Stardust Solar reports Q1 2026 results, strengthens financial position

Vancouver, British Columbia--(Newsfile Corp. - June 1, 2026) - Stardust Solar Energy Inc. (TSXV: SUN) (OTCQB: SUNXF) (FSE: 6330) ("Stardust Solar" or the "Company"), a globally expanding renewable energy company supporting the installation, development, training, and deployment of residential, commercial, and utility-scale solar solutions, today announced its financial results for the three months ended March 31, 2026. During the quarter, Stardust strengthened its financial position, expanded its North American franchise network to 106 territories, improved its working capital position by approximately $815,926, maintained strong gross margins of 47.2%, and advanced both commercial and utility-scale solar growth initiatives. The Company also reported an 84% improvement in net loss compared to the first quarter of 2025 and maintained a project backlog of approximately $3.07 million.

The first quarter represented a period of transition across portions of the North American solar industry as markets adapted to changes in government incentive programs introduced in late 2025. During this period, Stardust focused on strengthening its operational foundation, expanding recurring revenue streams, launching new financing solutions for homeowners, advancing commercial solar opportunities, and progressing development of its 30 MW utility-scale solar project in Zambia. The quarter also marked continued execution of the Company's strategy to transition toward higher-margin recurring revenue streams, which represented approximately 56% of total revenue during Q1 2026.

As incentive programs continue to evolve and new commercial opportunities emerge, the Company is seeing increasing sales activity and is well positioned to capitalize on growing demand for renewable energy, energy independence, and long-term electricity cost savings. Q1 2026 Highlights: Revenue of $775,770. Gross margin of ~47%.

Year-over-year quarterly operating expense reduction of $271,326 (75%) Net loss improved to $106,060 from $652,263 in Q1 2025, representing an 84% improvement year-over-year. Generated Working capital of $54,403, improved from a deficit of $761,523 at December 31, 2025. Cash and cash equivalents increased to $420,297 from $264,731 at year-end 2025.

Total assets increased 28% to approximately $1.71 million. Franchise network expanded from 102 to 106 territories. Recurring and franchise-related revenue represented approximately 56% of total revenue.

Project backlog remained strong at approximately $3.07 million. Training and exam administration revenue increased 69% year-over-year. Revenue for the quarter was impacted by project cancellations and purchasing delays associated with changes to government incentive programs introduced in late 2025.

As a result, revenue decreased to $775,770 from $1,003,104 during the same period in 2025. While these policy changes created temporary headwinds across portions of the residential solar market, Stardust focused on strengthening its balance sheet, improving liquidity, expanding its franchise network, and positioning the Company to capitalize on emerging opportunities. The Company is now seeing increasing activity across both residential and commercial markets as customers adapt to the evolving incentive landscape and seek solutions that provide energy independence, long-term electricity cost savings, and protection against rising utility rates.

The Company's education and training division delivered strong growth during the quarter, with revenue increasing 69% year-over-year, reflecting continued demand for renewable energy workforce development and supporting the Company's expanding franchise ecosystem. U.S. franchise operations also continued to gain momentum, generating revenue of $329,237 during Q1 2026 compared to $269,809 during Q1 2025. Stardust continues to expand its participation in larger-scale commercial and industrial solar projects throughout North America.

Rising electricity demand, increasing energy costs, growing corporate sustainability initiatives, and the availability of commercial solar incentives are creating attractive opportunities for businesses seeking to reduce operating expenses and improve energy resilience. With more than 100 franchise territories across North America, the Company is well positioned to pursue commercial opportunities across multiple markets while leveraging the scale and expertise of its growing network. During the quarter, Stardust continued advancing its 30 MW utility-scale solar project in Zambia under a 20-year Power Purchase Agreement.

The Company dedicated significant resources toward project development, engineering, financing activities, and stakeholder engagement to advance the initiative. Management views the Zambia project as an important milestone in Stardust's evolution beyond distributed solar installations into long-term renewable energy infrastructure development. The Company also continued advancing technology and sustainability initiatives, including a mobile certification platform for renewable energy professionals and the exploration of solar panel recycling opportunities that could create additional long-term value within the renewable energy supply chain.

"The first quarter marked a period of transition for the solar industry as markets adapted to evolving policies and incentive programs. Throughout this period, we remained focused on strengthening our balance sheet, expanding our franchise network, advancing commercial solar opportunities, and progressing our utility-scale growth initiatives," said Mark Tadros, Founder and CEO of Stardust Solar Energy. "Our franchise network has grown to 106 territories across North America and international markets, further expanding our recurring royalty platform and future growth potential.

We are seeing increasing sales momentum across both residential and commercial markets and remain focused on disciplined execution, scalable growth, and creating long-term shareholder value." For the balance of 2026, Stardust remains focused on growing recurring franchise royalty revenue, expanding commercial solar project activity, advancing the Zambia utility-scale solar project, scaling its residential solar lease-to-own platform, expanding training and licensing revenues, supporting franchisee growth, and creating long-term shareholder value through disciplined execution. About Stardust Solar Energy Inc. Stardust Solar Energy is a globally expanding renewable energy company supporting the installation, development, training, and deployment of residential, commercial, and utility-scale solar solutions across international markets. The Company operates a diversified solar royalty platform generating recurring revenue through franchise installation operations, accredited training and development licenses and subscriptions, and technology-driven innovation initiatives.

Through formal engagement with governments, utilities, and commercial stakeholders, the Company is scaling renewable energy capacity worldwide. Media and Investor Contacts Erica Bearss, MBA, DBA (c) VP Corporate Communications investors@stardustsolar.com www.stardustsolar.com Stardust Solar Energy Inc. B101-9000 Bill Fox Way, Burnaby BC V5J 5J3 - Canada 732 S 6th St, STE N, Las Vegas, NV 89101 Follow us on > Facebook / LinkedIn / Instagram TSXV: SUN | OTCQB: SUNXF | FSE: 6330 To view the source version of this press release, please visit https://www.newsfilecorp.com/release/299709 Newsfile Corp. June 1, 2026 - 1:33 PM PDT News by QuoteMedia www.quotemedia.com