Array Technologies, Inc. reported significant financial challenges in its latest 10-Q filing for the three and nine months ended September 30, 2024. The company experienced a substantial decline in revenue, with total revenue for the third quarter falling to $231.4 million, a decrease of 34% from $350.4 million in the same period of 2023. For the nine months, revenue dropped 48% to $640.6 million from $1.2 billion year-over-year. This decline was attributed to lower demand and project delays, exacerbated by macroeconomic factors such as rising interest rates and supply chain disruptions.

The company's gross profit also decreased, totaling $78.3 million for the third quarter, down 10% from $87.4 million in 2023. For the nine months, gross profit fell 34% to $219.4 million. Despite a decrease in the cost of revenue, which dropped 42% in Q3 and 53% for the nine months, the overall profitability was severely impacted by a significant increase in operating expenses. Total operating expenses surged to $211.0 million in Q3, a staggering 347% increase from $47.2 million in the prior year, primarily due to legal and professional fees.

Array Technologies reported a net loss of $141.4 million for the third quarter, compared to a net income of $23.1 million in the same period of 2023. For the nine months, the net loss was $113.5 million, contrasting sharply with a net income of $117.9 million in the previous year. The basic loss per share for Q3 was $(1.02), compared to a gain of $0.07 in 2023.

A notable factor contributing to the losses was a goodwill impairment charge of $162 million recorded during the quarter, linked to the company's STI Operations. This impairment was triggered by a decline in stock price and market capitalization, necessitating an interim quantitative goodwill impairment test.

On the balance sheet, cash and cash equivalents increased to $332.4 million as of September 30, 2024, up from $249.1 million at the end of 2023. However, total liabilities rose slightly to $1.1 billion, with total stockholders' equity plummeting to $64.5 million from $259.2 million at the end of the previous fiscal year.

Strategically, Array Technologies is focusing on expanding its manufacturing capabilities, having entered into a long-term lease for a new facility in New Mexico, expected to be completed in late 2025. The company is also navigating ongoing legal proceedings and adapting to regulatory changes, including the Inflation Reduction Act's manufacturing credits, which may influence future operations and financial performance.