SUNL - Why Shares of Sunlight Financial Crashed Today
Shares of the residential solar point-of-sale financing company Sunlight Financial Holdings (NYSE: SUNL) had plunged more than 60% as of 10:30 a.m. ET Thursday after the company announced a surprising impairment charge that will impact its full-year performance.
Sunlight announced late yesterday that one of its solar installation partners is closing up shop due to cash flow issues, which will not allow it to meet financial commitments in the future. Sunlight will take a $30 million to $33 million hit because the company made advancements to this partner.
This is a noncash charge, but Sunlight said it would suffer one-time expenses in relation to solar loans in which installations by this partner may not have passed inspection. Sunlight had roughly $64 million of cash and cash equivalents on its balance sheet as of Sept. 23.
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Why Shares of Sunlight Financial Crashed Today