My name is Siobhan Hickey, SunPower's VP of IR, and I would like to welcome everyone to the first quarter 2026 earnings call. I will review a few housekeeping items before turning the call over to our CEO, Dr. TJ Rogers. All lines have been placed on mute at this time. This call is being recorded and a replay will be available within the events section of SunPower's website. Please note that today's presentation may contain projections and other forward-looking statements. These statements are subject to known and unknown risks and uncertainties that may cause actual results to differ from those expressed or implied in our statements. Also on today's call, we may discuss certain non-GAAP financial measures. A reconciliation of any differences between those non-GAAP financial measures and the most directly comparable GAAP financial measures are available within our press release. Lastly, we will be holding a question and answer session after the end of formal remarks today. For those watching via the webcast, you may submit a written question at any time via the submission box located on the right-hand side of your screen. For those joining our live Q&A, please click the raise hand icon located at the bottom of your screen to enter the queue. With that, I will turn the call over to T.J. Rogers, SunPower's Chairman and CEO.
Good morning. We've got the Q126 results to show you this morning and answer questions. First, top lines, Q126 revenue is $72.8 million. That was down 9% from our guidance. Our latest guidance is $80 million, so the market closed softer than we thought it would. Not catastrophic, 9 percent now in quarter on quarter is not bad, but it was weaker than we expected. This revenue alone would have impacted our operating income for $1.8 million, but our non-GAAP operating income was minus $12.9 million. And that is a one-time event because we added $9.9 million in spending during the quarter. We had anticipated and still do anticipate a great Q3. And we started hiring 86 people last quarter. Now, we turned it around. You've gone from plus 86 to minus 115. Our cash was flat. We raised $40 million, $41 million during the quarter. We used all of it to pay off debt except to keep working cash at around $10 million. Since that time, and this means since the beginning of May, we've cut our costs $9.9 million a quarter. That included drift employees, $115. We went from 86 hires to 115 rifts. We installed an across-the-board four-day work week through September. The theory on a four-day weekend comes from my prior life in semiconductors. It's extremely difficult to build up a good workforce, and the last thing you want to do in a yo-yo economy is lose your good people. So, instead of having, we did have a layoff. This was focused on overhead and redundancy among our four startups. But in the sales and fulfillment area and in the install area, we went to a four-day work week. What that means is you work four days a week, you get paid for four days a week. Another way to look at that is a 25, excuse me, a 20% pay cut. But when you come out of it, you start working another day, the people you've got remain in place, and you have less of a arduous climb back. So that was the theory on the four-day work week. We've cut our inside sales group. We had a large call center. We've cut it down to those needed to maintain our pipeline there. Because I used the word paradoxically, call center sales have a lower profit margin and worse cash flow profile. Then our conventional sales force, which is now grown to 1,552 members, and that represents 90 percent of our revenue. The inside sales group was using a lot of purchase leads from the market, and we wanted to get rid of that expense. We will continue this function at a reduced scale with the top producers. We reduced our finance admin costs, which had ballooned not for any bad reason, but basically we went through an audit. It was arduous, very arduous, and we just allowed anybody to be hired, either contract or employee that we needed without restriction. Now, we brought that back down. Seeing this graph pretty much all the time, it's my proxy, it's actually the way I run the company. It's a metric I can understand and people can understand. We actually run it on dollars but I reported on headcount. If you go back to pre-merger, there were 3,500 Sun Power and Complete Solar people. We picked 1,280 of them to start the company. A year ago, Q4 was our first quarter, and then we successively dropped that target over time. We have been in a period where the target's been 820, which is very lean, and we bounce up and down around 820 as we acquire companies who will bring in 100 people, over 100 people from Ambia, for example, and then that pops us up and then we work it back down with center fee. Now, just this quarter, we've dropped our target to 700. We think that's doable and we're currently at 710. Okay. I wanted to talk about that before I went into the 2026 forecast. The cuts reduce our operating expense by 9.9 million a quarter. They were too late to make Q126 better, hence the minus $12 million loss. But they will be in effect for 60 percent of the second quarter. They will have a significant positive impact in the second quarter. The current Q226 revenue estimate is 75 million. It's up 3 million from last quarter, but still anemic and the market is still anemic. but we are starting with our acquisitions, starting to be able to bounce off the bottom. The operating loss will be reduced to $3 million based on the cuts that I talked about earlier. So, we're going to have a reasonable quarter, not a loss this quarter. Finally, I really forecast ahead more than one quarter. But in Q3, we believe we're going to beat $96 million. I'll explain that in a little while. And at $96 million in that quarter, we will be profitable and cash flow positive. So, we're going through a weak but mildly weak quarter on our way to a plan we've had all year. That plan is shown here. This particular version of the plan is one we used to raise money. We raised $41 million during the – we raised $41 million in the last quarter. Here you see revenue all the way through for three years. Guidance, meaning that's what I'm telling you and I'm planning on achieving and expect to be criticized if I don't need it. Guidance, and then out here is a model. Our mission statement is to have billion dollars in revenue and that run rate will be achieved in Q3 of 28, so that's still on target. We're still talking about a big jump in revenue in 26 and you can see that this is a non-trivial gap here. As we've shown and put on the website, it is because our acquisitions, Ambia, Slender, Cobalt, and the recovery of new homes from the bankruptcy, they're all kicking in. And that's what we expect to give us a big jump in revenue in 2026. I put two more lines in here to show you where we are. we've done careful calculations, the current break-even revenue, op-inc break-even revenue, $76 million and our current cash flow on break-even revenue is $96 million. So, this 20 extra million times the various yields going through the P&L is what's required to pay for the debt that we've got. And we still are anticipating big growth in Q3. I'll let Dan McCraney's here. He's running sales and marketing for us right now on a daily basis. I'll let him talk about that later. As a matter of fact, I'll let him talk about it now.
Hey, thanks, TJ. Can I get the graph up, please? Thanks. this uh this graph is total bookings beginning in q4 24 going on through q1 of 26 just a brief word of what this definition of bookings is this is just not assigned a home improvement contract from a customer this is actually a signed contract plus the completion of the design plus funding approval so it's a robust high yielding bookings that's what we use for our forecast methodology You can see in Q4-24 all the way through Q3-25, the numbers were hovering around 1,500 to 2,500 jobs a quarter. You see a step function increase in Q4-2025. Remember, we booked, we acquired all three of our major acquisitions, Sunder, Ambia, and Cobalt, in Q4-2025. Beginning in the second half of 24, we started seeing the results of their bookings. As you can see, over 4,000 jobs were created in Q4 25. In Q1 26, we had a record of 4,446 jobs. Now, remember, there's about a three-month lag between a booking and revenue in this particular industry. So what we're booking for in Q2 now, is beginning now, is for the first stages of our Q3 revenue plan. TJ showed you that we have a very robust Q3 number. It's a step function up from about $75 million to $130 million. TJ told you we're guaranteeing at least 96 and above that. We are currently on track in Q2 with the bookings we've got so far across all departments. meet that $130 million number. We're happy with the way the bookings are going. It's predominantly the thunder and ambient turn-on that's occurring particularly in the springtime when the contracts get much larger compared to the winter. So going forward in Q2 26 you're of course you're going to have a record in bookings and we think we're going to have a record in bookings that allow us to do revenue in Q3 well in excess of TJ's $96 million.
And to use two words, guarantee and well in excess of $96 million. I can tell you right now that our lawyer in New York has just had a myocardial infarction and he's laying on the floor. We'll call people to kind of recover him. I want to make one other point here. These jobs, I don't deal with solar backlogs like opening. It's just not firm. You can't tell where you're at. So, we have a definition that the company means you have a signed contract. That is, the guy signed up to begin with. Then you designed this home for him and you showed him the contract, you showed him pictures and went again and he signed up on that. Then you told him the funding was approved, and we've gone through our funders and he was approved. Today, third-party ownership or TPO is the way people fund it, meaning the funder is going to pay for the house and only installation, and this house will be part of a pseudo utility later on for that funder. Okay. This is really good news, and normally I weren't talking about a $12 million loss. I'd be bragging about this and talking about big things in the future, and I still feel that way. Bernard. Oh, Bernard.
What's wrong is what we changed. Boys, I'm sitting here looking at a work from midnight last night on this thing, and there are pages missing. So, I need to take about a two-minute break and bring out a memory stick here, and load a computer with things I forgot, like our new CFO. I put it in my briefcase. I could tell you that I had planned this in advance, but that wouldn't be true. All right. Now, I go to PowerPoint. It's the same. I'll give you the first page right now. Okay. That one I gave you. Convertible note offering, I talked about. Bookings are record, we talked about, we saw the detail. We filed a 10-K and it was a difficult audit. I'm going to talk about that audit and what happened. The audit required restatements, three restatements, three quarters of restatements, and they're going to happen on time, that means within the next week. Here's the P&L. In Q4 25, the last quarter, we did 90 million in revenue with 3 million in profit. But note 4 says, we restated 10Q results consistent with adjustments in the 2025 10K. So, we've got a 10K, that's God's word, that's filed and everything is going to be consistent with it starting today. But I just wanted to point out that I will show you in a minute that These numbers were what we reported before and they were close to being right on. I'll tell you why they weren't. Q1, 72 million, $12 million loss. If you ask why the loss, it's right here, operating expense going up dramatically for the reason I already said, we're getting ready for Q3. Now, we're going to get ready for Q3, but we're going to get ready for Q3 in a shorter period of time. Okay, if I look at the 10K audit, this is called prior quarterly results. So, it's what I told you last year in meetings like this one. So, we were profitable in every quarter, minimally profitable in every quarter, and our op-ink, non-gap op-ink, added up to $10.9 million on $308 million in revenue distributed like this throughout the quarter. After adjustments, post-10-K audit, the total hopping for the quarter dropped to $7.33 million. So, given the changes in the quarters, that was a pretty good result. The revenue for the company dropped to $300. I'll explain that in a minute. There's one error there that caused that. Now, if I look at the quarters, this is the first quarter of the new year after the acquisition, and in the 10-K audit, we uncovered a bunch of stuff and had write-offs. They took a profit from 2.94 million, what I would call cash profit, down to a loss. There was a little bit of bleed over in the Q2, and then Q3 became more profitable. In this case, this is non-GAAP profit, where we have put in actual cash gross margin. The gap numbers have a different gross margin, which is lower than actual cash collected, based on some rules about acquisitions, where you're not allowed to acquire something and then have more than your average gross margin reported for it. So, in this case, the actual cash gross margin was 80%, and that means we made more money on reporting the gap than I reported. Okay, so old, new, and I'll just point out one thing. This is the new source of truth. So when I talk about record profit in the future, it will be because we're above 4.85, not above 3.5. When I talk about record revenue, it will be because we're above $91 million. I wanted to show the comparison to show you that we played it straight for the entire year and I wanted to, and actually if you want to ask which is the more believable scenario from a businessman's point of view, the answer is this one right here. This includes a lot of put this in that quarter, put that in that quarter, this is on your books, we've got to clean it up. We actually took the record quarter we ever had and it got bigger. So, it is what it is. This is news source of truth in my, this is our base. The good thing about it is for this amount of revenue and this amount of profit, I know I fully audited quarterly results or I will have in a few days when we submit the restated report. and we go forward with a clean set of books and a better accounting capability than we had. I want to talk about the audit for a minute. The standard auditing method is to sample line items from our books. You have to sample because there are too many line items to actually look at every one. Then, the auditors asked us to supply independent third-party documentation that validates the books. And what does that mean? For a given order, for example, revenue, they want the home improvement contract. They want the work orders that showed we sent people to their house. They want the drawings for the system that shows we designed it. They want the invoices for the panels that we bought and other things, everything we bought to work on the house. They want the work logs, what crew went to what house when. They want the customer invoices, we billed them, here's the bill. These are all hard proof points. They want proof of payment, they really did pay you. And then that means bank accounts showing money went into the bank, it's a cash flow kind of thing. And then they want proof of activation. The system you build actually is running as we speak, and that involves typically getting the utility bill and showing them that there's been a change in the bill based on the solar. So, it is an arduous task, the audit, the 10K audit. There's only one audit a year that matters is 10K, and that's the entire year. Then the quarters are unaudited till the end, and that's when you have the final statement. Okay, how big is all this? There are nine steps in our solar installation process that lead to revenue. For auditors required proof with hard third-party evidence on each of the nine steps, on each of our 11,500 jobs in 2025. You multiply those numbers, you get over 100,000 line items. That means you have to sample. And in the sampling process, they go in, grab some, make you go through all of this stuff for it, improve it, and document it. And the sampling in this year required 300, it led to 390 formal requests. 390 times our auditors said, we need this or we need that. And by the way, I'm not making an excuse here. our county isn't where it ought to be I'll tell you in a minute the head accounting guys now TJ Rogers he's not used to this kind of accounting and will be better in the future like right now being the future our prior quarter reports that I just showed you showed well versus the 10k the truth the source of truth for full-year revenue. The 10K audited number for 2025 revenue is 300 million versus what we stated as 308. When we went back to find out what happened, the extra 8 million in revenue in the prior quarterly reports came from double booking a legacy company, Blue Raven, which doesn't exist anymore, from a defunct computing system, Albatross, which doesn't exist anymore. and somebody way back when we're talking now probably Q4 prior year books jobs twice and they came into our books and we didn't start we didn't start selling the things we acquired from SunPower until mid-year and then we didn't really start looking through what we inherited until the end of the year for the 10-K audit, which by the way, I don't consider to be annoying, so I consider it to be something that gives credibility to the company. That's why we're working hard on it, and I'll show you what we've done. Okay. On the income side, operating income, and I always use operating income rather than EBITDA, which I don't like. Our prior statement was 10.9 million. The new number was 7.3 million. The difference that was due primarily to pre-acquisition balance sheet assets as I told you, and using actual gross margin instead of a calculated gross margin. However, I'll show you this. I'll show you. Nice to have you memorize this thing. These are the quarters that came from these quarters. this is the yearly total, and it's really the only part of the 10K. These things exist only because of the requirement to do a restated 10Q. These differences are vague. Obviously, it went from a profit to a loss of a quarter, and that's when the auditors said we have to restate, and we're doing that. We've actually already done it. We already have agreement on the numbers. There's a filing coming up this week, early next week. Okay. So, revenue did well. The extra revenue came from a double booking in an old system. The operating income, I showed a difference, but really the quarters being so different, trigger the requirement to restate in Q125 through Q325. I stand for financial integrity. I go, and this is an accounting term, apeshit, when I don't see numbers that are perfectly right and believable. I've always been that way. And this is the first, and I've been doing this stuff for 40 years. This is the first time I've ever had a restatement. Then all of a sudden, I had this horrible thought. When you lived in semiconductor nirvana, did you really never have a restatement? Or did your finance guys who let you work on Moore's Law and transistors, and they took care of finances, did your finance guys have a restatement here or there that you didn't know about? When you're bragging about I've never had a restatement in my career, is it really true? So, I went on AI, is Cypress Semiconductor ever restate a quarter? And let me start over here. I did it four times. I've shown two of the four. I changed the question because the answers changed, and I wanted to get a good look at it. Based on available search results, there is no direct indication of Cypress Semiconductor ever formally restated a quarterly report. The provided information shows during this time as an independent publicly traded company, it warned of misses. The company often warned of upcoming quarterly shortfalls due to changing market. Lowered guidance. They lowered earnings and revenue targets, such as September of 2004. They adjusted results. They reported gap versus non-gap results in 2016 and 2017 to account for acquisition-related costs. However, the search results do not contain reports of accounting errors, fraud, or formal financial restatements. I read this one second because it's got a little kudo for me in there. And it says, the company, particularly under longtime CEO T.J. Rogers, was known for a strong, no-nonsense approach to financial reporting. Okay. So, what has changed? I will not tolerate not having perfect finances, period. Period. No question. no debate no no meetings so we've changed now this first statement we have received and accepted the resignation of CFO I am NOT blaming this on our CFO it's my fault TJ Rogers fault that's simple I run the company and if it's not perfect it's my fault but our CFO we're changing CFOs basically it's a mutual agreement to part waste, and we've also agreed not to swing any mud at all in either direction. I have been appointed by the Board of Directors to SunPAR's Principal Financial Officer. That's what you get called if you aren't really an accountant, but you run the finances. For approximately a month, we're in the process of closing a new CFO, and I'll be the Principal financial officer for a month and I can guarantee you I go to two meetings a day in finances and although I'm not an accountant I can read stuff and I can understand what's right and what's wrong based on all my experience the board has appointed Bernard Gutmann eight years the CFO of the 42 billion dollar chip company on semiconductor to the board and to serve on our audit committee so We've made changes on our board to bolster our board. I want to introduce Bernard right now. He signed up last week and he was at his first board meeting last week. Let me tell a story about Bernard. Look, are you showing his picture now? All right. You guys should be able to see Bernard now. I met Bernard. We're at Enovix right now. That's my free TV studio, so I don't have to do something at Sunpar. And Bernard is on the Enovix board, the battery company. And I've noted, I sit right across from him in the board meetings, he's extraordinarily meticulous. Walks out, unlike me, he's got almost perfect handwriting, and he walks out with three pages of single line item notes every time. We've had zero problems at Enovix. So, I have now two validations, my old company and Enovix that the ship can get run right, and you shouldn't have things like restatements. It's just not okay. Okay. So, I know Bernard. How do I know him? I invested in, my SPAC invested in, you know, we took them public. And on my SPAC board was a guy named Manny Hernandez, who was my CFO. He created CFO heaven for me while I was running a chip company, and I got to work on Moore's Law, and he had no restatements for 30 years. And he wanted to retire, truly, a lot of grandkids, all that stuff. So we said, you can't do it. And he said, I've got a guy that's as good as me. Matter of fact, I trained him. So I met Bernard, and he was absolutely right. So these are the two best CFO guys I've ever met. And with that little anecdote, I'd like to introduce Bernard, have him tell you a little bit about himself and what he saw at the first board meeting, if he's up for it.
Thank you, DJ, for these kind words. I'm very excited to join the SunPower board as EJ mentioned I had an opportunity last Friday to review and attend as an observer the board meeting and it was quite exciting it is definitely with the issues that EJ talked about from the finance point of view a little bit of a challenge in the short short run, but I'm up for that challenge. It makes it even more exciting. I think we can set up the right processes and controls in place so that this doesn't reoccur. From the business point of view, and again, I will be careful not to get the lawyers another attack, but what I saw was quite exciting with the successive amount of acquisitions that have been done the pipeline seems to be quite exciting and Dan talked about it with the more than 4,000 bookings that are predicting some pretty good stuff to go in the future go beyond just the break even but into to the moving towards the $1 billion opportunity that TJ talked about. So that by itself, business-wise, is quite exciting. Quickly from my background, I'm an industrial engineer by degree. However, I have worked more than close to 40 years primarily in finance. I worked at Motorola and on semiconductor in all kinds of roles, starting from the bottom as a financial analyst in a semiconductor factory in Guadalajara, Mexico, growing all the way up to becoming the CFO for the last eight years of my career in this pretty heavy manufacturing environment to all kinds of activities, including debt financing, including audits, including operational stuff so my background is quite adept for helping T.J. and the board in this in this upcoming challenge. So I'm ready for it. Thank you T.J.
I will give away one little secret when Bernard accepted. He said, it's a really interesting company, but the pay sucks. So Bernard is like me. He's doing something that's interesting to him. Okay. What has changed? The SunPower team responsible for implementing Sarbanes-Oxley accounting procedures, If we had that in place right now, we wouldn't be talking about this topic. Now reports, we've changed the line of command through the quality vice president, Surrender Betty, directly to the chairman of our audit committee. So, the people who had been sucked into the hubbub of the audit, working on stocks, are going back to work on stocks only. The chairman of our audit committee is Ron Pasek. He's the only other former CFO on the board. And he and I were overwhelmed when the audit came in with so many adjustments required. Both of us were quite surprised. I always brag about having eight former CEOs on the board. We have an extraordinarily good board. Right now, I wish I had four CEOs and four CFOs, but we made a big step forward here. All SunPower responses to audit questions. So, the 390 are now formal documents as opposed to telephone calls between us and the auditors, formal documents that are pre-reviewed by the quality department. They have a spec for when you respond to an auditor, what that response needs to contain. And if you don't follow it, they reject your response and it doesn't go to the auditor. They understand they can't be slow. So, they typically deliver to our auditors in less than an audited document, our own internal audit, two hours after the request. We never would have made it through on the audit in time if we hadn't turned on this process, and that's the way we're going to work forever. We bolstered our finance team. We needed to do more with people from operations and quality. I'm talking about 10-ish from either, both groups. Because the finance guys, the reason I'm not casting aspersion on any of them, were getting questions that were beyond the scope. I mean, a very common result in solar is the guy owes you money. You call him up, he doesn't answer. You call him up, he doesn't answer. You call him up, he doesn't answer. Then you find out he doesn't live there anymore. Then his financing expires, so you can't get the last payment. Then you have to get permission from the new owners to get in the house if there's something wrong. You've got to work on it. All you have to do is have something like 500 to 1,000 jobs like that pile up, which they easily can over the period of a couple of years. That is the quality poison that I see as more responsible for the malaise in the solar industry than anything else and this way we're putting together a team to respond to those questions and preempt them in the future creating processes such that nothing happens that isn't pre audited in our own company okay then I gave you this one and this one and this one so we've done our cuts there'll be two thirds effective this quarter. This quarter will still be weak but better than last quarter and the losses will be contained a lot better. I validated again the model we used and it's on our couple websites and said we are going to make this jump is real. One of the reasons you've been hearing about Sunder for a while, I just make this one point. Sunder is a sales company. Sunder manages 1,500 reps with 100 or so internal people and their product is a signed contract, one of those contracts with all the parts that I said earlier. They therefore sold their product and it's gone. There is no pipeline inside Sunder is really the point. So, when you buy them you buy a machine that creates orders and you don't start collecting orders in your own pipeline until after they're signed up and that's why it's taken a while to fill up the pipeline same is true for new homes we've got a lot of orders for new homes but that pipeline was dumped actually before we took over took over some power assets that that pipeline was already down to because the builders the corporations they moved on and they were gone and we refill that pipeline and then I pointed out you can write these numbers down and do incremental calculations on them when we get profitable and when we get positive profitable and positive cash flow. Dan talked about the business. Now I'm ready for questions. I apologize for the mix-up. I'm sitting here thinking how could that possibly happen? The answer is we nail a few of my slides in not the final slides I worked on last night email here and those slides we used to bring up the protection system and everything they weren't intended to be the report that's what I ended up showing you apologies for that questions thank you our first question today comes from Derek Soderbergh at cannabis Gerald Derek you may go ahead yeah good morning everyone and TJ I appreciate all the detail you provided on the business here.
I want to start with the record bookings number. Specifically, what's the average revenue per job in the current mix and what sort of assumed, well, what's the assumed conversion timeline from booking to recognized revenue? And then I've got a follow-up.
The average selling price right now is about $32,000 per installation. Just as an aside, that's going up as more and more of the installations have battery attached. Battery attached is big as you know in California where it's almost 100% battery attached, and we're getting very strong in California, and about 45% in Texas. So ASP is $32,000 in climbing through the year. The next question involved, I think, the cycle time associated, time between a FTC or a hard order and revenue. Is that a question? Yeah, the median right now on that is right around two months, two-plus months. It ranges anywhere from a low of about 35 days to a high of about 115 days, depending upon the complexity of the roof install. So we use as a general rule of thumb about 90 days. So if you see our bookings pop in Q2, just track about one quarter forward, and you should see the grand bulk of that revenue.
And then the corollary of that is in the fourth quarter, when things start to slow down, you've got a bunch of bookings, and that 90-day's worth of bookings comes from Q3 to Q4. Then you hit January, and we're still promising to come out of the January, February, March release, and we can see it.
Got it. That's helpful. And then, TJ, we're seeing some other solar companies over the past six months or so, specifically a big residential installer filing Chapter 11. Can you talk about that dynamic a bit, what you're seeing out there, and are you guys benefiting yet from survivorship?
Benefiting from survivorship, okay. So, yes, we're seeing bankruptcies, the big surprise and it's public with freedom forever. They're bigger than us. So, therefore, they should be more robust than us in terms of hard times. We've benefited from getting some of their salespeople, not a lot. We've already acquired three other sales forces. to bring us up to over 1,500. I don't want to say the other area where we acquired, because I don't want the other guys to know about that. But we've gotten, we're not hiring right now. So, when we hire five or six people in a key area, that means five or six people elsewhere, typically in administrative function, go away because we got a 700-person limit in the company. What's bad is, you'd like to say we are benefiting from the malaise in the industry right now. What's bad is, we had to lay off some people and not good. Screws up morale, gives you a reset. Also, your sales force for 1099s and what that means is they run independent companies that you don't control, They don't work for you, and they can disappear whenever they want, and they often disappear anonymously, and you find out later when nobody's answering the phone why. So it creates unrest in Salesforce, and we're working on that right now. A lot of our salespeople are new, and they're coming in, man, I thought I escaped some cars bragging about record this, record that, and I thought I escaped and now I'm watching and there were some minor things on the Internet, minor. Some part stopped buying leads, stopped buying leads. Yeah, right, because the group that used them, we cut way back because that group wasn't effective as our main sales force. But some parts stop buying leads, and, of course, that's interpreted as imminent bankruptcy, and it feeds the frenzy. Solar industry is one of the rumors, almost always unfounded. It's rare to hear the truth on the street in solar industry. So I hate that worse than I like the benefit of being able to pick and choose good people that we can wire down.
But picking and choosing has gotten us some top talent. That's why I think you're going to see extremely strong Q2 bookies.
Thank you, Derek. Our next question today comes from Gus Richard from Northland Capital Markets. Please go ahead.
Yes, thanks for taking my questions. I'm just curious on the bookings in the quarter. I'm assuming those are all installs. How many of those were, you know, converted from Sundar sales?
Make sure you understand your question, Gus. Are you asking how many of those bookings?
So the first question is, I guess the first part is, those bookings are installs, correct? And then of those installs, you know, some of them I'm assuming came from Sundar sales. Correct. And I was just curious how many of the Sundar sales got converted into installs.
Well, the answer is these are the ones being installed. Now, Sunder is difficult to say.
Actually, I prepared a slide. I'll show you the slide. I'll probably regret it later. There it is. Okay. So, this is our 1099 headcount, number of salesmen. This is old SunPower. These guys sold loans, not TPOs, to people in Midwest who wanted a five-year loan to put on solar. And to me, it's pretty simple. The TPO pitch is actually more attractive to an individual. But this group, essentially, three-quarters of them have gone away. Then we picked up Thunder, this one you're talking about, and we still have 713 of the 900 people we had there. We picked up Ambia, that's another 300, and we picked up a company we haven't talked about publicly because we just hired them as PureLight. This is another company that had gotten in trouble and they've got an excellent sales force. So right now, we've got a rejuvenated sales force that specializes in third-party ownership sales and lucky we did. it. So, how many are Sunder? About half. Direct old Sunder, but Eric Nielsen, the head of Sunder, president of Sunder, and now our VP of marketing sales, runs all these groups. They're now mixed together. They've been mixed together for 90 days. So, I only had this graph created so I could look at what we acquired and what it looks like. So, there's your answer, half Sunder, but all Sunder, because the guy that ran Sunder runs sales for all of us, except for New Homes, which has got a different cell to corporate customers, and it's a very small sales group that deals with that.
Got it. And then, obviously, in the news is the war in Iran. New England, for example, uses LNG to produce energy and it's better for the guys who sell on T to sell in Europe and their utility prices have been go up as they are in a lot of places, you know, so how much has the change in the energy landscape, if you will, starting to incentivize consumers?
That's the biggest driving force. You asked all the questions that I put in the appendix to save time. This is solar energy additions to the grid. So, now talking about utility scale solar. There's no oil of any kind up here. We have only natural gases being added today. so first it says here solar and it says solar didn't matter enough even to be a blip on the graph until 2011 and if you look at the graph growth of solar it's been spectacular here's a bad year here's another bad year that lasted for three years for recovered so solar is not immune immune to dislocations battery is the second one. Battery, if you really think about it, there's batteries in the grid where they take some power source and store it in the battery. There's also batteries on a million houses in the United States, and they're the best kind of battery. What they do is they don't add power to the grid. What they do is they reduce the power that house requires. They store the daytime sunlight energy and then let the customer use it at night to avoid the high-priced natural gas, the kilowatt hour fees. So, right now, if you wanted to talk about is this market good, market's great. If you wanted to talk about what does it mean when the price of utilities go up, that's great because our prices are going down, not up. There may be a glitch due to something in the supply chain, but our prices are going down every year and have been. This whole rise here in solar is because we've become truly economically competitive. I don't run around talking green this, green that. I run around talking about you pay me so much a month, and your bill will go down by more than that per month for the rest of your life. What do you think? Okay, and then, by the way, I won't discuss it, but this is Q126 revenue, first plan. This is a positive event we wanted, our second plan, our third plan, and then actuals. So, I only look at this every day, and I got nervous right about there when this second plan got created there we had drifted off just a few percent and we start we started reacting right there and if we hadn't done that we wouldn't be in the shape we are in right now to to react this crisis let me let me leave it there if somebody asks me another question I would love to show you that graph but I'd rather take questions go ahead I'm set thanks thank you us.
We have a couple questions coming in from the web. The first one is with the increased bookings that you've discussed, what is SunPower doing to ramp up installs to meet this incremental demand?
That's a great question. Well, we were in the process of hiring 86 people for our install organization to handle all that business. Then I came in one day and I'm the hot shot from Silicon Valley. I said, wait a minute, don't hire 86 people, lay off 115 people. The market has whipped us around and the four-day work week I discussed was designed to allow the company flexibility. The reason my graph for revenue shows $130 million in Q3, and I've only guided to 96 because that's cash flow positive, and that's sort of a minimum step we have to take, is that we still have to do the rent. And actually, I was driving over here today. I was thinking about next time I'm going to call Spencer Jensen. He runs our ops. and I'm gonna tell Spencer he needs to take his new employee training time from his current four weeks I pay salary for four weeks and don't get anything too like a week and we do that in sales in our sales division we need to get faster so we need to be able to react faster because I'm not going to buy it up front and spend money now on that on that increase comes coming later thank you We have a question, T.J., to you.
Last year in July, you spoke about potentially, you know, looking to wind down and exit as our CEO in about a year, which is coming up. And so the question is, would Dr. Rogers like to revise that timeline and re-insure investors of his continued attention and leadership within some time?
Well, one thing I kind of like is that I was retired. I was on six boards, so I wasn't exactly doing nothing, but I was retired for six months. Now, I'm enjoying being back in the full war mode. So, that's one. Two, I would never leave masks behind and have them say, Rogers you know screwed it up and then took off that won't happen so the bastards aren't going to win we're going to win and I'm going to be there as long as it takes thank you we have looks like one final question regarding battery attachments what effect do they have on the overall profit margin of our of your sales? Batteries are more profitable at solar. Best job is called a grid-tied battery. That's where you don't even back up the house. You think, well, why would you buy a battery and not back up your house? The answer is you buy a battery to collect cheap free energy at noon and then dump it into your system at night if you live in San Diego and they want 40 cents a kilowatt hour for And a grid-tied battery is one thing hanging on your garage wall and then one hookup. It's very, you can do two of them a day. So batteries are sort of an afterburner for us because to that 32,000 bucks, add another 10 for a battery, it's 42.
Thank you very much. That concludes our call for today. Dr. Rogers, do you have any final closing remarks?
Well, yeah, I'm embarrassed by that. It is the last event that basically is tied to the string of misfortune we've had surrounding the 10K. I frankly would like to thank our auditors for, you realize they bulked up from 10 to 17 people just to do. I created the memo machine and started machine gunning them with answers. They bought that from 10 to 17 people and stayed with us until we tied it up. Now I'm going to have three perfect quarters restated by next week, and I've got the year of the 10K done. And going forward, I now know, as you've seen today, the details of how that happened, and it's an interesting problem to manage that. And I started to realize the reason there are so few install companies that are public is being solar and the vagaries of having your stuff spread all over the United States as opposed to in a nice controlled factory. Being solar, the accounting for public company are not incompatible, but it's difficult. And one of the things I'm going to do is make our accounting a weapon that's cheap, efficient, and accurate so we can focus on the other things. I didn't talk about our new products. I didn't talk about our new bi-facial panel. We just put in the boardroom to show the board last week so that our people can focus on that, not on the arrow there.
Thank you very much. That concludes our call. You may now disconnect.
