U.S.-based residential solar firm Sunnova’s net loss widened to $100.8 million during the second quarter (Q2) of 2023, a year-over-year increase of 628.6% compared to a net loss of $13.8 million.

The rise in net loss was attributed to an increase in interest expense, amounting to $32.4 million, and higher general and administrative expenses. However, there was a partial offset due to a $13 million increase in interest income resulting from a larger customer loan portfolio.

Revenue surged to $166.4 million, an increase of $19.4 million YoY.

The revenue growth was attributed to a rise in the number of solar energy systems in operation and an increase in service revenue, driven by a strategic emphasis on direct sales of supplementary services to existing customers.

Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) was $28.1 million, declining from $39.7 million, a YoY decrease of 29.2%.

This was due to a lower gross margin contribution from inventory sales to dealers and other parties, along with increased spending related to higher-than-expected growth.

1H 2023

For the first half of the year (1H) of 2023, Sunnova reported a net loss of $211.1 million, compared to a net loss of $35.9 million during the same period in 2022.

The increase in net loss was attributed to a rise in interest expense of  $119 million. However, there was a partial offset due to a $26.8 million increase in interest income resulting from a larger customer loan portfolio.

The company’s revenue amounted to $328.1 million, representing an increase of $115.3 million compared to the same period in 2022, signifying a 54.2% YoY surge.

Adjusted EBITDA accounted for $42.6 million, declining from $52.2 million in the same period of 2022, a YoY decrease of 18.3%.

In Q2 2023, the company added over 39,000 new customers, taking the total to 348,600 as of June 30, 2023.

Sunnova’s net loss widened to $110.3 million in the first quarter of the financial year 2023 compared to the loss of $22 million YoY.

The company posted a net loss of $61.9 million for the fourth quarter of 2022 compared to $31.2 million YoY.