Shoals Technologies Group Inc (SHLS)
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Shoals Technologies builds the nervous system of large solar farms: the complete wiring between solar module and inverter. The order book is fuller than ever at $758 million, revenue jumped 74.9 percent in the first quarter of 2026 — and still the stock shows up in our warning scanner "Insolvency Radar: Cash Running Out". We read the annual report (10-K) for 2025 and the quarterly report (10-Q) as of March 31, 2026: $1.9 million in cash, $181.8 of the $200 million credit line drawn, a worked-off $73 million warranty drama, a $70 million settlement with its own shareholders — and a tax law that stamps an expiry date on U.S. solar subsidies. Not investment advice — just the look behind the shop window before you step into the store.
Basics
Performance
Valuation
Profitability
Balance Sheet & Safety
Growth
Quality & Screener
AI Rating
–Not yet rated — we only show a category once an SEC-backed file with at least two cited passages is available. How the Rating Is Built
Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.
Quarterly Figures
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q4 | 0.05 | -51.90 | 107 | -18.00 | 7.30 | 14 | 13 |
| 2025: Q1 | 0.00 | -106.00 | 80 | -11.50 | -0.40 | 16 | 12 |
| 2025: Q2 | 0.08 | 19.20 | 111 | 11.70 | 12.50 | -14 | -26 |
| 2025: Q3 | 0.07 | 275.40 | 136 | 32.90 | 8.70 | 19 | 9 |
| 2025: Q4 | 0.05 | 2.20 | 148 | 38.60 | 5.50 | -4 | -11 |
| 2026: Q1 | 0.00 | – | 141 | 74.90 | -0.20 | -41 | -49 |
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Assessment: Opportunities & Risks
Leading specialist for solar EBOS with the patented Big Lead Assembly system and expansion into battery storage and data centers: a $758.0 million order book as of March 31, 2026 (plus 17.5 percent year over year), 78.8 percent of revenue from system solutions, customer deposits of 10 to 20 percent (quarterly report 10-Q).
Revenue plus 74.9 percent in the first quarter of 2026, net income of $33.6 million in 2025 — but the adjusted gross margin fell from 47.0 (2023) to 35.0 percent (2025) and a reported 29.2 percent in Q1 2026, pressed by tariffs and expressly price-driven market-share gains; Piotroski F-Score 2 of 9.
$1.9 million in cash and $15.4 million of available credit line (March 31, 2026) against minus $41.4 million of operating cash flow in the quarter ($69.6 million inventory build-up); the $200 million credit line is 91 percent drawn. No going-concern qualification, the credit line runs until March 2029 — but the buffer is wafer-thin.
The $73 million warranty drama is paid to the tune of $69.7 million (remaining provision $1.6 million), the $70 million shareholder settlement is insured for $64.8 million (final hearing September 2026). Open: the derivative suit, possible further shrinkback cases, no product-warranty insurance — and, as an unbooked opportunity, the Prysmian lawsuit plus the ITC patent win against Voltage.
H.R. 1 ends the solar tax credits for facilities placed in service after 2027 — part of the boom is presumably pulled-forward demand; the FEOC rules are still unfinished. Add 19.1 percent of revenue on the largest customer (top 5: 53.7 percent) and tariff pressure on the margin (annual report 10-K for 2025).
Shoals is the opposite of a zombie company: profitable, growing, with a record order book, positive equity and worked-off legacy burdens. The radar hit is still no false alarm but to be taken literally: $1.9 million in cash, 91 percent of the credit line drawn, minus $41.4 million of operating cash flow in one quarter — Shoals finances its own boom on the edge, while the margin falls and Washington has stamped an expiry date on solar subsidies. Not investment advice.
- Scanner membership shifts daily: in the data set of July 8, 2026 SHLS was not yet in the Insolvency Radar; on July 14, 2026 (verified live) the row is included, because the Q1 figures pushed the four-quarter sum of operating cash flow below zero.
- Price and valuation figures dated July 8, 2026 (about $9.90, about $1.76 billion market value); short interest and scanner screenshot dated July 14, 2026. Analyses are evergreen, daily prices are not a buy argument.
- The class-action settlement ($70.0 million, of which $64.8 million insured) has preliminary court approval; the final hearing is set for September 2026.
About the Company
Shoals Technologies Group, Inc. bietet Lösungen und Komponenten für das elektrische Balance of System (EBOS) in den USA und international an.
| IPO Year | 2021 |
|---|---|
| Next Earnings | 4. Aug 2026 |
Chart
Data as of: July 2, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.