Stardust Solar Reports Q2 2025 Results: Revenue of $2.21M (Up 13% YoY), Gross Profit of $1M (Up 84% YoY), and Project Backlog Increase of $2.52M (Up 69% YoY)

Executive Summary

• Stardust Solar Energy Inc. reported unaudited interim financial results for the second quarter and six months ended June 30, 2025, showing significant year-over-year revenue and gross profit growth.
• The company reported a 13% increase in year-to-date revenue to $2.21 million and nearly doubled gross profit to $1 million, driven by operating leverage and cost controls.
• Project backlog reached a record high, with $2.52 million in new contracts signed in Q2 2025 (a 69% increase year-over-year), bringing the YTD backlog total to $3.2 million.

Key Details

• Q2 2025 Financials (vs Q1 2025):
  • Revenue: $1.21 million (up 21% from $1 million).
  • Gross Profit: $509,000 (up 5% from $486,000).
  • Operating Expenses: $985,000 (down $152,000 or 13%).
  • Operating Loss: ($475,000), an improvement of $176,000 from ($651,000).
  • Interest & Bank Charges: $63,000 (down 47%).
  • Bad Debt Expense: $18,000 (down 67%).
• Year-to-Date 2025 Results (Six Months Ended June 30, 2025 vs. 2024):
  • Total Revenue: $2.21 million (up $260,000 or 12%).
  • Gross Profit: $1 million (up $454,000 or 84%).
  • Direct Costs: $1.21 million (down $194,000 or 14%).
  • Operating Loss: ($1.13 million) compared to ($567,000) in the prior year period.
• Revenue Drivers:
  • Franchise fees increased to $696,000 from $253,000 (+175%).
  • Training revenue increased by 28%.
  • Product sales were up 27% sequentially.
  • Training and exam administration revenue increased 39% sequentially.
  • Franchise fees increased 9% sequentially.
• Balance Sheet Updates (as of June 30, 2025):
  • Current Assets: $1.28 million (compared to $594,000 a year earlier), reflecting higher accounts receivable.
  • Total Liabilities: $1.75 million (down $976,000 or 36% since Dec 31, 2024; down $11,000 or 1% since Mar 31, 2025).
  • The company repaid certain loans and convertible borrowings during the period.
• Operational Metrics:
  • Gross Margin: Increased from approximately 28% to 45%.
  • Project Backlog: $2.52 million in newly signed contracts in Q2 2025 (up 69% from $1.49 million in Q2 2024).
  • Franchise Network Growth: Expanded from 83 territories at the start of 2025 to 96 territories (including Canada, US, and Antigua & Barbuda).
  • Management expects the network to surpass 100 territories by year-end 2025.

Notable Quotes

• "Q2 2025 was an incredibly strong quarter for Stardust Solar... We reported 13% year-over-year revenue growth, nearly doubled gross profit, and higher gross margins, while significantly reducing liabilities and lowering quarterly operating expenses. As well, our project backlog reached its highest level to date, reflecting increased activity across the franchise network." — Mark Tadros, Founder and CEO