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Canadian Solar Reports Third Quarter 2025 Results

1. CSIQ reported Q3 2025 revenues of $1.5 billion, at the high end of guidance. 2. Gross margin reached 17.2%, exceeding previous guidance of 14% to 16%. 3. Battery storage shipments hit a record 2.7 GWh, above forecast of 2.1-2.3 GWh. 4. Contracted backlog for e-STORAGE expanded to $3.1 billion as of October 31, 2025. 5. Production for U.S. manufacturing facilities is set to begin in 2026.

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Why Bullish?

Exceeding revenue and margin guidance demonstrates strong operational performance, likely boosting investor confidence. Comparatively, similar past instances led to positive price movements in CSIQ stock.

How important is it?

Positive financial results and growth potential in the battery storage sector are critical for CSIQ's continued expansion in competitive markets.

Why Short Term?

Recent earnings beats usually have an immediate effect; the improved earnings outlook could draw investor attention quickly.

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SYYENPHRUNJKSSOL
, /PRNewswire/ -- Canadian Solar Inc. ("Canadian Solar" or the "Company") (NASDAQ: CSIQ) today announced financial results for the third quarter ended September 30, 2025. Third  Quarter Highlights Net revenues of $1.5 billion, at the high end of $1.3 billion to $1.5 billion guidance. 17.2% gross margin, exceeding guidance of 14% to 16%. e-STORAGE achieved record 2.7 GWh in quarterly battery energy storage shipments, above guidance of 2.1 GWh to 2.3 GWh. e-STORAGE's contracted backlog increased to $3.1 billion, as of October 31, 2025. Phase I of the solar cell factory in Indiana, U.S. is expected to begin production in March 2026. Phase I of the lithium battery energy storage factory in Kentucky, U.S. is expected to commence production in December 2026. Dr. Shawn Qu, Chairman and CEO, commented, "Third quarter revenue was at the high end of guidance, while gross margin exceeded expectations, supported by strong energy storage deliveries and a high mix of module shipments to profitable markets. Demand for energy storage continues to grow, driven by emerging applications such as data centers. We are managing the business with discipline, prioritizing profitability and investing strategically to ensure the resilience of our operations. I am pleased to share that our residential energy storage business is on track to become profitable in 2025. At the same time, we are making strong progress on our manufacturing facilities in the U.S. Construction of our solar cell factory in Indiana and our integrated lithium battery cell, pack, and BESS factory in Kentucky is progressing as planned, with production expected to commence in the first and fourth quarters of 2026, respectively." Yan Zhuang, President of Canadian Solar's subsidiary CSI Solar, said, "We delivered a sequentially higher share of module shipments to the profitable North American market. Our Mesquite factory, which has now successfully ramped up, contributed meaningfully to both shipment volume and profitability. In our energy storage business, earlier deliveries to two projects shifted certain volumes from the fourth quarter into the third, resulting in a record quarter of 2.7 GWh in shipments. While our $3.1 billion utility-scale storage backlog provides line of sight to future growth, we also continue to develop our offerings and capabilities in C&I and residential storage, segments which we expect will contribute more meaningfully to profitability next year. Looking ahead, we expect further profitability improvements, as we begin production of solar cells and lithium battery energy storage products in the U.S." Ismael Guerrero, CEO of Canadian Solar's subsidiary Recurrent Energy, said, "Profitability improved sequentially, driven by higher margin contributions from this quarter's project sales. These included the profitable sales of an energy storage project in Italy and a hybrid project in Australia. Until our IPP business scales further—expanding electricity sales and power services as recurring revenue streams—near-term profitability will continue to depend primarily on global project sales. Maintaining financial discipline remains our top priority. We will balance the growth of our operating portfolio and selective project ownership sales to prudently manage cash flow and debt levels. Looking ahead to 2026, we expect to tip this balance more toward project ownership sales to enhance cash recycling and reduce leverage." Xinbo Zhu, Senior VP and CFO, added, "In the third quarter, we achieved revenue of $1.5 billion, at the high end of guidance, and delivered a gross margin of 17.2%, exceeding expectations. Operating expenses normalized with the absence of one-time items, resulting in net income attributable to shareholders of $9 million. With continued discipline in working capital management and prudent pacing of project construction, we ended the quarter with a cash position of $2.2 billion." Third  Quarter 2025 Results Total module shipments recognized as revenues in Q3 2025 were 5.1 GW, down 35% quarter-over-quarter ("qoq") and down 39% year-over-year ("yoy"). Of the total, 33 MW were shipped to the Company's own utility-scale solar power projects. Net revenues were $1.5 billion in Q3 2025, down 12% sequentially and 1% yoy, mainly due to lower sales of solar modules partially offset by higher sales of battery energy storage systems. Gross profit was $256 million, compared to $505 million in Q2 2025 and $247 million in Q3 2024. Gross margin was 17.2%, compared to 29.8% and 16.4%, respectively. The sequential decrease in gross margin was primarily due to the absence of a release of profit upon sales-type leasing of a U.S. project in Q2. The yoy increase was driven by a higher contribution from battery energy storage systems, which have delivered a more favorable margin profile than solar modules on a blended basis. Operating expenses were $222 million, down from $378 million in Q2 2025 and $247 million in Q3 2024 due to ongoing cost reductions and absence of impairment charges related to certain solar and storage assets, as well as manufacturing assets. Operating expenses represented 14.9% of revenue, compared to 22.3% in Q2 2025 and 16.4% in Q3 2024. Net income attributable to Canadian Solar in accordance with generally accepted accounting principles in the United States of America ("GAAP") in Q3 2025 was $9 million, or a net loss of $0.07 per diluted share, compared to a net income of $7 million, or a net loss of $0.08 per diluted share, in the Q2 2025, and net loss of $14 million, or $0.31 per diluted share, in Q3 2024. Net loss per diluted share includes the dilutive effect of convertible bonds and Recurrent Energy redeemable preferred shares dividends, as applicable. Adjusted net loss attributable to Canadian Solar Inc. (non-GAAP) was $26 million, and adjusted loss per share - diluted was $0.58 per share in Q3 2025, compared to an adjusted net loss of $23 million and adjusted loss per share - diluted of $0.53 per share in Q2 2025, and a net loss of $14 million or $0.31 per share in Q3 2024. Adjusted net loss attributable to Canadian Solar Inc. and adjusted loss per share - diluted in Q3 2025 and Q2 2025 exclude the recognition of income using hypothetical liquidation at book value ("HLBV") method. The Company uses the HLBV method to attribute income and loss to its tax equity investors. Please see Recurrent Energy - HLBV for definition and About Non-GAAP Financial Measures for reconciliation to nearest GAAP measures. Net cash flow used in operating activities in Q3 2025 was $112 million, driven by changes in working capital, specifically a decrease in inventories during the prior quarter, compared to net cash flow provided by operating activities of $189 million in Q2 2025 and net cash flow used in operating activities of $231 million in Q3 2024. Total debt, including financing liabilities, was $6.4 billion as of September 30, 2025, including $2.7 billion, $3.5 billion, and $0.2 billion related to CSI Solar, Recurrent Energy, and convertible notes, respectively. Total debt rose from $6.3 billion as of June 30, 2025, mainly due to new borrowings for development of projects and operational assets. Total non-recourse debt as of September 30, 2025, was $2.0 billion. Business Segments The Company operates in two reportable segments: CSI Solar, focused on solar modules and battery energy storage manufacturing and products, and Recurrent Energy, focused on utility-scale solar power and battery energy storage project development and operation. Recurrent Energy As of September 30, 2025, the Company held a leading position with a total global solar project development pipeline of approximately 25 GWp and a battery energy storage project development pipeline of 81 GWh. The business model consists of three key drivers: Electricity revenue from operating portfolio to drive stable, diversified cash flows in growth markets with stable currencies, with some project ownership sales to manage cash flow and debt level; Asset sales (solar power and battery energy storage) in the rest of the world to drive cash-efficient growth model, as value from project sales will help fund growth in operating assets in stable currency markets; and Power services (O&M) through long-term operations and maintenance ("O&M") contracts, currently with over 14 GW of contracted projects, to drive stable and long-term recurring earnings and synergies with the project development platform. Project Development Pipeline – Solar As of September 30, 2025, the Company's total solar project development pipeline was 25.1 GWp, including 2.0 GWp under construction, 3.4 GWp of backlog, and 19.7 GWp of projects in advanced and early-stage development, defined as follows: Backlog projects are late-stage projects that have passed their risk cliff date and are expected to start construction in the next 1-4 years. A project's risk cliff date is the date on which the project passes the last high-risk development stage and varies depending on the country where it is located. Typically, this occurs after the project has received all the required environmental and regulatory approvals, and entered into interconnection agreements and offtake contracts, including feed-in tariff ("FIT") arrangements and power purchase agreements ("PPAs"). A significant majority of backlog projects are contracted (i.e., have secured a PPA or FIT), and the remaining have a reasonable assurance of securing PPAs. Advanced pipeline projects are mid-stage projects that have secured or have more than 90% certainty of securing an interconnection agreement. Early-stage pipeline projects are early-stage projects controlled by the Company that are in the process of securing interconnection. While the magnitude of the Company's project development pipeline is an important indicator of potential expanded power generation and battery energy storage capacity as well as potential future revenue growth, the development of projects in its pipeline is inherently uncertain. If the Company does not successfully complete the pipeline projects in a timely manner, it may not realize the anticipated benefits of the projects to the extent anticipated, which could adversely affect its business, financial condition, or results of operations. In addition, the Company's guidance and estimates for its future operating and financial results assume the completion of certain solar projects and battery energy storage projects that are in its pipeline. If the Company is unable to execute on its actionable pipeline, it may miss its guidance, which could adversely affect the market price of its common shares and its business, financial condition, or results of operations. HLBV The Company applies the HLBV method to account for its contractual relationships with tax equity investors in U.S. solar energy and battery energy storage projects. This method which allocates income or loss attributable to redeemable noncontrolling interests reflects the changes in the amounts that tax equity investors would hypothetically receive upon liquidation at the beginning and end of each reporting period, after considering any capital transactions, such as contributions or distributions, between the subsidiaries and tax equity investors. The following table presents the Company's total solar project development pipeline. Solar Project Development Pipeline (as of September 30 , 202 5 ) – MWp* Region Under Construction Backlog Advanced Development Early-Stage Development Total North America 276 556 427 4,341 5,600 Europe, the Middle East, and Africa("EMEA") 1,108 1,687** 785 4,616 8,196 Latin America 128** 374 352 5,866 6,720 Asia Pacific excluding China and Japan 171 - 466 1,164 1,801 China 300 735** - 1,470 2,505 Japan 49 56 80 103 288 Total 2,032 3,408 2,110 17,560 25,110 *All numbers are gross MWp. **Including 63  MWp under construction and 483  MWp in backlog that are owned by or already sold to third parties. Project Development Pipeline – Battery Energy Storage As of September 30, 2025, the Company's total battery energy storage project development pipeline was 80.6 GWh, including 6.5 GWh under construction and in backlog, and 74.1 GWh of projects in advanced and early-stage development. The table below sets forth the Company's total battery energy storage project development pipeline. Battery Energy Storage  Project Development Pipeline (as of September 30, 2025) – MWh Region Under Construction Backlog Advanced Development Early-Stage Development Total North America 600 200 600 22,932 24,332 EMEA 43 2,590 3,829 30,590 37,052 Latin America - - 1,320 1,825 3,145 Asia Pacific excluding China and Japan 440 240 500 2,580 3,760 China - 1,260 - 6,500 7,760 Japan 8 1,140 1,731 1,650 4,529 Total 1,091 5,430 7,980 66,077 80,578 CSI Solar Solar Modules and Solar System Kits CSI Solar shipped 5.1 GW of solar modules and solar system kits to more than 60 countries in Q3 2025. The top five markets ranked by shipments were the U.S., China, Spain, Pakistan, and South Africa. CSI Solar's revised manufacturing capacity expansion targets are set forth below. Solar Manufacturing Capacity, GW* December 2025 Plan December 2026 Plan Ingot 31.0 31.0 Wafer 37.0 33.2 Cell 32.4 33.2 Module 51.3 55.8 *Nameplate annualized capacities at said point in time. Capacity expansion plans are subject to change without notice based on market conditions and capital allocation plans.  e-STORAGE: Battery Energy Storage Solutions As of October 31 , 202 5 , e-STORAGE  contracted backlog, including contracted long-term service agreements, was $3 .1  billion. These are signed orders with contractual obligations to customers, providing significant earnings visibility over a multi-year period. The table below sets forth e-STORAGE's manufacturing capacity expansion targets. e-STORAGE Manufacturing Capacity Expansion Plans* December 2025 Plan December 2026Plan SolBank Battery Energy Storage Solutions (GWh) 15 24 Battery Cells (GWh) 3 9 *BESS and battery cell nameplate capacities are shown on a single-shift and double-shift annualized basis, respectively, as of the indicated dates. Capacity expansion plans are subject to change without notice based on market conditions and capital allocation plans.  Business Outlook The Company's business outlook is based on management's current views and estimates given factors such as existing market conditions, order book, production capacity, input material prices, foreign exchange fluctuations, the anticipated timing of project sales, and the global economic environment. This outlook is subject to uncertainty with respect to, among other things, customer demand, project construction and sale schedules, product sales prices and costs, supply chain constraints, and geopolitical conflicts. Management's views and estimates are subject to change without notice. In Q4 2025, the Company expects total revenue to be in the range of $1.3 billion to $1.5 billion. Gross margin is expected to be between 14% and 16%. Total module shipments recognized as revenues by CSI Solar are expected to be in the range of 4.6 GW to 4.8 GW. Total battery energy storage shipments by CSI Solar in Q4 2025 are expected to be in the range of 2.1 GWh to 2.3 GWh, including approximately 600 MWh to the Company's own projects. For the full year of 2026, the Company expects CSI Solar's total module shipments to be in the range of 25 GW to 30 GW, including approximately 1 GW to the Company's projects. CSI Solar's total battery energy storage shipments are expected to be in the range of 14 GWh to 17 GWh. Dr. Shawn Qu, Chairman and CEO, commented, "We will continue to focus on profitable solar markets and to manage volumes in less profitable regions. In contrast, demand for energy storage remains robust, supported by healthy market fundamentals and growing applications. Our 2026 full year storage outlook reflects strong year-over-year growth, backed by contracted volumes and visibility into customers' development pipelines. We also expect to begin production of solar cells and lithium battery energy storage products in the U.S. next year. Financial prudence remains our top priority. Accordingly, Recurrent Energy will increase project ownership sales in 2026 to recycle capital and manage the overall debt level." Recent Developments Canadian Solar On September 11, 2025, Canadian Solar announced it was named a Tier 1 PV module supplier and a Tier 1 Battery Energy Storage System supplier in the inaugural 2025 Tier 1 Cleantech Companies list released by S&P Global Commodity Insights. This dual recognition places Canadian Solar among the elite global providers excelling in both photovoltaic modules and energy storage solutions. CSI Solar On November 12, 2025, Canadian Solar announced it was contracted to provide a fully integrated energy storage solution and turnkey EPC services for the 411 MW / 1,560 MWh Skyview 2 Energy Storage Project in Edwardsburgh Cardinal, Ontario, Canada. Shipments of its SolBank 3.0 solution are expected to begin in February 2026, with commercial operation planned for the second quarter of 2027. On November 12, 2025, Canadian Solar announced it signed a battery energy storage system supply agreement for a 20.7 MW / 56 MWh DC energy storage project in Lower Saxony, Germany. The agreement also includes a 20-year long-term service agreement. On October 21, 2025, Canadian Solar announced it achieved commercial operation of the 220 MWh DC Mannum Battery Energy Storage Project in South Australia. e-STORAGE served as the EPC provider for the project, which is owned by Epic Energy and was developed by Recurrent Energy. The Company has further strengthened its track record in delivering large-scale storage solutions by commissioning the project in Australia. On October 1, 2025, Canadian Solar announced it entered into battery storage agreement and long-term services agreements with Aypa Power for the Elora and Hedley battery energy storage projects in Ontario, Canada. Together, the Elora and Hedley projects will provide 420 MW / 2,122 MWh of new storage capacity to Ontario's grid. Delivery is scheduled to commence in the first quarter of 2026, with commercial operation expected in the first half of 2027. On September 8, 2025, Canadian Solar announced the launch of its next-generation Low Carbon modules, which combine the latest wafer innovations with advanced heterojunction (HJT) cell technology. Designed for utility-scale and C&I applications, the new LC modules deliver up to 660 Wp output with module efficiency of up to 24.4%, with deliveries commencing in August 2025. On September 4, 2025, Canadian Solar announced the launch of its next generation modular battery, FlexBank 1.0, at RE+ in Las Vegas. Delivering up to 8.36 MWh energy capacity, FlexBank 1.0 is a scalable energy storage platform for utility-scale applications. The new system is expected to be ready for deployment in 2026. Recurrent Energy On October 21, 2025, Canadian Solar announced it closed $825 million in construction financing and tax equity for its 600 MWh Desert Bloom Storage and 150 MWac Papago Solar facilities. Nord/LB, Mitsubishi UFJ Financial Group, Inc., CoBank, and Siemens Financial Services provided the construction financing, and Wells Fargo provided the tax equity. Desert Bloom Storage and Papago Solar are part of Recurrent Energy's multi-project partnership with Arizona Public Service. Both assets are currently under construction and are expected to begin operations in the first half of 2026. Conference Call Information The Company will hold a conference call on Thursday, November 13, 2025, at 8:00 a.m. U.S. Eastern Time (9:00 p.m., Thursday, November 13, 2025, in Hong Kong) to discuss the Company's third quarter 2025 results and business outlook. The dial-in phone number for the live audio call is +1-877-300-8521 (toll-free from the U.S.), 800 905 945 (from Hong Kong), 400 120 1203 (local dial-in from Mainland China) or +1-412-317-6026 from international locations. The conference ID is 10203526. A live webcast of the conference call will also be available on the investor relations section of Canadian Solar's website at www.canadiansolar.com. A replay of the call will be available after the conclusion of the call until 11:00 p.m. U.S. Eastern Time on Thursday, November 27, 2025 (12:00 p.m. November 28, 2025, in Hong Kong) and can be accessed by dialing +1-844-512-2921 (toll-free from the U.S.) or +1-412-317-6671 from international locations. The replay pin number is 10203526. A webcast replay will also be available on the investor relations section of Canadian Solar's at www.canadiansolar.com About Canadian Solar Inc. Canadian Solar is one of the world's largest solar technology and renewable energy companies. Founded in 2001 and headquartered in Kitchener, Ontario, the Company is a leading manufacturer of solar photovoltaic modules; provider of solar energy and battery energy storage solutions; and developer, owner, and operator of utility-scale solar power and battery energy storage projects. Over the past 24 years, Canadian Solar has successfully delivered nearly 170 GW of premium-quality, solar photovoltaic modules to customers across the world. Through its subsidiary e-STORAGE, Canadian Solar has shipped over 16 GWh of battery energy storage solutions to global markets as of September 30, 2025, boasting a $3.1 billion contracted backlog as of October 31, 2025. Since entering the project development business in 2010, Canadian Solar has developed, built, and connected approximately 12 GWp of solar power projects and 6 GWh of battery energy storage projects globally. Its geographically diversified project development pipeline includes 25 GWp of solar and 81 GWh of battery energy storage capacity in various stages of development. Canadian Solar is one of the most bankable companies in the solar and renewable energy industry, having been publicly listed on the NASDAQ since 2006. For additional information about the Company, follow Canadian Solar on LinkedIn or visit www.canadiansolar.com. Safe Harbor/Forward-Looking Statements Certain statements in this press release, including those regarding the Company's expected future shipment volumes, revenues, gross margins, and project sales are forward-looking statements that involve a number of risks and uncertainties that could cause actual results to differ materially. These statements are made under the "Safe Harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by such terms as "may", "will", "expect", "anticipate", "future", "ongoing", "continue", "intend", "plan", "potential", "prospect", "guidance", "believe", "estimate", "is/are likely to" or similar expressions, the negative of these terms, or other comparable terminology. These forward-looking statements include, among other things, our expectations regarding global electricity demand and the adoption of solar and battery energy storage technologies; our growth strategies, future business performance, and financial condition; our transition to a long-term owner and operator of clean energy assets and expansion of project pipelines; our ability to monetize project portfolios, manage supply chain fluctuations, and respond to economic factors such as inflation and interest rates; our outlook on government incentives, trade measures, regulatory developments, and geopolitical risks; our expectations for project timelines, costs, and returns; competitive dynamics in solar and storage markets; our ability to execute supply chain, manufacturing, and operational initiatives; access to capital, debt obligations, and covenant compliance; relationships with key suppliers and customers; technological advancement and product quality; and risks related to intellectual property, litigation, and compliance with environmental and sustainability regulations. Other risks were described in the Company's filings with the Securities and Exchange Commission, including its annual report on Form 20-F filed on April 30, 2025. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, level of activity, performance, or achievements. Investors should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today's date, unless otherwise stated, and Canadian Solar undertakes no duty to update such information, except as required under applicable law. Investor Relations Contact: FINANCIAL TABLES FOLLOW The following tables provide unaudited select financial data for the Company's CSI Solar and Recurrent Energy businesses. Select Financial Data – CSI Solar and Recurrent Energy Three Months Ended and As of September  30, 2025 (In Thousands of U.S. Dollars) CSI Solar Recurrent Energy Elimination and unallocateditems Total Net revenues  $ 1,426,491 $ 105,200 $ (44,289) $ 1,487,402 Cost of revenues 1,212,128 56,710 (37,737) 1,231,101 Gross profit 214,363 48,490 (6,552) 256,301 Operating expenses 175,651 45,733 328 221,712 Income (loss) from    operations 38,712 2,757 (6,880) 34,589 Other segment items (1) (42,205) Loss before income taxes    and equity in losses of    affiliates (7,616) Supplementary Information: Interest expense $ (16,510) $ (22,637) $ (5,267) $ (44,414) Interest income 12,215 1,112 1,751 15,078 Depreciation and    amortization, included in    cost of revenues and    operating expenses 117,184 15,601 — 132,785 Cash and cash equivalents $ 1,447,428 $ 290,218 $ 25,665 $ 1,763,311 Restricted cash – current and    non-current 386,130 30,490 — 416,620 Non-recourse borrowings — 1,952,303 — 1,952,303 Other short-term and long-   term borrowings 2,590,436 1,385,118 — 3,975,554 Convertible notes – non-   current — — 194,751 194,751 Green bonds – current and    non-current — 160,056 — 160,056 Select Financial Data – CSI Solar and Recurrent Energy Nine Months Ended September 30, 2025 (In Thousands of U.S. Dollars) CSI Solar Recurrent Energy Elimination and unallocateditems Total Net revenues  $ 4,348,552 $ 336,577 $ (307,231) $ 4,377,898 Cost of revenues 3,589,096 230,425 (343,448) 3,476,073 Gross profit 759,456 106,152 36,217 901,825 Operating expenses 598,167 189,829 6,612 794,608 Income (loss) from operations 161,289 (83,677) 29,605 107,217 Other segment items (1) (129,430) Loss before income taxes and    equity in losses of affiliates (22,213) Supplementary Information: Interest expense $ (49,375) $ (69,127) $ (11,206) $ (129,708) Interest income 27,553 7,086 2,455 37,094 Depreciation and amortization,    included in cost of revenues    and operating expenses 378,460 43,817 — 422,277 (1) Includes interest expense, net, loss on change in fair value of derivatives, net, foreign exchange loss, net and investment income, net. The following table summarizes the revenues generated from each product or service. Three Months Ended September  30, 2025 Three Months Ended June 30 , 2025 Three Months Ended September  30, 202 4 (In Thousands of U.S. Dollars) CSI Solar: Solar modules $ 839,421 $ 1,022,266 $ 1,217,157 Solar system kits 29,874 73,812 106,438 Battery energy storage solutions 486,033 432,399 95,384 EPC and others 29,793 61,613 43,589 Subtotal 1,385,121 1,590,090 1,462,568 Recurrent Energy: Solar power and battery energy storage asset sales 39,770 48,091 — Power services 19,892 18,809 20,698 Revenue from electricity, battery energy storage operations and others 42,619 36,881 24,358 Subtotal 102,281 103,781 45,056 Total net revenues $ 1,487,402 $ 1,693,871 $ 1,507,624 Nine  Months Ended September  30, 2025 Nine  Months Ended September  30, 2024 (In Thousands of U.S. Dollars) CSI Solar: Solar modules $ 2,659,109 $ 3,337,123 Solar system kits 189,212 320,554 Battery energy storage solutions 1,073,742 572,662 EPC and others 126,443 106,815 Subtotal 4,048,506 4,337,154 Recurrent Energy: Solar power and battery energy storage asset sales 160,012 18,796 Power services 55,200 55,210 Revenue from electricity, battery energy storage operations and others 114,180 61,008 Subtotal 329,392 135,014 Total net revenues $ 4,377,898 $ 4,472,168 Canadian Solar Inc. Unaudited Condensed Consolidated Statements of Operations (In Thousands of U.S. Dollars, Except Share and Per Share Data) Three Months Ended Nine  Months Ended September 30, June 30, September 30, September 30, September 30, 2025 2025 2024 2025 2024 Net revenues $ 1,487,402 $ 1,693,871 $ 1,507,624 $ 4,377,898 $ 4,472,168 Cost of revenues 1,231,101 1,188,841 1,260,188 3,476,073 3,689,885 Gross profit 256,301 505,030 247,436 901,825 782,283 Operating expenses: Selling and distribution expenses 101,298 109,479 136,172 301,544 356,276 General and administrative expenses 116,539 252,671 99,989 474,861 295,593 Research and development expenses 19,999 24,719 30,459 69,002 90,316 Other operating income, net (16,124) (9,272) (19,478) (50,799) (56,918) Total operating expenses 221,712 377,597 247,142 794,608 685,267 Income from operations 34,589 127,433 294 107,217 97,016 Other income (expenses): Interest expense (44,414) (44,807) (34,184) (129,708) (102,073) Interest income 15,078 9,920 13,745 37,094 62,169 Gain (loss) on change in fair value of derivatives, net (20,571) (5,760) 14,932 (35,370) (1,681) Foreign exchange gain (loss), net 3,188 (7,318) (18,662) (8,716) 6,737 Investment income (loss), net 4,514 1,666 3,427 7,270 2,761 Total other expenses (42,205) (46,299) (20,742) (129,430) (32,087) Income (loss) before income taxes and equity in earnings (losses) of affiliates (7,616) 81,134 (20,448) (22,213) 64,929 Income tax benefit (expense) (7,138) (34,311) 19,829 (18,327) 4,869 Equity in losses of affiliates (6,324) (2,053) (5,451) (12,422) (12,221) Net income (loss) (21,078) 44,770 (6,070) (52,962) 57,577 Less: net income (loss) attributable to non-controlling interests and redeemable non-controlling interests (30,064) 37,573 7,956 (35,174) 55,429 Net income (loss) attributable to Canadian Solar Inc. $ 8,986 $ 7,197 $ (14,026) $ (17,788) $ 2,148 Earnings (loss) per share - basic $ (0.07) $ (0.08) $ (0.31) $ (0.83) $ (0.10) Shares used in computation - basic 67,620,463 67,167,296 66,933,121 67,252,558 66,505,377 Earnings (loss) per share - diluted $ (0.07) $ (0.08) $ (0.31) $ (0.83) $ (0.10) Shares used in computation - diluted 67,620,463 67,167,296 66,933,121 67,252,558 66,505,377 Canadian Solar Inc. Unaudited Condensed Consolidated Statement of Comprehensive Income (Loss) (In Thousands of U.S. Dollars) Three Months Ended Nine  Months Ended September 30, June 30, September 30, September 30, September 30, 2025 2025 2024 2025 2024 Net income (loss) $ (21,078) $ 44,770 $ (6,070) $ (52,962) $ 57,577 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment 4,013 95,175 130,342 101,279 16,632 Gain (loss) on changes in fair value of available-for-sale debt securities (1,939) 865 (105) (1,578) 1,544 Gain (loss) on interest rate swap (452) (8,148) (8,874) (11,681) (8,390) Share of gain (loss) on changes in fair value of interest rate swap of affiliate — (629) (1,908) (1,861) (933) Comprehensive income (loss) (19,456) 132,033 113,385 33,197 66,430 Less: comprehensive income (loss) attributable to non-controlling interests and redeemable non-controlling interests (28,806) 41,855 12,969 (27,719) 48,943 Comprehensive income (loss) attributable to Canadian Solar Inc. $ 9,350 $ 90,178 $ 100,416 $ 60,916 $ 17,487 Canadian Solar Inc. Unaudited Condensed Consolidated Balance Sheets (In Thousands of U.S. Dollars) September 30, December 31, 2025 2024 ASSETS Current assets: Cash and cash equivalents $ 1,763,311 $ 1,701,487 Restricted cash 405,749 551,387 Accounts receivable trade, net 814,685 1,118,770 Accounts receivable, unbilled 234,915 142,603 Amounts due from related parties 5,723 5,220 Inventories 1,244,397 1,206,595 Value added tax recoverable 253,734 221,539 Advances to suppliers, net 190,491 124,440 Derivative assets 3,570 14,025 Project assets 538,385 394,376 Prepaid expenses and other current assets 930,503 436,635 Total current assets 6,385,463 5,917,077 Restricted cash 10,871 11,147 Property, plant and equipment, net 3,310,094 3,174,643 Solar power and battery energy storage systems, net 2,030,656 1,976,939 Deferred tax assets, net 388,129 473,500 Advances to suppliers, net 146,046 118,124 Investments in affiliates 276,083 232,980 Intangible assets, net 31,987 31,026 Project assets 1,397,333 889,886 Right-of-use assets 448,091 378,548 Amounts due from related parties 76,813 75,215 Other non-current assets 655,434 232,465 TOTAL ASSETS $ 15,157,000 $ 13,511,550 Canadian Solar Inc. Unaudited Condensed Consolidated Balance Sheets (Continued) (In Thousands of U.S. Dollars) September 30, December 31, 2025 2024 LIABILITIES, REDEEMABLE INTERESTS AND EQUITY Current liabilities: Short-term borrowings $2,428,151 $ 1,873,306 Convertible notes — 228,917 Green bonds 125,060 — Accounts payable 1,070,135 1,062,874 Short-term notes payable 745,794 637,512 Amounts due to related parties 2,163 3,927 Other payables 896,982 984,023 Advances from customers 221,652 204,826 Derivative liabilities 4,776 13,738 Operating lease liabilities 25,889 21,327 Other current liabilities 447,572 388,460 Total current liabilities 5,968,174 5,418,910 Long-term borrowings 3,499,706 2,731,543 Convertible notes 194,751 — Green bonds 34,996 146,542 Liability for uncertain tax positions 5,770 5,770 Deferred tax liabilities 117,351 204,832 Operating lease liabilities 344,664 271,849 Other non-current liabilities 632,483 582,301 TOTAL LIABILITIES 10,797,895 9,361,747 Redeemable non-controlling interests 369,356 247,834 Equity: Common shares 835,543 835,543 Additional paid-in capital 579,551 590,578 Retained earnings 1,567,970 1,585,758 Accumulated other comprehensive loss (114,811) (196,379) Total Canadian Solar Inc. shareholders' equity 2,868,253 2,815,500 Non-controlling interests 1,121,496 1,086,469 TOTAL EQUITY 3,989,749 3,901,969 TOTAL LIABILITIES, REDEEMABLE INTERESTS AND EQUITY $ 15,157,000 $ 13,511,550 Canadian Solar Inc. Unaudited Condensed Statements of Cash Flows (In Thousands of U.S. Dollars) Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, September 30, 2025 2025 2024 2025 2024 Operating Activities: Net income (loss) $ (21,078) $ 44,770 $ (6,070) $ (52,962) $ 57,577 Adjustments to net income (loss) 213,292 366,084 57,395 741,146 389,946 Changes in operating assets and liabilities (304,274) (222,298) (282,290) (875,891) (1,399,313) Net cash provided by (used in) operating activities (112,060) 188,556 (230,965) (187,707) (951,790) Investing Activities: Purchase of property, plant and equipment and intangible assets (266,768) (172,729) (238,164) (695,877) (898,474) Purchase of solar power and battery energy storage systems (27,685) (219,695) (247,219) (376,087) (431,496) Other investing activities 6,789 (55,882) (11,325) (132,990) 1,622 Net cash used in investing activities (287,664) (448,306) (496,708) (1,204,954) (1,328,348) Financing Activities: Proceeds from subsidiary's issuance of preferred shares, net — — 200,000 — 497,000 Capital contributions from tax equity investors in subsidiaries 200,301 — (7,064) 214,981 — Repurchase of shares by subsidiary — (24,221) — (45,625) (77,688) Other financing activities 110,110 495,276 1,078,357 1,156,348 1,762,991 Net cash provided by financing activities 310,411 471,055 1,271,293 1,325,704 2,182,303 Effect of exchange rate changes 5,035 18,985 91,933 (17,133) (20,803) Net increase (decrease) in cash, cash equivalents and restricted cash (84,278) 230,290 635,553 (84,090) (118,638) Cash, cash equivalents and restricted cash at the beginning of the period $ 2,264,209 $ 2,033,919 $ 2,192,241 $ 2,264,021 $ 2,946,432 Cash, cash equivalents and restricted cash at the end of the period $ 2,179,931 $ 2,264,209 $ 2,827,794 $ 2,179,931 $ 2,827,794 About Non-GAAP Financial Measures  This press release also contains adjusted net income (loss) attributable to Canadian Solar Inc. and adjusted earnings (loss) per share - diluted that are not determined in accordance with GAAP. These non-GAAP financial measures should not be considered as an alternative to net income (loss) attributable to Canadian Solar Inc. or earnings (loss) per share, respectively, each of which is an indicator of financial performance determined in accordance with GAAP. Adjusted net income (loss) attributable to Canadian Solar Inc. and adjusted earnings (loss) per share - diluted exclude from net income (loss) attributable to Canadian Solar Inc. and earnings (loss) per share certain items that the Company does not consider indicative of its ongoing financial performance such as the effects of HLBV method to account for its tax equity arrangements. Management uses these non-GAAP financial measures to facilitate the analysis and communication of the Company's financial performance as compared to its previous financial results. Management believes that these non-GAAP financial measures are also useful and meaningful to investors to facilitate their analysis of the Company's financial performance. These non-GAAP measures may differ from non-GAAP measures used by other companies, and therefore their comparability may be limited. The table below provides a reconciliation of our GAAP net income (loss) to non-GAAP financial measures. Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, September 30, 2025 2025 2024 2025 2024 GAAP net income (loss) attributable to Canadian Solar Inc. $ 8,986 $ 7,197 $ (14,026) $ (17,788) $ 2,148 Non-GAAP income adjustment items: Less: HLBV effects (34,606) (30,248) — (90,756) — Non-GAAP adjusted net income (loss) attributable to Canadian Solar Inc. $ (25,620) $ (23,051) $ (14,026) $ (108,544) $ 2,148 GAAP earnings (loss) per share – diluted $ (0.07) $ (0.08) $ (0.31) $ (0.83) $ (0.10) Non-GAAP income adjustment items: Less: HLBV effects (0.51) (0.45) — (1.35) — Add: HLBV effects attributable to redeemable non-controlling interests — — — — — Non-GAAP adjusted earnings (loss) per share – diluted $ (0.58) $ (0.53) $ (0.31) $ (2.18) $ (0.10) Shares used in computation – diluted (GAAP) 67,620,463 67,167,296 66,933,121 67,252,558 66,505,377 Shares used in computation – diluted (Non-GAAP) 67,620,463 67,167,296 66,933,121 67,252,558 66,505,377 SOURCE Canadian Solar Inc.

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