Shoals Technologies (SHLS) 10-Q 6 Aug 24 2024 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2024	Aug. 05, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity File Number	001-39942
Entity Registrant Name	Shoals Technologies Group, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	85-3774438
Entity Address, Address Line One	1400 Shoals Way
Entity Address, City or Town	Portland
Entity Address, State or Province	TN
Entity Address, Postal Zip Code	37148
City Area Code	(615)
Local Phone Number	451-1400
Title of 12(b) Security	Class A Common Stock, $0.00001 Par Value
Trading Symbol	SHLS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Amendment Flag	false
Entity Central Index Key	0001831651
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2024
Class A Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		166,646,253
Class B Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		0

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Current Assets
Cash and cash equivalents	$ 3,189	$ 22,707
Accounts receivable, net	92,261	107,118
Unbilled receivables	17,015	40,136
Inventory, net	60,006	52,804
Other current assets	4,784	4,421
Total Current Assets	177,255	227,186
Property, plant and equipment, net	26,932	24,836
Goodwill	69,941	69,941
Other intangible assets, net	44,876	48,668
Deferred tax assets	461,676	468,195
Other assets	7,757	5,167
Total Assets	788,437	843,993
Current Liabilities
Accounts payable	16,187	14,396
Accrued expenses and other	9,683	22,907
Warranty liability—current portion	31,148	31,099
Deferred revenue	21,244	22,228
Long-term debt—current portion	0	2,000
Total Current Liabilities	78,262	92,630
Revolving line of credit	146,750	40,000
Long-term debt, less current portion	0	139,445
Warranty liability, less current portion	16,182	23,815
Other long-term liabilities	2,657	3,107
Total Liabilities	243,851	298,997
Commitments and Contingencies (Note 13)
Stockholders’ Equity
Preferred stock, $0.00001 par value - 5,000,000 shares authorized; none issued and outstanding as of June 30, 2024 and December 31, 2023	0	0
Additional paid-in capital	468,787	470,542
Treasury stock, at cost, 2,202,643 and zero shares as of June 30, 2024 and December 31, 2023, respectively	(15,231)	0
Retained earnings	91,028	74,452
Total stockholders' equity	544,586	544,996
Total Liabilities and Stockholders’ Equity	788,437	843,993
Class A Common Stock
Stockholders’ Equity
Common stock	2	2
Class B Common Stock
Stockholders’ Equity
Common stock	$ 0	$ 0

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
Preferred stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Preferred stock authorized (in shares)	5,000,000	5,000,000
Preferred stock issued (in shares)	0	0
Preferred stock outstanding (in shares)	0	0
Treasury stock (in shares)	2,202,643	0
Class A Common Stock
Common stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Common stock authorized (in shares)	1,000,000,000	1,000,000,000
Common stock issued (in shares)	170,511,566	170,117,289
Common stock outstanding (in shares)	168,308,923	170,117,289
Class B Common Stock
Common stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Common stock authorized (in shares)	195,000,000	195,000,000
Common stock issued (in shares)	0	0
Common stock outstanding (in shares)	0	0

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenue	$ 99,249	$ 119,208	$ 190,056	$ 224,294
Cost of revenue	59,252	68,691	113,599	125,520
Gross profit	39,997	50,517	76,457	98,774
Operating expenses
General and administrative expenses	19,218	16,723	41,990	36,715
Depreciation and amortization	2,198	2,158	4,302	4,323
Total operating expenses	21,416	18,881	46,292	41,038
Income from operations	18,581	31,636	30,165	57,736
Interest expense, net	(3,063)	(6,505)	(7,425)	(12,501)
Income before income taxes	15,518	25,131	22,740	45,235
Income tax expense	(3,716)	(6,207)	(6,164)	(9,328)
Net income	11,802	18,924	16,576	35,907
Less: net income attributable to non-controlling interests	0	0	0	2,687
Net income attributable to Shoals Technologies Group, Inc.	$ 11,802	$ 18,924	$ 16,576	$ 33,220
Earnings per share of Class A common stock:
Basic (in dollars per share)	$ 0.07	$ 0.11	$ 0.10	$ 0.21
Diluted (in dollars per share)	$ 0.07	$ 0.11	$ 0.10	$ 0.21
Weighted average shares of Class A common stock outstanding:
Basic (in shares)	169,991	169,887	170,136	158,213
Diluted (in shares)	170,100	170,241	170,252	158,694
Class A Common Stock
Earnings per share of Class A common stock:
Basic (in dollars per share)	$ 0.07	$ 0.11	$ 0.10	$ 0.21
Diluted (in dollars per share)	$ 0.07	$ 0.11	$ 0.10	$ 0.21
Weighted average shares of Class A common stock outstanding:
Basic (in shares)	169,991	169,887	170,136	158,213
Diluted (in shares)	170,100	170,241	170,252	158,694

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) - USD ($) $ in Thousands	Total	Class A Common Stock	Class B Common Stock	Common Stock Class A Common Stock	Common Stock Class B Common Stock	Additional Paid-in Capital	Treasury Stock	Retained Earnings	Non-Controlling Interests
Balance at beginning of period (in shares) at Dec. 31, 2022				137,904,663	31,419,913
Balance at beginning of period at Dec. 31, 2022	$ 300,989			$ 1	$ 1	$ 256,894	$ 0	$ 34,478	$ 9,615
Balance at beginning of period (in shares) at Dec. 31, 2022							0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	16,983							14,296	2,687
Equity-based compensation	7,523					7,523
Activity under equity-based compensation plan	(3,532)					(4,219)			687
Distributions to non-controlling interests	(2,628)								(2,628)
Vesting of restricted / performance stock units (in shares)				495,831
Exchange of Class B to Class A common stock, net (in shares)				31,419,913	(31,419,913)
Exchange of Class B to Class A common stock, net	186,745			$ 1	$ (1)	186,745
Reallocation of non-controlling interests	0					10,361			(10,361)
Balance at end of period (in shares) at Mar. 31, 2023				169,820,407	0
Balance at end of period at Mar. 31, 2023	506,080			$ 2	$ 0	457,304	$ 0	48,774	0
Balance at beginning of period (in shares) at Mar. 31, 2023							0
Balance at beginning of period (in shares) at Dec. 31, 2022				137,904,663	31,419,913
Balance at beginning of period at Dec. 31, 2022	300,989			$ 1	$ 1	256,894	$ 0	34,478	9,615
Balance at beginning of period (in shares) at Dec. 31, 2022							0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	35,907
Balance at end of period (in shares) at Jun. 30, 2023			0	169,926,094	0
Balance at end of period at Jun. 30, 2023	529,405			$ 2	$ 0	461,705	$ 0	67,698	0
Balance at beginning of period (in shares) at Jun. 30, 2023							0
Balance at beginning of period (in shares) at Mar. 31, 2023				169,820,407	0
Balance at beginning of period at Mar. 31, 2023	506,080			$ 2	$ 0	457,304	$ 0	48,774	0
Balance at beginning of period (in shares) at Mar. 31, 2023							0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	18,924							18,924
Equity-based compensation	4,445					4,445
Activity under equity-based compensation plan	(44)					(44)
Vesting of restricted / performance stock units (in shares)				105,687
Balance at end of period (in shares) at Jun. 30, 2023			0	169,926,094	0
Balance at end of period at Jun. 30, 2023	529,405			$ 2	$ 0	461,705	$ 0	67,698	0
Balance at beginning of period (in shares) at Jun. 30, 2023							0
Balance at beginning of period (in shares) at Dec. 31, 2023		170,117,289	0	170,117,289	0
Balance at beginning of period at Dec. 31, 2023	$ 544,996			$ 2	$ 0	470,542	$ 0	74,452	0
Balance at beginning of period (in shares) at Dec. 31, 2023	0						0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 4,774							4,774
Equity-based compensation	5,023					5,023
Activity under equity-based compensation plan	(816)					(816)
Vesting of restricted / performance stock units (in shares)				303,020
Balance at end of period (in shares) at Mar. 31, 2024				170,420,309	0
Balance at end of period at Mar. 31, 2024	553,977			$ 2	$ 0	474,749	$ 0	79,226	0
Balance at beginning of period (in shares) at Mar. 31, 2024							0
Balance at beginning of period (in shares) at Dec. 31, 2023		170,117,289	0	170,117,289	0
Balance at beginning of period at Dec. 31, 2023	$ 544,996			$ 2	$ 0	470,542	$ 0	74,452	0
Balance at beginning of period (in shares) at Dec. 31, 2023	0						0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 16,576
Balance at end of period (in shares) at Jun. 30, 2024		168,308,923	0	168,308,923	0
Balance at end of period at Jun. 30, 2024	$ 544,586			$ 2	$ 0	468,787	$ (15,231)	91,028	0
Balance at beginning of period (in shares) at Jun. 30, 2024	2,202,643						2,202,643
Balance at beginning of period (in shares) at Mar. 31, 2024				170,420,309	0
Balance at beginning of period at Mar. 31, 2024	$ 553,977			$ 2	$ 0	474,749	$ 0	79,226	0
Balance at beginning of period (in shares) at Mar. 31, 2024							0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	11,802							11,802
Equity-based compensation	4,087					4,087
Activity under equity-based compensation plan	(49)					(49)
Vesting of restricted / performance stock units (in shares)				91,257
Repurchase of Class A common stock (in shares)				(2,202,643)			2,202,643
Repurchase of Class A common stock	(25,231)					(10,000)	$ (15,231)
Balance at end of period (in shares) at Jun. 30, 2024		168,308,923	0	168,308,923	0
Balance at end of period at Jun. 30, 2024	$ 544,586			$ 2	$ 0	$ 468,787	$ (15,231)	$ 91,028	$ 0
Balance at beginning of period (in shares) at Jun. 30, 2024	2,202,643						2,202,643

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash Flows from Operating Activities
Net income	$ 16,576	$ 35,907
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	6,181	5,092
Amortization/write off of deferred financing costs	2,781	692
Equity-based compensation	9,110	11,968
Provision for credit losses	0	296
Provision for obsolete or slow-moving inventory	466	3,140
Provision for warranty expense	1,394	9,386
Deferred taxes	6,519	8,953
Changes in assets and liabilities:
Accounts receivable	14,857	(46,820)
Unbilled receivables	23,121	(4,951)
Inventory	(7,668)	1,402
Other assets	(791)	(2,064)
Accounts payable	1,791	7,014
Accrued expenses and other	(13,674)	92
Warranty liability	(8,978)	(312)
Deferred revenue	(984)	8,039
Net Cash Provided by Operating Activities	50,701	37,834
Cash Flows from Investing Activities
Purchases of property, plant and equipment	(4,485)	(4,377)
Net Cash Used in Investing Activities	(4,485)	(4,377)
Cash Flows from Financing Activities
Distributions to non-controlling interests	0	(2,628)
Employee withholding taxes related to net settled equity awards	(865)	(3,576)
Proceeds from revolving credit facility	148,750	5,000
Deferred financing costs	(2,638)	0
Repurchase of Class A common stock	(25,231)	0
Other	0	(1,159)
Net Cash Used in Financing Activities	(65,734)	(36,363)
Net Decrease in Cash and Cash Equivalents	(19,518)	(2,906)
Cash and Cash Equivalents—Beginning of Period	22,707	8,766
Cash and Cash Equivalents—End of Period	3,189	5,860
Supplemental Cash Flows Information:
Cash paid for interest	10,562	11,300
Cash paid for taxes	120	865
Non-cash investing and financing activities:
Recording of deferred tax assets and capital contribution related to exchanges of Class B common stock to Class A common stock	0	187,648
Term Loan Facility
Cash Flows from Financing Activities
Payments on/ repayments of credit facilities	(143,750)	(1,000)
Revolving Credit Facility
Cash Flows from Financing Activities
Payments on/ repayments of credit facilities	$ (42,000)	$ (33,000)

Organization and Business

Organization and Business	6 Months Ended
	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Business	Organization and Business Shoals Technologies Group, Inc. (the “Company”) was formed as a Delaware corporation on November 4, 2020 for the purpose of facilitating an initial public offering and other related organizational transactions to carry on the business of Shoals Parent LLC and its subsidiaries (“Shoals Parent LLC”). Shoals Parent LLC was a Delaware limited liability company. The Company is headquartered in Portland, Tennessee and is a leading provider of electrical balance of systems (“EBOS”) solutions for the energy transition market. On July 1, 2023, the Company contributed 100% of its limited liability interests of Shoals Parent LLC (“LLC Interests”) to its wholly-owned subsidiary Shoals Intermediate Parent, Inc. (“Shoals Intermediate Parent”), and following the contribution, Shoals Parent LLC became a disregarded single member limited liability company, eliminating the umbrella-partnership C corporation structure (“Up-C structure”). Following the elimination of the Up-C structure, effective December 31, 2023, the Company consummated an internal reorganization transaction whereby certain of the Company’s wholly-owned subsidiaries merged with and into other subsidiaries. As part of this reorganization, Shoals Parent LLC merged with and into Shoals Intermediate Parent, with Shoals Intermediate Parent as the surviving corporation. As of June 30, 2024, the Company owns directly or indirectly four subsidiaries: Shoals Intermediate Parent, Shoals Technologies Group, LLC, Shoals International, LLC and Shoals Energy Spain, S.L.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Accounting and Presentation The condensed consolidated financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. Non-Controlling Interests The non-controlling interests on the condensed consolidated statements of operations represented a portion of earnings or loss attributable to the economic interests in the Company’s former subsidiary, Shoals Parent LLC, formerly held by direct or indirect holders of LLC Interests and our Class B common stock, including the founder and certain current and former executive officers, employees and their respective permitted transferees (collectively, the "Continuing Equity Owners”). As of March 2023, the Company, along with a wholly-owned subsidiary, Shoals Intermediate Parent, owned 100% of Shoals Parent LLC. Effective December 31, 2023, Shoals Parent LLC merged with and into Shoals Intermediate Parent with Shoals Intermediate Parent as the surviving corporation. Unaudited Interim Financial Information The accompanying condensed consolidated balance sheets as of June 30, 2024 and December 31, 2023, the condensed consolidated statements of operations, changes in stockholders’ equity and cash flows for the three and six months ended June 30, 2024 and 2023 are unaudited. The unaudited interim financial statements have been prepared on the same basis as the audited annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the Company’s financial position as of June 30, 2024 and the results of its operations and its cash flows for the three and six months ended June 30, 2024 and 2023. The financial data and other information disclosed in these notes related to the three and six months ended June 30, 2024 and 2023 are also unaudited. The results for the three and six months ended June 30, 2024 are not necessarily indicative of results to be expected for the year ending December 31, 2024, any other interim periods, or any future year or period. The balance sheet as of December 31, 2023 included herein was derived from the audited financial statements as of that date. Certain disclosures have been condensed or omitted from the interim condensed consolidated financial statements. These condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from those estimates. Significant estimates include revenue recognition, allowance for credit losses, useful lives of property, plant and equipment and other intangible assets, impairment of long-lived assets, allowance for obsolete or slow moving inventory, valuation allowance on deferred tax assets, equity-based compensation expense and warranty liability. Customer Concentrations The Company had the following revenue concentration representing approximately 10% or more of revenue for the six months ended June 30, 2024 and 2023 and related accounts receivable concentration as of June 30, 2024 and December 31, 2023: 2024 2023 Revenue % Accounts Revenue % Accounts Customer A 35.2 % 43.8 % 25.7 % 37.5 % Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company follows a fair value hierarchy which requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Three levels of inputs may be used to measure fair value, as follows: • Level 1 – Quoted prices in active markets for identical assets or liabilities. • Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 – Unobservable inputs that are supported by little or no market activity that are significant to the fair value of the assets or liabilities. The fair values of the Company’s cash and cash equivalents, accounts receivable, and accounts payable approximate their carrying values due to their short maturities. The carrying value of the Company’s long-term debt and revolving line of credit approximates fair value and is considered level 2, as they are based on current market rates at which the Company could borrow funds with similar terms. Recent Accounting Pronouncements Not Yet Adopted In October 2023, the FASB issued ASU 2023-06 Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative. This ASU amends the disclosure or presentation requirements related to various subtopics in the FASB Accounting Standards Codification. For SEC registrants, the effective date for each amendment will be the date on which the SEC’s removal of that related disclosure requirement from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. The Company will monitor the removal of various requirements from the current regulations in order to determine when to adopt the related amendments, but does not anticipate the adoption of the new guidance will have a material impact on the Company’s consolidated financial statements. The Company will continue to evaluate the impact of this guidance on its consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which modifies the disclosure and presentation requirements of reportable segments. The amendments in the update require the disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit and loss. The amendments also require disclosure of all other segment items by reportable segment and a description of its composition. Additionally, the amendments require disclosure of the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. This update is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact that this guidance will have on the presentation of its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands disclosures in an entity’s income tax rate reconciliation table and disclosures regarding cash taxes paid both in the U.S. and foreign jurisdictions. The update will be effective for annual periods beginning after December 15, 2024. The Company is currently evaluating the impact that this guidance will have on the presentation of its consolidated financial statements. Management does not believe that any other recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Company’s condensed consolidated financial statements.

Accounts Receivable

Accounts Receivable	6 Months Ended
	Jun. 30, 2024
Receivables [Abstract]
Accounts Receivable	Accounts Receivable Accounts receivable, net consists of the following (in thousands): June 30, December 31, 2023 Accounts receivable $ 93,020 $ 107,877 Less: allowance for credit losses (759) (759) Accounts receivable, net $ 92,261 $ 107,118

Inventory

Inventory	6 Months Ended
	Jun. 30, 2024
Inventory Disclosure [Abstract]
Inventory	Inventory Inventory, net consists of the following (in thousands): June 30, December 31, 2023 Raw materials $ 63,543 $ 57,608 Work in process 2,051 1,111 Finished goods 1,088 654 Allowance for obsolete or slow-moving inventory (6,676) (6,569) Inventory, net $ 60,006 $ 52,804

Property, Plant and Equipment

Property, Plant and Equipment	6 Months Ended
	Jun. 30, 2024
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	Property, Plant and Equipment Property, plant, and equipment, net consists of the following (in thousands): Estimated Useful Lives (Years) June 30, December 31, 2023 Land N/A $ 840 $ 840 Building and land improvements 5-40 13,799 13,134 Machinery and equipment 3-5 20,978 17,528 Furniture and fixtures 3-7 2,626 2,766 Vehicles 5 125 125 38,368 34,393 Less: accumulated depreciation (11,436) (9,557) Property, plant and equipment, net $ 26,932 $ 24,836 Depreciation expense for the three months ended June 30, 2024 and 2023 was $1.3 million and $0.6 million, respectively. During the three months ended June 30, 2024 and 2023, $1.0 million and $0.4 million, respectively, of depreciation expense was allocated to cost of revenue and $0.3 million and $0.2 million, respectively, of depreciation expense was allocated to operating expenses. Depreciation expense for the six months ended June 30, 2024 and 2023 was $2.4 million and $1.1 million, respectively. During the six months ended June 30, 2024 and 2023, $1.9 million and $0.8 million, respectively, of depreciation expense was allocated to cost of revenue and $0.5 million and $0.3 million, respectively, of depreciation expense was allocated to operating expenses.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	6 Months Ended
	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets Goodwill There were no changes in the carrying amount of goodwill during the six months ended June 30, 2024. Goodwill totaled $69.9 million as of June 30, 2024 and December 31, 2023. Other Intangible Assets Other intangible assets, net consists of the following (in thousands): Estimated Useful Lives (Years) June 30, December 31, 2023 Amortizable: Costs: Customer relationships 13 $ 53,100 $ 53,100 Developed technology 13 34,600 34,600 Trade names 13 11,900 11,900 Backlog 1 600 600 Noncompete agreements 5 2,000 2,000 Total amortizable intangibles 102,200 102,200 Accumulated amortization: Customer relationships 29,157 27,135 Developed technology 18,853 17,522 Trade names 6,714 6,275 Backlog 600 600 Noncompete agreements 2,000 2,000 Total accumulated amortization 57,324 53,532 Total other intangible assets, net $ 44,876 $ 48,668 Amortization expense related to intangible assets amounted to $1.9 million and $2.0 million for the three months ended June 30, 2024 and 2023, respectively, and $3.8 million and $4.0 million for the six months ended June 30, 2024 and 2023, respectively.

Accrued Expenses and Other

Accrued Expenses and Other	6 Months Ended
	Jun. 30, 2024
Payables and Accruals [Abstract]
Accrued Expenses and Other	Accrued Expenses and Other Accrued expenses and other consists of the following (in thousands): June 30, December 31, 2023 Accrued compensation $ 3,793 $ 10,796 Accrued interest 288 5,934 Other accrued expenses 5,602 6,177 Total accrued expenses and other $ 9,683 $ 22,907

Warranty Liability

Warranty Liability	6 Months Ended
	Jun. 30, 2024
Guarantees and Product Warranties [Abstract]
Warranty Liability	Warranty Liability General Warranty The Company offers an assurance type warranty for its products against manufacturer defects which does not contain a service element. For these assurance type warranties, a provision for estimated future costs related to warranty expense is recorded when they are probable and reasonably estimable. As of June 30, 2024 and December 31, 2023 our estimated general warranty liability was approximately $1.4 million and zero, respectively. The Company recorded total warranty expense related to general warranty matters of $0.8 million and $1.4 million for the three and six months ended June 30, 2024, respectively, and $0.5 million for the three and six months ended June 30, 2023. Wire Insulation Shrinkback Warranty The Company has been notified by certain customers that a subset of wire harnesses used in its EBOS solutions is presenting unacceptable levels of contraction of wire insulation (“wire insulation shrinkback”). Based upon the Company’s ongoing assessment, the Company currently believes the wire insulation shrinkback is related to defective wire manufactured by Prysmian Cables and Systems USA, LLC (“Prysmian”). Based on the Company’s continued analysis of information available as of the date of this Quarterly Report, the Company determined that a potential range of loss was both probable and reasonably estimable. As of June 30, 2024, the estimate of potential losses remains unchanged from the estimate provided as of December 31, 2023. As no amount within the current range of loss appears to be a better estimate than any other amount, the Company recorded a warranty liability and related expense representing the low end of the range of potential loss of $59.7 million. The high-end of the range of potential loss is $184.9 million, which is $125.2 million higher than the amount recorded. As of June 30, 2024 and December 31, 2023 our recorded warranty liability related to this matter was $46.0 million and $54.9 million, respectively. The estimated range is based on several assumptions, including the potential magnitude of engineering, procurement and construction firm’s labor cost to identify and perform the repair and replacement of impacted harnesses, estimated failure rates, materials replacement cost, planned remediation method, inspection costs, and other various assumptions. While our wire insulation shrinkback warranty liability represents our best estimate of the range of expected losses at any given time, the Company remains in the early stages of the identification, repair and replacement process and may increase or decrease its estimated warranty liability from its current estimate as additional information becomes available, including with respect to experience relating to weather delays, site access, vegetation management or other factors. Such increase or decrease may be material. The Company does not maintain insurance for product warranty issues and has commenced a lawsuit against Prysmian, as discussed in more detail under Wire Insulation Shrinkback Litigation section of Note 13 - Commitments and Contingencies. Because the lawsuit against Prysmian is ongoing, potential recovery from Prysmian is not considered probable as defined in ASC 450, and has not been considered in our estimate of the warranty liability as of June 30, 2024. The Company recorded total warranty expense related to this matter of zero for the three and six months ended June 30, 2024 and $8.9 million three and six months ended June 30, 2023. Warranty liability, which includes both general warranty and wire insulation shrinkback warranty, is estimated as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Warranty liability, beginning of period $ 51,799 $ 400 $ 54,914 $ 560 Warranty expense 829 9,386 1,394 9,386 Payments (5,298) (152) (8,978) (312) Warranty liability, end of period 47,330 9,634 47,330 9,634 Less: current portion 31,148 9,634 31,148 9,634 Warranty liability, net current portion $ 16,182 $ — $ 16,182 $ —

Long-Term Debt

Long-Term Debt	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt Long-term debt consists of the following (in thousands): June 30, December 31, 2023 Term Loan Facility $ — $ 143,750 Revolving Credit Facility 146,750 40,000 Less: deferred financing costs — (2,305) Total debt, net of deferred financing costs 146,750 181,445 Less: current portion — (2,000) Long-term debt, net current portion $ 146,750 $ 179,445 Senior Secured Credit Agreement The Company entered into a senior secured credit agreement (as amended, the “Senior Secured Credit Agreement”), which consisted of (i) a senior secured six-year term loan facility (the “Term Loan Facility”) and (ii) a revolving credit facility (the “Revolving Credit Facility”). On January 19, 2024, the Company used proceeds from the Revolving Credit Facility to make a $100.0 million voluntary prepayment of outstanding borrowings under the Term Loan Facility. On March 19, 2024, the Company entered into an amendment to the Senior Secured Credit Agreement. The amendment, among other things, (i) increases the amount available for borrowing under the Revolving Credit Facility from $150.0 million to $200.0 million, (ii) reduces the interest rate margin applicable to the Revolving Credit Facility by at least 0.25%, with additional 0.25% step-downs if the consolidated first lien secured leverage ratio does not exceed certain thresholds (which step-downs will step back up if such leverage ratio exceeds those thresholds), (iii) reduces the commitment fee applicable to the undrawn amount of the Revolving Credit Facility by at least 0.10% with additional 0.05% step-downs if the consolidated first lien secured leverage ratio does not exceed certain thresholds (which step-downs will step back up if such leverage ratio exceeds such thresholds), (iv) lowers the maximum consolidated leverage ratio permitted under the Senior Secured Credit Agreement to (a) 4.25:1.00 from April 1, 2024 through March 31, 2025 and (b) thereafter, 4.00:1.00 (with temporary increases to the maximum consolidated first lien secured leverage ratio in the event a material acquisition closes), (v) extends the maturity date applicable to the Revolving Credit Facility to March 19, 2029, the fifth anniversary of the amendment’s effective date, and (vi) amends certain covenants under the Senior Secured Credit Agreement in a manner customary for facilities of this type. On March 19, 2024, the Company made a $43.8 million voluntary prepayment of all the outstanding term loans under the Term Loan Facility, thereby terminating all term loan commitments under the Term Loan Facility. Beginning March 19, 2024 and until the delivery of the Company’s compliance certificate for the second quarter of 2024 pursuant to the Senior Secured Credit Agreement, the Revolving Credit Facility bears interest at a rate equal to, at the Company’s election, either adjusted term SOFR or base rate (each, as defined in the Senior Secured Credit Agreement) plus (i) in the case of SOFR rate loans, 2.50% per annum and (ii) in the case of base rate loans, 1.50% per annum. Following the delivery of the Company’s compliance certificate for the second quarter of 2024, pursuant to our Senior Secured Credit Agreement, the Revolving Credit Facility bears interest at a rate equal to, at the Company’s election, either adjusted term SOFR or base rate (each, as defined in the Senior Secured Credit Agreement) plus an applicable interest rate margin, based upon the consolidated first lien secured leverage ratio. The applicable interest rate margin varies from 2.25% to 3.00% per annum for term benchmark loans and 1.25% to 2.00% per annum for base rate loans. As of June 30, 2024, the interest rate on the Revolving Credit Facility ranged from 7.94% to 7.95%, which represented SOFR plus 2.50%. As of June 30, 2024, there were $146.8 million of outstanding borrowings, $0.3 million of outstanding letters of credit, and $52.9 million of availability under the Revolving Credit Facility. The Senior Secured Credit Agreement contains affirmative and negative covenants that are customary for financings of this type, including covenants that restrict our incurrence of indebtedness, incurrence of liens, dispositions, investments, acquisitions, restricted payments, and transactions with affiliates. The Senior Secured Credit Agreement also includes customary events of default, including the occurrence of a change of control. As discussed above, the Revolving Credit Facility also includes a consolidated leverage ratio financial covenant that is tested on the last day of each fiscal quarter. As of June 30, 2024, the Company was in compliance with all the required covenants.

Earnings per Share ("EPS")

Earnings per Share ("EPS")	6 Months Ended
	Jun. 30, 2024
Earnings Per Share [Abstract]
Earnings per Share ("EPS")	Earnings per Share ("EPS") Basic EPS of Class A common stock is computed by dividing net income attributable to the Company by the weighted average number of shares of Class A common stock outstanding during the period (which does not include treasury stock). Diluted EPS of Class A common stock is computed similarly to basic EPS except that the weighted average shares outstanding are increased to include additional shares from the exchange of Class B common stock under the if-converted method and the assumed exercise of any common stock equivalents using the treasury stock method, if dilutive. The Company’s restricted/performance stock units are considered common stock equivalents for this purpose. Basic and diluted EPS of Class A common stock have been computed as follows (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Numerator: Net income attributable to Shoals Technologies Group, Inc. - basic $ 11,802 $ 18,924 $ 16,576 $ 33,220 Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Reallocation of net income attributable to non-controlling interests from the assumed exchange of Class B common stock — — — — Net income attributable to Shoals Technologies Group, Inc. - diluted $ 11,802 $ 18,924 $ 16,576 $ 33,220 Denominator: Weighted average shares of Class A common stock outstanding - basic 169,991 169,887 170,136 158,213 Effect of dilutive securities: Restricted / performance stock units 109 354 116 481 Class B common stock — — — — Weighted average shares of Class A common stock outstanding - diluted 170,100 170,241 170,252 158,694 Earnings per share of Class A common stock - basic $ 0.07 $ 0.11 $ 0.10 $ 0.21 Earnings per share of Class A common stock - diluted $ 0.07 $ 0.11 $ 0.10 $ 0.21 For the six months ended June 30, 2023, the reallocation of net income attributable to non-controlling interests from the assumed exchange of Class B common stock has been excluded along with the dilutive effect of Class B common stock to the weighted average shares of Class A common stock outstanding – dilutive, as they were antidilutive. For the three months ended June 30, 2023 and three and six months ended June 30, 2024 there were no shares of Class B common stock outstanding.

Equity-Based Compensation

Equity-Based Compensation	6 Months Ended
	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
Equity-Based Compensation	Equity-Based Compensation 2021 Long-Term Incentive Plan The Shoals Technologies Group, Inc. 2021 Long-Term Incentive Plan (the “2021 Incentive Plan”) became effective on January 26, 2021. The 2021 Incentive Plan authorized 8,768,124 new shares, subject to adjustment pursuant to the 2021 Incentive Plan. Restricted Stock Units During the six months ended June 30, 2024, the Company granted 631,595 restricted stock units (“RSUs") to certain employees, officers and directors of the Company. The RSUs granted during 2024 have grant date fair values ranging from $7.16 to $15.39 per unit and generally vest ratably over 3 years, with grants to directors vesting over 1 year. Activity under the 2021 Incentive Plan for RSUs was as follows: Six Months Ended Restricted Weighted Average Price Outstanding, December 31, 2023 1,171,466 $ 23.87 Granted 631,595 $ 13.26 Vested (446,389) $ 22.12 Forfeited (54,336) $ 22.77 Outstanding, June 30, 2024 1,302,336 $ 19.26 Performance Stock Units During the six months ended June 30, 2024, the Company granted an aggregate of 324,099 Performance Stock Units ("PSUs") to certain executives. The PSUs granted during 2024 cliff vest after 3 years upon meeting certain revenue and adjusted diluted EPS targets and contain certain modifiers which could increase or decrease the ultimate number of Class A common stock issued to the executives. The PSUs were valued using the market value of the Class A common stock on the grant date ranging from $13.01 to $15.39. Activity under the 2021 Incentive Plan for PSUs was as follows: Six Months Ended Performance Weighted Average Price Outstanding, December 31, 2023 293,466 $ 22.59 Granted 324,099 $ 15.30 Vested (12,967) $ 18.65 Forfeited (9,168) $ 24.57 Outstanding, June 30, 2024 595,430 $ 18.68 The Company recognized equity-based compensation of $4.1 million and $4.4 million, respectively, for the three months ended June 30, 2024 and 2023, and $9.1 million and $12.0 million, respectively, for the six months ended June 30, 2024 and 2023. As of June 30, 2024, the Company had $22.0 million of unrecognized compensation costs which is expected to be recognized over a weighted average period of 1.8 years.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2024
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity Shoals Parent LLC Ownership Prior to July 1, 2023, the Company owned 100% of Shoals Parent LLC, was the sole managing member of Shoals Parent LLC and had the sole voting power in, and controlled the management of, Shoals Parent LLC. On July 1, 2023, the Company contributed 100% of its LLC Interests to Shoals Intermediate Parent. Following the contribution, Shoals Parent LLC became a disregarded single member limited liability company, eliminating the Company’s Up-C structure. Effective December 31, 2023, Shoals Parent LLC merged with and into Shoals Intermediate Parent with Shoals Intermediate Parent as the surviving corporation. Prior to the Company owning 100% of Shoals Parent LLC, the remaining interest in Shoals Parent LLC, was held by the Continuing Equity Owners, who could exchange at each of their respective options, in whole or in part, from time to time, their LLC Interests (along with an equal number of shares of Class B common stock (which shares were then immediately canceled)) for cash or newly issued shares of our Class A common stock. Accordingly, the Company consolidated the financial results of Shoals Parent LLC and reported non-controlling interests in its condensed consolidated financial statements. In accordance with the limited liability company agreement of Shoals Parent LLC, Shoals Parent LLC made cash distributions to its members in an amount sufficient to cover the members’ tax liabilities, if any, with respect to each member’s share of Shoals Parent LLC taxable earnings. The payment of these cash distributions by Shoals Parent LLC to Continuing Equity Owners was recorded as distributions to holders of LLC Interests in the accompanying condensed consolidated statements of stockholders’ equity and condensed consolidated statements of cash flows. Common Stock Economic and Voting Rights Holders of Class A common stock and Class B common stock (if any shares are outstanding) are entitled to one vote per share and, except as otherwise required, vote together as a single class on all matters on which stockholders generally are entitled to vote. Holders of Class B common stock (if any shares are outstanding) are not entitled to receive dividends and will not be entitled to receive any distributions upon the liquidation, dissolution or winding up of the Company. Shares of Class B common stock were only issuable to the extent necessary to maintain the one-to-one ratio between the number of LLC Interests held by the Continuing Equity Owners and the number of shares of Class B common stock held by the Continuing Equity Owners. As of June 30, 2024, there were no shares of Class B common stock nor LLC Interests outstanding, and no shares of Class B common stock are currently issuable. Shares of Class B common stock were transferable only together with an equal number of LLC Interests. Share Repurchase Program and Accelerated Share Repurchase Agreement On June 11, 2024, the Company announced a share repurchase program (the “Repurchase Program”) authorizing the repurchase of up to $150.0 million of the Company’s Class A common stock, with an estimated completion date of December 31, 2025. Under the Repurchase Program, the Company is authorized to repurchase shares of Class A common stock through open market purchases, privately-negotiated transactions, accelerated share repurchases or otherwise in accordance with applicable federal securities laws, including through Rule 10b5-1 trading plans and under Rule 10b-18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Repurchase Program does not obligate the Company to repurchase shares of Class A common stock and the specific timing and amount of repurchases will vary based on available capital resources and other financial and operational performance metrics, market conditions, securities law limitations, and other factors. The shares repurchased pursuant to the Repurchase Program are held as treasury shares of the Company (“Treasury Stock”). In connection with the Repurchase Program, on June 11, 2024, the Company entered into an accelerated share repurchase agreement (the “ASR”) with Jefferies LLC to repurchase $25.0 million of the Company’s Class A common stock. Under the terms of the ASR, the Company paid $25.0 million to Jefferies LLC on June 12, 2024, and received 2,202,643 shares of Class A common stock, representing approximately 60% of the notional amount of the ASR, based on the closing price of $6.81 on June 10, 2024. As of June 12, 2024, the $25.0 million payment to Jefferies LLC was recognized as a reduction to stockholders’ equity, consisting of a $15.0 million increase in Treasury Stock, which reflected the value of the initial 2,202,643 shares received upon initial settlement, and a $10.0 million decrease in Additional Paid-in Capital, which reflected the value of the shares then held by Jefferies LLC and pending final settlement of the ASR. On August 5, 2024, in final settlement of the ASR, Jefferies LLC delivered an additional 1,705,744 shares of the Company’s Class A common stock to the Company. Final settlement was based on a repurchase price of $6.40 per share, which was based on the average of the daily volume weighted average price per share of the Company’s Class A common stock during the term of the ASR, less a discount. Upon final settlement the value of the shares was reclassified from Additional Paid-in Capital to Treasury Stock.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Litigation The Company is from time to time subject to legal proceedings and claims, which arise in the normal course of its business. In the opinion of management and legal counsel, except as disclosed below, the amount of losses or gains that may be sustained, if any, would not have a material effect on the financial position, results of operations or cash flows of the Company. The Company records legal costs associated with loss contingencies, including fees and costs associated with preservation of evidence in connection with the wire insulation shrinkback litigation, as incurred. Intellectual Property Litigation On May 4, 2023, the Company filed a patent infringement complaint with the U.S. International Trade Commission (“ITC”) against Hikam America, Inc., a corporation based in Chula Vista, California, and its related foreign entities (together, “Hikam”), and Voltage LLC, a limited liability company based in Chapel Hill, North Carolina, and a related foreign entity (together, “Voltage”). The complaint primarily requests that the ITC (i) investigate unlawful imports of certain photovoltaic connectors and components that the Company alleges infringe on two valid and enforceable patents owned by the Company related to improved connectors for solar panel arrays and (ii) issue a limited exclusion order and a cease and desist order against the Hikam respondents and the Voltage respondents to bar them from importing, marketing, distributing, selling, offering for sale, licensing, advertising, transferring, or otherwise using the infringing photovoltaic connectors and components in and into the United States. On July 19, 2023, the Company filed an amended complaint with the ITC, adding allegations that Voltage also infringes a third, recently-issued patent owned by the Company. Also on May 4, 2023, the Company filed complaints against Hikam in the U.S. District Court for the Southern District of California, and against Voltage in the U.S. District Court for the Middle District of North Carolina on the same subject matter. On June 28, 2023, the Company filed an amended complaint in the District Court action against Voltage alleging that they also infringe on a third, recently-issued patent owned by the Company. These complaints seek injunctive relief and damages for reasonable royalty and lost profits. The District Court actions have been stayed pending the final disposition of the ITC investigation. The Administrative Law Judge issued a Claim Construction Ruling on February 21, 2024, as a result of which, the Company filed an unopposed motion on February 26, 2024, which was granted on February 28, 2024, to remove one of the three asserted patents covering duplicative subject matter against Voltage. An evidentiary hearing in the ITC investigation was held from March 18 through 22, 2024. On July 8, 2024, the Administrative Law Judge issued a ruling delaying the Initial Determination from July 12, 2024 to August 16, 2024. As a result, the ITC has set a target date for completion of the investigation of December 16, 2024, and final resolution following a potential Presidential review in February 2025. The Company is vigorously pursuing these actions. However, at this stage, the Company is unable to predict the outcome or impact on its business and financial results. The Company is accounting for this matter as a gain contingency, and will record any such gain in future periods if and when the contingency is resolved, in accordance with ASC 450 Contingencies . Wire Insulation Shrinkback Litigation On October 31, 2023, the Company filed a complaint against Prysmian in the U.S. District Court for the Middle District of Tennessee, Nashville Division. The complaint alleges that the Company suffered damages caused by defective wire Prysmian sold the Company from approximately 2020 through approximately 2022. The complaint alleges that the wire at issue in the litigation has presented unacceptable levels of wire insulation shrinkback. The complaint includes, among other causes of action, product liability, breach of contract, breach of warranty, indemnity, and negligence claims. The Company seeks compensatory and punitive damages, recovery of all costs and expenses incurred by the Company in connection with the identification, repair and replacement of the Prysmian wire alleged to be defective, and other legal and equitable relief. The Company is vigorously pursuing its complaint, and as the Company continues to assess this matter, it may, from time to time, amend, update or supplement the complaint to, among other things, increase the damages sought for various purposes, including in accordance with increases to the Company’s estimated warranty liability and related expenses related to this matter. At this stage, the Company is unable to predict the outcome of this litigation or the impact on its business and financial results. The Company is accounting for this matter as a gain contingency, and will record any such gain in future periods if and when the contingency is resolved, in accordance with ASC 450 Contingencies . Securities and Derivative Litigation On March 21, 2024, a purported stockholder filed a putative securities class action against the Company and certain of its current and former executive officers in the United States District Court for the Middle District of Tennessee, Nashville Division, captioned Westchester Putnam Counties Heavy & Highway Laborers Local 60 Benefits Fund v. Shoals Technologies Group, Inc., et al . The complaint alleges violations of Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated thereunder, based on allegedly false and misleading statements and omissions relating to the wire insulation shrinkback matter. The complaint seeks unspecified monetary damages, recovery of fees and costs, and other relief that the court may find appropriate. On May 8, 2024 and May 15, 2024, respectively, similar class action complaints were filed in the same court against the Company and certain current and former officers, but these complaints also named as defendants the Company’s Board of Directors, and the selling shareholders and underwriters of the Company’s secondary public offering. While the allegations are largely similar to the first complaint, these new complaints also alleged violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933. The new cases are captioned Oklahoma Police Pension and Retirement System v. Shoals Technologies Group, Inc. and Kissimmee Utility Authority Employees Retirement Plan v. Shoals Technologies Group, Inc . On May 24, 2024, all of these cases were consolidated into one action. Plaintiffs Oklahoma Police Pension and Retirement System and Erste Asset Management GmbH have filed Lead Plaintiff Motions, which are currently pending. Although the Company intends to vigorously defend against these claims, there is no guarantee that the Company will prevail. Accordingly, the Company is unable to determine the ultimate outcome of this consolidated lawsuit or determine the amount or range of potential losses associated with the consolidated lawsuit. On May 16, 2024, a derivative shareholder action was filed against certain current and former officers and directors of the Company in the United States District Court for the Middle District of Tennessee, Nashville Division, captioned Corwin v. Forth, et al . The complaint asserts claims for breach of fiduciary duty relating to the wire insulation shrinkback matter. The complaint seeks unspecified monetary damages, restitution, the adoption of certain governance reforms, recovery of fees and costs, and other relief that the court may find appropriate. The Company is named as a nominal defendant only. Although the Company intends to vigorously defend against these claims, there is no guarantee that the Company will prevail. Accordingly, the Company is unable to determine the ultimate outcome of this lawsuit or determine the amount or range of potential losses associated with the lawsuit. Surety Bonds The Company provides surety bonds to various parties as required for certain transactions initiated during the ordinary course of business to guarantee the Company’s performance in accordance with contractual or legal obligations. As of June 30, 2024, the maximum potential payment obligation with regard to surety bonds was $2.4 million.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes During the year ended December 31, 2023, the Company acquired the remaining non-controlling interest in Shoals Parent LLC and contributed 100% of its interest to its wholly-owned subsidiary, Shoals Intermediate Parent, thereby eliminating the Company’s Up-C structure. As a result of the contribution, Shoals Parent LLC ceased to be treated as a partnership for U.S. federal income tax purposes and became a single-member disregarded entity. Accordingly, the Company converted its outside basis differences in its investment in Shoals Parent LLC and remeasured its deferred taxes using the inside basis differences of Shoals Parent LLC’s assets and liabilities. In calculating the provision for interim income taxes, in accordance with ASC Topic 740, an estimated annual effective tax rate is applied to year-to-date ordinary income. At the end of each interim period, the Company estimates the effective tax rate expected to be applicable for the full fiscal year. For annual periods, the Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. In assessing the realizability of deferred tax assets, management considers whether it is more-likely-than-not that the deferred tax assets will be realized. Deferred tax assets and liabilities are calculated by applying existing tax laws and the rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the year of the enacted rate change. The Company accounts for uncertainty in income taxes using a recognition and measurement threshold for tax positions taken or expected to be taken in a tax return, which are subject to examination by federal and state taxing authorities. The tax benefit from an uncertain tax position is recognized when it is more likely than not that the position will be sustained upon examination by taxing authorities based on technical merits of the position. The amount of the tax benefit recognized is the largest amount of the benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The effective tax rate and the tax basis of assets and liabilities reflect management’s estimates of the ultimate outcome of various tax uncertainties. The Company recognizes penalties and interest related to uncertain tax positions within the income tax expense line in the accompanying condensed consolidated statements of operations. As of the quarter ended June 30, 2024, the Company recorded $1.0 million of gross unrecognized tax benefits inclusive of interest and penalties, all of which, if recognized, would favorably impact the effective tax rate. The Company recognizes penalties and interest related to uncertain tax positions within the income tax expense line in the accompanying condensed consolidated statements of operations. The Company files U.S. federal and certain state income tax returns. The income tax returns of the Company are subject to examination by U.S. federal and state taxing authorities for various time periods, depending on those jurisdictions’ rules, generally after the income tax returns are filed.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Jun. 30, 2024
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue Recognition Disaggregation of revenue Based on ASC Topic 606 provisions, the Company disaggregates its revenue from contracts with customers based on product type. Revenue by product type is disaggregated between system solutions and components. System solutions are contracts under which the Company provides multiple products typically in connection with the design and specification of an entire EBOS system. Components represents sales of individual components. The following table presents the Company’s revenue disaggregated by product type (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 System solutions $ 79,292 $ 102,061 $ 144,350 $ 193,360 Components 19,957 17,147 45,706 30,934 Total revenue $ 99,249 $ 119,208 $ 190,056 $ 224,294 Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables, retainage, and deferred revenue on the condensed consolidated balance sheets, recorded on a contract-by-contract basis at the end of each reporting period. The Company’s contract balances consist of the following (in thousands): Location on the Condensed Consolidated Balance Sheets June 30, December 31, 2023 Billed accounts receivable Accounts receivable, net $ 88,565 $ 102,232 Retainage Accounts receivable, net $ 3,696 $ 4,886 Unbilled receivables Unbilled receivables $ 17,015 $ 40,136 Deferred revenue Deferred revenue $ 21,244 $ 22,228 The majority of the Company’s contract amounts are billed as work progresses in accordance with agreed-upon contractual terms, which generally coincide with the shipment of one or more phases of the project. Billing sometimes occurs subsequent to revenue recognition, resulting in unbilled receivables. The changes in unbilled receivables relate to fluctuations in the timing of billings for the Company’s revenue recognized over time. As of December 31, 2022, billed accounts receivable and unbilled receivables were $48.6 million and $16.7 million, respectively. Certain contracts contain retainage provisions. Retainage represents a contract asset for the portion of the contract price earned by the Company for work performed but held for payment by the customer as a form of security until the Company obtains specified milestones. The Company typically bills retainage amounts as work is performed. Retainage provisions are not considered a significant financing component because they are intended to protect the customer in the event that some or all of the obligations under the contract are not completed. The changes in retainage relate to fluctuations in the timing of retainage billings and achievement of specified milestones. As of December 31, 2022, retainage was $2.0 million. The Company also receives deferred revenue in the form of customer deposits. The customer deposits are short term as the related performance obligations are typically fulfilled within 12 months. The changes in deferred revenue relate to fluctuations in the timing of customer deposits and completion of performance obligations. During the three and six months ended June 30, 2024, $6.1 million and $16.0 million, respectively, of deferred revenue recorded as of December 31, 2023 was recognized in revenue. As of December 31, 2022, deferred revenue was $23.3 million and during the three and six months ended June 30, 2023, $6.2 million and $18.4 million, respectively, of deferred revenue recorded as of December 31, 2022, was recognized in revenue.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2024
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On July 24, 2024, a derivative shareholder action was filed against certain current and former officers and directors of the Company in the United States District Court for the Middle District of Tennessee, Nashville Division, captioned Ouellet v. Whitaker et al. The complaint asserts claims for breach of fiduciary duty, gross mismanagement, abuse of control, waste of corporate assets, unjust enrichment, and violations of Section 14(a) of the Exchange Act, in each case, relating to the wire insulation shrinkback matter. The complaint seeks unspecified monetary damages, restitution, the adoption of certain governance reforms, recovery of fees and costs, and other relief that the court may find appropriate. The Company is named as a nominal defendant only. Although the Company intends to vigorously defend against these claims, there is no guarantee that the Company will prevail. Accordingly, the Company is unable to determine the ultimate outcome of this lawsuit or determine the amount or range of potential losses associated with the lawsuit.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Basis of Accounting and Presentation	Basis of Accounting and Presentation
Principles of Consolidation	Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Reclassifications	Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation.
Non-Controlling Interests	Non-Controlling Interests The non-controlling interests on the condensed consolidated statements of operations represented a portion of earnings or loss attributable to the economic interests in the Company’s former subsidiary, Shoals Parent LLC, formerly held by direct or indirect holders of LLC Interests and our Class B common stock, including the founder and certain current and former executive officers, employees and their respective permitted transferees (collectively, the "Continuing Equity Owners”). As of March 2023, the Company, along with a wholly-owned subsidiary, Shoals Intermediate Parent, owned 100% of Shoals Parent LLC. Effective December 31, 2023, Shoals Parent LLC merged with and into Shoals Intermediate Parent with Shoals Intermediate Parent as the surviving corporation.
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from those estimates. Significant estimates include revenue recognition, allowance for credit losses, useful lives of property, plant and equipment and other intangible assets, impairment of long-lived assets, allowance for obsolete or slow moving inventory, valuation allowance on deferred tax assets, equity-based compensation expense and warranty liability.
Fair Value	Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company follows a fair value hierarchy which requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Three levels of inputs may be used to measure fair value, as follows: • Level 1 – Quoted prices in active markets for identical assets or liabilities. • Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 – Unobservable inputs that are supported by little or no market activity that are significant to the fair value of the assets or liabilities. The fair values of the Company’s cash and cash equivalents, accounts receivable, and accounts payable approximate their carrying values due to their short maturities. The carrying value of the Company’s long-term debt and revolving line of credit approximates fair value and is considered level 2, as they are based on current market rates at which the Company could borrow funds with similar terms.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Not Yet Adopted In October 2023, the FASB issued ASU 2023-06 Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative. This ASU amends the disclosure or presentation requirements related to various subtopics in the FASB Accounting Standards Codification. For SEC registrants, the effective date for each amendment will be the date on which the SEC’s removal of that related disclosure requirement from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. The Company will monitor the removal of various requirements from the current regulations in order to determine when to adopt the related amendments, but does not anticipate the adoption of the new guidance will have a material impact on the Company’s consolidated financial statements. The Company will continue to evaluate the impact of this guidance on its consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which modifies the disclosure and presentation requirements of reportable segments. The amendments in the update require the disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit and loss. The amendments also require disclosure of all other segment items by reportable segment and a description of its composition. Additionally, the amendments require disclosure of the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. This update is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact that this guidance will have on the presentation of its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands disclosures in an entity’s income tax rate reconciliation table and disclosures regarding cash taxes paid both in the U.S. and foreign jurisdictions. The update will be effective for annual periods beginning after December 15, 2024. The Company is currently evaluating the impact that this guidance will have on the presentation of its consolidated financial statements. Management does not believe that any other recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Company’s condensed consolidated financial statements.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Schedule of Revenue and Accounts Receivable Concentration Risks	The Company had the following revenue concentration representing approximately 10% or more of revenue for the six months ended June 30, 2024 and 2023 and related accounts receivable concentration as of June 30, 2024 and December 31, 2023: 2024 2023 Revenue % Accounts Revenue % Accounts Customer A 35.2 % 43.8 % 25.7 % 37.5 %

Accounts Receivable (Tables)

Accounts Receivable (Tables)	6 Months Ended
	Jun. 30, 2024
Receivables [Abstract]
Schedule of Accounts Receivable	Accounts receivable, net consists of the following (in thousands): June 30, December 31, 2023 Accounts receivable $ 93,020 $ 107,877 Less: allowance for credit losses (759) (759) Accounts receivable, net $ 92,261 $ 107,118

Inventory (Tables)

Inventory (Tables)	6 Months Ended
	Jun. 30, 2024
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventory, net consists of the following (in thousands): June 30, December 31, 2023 Raw materials $ 63,543 $ 57,608 Work in process 2,051 1,111 Finished goods 1,088 654 Allowance for obsolete or slow-moving inventory (6,676) (6,569) Inventory, net $ 60,006 $ 52,804

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	6 Months Ended
	Jun. 30, 2024
Property, Plant and Equipment [Abstract]
Schedule of Property, Plant, and Equipment, Net	Property, plant, and equipment, net consists of the following (in thousands): Estimated Useful Lives (Years) June 30, December 31, 2023 Land N/A $ 840 $ 840 Building and land improvements 5-40 13,799 13,134 Machinery and equipment 3-5 20,978 17,528 Furniture and fixtures 3-7 2,626 2,766 Vehicles 5 125 125 38,368 34,393 Less: accumulated depreciation (11,436) (9,557) Property, plant and equipment, net $ 26,932 $ 24,836

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Other Intangible Assets	Other intangible assets, net consists of the following (in thousands): Estimated Useful Lives (Years) June 30, December 31, 2023 Amortizable: Costs: Customer relationships 13 $ 53,100 $ 53,100 Developed technology 13 34,600 34,600 Trade names 13 11,900 11,900 Backlog 1 600 600 Noncompete agreements 5 2,000 2,000 Total amortizable intangibles 102,200 102,200 Accumulated amortization: Customer relationships 29,157 27,135 Developed technology 18,853 17,522 Trade names 6,714 6,275 Backlog 600 600 Noncompete agreements 2,000 2,000 Total accumulated amortization 57,324 53,532 Total other intangible assets, net $ 44,876 $ 48,668

Accrued Expenses and Other (Tab

Accrued Expenses and Other (Tables)	6 Months Ended
	Jun. 30, 2024
Payables and Accruals [Abstract]
Schedule of Accrued Expenses and Other Consists	Accrued expenses and other consists of the following (in thousands): June 30, December 31, 2023 Accrued compensation $ 3,793 $ 10,796 Accrued interest 288 5,934 Other accrued expenses 5,602 6,177 Total accrued expenses and other $ 9,683 $ 22,907

Warranty Liability (Tables)

Warranty Liability (Tables)	6 Months Ended
	Jun. 30, 2024
Guarantees and Product Warranties [Abstract]
Schedule of Warranty Liability	Warranty liability, which includes both general warranty and wire insulation shrinkback warranty, is estimated as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Warranty liability, beginning of period $ 51,799 $ 400 $ 54,914 $ 560 Warranty expense 829 9,386 1,394 9,386 Payments (5,298) (152) (8,978) (312) Warranty liability, end of period 47,330 9,634 47,330 9,634 Less: current portion 31,148 9,634 31,148 9,634 Warranty liability, net current portion $ 16,182 $ — $ 16,182 $ —

Long-Term Debt (Tables)

Long-Term Debt (Tables)	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
Schedule of Long-term Debt	Long-term debt consists of the following (in thousands): June 30, December 31, 2023 Term Loan Facility $ — $ 143,750 Revolving Credit Facility 146,750 40,000 Less: deferred financing costs — (2,305) Total debt, net of deferred financing costs 146,750 181,445 Less: current portion — (2,000) Long-term debt, net current portion $ 146,750 $ 179,445

Earnings per Share ("EPS") (Tab

Earnings per Share ("EPS") (Tables)	6 Months Ended
	Jun. 30, 2024
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Earnings Per Share	Basic and diluted EPS of Class A common stock have been computed as follows (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Numerator: Net income attributable to Shoals Technologies Group, Inc. - basic $ 11,802 $ 18,924 $ 16,576 $ 33,220 Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Reallocation of net income attributable to non-controlling interests from the assumed exchange of Class B common stock — — — — Net income attributable to Shoals Technologies Group, Inc. - diluted $ 11,802 $ 18,924 $ 16,576 $ 33,220 Denominator: Weighted average shares of Class A common stock outstanding - basic 169,991 169,887 170,136 158,213 Effect of dilutive securities: Restricted / performance stock units 109 354 116 481 Class B common stock — — — — Weighted average shares of Class A common stock outstanding - diluted 170,100 170,241 170,252 158,694 Earnings per share of Class A common stock - basic $ 0.07 $ 0.11 $ 0.10 $ 0.21 Earnings per share of Class A common stock - diluted $ 0.07 $ 0.11 $ 0.10 $ 0.21

Equity-Based Compensation (Tabl

Equity-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
Schedule of RSU And PSU Activity	Activity under the 2021 Incentive Plan for RSUs was as follows: Six Months Ended Restricted Weighted Average Price Outstanding, December 31, 2023 1,171,466 $ 23.87 Granted 631,595 $ 13.26 Vested (446,389) $ 22.12 Forfeited (54,336) $ 22.77 Outstanding, June 30, 2024 1,302,336 $ 19.26 Activity under the 2021 Incentive Plan for PSUs was as follows: Six Months Ended Performance Weighted Average Price Outstanding, December 31, 2023 293,466 $ 22.59 Granted 324,099 $ 15.30 Vested (12,967) $ 18.65 Forfeited (9,168) $ 24.57 Outstanding, June 30, 2024 595,430 $ 18.68

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
	Jun. 30, 2024
Revenue from Contract with Customer [Abstract]
Schedule of Revenue Disaggregated by Product	The following table presents the Company’s revenue disaggregated by product type (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 System solutions $ 79,292 $ 102,061 $ 144,350 $ 193,360 Components 19,957 17,147 45,706 30,934 Total revenue $ 99,249 $ 119,208 $ 190,056 $ 224,294
Schedule of Contract Balances	The Company’s contract balances consist of the following (in thousands): Location on the Condensed Consolidated Balance Sheets June 30, December 31, 2023 Billed accounts receivable Accounts receivable, net $ 88,565 $ 102,232 Retainage Accounts receivable, net $ 3,696 $ 4,886 Unbilled receivables Unbilled receivables $ 17,015 $ 40,136 Deferred revenue Deferred revenue $ 21,244 $ 22,228

Organization and Business (Deta

Organization and Business (Details) - subsidiary	Jun. 30, 2024	Jul. 01, 2023	Jun. 30, 2023	Mar. 31, 2023
Class of Stock [Line Items]
Number of subsidiaries	4
Shoals Parent
Class of Stock [Line Items]
Ownership interest		100%	100%	100%

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Narrative (Details)	Jul. 01, 2023	Jun. 30, 2023	Mar. 31, 2023
Shoals Parent
Condensed Income Statements, Captions [Line Items]
Ownership interest	100%	100%	100%

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Schedule of Revenue and Accounts Receivable Concentrations (Details) - Customer A - Customer Concentration Risk	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Revenue %
Concentration Risk [Line Items]
Concentration risk	35.20%	25.70%
Accounts Receivable %
Concentration Risk [Line Items]
Concentration risk	43.80%	37.50%

Accounts Receivable (Details)

Accounts Receivable (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Receivables [Abstract]
Accounts receivable	$ 93,020	$ 107,877
Less: allowance for credit losses	(759)	(759)
Accounts receivable, net	$ 92,261	$ 107,118

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Raw materials	$ 63,543	$ 57,608
Work in process	2,051	1,111
Finished goods	1,088	654
Allowance for obsolete or slow-moving inventory	(6,676)	(6,569)
Inventory, net	$ 60,006	$ 52,804

Property, Plant and Equipment -

Property, Plant and Equipment - Schedule of Property, Plant, and Equipment, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 38,368	$ 34,393
Less: accumulated depreciation	(11,436)	(9,557)
Property, plant and equipment, net	26,932	24,836
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	840	840
Building and land improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 13,799	13,134
Building and land improvements | Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Lives (Years)	5 years
Building and land improvements | Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Lives (Years)	40 years
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 20,978	17,528
Machinery and equipment | Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Lives (Years)	3 years
Machinery and equipment | Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Lives (Years)	5 years
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 2,626	2,766
Furniture and fixtures | Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Lives (Years)	3 years
Furniture and fixtures | Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Lives (Years)	7 years
Vehicles
Property, Plant and Equipment [Line Items]
Estimated Useful Lives (Years)	5 years
Property, plant and equipment, gross	$ 125	$ 125

Property, Plant and Equipment_2

Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 1.3	$ 0.6	$ 2.4	$ 1.1
Depreciation expense allocated to cost of revenue	1	0.4	1.9	0.8
Depreciation expense allocated to operating expenses	$ 0.3	$ 0.2	$ 0.5	$ 0.3

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Changes in goodwill			$ 0
Goodwill	$ 69,941		69,941		$ 69,941
Amortization expense of intangible assets	$ 1,900	$ 2,000	$ 3,800	$ 4,000

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets - Schedule of Other Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Total amortizable intangibles	$ 102,200	$ 102,200
Total accumulated amortization	57,324	53,532
Total other intangible assets, net	$ 44,876	48,668
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Lives (Years)	13 years
Total amortizable intangibles	$ 53,100	53,100
Total accumulated amortization	$ 29,157	27,135
Developed technology
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Lives (Years)	13 years
Total amortizable intangibles	$ 34,600	34,600
Total accumulated amortization	$ 18,853	17,522
Trade names
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Lives (Years)	13 years
Total amortizable intangibles	$ 11,900	11,900
Total accumulated amortization	$ 6,714	6,275
Backlog
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Lives (Years)	1 year
Total amortizable intangibles	$ 600	600
Total accumulated amortization	$ 600	600
Noncompete agreements
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Lives (Years)	5 years
Total amortizable intangibles	$ 2,000	2,000
Total accumulated amortization	$ 2,000	$ 2,000

Accrued Expenses and Other (Det

Accrued Expenses and Other (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Accrued compensation	$ 3,793	$ 10,796
Accrued interest	288	5,934
Other accrued expenses	5,602	6,177
Total accrued expenses and other	$ 9,683	$ 22,907

Warranty Liability - Narrative

Warranty Liability - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Product Warranty Liability [Line Items]
Provision for warranty expense			$ 1,394,000	$ 9,386,000
Warranty liability	$ 47,330,000	$ 9,634,000	47,330,000	9,634,000	$ 51,799,000	$ 54,914,000	$ 400,000	$ 560,000
Products Without Service
Product Warranty Liability [Line Items]
Estimated accrued warranty liability	1,400,000		1,400,000			0
Provision for warranty expense	800,000	500,000	1,400,000	500,000
Wire Harness
Product Warranty Liability [Line Items]
Provision for warranty expense	0	$ 8,900,000	0	$ 8,900,000
Warranty liability and expenses, high end of potential loss	59,700,000		59,700,000
Warranty liability and expenses, low end of potential loss	184,900,000		184,900,000
Warranty liability amount higher than expected			125,200,000
Warranty liability	$ 46,000,000		$ 46,000,000			$ 54,900,000

Warranty Liability - Schedule o

Warranty Liability - Schedule of Warranty Liability (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]
Warranty liability, beginning of period	$ 51,799	$ 400	$ 54,914	$ 560
Warranty expense	829	9,386	1,394	9,386
Payments	(5,298)	(152)	(8,978)	(312)
Warranty liability, end of period	47,330	9,634	47,330	9,634
Less: current portion	31,148	9,634	31,148	9,634	$ 31,099
Warranty liability, less current portion	$ 16,182	$ 0	$ 16,182	$ 0	$ 23,815

Long-Term Debt - Schedule of Lo

Long-Term Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Less: deferred financing costs	$ 0	$ (2,305)
Total debt, net of deferred financing costs	146,750	181,445
Less: current portion	0	(2,000)
Long-term debt, net current portion	146,750	179,445
Senior Secured Credit Agreement | Line of Credit | Term Loan Facility
Debt Instrument [Line Items]
Long-term debt, gross	0	143,750
Senior Secured Credit Agreement | Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Long-term debt, gross	$ 146,750	$ 40,000

Long-Term Debt - Narrative (Det

Long-Term Debt - Narrative (Details) - USD ($)			6 Months Ended
	Mar. 19, 2024	Jan. 19, 2024	Jun. 30, 2024	Jun. 30, 2023	Mar. 18, 2024	Dec. 31, 2023
Term Loan Facility
Debt Instrument [Line Items]
Repayments of lines of credit			$ 143,750,000	$ 1,000,000
Revolving Credit Facility
Debt Instrument [Line Items]
Repayments of lines of credit			$ 42,000,000	$ 33,000,000
Senior Secured Credit Agreement | Line of Credit | Term Loan Facility
Debt Instrument [Line Items]
Term of debt instrument			6 years
Repayments of lines of credit	$ 43,800,000	$ 100,000,000
Long-term debt, gross			$ 0			$ 143,750,000
Senior Secured Credit Agreement | Line of Credit | Term Loan Facility | Debt, Covenant Period One
Debt Instrument [Line Items]
Maximum net leverage ratio	4.25
Senior Secured Credit Agreement | Line of Credit | Term Loan Facility | Debt, Covenant Period Two
Debt Instrument [Line Items]
Maximum net leverage ratio	4
Senior Secured Credit Agreement | Line of Credit | Term Loan Facility | SOFR | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	2.25%
Senior Secured Credit Agreement | Line of Credit | Term Loan Facility | SOFR | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate	3%
Senior Secured Credit Agreement | Line of Credit | Term Loan Facility | Base Rate | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	1.25%
Senior Secured Credit Agreement | Line of Credit | Term Loan Facility | Base Rate | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate	2%
Senior Secured Credit Agreement | Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity of credit facility	$ 200,000,000				$ 150,000,000
Interest rate margin reduction	0.25%
Interest rate step-down	0.25%
Commitment fee applicable	0.10%
Commitment fee applicable, additional step-down	0.05%
Long-term debt, gross			146,750,000			$ 40,000,000
Letters of credit outstanding, amount			300,000
Remaining borrowing capacity under credit facility			$ 52,900,000
Senior Secured Credit Agreement | Line of Credit | Revolving Credit Facility | SOFR
Debt Instrument [Line Items]
Basis spread on variable rate	2.50%		2.50%
Senior Secured Credit Agreement | Line of Credit | Revolving Credit Facility | SOFR | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate			7.94%
Senior Secured Credit Agreement | Line of Credit | Revolving Credit Facility | SOFR | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate			7.95%
Senior Secured Credit Agreement | Line of Credit | Revolving Credit Facility | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate	1.50%

Earnings per Share ("EPS") - Sc

Earnings per Share ("EPS") - Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Numerator:
Net income attributable to Shoals Technologies Group, Inc. - basic	$ 11,802	$ 18,924	$ 16,576	$ 33,220
Reallocation of net income attributable to non-controlling interests from the assumed exchange of Class B common stock	0	0	0	0
Net income attributable to Shoals Technologies Group, Inc. - diluted	$ 11,802	$ 18,924	$ 16,576	$ 33,220
Denominator:
Weighted average shares of Class A common stock outstanding - basic (in shares)	169,991	169,887	170,136	158,213
Weighted average shares of Class A common stock outstanding - diluted (in shares)	170,100	170,241	170,252	158,694
Earnings per share of Class A common stock - basic (in dollars per share)	$ 0.07	$ 0.11	$ 0.10	$ 0.21
Earnings per share of Class A common stock - diluted (in dollars per share)	$ 0.07	$ 0.11	$ 0.10	$ 0.21
Restricted / performance stock units
Denominator:
Effect of dilutive securities (in shares)	109	354	116	481
Class B Common Stock
Denominator:
Effect of dilutive securities (in shares)	0	0	0	0

Earnings per Share ("EPS") - Na

Earnings per Share ("EPS") - Narrative (Details) - shares	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023
Class B Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of shares outstanding (in shares)	0	0	0

Equity-Based Compensation - Nar

Equity-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Jan. 26, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation	$ 4.1	$ 4.4	$ 9.1	$ 12
Unrecognized compensation costs	$ 22		$ 22
Period for recognition of unrecognized compensation costs			1 year 9 months 18 days
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)			631,595
Granted (in dollars per share)			$ 13.26
Award vesting period			3 years
Restricted Stock Units | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in dollars per share)			$ 7.16
Restricted Stock Units | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in dollars per share)			$ 15.39
Restricted Stock Units | Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period			1 year
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)			324,099
Granted (in dollars per share)			$ 15.30
Award vesting period			3 years
Performance Shares | Minimum | Class A Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in dollars per share)			$ 13.01
Performance Shares | Maximum | Class A Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in dollars per share)			$ 15.39
2021 Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)					8,768,124

Equity-Based Compensation - Sch

Equity-Based Compensation - Schedule of Restricted And Performance Stock Unit Activity (Details)	6 Months Ended
	Jun. 30, 2024 $ / shares shares
Restricted Stock Units
Stock Units
Outstanding at beginning of period (in shares) | shares	1,171,466
Granted (in shares) | shares	631,595
Vested (in shares) | shares	(446,389)
Forfeited (in shares) | shares	(54,336)
Outstanding at end of period (in shares) | shares	1,302,336
Weighted Average Price
Balance at beginning of period (in dollars per share) | $ / shares	$ 23.87
Granted (in dollars per share) | $ / shares	13.26
Vested (in dollars per share) | $ / shares	22.12
Forfeited (in dollars per share) | $ / shares	22.77
Balance at end of period (in dollars per share) | $ / shares	$ 19.26
Performance Shares
Stock Units
Outstanding at beginning of period (in shares) | shares	293,466
Granted (in shares) | shares	324,099
Vested (in shares) | shares	(12,967)
Forfeited (in shares) | shares	(9,168)
Outstanding at end of period (in shares) | shares	595,430
Weighted Average Price
Balance at beginning of period (in dollars per share) | $ / shares	$ 22.59
Granted (in dollars per share) | $ / shares	15.30
Vested (in dollars per share) | $ / shares	18.65
Forfeited (in dollars per share) | $ / shares	24.57
Balance at end of period (in dollars per share) | $ / shares	$ 18.68

Stockholders' Equity (Details)

Stockholders' Equity (Details) $ / shares in Units, $ in Thousands	Jun. 12, 2024 USD ($) $ / shares shares	Aug. 05, 2024 $ / shares shares	Jun. 30, 2024 USD ($) vote shares	Jun. 11, 2024 USD ($)	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($) shares	Jul. 01, 2023	Jun. 30, 2023 USD ($) shares	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Class of Stock [Line Items]
Maximum ratio of class B common stock held to LLC interests held			1
Accelerated share repurchases (in shares)	2,202,643
Accelerated share repurchases (in percent)	60%
Accelerated share repurchases price (in dollars per share) | $ / shares	$ 6.81
Increase (decrease) to stockholders' equity | $			$ 544,586		$ 553,977	$ 544,996		$ 529,405	$ 506,080	$ 300,989
Subsequent Event
Class of Stock [Line Items]
Share repurchases price (in dollars per share) | $ / shares		$ 6.40
Treasury Stock
Class of Stock [Line Items]
Increase (decrease) to stockholders' equity | $	$ 15,000		(15,231)		0	0		0	0	0
Additional Paid-in Capital
Class of Stock [Line Items]
Increase (decrease) to stockholders' equity | $	(10,000)		$ 468,787		$ 474,749	$ 470,542		$ 461,705	$ 457,304	$ 256,894
Class A Common Stock
Class of Stock [Line Items]
Number of votes per share of common stock | vote			1
Common stock outstanding (in shares)			168,308,923			170,117,289
Common stock issued (in shares)			170,511,566			170,117,289
Share repurchase program, authorized, amount | $				$ 150,000
Accelerated share repurchases, payment | $	$ 25,000			$ 25,000
Accelerated share repurchases (in shares)	2,202,643
Class A Common Stock | Subsequent Event
Class of Stock [Line Items]
Accelerated share repurchases (in shares)		1,705,744
Class B Common Stock
Class of Stock [Line Items]
Number of votes per share of common stock | vote			1
Common stock outstanding (in shares)			0			0		0
Common stock issued (in shares)			0			0
Shoals Parent
Class of Stock [Line Items]
Ownership interest							100%	100%	100%
Shoals Intermediate Parent, Inc.
Class of Stock [Line Items]
Ownership interest						100%	100%

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	Feb. 28, 2024 patent	May 04, 2023 patent	Jun. 30, 2024 USD ($)
Loss Contingencies [Line Items]
Patents allegedly infringed upon	3	2
Patent removed from infringement	1
Surety Bond
Loss Contingencies [Line Items]
Maximum potential payment obligation with regard to surety bonds | $			$ 2.4

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2024	Dec. 31, 2023	Jul. 01, 2023
Subsidiary of Limited Liability Company or Limited Partnership [Line Items]
Penalties and interest on uncertain tax positions	$ 1
Shoals Intermediate Parent, Inc.
Subsidiary of Limited Liability Company or Limited Partnership [Line Items]
Ownership interest		100%	100%

Revenue Recognition - Schedule

Revenue Recognition - Schedule of Revenue Disaggregated by Product (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Disaggregation of Revenue [Line Items]
Total revenue	$ 99,249	$ 119,208	$ 190,056	$ 224,294
System solutions
Disaggregation of Revenue [Line Items]
Total revenue	79,292	102,061	144,350	193,360
Components
Disaggregation of Revenue [Line Items]
Total revenue	$ 19,957	$ 17,147	$ 45,706	$ 30,934

Revenue Recognition - Schedul_2

Revenue Recognition - Schedule of Contract Balances (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Billed accounts receivable	$ 88,565	$ 102,232	$ 48,600
Retainage	3,696	4,886	2,000
Unbilled receivables	17,015	40,136	$ 16,700
Deferred revenue	$ 21,244	$ 22,228

Revenue Recognition - Narrative

Revenue Recognition - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Billed accounts receivable	$ 88,565		$ 88,565		$ 48,600	$ 102,232
Unbilled receivables	17,015		17,015		16,700	40,136
Retainage	3,696		3,696		2,000	$ 4,886
Contract with customer, liability, revenue recognized	$ 6,100	$ 6,200	$ 16,000	$ 18,400	$ 23,300