Red Flags Detected
- Litigation Settlement Expense (new) — Company accrued $5.3M settlement for securities litigation, a new disclosure not present in prior period.
Shoals revenue surges 75% but margin falls 580bp on tariffs; cash burn and legal costs rise
Filed May 5, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 6, 2025 · ~2 min read
Key Changes
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Revenue jumped 75% YoY to $140.6M driven by strong demand and market share gains, reversing prior year's 11.5% decline. Backlog grew 17.5% to $758M with signed orders nearly doubling, signaling sustained momentum.
MD&A: Revenue & Backlog verify on EDGAR → -
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Gross margin compressed 580bp to 29.2% due to $3.8M in incremental tariff costs, $1.4M in new facility amortization, and higher material costs. Supreme Court invalidated tariffs in Feb 2026; refund process uncertain.
MD&A: Gross Margin & Tariffs verify on EDGAR → -
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Operating cash flow swung from $15.6M inflow to $41.4M outflow as company built $69.6M in inventory. Revolver borrowings rose $45M to $181.8M, leaving only $15.4M of $200M facility available.
MD&A: Cash Flow & Liquidity verify on EDGAR →
2 more material changes behind this preview — plus the full narrative summary, section-by-section diffs against the prior filing, and verbatim quotes with EDGAR citations.
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Generated by AI · Jun 15, 2026 12:14 AM