SolarMax Q2 Revenue Jumps 49% Amid One-Time Legal Loss

SolarMax Technology, Inc. (Nasdaq: SMXT) reported second-quarter 2026 revenue of $10.2 million, a 49% increase from $6.9 million in the same period last year, according to an October 8, 2026, press release. The Riverside, California-based integrated solar energy company stated that this growth was accompanied by a significant expansion in gross profit, which reached $2.4 million, up 299% from $605,000 in the second quarter of 2025.

Despite the top-line growth, the company posted a net loss of $4.7 million, or $0.98 per share, compared with a net loss of $1.9 million, or $0.50 per share, in the prior-year period. The widening loss was primarily driven by total operating expenses of $6.9 million, which included a one-time expense of $4.3 million related to a legal judgment concerning the company's China segment. Excluding this specific legal cost, operating expenses were substantially lower than the $2.4 million reported in the second quarter of 2025.

David Hsu, CEO of SolarMax, attributed the improved margins to year-over-year progress in revenue and gross profit. Hsu noted that while the one-time legal judgment contributed to the higher net loss, the company achieved substantial improvement in gross margin compared with the prior-year period. He stated that the firm is prioritizing its engineering, procurement and construction (EPC) work while strictly controlling costs and seeking new projects in large-scale energy storage.

SolarMax has expanded its operations to include EPC services for industrial projects, a shift that began in the third quarter of 2025. The company, founded in 2008 and based in California, aims to scale commercial solar development services and provide LED lighting solutions in the US while expanding its residential solar operations. Hsu indicated that this expansion into industrial EPC services provides a foundation for long-term growth and shareholder value.

The press release includes forward-looking statements regarding the company's future plans and strategies, noting that actual results may differ materially due to risks such as the ability to commence services on other EPC contracts entered into in December 2025. These statements are subject to the safe harbor provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. Investors are directed to refer to the company's Annual Report on Form 10-K for the year ended December 31, 2025, and its Form 10-Q for the quarter ended June 30, 2026, for detailed risk factors and management's discussion of financial condition.