Shares of Sunnova Energy International cratered in premarket trading Monday after the company issued a warning about its working capital in its fourth-quarter earnings report.
The stock plunged 32.5% after Sunnova Energy said its unrestricted cash, cash flows from operating activities, and commitments under existing financing agreements were “not sufficient to meet obligations and fund operations.”
Sunnova said it had initiated certain aspects of a plan detailed in its latest Form 10-K, which included hiring a financial advisor to assist in its debt management and refinancing efforts.
However, “management cannot conclude completing future components of its plans are probable at this time as certain aspects of these plans are, at least in part, beyond management’s unilateral control,” Sunnova wrote.
“Therefore, substantial doubt exists regarding our ability to continue as a going concern for a period of at least one year from the date we issue our consolidated financial statements.”
For the fourth quarter, Sunnova reported a net loss of $127.7 million, narrower than the $234.8 million loss reported a year earlier.
The Houston-based company was founded in 2012, offering solar panel installations and energy storage services. The Better Business Bureau last accredited Sunnova in 2019 and issued a formal alert following hundreds of customer complaints.
