Nextpower — Income Statement, Cash Flows & Balance Sheet
Is Nextpower profitable?
Nextpower is solidly profitable, with revenue and net income growing at a healthy clip for the third consecutive year.
| Metric | FY2024 | FY2025 | FY2026 | Change (FY25→FY26) |
|---|---|---|---|---|
| Revenue | $2,499.8M | $2,959.2M | $3,559.4M | +20% |
| Gross Profit | $813.0M | $1,008.8M | $1,160.1M | +15% |
| Gross Margin | 32.5% | 34.1% | 32.6% | -1.5 pp |
| Operating Income | $587.1M | $639.1M | $697.3M | +9% |
| Net Income (attributable to Nextpower) | $306.2M | $509.2M | $585.9M | +15% |
Revenue has grown more than 40% over two years, and net income attributable to Nextpower shareholders has nearly doubled — partly because prior-year figures were diluted by non-controlling interests that have since been fully bought out. Gross margin dipped slightly in the most recent year, largely due to rising tariff costs (tariffs jumped from roughly $20M to $130M), though this was partially offset by growing credits under the IRA's Section 45X manufacturing incentive program, which reduced cost of sales by about $380M in FY2026.
A significant and growing government tax credit is boosting margins — investors should understand its scale.
| Item | FY2024 | FY2025 | FY2026 | Change (FY25→FY26) |
|---|---|---|---|---|
| 45X Credit reduction to cost of sales | $121.4M | $224.9M | $379.9M | +69% |
The 45X credit (an Inflation Reduction Act benefit tied to U.S.-manufactured solar components) is now a material contributor to profitability. Its continuation depends on current tax law remaining intact — a policy risk worth monitoring.
Where does Nextpower's revenue come from?
The U.S. market is growing as a share of revenue, while international markets pulled back slightly.
| Geography | FY2024 | FY2025 | FY2026 | Change (FY25→FY26) |
|---|---|---|---|---|
| United States | $1,702.6M (68%) | $2,031.6M (69%) | $2,730.7M (77%) | +34% |
| Rest of World | $797.2M (32%) | $927.6M (31%) | $828.7M (23%) | -11% |
| Total | $2,499.8M | $2,959.2M | $3,559.4M | +20% |
Domestic revenue surged, driven in part by strong U.S. solar project demand and a notable increase in bill-and-hold sales ($144M, a new arrangement in FY2026 with no prior-year equivalent). International revenue contracted in absolute terms, reflecting a strategic or market-driven concentration toward the U.S. — where the 45X credit incentive also applies.
Does Nextpower generate cash?
Nextpower converts profits into cash reliably, though operating cash flow dipped as receivables from government credits built up.
| Metric | FY2024 | FY2025 | FY2026 | Change (FY25→FY26) |
|---|---|---|---|---|
| Operating Cash Flow | $429.0M | $655.8M | $562.9M | -14% |
| Capital Expenditures | $(6.2M) | $(33.9M) | $(49.3M) | +45% |
| Free Cash Flow (approx.) | $422.8M | $621.9M | $513.6M | -17% |
| Acquisitions | $0 | $(144.7M) | $(117.2M) | — |
| Ending Cash | $474.1M | $766.1M | $1,095.0M | +43% |
Operating cash flow declined primarily because the Section 45X credit receivable (cash not yet collected from the government) consumed an additional $267M of working capital this year. Despite this, Nextpower ended the year with over $1 billion in cash — a record — after modest acquisition spending and essentially no debt repayment obligations.
How strong is Nextpower's balance sheet?
Nextpower carries no meaningful debt and has built a substantial cash cushion.
| Item | FY2025 | FY2026 | Change |
|---|---|---|---|
| Cash & Equivalents | $766.1M | $1,095.0M | +$328.9M |
| Total Debt (drawn) | $0 | $0 | — |
| Revolving Credit Facility (available) | $500M | $922M (of $1B facility) | +$422M |
| Total Liabilities | $1,564.4M | $1,738.8M | +$174.4M |
| Stockholders' Equity | $1,628.1M | $2,334.4M | +$706.3M |
The company carries no drawn debt, has access to nearly $1 billion in undrawn credit, and its equity base grew substantially as profits accumulated. The most notable liability is the Tax Receivable Agreement (TRA) — a roughly $393M obligation to pay former investors 85% of certain future tax savings — which is a legacy of the IPO structure rather than operational borrowing, and is being paid down gradually.