Key Highlights

  • Third quarter Revenue was USD 195.3 million against USD 135.8 million a year earlier, a calculated rise of about 43.8%, while Net Income reached USD 17.9 million, or USD 0.11 per diluted share.
  • Shoals Technologies Group (NASDAQ:SHLS) agreed an all-stock Merger with ARRAY Technologies, with each Shoals share exchanged for 1.6931 ARRAY shares and Shoals holders owning about 65% of the combined company.
  • Gross profit rose to USD 62.4 million from USD 50.3 million, but the calculated gross Margin slipped to about 31.9% from 37.0% as cost of revenue grew faster than sales.
  • Management expects more than USD 20 million of annual savings from removing duplicate public company and corporate costs, with closing targeted for the first quarter of 2027.

Quarterly Results Behind the ARRAY Announcement

Shoals Technologies Group (NASDAQ:SHLS) filed its Quarterly Report on November 4, 2026, the day it announced the merger. Revenue for the three months to September 30, 2026 was USD 195.3 million, and nine-month revenue was USD 499.2 million against USD 327.0 million. Income from operations rose to USD 29.0 million from USD 18.7 million, and net income was USD 17.9 million versus USD 11.9 million. Diluted Earnings per Share were USD 0.11 against USD 0.07, and nine-month net income was USD 29.7 million against USD 25.5 million. Interest expense rose to USD 3.9 million from USD 2.8 million. The company supplies electrical balance of systems products for utility-scale solar projects, including its BLA solution.

Merger Terms: 1.6931 ARRAY Shares per Shoals Share

Under the agreement, ARRAY Technologies will be the surviving Legal entity and its stock will be the Equity of the combined company, but Shoals holders are to own about 65% of basic shares. Management said the structure avoids refinancing ARRAY's existing debt. Brandon Moss is to be chief executive, Brad Forth chairman, and the board will have 10 directors. A new corporate name and ticker are planned in the coming months. ARRAY also plans to redeem USD 161.3 million of preferred stock within 90 days of closing, with a further USD 156.3 million over three years. Shoals cited about USD 1.6 billion of tax amortization and USD 237 million of net operating losses.

Margin Squeeze, Debt and Closing Conditions

Cost of revenue rose to USD 132.9 million from USD 85.6 million, which explains the margin slip. Inventory climbed to USD 148.3 million from USD 89.9 million at year end, cash was USD 7.7 million, and the revolving line of Credit stood at USD 163.8 million. Litigation settlement expense was USD 1.0 million in the quarter and USD 6.25 million for nine months, and the filing flags a wire insulation shrinkback matter. Because the exchange ratio is fixed, the value Shoals holders receive will move with ARRAY's share price. Closing needs approval from both Shareholder groups and regulators, and the filing lists litigation, delay and integration among the risks if the deal falters.

Where Things Stand

The merger is the larger story, with the quarter as supporting evidence. Shoals Technologies Group (NASDAQ:SHLS) is combining with ARRAY to offer an integrated solar equipment platform, while its own results showed higher sales and profit but lower gross margin. Next markers are the joint proxy filing, expected in the coming weeks, the shareholder votes, regulatory approvals and a closing targeted for the first quarter of 2027. No price reaction was in the material reviewed.