SunPower SPWR Q3'25 Financials Reveal Key Audit Adjustment and Investor Implications

SunPower Inc. (Nasdaq: SPWR), the North America-based residential solar service leader, has officially released its Q3’25 10Q filing with the SEC as of December 19, 2025. The disclosure brings an important accounting adjustment to light that reshapes the company’s reported operational performance for the quarter.

Reserve Adjustment and Its Financial Impact

The most significant change between the preliminary draft submitted to auditors on November 5 and the final SEC filing centers on a $1.1 million increase to bad-debt reserves. This adjustment raised total reserves from $7.1 million to $8.2 million—a substantial addition when measured against the company’s typical quarterly reserve drawdown of approximately $0.45 million.

The magnitude of this reserve increase directly impacted SPWR’s reported earnings. The company’s non-GAAP Q3’25 operating income was adjusted downward from an initially calculated $3.123 million to $2.023 million, effectively removing the “record quarter” designation that had been preliminary communicated to market participants.

Resolving Legacy Receivables Portfolio

The extended timeline for completing the audit reflected a deliberate strategic decision by SunPower and its accounting team. Rather than carry forward unresolved accounts receivable from the legacy operations, both parties committed to systematically addressing aged AR balances from 40 residential builder partnerships.

This remediation effort involved line-by-line invoice recreation and direct engagement with each counterparty. Of the 40 homebuilders involved, 38 are now actively remitting payments, demonstrating successful collection outcomes. SunPower management maintains elevated confidence in the collectability of the remaining positions, given the company’s continued ownership of installed solar systems—providing an operational lever to modify system access if necessary.

Investor Confidence and Transparency Framework

SunPower’s leadership emphasized that the reserve adequacy position remains robust relative to business operations. The company’s 41-year track record of investor transparency and disclosure discipline has historically supported over $4 billion in capital raises, including $150 million raised through five convertible debenture offerings that proved instrumental during a critical period for SPWR.

Company Overview

SunPower Inc. (Nasdaq: SPWR) operates as a leading residential solar services provider across North America, leveraging digital platforms and installation capabilities to serve customers transitioning toward enhanced energy efficiency. Additional information is available at www.sunpower.com.

Forward Looking Statements: This disclosure contains forward-looking statements subject to material risks and uncertainties. Actual results may differ significantly from projections. Investors should review risk factor disclosures in SPWR’s Form 10-K filing dated August 13, 2025, and subsequent quarterly filings with the SEC for comprehensive risk analysis.

Contact: Jeanne Nguyen, CFO; Sioban Hickie, VP Investor Relations; (801) 477-5847; IR@sunpower.com