Charged Up: Backlog Conversion and New Markets Power SHLS Higher

Research evidence excerpt

Charged Up: Backlog Conversion and New Markets Power SHLS Higher

t mix, (3) Recent favorable ITC ruling and potential damage recovery, and (4) Core

Exhibit 1 - SHLS discount vs. peers hasutility-scale solar market. improved by 60pps in recent months

SHLS vs NXT/ARRY EV/EBITDA CY3

50.0%Margin degradation had driven weakness in shares in 1Q and potential recovery in margin will remain 40.0%

key to watch in near term. We see various puts and takes, with potential for higher pricing, progress in 30.0%

Premium/ 20.0%10.0%0.0%BESS/data center solutions, opex leverage and IEEPA reversal all creating a backdrop for margin upside. -10.0%

(Discount) -20.0%-30.0%Expect an offset from product mix (long-tail BLA, OEM driven by FSLR and Intl.). Strength in margins will -40.0%

-50.0%

Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 Dec-25 Mar-26 Jun-26ultimately depend on the success of new end markets, offsetting near term product mix drag. Prem/(Disc.) Median Stdev. +1 Stdev. -1

.

Source: JEF Research, FactSet

Recent ITC Ruling Is Favorable NT. On June 25th, the US ITC (International Trade Commission) Core solar end market remains intact and

delivered final determination in favor of SHLS, ruling that Voltage has violated Section 337 and ability to scale into the datacenters and

infringed on SHLS's patent. Importantly, SHLS will be pursuing lost profits and additional royalty Julien Dumoulin-Smith * | Equity Analyst +1BESS(281)remains774-2066 a| jds@jefferies.comkey point of focus. Positive

claims in parallel in N.C district court. Positive for SHLS in easing the competitive environment near backdrop; see competitive landscape as

term, that said, Voltage's LYNX PLUS remains unimpacted by the recent ruling.