Zeo Stock Falls 49.5% Despite Reporting Narrower Y/Y Loss in Q2

Zeo Energy Corp. (ZEO) shares fell 49.5% after reporting Q2 2026 results showing a 10.7% revenue decline to $16.2 million due to fewer solar installations. The company faced margin compression, with gross margin contracting to 47.1% from 59.8%, and adjusted EBITDA swung to a $2.1 million loss. However, management remains optimistic about growth prospects, citing sequential revenue improvements and better tax-equity availability for residential solar expansion.