Shoals Technologies Group, Inc. (SHLS)

Price$7.13Cached quoteAs of 2026-09-07 22:48 UTC

AI: Fair-priced

Price checkThe shares look fairly priced because growth is strong but cash conversion remains unproven.

At the observed close, 168.3 million shares imply about $1.23 billion of stock-market value. Adding roughly $181 million of net borrowings produces about $1.41 billion of total business value. That is near 11 times the midpoint of management’s 2026 adjusted earnings before interest, tax, depreciation, and selected costs, and roughly 39 times recent reported earnings. Those figures require solid growth and cash recovery, yet the growth outlook prevents a clear overvaluation call. The evidence supports a balanced, fair-priced verdict.

Big pictureSales are recovering quickly, but profits and cash have not kept pace.

Revenue rose 19% in 2025 after falling 18% in 2024, showing how large solar projects make results uneven. In the first half of 2026, revenue climbed 59% to $303.9 million, but gross margin—the share left after production costs—fell to 29.8% from 36.3%, while net income declined 13% to $11.8 million. Operating cash was negative $34.6 million, and equipment spending was $14.7 million. That left negative free cash flow—cash after running and investing in the business—of about $49 million, mainly because inventory absorbed $97.1 million.

Business strengthLiquidity is adequate, but the inventory build shifted balance-sheet strength toward borrowed money.

The June balance sheet had $369.5 million of current assets against $164.5 million of current liabilities, so near-term bills appear covered. Quality matters, however: inventory was $184.7 million, cash only $15.7 million, and revolving borrowings rose $60 million since December to $196.8 million, leaving $51.4 million unused. Shares increased 0.5% since year-end, while first-half stock compensation was $7.7 million. After a $25.3 million buyback in 2024, no repurchases appeared in 2025 or the first half of 2026. This is adequate liquidity, not a fortress balance sheet.

What could change the storyCash recovery, storage sales, and legal outcomes will decide whether today’s valuation proves cheap.

The strongest bull case is management delivering $65-$85 million of operating cash in 2026, spending $20-$30 million on equipment, and converting the $801.4 million order pipeline while storage and data-center sales expand. That would produce roughly $35-$65 million of free cash flow and make today’s valuation more defensible. The bear case is inventory failing to unwind, gross margin remaining near 30%, or the $73 million wire-shrinkback loss estimate rising. The current price also assumes the $96 million patent award survives further proceedings and becomes collectible; no recovery should be treated as cash before resolution.

AI: News

Quarterly growth acceleratesQuarterly sales jumped, but lower margins and unchanged yearly guidance tempered the strong headline.

On August 4, second-quarter revenue rose 47.4% to $163.4 million, while adjusted earnings before interest, tax, depreciation, and selected costs rose 27.9% to $31.6 million. However, gross margin fell to 30.3% from 37.2%, net income slipped to $12.1 million, and full-year guidance stayed at $600-$640 million of revenue. Shares closed 1.6% lower that day and 5.9% lower next session. The timing fits concern about margins and unchanged guidance, but does not prove causation.

Battery project enters deliveryReal shipments to a major battery project make diversification beyond solar more credible.

On August 18, Shoals said manufacturing and deliveries were underway for a 1.1-gigawatt battery installation serving a large data center. The company expects to make about 360 PowerHub systems for the initial phase, whose deliveries were completed ahead of planned fourth-quarter commissioning; later phases were underway. This moves the storage and data-center strategy from announcement toward execution. However, Shoals disclosed neither contract revenue nor expected profit, so the project validates demand without yet proving its financial scale.

Patent verdict favors ShoalsA major patent win strengthens product protection and could add meaningful cash if upheld.

On August 26, a federal jury found Voltage willfully infringed Shoals patents, awarded more than $96 million, and rejected challenges to their validity. The court also indicated it would preliminarily block the competing LYNX product in the United States. Shares closed 6.1% higher that day; the timing is consistent with the ruling, though it does not prove sole causation. The outcome could strengthen cash and Shoals’ ability to defend prices, but further proceedings, appeal risk, and collection uncertainty mean the damages are not equivalent to received cash.

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Revenue

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Net income

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Free cash flow

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Total cash / debt

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Financial statements

	2025	2024	2023	2022	2021	2020	2019
Revenue	$475.3M	$399.2M	$488.9M	$326.9M	$213.2M	$175.5M	$144.5M
Gross profit	$166.5M	$142.0M	$168.3M	$131.3M	$82.6M	$66.5M	$44.2M
Gross margin	35.03%	35.57%	34.42%	40.16%	38.76%	37.91%	30.60%
Operating expenses	$110.1M	$90.8M	$89.3M	$65.0M	$46.4M	$29.3M	$17.3M
Operating income	$56.4M	$51.2M	$79.0M	$66.3M	$36.2M	$37.3M	$26.9M
Operating margin	11.86%	12.82%	16.16%	20.29%	16.99%	21.24%	18.64%
EBITDA	$70.2M	$63.8M	$89.6M	$76.8M	$46.3M	$46.7M	$36.1M
EBITDA margin	14.77%	15.98%	18.32%	23.50%	21.71%	26.60%	24.98%
Net income	$33.6M	$24.1M	$40.0M	$127.6M	$2.3M	$33.8M	$25.1M
Net profit margin	7.06%	6.04%	8.18%	39.03%	1.10%	19.24%	17.40%
Basic EPSper basic share	$0.20	$0.14	$0.24	$1.11	$0.00	—	—
Diluted EPSper diluted share	$0.20	$0.14	$0.24	$0.85	$0.00	—	—

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

17.07%of listed shares

BlackRock, Inc.28.73M shares · Jun 30, 2026

View holders

Top 20 reported holders of SHLS
Holder	% owned
BlackRock, Inc.	17.07%28.73M shares
PRICE T ROWE ASSOCIATES INC /MD/	12.84%21.6M shares
VANGUARD CAPITAL MANAGEMENT LLC	4.42%7.44M shares
Invesco Ltd.	4.25%7.16M shares
STATE STREET CORP	3.60%6.05M shares
T. Rowe Price Investment Management, Inc.	3.59%6.04M shares
Amundi	3.19%5.37M shares
GEODE CAPITAL MANAGEMENT, LLC	2.82%4.75M shares
DIMENSIONAL FUND ADVISORS LP	2.73%4.59M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	2.67%4.5M shares
BNP PARIBAS ASSET MANAGEMENT Holding S.A.	2.54%4.28M shares
Greenvale Capital LLP	2.53%4.25M shares
Handelsbanken Fonder AB	2.24%3.77M shares
SCHRODER INVESTMENT MANAGEMENT GROUP	1.72%2.89M shares
Pictet Asset Management Holding SA	1.69%2.84M shares
UBS Group AG	1.62%2.73M shares
NORTHERN TRUST CORP	1.38%2.32M shares
ACK Asset Management LLC	1.34%2.26M shares
AMERIPRISE FINANCIAL INC	1.14%1.93M shares
Redwood Grove Capital, LLC	1.05%1.76M shares

Percentages use 168.29M shares of this listed class outstanding on Jun 30, 2026.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys3$270.1K disclosed value

Sells (SEC code S)15$787.5K disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 16, 2026Form 4	King Bobbie Lee JrChief Legal Officer	SellClass A Common Stock	10.0K	$10.41	$104.1K	98.9K
May 8, 2026Form 4	Bardos DominicChief Financial Officer	SellClass A Common Stock	54.4K	$8.48	$461.7K	395.0K
Dec 5, 2025Form 4	Bardos DominicChief Financial Officer	SellClass A Common Stock	4.2K	$7.83	$32.7K	412.3K
Dec 5, 2025Form 4	TOLNAR JEFFERYPresident	SellClass A Common Stock	2.5K	$7.85	$19.2K	249.6K
Mar 12, 2025Form 4	Bardos DominicChief Financial Officer	BuyClass A Common Stock	35.0K	$2.80	$98.0K	418.2K