10-K · May 19, 2026
Nextpower Inc. reported robust revenue growth of 20% year-over-year for fiscal 2026, achieving $3.56 billion compared to $2.96 billion in fiscal 2025. The company's strong positioning in the solar energy market, driven…
Earnings analysis · 10-Q
NXT earnings analysis
Filed July 31, 2026 · Our reading of the company's report
The latest report
Nextpower delivered 8% year-over-year revenue growth to $935.2 million and substantial gross-margin expansion, supported by U.S. shipment growth and $103.3 million of Section 45X credits. However, the geographic mix…
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Nextpower delivered 8% year-over-year revenue growth to $935.2 million and substantial gross-margin expansion, supported by U.S. shipment growth and $103.3 million of Section 45X credits. However, the geographic mix deteriorated sharply as Rest of World sales fell 40%, while SG&A and R&D growth compressed GAAP operating margin to 20.4%. Operating cash flow improved to $121.1 million and liquidity exceeded $2.0 billion, providing capacity for the newly completed energy-storage and power-conversion acquisitions, though policy, tariff, concentration, and integration risks remain material.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
What stood out
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Revenue growth led by U.S. demand
Revenue increased $70.9 million, or 8%, year over year to $935.170 million. U.S. revenue rose $176.1 million, or 29%, to $775.617 million, more than offsetting a $105.2 million, or 40%, decline in Rest of World revenue.
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Gross-margin expansion
GAAP gross profit increased 19% to $335.853 million and gross margin expanded to 35.9% from 32.6%. The company recognized $103.3 million of Section 45X credits, versus $93.2 million a year earlier, as a reduction of cost of sales.
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Profit rises but operating leverage weakens
Net income increased 5% to $165.355 million, but operating income rose only 3% to $190.907 million as SG&A grew 36% to $100.438 million and R&D rose 106% to $44.508 million. GAAP operating margin declined 110 basis points to 20.4%.
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Cash conversion improved
Operating cash flow increased to $121.059 million from $81.324 million. Capital expenditures were $15.9 million, or roughly 1.7% of revenue, producing approximately $105.2 million of CFO less property-and-equipment capex.
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Liquidity supports platform expansion
Liquidity exceeded $2.0 billion at July 3, 2026, including $919.4 million available on the revolver after $80.6 million of letters of credit. The company completed the Prevalon acquisition on July 17 for consideration of up to $365 million and the Zigor/Apex asset acquisition on July 30 for up to $80.5 million.
What to watch
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International revenue contraction
Rest of World revenue fell 40% to $159.553 million, reducing its mix to 17% from 31% a year earlier; management attributed the decline primarily to lower shipments to Latin America and the Middle East.
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Tax-credit and FEOC policy uncertainty
The risk disclosures emphasize narrowing U.S. solar-incentive windows: projects beginning construction after July 4, 2026 must be placed in service by December 31, 2027 to qualify for Sections 48E and 45Y credits. Section 45X credits for torque tubes and structural fasteners are $0.87/kg and $2.28/kg, respectively, through 2029, then decline 25% annually beginning in 2030.
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Higher customer concentration
Customer concentration increased: the five largest customers represented 46% of revenue, versus 37% a year earlier, while Customer A alone accounted for 16%. Loss, payment default, or lower volumes from a major EPC, developer, or owner could materially affect sales and cash flow.
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Tariff and shipping-cost volatility
Trade and logistics exposure remains elevated. The filing cites 50% Section 232 tariffs on covered steel, aluminum and copper products from April 6, 2026, while freight and logistics costs increased during the quarter amid the U.S.-Iran war; tariffs net of refunds decreased $6.9 million year over year, a benefit that may not recur.
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BESS acquisition and integration risk
Acquisition execution risk increased following the up-to-$365 million Prevalon transaction, including $150 million cash paid at closing and up to $165 million contingent cash consideration. The filing specifically notes heightened BESS integration risks involving battery cells, management systems, power-conversion equipment and possible thermal or fire events.
Management's outlook
The 10-Q contains no explicit quantitative revenue or EPS guidance. Management said existing cash flow and committed liquidity should fund operations, planned capital expenditures, investments, debt service and Tax Receivable Agreement payments for at least the next 12 months.
Earlier filings 4
10-Q · January 30, 2026
Nextpower reported a strong top-line quarter with revenue of $909,352 (as presented) versus $679,363 in the prior-year quarter and three-month net income of $131,236. Margins compressed: gross margin fell to 31.7% from…
10-Q · October 30, 2025
Nextracker reported revenue of $905,268,000 for the three months ended September 26, 2025, up 42% year-over-year and up 4.7% sequentially. Gross margin compressed to 32.4% and operating margin to 20.0%, while diluted…
10-Q · August 1, 2025
Nextracker reported quarter revenue of $864,253,000 (up from $719,921,000 a year ago) and diluted EPS of $1.04 (vs $0.84 a year ago). Gross margin compressed modestly to 32.6% (from 33.0%) and operating margin to ~21.6%…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.