SUNL - Sunlight Financial stock tumbles 15% postmarket after FY guidance withdrawn

• Sunlight Financial ( NYSE: SUNL ) stock tumbled 15.1% after the bell on Wednesday as the point-of-sale finance company withdrew its FY22 guidance as an installer liquidity event and volatile interest rates are expected to impact results.
• One of SUNL's largest solar installers is in the process of winding down operations due to cash flow issues, which will likely restrict its ability to meet its financial obligations.
• SUNL expects to impair $30M-$33M in advances to that installer on its balance sheet as of Sept. 30.
• The firm also expects to incur certain non-recurring costs related to its facilitation of solar loans where installations may not have completed inspections.
• SUNL has ~$64M cash and cash equivalents as of Sept. 23.
• "While our risk exposure with other contractor advances is much smaller (the next three largest partner advances being $10M, $7M and $5M, respectively), we are re-underwriting all contractor partners' advances to further mitigate risk going forward," said SUNL CEO Matt Potere.
• Shares of SUNL declined ~47% YTD.

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