Core Viewpoint - Array Technologies, Inc. (ARRY) is experiencing significant selling pressure, with a 24.3% decline over the past four weeks, but is now positioned for a potential trend reversal as it enters oversold territory, supported by positive earnings forecasts from Wall Street analysts [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold conditions, with a reading below 30 typically indicating that a stock is oversold [2]. - ARRY's current RSI reading is 27.91, suggesting that the heavy selling pressure may be exhausting itself, indicating a potential trend reversal [5]. Group 2: Fundamental Analysis - There is strong consensus among sell-side analysts that ARRY will report better earnings than previously predicted, with a 2% increase in the consensus EPS estimate over the last 30 days [7]. - An upward trend in earnings estimate revisions is generally associated with price appreciation in the near term, further supporting the potential for a turnaround in ARRY's stock price [7]. Group 3: Analyst Ratings - ARRY holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a near-term turnaround [8].

Group 1 - ARRAY Technologies is a leading global provider of solar tracking technology products, software, and services [4] - The company will participate in several upcoming investor events, including Citi's 2025 Natural Resources Conference on August 14, 2025, and Barclays 39th Annual Energy-Power Conference on September 2, 2025 [1][2] - ARRAY's senior management team will also attend the RE+ Conference from September 8-11, 2025, in Las Vegas [3] Group 2 - ARRAY's solutions are designed to maximize energy production and deliver value throughout the entire lifecycle of solar projects [4] - The company emphasizes its domestic manufacturing, diversified global supply chain, and customer-centric approach in its operations [4]

Core Insights - Jack Henry™ has launched MyFinancialHealth, a suite of financial health tools for over 1,000 banks and credit unions on the Banno Digital Platform™, enhancing their embedded offerings [1][3] - The platform operates on a free-to-premium model, allowing financial institutions to provide essential features at no cost, with optional paid upgrades for enhanced services [2][5] - The initiative aims to strengthen the connection between accountholders and their financial institutions, reducing financial fragmentation and improving digital engagement [3][6] Product Features - MyFinancialHealth includes tools for credit monitoring, identity protection, privacy management, and subscription management, all accessible in one platform [1][4] - Users engage with the platform an average of 2.2 times per month, with many opting for premium services that offer additional protection [4] - Financial institutions can offer core tools for free while creating new revenue opportunities through optional upgrades [4][5] Market Positioning - The launch aligns with Jack Henry's mission to enhance user experience and trust through innovative technology and data-driven insights [5][6] - Early adopter First Fidelity Bank highlights the value of providing comprehensive financial health tools to customers, reinforcing the bank's position as a one-stop financial service provider [4] - The expansion of embedded tools is part of a broader strategy to help financial institutions deliver exceptional user experiences with minimal effort [5][6]

Core Insights - Array Digital Infrastructure, Inc. reported total operating revenues of $916 million for Q2 2025, a decrease of 1% from $927 million in Q2 2024 [1][10] - Service revenues were $736 million, down from $743 million year-over-year [1][10] - Net income attributable to Array shareholders increased to $31 million, up 80% from $17 million in the same period last year, with diluted earnings per share rising to $0.36 from $0.20 [1][10][15] Financial Performance - Total operating revenues for the first half of 2025 were $1.807 billion, a decline of 4% compared to $1.877 billion in the first half of 2024 [15] - Operating income for Q2 2025 was $35 million, down 4% from $36 million in Q2 2024 [15] - Adjusted EBITDA for Q2 2025 was $254 million, a decrease of 6% from $268 million in Q2 2024 [21][25] Operational Highlights - The company completed the sale of its wireless operations and select spectrum assets to T-Mobile for $4.3 billion, which includes cash and assumed debt [10] - Array has 4,400 towers and a new Master License Agreement with T-Mobile, providing a stable revenue stream and growth opportunities [3][7] - Third-party tower revenues increased by 12% year-over-year [10] Future Transactions - Pending spectrum transactions with Verizon and AT&T are expected to close in the second half of 2025 and Q3 2026, respectively, subject to regulatory approvals [4][5][10] - The company is not providing financial guidance for 2025 [5] Shareholder Returns - A special dividend of $23.00 per share was declared, payable on August 19, 2025 [10]

Core Insights - Array Technologies, Inc. reported quarterly earnings of $0.25 per share, exceeding the Zacks Consensus Estimate of $0.21 per share, and showing an increase from $0.20 per share a year ago, resulting in an earnings surprise of +19.05% [1] - The company achieved revenues of $362.24 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 25.93% and up from $255.77 million year-over-year [2] - Array Technologies has outperformed consensus EPS estimates three times in the last four quarters and has topped revenue estimates four times in the same period [2] Company Performance - The stock has underperformed the market, losing about 5.1% since the beginning of the year, while the S&P 500 gained 7.9% [3] - The current consensus EPS estimate for the upcoming quarter is $0.16 on revenues of $257.75 million, and for the current fiscal year, it is $0.65 on revenues of $1.11 billion [7] Industry Outlook - The solar industry, to which Array Technologies belongs, is currently ranked in the bottom 39% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Array Technologies' stock performance [5][6]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $362 million, reflecting a 42% year-over-year growth and a 20% sequential increase [27] - Net income attributable to common shareholders was $28 million, up 138% compared to the prior year [31] - Adjusted EBITDA was $64 million, representing an adjusted EBITDA margin of 17.5% [30] Business Line Data and Key Metrics Changes - Volume delivered in Q2 increased by 52% year-over-year and 13% sequentially, with year-to-date volume growth at 84% [28] - Adjusted gross profit increased by 12% year-over-year to $101 million, with an adjusted gross margin of 27.8% [29] - The product mix improved, with new products constituting over 35% of the order book [12] Market Data and Key Metrics Changes - The order book stood at $1.8 billion, including $645 million of remaining performance obligations [37] - The company experienced strong international performance, although some markets like Brazil faced economic challenges [55] Company Strategy and Development Direction - The acquisition of APA Solar is expected to expand the product portfolio and enhance value for customers and shareholders [13] - The company is focusing on enhancing customer engagement and operational excellence to navigate regulatory challenges [15][16] - There is an emphasis on domestic supply chain expansion and onshoring production to mitigate risks [23][24] Management's Comments on Operating Environment and Future Outlook - Management noted that regulatory changes are creating a challenging environment for customers, impacting project timelines [15][16] - The company expects continued booking momentum through 2025, with a focus on converting quotes into awards [45] - Management expressed confidence in the ability to deliver long-term value despite current uncertainties [40] Other Important Information - The company ended the quarter with $377 million in total cash and total liquidity above $500 million [33] - Free cash flow for the period was $37 million, significantly up from $2 million in the same period last year [32] Q&A Session Summary Question: Near-term booking outlook amidst uncertainties - Management indicated that Q2 saw muted bookings until the last weeks, with expectations for increased activity as clarity improves [45][46] Question: Impact of legacy fixed price VCA on financials - Management explained that descoping and reconfiguring the legacy VCA resulted in improved margins and a more predictable backlog [48][49] Question: International market progress - Management reported strong performance in international markets but noted unevenness in bookings, particularly in Brazil due to high interest rates [55][56] Question: Updated revenue outlook drivers - The majority of the revenue guidance increase was attributed to volume rather than price, with expectations for project execution driving growth [74][75] Question: Gross margin expectations for the second half - Management indicated that the gross margin run rate for the second half is expected to be around 29-30%, with improvements from legacy issues behind [78][79] Question: Project lead times and permitting impacts - Management stated that there have been no significant impacts from the Department of Interior permitting yet, as most solar projects do not involve federal lands [85][87] Question: Future debookings and order book management - Management acknowledged the potential for future debookings but emphasized a more conservative approach to adding orders to the backlog [90][92]

PART I - FINANCIAL INFORMATION [Item 1. Unaudited Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Array Technologies, Inc. as of June 30, 2025, and for the three and six-month periods then ended, including balance sheets, statements of operations, comprehensive income, changes in equity, and cash flows, along with detailed notes explaining accounting policies and financial details [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to **$1.54 billion** from **$1.43 billion** at year-end 2024, driven by higher accounts receivable and goodwill, while total liabilities rose to **$1.18 billion** from **$1.14 billion**, and stockholders' equity remained at a deficit of **$70.9 million** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $377,271 | $362,992 | | Accounts receivable, net | $367,175 | $275,838 | | Inventories, net | $177,966 | $200,818 | | Total current assets | $1,038,454 | $998,724 | | Goodwill | $172,608 | $160,189 | | **Total assets** | **$1,542,158** | **$1,425,999** | | **Liabilities & Equity** | | | | Accounts payable | $161,248 | $172,368 | | Deferred revenue | $151,758 | $119,775 | | Total current liabilities | $468,335 | $437,814 | | Long-term debt, net | $657,591 | $646,570 | | **Total liabilities** | **$1,176,863** | **$1,137,164** | | **Total stockholders' equity** | **($70,867)** | **($118,096)** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the three months ended June 30, 2025, revenue grew **41.6%** year-over-year to **$362.2 million**, and net income increased **68.4%** to **$43.3 million**, while for the six-month period, revenue grew **62.4%** to **$664.6 million**, and net income more than doubled to **$60.0 million**, boosted by a **$14.2 million** gain on debt extinguishment Statement of Operations Summary (in thousands, except per share amounts) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $362,243 | $255,766 | $664,606 | $409,169 | | Gross Profit | $97,124 | $85,953 | $173,552 | $141,043 | | Income from Operations | $46,376 | $39,602 | $73,660 | $48,016 | | Gain on extinguishment of debts, net | $14,207 | $— | $14,207 | $— | | Net Income | $43,262 | $25,698 | $60,008 | $27,863 | | Diluted EPS | $0.19 | $0.08 | $0.20 | $— | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Comprehensive income for Q2 2025 was **$64.7 million**, a significant turnaround from a loss of **$18.1 million** in Q2 2024, driven by higher net income and a positive foreign currency translation adjustment of **$21.4 million** Comprehensive Income (Loss) (in thousands) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $43,262 | $25,698 | $60,008 | $27,863 | | Foreign currency translation | $21,439 | ($43,768) | $36,716 | ($63,010) | | **Comprehensive income (loss)** | **$64,701** | **($18,070)** | **$96,724** | **($35,147)** | [Condensed Consolidated Statements of Changes in Redeemable Perpetual Preferred Stock and Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Redeemable%20Perpetual%20Preferred%20Stock%20and%20Stockholders%27%20Equity) For the six months ended June 30, 2025, total stockholders' equity improved from a deficit of **$118.1 million** to **$70.9 million**, primarily due to **$60.0 million** net income and a **$36.7 million** positive foreign currency translation, partially offset by **$29.2 million** in preferred dividends and accretion and **$26.7 million** for Capped Calls - The accumulated deficit decreased from **$370.6 million** at the end of 2024 to **$310.6 million** as of June 30, 2025, due to the **$60.0 million** net income for the period[21](index=21&type=chunk) - Accumulated other comprehensive loss improved significantly from **($45.4) million** to **($8.7) million**, driven by a **$36.7 million** positive foreign currency translation adjustment[21](index=21&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash provided by operating activities was **$30.8 million**, a decrease from **$51.5 million** in the prior-year period, mainly due to changes in working capital, while net cash used in financing activities was **$12.8 million**, reflecting significant debt restructuring, and the company's total cash position increased by **$14.6 million** Cash Flow Summary (in thousands) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $30,782 | $51,459 | | Net cash used in investing activities | ($8,983) | ($4,488) | | Net cash used in financing activities | ($12,776) | ($4,144) | | **Net change in cash** | **$14,629** | **$33,240** | - Financing activities in H1 2025 included proceeds from new convertible notes (**$345 million**), repayment of the term loan facility (**$233.9 million**), and repurchase of other convertible notes (**$78.4 million**)[26](index=26&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations for the line items in the financial statements, covering the company's two-segment structure, accounting for IRA vendor rebates and tax credits, debt restructuring including new convertible notes, revenue recognition policies, and updates on legal proceedings [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the financial results for the three and six months ended June 30, 2025, highlighting strong year-over-year revenue and net income growth driven by increased volume in the Array Legacy Operations segment, and covering key operational factors, including the impact of the OBBB Act, Section 45X tax credits, trade policies, recent debt refinancing, and the planned acquisition of APA Solar - Consolidated revenue for Q2 2025 increased **42%** year-over-year to **$362.2 million**, and for H1 2025 increased **62%** year-over-year to **$664.6 million**[212](index=212&type=chunk) - The company completed a private placement of **$345 million** in **2.875%** Convertible Senior Notes due 2031, using proceeds to repay its Term Loan Facility and repurchase **$100 million** of its 2028 Convertible Notes[165](index=165&type=chunk)[241](index=241&type=chunk) - On June 17, 2025, the company entered into a definitive agreement to acquire APA Solar, LLC, a manufacturer of solar racking systems, with the transaction expected to close in Q3 2025[164](index=164&type=chunk) - The company is navigating regulatory changes, including the One Big Beautiful Bill Act (OBBB), which alters the solar ITC and imposes new foreign entity limitations, and new AD/CVD tariffs on solar components[172](index=172&type=chunk)[185](index=185&type=chunk) [Results of Operations](index=47&type=section&id=Results%20of%20Operations) For Q2 2025, revenue increased **42%** year-over-year, driven by an **81%** volume increase in Array Legacy Operations, though partially offset by a **13%** ASP decrease, while gross profit rose **13%** to **$97.1 million**, but gross margin fell to **26.8%** from **33.6%** due to lower ASPs and higher costs in the Legacy segment, and operating expenses increased **9%** in Q2 Revenue by Segment (in thousands) | Segment | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Array Legacy Operations | $291,886 | $185,160 | 58% | | STI Operations | $70,357 | $70,606 | (0.4)% | | **Total** | **$362,243** | **$255,766** | **42%** | Gross Profit by Segment (in thousands) | Segment | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Array Legacy Operations | $84,005 | $77,306 | 9% | | STI Operations | $13,119 | $8,647 | 52% | | **Total** | **$97,124** | **$85,953** | **13%** | - Array Legacy Operations' Q2 revenue growth was driven by an **81%** increase in volume, partially offset by a **13%** decrease in ASPs[215](index=215&type=chunk) - Consolidated gross margin decreased to **26.8%** in Q2 2025 from **33.6%** in Q2 2024, primarily due to lower ASPs and higher costs in the Array Legacy segment[221](index=221&type=chunk)[222](index=222&type=chunk) [Liquidity and Capital Resources](index=51&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company had a cash balance of **$377.3 million** and **$133.7 million** available under its revolving credit facility, with cash from operations for H1 2025 at **$30.8 million**, and executed significant debt restructuring, including issuing **$345 million** in new 2031 convertible notes and repaying its Term Loan Facility - Cash balance was **$377.3 million** as of June 30, 2025, with **$133.7 million** available under the revolving credit facility[238](index=238&type=chunk) - In H1 2025, the company generated **$30.8 million** in cash from operations, down from **$51.5 million** in H1 2024[237](index=237&type=chunk)[244](index=244&type=chunk) - The company completed a major debt refinancing in June 2025, issuing new notes to extinguish its Term Loan and partially repurchase existing notes, resulting in a **$20.1 million** gain on extinguishment[241](index=241&type=chunk) - The company has a commitment to acquire APA Solar for a base price of **$210 million**, with **80%** paid in cash at closing and **20%** deferred, plus a potential earnout of up to **$40 million** in stock[250](index=250&type=chunk)[251](index=251&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=54&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that there have been no material changes to its market risk disclosures since its 2024 Annual Report, with key exposures remaining fluctuations in steel and aluminum prices and customer concentrations, and no use of financial instruments for trading purposes - There have been no material changes to the market risk information previously provided in the 2024 Annual Report[261](index=261&type=chunk) - Primary market risks include fluctuations in steel and aluminum prices and customer concentrations[260](index=260&type=chunk) [Controls and Procedures](index=54&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures as of June 30, 2025, and concluded they were effective at a reasonable assurance level, with no material changes in internal control over financial reporting during the quarter - The CEO and CFO concluded that as of June 30, 2025, the company's disclosure controls and procedures were effective at a reasonable assurance level[263](index=263&type=chunk)[264](index=264&type=chunk) - No material changes to the internal control over financial reporting occurred during the three months ended June 30, 2025[265](index=265&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=55&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in a putative class action lawsuit (the Plymouth Action) and related derivative complaints, with the Plymouth Action dismissed by the district court but currently under appeal, and the derivative actions stayed pending the appeal outcome, while the company believes the claims are without merit and has not recorded a material loss contingency - The company is defending against the Plymouth Action, a class action lawsuit alleging misstatements related to its 2020 and 2021 offerings, which was dismissed but is now on appeal[119](index=119&type=chunk)[121](index=121&type=chunk)[122](index=122&type=chunk) - Related derivative complaints filed in New York and Delaware are currently stayed pending the outcome of the Plymouth Action appeal[125](index=125&type=chunk)[127](index=127&type=chunk) [Risk Factors](index=55&type=section&id=Item%201A.%20Risk%20Factors) This section highlights material business risks, focusing on recent developments such as geopolitical instability, macroeconomic conditions like inflation, significant changes in U.S. trade policy including new and potential tariffs, and risks related to the reduction or elimination of government incentives for solar energy, and potential competitive disadvantage if products do not meet domestic content requirements - Geopolitical conflicts, such as the Russia-Ukraine war and Middle East instability, could disrupt business operations, impact global economic conditions, and restrict access to certain suppliers[269](index=269&type=chunk) - The company faces significant risk from escalating trade tensions and new tariffs imposed in 2025 on imports from China, Canada, Mexico, and other countries, which could increase costs and create market uncertainty[271](index=271&type=chunk)[273](index=273&type=chunk) - The reduction, elimination, or changes to government incentives like the solar ITC, particularly under the new OBBB legislation, could reduce demand for solar energy systems and harm the business[286](index=286&type=chunk)[288](index=288&type=chunk) - Failure to meet foreign entity of concern or domestic content requirements for tax credits could put the company at a competitive disadvantage and adversely impact U.S. sales[289](index=289&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=60&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities, use of proceeds, or issuer purchases of equity securities during the period - None[292](index=292&type=chunk) [Other Information](index=60&type=section&id=Item%205.%20Other%20Information) On August 4, 2025, the company amended the separation agreement with its former CFO, Kurt Wood, to make a one-time cash payment of **$20,000** in exchange for the cancellation of all his outstanding and unvested RSU and PSU awards, and no directors or officers adopted, amended, or terminated any 10b5-1 trading plans during the quarter - The company amended its separation agreement with former CFO Kurt Wood, providing a **$20,000** cash payment to cancel all his unvested equity awards[295](index=295&type=chunk) - No directors or officers adopted or terminated a Rule 10b5-1 trading plan during the three months ended June 30, 2025[296](index=296&type=chunk) [Exhibits](index=60&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including the Equity Purchase Agreement for the APA Solar acquisition, the indenture for the new 2031 Convertible Notes, an amendment to a separation agreement, and various officer certifications and XBRL data files - Key exhibits filed include the Equity Purchase Agreement for APA Solar, the indenture for the **2.875%** Convertible Senior Notes due 2031, and certifications by the CEO and CFO[297](index=297&type=chunk)[298](index=298&type=chunk)

Financial Performance - Revenue for 2Q25 was $362.2 million, a 42% increase compared to 2Q24 and a 20% increase compared to 1Q25[17, 45] - Gross profit for 2Q25 was $97.1 million with a gross margin of 26.8%[17, 47] - Adjusted EBITDA for 2Q25 was $63.6 million, representing a 15% year-over-year growth compared to 2Q24 and an adjusted EBITDA margin of 17.5%[17, 45, 47] - Adjusted EPS for 2Q25 was $0.25, a 26% increase year-over-year[45, 47] - The company generated $37.2 million in free cash flow during 2Q25[47] Strategic Initiatives - Array Technologies is acquiring APA Solar to expand its product offerings and addressable market, with an expected high-single-digit percentage accretion to Adjusted EPS before synergies[17, 23] - The company renewed its Revolving Credit Facility and issued $345 million in convertible notes while repurchasing $100 million of existing 2028 convertible notes[17] - Order book stands at $1.8 billion, with OmniTrack™ & SkyLink™ representing over 35% of the order book[17] Guidance - The company revised its full-year 2025 revenue guidance to $1.180 billion - $1.215 billion[58] - Adjusted EBITDA guidance is maintained at $185 million - $200 million[58]

Financial Results and Corporate Overview [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) ARRAY Technologies reported strong Q2 2025 financial results, with significant year-over-year growth in revenue, profitability, and volume - Year-to-date volume growth increased by **84%** compared to the same period in 2024[1](index=1&type=chunk) Q2 2025 Financial Performance | Metric | Q2 2025 | | :--- | :--- | | Revenue | $362.2 million | | Gross Margin | 26.8% | | Adjusted Gross Margin | 27.8% | | Net Income to Common Shareholders | $28.5 million | | Adjusted EBITDA | $63.6 million | | Net Income per Diluted Share | $0.19 | | Adjusted Net Income per Diluted Share | $0.25 | [CEO Commentary and Strategic Developments](index=1&type=section&id=CEO%20Commentary%20and%20Strategic%20Developments) The CEO highlighted strong commercial execution, an improved order book, and strategic initiatives including the APA Solar acquisition and capital structure improvements - Announced a definitive agreement to acquire APA Solar to enhance product offerings[3](index=3&type=chunk)[5](index=5&type=chunk) - Launched a new product, Hail XP™, to strengthen customer-focused solutions[3](index=3&type=chunk) - Improved capital structure by issuing **$345 million** in new convertible notes, repaying the term loan in full, and repurchasing **$100 million** of 2028 convertible notes at a discount[3](index=3&type=chunk)[5](index=5&type=chunk) - Total executed contracts and awarded orders stood at over **$1.8 billion** as of June 30, 2025[5](index=5&type=chunk) [Full Year 2025 Guidance](index=1&type=section&id=Full%20Year%202025%20Guidance) The company raised its full-year 2025 guidance, reflecting strong year-to-date performance and anticipated benefits from the Inflation Reduction Act Updated Full Year 2025 Guidance | Metric | New Guidance Range | | :--- | :--- | | Revenue | $1.180 billion to $1.215 billion | | Adjusted EBITDA | $185 million to $200 million | | Adjusted Net Income per Share | $0.63 to $0.70 | - Guidance includes benefits from the Inflation Reduction Act Section 45X for manufacturing torque tubes and structural fasteners[7](index=7&type=chunk) Financial Statements [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, ARRAY's balance sheet shows total assets of **$1.54 billion**, with liabilities increasing due to debt restructuring Balance Sheet Summary (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $377,271 | $362,992 | | Total current assets | $1,038,454 | $998,724 | | Total assets | $1,542,158 | $1,425,999 | | Total current liabilities | $468,335 | $437,814 | | Long-term debt, net | $657,591 | $646,570 | | Total liabilities | $1,176,863 | $1,137,164 | | Total stockholders' equity | ($70,867) | ($118,096) | [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 2025, revenue grew **41.6%** to **$362.2 million**, with net income significantly increasing, aided by a **$14.2 million** gain on debt extinguishment Statement of Operations Summary - Three Months Ended June 30 (in thousands) | Metric | 2025 | 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $362,243 | $255,766 | +41.6% | | Gross Profit | $97,124 | $85,953 | +13.0% | | Income from Operations | $46,376 | $39,602 | +17.1% | | Net Income | $43,262 | $25,698 | +68.4% | | Net Income to Common Shareholders | $28,474 | $11,949 | +138.3% | | Diluted EPS | $0.19 | $0.08 | +137.5% | - The company recorded a **$14.2 million** gain on the extinguishment of debts in Q2 2025, which significantly contributed to net income[28](index=28&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash from operating activities was **$30.8 million**, with financing activities dominated by debt restructuring and new convertible note issuance Cash Flow Summary - Six Months Ended June 30 (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $30,782 | $51,459 | | Net cash used in investing activities | ($8,983) | ($4,488) | | Net cash used in financing activities | ($12,776) | ($4,144) | | Net change in cash | $14,629 | $33,240 | - Major financing activities in the first six months of 2025 included: issuing **$345 million** of convertible notes, repaying **$233.9 million** of the term loan facility, and repurchasing **$78.4 million** of other convertible notes[30](index=30&type=chunk)[31](index=31&type=chunk) Non-GAAP Financial Measures and Reconciliations [Definition and Use of Non-GAAP Measures](index=4&type=section&id=Definition%20and%20Use%20of%20Non-GAAP%20Measures) The company uses non-GAAP measures like Adjusted Gross Profit, Adjusted EBITDA, and Adjusted Net Income to clarify core operational performance - The company uses non-GAAP measures including Adjusted Gross Profit, Adjusted Gross Margin, Adjusted EBITDA, Adjusted Net Income, and Free Cash Flow[15](index=15&type=chunk) - Adjustments to GAAP figures typically remove the impact of non-cash items and other costs not considered indicative of ongoing operations, such as amortization of intangibles, equity-based compensation, and acquisition-related expenses[16](index=16&type=chunk) [Reconciliation of GAAP to Non-GAAP Results](index=11&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Results) For Q2 2025, Adjusted EBITDA was **$63.6 million** and Adjusted Net Income was **$38.8 million**, reconciled from GAAP by adjusting for non-cash and non-operating items Q2 2025 GAAP to Non-GAAP Reconciliation (in thousands) | Metric | GAAP | Adjustments | Non-GAAP | | :--- | :--- | :--- | :--- | | Gross Profit | $97,124 | $3,640 | $100,764 (Adjusted) | | Net Income | $43,262 | $20,294 | $63,556 (Adjusted EBITDA) | | Net Income to Common Shareholders | $28,474 | $10,277 | $38,751 (Adjusted Net Income) | - Key adjustments to reconcile Net Income to Adjusted EBITDA for Q2 2025 included **$13.6 million** in income tax, **$8.8 million** in interest expense, **$9.9 million** in D&A, and **$3.9 million** in equity-based compensation, offset by a **$14.2 million** gain on debt extinguishment[32](index=32&type=chunk) - Free cash flow for Q2 2025 was **$37.2 million**, calculated from **$43.8 million** in net cash from operating activities less **$6.6 million** in capital expenditures[35](index=35&type=chunk) Company Information and Disclosures [About ARRAY Technologies, Inc.](index=2&type=section&id=About%20ARRAY%20Technologies%2C%20Inc.) ARRAY Technologies, Inc. is a leading global provider of solar tracking technology for utility-scale and distributed generation projects, highlighting U.S. manufacturing and a global supply chain - ARRAY is a global provider of solar tracking technology for utility-scale and distributed generation customers[9](index=9&type=chunk) - The company highlights its U.S. manufacturing base and diversified global supply chain as key strengths[9](index=9&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section contains cautionary language regarding forward-looking statements, warning that actual results may differ due to risks like industry demand, regulatory changes, and supply chain disruptions - The report includes forward-looking statements concerning future operations, business strategies, and financial plans[11](index=11&type=chunk) - Key risks identified include changes in demand for solar energy, regulatory shifts (such as the 'One Big Beautiful Bill'), supply chain interruptions, and interest rate fluctuations[12](index=12&type=chunk)

Core Insights - ARRAY Technologies, Inc. reported a strong second quarter for 2025, achieving a sequential revenue growth of 20% and raising its full-year revenue outlook due to positive performance and confidence in future execution [3][4]. Financial Performance - Revenue for the second quarter was $362.2 million, compared to $255.8 million in the same period last year, reflecting a year-over-year increase of approximately 41.5% [6][26]. - Gross margin was reported at 26.8%, with an adjusted gross margin of 27.8% [6][29]. - Net income attributable to common shareholders was $28.5 million, translating to earnings of $0.19 per share [6][26]. - Adjusted EBITDA for the quarter was $63.6 million, indicating a strong operational performance [6][29]. Business Developments - The company announced a definitive agreement to acquire APA Solar, which is expected to close in the coming weeks, enhancing its product offerings [3][6]. - ARRAY successfully issued $345 million in new convertible notes and repaid a higher-cost term loan in full, improving its capital structure [3][6]. Market Position and Outlook - ARRAY's CEO emphasized the importance of utility-scale solar in meeting rising electricity demand, highlighting the company's proactive measures to adapt to regulatory changes [4][3]. - The company has a robust order book with total executed contracts and awarded orders exceeding $1.8 billion as of June 30, 2025 [6][29]. - Full-year revenue guidance has been raised to a range of $1.180 billion to $1.215 billion, with adjusted EBITDA expected between $185 million and $200 million [7][6].