Shoals Technologies' Q3 2026 revenue increased 43.8% YoY, while net income rose to $17.9 million
Its gross margin declined to 31.9% amid manufacturing transition costs and product quality-related expenses
The company raised its 2026 revenue outlook to $665 million and 685 million as its backlog grew on stronger demand
Shoals Technologies, an electrical balance of system (eBOS) supplier, reported a 43.8% year-on-year (YoY) increase in Q3 2026 revenue to $195.3 million. The company attributed the increase to strong product demand, market share gains, and higher project volumes.
While gross profit rose to $62.4 million from $50.3 million in Q3 2025, gross margin fell to 31.9% from 37% in the same period last year. Shoals attributed the decline primarily to operational inefficiencies during the ramp-up and transition to its new facility.
Adjusted EBITDA for the quarter improved from $32.2 million in Q3 2025 to $39.8 million in Q3 2026, while net income also expanded from $11.9 million to $17.9 million (see Shoals Q3 2025 Revenues Improve 33% YoY To $135.8 Million).
Shoals Chief Executive Brandon Moss said productivity improvements helped quarterly revenue and adjusted EBITDA to exceed the company’s expectations. Moss is set to become the CEO of the combined entity to be created with the merger of Shoals and ARRAY (see ARRAY Technologies & Shoals Technologies To Merge In 2027).
As of September 30, 2026, Shoals’ backlog and awarded orders were worth $791.7 million, up 9.8% YoY but 1.2% lower than at the end of June 2026. This was thanks to consistent demand for its products and additional growth from emerging battery energy storage markets, management said.
Shoals forecasts Q4 2026 revenue between $165 million and $185 million and adjusted EBITDA of $36 million to $40 million. For the full year, it raised its revenue outlook to between $665 million and $685 million and adjusted EBITDA to between $129 million and $133 million.