a Korean manufacturer that sells a lot of panels in the U.S. and he was business development, selling at a high level using technology, biz dev, $336 million business. He used his own funds to buy Cobalt systems. Cobalt was well known. He bought it how long ago? 18 months ago. And it's been exploding right now. It was always a $25 million business. This year, they did $33 million. And he invented a cobalt concept and that I call sales system designers. One of our companies, Ambia, had a concept that made us more efficient. And their concept was a salesman who sells at a house needs to do the site visit. The site visit is the next thing. Normally, some salesman or seller sells the home, then you go in and do a site visit, and that's when you take pictures of all the wiring and everything and so you can create a plan for the house. And Ambia asked their sales force to do site visits, they eliminated a whole step in the process, shortened down the process and also obviously made it more efficient. These guys have gone one step further. They are salespeople that are called system designers, they can design things. So they can go into some Mogul's house in Silicon Valley and put together a big system, which requires more elaborate and detailed plans than a simple retrofit on a suburban house. He's also an athlete and a coach, youth sports. And he's going to run Cobalt, which we are going to run due to fact he runs it. I've been there. I was there for their company, Picnic. It's got great it's free to core, and they're far away, except not for me, so I can meddle as frequently as I want. John, you got some words for us?

I do. Excited to be here. I've been involved with SunPower since late 2006, where our customers had to wait 6 months to get panels. Well, now they don't have to wait 6 months, and they don't want anything that's safe harbored and waiting in a warehouse for 2 years. They want the newest technology and they want it deployed, and they want to deploy it on their house now. Cost of electricity is going up. But what Cobalt Power Systems really represents here, and it's a different type of acquisition for Mr. Rodgers and Mr. McCranie and his team is we represent a differentiated scalable revenue vector for SunPower. So we're uniquely positioned to integrate sales origination, operational execution and next-generation renewable energy technology deployment, all within a single platform. So together, our combined capabilities, as TJ has mentioned earlier, with the sales capability, I mean, right now, we've got a dozen system designers and they're top notch, they're top tier. But having access to 1,800 or over 1,800 sales reps, that plays right into our position. So together, we can address the full spectrum of demand of the market, spanning residential, new home construction, multifamily, light commercial, large-scale commercial, industrial applications, including up to large-scale data center power infrastructure. By operating Cobalt as a focused subsidiary within a publicly traded enterprise, SunPower unlocks a multiplier effect, unknown or unseen in the market. It's got efficient access to capital for a company like Cobalt. Its workforce scale and its institutional resources as a publicly traded company will allow us to scale, grow and meet the market demand for renewable energy power. It takes 5 to 7 years for a gas turbine to be installed in one of these units. They need power now. They need solar, they need wind. They need infrastructure and execution, which we can provide. Cobalt brings a proven track record of building, operating a profitable business unit, which is unique in solar. It's positioned to deliver meaningful, sustainable profitability while accelerating the deployment of industry-leading energy solutions to end users at scale. That's why when we first got our first shipment of Monolith last Friday, we have customers that have already oversold. We already oversold our first container. So we're getting our second container. They want the most power dense module. They want to use the best parts of the roof. Why? Because they have EVs. They have complex energy demands that are requiring more electricity. We're here to serve that function. But quality, quality is at the foundational standard and it always has been with SunPower. Quality, technology, that's the core of our platform. And now with TJ and his team, we have the disciplined execution at scale that will reestablish SunPower and establish the new SunPower in a league of its own over the coming months and years. So I couldn't be more excited.

Thank you. So you said out what should I do? And I said, just tell them what you're planning on doing and being enthusiastic, and he did that. Okay. I want to talk about our other acquisitions for a minute. We talked about Sunder, I told you before. Sunder sales company, they're 6 years old, accumulated a lot of sales. Eric Nielsen is their Co-Founder and President, and he's now the EVP of Sales and Marketing for the whole company and all the sales guys, except for a small group in new homes that sell to corporations that build projects work for him. And he recently created options so we can attract 1099s to stock options. And this is not unique to us, but it's relatively new and it's a formal program. And this is going to be part of our get as big a sales force as you can. As Cofounder is Max Britton, my favorite story about him is he was a tank commander, Abrams tank commander in Iraq. And then after he got out, he signed up and was -- another -- for another service. So he calls me, yes, sir, my new name, not T.J. anymore. And he's running the Sunder sales division. And that means Sunder is going to sell sales that is they're going to do contracts with customers, create final contracts that are, let me call them, almost bulletproof and sell those. And those things are worth $10,000, $12,000, $15,000. And they're going to keep that business going. So there's a higher velocity of sales going through our company than we're actually installing, meaning we can keep double loaded all of our internal capacity so that we don't have ups and downs with installers, for example, working half the time. And Devon Glassman is their first employee. He's a lawyer MBA, and he's the sales ops for the whole company. And this is -- I picked one slide to illustrate. This is us before. This is us before, and this is us after Sunder. I showed light coverage in the Sun states. Now we have heavy coverage in the Sun states, and we are in 45 states. That will make a difference. The next acquisition was Ambia. They're an $80 million company, and I got a couple more stars out of that. Conner Ruggio is their Co-Founder and CEO. He is an ultramarathon athlete, and he's running our SunPower Direct, which is all of SunPower except for new homes and sales. So SunPower has now got 3 parts, new homes, direct, which is all of the start-ups merged together and sales, which is the selling of orders, not the installing of product. And he's got an excellent COO. I'm an operating guy, right? So I know if these guys are good or not, and he's really good. And the same is Spencer Jensen. And he's running direct operations for the largest part of the company, and I'll show you what that means shortly. We just acquired them. So I threw in 2 slides that they [ blurred me ] with. This is the revenue growth, and it shows they actually spun out of SunPower and they did spun out of SunPower and then they came back to sort of put us back together. And then they had a very successful run up to $80 million level in 2025. And they're bringing back that expertise on the operating side that will make us better as well. They -- when we decided it would be in the Argonaut, we picked Blue Raven, a subsidiary of SunPower, and we shut down 2 other manufacturing groups. And now these guys have come in and they're running our manufacturing for direct, which is our biggest part because they took Blue Raven to the next level at their company, Ambia. Also one thing, it may not mean anything to you, but if you're in my business, it's the world, this is cycle time. So what this says is the 50th percentile median cycle time in days for various things. So from the project received to permit submitted, 7 days [ span ] they get out of the blocks. Project received installation complete put it in 41.6 days. And then we go through getting inspection, that's the city to say, okay, you're approved and PTO that has to get the utility to say, okay, you can hook it up. And all of these are exemplary numbers. And what's even better is even their ugliest numbers are pretty good. We won't be have stuff hanging out that didn't get shipped before the end of the quarter. And I'll just point out that this is 15 days faster than SunPower. And in turn, SunPower was faster by weeks than the other 2 areas that I shut down at the original merger. Okay. What are we trying to do? Zoom up a little bit. The goal is consistently profitable growth from our current $300 million level to $1 billion in 2028. If you do $1 billion divided by $300 million and take it to the [ $0.33 ] power, you get 50% per year. So that means we have to have inorganic growth as well as organic growth to do that. Here's an example from the latest quarter in Q4, we did $88 million profit. We now have 111 million shares fully diluted. Our price to sales ratio still sucks, just I told you that earlier, and our share price, when I was finishing the slide this morning and pushed the button on my phone, and that was a number I got. We have a plan. This is like the ninth revision of the second major plan. And here, we're growing to $250 million. That's a $1 billion run rate. We're going to spend some more stock, but not a lot more. We're pretty much acquired what we need to acquire. If our price to sales ratio gets to 1.72, I showed you that calculation earlier, that's 554. That's a 3x. And that's a bogey for, I'll say, just becoming confident [ Vision ]. So who will we be, who will care. SunPower will again be recognized as #1 in solar by introducing advanced technology hardware and software controlled solar. Now this -- if you have the best hardware, then you're going to get jobs you wouldn't get otherwise. But it's not dominant like the old SunPower had dominant panels that nobody could touch. The new world is going to be software-controlled solar system products, meaning everything is smart, everything has a compatible computer and language and everything is a compatible bus. And that doesn't mean WiFi or any bulls*** radio. It means wires and the cheapest, most important wire to control things that you care about is called CAN Bus. It's the wire that connects your brake pedal. You think it's actually connected your brakes. It's not wire that connects your brake pedal to the calipers on your brake and your steering and [ PAM ]. So we have ARM computers and CAN Bus that work with everything, meaning the panels themselves as the Enphase inverter, the battery, that's the Enphase battery, which has, by the way, the same inverter in it, and you can run it forward to charge the battery and backwards to discharge the battery and it talks to the other inverters in your panels. And then in the garage, you'll have an EV plug and that EV plug will have the same hardware in it. So your electric car talk to your battery and do what's right for you at that time and your battery can talk to your panels to do what's right and your battery knows when it's high and low price time because that's all downloaded from the cloud in your battery. So software control true systems, not hack together somebody's panels and somebody else's batteries. That's the future. So what are we doing about the future? I already told you about the panel. I told you about the bifacial panel. The next level of cell is going to be Perovskite-silicon. I'm on the board of 2 companies that are working on Perovskite-silicon, not ready yet. That's why I put a warning out here, talked a lot. Then there's Enphase inverters, the IQ8 is the first inverter in the world to allow sunlight backup. If you have no battery because you don't want to afford one now, when the sun rises, it will freeze your freezer for you and your freezer won't melt with a 3-day outage. Just by having a solar system with an inverter. It's not perfect, but it's way better than a normal solar system. Their IQ9 inverter uses gallium nitride and it starts providing high voltage for commercial applications. Gallium nitride transistors instead of silicon transistors. And then there's the electric vehicle, the zero carbon. There, you can tell your system in your cell phone, and this is deployed. I want my car to be charged only with solar electrons. But why would you do that? Because if you're green, you live in California, you bought an electric car. And by the way, I can almost throw a rock and get Tesla from where I am right now. You bought your electric car because you didn't want to burn oil. And then the problem is the electricity you put in your car burned oil or gas in order to make it. But if your electricity comes from the sun, it didn't burn anything for anybody, and you actually start can commute to work in a nice car without using any oil of any kind. And that -- maybe you're not jumping up and down about that, but I guarantee people here in California will jump up about it, and that has just become available like in the last quarter. And then EV battery for backup. The flip side is if I charge your car with green electrons, when will I be able to take those green electrons out of your car and have a massive battery, 10x bigger than a typical solar battery that I have for free, not always there, but I have for free. So I'm an R&D guy. So I don't talk about futures. These are [ now, no, no, no ]. And this is what is going to differentiate us in advanced technology hardware and software control solar system products. This is our plan, the long-range plan is a work in progress. But you can see here, we have 3 divisions, SunPower Direct, this green is the big one. I told you that earlier. That's all of SunPower, except for Sunder, who sells only contracts, including to inside contracts to our divisions and New Homes, which sells to corporations and also as a procurement management system that can manage other installations where we can get credit for everything by using partners, not internal people. So that is the new organization of SunPower. We just did a $309 million year. I haven't promised a word yet about 2026 because I want to find out what's going to happen this quarter. But it's a number looking like that. There's 2027, there's 2028. So this I call, by the way, G stands for God and the implication is if you don't make the plan, the [indiscernible] falls on you. And I'm the agent of the lord in this particular case to make sure that people believe in the plan. So right up to here, I've made promises to investors, which I consider to be sacred. I want to point out to you that from this point on, we're still modeling and you will see upgrades of this over time. In the plan, I just want to tell you that currently a 4% op inc. This is the quarter where we see 8.1% op inc. And this is a quarter where we see revenue of [ $250 million times $4 billion ]. So this is a plan which if executed already can move us into our mission statement, and we're sitting back here all the way back here. One more point, cash, again, telling you where we are. So we have cash in the bank. We have an ELOC to feed the cash in the bank. We have made a promise to investors that we're going to have minimum cash of $10 million. That means if we have to raise cash in the quarter, we'll raise it to $10 million in stock or if we have cash flow positive, cash will go above $10 million. So this is what our plan looks like. This is the quarter last quarter people freaked out about the low level of cash. We're back at the $10 million, and this is in Q4 of this year, our plan says we're going to be cash flow positive from operations and fund the thing. In order to keep this up, this is being supported, we have 2 raises $17 in this quarter and $29 million in this quarter. So that is our cash need to cash flow positive to [indiscernible] [ $46 million ]. I just out understand that, I think. Okay. Next quarter is going to be $84 million, it will be our second best ever quarter. We're going to be down "only 4%." We expect the industry to be at least 10% and maybe 15% or maybe even more down. So we expect to gain share. We're going to have operating profit, and we're going to have that for every quarter. That's our expectation. I didn't promise every quarter of 2026. I noticed I didn't put my lawyer [indiscernible] in that sense. Cash. We have a vehicle now to keep cash above $10 million and 3 more deals pending, which you'll be hearing about this quarter as we finalize it. That's it. Ready for questions.

We will now begin our Q&A session. [Operator Instructions]. Our first question today comes from the line of Derek Soderberg at Cantor Fitzgerald.

So T.J. You just touched on your vision for becoming an advanced technology solar company with software controlled systems. I guess from the investors' perspective, why is this the most sustainable, profitable model for resi solar and commercial? And what's sort of the most exciting part of the business as things have sort of come together on the sales front and the hardware front? What's the most exciting part of the model as the business sort of comes together here?

That's a really good question. I had an analyst, a really well-respected analyst the other day asked me, why do we need a national company? Why don't guys and pickup trucks in different cities in the United States, why can't they be solar? And the answer is if all solar is driving to your house and installing something, anything, aluminum siding, then you don't need a national company. But these systems I just talked about, think about the intelligence of a system required to know what the weather is, to know whether to use or store current, to know whether or not to store current or charge your car or both and to change that as the cloud goes across the sun. Guys can pickup trucks aren't going to do that. That's hard. And if you look, the basic thing is Enphase inverter, it looks like a VHS tapes that thick and this big. And the intelligence in that and the hundreds of man years of time in creating it mean that the other guys can't copy it. It goes back -- [ SunPower ] enjoyed an advantage with the most efficient solar panels in the world. And they had that for decades. And then it went away because [ China Inc. ]. We had an automatic line in 2002. [ China Inc. ] then started automatic lines later and they went through 8 generations of automatic lines, now they're caught up. So now a panel, which is itself an engineering work of our after 2 decades and a huge amount of investment has become something [ new ] is commodity. Cars are commodities, and they're amazing in their engineering anyway. So systems, we all know that investors like software companies. We all know -- give you one example. Hawaii has got different rules in California than Massachusetts for what you have to do in various solar events when you hook up just an ordinary solar system. What do you do about that? The answer is we download -- Enphase downloads a program into their system that not only puts you in Hawaii, but keeps up with the Hawaii legislature every time they change it and only other venues for it. So it's that kind of best of facility where you're writing software for given hardware. And then you have the best hardware, too. I'm not knocking that, that will differentiate. And that's why you need a national company because only a national company can be big enough to afford that -- to have partnerships that matter and afford that kind of effort.

T.J., who's going to be facilitating the software piece of the business? You had mentioned that a few times today. It feels like there's an opportunity there for you guys now that you guys have a full hardware offering, nationwide sales team. Can you upsell software? Can you be a part of the recurring piece of the business? Is there a software angle to this at all?

Sure. Do I have a software group first of all, I'm not a software guy. I have dozens of software guys, but I don't think I have a group to create the vision I just described. So right now, we can't make panels, but our partner, [ RAC ] is world-class at it. We can't do software systems. We certainly can program and install them and define them. We can't do that right now in our partners' Enphase. So partnerships at our level matter. And I think if you look at any industry, Boeing doesn't make jet engines. Somebody else Pratt & Whitney, for example, Rolls-Royce makes jet engines. It becomes very hard to do it and you partner. And that's what we're going to do, but we're going to be cognizant. We're cognizant today of what you have to do.

Got it. That's helpful. A couple of clarifying questions. The $84 million guidance with $4 million of uncertainty, is the way to interpret that as $80 million of high likelihood revenue with $4 million that's uncertain? Or is the $4 million potential upside to guidance?

So I feel like there's a little box being put here and then another little box being put here and then I'm starting to look up and there's a little lid going on there. I'll be honest with you, that number 84, I invented that number the other day, so I could be sure of it. And then I checked with the people and they said, we can be sure of it, and it's a little bit less than our actual internal plan, which will determine their bonus.

Got it. Got it. And then on operating expenses, they were up 41% sequentially on a GAAP basis. What was the reason for this growth? Was there kind of onetime stuff associated with you guys going out and selling some of that backlog? Can you help us understand maybe looking forward, where we should sort of expect the operating expense run rate to be kind of in Q1, Q2? Anything to help us kind of model that for '26?

Okay. Our operating expenses are not emphatically up as much as you just said. You said they're up on a "GAAP basis." Well, what the hell does that mean, okay? -- up from 35% to 49%. I showed you our OpEx less commission is flat, almost flat. It's 8.5% quarter-on-quarter. The difference is shown here. It's one GAAP -- non-GAAP thing I show. The OpEx has stock compensation built into it. So when you report OpEx, your people cost so much. And do you cost what you pay them plus their benefits? Or does it cost what you pay them plus their benefits plus the cost of their stock option is it best. I have a name called SunPower. I thought I bought it at a bankruptcy option in Delaware. It turns out once I bought it, then I got told you got to put it on your books and depreciate it. So I lose money every quarter because I have the name SunPower, et cetera. If you want to look at OpEx, look at that line right there. I also take out commission because commission -- commissions is like 30 -- best case I've ever seen is 26%, and I've seen as high as 36%. So if you want to look at OpEx, you subtract out commission, you subtract out intangibles like I have been describing, and that's the real OpEx, and that's under tight control. I review our headcount twice a week, and there is no slop there, no onetime events or anything. There's distortion in accounting mandated by law.

Got it. That's helpful. And my last question, T.J., the silver price has been going up. That's a key component in solar panels. There's some concern on potentially physical supply. Do you view that as a risk for the industry?

No, I think panels will be a washing panel. So I didn't buy any safe harbor panels, and we had a little squeaker there at the end of the year because everybody was scrambling to buy solar panels, so they could tack a couple of them up on houses here and there and then declare that they still got the subsidy. So they were running their company by buying excess inventory that they didn't need because of a government distortion in the market. That's what I mean by 3 markets. That's one example. So we didn't do that. So right now, everybody bought all those panels and they're sitting all over [indiscernible]. The fact is later in the year for my economy system, the lowest cost system, I plan on buying those panels at a steep discount to the guys that are listening to the depreciation clock in their warehouse as the panels are worth less and less over time. There are dozens, literally dozens of panel plants being built in the United States. As we speak, there's already a bunch of -- so to get by the tariffs, many of the Asian companies have -- they'll make their solar cells offshore. They'll import solar cells much lighter, much smaller air freight come in fast and then put them in panels, heavy, big machines in the United States. And there's way more of those plants being created right now. The panel business is a no-profit zone. You do not want to be involved with it. You want to be taking advantage of the excess of supply. And that is we're already there this quarter, there will be an excess of supply.

Our next question comes from Gus Richard from Northland.

I was just curious how you guys are doing converting Sunder sales into installs and sort of where that is and what you think the trajectory will look like?

Can you say that one more time? I'm not sure I got it.

So I was wondering how you're doing on converting the Sunder sales into installations and what that trajectory might look like?

You guys wanted...

We've got 2 positives going on with Sunder right now. First off is their fundamental 1099 force that they brought us in, in late September has moved up dramatically in total bookings. Secondly, T.J. was telling me about 5 weeks ago that we brought in about 350 Purolite guys. We brought them in at the very, very end of 2025, and we've been expanding in 2026. Those guys have already produced significant bookings in the first 4 weeks, we have over 100 strong bookings. We have another 350 that are in the front end of the booking channel. The way it looks for us right now with Sunder is that we're going to have a larger revenue than we currently are forecast as a result of the rapid expansion in 1099 sales force at Sunder. So we're very pleased with that part of residential retrofit. That's working very good for us.

So let me -- this is a controversial issue, which I talk about 5 days a week. And the reason Eric Nielsen is a better VP of Sales and T.J. Rodgers or his whoever your points is that Eric understands these guys the 1099s and I don't. And I'm a bit of a do what's right for the company, do it with disciplined kind of guy. But in order to keep the 1099s, Eric gives them a work environment that they appreciate. And I supported that with stock, but there's other things. And one of the things they get is they get to poke whatever button they want for which EPC that is installer gets a job, okay? Right now, they can poke 26 buttons. SunPower Direct us 27 button, SunPower Direct us, SunPower New Homes us and then 25 EPCs that are literally our competitors. And I can tell you right now -- and then how do they do it? It's real simple. They keep poking the button until they see the biggest number, then they poke that one, and they're not forced to give the job to mom. So right now, the results are good, and I agree with Dan, and I agree with the upside. Right now, I'll tell you that the contribution of Sunder directly to SunPower is single-digit percent, mid-single-digit percent and it's on its way to 35% over the year. How do we do it? Why -- first of all, why don't they do it? The answer is if T.J. sends out and marathon says, do this, then they go away. So T.J. doesn't do that, and he lets Eric run the show. Why don't they do it? Well, you saw that map. That map went from a strike to the United States. Well, guess what? They now sell in places we can't install. We never had installation there. So we've got to build up some install over time and start taking jobs in states away from the local guys that they give the job to. Flip side is also tree. We have installers in some states where they can't supply all of the jobs. And they're now working on building up the sales force in states where they have jobs. So we're like building a roof and a floor that don't overlap right now and will overlap. And that will raise a percent over time. So the good news is our results don't depend on yet huge fall-through. Where is it going at the end of the year? 50% will go either to direct or to new homes. So that's the ever supply of orders that I'm talking about that will keep those organizations level loaded all year long.

And finally, just the Purolite acquisition of 1099s moved us, expanded us into states where even Sunder wasn't particularly strong after the acquisition. An example of that is the Northeast and in particular, the Oregon territory. Those are target rich for TPOs. We were fair encouraged there. And now with the Purolite sales guys, we are very, very strong. So I'm feeling very good about retro residential sales and retro residential bookings for 2026.

You talked -- I talked about the original SunPower sales force declining partly due to bankruptcy. It's also partly due to the fact that the original SunPower sales force sold a lot in the Midwest and in the Midwest guys are like me, they write a check, they get it, they own it and they get all the savings of the power from day 1, and they're paid back a lot earlier. That's not true in California, third party ownerships and finance company comes then, press the deal, makes money on the money. So their money comes in and they've got to make higher percentage. But my pitch for a loan or cash is here's the calculation. If you pay this much cash, utility bill will go down next quarter like that and you start adding up utility bills over time within 4.7 years, 5.3 years, whatever, the sum of your savings on utilities will be more than what you pay, okay? and that's the pitch that T.J. would buy. Pitch in California is more California. Oh, you can have solar. Sure. We'll put it on your house. We'll do it for free, no money out of your pocket. And then by the way, we'll pay your first few payments for you. And then all you do is pay payments. And by the way, there's a calculation showing your payment with solar will be less than you would have paid anyway. So there'll be no money out of pocket to begin with, and you'll be ahead every month after that. If you like some solar. And that's a switch to TPO, third-party ownership or a financing company or another solar company like [ Sunder ] owns the system and has an intent to make money on money. That -- and that was what was wrong, not wrong. That's what is a difficult change. It sounds like, okay, sell this one, not that one. The pitches are quite similar. You're knocking on the same doors. It turns out it's not a trivial change. And [ SunPower ] sales force had issues with that. And these new sales forces we acquired are TPO-friendly sales forces. They were already there. Those companies became big and famous because they saw the TPO thing before we did, and they were already there. Now we're working together.

Okay. Got it. And then just on Cobalt, I just want to make sure I'm clear. It sounded like you do utility scale and industrial size installations, you mentioned data centers. And I'm just wondering sort of how do I think about the markets you address ready industrial, utility scale and kind of how big a system kind of sold at this point...

Go ahead.

Sure. Well, we've been limited because we are a small private company, but we have the expertise and we have the execution history of installing multiple megawatts. We've installed 12 megawatts in Port of Stockton. We've installed -- we're installing right now, just finished up a 1.4-megawatt project in Santa Clara University. Those 3 phases at a superstructure carport. We're just finishing up the Los Altos Golf and Country Club, that's got ground mount. It's got a carport structure, and it's also got on the main club house. So we have the expertise to install systems with complicated voltage requirements, step up, step down, switch gears, modifications, and we do all that in-house. So we have the in-house expertise and the technical expertise to do it. We just haven't had the market capitalization to grow that across the country. And now with a publicly traded company behind us, we can achieve excellence and execution at scale.

And for me, we're in Silicon Valley right now, and I'm a Silicon Valley guy. And one of the things I missed a lot with the sort of standard solar mindset is that it's becoming commoditized. Like I said, it could be aluminum side and all of a sudden, engineering matters again, scale matters again. The plans you have to -- guess what? The plans I submit in Austin, Texas to put 5 kilowatts on your house are pro forma. As a matter of fact, many of the planning commissions actually now have online and you can even do 1-day planning. In Palo Alto, California, if you want to put in a megawatt of solar, you're dealing with the city of Palo Alto, a formidable task, I'll just tell you. And that means you have a capability that is beyond what you had before and you can study it and understand it, marketing. I just said it. I just watched their marketing. And I'm going to start sending groups. I've got young marketing guys in Salt Lake. I'm going to start sending groups to 3 or 4 of them through the marketing guy. It turns out during the summer, he used to do movies down in Southern California at UFC to make money. And he knows how to do movies. He knows how to do ads and his group is the size of one guy. We're going to learn from that. And they're going to learn from us. We're going to have a lot more panels flowing. So when we negotiate the price of the panels, we're going to be looking like a volume company, not like a company that is local and modest in volume. The answer is I don't know the synergies yet, but I study and watch things and I'm not jerking around either side, and I'll optimize as I see what's the best way to go.

Gus left the line. We do have a couple of quick ones from the online audience. I'll start off with one quick one for me, asking about our conference schedule for 1Q, just so everyone is aware. We will be at the Jefferies Power, Utilities and Clean Energy Conference in March, the first week of March in New York City. March 11 in New York City, we will be attending the Cantor Technology and Industrials Conference. And then on March 12, we will be involved in the virtual Canaccord's Sustainability Summit. In addition, we'll be doing some NDRs and fireside chat. So please reach out if you have any questions about scheduling. One quick question from the line. You've discussed New Homes progress, which will be material to growth in 2027 and forward. Can you discuss the progress on rebuilding that pipeline today?

Okay. So -- [ for many guests ] it is [indiscernible] so we have the VP of that division here. This is the 3-year plan quarterly plan I showed you and New Homes is here in blue. So if you look at New Homes, they are going [indiscernible] problems right now because it usually [indiscernible] to be minimum in Q1 and then build back up so and that is because when [indiscernible] SunPower will bankrupt, all of the corporations [indiscernible] quarter. They all canceled their contracts and that was it and we started rebuilding. So what's your plan, got to get in, right?

So today we are set up for 2026 to regain share going from about $45 million in our bookings, which converts at about 97% rate to growing to about $110 million in 2026. This gets us back to the [ 20, 22.3 ] average rate of about $125 million a year. And in addition to that, we are also partnering with additional dealers who are engaged [indiscernible] working with other companies. So we are accelerating in New Homes. We are also accelerating in multifamily, which Cobalt is going to add to that portfolio, including our C&I space. So the New Homes business is feeling very confident about what we're going to deliver in '26, establishing a very clear fillet, another layer on top of our total SunPower revenue in a proper fashion.

Can I add just a little bit of color to that? So as [indiscernible] said, our plan is over $110 million in bookings this year, up from $40-plus million last year in 2025. Remember, there's a 5- to 6-quarter lag between bookings and revenue in New Homes. So the numbers you see us booking right now are going to be reflected in very strong revenue growth in 2027. On top of that, our pipeline, our opportunity pipeline has grown nicely as we continue to expand our sales organization in New Homes, and we're feeling more and more comfortable as the quarters go on of our ability to meet and beat that $110 million. Finally, you may want to ask yourself, what was your all-time best numbers in New Homes back when the old SunPower was around. And I believe [indiscernible] in the neighborhood of $50 million to $60 million quarters. So if you want to think about what the upper end of what you can accomplish once you rebuild your new home organization, think in terms of $50 million to $60 million quarters as opposed to the $10 million quarters we did this year and the $25 million quarters we're currently on track for $30 million quarters we're on track for in 2027.

As long as you got the camera on the front, Will, what is the theory behind your new company in the finance world?

Well, so the opportunities to bring margin across the value chain include being able to install very rapidly, installing the right equipment and then financing it in the proper way. So with the primary source of financing today is going to be power purchase agreements and leases. And this is because the income tax credit -- the incentive tax credits for solar are still available for going solar in that method for residential. So we're bringing all of these things together with partnerships with companies like LightReach is a major partner of ours on the finance side, Enphase and the other partnerships that T.J. has already mentioned and then incorporating rapid installation like with what we're working on with same-day Solar is going to make the process smooth and simple for the customer, even though on the back end, we're managing all these complex partnerships.

Sorry about that. Is it...

That is it. That ends our call for today.

Thank you for tuning in. We appreciate your support.

Good morning. My name is Sioban Hickie, VP of IR, and I would like to welcome everyone to SunPower's Third Quarter Earnings Call. I will review a few housekeeping items before turning the call over to our CEO, Dr. T.J. Rodgers. To begin, this call is being recorded, and a replay will be available on our company's Investor Relations website within the Events section. Please note today's presentation may contain projections and other forward-looking statements. These statements are subject to known and unknown risks and uncertainties that may cause actual results to differ from those expressed or implied in our statements. Also on today's call, we may discuss certain non-GAAP financial measures. A reconciliation of any differences between these non-GAAP financial measures and the most directly comparable GAAP financial measures are available within our press release. Lastly, we will hold a question-and-answer session after the end of formal remarks today. For those watching via the webcast, you may submit a written question at any time via the submission box located at the right-hand side of your screen. I will now turn the call over to T.J. Rodgers, SunPower's Chairman and CEO.

Thank you, Sioban. We've got a quarterly report here, third quarter. We've got our logo, the Helios, the airplane that set a record still standing in 2001 of taking off under the solar power -- SunPower solar cells, which by the way, took light through the bottom of the wings, which are clear plastic from both sides, bifacial and hasn't been matched by any airplane, fighter plane, SR-71. I'm tracking down. I can't afford this right now, but I should be able to buy one of these pretty cheap since they're now obsolete. And I want to -- I'd say I want to put it in the lobby, except this 247-foot wingspan. So I got to figure out what to do with it. I tracked down an engineer, it's got one on a hangar. He actually was part of it. He gave me this picture. This is the thing actually flying in about 80,000 feet, clearly, above the atmosphere, clearly 99.2% of the atmosphere out there. Okay. You've got here, Dan. Can we get -- you got here the administrative officers of SunPower, all of us. Dan just joined me. I have announced that before, he's had a storied career in marketing and sales. He helped me -- even helped me. He ramrodded the Sunder acquisition we're going to talk about today. So he and I are the only 2 people in SunPower above the rank of Executive Vice President or equivalent. Sounds weird, but the way this business works, that's what we can afford. I kind of like it because I can micromanage and not have to justify it because there's no possibility of doing anything else. This is our report that I sent out last night and our new logo, I created a commemorative postage stamp for it. Now I'm going to go into it. These are the details of the P&L. A simple P&L that it's easy to read, but there's a lot in there, and I'll go slowly over the lines to explain it. First of all, this is how we run the company. And that's -- most companies are that way. We grew in the prior quarter, bad quarter. ITC hit the quarter a little bit. And there are 2 reasons for that. The ITC is not gotten any worse, and people are accommodating it and actually reacting to it. And we did the Sunder acquisition and there were like 4, 5 days of sub revenue, not consequential, but in there. And those 2 things are what caused the number to go up. I'll talk about the next quarter in a while. We had fall through to gross margin, good gross margin. I want to warn you that our gross margin isn't really 48%. We're doing some deals that we bought from SunPower, and they're on the books at a favorable price and they add about 4 to 5 points on the gross margin. Also, the merger of Sunder will take away another few points. So for those of you tracking the company, please don't put that in there because then I'll have to live up to it, put that in there for gross margin going forward is still a good number. I -- we have 2 forms of OpEx here. FASB demands that OpEx include sales costs, commissions. I do an OpEx less commission so I can get that out of there and look at the company because as I've already said, keeping costs on are -- is extremely important. So then you'd look at last quarter, $17 million, in this quarter, $23 million and say, well, $6 million, staying lean isn't exactly an accomplishment. I'll point out that our costs this quarter actually flat to a little bit down, and there are some reserves in here that have added up to the quarter. We had a good quarter, and we are lean and we are generating good gross profit. So what I asked them to do is clean the house this quarter. So we had some accounts receivable that were a year old or more, we got rid of them. One of our finance companies went bankrupt. We put reserves on the questionable line items for that. So this is a very clean number, and we still ended up even with that extra $5 million, $6 million in there with a operating income of $3.1 million. So that was, I think, a good accomplishment. We're now up to 4.5% of revenue. Our target is 10%. I think that's totally achievable. And I'll explain how we go forward. As I said, it's a record. Bad news is we've got -- we've had $10 million or $11 million in cash, and I've actually enjoyed -- I never had that in my life as chip guy as you know. And I always had several hundred million dollars in the bank and that cash flow stuff somebody else worried about in finance. Now I got to worry about it. And I found that I'm quite comfortable with $10 million or $11 million. That's the way we run for a year now. This quarter, we had some large payments on our convertible debentures. And I ran down -- we ran down to $4 million. So I'm out raising money right now. I'll leave it there. I'm out raising money right now. Okay. To summarize, revenue increased to $70 million from $67.5 million, the low bottom point of the quarter. We made $3.12 million in profit, up from $2.42 million in the prior quarter, and our cash balance I just discussed. Okay. This is a graph of operating income. And by operating income, I mean, the full definition of operating income in the GAAP sense, but there are -- let me tell you what the corrections are. If you look at our operating income, then there's a correction on GAAP. So this is stock compensation and amortization of intangibles -- amortization or depreciation and intangibles of charge of $5.4 million, meaning the GAAP profit is minus $2.3 million. Let me tell you what's in there. All but $1.3 million in stock compensation charges. Nobody expenses stock compensation. The price of stock is dilution. We have 83.11 million shares -- yes, 83.11 million, and we give our employee stock options, and we think that's better for shareholders, Silicon Valley style. The other $1.3 million, this is an important thing, and I'd like you to take note and make sure you keep this in your models. We are now depreciating the name SunPower, came across to us in the acquisition of assets. We also are depreciating our software, which we built and paid for called Albatross. It's our main operating system. And we're depreciating that because in both cases, the name and the software, we had to buy it back, get it appraised, pay money for the appraisal and now we're depreciating it. So these charges, and there's a footnote in there what we -- we play a straight on GAAP. We believe in GAAP, except for these foolish charges. And we've been conservative, as I said. All right. Having said that, this is a graph of operating income minus those charges, and that's how we report and that's how we run the company. It shows since we acquired. So the acquisition came here of the assets. We lost money. That was the division that we took from SunPower that we thought could work, didn't work, as soon as we got rid of it. We started making money. We made money ever since. We came out of the bankruptcy, the SunPower bankruptcy with about $320 million in revenue. We got hammered about like everybody else. This is no special charts, but it's disappointing to make this a very profitable number for us and then have it go down, but we still made profit at that number because we have a very, I'll explain later, aggressive campaign to keep costs down. And then this quarter, we recovered, as I said, the $70 million. And even with the reserves we took, we had $3.12 million in op inc. Okay. That takes us up to Q3 '25. The future is here. We just acquired Sunder. There's -- in the first quarter, there won't be a lot of revenue from Sunder because their revenue comes from selling solar. The revenue is the solar sale and their profit is minus their sales cost, their sales costs are COGS for sales company. And therefore, all the deals they've done up to the time we acquired them, got sold to somebody else. Now we have to start to fill the pipe from scratch. So this quarter, we're going to put -- start putting and we already have started putting jobs. We're on plan. We got a plan for them. They're already integrated in that way. So we'll -- there's a pop in revenue. That's nontrivial. And it gets us back to where we were. And we're hoping for a record, worst case, it will be above 80. Then I had debates all day yesterday with the executive staff on what to say about Q1. I said, if I don't tell them about Q1, they will ask me about Q1, I need to get my off-the-cuff answer, which is almost always worse than an answer you thought about. And it is so uncertain. I won't know until the end of this quarter, what we shipped and what backlog we'll have left to go into the next quarter. I won't know that. Our bookings rate right now is fine. Our bookings rate just doubled because of Sunder, literally. But that's delayed. So we -- I have good FP&A and we gained, meaning did simulations of what happens if this is bad, that's bad. And our worst simulation said, we're going to make at least $2 million in Q1. And I mean at least our goal is to beat that. But I wanted to tell you, and then, of course, I believe Q1, which is always the weak quarter, the winter quarter and half our states are snow on the roofs. The winter quarter will be gone and we'll move into the spring quarter, which is a much better quarter and then the fall quarter, which is always a big quarter. So that's the best I can do. I didn't do any revenue. But I know for the minimum revenue I have simulated that we're going to make $2 million. And I think we're going to do okay on revenue. I've shown this many times, the way we put together the company, starting with 3,499 people from 3 companies was the art plan. I didn't inherit a huge number of people and go through the screaming and wailing of layoffs, we hired what we could afford. And at that time, it was 1,225, and we've been upping the bar or lowering the bar, if you will, since that time. And that leads to this graph, which I've shown before. This is our head count history. So 3,499 was back in July. When we acquired the company, the assets, we went to 1,341. And then when we started, post-merger day 1, so this is our very first quarter here as a company, we had it down to 1,280. We got to our plan -- well, that was all I was going to hire. So I could guarantee it, we get to the plan. I told HR, how many -- how much hiring we could do. And then that led to a healthy debate on who should we hire, why should we hire them? Are they good enough? Should we leave the spot open and hire as we get into it and get an access to better people? And we did all of the above. So there's a target dropping to 980 and 820. You can see, our system, it's called the REC auction. I explained it before. It's a process I developed back at Cypress. It works by forcing management every week to debate how many people we have, who left, do you really need to replace them? And if you replace them, is the best hire for the company, the person that left or somebody else? And that means you have no RECs, your VPs can hire all the time. And the VP of HR walks into the executive staff meeting and says, we lost 6 people -- now, this is in dollars, of course, but I can explain it, in head count easier. So you say we lost 6 people last week out of 1,000, we can hire 6 people. And then the VPs together perhaps have 12 people they want to hire. Then we debate among us. And this gets rid of the President versus all the VPs, all the VPs arguing why they need to be bigger. This has then the guy who wants to hire against the President and all the other VPs and the dynamic is better, and it typically goes into a merit-based discussion when the culture is there. Okay. Having said all that, without of lot of coup, without any warning, the government required thing, we've managed our head count down. And by the way, that last number, 829 includes 19 current employees from Sunder. So think about that. 19 people left. They were declared to be less important, and we decided the new 19 people would be those from Sunder. And of course, that's transformed the company. I'll explain that later. So this is a great system. Looking at the number 829, then the next question is, so who do you hire and where? And I've shown this graph before. And I'm going to go over it again, it's a graph of head count. So here, we see our head count of 829. That's the number of the bridges to the last slide. Now this is a breakout. We look at 5 running weeks to see if we are growing or shrinking. And then we put -- there's a target 820, and we're almost there now, including the Sunder folks. And you can see here, we've already started talking about new number. And I'm not sure I'm going to force that number completely or quickly because as I look at the company, we're at the right size right now, and I can see a few spots. We're at threat there and we need more bodies. So we're at talking about upgrading, getting more efficient, in particular, quality in the solar industry is not there, not like chips. And we're working on quality programs. Hence, if you look at my quality group, it's big because it needs to be. All right. The major point here is, the red is revenue per employee per year. So Blue Raven, which is our sales and fulfillment organization internal, the old SunPower, if you will, is $293,000 per year per employee. I start griping at $300,000, I get happy at $350,000. So these guys have to either grow or shrink their head count and here you can see the head count requirement for them, and they've been working on getting there. New Homes is the other part of SunPower, separate division, doing a separate job, putting solar on new homes in projects, even including helping design the project. They have higher revenue per employee, and they also have higher profit. Now here's why Sunder is a good deal for shareholders. $4.2 million per employee per year. There are many software companies that don't have that. And why is that? In the solar industry, based on custom and reasonable custom, the sales forces don't work for the company, they're contractors. So you pay big bucks, you pay a commission, to the sales force. And it's typically 30%, even a little bit higher. And then you get your job, you own the job and then you make your money with the revenue from the thing, minus 30% you pay to the sales company, you make your money underneath that. So this company, if you look at the structure, what came in back when there is our first quarter -- first day, it's 20 people, 20 smart W-2 employees, running a sales force of almost 1,000. So they specialize in managing sales. We don't. We specialize in everything from managing sales all the way down through O&M, keeping your customers happy over the years when their system breaks and they can call a 1-800 number and get somebody that cares. Okay. So that -- if you want to ask one reason economically anyway, there's more. Why is it a good deal? Now if I take the weighted average of these, this number has jumped over 400,000 for the first time for the company, and I'll show you that in a minute. I want to make one more point. These are efficiency numbers from our consultants. They're for 200 high-tech companies, and they give the median and top quartile being cheapest, lowest headcount, lowest cost for overhead. So it says, for example, IT full-time equivalent per $1 billion of revenue should be $77 million and the best companies are at $62 million. And you have spend per FTE, you have percentage of revenue and you have matrices -- you have matrix for each of the important parameters. That's how we do it. Based on that, you now can see the deployment of the company. And because I don't have a fetish about it. I just go over it twice a week in detail with a full meeting. So I already talked to you that quality is 18, and I don't cut them below that. They we need, if anything, more quality people. We need to develop a quality culture in the company. We need to develop quality awareness. We need to do training. Finance. We had targeted 22. We're down to 12. We're now subcontracting some of the accounting functions that don't really need a full expense American employee, and we're actually doing it as a fee per month. I have an IT guy from Cypress, my old company. He runs really lean. And this function is -- I'm happy with it. Dan and I have 21 -- 19 people in admin that do all of admin, we're the top admin guys. I got 6 lawyers when -- legal department with 6 employees, that's Drew Wanker that we introduced last time. We are on a third lawyer, he's really good, and I'm happy. My old lawyer at Cypress who's Drew, and I just conflated names. We're going to compromise on that, and we're asking Nick Wanker to change his name to Drew Wanker. Anyway, when I came in, I had 57 lawyers in the company. All gone, 100%. Customer care, this is important. We've got 62 people. We're about at target. This is when you call in when something's wrong, the company proves that it cares. And we have a good star rating. But in terms of doing what we need to do, it's not as much as we need to do, and I'm asking them to do more. Okay. So I've been able to tell you about our efficiency, the bodies, the fact that our overhead is lean, that is carefully managed. And we have a process for it. And that process has gotten us profit numbers you can brag about. Okay. We talk about revenue per employee. This is our graph going back to the first quarter after the merger. We had nice trajectory, then we got hammered. We didn't lose employees as fast as we lost revenue because we lost like 15% of revenue in one quarter. Sunder brought in revenue and that improved it. In this quarter, we're in the middle of the quarter. So I can already tell you, well, I just showed you my twice-a-week estimate is $425,000. So in the letter, I promised $400,000. So I've got margin, and we're going to beat that. And that's the number -- if you drive that number in the solar business, you will make money. I made that point in the letter. Consequently, our only effective cost control method is to control employee expenses. First step, reducing head count to the right number of employees is done. From now on, growing revenue will be our earnings driver, hence, our current focus on acquisitions. Okay. This report went up at 4 a.m. California time this morning, and I took the snapshot literally as I got in the car to come here to talk to you. So what does the snapshot say? Over a long period of time, they're unsure and we bounce between -- if you forget the anomalies, they bounce between $1.50 and $2. So this is the confined space we're in. This looks to be a breakout. What's the volume today?

37.7 million.

37 million shares traded today. So in our attempt to raise money that we're -- I'm in right now, I'm going to try to get some of the big guys to have enough confidence to get into us and trade toward institutional shareholders from retail shareholders, which is where we've been. And they supported us. So I'm not griping. Okay. Share price. This is a graph of market cap on revenue. Market capitalization of revenue, the price to sales ratio so I can have a short term for it. So it's nothing but revenue in a quarter times 4 times price-to-sales divided by share count equals share price. This says that our peer group, and this is a reasonable peer group, and it's got good and bad companies, and it trades at about 2. And this shows that the industry is together going down. We're dragging along here. And it is what it is. We have given shareholders our employee shares and our executives have a significant number of shares. So we will make up as individuals when our company makes up. That's Silicon Valley all the way. Our headquarters is in Utah, less common for that to happen there, less broad belief in it, but it's coming around. So if you take even this last low quarter we had, not the 80, but 70x4. If you assume we can get to a PS ratio of 1, up from -- up to here, still below our peers. And our official 83.11 million shares, that's $3.37. And that's not a pipe dream, an unreachable goal or anything like that. That's a calculation of something as soon as we have big investors that believe in us will happen. So why hasn't it happened? There's one. There's always been a concern for viability. It's reasonable. I can just tell you that I'm 77, I don't need to do this economically. And I didn't start playing this game to lose. So I'll just make that statement. And the second thing, which is also important, maybe even more important, is we have disinformation from retail market data companies. I gave a talk at Canaccord in Boston. And their format was to have separate rooms and they invest in the -- the company team would go in there and set up a PowerPoint. And about the 10 to 12 investors would show up and they would operate on cycles, 45-minute cycles. And I was sitting behind the guy, and I was given this pitch, and he wanted to find out more about us, obviously. I watched him type through a bankrupt company, has been delisted, then the bot questions, the brain-dead bot questions, is SunPower a good buy? No, SunPower is not a good buy since they just filed for bankruptcy. Of course, that was 1.25 years ago. So we've got companies that pretend to give good advice to investors and they don't. And we're starting to bitch about it and the bitching will get stronger. We've had a breakthrough. We called CNET. They're a company that says, printing the truth is important. It's one of their core values. I put their quote -- that quote in the quarterly report. And we said, its hurting us. We're a new company. We're doing well. We feel good about ourselves, and we're having trouble getting people to know that. And they said, you're right, we understand. And the pushback we've been getting some to, "oh, man, this is all over, it's difficult to fix, yada, yada, yada. " They fixed it in 2 weeks. Now I have a data point to show to our other companies and start getting us recognized for what we do, good or bad, not the history of the old company. This guy is Eric Nielsen. He's our new EVP of Sales. You can just look at him. You can see he is a sales guy. You can see he's got enthusiasm. He's big, like 6'2. He's athletic, and he's got a lot of life about him. And he was the President of Sunder, and he's now our EVP of Sales. I'm going to talk about the Sunder thing briefly because I've reported on it before, but I want to remind you what it did for us. And then I want Dan to talk about Sunder. The way it works is Eric reports to Dan. And Dan and I are the top 2 guys in the company. And since Dan is a sales expert, and I'm not, we're doing better with him there. That's why I asked him -- he's on the board and I asked him to come in. SunPower closed the strategic acquisition of Sunder Energy. That makes us the #5 residential solar company. Their sales force was complementarily distributed relative to ours. So we went from 22 to 45 states. Our dealers -- so the number of 1099 contractors in our dealer sales force went up from 888 to 1,744. I track that. There's another graph I decided not to show, but that was last week's graph. And what's interesting is I asked Dan to tell me what our bookings rate was doing? And he got a little frown, doubling, as a matter of fact, a little more than doubling. And then, of course, when I'm promising double revenue, so I've got this sentence I got to deal with. So I put in a footnote for you. Remember, a 2x increase in bookings equates to 1.3x increase in revenue. That is the bookings only produce 30% of the revenue and then the EPC function, taking the booking and turning it into a system, creates the other 70% of revenue that's how the industry works. And right now, they're filling our pipeline in new bookings because their old bookings got sold to somebody else before they came in. So I just -- and what I'm worried about is you guys look at that, write some big numbers. And then I have to explain why I missed forecast in the future. So I'm putting that warning. Tell us about Sunder, Dan.

So there's 2 things I'd like you to take away from this. First off is that Sunder knows what they're doing in this space. They are the acknowledged experts in how to hire, motivate, drive, retain and fire, when necessary, a 1099 sales force. This shows up fast inside of SunPower in the first 3.5 weeks the Sunder team has captured the imagination, frankly, the heart of our existing sales force. They are now totally behind Sunder. They're modifying their behavior. They're modifying their sales strategies to be more like Sunder. So the first thing I'd like you to remember is that Sunder knows what they're doing. They are absolute pros of this, and they are not only contributing to bookings organically from the previous Sunder organization, they are causing an increase in bookings in our SunPower organization. The second thing is that Sunder is strong where we were weak. We were in about 22 states. We're now in 45 states. The important thing to remember there is that there was very little overlap between where Sunder was and where SunPower was. In other words, Sunder was strong in California, Texas, Florida, we were not. So what you're seeing now is no negative synergies in bookings. And as T.J. pointed out before, our booking numbers are extremely strong in Q1. The first 3 weeks were at 120% of plan discounting to Sunder. So it's even more when you add the Sunder bookings on top of that. So we're proud of the bookings. We're proud of the way that the SunPower sales organization is aligning with and joining with the Sunder team.

Okay. So a couple more points. Because of that feeling, Sunder -- we said Sunder, you maintain your own practices. Normally, the acquiring company says, this is how we do business. And when you acquire a company that does business in a given area better than you, you take it. So we said, maintain your own practice. In particular, they are known in Solar Valley, Salt Lake. They have state-of-the-art sales force in recruiting and training, getting good people. And they have a fast training, so they can take a raw recruit and put them on the street as effective. That word is getting around in the industry. Since they came in, we've had 232 inquiries about joining SunPower's Sunder division. I'm glad I left it that way and we've already signed up 195. So my experience that the dealers scatter when something changes in the main company, we're not having that problem. The other thing we did is we merged already faster than our plan into a single 1,744-member sales force led by Eric. Dan talked about that. Then I had to socialize it inside because I did -- I've done a lot of acquisitions in semiconductors. So you bring in a little chip company, they got some hot new chip that does something. You've got the fab and the sales force and the infrastructure in the public, so they want to come in, then you bring them in and then synergy comes from -- you've got 2 of these, 2 of those, 2 of those, and you pick the best. And that means there's layoffs and promotions necessary in order to get the synergy, the benefit that comes from the merger. So we had -- I tracked down our VP of Sales. His name is Evan Dwyer. This is SunPower's VP of Sales, our sales force. And I threw out some broad areas to talk about. In other words, I didn't ask him specific questions. That was now a day before yesterday. And he said, "Now we have the people, systems and management to achieve the growth we need. Bingo." Because if you don't have your sales force behind you in the spirit, it doesn't matter how tough a manager you are, it is not going to happen. So that was my closing line in the quarterly report. Big guy over here is Eric. Unfortunately, preparing this thing, I didn't get to see the factory name until midnight last night. This is my caves, that's California. Eric. Here's Evan Dwyer, and he's -- we invited them to the party. Okay. Outlook. $83 million in revenue, which is an estimated record, $3.5 million profit, an estimated record. These are both estimates. Subsequent events, other stuff that happened that matters, so should matter to shareholders. We signed a joint development agreement with REC. There will be a press release coming out on it. We're working. We signed the agreement, and we have a formal agreement. We're now working out on who does what, when. They are the largest seller of panels in the United States. They're currently overbooked tremendously. Nobody wants Chinese panels. They are risky. They make stuff as good as the best Chinese companies. They're out of Singapore. And we've got safe harbor stuff going on. So they're booked. And the question is, what can we do now to get going? We're working on that. And when we have an answer to that question, I'll come back and do a press release. And by the way, they are our panel partner. Our inverter partner is Enphase. There is a lot of details behind that I won't go into today, unless somebody asked a question. But Enphase sales batteries as well. And we just received a $200,000 battery opportunity through Enphase. So our company, which has not done a good job in batteries, primarily because our company equals Blue Raven and New Homes, neither of which is fertile territory for new batteries. Sunder has a 50% attach rate with batteries. We just got this big opportunity so we can start flexing our muscle. I qualified 2 quarters ago, 100 technicians who got more pay and status pump and last to get laid off status in the company when they went -- did formal training on how to install batteries and do it quickly and efficiently. So we've got them waiting. We are doing about 10% attach rate. So think about 100 batteries a quarter or something like that. But so they're keeping in shape is my point. Now all of a sudden, we're going to have a battery opportunity. Going forward, I want to show a mission statement. I created this last month. Consistently profitable growth from $300 million in 2025, we did $303 million to $1 billion in 2028. So 3 years to $1 billion is 50% per year, very close. It requires internal growth and acquisition. And then this was an estimate I put out. I left the estimate in there. The bottom line, the quarter we just reported, share count I just reported and our goal for share price, I gave you the equivalent calculation for today. So in Q3 '28, we'll grow to $250 million a quarter. That is $100 million per quarter less than all SunPower once. So it's doable. The acquisitions I want, and I'm currently targeting 6 companies. And now I want more Eric -- Eric Nielsen's. I want the economics, obviously. I want companies that are already efficient, so I don't have to pare down the company. And then I want companies to bring technology to us. And there are -- those Venn diagrams do overlap, and there are a few companies in that category. Even with 100 -- even saying we're going to pay 60 million shares to pay for those guys, our revenue per share is going to be $7.14 and at a PS ratio of 1, that means $7.14 share price and PS ratio of 1.6, which is currently Sun-run. Therefore, achievable, if we get recognized as being a contender in their category, $11. So this is the pitch I made to investors. Second part of it, SunPower will again be recognized as #1 in solar by introducing the advanced technology hardware and software controller system products. So the advanced technology hardware, we're working with Enphase. They just introduced a gallium nitride version of their inverter. And people don't understand how important that is. I'm going to try to help them by writing a paper on that, and software control system products. Everybody thinks of solar as something you kind of patch together or you buy your panels here and your inverter from Tesla or Enphase, which is architectural change. And they don't understand you're buying an electronic system, and that electronic system has to do its function. And that means the parts have to talk to each other and control each other. I'll give you one factoid on Enphase. First of all, if you go look at their app, punch on your cell phone, you'll see a satellite picture of your house, and you'll see the power of every one of your panels displayed from sunrise till the time you look at it. Secondly, they have a new app, which is activated, it tells your system and it's AI-driven. It tells your system, this is a California thing, I want to charge my electric car with only solar energy. When you think about it, that is a technological breakthrough, a pyramid. I mean stacking the rock pyramid proportion. It means you can drive your car with sunlight. Your car doesn't burn in the oil because of any gas because it's electric and it doesn't use any electricity that burnt oil to be created. So it allows and it gives a picture for a significant population in California, how we can drive around all we want in the future without burning oil. Now some of you are in the oil business, and I have nothing against oil, will say, okay, that's fine. But there's a bunch of people in California who care about it. That is an application on an Enphase-based system. Undoable, if you patch in anything else because you disrupt, you cut the cables, you change the computer, you change the language, you change the communication bus which, by the way, is the automotive CAN bus, cheap highly reliable. The thing that connects your steering wheel and your brakes to the activators in your car. So anyway, SunPower will again be recognized as #1 in solar by introducing advanced technology hardware. I'm hoping to do that with REC and software-controlled solar system products that already exists with Enphase, and we're going to -- that is going to be a stream of products that aren't about hardware. Okay. We are ready for questions.

[Operator Instructions]. Our first question today comes from Derek Soderberg from Cantor Fitzgerald.

T.J., you just mentioned the $200,000 battery opportunity with Enphase. I'm imagining those are part of a solar install as well, but curious if those are Enphase batteries? And then how should we sort of quantify that opportunity for SunPower?

Well, first of all, let me say, as one of only 2 people above the Vice President level. I asked about our AVL, and we kind of had one, but we kind of didn't use it. So I took over the AVL and there's only one battery in it, it's called Enphase. And the reason is exactly what I said, the Enphase battery is the only battery compatible with future electronic systems. So it came through Enphase. I am not at liberty right now to say what it is. It's not new stuff, dig it out. It is an opportunity for an existing group, and I'll leave it there.

Got it. Got it. So -- and then just on the sort of 2028 goal for the company to kind of reach a $1 billion run rate in revenue. Just to clarify, I'm wondering, it sounds like the base for gross margin is 38%. Is that including the acquisition of Sunder, that's sort of the range of gross margin we should expect? And then, T.J., I don't know if you can comment on this, but how do you envision earnings per share kind of when you guys are doing $1 billion where can we sort of get, I think in the past, you've said kind of a 10% profit margin. Is that still the case at $1 billion sort of revenue scale?

So it's a multiple faceted question giving me many opportunities to commit future suicide. First of all, what I put on the slide, and we'll put this pitch on the website so you can get what's in it, it's 38%. That's where I'm at now. Okay, 38% is about where gross margin is about where if you take an order and run it through today's SunPower, we're lean enough to get 38% gross margin and with a little bit more volume, get 10% profit on the operating income. So that's our goal. Now then the question is what is our reported gross margin at the aggregate level? So for a while, we're going to -- we have -- you can think of as 2 companies and taking a mix. Right now, Sunder is a sales company. And their margins, gross margins, I want to refine the numbers, but right now are in the 16% range. So I'll gladly take a profitable -- and they have almost an overhead with only 20 people. They're profitable on the bottom line. I'll gladly take a sales order and report it as a SunPower sales order. But I'll only get for the potential value of a system, 30% of the sales order for the sales money. And for this first month, they're still selling to the companies they've always sold to. Right now, we won't get any revenue because we can't get into our line for a quarter until they fill up our line. Secondly, we cannot double the size of our installed -- installation. We got 150 guys out there, can't go to 300, train them, the whole thing. So there will be a ramp during the year. I pointed that out, and it was a confusing, I admit, press release where we go from sales-only revenue, gross margin to sales plus EPC from us. So it looks like an internal order at 0 cost. That's a 38%, 36% if you want to be a little bit conservative. And eventually, and it eventually means down the path will be about -- to pick a number for the future, you might want to do a 50-50 mix of those 2 to calculate the numbers. And in the future -- I'm a big fan of divisions. And in the future, we'll give you some number. And I've been telling you, I've been indicating without giving numbers, the profitability -- revenue and profitability of Blue Raven, our internal sales force and fulfillment organization, and New Homes, our internal New Homes organization, which sells to corporations, 300 homes at a time. And then we have a new one. We'll have a sales organization. We're still in the process of working out how we will report that. One way is to leave the massive sales organization, they simply can sell to us. They sell to Blue Raven. Blue Raven would install. Blue Raven makes 70% of the revenue based on installation, doesn't matter if they bought it from the guy next store or an outside dealer. The sales force can remain pure sales force that's created all of the goodness that they have in that organization for running sales. That's yet to come. And the whole reason I was ambiguous, all I can say is I'm remodeling the c*** out of this thing, and we understand it pretty well now. And all I can tell you is we're going to make money in the first quarter. And I gave you that number. And you got to wait until this quarter, 90 days from now, and I'll give you more data. In EPS, is not there yet. I can calculate it for you. We have gaps as you got to calculate, so we calculate it, it's negative few pennies per share. But until I get the thing profitable and start worrying about EPS. I'm dealing with operating income. That's my currency of exchange with our shareholders.

Our next question comes from the web. Based on 2Q, SunPower's breakeven revenue has proven defensible in the mid-$60 million revenue range. Post acquisition, do you anticipate any changes to that breakeven revenue level?

No. And that's the beauty when you think about it, you're struggling for orders. The ITC is screwing everything down, and the guy walks in and says, "I got a group of 20 people. And if you hire us, put us on and give us stock options, we will double your order rate. That's a no-brainer." So no, we -- the only thing we're going to have to spend more to get bigger is the fulfillment group is going to have to get bigger. And I want them to get bigger. And I want to get them big enough that they -- but I want to have excess orders all the time. So we're selling the orders we can't service, and we are executing on the orders we can service.

Our next question comes from Gus Richard -- excuse me, from Northland Capital. He asks about battery contract duration. How many years is the battery contract for, if you've got the numbers right, it would be $1 billion revenue for Enphase?

Yes. 50% of what I said is $1 million. I'm hoping for more than that. The opportunity is there, $200,000. 50% is $100,000. When you think battery, think $10,000. There's 5 kilowatt-hour batteries, 10 kilowatt-hour batteries, the average out there is 8.5 kilowatt hours. Batteries now are attractive. Battery-only sales are attractive. The way that happens is, take San Diego Gas & Electric. I mean I like the gripe about PG&E. But they're equally it's bad. So when we went to NEM 3, Net Electricity Metering (sic) [ Net Energy Metering ] revenue 3 or REV3, they stopped paying their customers who had excess power on their roofs and put it back into the grid at the grid rate that they were charging. And they started paying $0.03 a kilowatt hour. Okay. So that means you're losing your power. That means your solar system, new solar system wouldn't have an ROI. Now the other interesting thing is that after 4:00 in the afternoon, they start charging at a high price. I once knew it, but think about $0.40 a kilowatt hour. So they'll give you $0.03 and take $0.40. All right. So you put a battery in it's called the grid-tied battery. It's the cheapest, the most cost-efficient battery. It sucks up power till noon, saves it and powers your house starting at 4:00. So you pay $0.03 a kilowatt hour that you could have gotten for it and you give back $0.40 a kilowatt hour. And however big your battery is you get that every day. So it's $0.40 a kilowatt hour times 5-kilowatt hour battery, even small battery, you're looking at $2 a day times 365 days, et cetera. So this thing pays itself quickly. Batteries are going to become more important that comes from the fundamental problem. The sun only shines on average in North America 5 hours a day. So if you want to use solar power, which actually getting kilowatts off the system is the cheapest possible power. And what the opponents of solar say is that it's really more expensive than that because you have to have 2 power plans, one for the day and one for the night. And when you have one for the day, yes, you can have a nominal gain on it, but then you got to turn on the big expensive one and burn natural gas at night. And that's the argument. Well, it just says we need more storage. So right now, storage and utility space is going through the roof. The best storage is if everybody at their load has storage. Then I don't have to have some giant battery going into transformers and then putting out power in the neighborhoods. The guy out there can, in effect, reduce his load. If you think about it, you can reduce his load. And that's why batteries are happening now, and it's a big deal. Now what I just said, I actually saw in Oshkosh, and I was trying to sell a battery at the dining room table, kitchen table. We don't have dining rooms in Wisconsin, only kitchens. So I gave them the thing and the guy looked at me, kind of frowned and said, Wisconsin Power and Electric, their cost is $0.12 a kilowatt hour and they only go off for a couple of hours every year. Why do I need a battery? So that's one of the reasons we haven't sold as many batteries as I would like, as we're deployed in those states, Midwest. Blue Raven, now all of a sudden, this doubles our sales force in all the states where my argument about saving power for night-time are absolutely valid and are going to get better as time goes on.

The next question we have, while appreciating the opportunity in the market to acquire attractive assets currently, can you speak to how you think about the balance between acquisitions and bolstering the balance sheet and the potential need to raise capital?

Okay. I try to make these things look simple, but I think carefully about them. So -- again, unlike my training, which came from Collins and Porras' Stanford one, the idea of culture and mission statements being better came out, I wrote this mission statement because right now, as a culture, we're not ready to write one, consistently profitable growth. I didn't say grow from $300 million to $1 billion. I say consistently profitable growth. So I plan on putting something on the bottom line every quarter. I don't think you can run a company. The idea of running the whole and I'll burn a lot of money and then it will get better when things -- when the volume goes up. That's not what we're doing. So I'm looking for acquisitions that are effectively priced, I'll use that word. We paid -- I forget -- we paid -- our multiple is $0.45. So I'm paying more than $0.45 times sales for any company. I'm diluting our price-to-sales ratio. So that's kind of like my budget. Then I look around and I find the team where kind of like some of the guys and hope they can become our new executives, some of our new executives and where there's complementary, they're in different states. And so I'm shopping for things that fit in. During my time at Cypress, we acquired, as I said, 26 companies. And my observation was that when mergers or acquisitions didn't work is when there was a culture problem. So I'm real big on culture. And the math has also got to work out, and I have a budget. Now as our stock goes up, and I'm able to pay more, right? So I'm able to pay more and maintain my budget. So that will help there, too. In terms of -- then there's the last thing is work. What if I gave you $1 billion worth of orders today? The answer is you'd have $0.9 billion at the end of this quarter left because I can't do $1 billion. The same is true for mergers. In Cypress, we did about one a year. And there is a flurry of activity in a given quarter. Then the second quarter was hard work. The third quarter, they were kind of part of us, and then we moved on. That process is spec. And Badri Kothandaraman who worked directly for me, the President of Enphase, has acquired 5 companies. He's taken that spec to the next level, and he's -- I borrowed that spec from him. So I believe we're capable of acquiring something like 2 companies a year, maybe only 1 company in the first year and 3 quarters later. So I won't dilute price-to-sales ratio. I will pay stock, if I can. I will raise money with the stock as soon as the price allows me to raise money without being highly dilutive. You guys -- I'll give you a fact to it. I mean current salary at SunPower is 0 because I don't want to screw up our profit because I own 30 million shares. I've been working at the company for years, collecting shares from private rounds, stuff like that. So I make money only, literally only. I only charge airplane fare to them, when the stock goes up, that's it. I'm a shareholder and I'm a pure shareholder, and that's what I'm planning on doing.

Thank you. I do want to point out that we are at time, but we do have a few more questions in the queue.

I'm here. We're in the Middle East by the way. They have a little studio they lend to us for free. So we're here. Now, go ahead.

Okay. We have a follow-up question from Gus Richard from Northland Capital. How many of the Sunder sales are being converted into sales at this point into EPC?

The question is how many of Sunder orders are being converted into EPC revenue? Okay, that I will report this quarter. The answer is very little because it's going to take me one quarter to fill the pipeline. What our plan is, in the fourth quarter of this year, if we manage to capture half of the orders from Sunder, and that's pretty aggressive, we will then get $20 million per quarter of sales revenue from Sunder just for their orders, and $20 more million of install revenue from internal. And right now, this quarter, we get only the sales part of it.

Our next question is, as energy demand accelerates due to data center growth, energy pricing will continue to increase, making solar more attractive. How does the energy price trajectory play into your long-term vision for growth?

I reviewed a startup the other day. And I'm amazed at how brilliant we are as a country. We keep kicking ourself, but we are a brilliant company -- country. There's a thing called Helms in Nevada, Sierra Nevada. PG&E once screwed my company by shutting down my power, ruining millions of dollars' worth of wafers. So I had them on the run, and they asked me what would take to get me off their butt. And my first answer was, I want to go to Diablo Canyon Nuclear Plant, and I want to tour on a Saturday morning with a real engineer. No problem. So I drove down a nice little ride on Highway 1. At the end of the tour, which was amazing, I went to the room, and I looked out in the hills. And there are 3 wires going out of Diablo Canyon. We're talking wires that are this big around going out of Diablo, 2 gigawatts of Diablo Canyon and then up over post and disappearing. What's that? That's our connection to Helms. What's Helms? Helms is where we store energy. You can't turn a nuclear plant on and off. You might have -- the ramp-up period is a month to get it up, then it runs 24/7. What's that? Best to restore energy at night and then they release the energy at day. So I call back the PG&E guy and I said, "Well, I'm feeling better, but I need one more thing. Okay, what? And I said, I got to go to Helms. I want to see Helms." Two lakes Sierra Nevada, 4,000 feet apart. In the middle, think about a dam, the hydro part of a dam except it's buried inside of a granite mountain, literally a mile inside of granite mountain. And at night through a tunnel, down comes the water, turns the turbines, and this is a big plant and then goes down to the lower lake, so the lakes go 6-feet change. Then at night, they turn the turbines around and they turn into pumps and they pump water from the bottom like back up again. That's how they -- it's the world's biggest battery. Getting to the question, I just reviewed a business plan for a guy who -- and by the way, that's known technology and it's not that expensive. It's cheaper than any storage technology, cheaper by a factor of 2 than the cheapest battery for a car, and cheaper by a factor of 10 than batteries you put in your house. A store -- a pump storage, it's called. So what's your plan? Well, we go next to an AI center. We have these machines, the machines that bore, make 50-foot diameter tunnels and they go at the rate of, I think, like 30 feet a day. We said, well, we dig on down to over 4,000 feet down, that's doable, then we dig a maze of tunnels down there. So we don't have to have a lake and we don't have to be in the mountains. And we have a little artificial lake on top and then we've got those tunnels and we pump water from the tunnels back up and back down. And we're right there, so we don't have to have a transmission line that's expensive when we feed the AI center. All of a sudden, you realize these problems will be solved. The reason we're worried that they can't be solved is the politicians, both sides talk about doom and gloom and it's known psychologically, people worry more about problems than they worry about upside. But these problems are going to be solved and we're going to have our data center. And by the way, I'll make one more prediction. I don't believe we're going to need all the power. Somebody took the worst power from the earliest generation. It's like, what if you built all the computers today out of vacuum tubes. Well, hell, we need more power than the United States generates today to run all that number of vacuum tubes. Well, don't run vacuum tubes and invent transistors. So I think the power required to do AI is going to go down. And I've argued that way at a philosophical level, and the AI guys that I know, tell me why it can't be. It will be. And it will be ideas I talked about generating the power, but there are a bunch of start-ups I've looked at where they're planning on making AI functionality draw less power for a given result.

Our last question. In the last earnings call, T.J. mentioned that he may still be -- that he may not still be serving as CEO in a year's time. Is this still expected? And can anything be shared about preparations for this transition or the succession planning process?

Okay. First of all, I didn't set my target to be, to run another company. I got drafted. My analogy that the lawyers pitched about was it's like you go out in Christmas, and there's a baby in a basket on your front doorstep and it's raining. You take the baby in, all right? So I got drafted. Now I'm having fun, and I'm frustrated sometimes when I'm having fun. And I'm in no hurry to leave. I have been trying in earnest to replace myself. But I'm not going to have a goal and say I'm going to walk out of there. I've had 3 actual, nobody knows about them, attempts. And it's a tough job because the financial requirements are every bit of stuff is semiconductors. But the environment, the solar environment, the culture is way different. It's more like semiconductors were in the '80s. So these -- I won't use the word millennial, but these young guys come in and then look at the thing and then I say, well, I'd like you to meet Dan, we are the administrative executive staff of the corporation. You may be able to hire one guy in the future because that's all you can afford. I think it's a great challenge to go to the next level and learning how to run a company, really, really lean. So I'm 0 for 3. I have another target I've started talking to. But it's a tough job, and you got to find the right guy. And if I find the wrong guy, then okay, great, I retire. Guy comes in, doesn't like the job. Thing blows up and okay, I blame him. I don't want that. I want this thing to succeed.

Thank you. And as one of your rank and file, I will say the joy is in the journey, and we appreciate you guys all being here and teaching us and guiding us. With that, this is -- that's the end of our questions. This concludes our Q&A session, and I will turn it back over to Dr. Rodgers for closing remarks.

I've been loquacious for the whole thing. So I don't have a lot more to say. I think that mission, which, by the way, it looks simple because -- classic Winston Churchill quote. He has a letter that somebody owns now. And he started out, "Please pardon the long letter. I didn't have the time to write a short one." So this, can you put on the mission statement? I don't put it on here because it kind of undermines the meaning of mission statement of the solidity That's REV25 and those used to be paragraphs. And that little middle section got put into some advertisement to get in the last round of investment where we raised the money to acquire Sunder. That's it. It's real. I mean it. We're going to do it. And every week, I feel the ship turning more toward being part of that vision. Dan, you got drafted too, right? I call -- you've been working with me for a long time and I need some help here because I got sales problems and I need your help.

Yes, since '93. It's a long time. I think there's 2 things I'd like to leave with on this. First off, the acquisition of this particular company Sunder is positively transformational for our bookings, positively. And you're going to be seeing top line numbers from us as a result of this booking transformation throughout 2026 and 2027. We're not even talking about possible other upsides that can occur above and beyond the Sunder acquisition, including tailwinds from the industry. Right now, there's a lot of consternation about the removal of the ITC tax credit and the effect that has on what we call cash or loan bookings, and that will be an impact. It's not going to materially impact SunPower because of the Sunder acquisition. If in the future, energy prices increase or some other factor occurs from a market point of view, it causes the loan part of the program to increase, we'll enjoy that as well. So I think this is a pivotal point for the company. We've made a positive move in bookings that's going to allow us to have strong revenue growth, independent of outside activity. And as outside external activity starts to improve in the 2026- and 2027-time frame, you'll see even stronger growth for us.

Thank you. We appreciate listening to my long-winded dissertation.