Company Overview - FTC Solar, Inc. is a leading provider of solar tracker systems, software, and engineering services, founded in 2017 by renewable energy industry veterans [3] - The company specializes in solar trackers that enhance energy production by optimizing solar panel orientation, offering a competitive installation cost-per-watt advantage [3] Upcoming Investor Meetings - FTC Solar's management team, including CEO Yann Brandt, will participate in investor meetings at the CLEANPOWER 2025 conference on May 20, 2025, in Phoenix, alongside analysts from UBS, Guggenheim, and Roth Securities [1] - The company will host in-person investor meetings at the Bank of America Power, Utilities and Alternative Energy Conference on May 28, 2025, in New York [2] - FTC Solar will also hold in-person investor meetings at the Roth Securities London Conference on June 25, 2025, in London [2] Contact Information - For investor inquiries, FTC Solar's Vice President of Investor Relations, Bill Michalek, can be contacted at (737) 241-8618 or via email at IR@FTCSolar.com [4]

FTC Solar (FTCI) Q1 2025 Earnings Call May 01, 2025 08:30 AM ET Company Participants Bill Michalek - Vice President of Investor Relations & Corporate CommunicationsYann Brandt - President & CEOCathy Behnen - Chief Financial Officer Conference Call Participants Jeffrey Osborne - AnalystPhilip Shen - Managing Director, Senior Research AnalystAmit Dayal - Managing Director & Senior Technology Analyst Operator Good day, and thank you for standing by. Welcome to the FTC Solar First Quarter twenty twenty five Ear ...

Financial Performance - Total revenue for the three months ended March 31, 2025, was $20,803,000, representing a 65.3% increase from $12,587,000 in the same period of 2024[167]. - Product revenue increased by 66.9% to $18,202,000, while service revenue rose by 54.6% to $2,601,000 compared to the prior year[167]. - The company reported a net loss of $3,819,000 for the three months ended March 31, 2025, compared to a net loss of $8,771,000 in the same period of 2024[165]. - Adjusted EBITDA for the three months ended March 31, 2025, was $(9.75) million, while for the same period in 2024, it was $(10.65) million[233]. - Adjusted net loss per share for the three months ended March 31, 2025, was $(0.84) on a diluted basis, compared to $(0.87) for the same period in 2024[233]. Cost Structure and Expenses - The company experienced a gross loss of $3,447,000 for the three months ended March 31, 2025, with a gross margin percentage of negative 16.6%, relatively flat compared to negative 16.7% in 2024[172][173]. - Operating expenses decreased to $7,113,000, down 31.5% from $10,394,000 in the same period last year, primarily due to reductions in research and development, selling and marketing, and general and administrative expenses[165]. - Research and development expenses were $924,000, a decrease of 35.8% from $1,439,000 in 2024, representing 4.4% of total revenue compared to 11.4% in the prior year[176]. - Selling and marketing expenses dropped to $1,136,000, down 52.4% from $2,388,000 in 2024, accounting for 5.5% of total revenue compared to 19.0% previously[178]. - General and administrative expenses were $5,053,000, a decrease of 23.1% from $6,567,000 in 2024, representing 24.3% of total revenue compared to 52.2% in the prior year[180]. Supply Chain and Market Conditions - The company has diversified its supply chain, reducing reliance on China from 90% in 2019 to qualifying suppliers outside of China for certain commodities as of March 31, 2025[141]. - Disruptions in transportation and supply chain have affected costs, with international conflicts and inflation impacting material prices and logistics[144]. - The company continues to monitor logistics markets and adjust transportation methods to optimize costs amid evolving supply chain challenges[145]. - The average selling price (ASP) of solar tracker systems is influenced by supply and demand dynamics, competitive pricing pressures, and changes in product mix[159]. - The company is exposed to market risks primarily due to customer concentrations and fluctuations in steel and aluminum prices[238]. Product and Technology Development - FTC Solar reported a revenue increase driven by the sale of solar tracker systems and customized components, with contracts ranging from tens of thousands to tens of millions of dollars[155]. - The company introduced SUNOPS, a cloud-based solar asset monitoring solution, in August 2023, enhancing operational performance evaluation for solar deployments[148]. - The company has invested in technology and personnel to enhance product capabilities and expand its patent portfolio, aiming to attract and retain customers[149]. Regulatory and Economic Factors - The Inflation Reduction Act of 2022 provides a 30% Investment Tax Credit (ITC) for solar projects starting construction by the end of 2032, declining to 26% and 22% for projects starting in 2033 and 2034, respectively[143]. - The U.S. imposed a universal 10% tariff on most imports effective April 5, 2025, with a 145% tariff on goods from China, impacting the cost structure of tracker systems[142]. - Climate change is expected to increase solar generation in the U.S. by 34% in 2025 and 17% in 2026, driving demand for FTC Solar's products[150]. Cash Flow and Capital Management - Cash utilized in operating activities was $8.5 million for the three months ended March 31, 2025, compared to $11.9 million in the same period of 2024, indicating a reduction of 28.5%[188][195]. - Working capital decreased from $27.1 million at December 31, 2024, to $20.2 million at March 31, 2025, a decline of approximately 25.5%[198]. - The company had $5.9 million in cash on hand and $20.2 million in working capital as of March 31, 2025[188]. - The company anticipates proceeds of up to $10 million from an additional private placement of debt executed on March 4, 2025[194]. - The company incurred capital expenditures of approximately $0.1 million primarily for tooling during the three months ended March 31, 2025[199]. Investment and Financial Instruments - The company achieved a gain from the disposal of an investment in an unconsolidated subsidiary of $3,204,000, down 21.6% from $4,085,000 in the previous year[182]. - Earnout payments received from Dimension were $3.2 million for the three months ended March 31, 2025, compared to $4.1 million for the same period in 2024, reflecting a decrease of 22%[184]. - The fair value of warrants decreased from $9.5 million at December 31, 2024, to $4.9 million at March 31, 2025, resulting in a non-cash gain of $4.6 million[185]. - Loss from unconsolidated subsidiary Alpha Steel decreased by 57.7%, from $265,000 in Q1 2024 to $112,000 in Q1 2025[186]. - Senior Notes outstanding totaled $15.6 million in principal and accrued interest as of March 31, 2025[243].

Group 1 - FTC Solar reported a quarterly loss of $0.84 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.67, but an improvement from a loss of $0.90 per share a year ago, indicating a surprise of -25.37% [1] - The company posted revenues of $20.8 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 12.45%, and showing a significant increase from $12.59 million in the same quarter last year [2] - FTC Solar shares have declined approximately 42.1% since the beginning of the year, contrasting with the S&P 500's decline of -5.3% [3] Group 2 - The earnings outlook for FTC Solar is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The trend for earnings estimate revisions for FTC Solar is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, suggesting it is expected to outperform the market in the near future [6] - The current consensus EPS estimate for the upcoming quarter is -$0.67 on revenues of $18.04 million, and for the current fiscal year, it is -$1.84 on revenues of $87.15 million [7] Group 3 - The solar industry, to which FTC Solar belongs, is currently ranked in the bottom 16% of over 250 Zacks industries, indicating that the industry's outlook can significantly impact stock performance [8] - Tigo Energy, another company in the solar industry, is expected to report a quarterly loss of $0.13 per share, reflecting a year-over-year change of +31.6%, with revenues anticipated to be $17.68 million, up 80.5% from the previous year [9]

May 1, 2025 First Quarter 2025 Earnings Results 2 Forward-Looking Statements and Non-GAAP Financial Measures This presentation contains forward looking statements. These statements are not historical facts but rather are based on our current expectations and projections regarding our business, operations and other factors relating thereto. Words such as "may," "will," "could," "would," "should," "anticipate," "predict,""potential," "continue," "expects," "intends," "plans," "projects," "believes," "estimate ...

Financial Data and Key Metrics Changes - Revenue for the first quarter of 2025 was $20.8 million, representing a 58% increase compared to the prior quarter and a 65% increase year-over-year due to higher product volumes [19] - GAAP gross loss was $3.4 million or 16.6% of revenue, improved from a gross loss of $3.8 million or 29.1% of revenue in the prior quarter [19] - Non-GAAP gross loss was $3 million or 14.4% of revenue, compared to a non-GAAP gross loss of $3.4 million or 25.6% of revenue in the prior quarter [20] - GAAP net loss was $3.8 million or $0.58 per diluted share, improved from a loss of $12.2 million or $0.96 per diluted share in the prior quarter [20] - Adjusted EBITDA loss was $9.8 million, slightly better than the top end of guidance, compared to losses of $9.8 million in the prior quarter [21] Business Line Data and Key Metrics Changes - The company has added over 6.5 gigawatts to its backlog, with agreements signed with tier one accounts [6] - The average project size of bids increased by 65% compared to a year ago, indicating a significant increase in bidding activity [11] - 1P solutions now represent 90% of all bidding activity, reflecting a shift in market demand [13] Market Data and Key Metrics Changes - Customer visits to product demonstration facilities increased by 100% and 240% over the past six and nine months, respectively, compared to the previous year [11] - Bidding volume in the first quarter was up 60% year-over-year, indicating heightened market activity [11] Company Strategy and Development Direction - The company is focused on converting backlog into sustainable growth and profitability, with a strong emphasis on expanding its 1P product line [6][9] - The company aims to achieve adjusted EBITDA breakeven on a quarterly basis within 2025, indicating a strategic focus on improving financial performance [22] - The company is actively involved in advocating for the continuation of investment tax credits and manufacturing credits, which are crucial for the solar market's growth [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the high demand for solar generation, despite uncertainties in the market due to tariffs and permitting processes [15] - The company believes it is well-positioned in a strong growth industry with increasing interest and demand for its solutions [17] - Management noted that while there are uncertainties, the majority of the pipeline is still moving toward construction starts, with some customers waiting for clarity on tariffs [35][36] Other Important Information - The contracted backlog now stands at $482 million, reflecting the company's ability to secure significant contracts [21] - The company ended the quarter with $5.9 million in cash, not including expected proceeds from an upsized notes offering [21] Q&A Session Summary Question: Exposure to tariffs for components - Management acknowledged that there are items imported that are subject to tariffs, but the majority of the tariff costs are passed on to customers, minimizing the impact [26][27] Question: Impact of module change configurations on backlog - Management indicated that while there is movement in module configurations, they have not seen significant project shifts due to module impacts [29] Question: Percentage of projects on hold due to tariff clarity - Management noted that while there is some resequencing of projects, the majority remain on track, with flexibility built into project timelines [35][36] Question: Activity required for future project development - Management stated that development activity has not slowed, but negotiations between off-takers and project owners have paused due to tariff uncertainties [40][41] Question: Expectations for gross margin and adjusted EBITDA - Management highlighted that the company is at an inflection point, with a focus on 1P deployment driving expectations for improved margins and EBITDA [46][48]

Financial Performance - First quarter revenue reached $20.8 million, representing a 58% increase quarter-over-quarter and a 65.3% increase year-over-year[6][7] - The net loss for the first quarter was $3.8 million, or $0.58 per diluted share, an improvement from a net loss of $12.2 million in the prior quarter[9] - Total revenue for the three months ended March 31, 2025, was $20,803,000, a 65.2% increase from $12,587,000 in the same period of 2024[23] - For the three months ended March 31, 2025, the company reported a net loss of $3,819,000 compared to a net loss of $8,771,000 for the same period in 2024, representing a 56.5% improvement in net loss[34] - Adjusted Non-GAAP net loss for Q1 2025 was $9,750,000, slightly improved from $10,655,000 in Q1 2024, indicating a 8.5% reduction year-over-year[34] Operating Expenses - Total operating expenses decreased to $7.1 million, a multi-year low, compared to $10.4 million in the prior quarter[6][8] - Operating expenses decreased to $7,113,000 in Q1 2025 from $10,394,000 in Q1 2024, a reduction of 31.9%[23] - The company incurred stock-based compensation of $280,000 in Q1 2025, down from $1,639,000 in Q1 2024, reflecting a 82.9% decrease[34] - The company incurred severance costs of $175,000 in Q1 2025 due to restructuring changes[36] Gross Margin and EBITDA - The gross margin percentage improved to (16.6%) compared to (29.1%) in the prior quarter, with a non-GAAP gross loss of $3.0 million or 14.4% of revenue[8][9] - Adjusted EBITDA loss for Q1 2025 was $9.8 million, consistent with the prior quarter's loss[9][14] - Adjusted EBITDA for Q1 2025 was $(9,750,000), slightly better than $(10,655,000) in Q1 2024[32] - Non-GAAP gross loss for Q1 2025 was $(2,997,000), with a non-GAAP gross margin percentage of (14.4%) compared to (13.7%) in Q1 2024[32] Cash and Assets - Cash and cash equivalents decreased to $5,909,000 as of March 31, 2025, down from $11,247,000 at the end of 2024[26] - Total assets decreased to $84,061,000 as of March 31, 2025, compared to $89,928,000 at the end of 2024[26] - Total liabilities were $68,533,000 as of March 31, 2025, a slight decrease from $70,892,000 at the end of 2024[26] Strategic Initiatives - The company added over 6.5 gigawatts to its backlog with Tier 1 customers, bringing the total contracted backlog to approximately $482 million[3][5] - Bid activity increased by 60% year-over-year, indicating heightened customer interest and engagement[6] - The company expects revenue for Q2 2025 to be in the range of $19.0 million to $24.0 million, continuing sequential growth[13][14] - FTC Solar anticipates achieving adjusted EBITDA breakeven on a quarterly basis within 2025, with revenue weighted towards the second half of the year[13] - The company has strengthened its Board of Directors with the addition of two new members, enhancing leadership capabilities[10][11] - The company is implementing sign-on bonuses for the new CEO, which will be expensed through October 1, 2026, reflecting a strategic investment in leadership[35] Interest and Gains - Interest expense increased to $711,000 in Q1 2025 from $317,000 in Q1 2024, marking a 124.5% rise[34] - The company reported a gain from the disposal of investment in an unconsolidated subsidiary of $3,204,000 in Q1 2025, compared to a gain of $4,085,000 in Q1 2024, a decrease of 21.5%[34]

Core Insights - FTC Solar reported strong first-quarter results for 2025, exceeding target mid-points across all metrics, with significant growth in backlog and customer agreements [2][7][15] - The company has strengthened its product offerings, particularly with its innovative 1P product line, which has driven increased customer engagement and bidding activity [3][4][8] - The outlook for the second quarter remains positive, with expectations for continued revenue growth and a path towards adjusted EBITDA breakeven within 2025 [15][16] Financial Performance - Total revenue for Q1 2025 was $20.8 million, representing a 57.6% increase quarter-over-quarter and a 65.3% increase year-over-year [7][10] - Gross loss for the quarter was $3.4 million, or 16.6% of revenue, compared to a gross loss of $3.8 million, or 29.1% of revenue in the prior quarter [10][11] - Net loss for Q1 2025 was $3.8 million, or $0.58 per diluted share, an improvement from a net loss of $8.8 million, or $0.70 per diluted share in the same quarter last year [11][22] Operational Highlights - The company added over 6.5 gigawatts of agreements with Tier 1 customers, significantly boosting its backlog to approximately $482 million [2][6] - Operating expenses were reduced to $7.1 million, a multi-year low, reflecting cost efficiencies [8][10] - Customer interest and bidding activity increased by 60% year-over-year, indicating strong market demand [8] Strategic Developments - The Board of Directors was strengthened with the addition of two new members, enhancing leadership capabilities [12][13][14] - The company anticipates continued sequential revenue growth in Q2 2025, with a focus on converting increased customer interest into sustainable growth [15][16]

Core Viewpoint - FTC Solar, Inc. is set to report its first quarter 2025 financial results on May 1, 2025, before market open, indicating a focus on transparency and communication with investors [1]. Group 1: Financial Reporting - The company will hold a conference call at 8:30 a.m. E.T. on the same day to discuss its financial results, outlook, and other business matters, showcasing its commitment to engaging with the investment community [2]. - The conference call will be accessible via webcast, and a replay will be available for 30 days, enhancing investor accessibility to information [2]. Group 2: Company Overview - FTC Solar, founded in 2017 by renewable energy industry veterans, specializes in solar tracker systems, technology, software, and engineering services, positioning itself as a leader in the solar energy sector [3]. - The company's solar trackers optimize solar panel orientation to increase energy production, highlighting its innovative approach and competitive edge in installation cost-per-watt [3].

Core Insights - FTC Solar has introduced a dual-row configuration for its 1P Pioneer Tracker™, enhancing efficiency and adaptability for solar installations [1][8] - The new design significantly improves project yield, reduces costs, and maximizes land utilization, particularly in challenging terrains [1][8] Product Features - The dual-row configuration boasts an industry-leading East-West slope tolerance of 17.5%, allowing installations on more challenging terrains while minimizing site preparation costs [3][8] - Configurable options of 4x4, 3x3, and 2x2 setups increase power density by up to 23%, optimizing energy output while maintaining the same land footprint [4][8] - The design integrates a shared drive tube, streamlining components and reducing material requirements, which enhances cost-effectiveness without compromising performance [5][8] Economic Benefits - The dual-row configuration optimizes capital costs and lowers installation complexity, providing a scalable solution for solar developers and EPCs [5][8] - Enhanced flexibility allows for the integration of both independent and dual-row trackers within the same site, optimizing site design and lowering capital expenditures (CAPEX) [6][8] - The design reduces mechanical complexity, leading to lower maintenance costs and improved energy output over the system's lifetime [6][8] Strategic Impact - The introduction of the dual-row configuration enables developers to maximize energy production while minimizing installation complexity and capital costs, enhancing project economics [7][8] - FTC Solar's innovations empower customers to expand project viability and improve long-term project economics [8]