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Shoals Technologies posts strong Q2 with 47.4% revenue growth but shares drop 6%.

Company Fundamentals
05 Aug 2026
Seeking Alpha
View Source
Bullish
Shoals Technologies posts strong Q2 with 47.4% revenue growth but shares drop 6%.

Shoals Technologies reported a strong Q2 FY26 with revenue up 47.4% year-over-year and a record backlog of $801 million, signaling robust demand. Despite these positive results and guidance for improved margins in Q3, the company's shares fell 6%, partly due to margin pressures from tariffs and ramp-up costs. The company’s BESS segment and solid EBOS foundation position it well for long-term growth, especially with rising energy demand driven by AI. Valuation metrics suggest Shoals is undervalued, supporting a 'Buy' rating based on improving margins and growth prospects.

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