The following is a transcript from the AMA event held on April 28th at 12pm EST https://ceo.ca/~sunama
CEO.CA would like to welcome Erica Bearss, VP Corporate Communications of Stardust Solar Energy Inc.to today’s Ask Me Anything session.
Before we start since I’m new here, can you explain in simple terms what Stardust actually does and how you make money long term?
Great question. The simplest way to think about us is that we are building a renewable energy platform with recurring revenue at its core, with a clear strategy to scale that model globally.
We operate through a franchise model, where local operators install solar, battery storage, and EV infrastructure under our brand. That gives us multiple revenue streams:
• Upfront franchise fees
• Ongoing royalties (~5% of system sales)
• Training and licensing
• Product and equipment distribution
The key is that as the network grows, the royalty layer compounds, and that is high-margin, recurring revenue. We have grown to 100+ territories, and our goal is to expand to 120+ territories this year. We have already made strong progress this year, expanding into Atlanta, Halifax, Arizona, Barrie, and Simcoe County, which puts us in a strong position to continue growing this part of the business.
It is important to note that, at the same time, we are expanding internationally and moving into commercial and utility-scale projects. This adds longer-term contracted revenue. When you layer that onto what is happening in the broader market, where solar is now one of the fastest-growing sources of new electricity globally and expected to become the largest source of installed capacity by 2027. We are confident that it is a strong foundation for long-term growth.
Thank you for the explanation, Erica! Revenue growth looks strong, but you are not yet profitable, what’s the timeline?
You are right, this is a growth-focused strategy with a clear path toward profitability.
We delivered:
• ~29% revenue growth to ~$4.7M
• Gross margin expansion to ~40% (up from ~31%)
• Our first EBITDA-positive quarter in Q3 2025
Those are strong indicators our model is working.
Right now, we are investing in scaling by expanding the network, building infrastructure, and supporting growth as a public company. As our recurring revenue streams continue to grow, especially royalties, we expect that to translate into improving margins. As we continue scaling our franchise network and increasing recurring revenue, we are targeting a transition to profitability this year.
How comfortable are you with your capital position?
We have been very intentional with capital deployment. During the year, we:
• Repaid approximately $755K in debt, strengthening the balance sheet
• Generated ~$1.5M in financing proceeds to support growth
• Continued investing in working capital to support expansion across our franchise network
We are actively strengthening the business while scaling it.
As we continue to build our recurring revenue base, we expect to improve cash flow visibility, which is a key part of our path toward sustainable growth. With continued growth in high-margin recurring revenue and disciplined capital management, we expect to strengthen cash flow to support our path to profitability this year.
Great operating expenses have increased and you have relied on financing, how do you ensure this doesn’t become dilutive or unsustainable?
Fair question, and something we are focused on managing carefully.
We have increased spending in areas that directly support scaling:
• Franchise expansion
• Marketing and lead generation
• Systems, training, and infrastructure
At the same time, we have been disciplined in how we use capital:
• Paying down debt
• Investing in revenue-generating activities
• Building a model that becomes more efficient as it scales
The key shift investors should watch is the growing mix of recurring revenue. As royalties and training revenue increase, they require less incremental capital to grow. So, while financing has supported expansion, the long-term model is designed to reduce reliance on external capital as recurring revenue and margins expand. That is a big part of how we are positioning the business to reach profitability while managing dilution responsibly.
Your model depends heavily on franchisees; how do you support them to ensure they are successful and growing?
That is an important question, because the success of our franchisees is directly tied to our success.
We take a very hands-on approach to supporting our franchise network, especially as they launch to scale their businesses.
We support with:
• Business launch support and onboarding
• Access to training programs and D2D University memberships
• Marketing support - digital campaigns and lead gen
• Sales support, help with closing deals
• Engineering expertise/quoting support
• Ongoing market research and strategic guidance etc.
We are also very focused on building a strong community. We are actually hosting a Power Hour session with our franchisees today to share best practices and strategies. As we grow, we are strengthening our partnership with franchisees by supporting their growth and profitability, because their success drives both their long-term value and our recurring revenue model.
Thank you Erica. The Zambia project sounds interesting, how meaningful is that for the business?
It is a huge step for us. Zambia marks our entry into utility-scale solar, adding long-term, infrastructure-based revenue to the business.
The project is starting with a 30MW project under a 20-year PPA with ZESCO, at approximately US$0.07/kWh, representing ~US$90M in contracted revenue potential. This project offers stable, long-term cash flow and is supported by both government and utility backing, which supports execution and reduces risk.
We see this as a starting point and are already in discussions to expand similar partnerships globally.
On a personal note, this is exciting as I am currently completing my doctorate on the economics of utility-scale solar, which aligns closely with our expansion into larger infrastructure projects. Overall, this represents an expansion of our platform, adding long-term contracted revenue to our existing recurring revenue streams on a global scale.
Please tell us, how realistic is your goal of getting to 120+ franchise territories, and what does that mean financially?
Very. We are already over 100 territories, and with our recent expansions into Atlanta, Arizona, Halifax, Barrie and Simcoe County, we are in a strong position to reach 120+ this year.
From a financial perspective:
- A mature territory generating ~$1M in annual sales = about $50K in royalties
- Scaling that across dozens of territories creates a compounding recurring revenue base
We have already seen strong traction, with franchise fees and royalties growing year-over-year, and as more territories mature, this continues to drive margin expansion and long-term profitability.
My question for management is: I am in BC and with BC Hydro changes and evolving incentives, are you seeing real demand from policy shifts?
Great question, and yes, absolutely. I think it’s important to separate short-term political uncertainty from long-term energy fundamentals. While there have been some policy headwinds in the U.S., including evolving positions on clean energy incentives, the underlying demand for solar, storage, and grid resilience continues to strengthen.
While doing research for my thesis, I was reading the U.S. Energy Information Administration site, which states U.S. electricity demand is expected to rise from a record 4,195 billion kWh in 2025 to 4,244 billion kWh in 2026 and 4,381 billion kWh in 2027. All driven by AI, data centres, electrification, and industrial growth.
and at the global level, the International Energy Agency (IEA) states that electricity demand from data centres is projected to more than double from ~460 TWh in 2024 to over 1,000 TWh by 2030, with renewables expected to supply a significant portion of that growth.
and yes we are also seeing policy evolution at the provincial level. Like you mentioned, BC Hydro is transitioning from its net metering program (Rate Schedule 1289) to a new self-generation service rate (Rate Schedule 2289) effective July 1, 2026. This reflects a broader shift toward modernizing how distributed energy is integrated into the grid.
So, while policy direction can vary in the near term, the energy demand continues to strengthen and accelerate. For us, that provides a clear tailwind for continued growth across:
- Distributed generation
- Energy storage
- Commercial and utility-scale solar
- Grid resilience solutions
Ultimately, this translates into sustained demand, more project opportunities, and continued growth across our network.
What happens if incentives are reduced, does that slow things down?
It can affect short-term timing, but when you step back, the long-term fundamentals continue to strengthen. Solar is now:
- One of the lowest-cost sources of new electricity
- The fastest-growing source of new capacity
- Increasingly competitive without heavy subsidies
Again to quote the IEA, solar PV is expected to nearly triple in capacity by 2027 and become the largest source of installed power globally, surpassing coal. At the same time, high cost declines over the past decade have made solar competitive in many markets without heavy incentives. This is a clear reflection of a long-term structural shift in the global energy mix, not just a short-term trend.
Stardust Solar Energy is also intentionally diversified across regions and revenue streams, so we are not dependent on any single incentive program or policy environment. That combination, strong demand, improving economics, and diversification supports sustained, long-term growth regardless of policy cycles.
Thank you for Erica and are you seeing more opportunity in commercial vs residential right now?
We are seeing strong opportunities in both, but commercial is gaining some serious momentum. Commercial and larger-scale projects,
- Offer higher contract values
- Provide more predictable, longer-term revenue
- Align with ESG targets and corporate sustainability goals and,
- Are increasingly supported by government incentives, tax credits, and corporate decarbonization programs
We are actively supporting our franchisees to pursue and win more commercial projects. Guiding quoting, engineering, financing structures, and sales strategy to help them move into these larger opportunities.
At the same time, residential continues to scale through our franchise model and remains a strong foundation of recurring activity.
Overall, we are building a platform across residential, commercial, and utility scale, which allows us to capture growth across multiple segments and adapt as market demand evolves.
It sounds exciting—what does this look like from an investor perspective over the next 3–5 years?
The vision is to build a globally scalable renewable energy platform with strong recurring revenue, while also helping address the growing gap between energy supply and demand.
This includes:
• A larger, more productive franchise network
• A growing base of recurring royalty income
• Expansion into international and utility-scale markets
• Continued margin expansion as we scale
At the same time, we see a clear opportunity to help fill the energy supply gap being driven by electrification, data centres, and rising global demand by deploying distributed, commercial, and utility-scale solar solutions where they are needed most.
With solar expected to dominate new energy capacity additions globally, we are confident we are well-positioned to grow alongside that trend while contributing to a more resilient and sustainable energy system, while keeping long-term shareholder value a priority.
Erica, where’s the best place to follow updates and stay informed?
I would say, the best place to stay up to date is here: https://stardustsolar.com/investors/#cta
When you join our investor community, we will consistently share:
- Press releases and financial filings
- Investor presentations
- Company news and key milestones
We are also active in investor conferences and regularly engaging with our investor community. From my side, I am always happy to connect directly. If you have any questions or would like to connect, feel free to email me at erica@stardustsolar.com
Thank you so much Erica! Any closing remarks for our investors?
When I look at the business, what’s exciting is how it is all coming together.
Stardust Solar Energy Inc. (TSXV: SUN) (OTCQB: SUNXF) (FSE: 6330) has built a 100+ territory franchise network, with a clear path to 120+ this year, which is driving a growing base of high-margin, recurring royalty revenue.
The company has also trained thousands of solar installers and is continuing to scale its training and licensing platform, creating another high-margin recurring revenue stream while supporting the growth of our network.
For customers, we recently launched a residential solar leasing platform, designed to generate long-term, predictable recurring cash flow and to make solar more accessible to customers without upfront capital.
At the same time, we are expanding into commercial and utility-scale projects, including government- and utility-backed opportunities like Zambia, with more discussions underway globally.
When you combine that with the strong demand for clean energy, our focus is simple. Scale the platform, grow recurring revenue, and drive operating leverage. That is what supports our goal of reaching profitability this year while building long-term shareholder value.
CEO.CA would like to give a big thanks to Erica Bearss, VP Corporate Communications of Stardust Solar Energy for joining us today! A transcript of today’s session will be available shortly. Have a wonderful day everyone!
