Zeo Energy Corporation Class A Common Stock (ZEO)

FairStock Score: 16/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Zeo Energy with Graham's caution and Buffett's preference for understandable, profitable businesses. Zeo installs residential solar, roofing, insulation, and batteries. Residential solar is a competitive, labor-heavy business with few obvious pricing advantages, and the figures support that: filed results show revenue falling from $109.7M in fiscal 2023 to $73.2M in fiscal 2024 to $69.3M in fiscal 2025. Net income went from a loss of $3.0M in fiscal 2023 to a loss of $2.7M in fiscal 2024, then a much wider loss of $14.0M in fiscal 2025. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $13.4M and net income was -$2.3M; in fiscal Q1 2026 revenue was $13.2M and net income was -$3.5M, so the loss narrowed slightly but the company is not yet self-funding. The data sheet lists trailing free cash flow of -$6.3M and an FCF yield of -6.0%, both FairStock calculations. Balance-sheet leverage looks modest, with D/E of 0.04, but Altman Z of 0.79 and Piotroski F-Score of 4/9, also FairStock calculations, point to financial fragility. At the 2026-10-13 close of $0.26, P/B was 1.00, P/E was -0.90, ROE was -31.07%, and ROCE was -13.56%. A negative P/E means earnings offer no valuation anchor. FairStock's 16/100 score and TURNAROUND category, loss in the latest year after earlier profits, describe a speculative recovery, not a proven bargain. I would need evidence of durable positive cash flow and stabilized revenue before calling this a sound value.

In plain English: Zeo Energy sells and installs residential solar systems, roofing, insulation, and batteries, mostly through in-home sales. The business looks weak right now: it has been losing money, revenue has fallen from $109.7 million in fiscal 2023 to $69.3 million in fiscal 2025, and it burned cash over the last year. At $0.26 on 2026-10-13, the price is not clearly cheap because profits are negative; it trades near its accounting net asset value, but that value can shrink if losses continue.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer