Sunnova Energy Reports 19% Revenue Growth, Net Loss Widens in Q3 2024

Sunnova Energy International Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company achieved total revenue of $235.3 million for the third quarter, marking a 19% increase from $198.4 million in the same period of 2023. For the nine months ended September 30, 2024, revenue reached $615.8 million, up 17% from $526.5 million year-over-year. This growth was driven by increases in customer agreements and incentives revenue, which rose 46% to $157.5 million in Q3 2024, and lease revenue, which surged 64% to $62.3 million.

Despite the revenue growth, Sunnova reported a net loss of $150.3 million for Q3 2024, a 166% increase from a net loss of $56.5 million in Q3 2023. The net loss attributable to stockholders was $122.6 million, compared to $63.1 million in the prior year. For the nine-month period, the net loss was $320.1 million, up from $267.6 million in 2023. The operating loss for Q3 2024 was $(52.5) million, a 37% increase from $(38.2) million in Q3 2023.

Total operating expenses for the third quarter increased by 22% to $287.8 million, driven by higher costs associated with operations and maintenance, which rose 92% to $35.9 million, and general and administrative expenses, which increased 10% to $110.7 million. The company also faced a significant rise in interest expenses, which surged 217% to $124.9 million, largely due to unrealized losses on derivatives and increased average debt outstanding.

Sunnova's total assets grew to $12.9 billion as of September 30, 2024, up from $11.3 billion at the end of 2023, while total liabilities increased to $10.2 billion from $9.2 billion. The company’s total stockholders' equity rose to $1.8 billion, compared to $1.5 billion at the end of the previous fiscal year.

Strategically, Sunnova has been active in securing financing, with $1.0 billion of available borrowing capacity under various arrangements as of September 30, 2024. The company has also seen increased capital commitments from tax equity investors, totaling approximately $3.4 billion, with $3.1 billion funded. Recent amendments to credit facilities have extended maturity dates and adjusted terms to enhance liquidity.

Sunnova continues to focus on expanding its customer base, serving over 422,000 customers as of September 30, 2024, an increase from 419,200 at the end of 2023. The company is also adapting to market conditions, with a noted shift in customer demand from solar loans to leases and Power Purchase Agreements (PPAs) due to rising interest rates.