Breaking Down SPI Energy Co., Ltd. (SPI) Financial Health: Key Insights for Investors

You're looking at a solar and EV solutions provider that's defintely at a crossroads, where aggressive growth forecasts meet serious balance sheet pressure, so you need to understand the true cost of that expansion. Analysts project this Company will hit a $538 million annual revenue for the 2025 fiscal year, which is a massive jump that suggests real traction in the renewable energy market, plus they forecast a positive $19 million in annual EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). But honestly, that top-line growth hides a persistent liquidity problem; the Company's Solvency Score sits at a concerning 11/100, and the Trailing Twelve Months (TTM) Earnings Per Share (EPS) is still deep in the red at -$0.86. We're not just looking at a growth story; we're examining a capital-intensive turnaround where every dollar of that forecasted revenue needs to be managed perfectly to avoid a near-term cash crunch.

Revenue Analysis

You need to know where the money is coming from, and for SPI Energy Co., Ltd. (SPI), the picture is one of shifting focus within the renewable sector. The direct takeaway is that while the company saw significant growth in 2023, the Trailing Twelve Months (TTM) revenue, which is the closest figure we have for a current 2025 view, sits around $0.20 Billion USD as of November 2025, suggesting a recent deceleration from the prior year's peak.

Honestly, the revenue story here is less about a single product and more about a diversified, global solar ecosystem. SPI Energy Co., Ltd. (SPI) primarily generates revenue across four distinct areas, which helps mitigate risk if one market segment slows down.

• Solar Products and Services: Selling solar panels, inverters, and providing Engineering, Procurement, and Construction (EPC) services.
• Project Development: Income from developing and then selling completed solar projects.
• Electricity Generation: Stable revenue from selling power generated by its owned solar plants.
• Other Services: Emerging revenue from areas like electric vehicle (EV) chargers.

Looking at the trend, the company's ability to execute on project sales and operations has been the key driver. For the fiscal year 2023, total revenue was $222.3 million, representing a substantial year-over-year increase of 35.8% compared to the $163.7 million reported in 2022. Here's the quick math: that growth was defintely fueled by a jump in solar project revenue and electricity sales, showing the value of their long-term asset base.

As of the latest TTM data in November 2025, the total revenue is approximately $200 million, a slight dip from the 2023 full-year number. This suggests that while the long-term trend is up, the near-term growth rate has flattened or even slightly reversed, a risk to watch. The segment contribution has been volatile, but the Project Development and Electricity Generation segments are becoming increasingly important. For example, the nine months ended September 30, 2023, saw sales of $159.76 million, up significantly from the prior year's $127.75 million, which shows strong momentum leading into the current period.

A significant change to note is the recent settlement that will allow SPI Energy Co., Ltd. (SPI) to regain 26.57 MW of solar assets. This portfolio is expected to generate an additional €8-10 million annually in revenue, which will directly bolster the Electricity Generation segment's contribution starting in the near term. This is a clear, concrete opportunity to stabilize and grow the recurring revenue base. You can dive deeper into the ownership structure and market sentiment in Exploring SPI Energy Co., Ltd. (SPI) Investor Profile: Who's Buying and Why?

To be fair, the lack of a detailed 2025 segment breakdown means we have to infer the current mix, but the recent TTM figure of $0.20 Billion USD is the anchor for your valuation models right now.

Profitability Metrics

You want to know if SPI Energy Co., Ltd. (SPI) is making money, and the short answer, looking at the trailing twelve months (TTM) data closest to November 2025, is no-the company is still operating at a loss, but its gross margin is surprisingly strong compared to some peers.

For the last 12 months, SPI Energy Co., Ltd. (SPI) reported total revenue of $209.53 million. However, this revenue did not translate into an overall profit. The company posted a TTM Net Income (loss) of $-24.70 million, resulting in a negative Net Profit Margin of -11.79%. This tells us that after all costs-production, operations, interest, and taxes-the company is still burning cash. It's a tough market, defintely.

Here is the quick math on the key profitability ratios for the TTM period ending in late 2025:

Gross Margin Trend and Operational Efficiency

The Gross Profit Margin (Gross Profit divided by Revenue) is your first check on operational efficiency-it shows how well the company manages its direct production costs (Cost of Goods Sold). SPI Energy Co., Ltd.'s (SPI) TTM Gross Margin stands at a solid 13.29%. This is a good sign for their core business model, suggesting they can sell their solar and EV solutions for significantly more than it costs to make them.

When we look at a major industry player like JinkoSolar, their Gross Profit Margin for the third quarter of 2025 was 7.3%. SPI's higher gross margin suggests a potential competitive advantage in cost management or a focus on higher-margin segments like their downstream solar project development and EV business, which you can read more about in their Mission Statement, Vision, & Core Values of SPI Energy Co., Ltd. (SPI).

• Gross Margin is strong: 13.29% TTM.
• Operating Margin is negative: -6.34% TTM.
• Net Margin is significantly negative: -11.79% TTM.

The problem isn't in manufacturing or procurement; it's in the subsequent layers of cost. The Operating Profit Margin (EBIT/Revenue) of -6.34% shows that once you account for Selling, General, and Administrative (SG&A) expenses and other operating costs, the company is losing money on its day-to-day operations. This is a clear indicator that overhead costs are too high relative to sales. The jump from a positive Gross Profit to a negative Operating Profit signals a need for serious cost management and scaling of sales to absorb those fixed costs.

The final step down to the Net Profit Margin of -11.79% indicates that non-operating items, like interest expense on debt, are further eroding the bottom line. This is a common challenge for growth-focused, capital-intensive companies in the renewable energy sector, but it's a near-term risk you need to factor into your valuation models.

Debt vs. Equity Structure

The core takeaway for SPI Energy Co., Ltd. (SPI) investors is stark: the company's financial structure has collapsed into insolvency. On July 22, 2025, the company was placed into Official Liquidation by the Grand Court of the Cayman Islands, meaning the debt-versus-equity debate is now a liquidation priority question, not a growth strategy one.

Before the liquidation, SPI Energy Co., Ltd.'s financing strategy was highly leveraged, a clear red flag. The most recent Trailing Twelve Months (TTM) data shows a Debt-to-Equity (D/E) ratio of 4.11. This is significantly higher than the average D/E ratio for the Renewable Electricity sub-industry, which sits around 3.126 as of early 2025.

Here's the quick math on what that ratio means: for every dollar of shareholder equity, the company had to support $4.11 in debt. That's a massive reliance on borrowed capital, which is a defintely risky position in a capital-intensive sector like solar, especially when growth stalls.

• Total Debt: $65.77 million (TTM)
• Debt-to-Equity Ratio: 4.11 (TTM)
• Industry D/E Benchmark: 3.126 (Renewable Electricity)

The High-Leverage Trap

The company's financing balance was heavily skewed toward debt, indicating a reliance on creditors to fund its operations and project development. This is evident in the total debt figure of $65.77 million against only $5.53 million in cash. This debt load, which includes both long-term and substantial short-term liabilities, created an unsustainable interest expense burden, especially given the negative Return on Equity (ROE) of -124.50%.

While the company did attempt to raise equity, such as a prior at-the-market offering for $14.7 million, the high debt load and poor operational performance ultimately overwhelmed these efforts. The high D/E ratio signaled to the market that lenders, not owners, held the primary claim on the company's assets, a situation that drastically increases financial risk when revenues disappoint.

The Ultimate Credit Event: Liquidation

The most critical recent event is the Official Liquidation in July 2025. This action is the final, definitive outcome of the company's inability to balance its debt and equity, effectively replacing a troubled capital structure with a court-supervised winding-down process. The Nasdaq suspended trading on January 15, 2025, a clear precursor to this.

For investors, this means the statutory priority of payments is now in effect. Unsecured creditors rank ahead of ordinary equity holders. The liquidators are now in control, and any recovery for common shareholders is highly unlikely. The powers of the company's directors ceased upon the order. This is the ultimate negative credit rating-a complete loss of financial autonomy.

If you're interested in the context of who was holding the bag, you might want to read Exploring SPI Energy Co., Ltd. (SPI) Investor Profile: Who's Buying and Why?

Next Step: Investors should confirm the liquidation status with their brokerage and understand the process for receiving any potential, though highly improbable, distribution from the Joint Official Liquidators.

Liquidity and Solvency

You need a clear picture of whether SPI Energy Co., Ltd. (SPI) can meet its short-term bills, and honestly, the recent figures show significant strain. The company's liquidity position, based on the latest available twelve-month (LTM) data ending in late 2025, is a major area of concern, pointing to a capital-intensive business model that struggles to generate sufficient cash internally.

The core issue is that current assets don't cover current liabilities. This is a classic working capital problem. Your priority should be tracking the pace of asset conversion into cash over the next two quarters.

Current and Quick Ratios Signal Near-Term Risk

The current and quick ratios (liquidity positions) are the fastest way to gauge short-term financial health. The benchmark for a healthy current ratio is usually 2.0 or higher, meaning a company holds twice the assets it needs to cover its short-term debt. SPI Energy Co., Ltd.'s ratios are far below that threshold, signaling immediate liquidity risk.

• Current Ratio: The LTM Current Ratio stands at a low 0.41. This means for every dollar of short-term debt, the company only has about 41 cents in current assets to pay it.
• Quick Ratio: The LTM Quick Ratio (or Acid-Test Ratio), which strips out inventory, is even lower at 0.15. This suggests a heavy reliance on selling off inventory to cover immediate obligations, which can be slow and subject to market price risk.

A ratio of 0.15 is defintely a red flag. It shows the company's most liquid assets-cash and receivables-can only cover a fraction of its immediate liabilities.

Analysis of Working Capital Trends

Working capital is simply Current Assets minus Current Liabilities. For the most recent detailed quarter (Q3 2023), SPI Energy Co., Ltd. reported Current Assets of $80.99 million and Current Liabilities of $195.66 million. Here's the quick math: this results in a negative working capital of approximately -$114.67 million. This negative trend has been persistent and indicates a structural funding gap that requires continuous external financing or a rapid improvement in operational cash flow.

The high level of inventory, around $34.14 million in Q3 2023, is a major component of the current assets, but the low Quick Ratio suggests this inventory is not easily or quickly converted to cash. This is common in the solar and EV sectors, but still a risk.

Cash Flow Statements Overview

A review of the cash flow statement (CFS) shows where the company is generating and spending its cash. The LTM data paints a clear picture of a company that is not self-sustaining its operations.

Cash Flow from Operating Activities (CFO) being negative, at -$709,000 LTM, is the most critical factor. It means the core business is a net user of cash, not a generator. Plus, the company is still spending on assets, with Cash Flow from Investing Activities (CFI) at -$3.32 million LTM. The persistent cash burn means SPI Energy Co., Ltd. must rely on external financing-issuing new debt or equity-to keep the lights on and fund growth initiatives, which you can read about in their Mission Statement, Vision, & Core Values of SPI Energy Co., Ltd. (SPI).

Potential Liquidity Concerns and Strengths

The primary liquidity concern is the severely low Current Ratio of 0.41 and the negative working capital of over $114 million. This signals a high risk of default on short-term obligations if the company cannot quickly raise capital or restructure its debt. The strength, if you can call it that, is the company's ability to secure financing, as evidenced by its continued operation despite these metrics, but that is a function of market confidence, not financial strength.

The action here is simple: you must factor in a high cost of capital and potential dilution risk into your valuation, as the company will defintely need to raise more money to close that cash gap.

Valuation Analysis

You're looking at SPI Energy Co., Ltd. (SPI) and trying to figure out if it's a deep-value play or a value trap. Honestly, the valuation metrics and the recent stock performance paint a stark picture: the market has defintely priced in significant distress, which is why the stock is trading at fractions of a penny.

The core takeaway is that traditional valuation metrics are currently distorted by unprofitability and extreme price volatility. The stock is best described as highly speculative, with its price action suggesting a massive sell-off despite some analyst optimism.

Here's the quick math on the key trailing twelve months (TTM) ratios, which reflect the company's financial state closest to November 2025:

• Price-to-Earnings (P/E) Ratio: -0.82
• Price-to-Book (P/B) Ratio: 1.67
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: -5.39

A negative P/E ratio of -0.82 and a negative EV/EBITDA of -5.39 are the first things that jump out. What this tells you is simple: the company is currently losing money (negative earnings and negative EBITDA), so these ratios are not useful for comparison against profitable peers. The P/B ratio of 1.67 means the stock is trading at 1.67 times its book value (shareholders' equity), suggesting investors still value the company's net assets above their accounting value, but that's a thin cushion.

Is SPI Energy Co., Ltd. (SPI) Overvalued or Undervalued?

The market has rendered its own verdict over the last 12 months. SPI Energy Co., Ltd.'s stock price has collapsed, trading in a 52-week range between a high of $1.7500 and a low of $0.0001. As of November 2025, the stock price is hovering around $0.0004 to $0.001. This represents a staggering decline of approximately -99.7% to -99.96% over the past year. That's not a correction; that's a near-total destruction of equity value.

The stock is not a dividend play. SPI Energy Co., Ltd. does not currently pay a dividend, so its dividend yield and payout ratios are 0.00%. The focus here is entirely on a turnaround in core business profitability and growth, not income.

Analyst Consensus vs. Market Reality

To be fair, some analysts still maintain a relatively positive outlook. The average brokerage recommendation for the SPIEF ticker is a 2.1 rating, which generally falls into the 'Outperform' or 'Buy' category on a scale where 1 is a Strong Buy. However, the actual price action-a near-total collapse-shows the market is ignoring this consensus, or the consensus is based on a very optimistic future scenario that has not materialized.

When the stock is down nearly 100% in 12 months, you have to prioritize the market's action over an analyst's rating. The market is pricing in significant risk, possibly related to delisting concerns. You can read more about the full financial picture in our deeper dive: Breaking Down SPI Energy Co., Ltd. (SPI) Financial Health: Key Insights for Investors. Your next step should be to look closely at the balance sheet-especially cash and debt-to see if the company has the liquidity to survive this period of unprofitability.

Risk Factors

Let's cut straight to the most critical factor for SPI Energy Co., Ltd. (SPI) investors: the company is in Official Liquidation as of July 22, 2025, by order of the Grand Court of the Cayman Islands. This is not a restructuring; it's a court-run insolvency process where the focus shifts entirely to paying creditors first.

Honestly, for ordinary shareholders, this means the risk of recovering any capital is extremely high. Trading of the company's ordinary shares was already suspended by Nasdaq on January 15, 2025. The Joint Official Liquidators (JOLs) are now in control, and under Cayman law, equity holders are the last in line, behind unsecured creditors.

Operational and Financial Collapse: The 2025 Reality

The liquidation is the ultimate manifestation of severe financial and operational risks that have been building. While the company once aimed to continuously invest in the fast-growing renewable sector, owning 80% of the electric vehicle (EV) company Phoenix (PEV), the underlying financial health was defintely unsustainable.

Here's the quick math that shows the financial distress leading up to the liquidation, based on 2025 analyst forecasts before the final collapse.

That 100% Probability of Bankruptcy score, derived from metrics like the Altman Z-Score, tells you everything you need to know about the terminal state of the balance sheet.

External and Industry Headwinds

Even before the liquidation, SPI Energy Co., Ltd. (SPI) faced the brutal external risks common to the renewable energy sector. The market is intensely competitive, forcing downward pressure on prices and profit margins.

Regulatory risk is also a constant threat. For example, the potential reduction in the Solar Investment Tax Credit (ITC) from 30% to 26% by 2035 was an external factor that could have resulted in an estimated annual impact of $4.3 billion in potential revenue loss across the industry, a headwind a financially fragile company simply couldn't withstand.

• Intense competition from larger, more established solar and EV players.
• Volatile market conditions impacting the price of solar products and services.
• Regulatory changes, like shifts in the US Solar Investment Tax Credit, affecting project economics.

The company's strategic plan was to mitigate risk by diversifying its portfolio across solar products, project development, and EV charging, but this did not stop the financial distress. You can still review their initial strategic intent here: Mission Statement, Vision, & Core Values of SPI Energy Co., Ltd. (SPI).

Mitigation Strategies and Next Steps

In a liquidation scenario, the company's directors no longer have the power to execute traditional mitigation strategies. The power rests with the Joint Official Liquidators, who are focused on asset recovery and distribution to creditors.

For you, the investor, the action is clear: recognize that the liquidation process prioritizes unsecured creditors over common equity. You must treat any investment in SPI Energy Co., Ltd. (SPI) as having a near-zero recovery value.

Growth Opportunities

You're looking at SPI Energy Co., Ltd. (SPI) and wondering where the real money will be made next. The direct takeaway is this: SPI's future growth is less about massive top-line expansion in 2025 and more about achieving a critical shift to profitability, driven by its diversified solar manufacturing and electric vehicle (EV) segments in the US. They are defintely moving the right pieces around.

The core of the near-term opportunity centers on cost control and scale. Analysts forecast the company to reach a breakeven point in 2025, a crucial milestone after years of operating losses. Here's the quick math on their expected profitability: the forecasted annual Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for SPI Energy Co., Ltd. is projected to hit $19 million by the end of fiscal year 2025. This translates to a projected Earnings Before Interest and Taxes (EBIT) of approximately $10 million for the same period. This is a solid sign of operational efficiency taking hold.

What's driving this shift? It's a combination of strategic initiatives that map directly to high-growth, government-supported sectors. The focus is on three key areas:

• Product Innovations: Expanding US-made solar module capacity.
• Market Expansions: Deepening penetration in US residential and commercial markets.
• Strategic Partnerships: Leveraging EV and storage solutions for cross-selling.

Scaling US Manufacturing and Product Innovation

SPI Energy Co., Ltd.'s product innovation is tightly linked to its domestic manufacturing capacity, a significant competitive advantage in the US market due to favorable policies like the Solar Investment Tax Credit (ITC). The company's Solar4America division is aggressively expanding its module production. While their California facility reached 2.4 gigawatts (GW) of capacity in 2023, the plan is to further increase module production capacity to an estimated 5.0 GW by 2024, incorporating new East Coast sites. This scale allows them to better manage supply chain risks and capture market share by offering American-made modules.

A smart move here is the partnership with Origami Solar to launch a new line of steel-framed solar modules. This reduces the production-based carbon footprint and bolsters the U.S.-based supply chain, which is a big win for securing large-scale commercial and utility contracts.

Market Expansion and Strategic Diversification

The market expansion strategy is two-pronged: solar and electric vehicles. On the solar side, the company has an established market presence in key US states, especially California, where it holds a 4.2% market share in the solar sector, with 23.5 MW of total solar installations completed in 2023. This existing footprint makes new customer acquisition cheaper.

The diversification into the EV sector through its Phoenix Motor division (medium-duty commercial EVs and charging solutions) is a crucial long-term play. The company is actively targeting strategic investment opportunities in fast-growing green industries like battery storage and charging stations, which naturally complement its core solar business. For a deeper dive into the company's full financial picture, you should check out Breaking Down SPI Energy Co., Ltd. (SPI) Financial Health: Key Insights for Investors.

What this estimate hides is the intense competition in the renewable energy sector; everyone wants a piece of this pie. Still, SPI Energy Co., Ltd.'s whole value chain expertise-from manufacturing to Engineering, Procurement, and Construction (EPC) services-positions it well. Looking ahead, the forecasted annual revenue for 2026 is $634 million, suggesting management expects the profitability achieved in 2025 to fuel significant top-line growth the following year. It's a turnaround story that hinges on execution.