ZEO

Zeo is a vertically-integrated residential-solar installer (Florida/Texas/Midwest) whose numbers are deteriorating across every lens. FY2025 revenue fell to $69.3M (-5.3% YoY), continuing a two-year slide from $110M in FY2023, while the bottom line collapsed: net income of -$14.0M (-424.9% YoY) and operating income of -$20.5M on a -29.6% operating margin. Returns are deeply negative (ROE -262.8%) and the accumulated deficit sits at -$58.1M. This is not a temporary stumble — it's a shrinking, cash-consumptive business.

The balance sheet looks superficially clean (almost no debt; liabilities/equity 1.77x) and the stock trades below both book ($5.33M equity) and cash ($6.14M) on a $3.69M market cap — a classic 'net-net' lure. But that screen is a trap: operating cash flow was -$8.69M in FY2025, meaning the entire cash pile is consumed in well under a year absent external financing. With equity of just $5.33M and a history of funding losses by issuing stock, the path forward is more dilution — weighted shares already ballooned +454.7% YoY, and the all-stock Heliogen acquisition (closed Aug 2025) issued another 6.22M Class A shares. Per-share value is being shredded faster than the discount-to-cash can compensate.