Zeo Energy (ZEO) AI Stock Analysis

• Market Cap: $70.76M
• Dividend Yield: N/A
• Average Volume (3M): 254.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: 27.17%
• EPS Growth: 57.71%
• Country: US
• Employees: 200
• Sector: Technology
• Sector Strength: 88
• Industry: Solar
• EPS (TTM): N/A
• Shares Outstanding: 33,149,933
• 10 Day Avg. Volume: 601,883
• 30 Day Avg. Volume: 254,950
• PEG Ratio: 1.31
• Price to Book (P/B): -0.42
• Price to Sales (P/S): 0.51
• P/FCF Ratio: -4.11
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 0.98
• Enterprise Value/Gross Profit: 1.70
• Enterprise Value/Ebitda: -9.33
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: $0.91 ▼(-37.15% Downside)
• Action: Reiterated Date: 12/03/25
• Date: Action: Reiterated 12/03/25

Zeo Energy's overall stock score is primarily impacted by its challenging financial performance, characterized by declining revenues and negative profit margins. The technical analysis further supports a bearish outlook with weak momentum indicators. The valuation is unattractive due to a negative P/E ratio and lack of dividend yield, making the stock less appealing to investors.

Positive Factors

High gross margin

A 55.4% gross margin provides a durable profitability buffer in Zeo's hardware and services mix. If SG&A and operating efficiencies improve, the company can leverage this margin to reach positive operating profit without needing structurally higher revenues.

Low financial leverage

Limited leverage reduces bankruptcy and refinancing risk for a capital-intensive renewables firm. Low debt gives Zeo flexibility to fund projects, negotiate longer receivable cycles, and raise capital on more favorable terms during multi-month project timelines.

Diversified revenue streams & partnerships

Multiple product and service lines plus government and private partnerships create durable revenue diversification and recurring service opportunities. This mix supports contract visibility, incentive capture, and cross-sell potential across commercial and community projects.

Negative Factors

Negative operating & free cash flow

Persistent negative operating and free cash flow indicate the business currently burns cash to run and grow projects. Over a multi-month horizon this pressures liquidity, forces reliance on external capital, and can defer critical investments or margin-improving initiatives.

Negative net and operating margins

Negative net, EBIT and EBITDA margins show structural profitability issues beyond gross margin. Operating inefficiencies or elevated SG&A mean gross profits do not reach the bottom line, limiting internally generated funds for scaling and making durable profit recovery necessary.

Equity financing and dilution risk

A flexible $30M equity facility addresses funding needs but signals ongoing capital dependence and creates dilution risk. Over several months, repeated drawdowns could erode shareholder value and indicate the business lacks sufficient cash generation to fund projects internally.

Zeo Energy Business Overview & Revenue Model

Company Description

Zeo Energy Corp. is a vertically integrated provider of residential solar energy systems, other energy efficient equipment, and related services. The company is headquartered in New Port Richey, FL.

How the Company Makes Money

Zeo Energy generates revenue through multiple streams, including the sale of solar panels and wind turbines, installation services for renewable energy systems, and energy storage solutions. Additionally, the company offers consulting services that help clients optimize their energy use and reduce costs. Key partnerships with government entities and private sector clients enable Zeo Energy to secure contracts for large-scale energy projects, further enhancing its revenue potential. The company also benefits from incentives and subsidies related to renewable energy initiatives, which contribute to its overall earnings.

Zeo Energy Financial Statement Overview

Summary

Zeo Energy faces substantial financial challenges, with declining revenues, negative profit margins, and cash flow difficulties. While the company maintains low leverage, its profitability and cash generation are areas of concern.

Income Statement

Zeo Energy's income statement reveals a challenging financial position with declining revenues and negative profit margins. The TTM data shows a gross profit margin of 55.4%, which is relatively strong, but the net profit margin is negative at -14.8%, indicating significant losses. The revenue growth rate is negative, reflecting a decrease in sales. EBIT and EBITDA margins are also negative, highlighting operational inefficiencies.

Balance Sheet

The balance sheet shows a mixed picture with a low debt-to-equity ratio, suggesting limited leverage, which is a positive aspect. However, the return on equity is inconsistent, with a negative ROE in the most recent TTM period. The equity ratio is not explicitly calculated, but the company's equity position appears to be unstable given the fluctuations in stockholders' equity.

Cash Flow

Cash flow analysis indicates significant challenges, with negative operating and free cash flows in the TTM period. The free cash flow growth rate is positive, but this is due to a low base effect. The operating cash flow to net income ratio is negative, indicating cash flow issues relative to earnings. The free cash flow to net income ratio is positive, suggesting some ability to convert earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	69.43M	73.24M	109.69M	88.96M	24.59M
Gross Profit	40.09M	35.22M	50.25M	17.75M	10.49M
EBITDA	-7.31M	-5.69M	6.80M	10.42M	7.47M
Net Income	-12.44M	-2.67M	4.85M	8.67M	7.09M
Balance Sheet
Total Assets	58.50M	61.40M	48.13M	35.20M	32.37M
Cash, Cash Equivalents and Short-Term Investments	3.92M	5.63M	8.02M	2.27M	450.85K
Total Debt	4.17M	5.09M	2.97M	2.11M	743.68K
Total Liabilities	12.42M	18.49M	17.54M	3.93M	1.56M
Stockholders Equity	-1.72M	-88.91M	30.59M	31.28M	30.82M
Cash Flow
Free Cash Flow	-8.79M	-9.09M	10.94M	9.64M	6.17M
Operating Cash Flow	-7.66M	-8.72M	11.98M	10.72M	6.88M
Investing Cash Flow	6.46M	-7.37M	-1.03M	-1.08M	379.13K
Financing Cash Flow	786.30K	13.70M	-5.19M	-7.82M	-6.93M

Zeo Energy Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.44
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZEO, the sentiment is Neutral. The current price of 1.44 is above the 20-day moving average (MA) of 1.07, above the 50-day MA of 1.04, and below the 200-day MA of 1.71, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 56.21 is Neutral, neither overbought nor oversold. The STOCH value of 54.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ZEO.

Zeo Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPRU	62 Neutral	$73.22M	-2.94	-18.23%	―	37.59%	72.94%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SMXT	47 Neutral	$38.63M	-3.56	―	―	76.60%	70.94%
ZEO	45 Neutral	$70.76M	-1.65	―	―	27.17%	57.71%
BEEM	42 Neutral	$31.02M	-0.86	-80.33%	―	-54.56%	-133.60%
MAXN	42 Neutral	$41.40M	-0.01	―	―	-54.68%	63.56%

Zeo Energy Corporate Events

Zeo Energy Secures Flexible Equity Financing Agreement

On January 27, 2026, Zeo Energy Corp entered into a common stock purchase agreement with White Lion Capital, granting the company the right, but not the obligation, to sell up to $30 million of newly issued Class A common shares over a commitment period ending January 27, 2029, subject to customary conditions including the effectiveness of a resale registration statement. The structure allows Zeo Energy to issue shares through rapid or accelerated purchase notices tied to trading volume and market prices, while capping White Lion’s beneficial ownership at 4.99% and limiting low-priced share issuances without prior shareholder approval; in parallel, Zeo Energy agreed to provide $100,000 in commitment shares and entered a registration rights agreement to register up to 11,454,607 resale shares, creating a flexible equity financing facility that could support the company’s capital needs but also introduces potential dilution for existing shareholders.

The most recent analyst rating on (ZEO) stock is a Sell with a $0.98 price target. To see the full list of analyst forecasts on Zeo Energy stock, see the ZEO Stock Forecast page.