Nextpower Inc 8-K, filed Oct 28, 2026
Nextpower Inc. (NXT)
8-K
2026-10-28
For: 2026-10-26
View Original
Added on
October 28, 2026
About this 8-K
Nextpower Inc filed this 8-K on October 28, 2026, reporting on events of October 26, 2026.
Nextpower reported revenue of over $1.1 billion, adjusted EBITDA of approximately $250 million and backlog exceeding $6 billion, raised its fiscal year 2027 revenue outlook to $4.2 to $4.45 billion, and appointed Sarah Slusser and Michael Alvarez as directors. AI summary
Items reported
- Item 2.02: Financial results
- Item 5.02: Director or officer change, or executive pay
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 26, 2026
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (510) 270-2500
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On October 28, 2026, Nextpower Inc. (the “Company”) issued a press release announcing its results for the second fiscal quarter ended October 2, 2026. A copy of the press release is attached as Exhibit 99.1 to this current report on Form 8-K and is incorporated by reference herein.
The information contained in Item 2.02 of this current report on Form 8-K and the exhibit attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On October 26, 2026, the Board of Directors (the “Board”) of the Company increased the size of the Board from ten to twelve and appointed Sarah Slusser and Michael Alvarez to serve as directors of the Company. Ms. Slusser will serve as a Class II director of the Company, effective as of November 1, 2026, with a term of office expiring at the Company’s 2027 annual meeting of stockholders, and Mr. Alvarez will serve as a Class III director of the Company, effective as of December 1, 2027, with a term of office expiring at the Company’s 2028 annual meeting of stockholders.
Appointment of Sara Slusser
Ms. Slusser, 64, served as Chief Executive Officer of Cypress Creek Renewables, a leading U.S. power producer, from June 2019 through March 2026. Prior to joining Cypress Creek Renewables, Ms. Slusser founded and served as Managing Director at Point Reyes Energy Partners, LLC, a solar and energy storage advisory and development company, from September 2016 through June 2019. Prior to this, Ms. Slusser co-founded GeoGlobal Energy LLC, a geothermal company in the U.S., Chile and Germany. Before co-founding GeoGlobal, Ms. Slusser held various positions at The AES Corporation, a utility and power generation company, for 21 years, where she ultimately led the corporate mergers and acquisitions group as Senior Vice President, Global M&A. Ms. Slusser currently serves as an independent director on the board of directors of Prologis, Inc., a logistics and real estate company, since May 2025, where she serves on its audit and nomination & governance committees. From May 2020 through May 2025, Ms. Slusser served on the board of directors of TransAlta Corporation, a publicly traded Canadian electricity power generator.
Ms. Slusser earned her B.A. from Harvard University, and her M.B.A. from Yale School of Management.
The Board has determined that Ms. Slusser qualifies as an independent director in accordance with the Nasdaq listing rules and otherwise meets all applicable requirements to serve on the Board.
Ms. Slusser will be compensated in accordance with Nextpower’s non-employee director compensation program, as described in the Company’s proxy statement for the 2026 annual meeting of stockholders, as filed with the Securities and Exchange Commission on July 7, 2026 (the “2026 Proxy Statement”).
There is no arrangement or understanding with any person pursuant to which Ms. Slusser was appointed as a member of the Board, and there are no family relationships between Ms. Slusser and any director or executive officer of Nextpower. Additionally, there are no related person transactions between Ms. Slusser and Nextpower and/or its subsidiaries that are required to be reported under Item 404(a) of Regulation S-K.
Nextpower entered into its standard director indemnification agreement with Ms. Slusser.
Appointment of Michael Alvarez
Mr. Alvarez, 70, is a Co-Founder and has served as Chief Risk Officer of Longroad Energy Holdings, LLC, a U.S.-based renewable energy company focused on developing and operating wind, solar, storage, and digital infrastructure projects throughout the U.S., since June 2026. Prior to his role as Chief Risk Officer, Mr. Alvarez served as Chief Operating Officer of Longroad Energy from April 2016 to July 2026. Prior to co-founding Longroad Energy, Mr. Alvarez served as President
and CFO of First Wind Holdings, LLC, a renewable energy company, from 2006 to 2016. Mr. Alvarez has also previously served as Vice President of Strategic Planning at Edison International, a public utility holding company and Executive Vice President, Chief Financial Officer, and General Counsel at Nexant Inc., an energy, software and consulting company.
Mr. Alvarez earned his B.A., Economics, from the University of Virginia and his J.D. from the University of Virginia School of Law.
The Board has determined that Mr. Alvarez qualifies as an independent director in accordance with the Nasdaq listing rules and otherwise meets all applicable requirements to serve on the Board.
Mr. Alvarez will be compensated in accordance with Nextpower’s non-employee director compensation program, as described in the 2026 Proxy Statement.
There is no arrangement or understanding with any person pursuant to which Mr. Alvarez was appointed as a member of the Board, and there are no family relationships between Mr. Alvarez and any director or executive officer of Nextpower. Additionally, there are no related person transactions between Mr. Alvarez and Nextpower and/or its subsidiaries that are required to be reported under Item 404(a) of Regulation S-K.
Nextpower entered into its standard director indemnification agreement with Mr. Alvarez.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Description | ||||
| 99.1 | |||||
| 104 | Cover Page Interactive Data (embedded within the Inline XBRL document) | ||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Nextpower Inc. | |||||
| By: | /s/ Charles Boynton | ||||
| Charles Boynton | |||||
| Chief Financial Officer | |||||
Date: October 28, 2026
Exhibit 99.1
Nextpower Reports Q2 Fiscal Year 2027 Financial Results
Record Revenue of $1.1 Billion
Record Bookings Increase Backlog to over $6 Billion
FREMONT, Calif., October 28, 2026 – Nextpower™ (Nasdaq: NXT), a leading provider of clean power technology solutions, today announced financial results for the second quarter for fiscal year 2027, ended October 2, 2026.
Financial Summary
(In millions, except per share)
| Q2 FY27 | Q1 FY27 | Q2 FY26 | |||||||||||||||
| Revenue | $1,109 | $935 | $905 | ||||||||||||||
| GAAP Gross Profit | $345 | $336 | $293 | ||||||||||||||
| GAAP Gross Margin | 31.1 | % | 35.9 | % | 32.4 | % | |||||||||||
| GAAP Net Income | $165 | $165 | $147 | ||||||||||||||
| GAAP Net Income Margin | 14.9 | % | 17.7 | % | 16.2 | % | |||||||||||
| GAAP Diluted EPS | $1.08 | $1.07 | $0.97 | ||||||||||||||
| Adjusted Gross Profit | $355 | $342 | $300 | ||||||||||||||
| Adjusted Gross Margin | 32.0 | % | 36.6 | % | 33.1 | % | |||||||||||
| Adjusted EBITDA | $250 | $233 | $224 | ||||||||||||||
| Adjusted EBITDA Margin | 22.5 | % | 24.9 | % | 24.7 | % | |||||||||||
| Adjusted Net Income | $202 | $186 | $181 | ||||||||||||||
| Adjusted Diluted EPS | $1.31 | $1.20 | $1.19 | ||||||||||||||
Q2 FY27, Q1 FY27, and Q2 FY26 results include approximately $99 million, $99 million, and $67 million, respectively, of IRA 45X advanced manufacturing tax credit vendor rebates and tariffs, net.
Please refer to Nextpower’s most recent Quarterly Report on Form 10-Q and Annual Report on Form 10-K for more information on schedules III, IV and V attached to this press release for a reconciliation of non-GAAP to GAAP financial measures. Additional information can be found on the Investor Relations section of our website.
Business Highlights
Company Highlights
•Delivered record quarterly results, including revenue of over $1.1 billion, net income of $165 million, and adjusted EBITDA of approximately $250 million.
•Completed the Zimmermann PV-Steel Group acquisition for approximately €230 million, subject to customary working capital adjustments, with no stock or earnout.
•Announced Sarah Slusser and Michael Alvarez will join our Board, bringing experience across renewables, power generation, project operations, finance, and risk management.
Products and Innovation
•Deployed NX Earth Truss™ foundations with NX Horizon® trackers equipped with Hail Pro™, demonstrating complementary product integration across our technology platform.
•Secured a U.S. patent for NX PowerMerge™, which is now in commercial deployment at scale, with more than 2 GW in backlog.
•Added fixed-tilt and structural solutions to our product portfolio through the Zimmermann acquisition.
Market and Sales Momentum
•Bookings reached a quarterly record, and backlog exceeded $6 billion.
•Secured a 1.1 GW inverter framework agreement across five projects and shipped first NX Power Conversion systems to customers.
•eBOS bookings exceeded $100 million, a quarterly record; foundations also posted record quarterly bookings.
•Zimmermann acquisition provides access to an established European customer base for complementary products, and the acquisition added 15 countries, expanding our reach to a total of 68 countries.
“Nextpower delivered record quarterly revenue and bookings and grew backlog to more than $6 billion, reflecting continued demand strength for our tracker products, alongside rapidly accelerating demand and orders for our additional products and services,” said Dan Shugar, CEO and founder of Nextpower. “Customer adoption of our integrated platform is growing. Recent examples include energy storage and other complementary offerings accounting for approximately 22% of our Q2 revenue, record quarterly eBOS bookings of more than $100 million, and a 1.1-gigawatt inverter supply agreement signed with a leading Tier 1 IPP. These achievements reflect the strength of our customer relationships and differentiated technology. We remain focused on expanding our participation across the project lifecycle, helping customers build faster, enhance yield, and optimize long-term operation.”
“Our team’s strong execution across the business led to record quarterly revenue and adjusted EBITDA with cash flow from operations of $158 million and strong adjusted free cash flow of approximately $135 million,” said Chuck Boynton, CFO of Nextpower. “We ended the quarter with over $1 billion of cash and cash equivalents and no debt, while funding new acquisitions and returning approximately $162 million to shareholders through share repurchases. We look forward to sharing more about our long-term strategy and financial framework at our Capital Markets Day in Las Vegas on November 16th.”
FY2027 Annual Outlook
| Updated Outlook | Previous Outlook | |||||||
| Revenue | $4.2 to $4.45 billion | $4.1 to $4.4 billion | ||||||
| GAAP Net Income | $559 to $598 million | $540 to $573 million | ||||||
| GAAP Diluted EPS | $3.62 to $3.87 | $3.42 to $3.64 | ||||||
| Adjusted EBITDA | $890 to $940 million | $870 to $930 million | ||||||
| Adjusted Diluted EPS | $4.61 to $4.87 | $4.42 to $4.73 | ||||||
Updated outlook includes Q3 FY27 revenue at approximately 10% year over year growth, and Q3 FY27 adjusted EBITDA margin roughly 1 to 2 percentage points below Q4 FY27.
Adjusted EBITDA range of $890 million to $940 million excludes approximately $185 million for stock-based compensation, net intangible amortization, and acquisition related costs.
Adjusted Diluted EPS range of $4.61 to $4.87 excludes approximately $0.99 for stock-based compensation, net intangible amortization, and acquisition related costs, net of impacts for tax.
Q2 FY2027 Earnings Call
October 28, 2026
2:00 p.m. PT / 5:00 p.m. ET
Live webcast available on investors.nextpower.com
We encourage you to review our Q2 FY27 Shareholder Letter, which, along with this press release, is available on the Nextpower Investor Relations website and includes important information for Nextpower shareholders that supplements and expands on the information in this press release.
The webcast replay will be available on the Nextpower Investor Relations website following the conclusion of the event.
About Nextpower
Nextpower™ (Nasdaq: NXT) innovates and delivers integrated technology solutions for modern energy infrastructure. Its solar and energy storage platforms help customers design, build, and operate utility-scale power plants and other critical power infrastructure with faster project delivery, improved system performance, greater reliability, and long-term operational value. Building on more than a decade of energy technology leadership, Nextpower partners with customers worldwide to accelerate the deployment of reliable firm power needed for a rapidly electrifying world. Learn more at www.nextpower.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation statements relating to: the trends for energy demand and future solar adoption; the demand for our products (including but not limited to trackers, foundations, eBOS, NX PowerMerge, fixed-tilt and structural solutions and our other products and our bundled solutions); the ability to grow our core tracker business, our bookings and backlog, including our ability to convert our backlog into revenue; our competitiveness and global market share; our expansion into energy storage solutions, data center power infrastructure and our ability to provide integrated solutions across solar, energy storage and data center applications; the expected benefits of recent acquisitions, including the benefits our customers may realize as a result of integrating these businesses and assets into Nextpower’s; and statements regarding our updated outlook for fiscal year 2027 and other periods. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors including but not limited to: our ability to execute our strategies, mission, plans, objectives and goals; our ability to integrate our recently completed acquisitions and to realize their anticipated benefits and synergies; the market demand for our products, solutions and services and our ability to deliver them to customers; projections regarding the U.S. and global demand for electricity and solar power; macro-economic trends; changing business conditions in our industry and markets overall; and legislative, regulatory and economic developments. These forward-looking statements are based on various assumptions and on the current expectations of Nextpower’s management. These statements involve risks and uncertainties that could cause the actual results to differ materially from those anticipated by these forward-looking statements, including risks and uncertainties that are also described under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Nextpower’s most recent Quarterly Report on Form 10-Q, Annual Report on Form 10-K and other documents that Nextpower has filed or will file with the Securities and Exchange Commission. There may be additional risks that Nextpower is not aware of or that Nextpower currently believes are immaterial that could also cause actual results to differ from these forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements. Nextpower assumes no obligation to update these forward-looking statements.
Use of Adjusted Financial Information
An explanation and reconciliation of non-GAAP financial measures to GAAP financial measures is presented in Schedules III, IV and V attached to this press release, and can be found, along with other financial information including the Earnings Presentation, on the investor relations section of our website at investors.nextpower.com.
Channels for Disclosure of Information
Nextpower intends to announce material information to the public through the Nextpower Investor Relations website investors.nextpower.com, SEC filings, press releases, public conference calls, and public webcasts. Nextpower uses these channels to communicate with its investors, customers, and the public about the company, its offerings, and other issues. As such, Nextpower encourages investors, the media, and others to follow the channels listed above and to review the information disclosed through such channels.
Investor Contact:
Sarah Lee
Investor@nextpower.com
Media Contact:
Brandy Lee
Media@nextpower.com
Schedule I
Nextpower Inc.
Unaudited condensed consolidated statements of operations
(In thousands, except per share data)
| Three-month periods ended | |||||||||||||||||||||||||||||
| October 2, 2026 | July 3, 2026 | September 26, 2025 | |||||||||||||||||||||||||||
| Revenue | $ | 1,109,276 | $ | 935,170 | $ | 905,268 | |||||||||||||||||||||||
| Cost of sales | 763,960 | 599,317 | 612,408 | ||||||||||||||||||||||||||
| Gross profit | 345,316 | 335,853 | 292,860 | ||||||||||||||||||||||||||
| Selling, general and administrative expenses | 92,202 | 100,438 | 84,626 | ||||||||||||||||||||||||||
| Research and development | 45,568 | 44,508 | 26,889 | ||||||||||||||||||||||||||
| Operating income | 207,546 | 190,907 | 181,345 | ||||||||||||||||||||||||||
| Interest expense | 350 | 253 | 730 | ||||||||||||||||||||||||||
| Other income, net | (7,876) | (8,271) | (2,110) | ||||||||||||||||||||||||||
| Income before income taxes | 215,072 | 198,925 | 182,725 | ||||||||||||||||||||||||||
| Provision for income taxes | 49,619 | 33,570 | 35,864 | ||||||||||||||||||||||||||
| Net income | 165,453 | 165,355 | 146,861 | ||||||||||||||||||||||||||
| Earnings per share: | |||||||||||||||||||||||||||||
| Basic | $ | 1.09 | $ | 1.10 | $ | 0.99 | |||||||||||||||||||||||
| Diluted | $ | 1.08 | $ | 1.07 | $ | 0.97 | |||||||||||||||||||||||
| Weighted-average shares used in computing per share amounts: | |||||||||||||||||||||||||||||
| Basic | 151,496 | 150,778 | 148,028 | ||||||||||||||||||||||||||
| Diluted | 153,909 | 155,142 | 152,018 | ||||||||||||||||||||||||||
Nextpower Inc.
Unaudited condensed consolidated statements of operations (continued)
(In thousands, except per share data)
| Six-month periods ended | |||||||||||||||||||||||
| October 2, 2026 | September 26, 2025 | ||||||||||||||||||||||
| Revenue | $ | 2,044,446 | $ | 1,769,521 | |||||||||||||||||||
| Cost of sales | 1,363,277 | 1,194,935 | |||||||||||||||||||||
Gross profit | 681,169 | 574,586 | |||||||||||||||||||||
| Selling, general and administrative expenses | 192,640 | 158,562 | |||||||||||||||||||||
| Research and development | 90,076 | 48,449 | |||||||||||||||||||||
Operating income | 398,453 | 367,575 | |||||||||||||||||||||
| Interest expense | 603 | 1,946 | |||||||||||||||||||||
| Other income, net | (16,147) | (8,063) | |||||||||||||||||||||
Income before income taxes | 413,997 | 373,692 | |||||||||||||||||||||
| Provision for income taxes | 83,189 | 69,648 | |||||||||||||||||||||
Net income | 330,808 | 304,044 | |||||||||||||||||||||
| Earnings per share: | |||||||||||||||||||||||
| Basic | $ | 2.19 | $ | 2.06 | |||||||||||||||||||
| Diluted | $ | 2.14 | $ | 2.01 | |||||||||||||||||||
| Weighted-average shares used in computing per share amounts: | |||||||||||||||||||||||
| Basic | 151,131 | 147,480 | |||||||||||||||||||||
| Diluted | 154,520 | 151,110 | |||||||||||||||||||||
Schedule II
Nextpower Inc.
Unaudited condensed consolidated balance sheets
(In thousands)
| As of October 2, 2026 | As of March 31, 2026 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 1,029,886 | $ | 1,094,976 | |||||||
Accounts receivable, net of allowance of $2,273 and $2,078, respectively | 584,299 | 417,043 | |||||||||
| Contract assets | 615,732 | 533,257 | |||||||||
| Inventories | 264,136 | 262,276 | |||||||||
| Section 45X credit receivable | 359,681 | 352,598 | |||||||||
| Other current assets | 204,932 | 186,406 | |||||||||
| Total current assets | 3,058,666 | 2,846,556 | |||||||||
| Property and equipment, net | 108,639 | 78,356 | |||||||||
| Goodwill | 653,594 | 488,950 | |||||||||
| Other intangible assets, net | 233,382 | 78,046 | |||||||||
| Deferred tax assets | 510,231 | 511,815 | |||||||||
| Other assets | 74,950 | 69,489 | |||||||||
| Total assets | $ | 4,639,462 | $ | 4,073,212 | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 643,664 | $ | 533,490 | |||||||
| Accrued expenses | 147,052 | 130,133 | |||||||||
| Deferred revenue | 413,762 | 307,492 | |||||||||
| Other current liabilities | 169,007 | 192,747 | |||||||||
| Total current liabilities | 1,373,485 | 1,163,862 | |||||||||
| Tax receivable agreement (TRA) liability | 373,811 | 372,659 | |||||||||
| Long-term deferred revenue | 100,826 | 102,493 | |||||||||
| Other liabilities | 145,533 | 99,801 | |||||||||
| Total liabilities | 1,993,655 | 1,738,815 | |||||||||
| Total stockholders’ equity | 2,645,807 | 2,334,397 | |||||||||
| Total liabilities and stockholders’ equity | $ | 4,639,462 | $ | 4,073,212 | |||||||
Schedule III
Nextpower Inc.
Unaudited condensed consolidated statements of cash flows
(In thousands)
| Six-month periods ended | |||||||||||||||||||||||||||||
| October 2, 2026 | September 26, 2025 | ||||||||||||||||||||||||||||
| Cash flows from operating activities: | |||||||||||||||||||||||||||||
| Net income | $ | 330,808 | $ | 304,044 | |||||||||||||||||||||||||
| Depreciation and amortization of intangible assets | 23,689 | 13,150 | |||||||||||||||||||||||||||
| Changes in working capital and other, net | (75,336) | (48,991) | |||||||||||||||||||||||||||
| Net cash provided by operating activities | 279,161 | 268,203 | |||||||||||||||||||||||||||
| Cash flows from investing activities: | |||||||||||||||||||||||||||||
| Payment for business acquisitions, net of cash acquired | (132,455) | (108,346) | |||||||||||||||||||||||||||
Purchases of property and equipment | (39,026) | (26,732) | |||||||||||||||||||||||||||
| Other investing activities | (8,000) | (7,443) | |||||||||||||||||||||||||||
| Net cash used in investing activities | (179,481) | (142,521) | |||||||||||||||||||||||||||
| Cash flows from financing activities: | |||||||||||||||||||||||||||||
| Repurchase of common stock | (162,068) | — | |||||||||||||||||||||||||||
| Proceeds from exercises of options awards | 32,820 | — | |||||||||||||||||||||||||||
| TRA payment | (19,381) | (27,427) | |||||||||||||||||||||||||||
| Payment of acquisition deferred purchase price | (16,141) | (14,013) | |||||||||||||||||||||||||||
| Distribution to former non-controlling interest holder | — | (3,010) | |||||||||||||||||||||||||||
| Payment of revolver issuance costs | — | (1,993) | |||||||||||||||||||||||||||
| Net cash used in financing activities | (164,770) | (46,443) | |||||||||||||||||||||||||||
| Net (decrease) increase in cash and cash equivalents | (65,090) | 79,239 | |||||||||||||||||||||||||||
| Cash and cash equivalents beginning of period | 1,094,976 | 766,103 | |||||||||||||||||||||||||||
| Cash and cash equivalents end of period | $ | 1,029,886 | $ | 845,342 | |||||||||||||||||||||||||
| Six-month periods ended | |||||||||||
| Adjusted free cash flow | October 2, 2026 | September 26, 2025 | |||||||||
| Net cash provided by operating activities | $ | 279,161 | $ | 268,203 | |||||||
| Purchases of property and equipment | (39,026) | (26,732) | |||||||||
| Adjusted free cash flow | $ | 240,135 | $ | 241,471 | |||||||
Schedule IV
Nextpower Inc.
Reconciliation of GAAP to Non-GAAP financial measures
(In thousands, except percentages and per share data)
| Three-month periods ended | |||||||||||||||||||||||||||||||||||
| October 2, 2026 | July 3, 2026 | September 26, 2025 | |||||||||||||||||||||||||||||||||
| GAAP gross profit & margin | $ | 345,316 | 31.1% | $ | 335,853 | 35.9% | $ | 292,860 | 32.4% | ||||||||||||||||||||||||||
| Stock-based compensation expense | 5,602 | 4,445 | 5,077 | ||||||||||||||||||||||||||||||||
| Intangible amortization | 4,513 | 1,985 | 1,649 | ||||||||||||||||||||||||||||||||
| Adjusted gross profit & margin | $ | 355,431 | 32.0% | $ | 342,283 | 36.6% | $ | 299,586 | 33.1% | ||||||||||||||||||||||||||
| GAAP operating income & margin | $ | 207,546 | 18.7% | $ | 190,907 | 20.4% | $ | 181,345 | 20.0% | ||||||||||||||||||||||||||
| Stock-based compensation expense | 29,936 | 29,638 | 31,653 | ||||||||||||||||||||||||||||||||
Intangible amortization | 8,958 | 3,375 | 2,918 | ||||||||||||||||||||||||||||||||
Acquisition related costs | 206 | 4,148 | 2,577 | ||||||||||||||||||||||||||||||||
| Adjusted operating income & margin | $ | 246,646 | 22.2% | $ | 228,068 | 24.4% | $ | 218,493 | 24.1% | ||||||||||||||||||||||||||
| GAAP net income & margin | $ | 165,453 | 14.9% | $ | 165,355 | 17.7% | $ | 146,861 | 16.2% | ||||||||||||||||||||||||||
| Stock-based compensation expense | 29,936 | 29,638 | 31,653 | ||||||||||||||||||||||||||||||||
| Intangible amortization | 8,958 | 3,375 | 2,918 | ||||||||||||||||||||||||||||||||
Adjustment for taxes | (2,601) | (16,254) | (3,420) | ||||||||||||||||||||||||||||||||
| Acquisition related costs | 206 | 4,148 | 2,577 | ||||||||||||||||||||||||||||||||
| Adjusted net income & margin | $ | 201,952 | 18.2% | $ | 186,262 | 19.9% | $ | 180,589 | 19.9% | ||||||||||||||||||||||||||
| GAAP net income & margin | $ | 165,453 | 14.9% | $ | 165,355 | 17.7% | $ | 146,861 | 16.2% | ||||||||||||||||||||||||||
Interest, net | (9,612) | (9,159) | (5,911) | ||||||||||||||||||||||||||||||||
Debt extinguishment cost | — | — | 5,121 | ||||||||||||||||||||||||||||||||
| Provision for income taxes | 49,619 | 33,570 | 35,864 | ||||||||||||||||||||||||||||||||
| Depreciation expense | 5,965 | 5,391 | 4,443 | ||||||||||||||||||||||||||||||||
| Intangible amortization | 8,958 | 3,375 | 2,918 | ||||||||||||||||||||||||||||||||
| Stock-based compensation expense | 29,936 | 29,638 | 31,653 | ||||||||||||||||||||||||||||||||
| Acquisition related costs | 206 | 4,148 | 2,577 | ||||||||||||||||||||||||||||||||
Other | (819) | 235 | — | ||||||||||||||||||||||||||||||||
| Adjusted EBITDA & margin | $ | 249,706 | 22.5% | $ | 232,553 | 24.9% | $ | 223,526 | 24.7% | ||||||||||||||||||||||||||
| Diluted earnings per share | |||||||||||||||||||||||||||||||||||
| GAAP diluted earnings per share | $ | 1.08 | $ | 1.07 | $ | 0.97 | |||||||||||||||||||||||||||||
| Earnings per share attributable to Non-GAAP adjustments | 0.23 | 0.13 | 0.22 | ||||||||||||||||||||||||||||||||
| Adjusted diluted earnings per share | $ | 1.31 | $ | 1.20 | $ | 1.19 | |||||||||||||||||||||||||||||
| Diluted shares used in computing per share amounts | 153,909 | 155,142 | 152,018 | ||||||||||||||||||||||||||||||||
Nextpower Inc.
Reconciliation of GAAP to Non-GAAP financial measures (continued)
(In thousands, except percentages and per share data)
| Six-month periods ended | |||||||||||||||||||||||
| October 2, 2026 | September 26, 2025 | ||||||||||||||||||||||
| GAAP gross profit & margin | $ | 681,169 | 33.3% | $ | 574,586 | 32.5% | |||||||||||||||||
Stock-based compensation expense | 10,047 | 7,315 | |||||||||||||||||||||
Intangible amortization | 6,498 | 2,808 | |||||||||||||||||||||
| Adjusted gross profit & margin | $ | 697,714 | 34.1% | $ | 584,709 | 33.0% | |||||||||||||||||
| GAAP operating income & margin | $ | 398,453 | 19.5% | $ | 367,575 | 20.8% | |||||||||||||||||
Stock-based compensation expense | 59,574 | 53,963 | |||||||||||||||||||||
Intangible amortization | 12,333 | 4,977 | |||||||||||||||||||||
Acquisition related costs | 4,354 | 3,656 | |||||||||||||||||||||
| Adjusted operating income & margin | $ | 474,714 | 23.2% | $ | 430,171 | 24.3% | |||||||||||||||||
| GAAP net income & margin | $ | 330,808 | 16.2% | $ | 304,044 | 17.2% | |||||||||||||||||
Stock-based compensation expense | 59,574 | 53,963 | |||||||||||||||||||||
Intangible amortization | 12,333 | 4,977 | |||||||||||||||||||||
Adjustment for taxes | (18,855) | (10,549) | |||||||||||||||||||||
Acquisition related costs | 4,354 | 3,656 | |||||||||||||||||||||
| Adjusted net income & margin | $ | 388,214 | 19.0% | $ | 356,091 | 20.1% | |||||||||||||||||
| GAAP net income & margin | $ | 330,808 | 16.2% | $ | 304,044 | 17.2% | |||||||||||||||||
Interest, net | (18,771) | (11,282) | |||||||||||||||||||||
Debt extinguishment cost | — | 5,121 | |||||||||||||||||||||
| Provision for income taxes | 83,189 | 69,648 | |||||||||||||||||||||
| Depreciation expense | 11,356 | 8,173 | |||||||||||||||||||||
| Intangible amortization | 12,333 | 4,977 | |||||||||||||||||||||
| Stock-based compensation expense | 59,574 | 53,963 | |||||||||||||||||||||
Acquisition related costs | 4,354 | 3,656 | |||||||||||||||||||||
Other | (584) | — | |||||||||||||||||||||
Adjusted EBITDA & margin | $ | 482,259 | 23.6% | $ | 438,300 | 24.8% | |||||||||||||||||
| Diluted earnings per share | |||||||||||||||||||||||
| GAAP diluted earnings per share | $ | 2.14 | $ | 2.01 | |||||||||||||||||||
| Earnings per share attributable to Non-GAAP adjustments | 0.37 | 0.35 | |||||||||||||||||||||
| Adjusted diluted earnings per share | $ | 2.51 | $ | 2.36 | |||||||||||||||||||
| Diluted shares used in computing per share amounts | 154,520 | 151,110 | |||||||||||||||||||||
See the accompanying notes on Schedule V attached to this press release
Schedule V
Nextpower Inc.
Notes
To supplement Nextpower’s unaudited selected financial data presented consistent with U.S. Generally Accepted Accounting Principles (“GAAP”), the Company discloses certain non-GAAP financial measures that exclude certain charges and gains, including adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”), adjusted EBITDA margin, adjusted gross profit, adjusted gross margin, adjusted operating income, adjusted operating margin, adjusted net income, adjusted net income margin, adjusted diluted earnings per share, and adjusted free cash flow. These supplemental measures exclude certain legal and other charges, stock-based compensation expense and intangible amortization, other discrete events as applicable and the related tax effects. These non-GAAP measures are not in accordance with or an alternative for GAAP and may be different from non-GAAP measures used by other companies. We believe that these non-GAAP measures have limitations in that they do not reflect all the amounts associated with Nextpower’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Nextpower’s results of operations in conjunction with the corresponding GAAP measures. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP measures. We compensate for the limitations of non-GAAP financial measures by relying upon GAAP results to gain a complete picture of the Company’s performance.
In calculating non-GAAP financial measures, we exclude certain items to facilitate a review of the comparability of the Company’s operating performance on a period-to-period basis because such items are not, in our view, related to the Company’s ongoing operational performance. We use non-GAAP measures to evaluate the operating performance of our business, for comparison with forecasts and strategic plans, for calculating return on investment, and for benchmarking performance externally against competitors. In addition, management’s incentive compensation is determined using certain non-GAAP measures. Since we find these measures to be useful, we believe that investors benefit from seeing results “through the eyes” of management in addition to seeing GAAP results. We believe that these non-GAAP measures, when read in conjunction with the Company’s GAAP financials, provide useful information to investors by offering:
•the ability to make more meaningful period-to-period comparisons of the Company’s ongoing operating results;
•the ability to better identify trends in the Company’s underlying business and perform related trend analysis;
•a better understanding of how management plans and measures the Company’s underlying business; and
•an easier way to compare the Company’s operating results against analyst financial models and operating results of competitors that supplement their GAAP results with non-GAAP financial measures.
The following are explanations of each of the adjustments that we incorporate into non-GAAP measures, as well as the reasons for excluding each of these individual items in the reconciliations of these non-GAAP financial measures:
Stock-based compensation expense consists of non-cash charges for the estimated fair value of unvested restricted share unit and stock option awards granted to employees. The Company believes that the exclusion of these charges provides for more accurate comparisons of its operating results to peer companies due to the varying available valuation methodologies, subjective assumptions, and the variety of award types. In addition, the Company believes it is useful to investors to understand the specific impact stock-based compensation expense has on its operating results.
Intangible amortization consists primarily of non-cash charges that can be impacted by, among other things, the timing and magnitude of acquisitions. The Company considers its operating results without these charges when evaluating its ongoing performance and forecasting its earnings trends, and therefore excludes such charges when presenting non-GAAP financial measures. The Company believes that the assessment of its operations excluding these costs is relevant to its assessment of internal operations and comparisons to the performance of its competitors.
Acquisition costs consist primarily of nonrecurring transaction costs, including integration and diligence activities.
Adjustment for taxes relates to the tax effects of the various adjustments that we incorporate into non-GAAP measures to provide a more meaningful measure on non-GAAP net income and certain adjustments related to non-recurring settlements of tax contingencies or other non-recurring tax charges, when applicable.
Debt extinguishment cost consists of nonrecurring costs for the termination of our prior credit agreement related to the revolver credit facilities originally entered into on February 13, 2023.
Other includes an immaterial amount of non-cash equity in loss for the Nextpower Arabia joint venture which is accounted for under the equity method investment accounting.