Problem is that revenue is not up to $10 mil per month. The company states that it recognizes revenue from interest income on consumer loans as interest is earned. Revenue is recorded when earned, which is generally over the period services are provided and no contingencies exist.
So if the buyer pays all up front in cash, then the company can recognize the full amount when the final permit is received from authorities.
However, most of their contracts are likely retail installment contracts with terms of 20-25 years. So the financing component is deferred over time and recognized as revenue over the contract term.
That’s the rub. They may do $X million of installations per month but it won’t ever get reflected on financials that way. That is why the headline that bulls use here is so misleading.
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