– Qua te ly Reve ue of $163.4 millio –
– I come f om Ope atio s of $18.7 millio –
– Net I come of $12.1 millio –
– Adjusted EBITDA1 of $31.6 millio –
– Backlog a d Awa ded O de s of $801.4 millio –
– P ovides Thi d Qua te a d Reaffi ms Full-yea Outlook –
PORTLAND, Te ., Aug. 04, 2026 (GLOBE NEWSWIRE) — Shoals Tech ologies G oup, I c. (“Shoals” o the “Compa y”) (Nasdaq: SHLS), a global leade i elect ical i f ast uctu e solutio s fo the e e gy t a sitio ma ket, today a ou ced esults fo its seco d qua te e ded Ju e 30, 2026.
“The yea is p og essi g well, with seco d qua te eve ue a d Adjusted EBITDA withi ou expected a ge. The ma ket emai s esilie t as evide ced by ou eco d backlog a d awa ded o de s of $801.4 millio . We have completed the move i to ou ew facility a d a e steadily maki g p og ess towa ds imp ovi g p oductivity,” said B a do Moss, CEO of Shoals.
“At Shoals, we’ve stayed focused o st e gthe i g ou co e busi ess while st ategically expa di g i to high-g owth ma kets that a e shapi g the futu e of e e gy, a d that st ategy is yieldi g esults. With ou ma ket positio , ma ufactu i g footp i t, a d i ovatio pipeli e, we believe we’ e exceptio ally well positio ed fo what lies ahead a d we’ e excited by the oppo tu ities i f o t of us,” said M . Moss.
________________________ 1No -GAAP fi a cial measu es efe e ced i this elease a e used by ma ageme t to assist i vesto s a d a alysts i compa i g ou pe fo ma ce ac oss epo ti g pe iods o a co siste t basis by excludi g items that we do ot believe a e i dicative of ou co e ope ati g pe fo ma ce. Reco ciliatio s of o -GAAP ope ati g measu es to the most di ectly compa able GAAP fi a cial measu es a e i cluded i the o -GAAP eco ciliatio i this elease. No -GAAP measu es should ot be used as a substitute fo the closest compa able GAAP measu es.
G oss p ofit was $49.5 millio , compa ed to $41.2 millio i the p io -yea pe iod. G oss p ofit as a pe ce tage of eve ue was 30.3% compa ed to 37.2% i the p io -yea pe iod. G oss p ofit as a pe ce tage of eve ue decli ed yea ove yea p ima ily due to ope atio al i efficie cies associated with the amp-up a d t a sitio i to the ew ma ufactu i g facility a d p oduct mix withi the qua te , alo g with costs i cu ed to add ess p oduct quality matte s, i cludi g ewo k a d co ective actio s, as well as mate ial- elated i efficie cies a d i c eme tal lease accou ti g amo tizatio .
Ge e al a d admi ist ative expe ses we e $28.5 millio , compa ed to $23.1 millio du i g the same pe iod i the p io yea . The i c ease i ge e al a d admi ist ative expe ses was the esult of a $4.4 millio i c ease i cash a d sha e-based i ce tive compe satio expe se due to i c eased headcou t i compa iso to the p io -yea pe iod.
I come f om ope atio s was $18.7 millio , compa ed to $16.0 millio du i g the p io -yea pe iod.
Net i come was $12.1 millio compa ed to $13.9 millio du i g the p io -yea pe iod. Ea i gs pe sha e was $0.07 i the cu e t pe iod a d $0.08 i the p io -yea pe iod.
Adjusted EBITDA1 was $31.6 millio , compa ed to $24.7 millio i the p io -yea pe iod.
Adjusted Net I come1 was $19.7 millio compa ed to $17.1 millio du i g the p io -yea pe iod. Adjusted Diluted Ea i gs Pe Sha e1 was $0.12 compa ed to $0.10 i the p io -yea pe iod.
Backlog ep ese ts sig ed pu chase o de s o co t actual mi imum pu chase commitme ts with take-o -pay p ovisio s a d awa ded o de s a e o de s we a e i the p ocess of docume ti g with a co t act but fo which a co t act has ot yet bee sig ed.
- Reve ue i the a ge of $150 millio to $170 millio ; a d
- Adjusted EBITDA1 i the a ge of $32 millio to $37 millio .
- Reve ue i the a ge of $600 millio to $640 millio ;
- Adjusted EBITDA1 i the a ge of $118 millio to $132 millio ;
- Cash flow f om ope atio s i the a ge of $65 millio to $85 millio ;
- Capital expe ditu es i the a ge of $20 millio to $30 millio ; a d
- I te est expe se i the a ge of $8 millio to $12 millio .
A eco ciliatio of Adjusted EBITDA1 guida ce, which is a fo wa d-looki g measu e that is a o -GAAP measu e, to the most closely compa able GAAP measu e is ot p ovided because we a e u able to p ovide such eco ciliatio without u easo able effo t. The i ability to p ovide a qua titative eco ciliatio is due to the u ce tai ty a d i he e t difficulty i p edicti g the occu e ce, the fi a cial impact a d the pe iods i which the compo e ts of the applicable GAAP measu es a d o -GAAP adjustme ts may be ecog ized. The GAAP measu e may i clude the impact of such items as o -cash sha e-based compe satio , amo tizatio of i ta gible assets a d the tax effect of such items, i additio to othe items we have histo ically excluded f om Adjusted EBITDA a d Adjusted Net I come. We expect to co ti ue to exclude these items i futu e disclosu es of these o -GAAP measu es a d may also exclude othe simila items that may a ise i the futu e.
I te ested i vesto s a d othe pa ties ca liste to a webcast of the live co fe e ce call by loggi g o to the I vesto Relatio s sectio of the Compa y’s website at https://i vesto s.shoals.com.
This epo t co tai s fo wa d-looki g stateme ts that a e based o ou ma ageme t’s beliefs a d assumptio s a d o i fo matio cu e tly available to ou ma ageme t. Fo wa d-looki g stateme ts i clude i fo matio co ce i g ou possible o assumed futu e esults of ope atio s; expectatio s ega di g the utility-scale sola ma ket; p oject delays; egulato y e vi o me t, i cludi g cha ges o pote tial cha ges to such e vi o me t; the effects of st ategic p ici g actio s, volume discou ts a d custome mix i ou key ma kets; pipeli e a d o de s; busi ess st ategies, pla s a d expectatio s, i cludi g sales a d ma keti g goals; tech ology developme ts; fi a ci g a d i vestme t pla s; wa a ty a d liability acc uals a d estimates of loss o gai s; estimates of pote tial loss elated to the wi e i sulatio sh i kback matte discussed i ou public fili gs; litigatio st ategy a d expected be efits o esults f om the cu e t i tellectual p ope ty a d wi e i sulatio sh i kback litigatio ; pote tial g owth oppo tu ities, i cludi g oppo tu ities associated with ou e t y i to ew ma kets; a d p oductio a d capacity at ou pla ts. Fo wa d-looki g stateme ts i clude stateme ts that a e ot histo ical facts a d ca be ide tified by te ms such as “a ticipate,” “believe,” “could,” “estimate,” “expect,” “i te d,” “may,” “pla ,” “pote tial,” “p edict,” “p oject,” “seek,” “should,” “will,” “would” o simila exp essio s a d the egatives of those te ms.
Fo wa d-looki g stateme ts i volve k ow a d u k ow isks, u ce tai ties a d othe facto s that may cause ou actual esults, pe fo ma ce o achieveme ts to be mate ially diffe e t f om a y futu e esults, pe fo ma ce o achieveme ts exp essed o implied by the fo wa d-looki g stateme ts.
Some of the key facto s a d sce a ios that could cause actual esults to diffe f om ou expectatio s i clude, amo g othe s, if dema d fo sola e e gy p ojects dimi ishes, we may ot be able to g ow, a d ou fi a cial esults, busi ess a d p ospects could be mate ially adve sely impacted; if we fail to accu ately estimate the pote tial losses elated to the wi e i sulatio sh i kback matte , o fail to ecove the costs a d expe ses i cu ed by us f om the supplie , a d ou p ofit ma gi s, fi a cial esults, busi ess a d p ospects could be mate ially adve sely impacted; the i te uptio of the flow of aw mate ials f om i te atio al ve do s has dis upted ou supply chai , i cludi g as a esult of the impositio of additio al duties, ta iffs, a d othe cha ges o impo ts a d expo ts; the impositio of t ade est ictio s, impo t ta iffs, a ti-dumpi g, a d cou te vaili g duties; we have modified, a d i the futu e may modify, ou busi ess st ategy to aba do li es of busi ess o impleme t ew li es of busi ess, a d modifyi g ou busi ess st ategy could have a adve se effect o ou busi ess a d fi a cial esults; amou ts i cluded i ou backlog a d awa ded o de s may ot esult i actual eve ue o t a slate i to p ofits; defects o pe fo ma ce p oblems i ou p oducts o thei pa ts, whethe due to ma ufactu i g, i stallatio , o use, i cludi g those elated to the wi e i sulatio sh i kback matte , have a high co seque ce of failu e a d ca lead to equipme t a d systems failu e, physical i ju y o death, a d i the past have, a d i the futu e could, esult i loss of custome s, eputatio al damage a d dec eased eve ue, a d mate ially adve sely impact ou busi ess, fi a cial co ditio a d esults of ope atio s; we have expe ie ced, a d may expe ie ce i the futu e, delays, dis uptio s, quality co t ol, o eputatio al p oblems i ou ma ufactu i g ope atio s i pa t due to ou ve do co ce t atio ; if we fail to etai ou key pe so el a d att act additio al qualified pe so el, ou busi ess st ategy a d p ospects could suffe ; ou p oducts a e p ima ily ma ufactu ed a d shipped f om ou p oductio facilities i Te essee, a d a y damage o dis uptio at these facilities may ha m ou busi ess; we may face difficulties i teg ati g a d optimizi g ou co solidated Te essee-based ma ufactu i g a d dist ibutio ope atio s, a d may ot fully ealize the a ticipated be efits the eof; safety issues may subject us to pe alties, egatively impact custome elatio ships, esult i highe ope ati g costs, a d egatively impact employee mo ale a d tu ove ; the ma ket fo ou p oducts is competitive, a d we face i c eased competitio as ew a d existi g competito s i t oduce EBOS system solutio s a d compo e ts, which could egatively affect ou esults of ope atio s a d ma ket sha e; mac oeco omic co ditio s, i cludi g high i flatio , high i te est ates, a d geopolitical i stability, impact ou busi ess a d fi a cial esults; we a e subject to isks associated with the pate t i f i geme t complai ts that we filed with the U.S. I te atio al T ade Commissio a d Dist ict Cou ts; if we fail to, o i cu sig ifica t costs i o de to obtai , mai tai , p otect, defe d, o e fo ce ou i tellectual p ope ty po tfolio a d othe p op ieta y ights, i cludi g the pate ts we a e asse ti g i o goi g pate t i f i geme t litigatio ; acquisitio s, joi t ve tu es, a d/o i vestme ts a d the failu e to i teg ate acqui ed busi esses could dis upt ou busi ess a d egatively impact eve ue, esults of ope atio s a d cash flow; a loss of o e o mo e of ou sig ifica t custome s, thei i ability to pe fo m u de thei co t acts, o thei default i payme t could ha m ou busi ess, fi a cial co ditio , esults of ope atio s a d p ospects; a sig ifica t d op i the p ice of elect icity may ha m ou busi ess; the u autho ized access to ou i fo matio tech ology systems o the disclosu e of pe so al o se sitive data o co fide tial i fo matio , whethe th ough a b each of ou compute system o othe wise, could seve ely dis upt ou busi ess; failu e of ou i fo matio tech ology systems, i cludi g those ma aged by thi d pa ties, whethe i te tio al o i adve te t, could lead to delays i ou busi ess ope atio s a d, if sig ifica t o ext eme, affect ou esults of ope atio s; ou expa sio outside the U.S. could subject us to additio al busi ess, fi a cial, egulato y, a d competitive isks; ou i debted ess could adve sely affect ou fi a cial flexibility, est ict ou cu e t a d futu e ope atio s, a d ou competitive positio ; existi g elect ic utility i dust y, fede al, state, a d mu icipal e ewable e e gy a d sola e e gy policies a d egulatio s, i cludi g zo i g a d siti g laws, a d a y subseque t cha ges, p ese t tech ical, egulato y, a d eco omic ba ie s to the pu chase a d use of sola e e gy systems that may sig ifica tly educe dema d fo ou p oducts o ha m ou ability to compete; cha ges i tax laws o egulatio s that a e applied adve sely to us, o ou custome s could mate ially adve sely affect ou busi ess, fi a cial co ditio , esults of ope atio s, a d p ospects; a d the ma ket p ice of ou Class A commo stock may decli e a d may co ti ue to be subject to sig ifica t volatility.
These a d othe impo ta t isk facto s a e desc ibed mo e fully i the Compa y’s most ece t A ual Repo t o Fo m 10-K a d subseque t Qua te ly Repo ts o Fo m 10-Q a d othe docume ts filed with the Secu ities a d Excha ge Commissio a d could cause actual esults to va y f om expectatio s. Give these u ce tai ties, you should ot place u due elia ce o fo wa d-looki g stateme ts. Also, fo wa d-looki g stateme ts ep ese t ou ma ageme t’s beliefs a d assumptio s o ly as of the date of this epo t. You should ead this epo t with the u de sta di g that ou actual futu e esults may be mate ially diffe e t f om what we expect.
Except as equi ed by law, we assume o obligatio to update these fo wa d-looki g stateme ts, o to update the easo s actual esults could diffe mate ially f om those a ticipated i these fo wa d-looki g stateme ts, eve if ew i fo matio becomes available i the futu e.
We defi e Adjusted G oss P ofit as g oss p ofit plus pla t optimizatio expe ses. We defi e Adjusted G oss P ofit Pe ce tage as Adjusted G oss P ofit divided by eve ue. We defi e Adjusted EBITDA as et i come plus/(mi us) (i) i te est expe se, (ii) i te est i come, (iii) i come tax expe se/(be efit), (iv) dep eciatio expe se, (v) amo tizatio of i ta gibles, (vi) equity-based compe satio , (vii) gai (loss) o sale of asset (viii) wi e i sulatio sh i kback litigatio expe ses, (ix) pla t optimizatio expe ses, (x) sha eholde litigatio expe ses, a d (xi) litigatio settleme t expe se, et of i su a ce ecove ies. We defi e Adjusted Net I come as et i come plus (i) amo tizatio of i ta gibles, (ii) amo tizatio / w ite-off of defe ed fi a ci g costs, (iii) equity-based compe satio , (iv) gai (loss) o sale of asset (v) wi e i sulatio sh i kback litigatio expe ses, (vi) pla t optimizatio expe ses, (vii) sha eholde litigatio expe ses, a d (viii) litigatio settleme t expe ses, et of i su a ce ecove ies, all et of applicable i come taxes. We defi e Adjusted Diluted EPS as Adjusted Net I come divided by the diluted weighted ave age sha es of Class A commo stock outsta di g fo the applicable pe iod.
Begi i g with the th ee mo ths e ded Ma ch 31, 2026, we evised ou defi itio of Adjusted EBITDA to exclude sha eholde litigatio costs, which a e eflected i Ge e al a d Admi ist ative expe ses o ou co solidated stateme ts of ope atio s. Compa ative amou ts fo p io pe iods have bee ecast to co fo m to the cu e t pe iod p ese tatio . Ma ageme t believes this evised defi itio p ovides a mo e mea i gful ep ese tatio of the Compa y’s o goi g ope ati g pe fo ma ce as the costs a e ot eflective of ou co e ope atio s.
Adjusted G oss P ofit, Adjusted G oss P ofit Pe ce tage, Adjusted EBITDA, Adjusted Net I come, a d Adjusted Diluted EPS a e i te ded as suppleme tal measu es of pe fo ma ce that a e eithe equi ed by, o p ese ted i acco da ce with, GAAP. We p ese t Adjusted G oss P ofit, Adjusted G oss P ofit Pe ce tage, Adjusted EBITDA, Adjusted Net I come, a d Adjusted Diluted EPS because we believe they assist i vesto s a d a alysts i compa i g ou pe fo ma ce ac oss epo ti g pe iods o a co siste t basis by excludi g items that we do ot believe a e i dicative of ou co e ope ati g pe fo ma ce. I additio , we use Adjusted G oss P ofit, Adjusted G oss P ofit Pe ce tage, Adjusted EBITDA, Adjusted Net I come, a d Adjusted Diluted EPS: (i) as facto s i evaluati g ma ageme t’s pe fo ma ce whe dete mi i g i ce tive compe satio , as applicable; (ii) to evaluate the effective ess of ou busi ess st ategies; a d (iii) because ou c edit ag eeme t uses measu es simila to Adjusted EBITDA, Adjusted Net I come a d Adjusted Diluted EPS to measu e ou complia ce with ce tai cove a ts.
Amo g othe limitatio s, Adjusted G oss P ofit, Adjusted G oss P ofit Pe ce tage, Adjusted EBITDA, Adjusted Net I come, a d Adjusted Diluted EPS do ot eflect ou cash expe ditu es, o futu e equi eme ts fo capital expe ditu es o co t actual commitme ts; do ot eflect the impact of ce tai cash cha ges esulti g f om matte s we co side ot to be i dicative of ou o goi g ope atio s; a d may be calculated by othe compa ies i ou i dust y diffe e tly tha we do o ot at all, which may limit thei useful ess as compa ative measu es.
Because of these limitatio s, Adjusted G oss P ofit, Adjusted G oss P ofit Pe ce tage, Adjusted EBITDA, Adjusted Net I come, a d Adjusted Diluted EPS should ot be co side ed i isolatio o as substitutes fo pe fo ma ce measu es calculated i acco da ce with GAAP. You should eview the eco ciliatio of g oss p ofit to Adjusted G oss P ofit a d Adjusted G oss P ofit Pe ce tage, et i come Adjusted EBITDA, a d et i come to Adjusted Net I come a d Adjusted Diluted EPS below a d ot ely o a y si gle fi a cial measu e to evaluate ou busi ess.
| Cu e t Assets | Cash a d cash equivale ts | $ | 15,724 | $ | 7,320 | Accou ts eceivable, et | 134,822 | 128,793 | U billed eceivables | 22,526 | 22,133 | I ve to y | 184,720 | 89,878 | I su a ce eceivable | 191 | — | Othe cu e t assets | 11,475 | 9,762 | Total Cu e t Assets | 369,458 | 257,886 | P ope ty, pla t a d equipme t, et | 63,265 | 53,302 | Goodwill | 69,941 | 69,941 | Othe i ta gible assets, et | 29,706 | 33,499 | Defe ed tax assets | 434,758 | 438,027 | Right-of-use ope ati g lease assets | 43,946 | 46,044 | Othe assets | 5,826 | 5,402 | $ | 1,016,900 | $ | 904,101 | Cu e t Liabilities | Accou ts payable | $ | 65,981 | $ | 64,875 | Acc ued expe ses a d othe | 35,270 | 22,215 | Litigatio settleme t liability | 4,499 | — | Wa a ty liability—cu e t po tio | 3,481 | 3,202 | Defe ed eve ue | 55,245 | 37,031 | Total Cu e t Liabilities | 164,476 | 127,323 | Revolvi g li e of c edit | 196,750 | 136,750 | Right-of-use ope ati g lease liabilities | 37,061 | 38,661 | Wa a ty liability, less cu e t po tio | 403 | 403 | Othe lo g-te m liabilities | 991 | 991 | 399,681 | 304,128 | Commitme ts a d Co ti ge cies | P efe ed stock, $0.00001 pa value – 5,000,000 sha es autho ized; o e issued a d outsta di g as of Ju e 30, 2026 a d Decembe 31, 2025 | — | — | Class A commo stock, $0.00001 pa value – 1,000,000,000 sha es autho ized; 172,196,879 a d 171,358,711 sha es issued; 168,288,492 a d 167,450,324 outsta di g as of Ju e 30, 2026 a d Decembe 31, 2025, espectively | 2 | 2 | Additio al paid-i capital | 498,495 | 493,090 | T easu y stock, at cost, 3,908,387 sha es as of Ju e 30, 2026 a d Decembe 31, 2025 | (25,272 | ) | (25,272 | ) | Retai ed ea i gs | 143,994 | 132,153 | Total Stockholde s’ Equity | 617,219 | 599,973 | $ | 1,016,900 | $ | 904,101 |
| $ | 163,372 | $ | 110,841 | $ | 303,929 | $ | 191,202 | 113,847 | 69,639 | 213,394 | 121,860 | 49,525 | 41,202 | 90,535 | 69,342 | Ge e al a d admi ist ative expe ses | 28,465 | 23,064 | 59,479 | 44,757 | Dep eciatio a d amo tizatio | 2,338 | 2,140 | 4,616 | 4,275 | 30,803 | 25,204 | 64,095 | 49,032 | 18,722 | 15,998 | 26,440 | 20,310 | I te est expe se | (3,474 | ) | (2,236 | ) | (6,377 | ) | (4,651 | ) | I te est i come | 268 | 76 | 327 | 194 | Litigatio settleme t expe se, et of ecove ies | — | — | (5,250 | ) | — | Gai (loss) o sale of assets | — | 3,134 | (2 | ) | 3,134 | Fo eig cu e cy gai (loss) | (20 | ) | — | (28 | ) | — | 15,496 | 16,972 | 15,110 | 18,987 | I come tax expe se | (3,358 | ) | (3,117 | ) | (3,269 | ) | (5,414 | ) | $ | 12,138 | $ | 13,855 | $ | 11,841 | $ | 13,573 | Basic | $ | 0.07 | $ | 0.08 | $ | 0.07 | $ | 0.08 | Diluted | $ | 0.07 | $ | 0.08 | $ | 0.07 | $ | 0.08 | Basic | 168,059 | 167,286 | 167,808 | 167,124 | Diluted | 170,023 | 167,562 | 169,893 | 167,238 |
| Net i come | $ | 11,841 | $ | 13,573 | Adjustme ts to eco cile et i come to et cash p ovided by ope ati g activities: | Dep eciatio a d amo tizatio | 8,732 | 6,622 | Amo tizatio /w ite off of defe ed fi a ci g costs | 311 | 311 | Equity-based compe satio | 7,698 | 5,255 | P ovisio fo obsolete o slow-movi g i ve to y | 2,245 | 617 | P ovisio fo wa a ty expe se | 4,369 | 256 | Defe ed taxes | 3,269 | 6,592 | Othe | 3,529 | (3,134 | ) | Cha ges i assets a d liabilities: | Accou ts eceivable | (6,029 | ) | (25,251 | ) | U billed eceivables | (393 | ) | 10,973 | I ve to y | (97,087 | ) | (1,539 | ) | Othe assets | (2,448 | ) | (2,449 | ) | Accou ts payable | 865 | 6,099 | Acc ued expe ses a d othe | 10,026 | 3,937 | Wa a ty liability | (4,090 | ) | (21,463 | ) | Litigatio eceivable a d settleme t liabilities | 4,308 | — | Defe ed eve ue | 18,214 | 1,338 | (34,640 | ) | 1,737 | Pu chases of p ope ty, pla t a d equipme t | (14,663 | ) | (15,430 | ) | P oceeds f om sale of p ope ty, pla t a d equipme t | — | 5,088 | (14,663 | ) | (10,342 | ) | Employee withholdi g taxes elated to et settled equity awa ds | (2,293 | ) | (279 | ) | P oceeds f om evolvi g c edit facility | 60,000 | 30,000 | Repayme ts of evolvi g c edit facility | — | (40,000 | ) | Excise taxes o t easu y stock t a sactio s | — | 59 | 57,707 | (10,220 | ) | 8,404 | (18,825 | ) | 7,320 | 23,511 | $ | 15,724 | $ | 4,686 |
Reco ciliatio of G oss P ofit to Adjusted G oss P ofit a d Adjusted G oss P ofit Pe ce tage (i thousa ds):
| Reve ue | $ | 163,372 | $ | 110,841 | $ | 303,929 | $ | 191,202 | Cost of eve ue | 113,847 | 69,639 | 213,394 | 121,860 | G oss p ofit | $ | 49,525 | $ | 41,202 | $ | 90,535 | $ | 69,342 | G oss p ofit pe ce tage | 30.3 | % | 37.2 | % | 29.8 | % | 36.3 | % | Pla t optimizatio expe se | $ | 496 | $ | — | $ | 1,117 | $ | — | Adjusted g oss p ofit | $ | 50,021 | $ | 41,202 | $ | 91,652 | $ | 69,342 | Adjusted g oss p ofit pe ce tage | 30.6 | % | 37.2 | % | 30.2 | % | 36.3 | % |
Reco ciliatio of Net I come to Adjusted EBITDA (i thousa ds):
| Net i come | $ | 12,138 | $ | 13,855 | $ | 11,841 | $ | 13,573 | I te est expe se | 3,474 | 2,236 | 6,377 | 4,651 | I te est i come | (268 | ) | (76 | ) | (327 | ) | (194 | ) | I come tax expe se | 3,358 | 3,117 | 3,269 | 5,414 | Dep eciatio expe se | 2,740 | 1,439 | 4,939 | 2,830 | Amo tizatio of i ta gibles | 1,891 | 1,896 | 3,793 | 3,792 | Equity-based compe satio | 4,381 | 2,593 | 7,698 | 5,254 | (Gai ) loss o sale of asset | — | (3,134 | ) | 2 | (3,134 | ) | Wi e i sulatio sh i kback litigatio expe ses(a) | 2,876 | 2,546 | 6,583 | 5,075 | Pla t optimizatio expe ses(b) | 496 | — | 1,117 | — | Sha eholde litigatio expe ses(c) | 464 | 197 | 2,120 | 913 | Litigatio settleme t expe se(c) | — | — | 5,250 | — | Adjusted EBITDA | $ | 31,550 | $ | 24,669 | $ | 52,662 | $ | 38,174 |
Reco ciliatio of Net I come to Adjusted Net I come (i thousa ds):
| Net i come | $ | 12,138 | $ | 13,855 | $ | 11,841 | $ | 13,573 | Amo tizatio of i ta gibles | 1,891 | 1,896 | 3,793 | 3,792 | Amo tizatio / w ite-off of defe ed fi a ci g costs | 156 | 156 | 311 | 311 | Equity-based compe satio | 4,381 | 2,593 | 7,698 | 5,254 | (Gai ) loss o sale of asset | — | (3,134 | ) | 2 | (3,134 | ) | Wi e i sulatio sh i kback litigatio expe ses(a) | 2,876 | 2,546 | 6,583 | 5,075 | Pla t optimizatio expe ses(b) | 496 | — | 1,117 | — | Sha eholde litigatio expe ses(c) | 464 | 197 | 2,120 | 913 | Litigatio settleme t expe se(c) | — | — | 5,250 | — | Tax impact of adjustme ts(d) | (2,669 | ) | (1,021 | ) | (6,987 | ) | (2,955 | ) | Adjusted Net I come | $ | 19,733 | $ | 17,087 | $ | 31,728 | $ | 22,829 |
(a) Fo the th ee a d six mo ths e ded Ju e 30, 2026, ep ese ts $2.9 millio a d $6.6 millio , espectively, of expe ses i cu ed i co ectio with the lawsuit i itiated by the Compa y agai st the supplie of the defective wi e. Fo the th ee a d six mo ths e ded Ju e 30, 2025, ep ese ts $2.5 millio a d $5.1 millio , espectively, of expe ses i cu ed i co ectio with the lawsuit i itiated by the Compa y agai st the supplie of the defective wi e. We co side this litigatio disti ct f om o di a y cou se legal matte s give the expected mag itude of the expe ses, the atu e of the allegatio s i the Compa y’s complai t, the amou t of damages sought, a d the impact of the matte u de lyi g the litigatio o the Compa y’s fi a cial esults. I the futu e, we also i te d to exclude f om ou o -GAAP measu es the be efit of ecove y, if a y. We believe excludi g expe ses f om these disc ete litigatio eve ts p ovides i vesto s with a bette view of the ope ati g pe fo ma ce of ou busi ess a d allows fo compa ability th ough pe iods.
(b) Fo the th ee a d six mo ths e ded Ju e 30, 2026, ep ese ts $0.5 millio a d $1.1 millio of expe ses i cu ed i co ectio with actio s take to co solidate ou ope atio s i to a ewly co st ucted facility, i cludi g items such as p ofessio al fees, elocatio , facility set-up a d othe costs. We believe excludi g expe ses f om these eve ts p ovides i vesto s with a bette view of the ope ati g pe fo ma ce of ou busi ess a d allows fo compa ability th ough pe iods.
(c) Fo the th ee a d six mo ths e ded Ju e 30, 2026, ep ese ts $0.5 millio a d $2.1 millio of expe ses i cu ed i co ectio with the Compa y’s defe se of ce tai de ivative a d class actio litigatio a d fo the th ee mo ths a d six mo ths e ded Ju e 30, 2026, ep ese ts ze o a d $5.3 millio , espectively, i settleme t expe ses associated with this litigatio . Fo the th ee a d six mo ths e ded Ju e 30, 2025, ep ese ts $0.2 millio a d $0.9 millio of expe ses i cu ed i co ectio with the Compa y’s defe se of ce tai de ivative a d class actio litigatio . We co side expe ses i cu ed i co ectio with these legal matte s disti ct f om o mal matte s a d expe ses withi the ope atio of ou busi ess.
(d) Shoals Tech ologies G oup, I c. is subject to U.S. Fede al i come taxes, i additio to state a d local taxes. Rep ese ts the estimated tax impact of all Adjusted Net I come add-backs, excludi g those which ep ese t pe ma e t diffe e ces betwee book ve sus tax. The adjustme t to the p ovisio fo i come tax eflects the effective tax ates below.
| Statuto y U.S. Fede al i come tax ate | 21.0 | % | 21.0 | % | 21.0 | % | 21.0 | % | Pe ma e t adjustme ts | 2.5 | % | 0.6 | % | 2.5 | % | 0.6 | % | State a d local taxes ( et of fede al be efit) | 2.5 | % | 2.4 | % | 2.5 | % | 2.6 | % | Effective i come tax ate fo Adjusted Net I come | 26.0 | % | 24.0 | % | 26.0 | % | 24.2 | % |
Calculatio of Adjusted Diluted Ea i gs pe Sha e (i thousa ds, except pe sha e amou ts):
| Diluted weighted ave age sha es outsta di g | 170,023 | 167,562 | 169,893 | 167,238 | Adjusted Net I come | $ | 19,733 | $ | 17,087 | $ | 31,728 | $ | 22,829 | Adjusted Diluted EPS | $ | 0.12 | $ | 0.10 | $ | 0.19 | $ | 0.14 |
