Financial Data and Key Metrics Changes - Revenue for the second quarter was $20 million, a decrease of 4% compared to the prior quarter but an increase of 75% year-over-year due to higher product volume [23] - GAAP gross loss was $3.9 million, or 19.6% of revenue, compared to a gross loss of $3.4 million, or 16.6% of revenue in the prior quarter [23] - GAAP net loss was $15.4 million, or $1.18 per diluted share, compared to a loss of $3.8 million, or $0.58 per diluted share in the prior quarter [25] - Adjusted EBITDA loss was $10.4 million, at the top end of the guidance range, driven by lower operating expenses [25] Business Line Data and Key Metrics Changes - The company reported a non-GAAP gross loss of $3.5 million, or 17.4% of revenue, which included a $4 million accrual related to a joint venture facility [24] - Operating expenses were $7.6 million on a GAAP basis, with non-GAAP operating expenses at $6.5 million, marking the lowest level since 2020 [24] Market Data and Key Metrics Changes - The company noted a slow decision-making process among customers due to regulatory uncertainties, impacting project planning [12] - There is optimism for a significant ramp in revenue in the fourth quarter, despite current market uncertainties [27] Company Strategy and Development Direction - The company aims to position itself as a leading single access tracker provider, emphasizing faster installation times and lower capital expenditures for customers [6][8] - A $75 million financing facility was secured to support growth and enhance the balance sheet, which is expected to open new business opportunities [10][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future bookings and the potential for acceleration in project decisions once regulatory clarity is achieved [34] - The company is well-positioned for growth in 2026, with foundational pieces in place, including a strong balance sheet and a robust product offering [38] Other Important Information - The company has made significant advancements in its product offerings, including features for high wind zones and enhanced hail solutions [14][15] - The introduction of a new tracker designed for 2,000 volt systems is expected to reduce operational costs and increase power capacity [16] Q&A Session Summary Question: Outlook for bookings amid regulatory uncertainty - Management indicated that the transition to a 1P marketplace is ongoing, and while some peers are more established, FTC is making progress in positioning itself for success [31] Question: Timing for acceleration of bookings - Management is optimistic about bookings accelerating significantly, particularly as regulatory uncertainties are resolved [34] Question: Voice of smaller IPPs and EPCs regarding project financing - Confidence in moving projects forward comes from close collaboration with smaller project developers, despite challenges in securing financing [42] Question: Clarification on the $4 million charge - The $4 million charge was related to minimum purchase commitments with a joint venture partner, not directly tied to new regulations [45] Question: Rationale behind the recent capital raise - The capital raise was seen as opportunistic, providing a strong partnership with Clean Hill and enhancing the company's balance sheet to support future growth [49]

[Forward-Looking Statements](index=4&type=section&id=FORWARD-LOOKING%20STATEMENTS) [Nature of Forward-Looking Statements](index=4&type=section&id=Nature%20of%20Forward-Looking%20Statements) This section clarifies that the report contains forward-looking statements, which are predictions based on current expectations and projections about future events and financial trends - All statements other than historical or current facts in this Quarterly Report may be forward-looking statements, identifiable by words like 'believe,' 'plan,' 'expect,' etc[8](index=8&type=chunk) - Forward-looking statements are predictions based on current expectations and projections about future events and financial trends, but involve known and unknown risks, uncertainties, and other important factors[9](index=9&type=chunk) - Investors should not unduly rely on these statements as predictions of future events, as actual results could differ materially[9](index=9&type=chunk)[10](index=10&type=chunk)[11](index=11&type=chunk) [PART I - FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Presents unaudited condensed consolidated financial statements, including balance sheets, comprehensive loss, equity, cash flows, and notes [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The condensed consolidated balance sheets provide a snapshot of the company's financial position, showing a decrease in total assets and stockholders' equity, while total liabilities increased from December 31, 2024, to June 30, 2025 | (in thousands) | June 30, 2025 | December 31, 2024 | | :--------------- | :------------ | :---------------- | | Cash and cash equivalents | $3,519 | $11,247 | | Accounts receivable, net | $45,648 | $39,709 | | Inventories | $7,316 | $10,144 | | Total current assets | $70,296 | $76,128 | | Total assets | $82,955 | $89,928 | | Total current liabilities | $60,633 | $49,073 | | Long-term debt | $10,895 | $9,466 | | Warrant liability | $— | $9,520 | | Total liabilities | $73,913 | $70,892 | | Total stockholders' equity | $9,042 | $19,036 | [Condensed Consolidated Statements of Comprehensive Loss](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) The statements of comprehensive loss indicate a significant increase in total revenue for both the three and six months ended June 30, 2025, compared to the prior year, but the company continued to report a net loss, which also increased for the three-month period | (in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenue | $19,993 | $11,430 | $40,796 | $24,017 | | Total cost of revenue | $23,912 | $13,773 | $48,162 | $28,468 | | Gross loss | $(3,919) | $(2,343) | $(7,366) | $(4,451) | | Loss from operations | $(11,499) | $(11,924) | $(22,059) | $(24,426) | | Net loss | $(15,430) | $(12,241) | $(19,249) | $(21,012) | | Basic and diluted net loss per share | $(1.18) | $(0.97) | $(1.49) | $(1.67) | - Total revenue increased by **74.9%** for the three months ended June 30, 2025, and by **69.9%** for the six months ended June 30, 2025, compared to the respective prior year periods[16](index=16&type=chunk)[197](index=197&type=chunk)[219](index=219&type=chunk) - Net loss increased to **$(15,430) thousand** for the three months ended June 30, 2025, from **$(12,241) thousand** in the prior year, while for the six months, net loss decreased to **$(19,249) thousand** from **$(21,012) thousand**[16](index=16&type=chunk) [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) The statements of changes in stockholders' equity show a decrease in total stockholders' equity from $19,036 thousand at December 31, 2024, to $9,042 thousand at June 30, 2025, primarily due to net losses and the exercise of warrants | (in thousands) | Balance as of Dec 31, 2024 | Balance as of June 30, 2025 | | :--------------- | :------------------------- | :-------------------------- | | Additional paid-in capital | $367,318 | $376,464 | | Accumulated deficit | $(347,741) | $(366,990) | | Total stockholders' equity | $19,036 | $9,042 | - Exercise of warrants resulted in an increase of **$7,927 thousand** in additional paid-in capital during the six months ended June 30, 2025[19](index=19&type=chunk) - Accumulated deficit increased by **$19,249 thousand** during the six months ended June 30, 2025, reflecting the net loss for the period[19](index=19&type=chunk)[16](index=16&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The cash flow statements reveal that the company continued to use cash in operating activities, but at a reduced rate compared to the prior year | (in thousands) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--------------- | :----------------------------- | :----------------------------- | | Net cash used in operations | $(10,780) | $(15,635) | | Net cash provided by investing activities | $2,989 | $1,154 | | Net cash provided by financing activities | $3 | $3 | | Decrease in cash and cash equivalents | $(7,728) | $(14,456) | | Cash and cash equivalents at end of period | $3,519 | $10,779 | - Net cash used in operations decreased by **$4,855 thousand (31%)** from **$15,635 thousand** in 2024 to **$10,780 thousand** in 2025 for the six-month period[25](index=25&type=chunk) - Investing activities provided **$2,989 thousand** in cash for the six months ended June 30, 2025, primarily from a **$3,204 thousand** earnout payment from the disposal of an unconsolidated subsidiary[25](index=25&type=chunk)[258](index=258&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed explanations and disclosures integral to understanding the condensed consolidated financial statements, covering business description, accounting policies, liquidity, specific balance sheet and income statement items, and subsequent events [Description of Business](index=10&type=section&id=Description%20of%20business) FTC Solar, Inc. is a Delaware-incorporated global provider of solar tracker systems, proprietary software, and engineering services, serving utility-scale and distributed generation projects worldwide with products like Pioneer (1P) and Voyager (2P) trackers, and software such as SUNPATH and SUNOPS - FTC Solar, Inc. is a global provider of solar tracker systems, proprietary software (SUNPATH, SUNOPS), and value-added engineering services[28](index=28&type=chunk) - The company offers **1P (Pioneer)** and **2P (Voyager)** solar tracker systems and mounting solutions for U.S.-manufactured thin-film modules[28](index=28&type=chunk) - Customers are primarily engineering, procurement and construction companies (EPCs), developers, and owners, with international subsidiaries in Australia, China, India, South Africa, and Spain[28](index=28&type=chunk) [Summary of Significant Accounting Policies](index=10&type=section&id=Summary%20of%20significant%20accounting%20policies) Outlines significant accounting policies for unaudited condensed consolidated financial statements, covering basis, consolidation, liquidity, and key asset/liability treatments - The financial statements are prepared under U.S. GAAP, assuming the company will continue as a going concern, despite management's conclusion of substantial doubt about this ability[30](index=30&type=chunk) - Revenue from solar tracker systems and customized components is recognized over time using a cost-to-cost input measure, while individual part sales and term-based software licenses are recognized at a point in time[69](index=69&type=chunk)[83](index=83&type=chunk)[85](index=85&type=chunk) - The company accounts for warrants as liabilities if they could require cash settlement and adjusts them to fair value each period, with changes reflected in results of operations[63](index=63&type=chunk)[64](index=64&type=chunk) [Liquidity and Going Concern](index=12&type=section&id=Liquidity%20and%20Going%20Concern) The company has incurred cumulative losses and cash outflows from operations, leading management to conclude there is substantial doubt about its ability to continue as a going concern within the next year, despite a new $75 million senior secured term facility and available ATM program capacity - The company has incurred cumulative losses and utilized **$10.8 million** in cash from operations during the six months ended June 30, 2025[34](index=34&type=chunk) - **Liquidity and Going Concern** | Metric | Amount (as of June 30, 2025) | | :----- | :--------------------------- | | Cash on hand | $3.5 million | | Working capital | $9.7 million | | ATM program capacity | ~$13.8 million | | Initial Term Loans (funded July 2, 2025) | $14.3 million (net proceeds ~$13.0 million) | - Substantial doubt exists about the company's ability to continue as a going concern within the next year, due to operating losses and the conditional nature of additional financing under the Credit Agreement[37](index=37&type=chunk) [Accounts Receivable, Net](index=24&type=section&id=Accounts%20receivable,%20net) Accounts receivable, net, increased to $45,648 thousand at June 30, 2025, from $39,709 thousand at December 31, 2024, driven by higher trade receivables and revenue recognized in excess of billings | (in thousands) | June 30, 2025 | December 31, 2024 | | :--------------- | :------------ | :---------------- | | Trade receivables | $23,239 | $22,369 | | Related party receivables | $4,005 | $3,121 | | Revenue recognized in excess of billings | $20,133 | $15,936 | | Total | $47,557 | $41,426 | | Allowance for credit losses | $(1,909) | $(1,717) | | Accounts receivable, net | $45,648 | $39,709 | - The allowance for credit losses increased from **$1,717 thousand** at December 31, 2024, to **$1,909 thousand** at June 30, 2025, with **$192 thousand** charged to earnings during the six months ended June 30, 2025[99](index=99&type=chunk)[101](index=101&type=chunk) [Inventories](index=26&type=section&id=Inventories) Inventories decreased to $7,316 thousand at June 30, 2025, from $10,144 thousand at December 31, 2024, primarily due to a reduction in finished goods, while the allowance for slow-moving and obsolete inventory remained constant | (in thousands) | June 30, 2025 | December 31, 2024 | | :--------------- | :------------ | :---------------- | | Finished goods | $7,832 | $10,660 | | Allowance for slow-moving and obsolete inventory | $(516) | $(516) | | Total | $7,316 | $10,144 | [Prepaid and Other Current Assets](index=26&type=section&id=Prepaid%20and%20other%20current%20assets) Prepaid and other current assets decreased to $13,813 thousand at June 30, 2025, from $15,028 thousand at December 31, 2024, mainly due to a reduction in vendor deposits | (in thousands) | June 30, 2025 | December 31, 2024 | | :--------------- | :------------ | :---------------- | | Vendor deposits | $6,344 | $7,184 | | Vendor deposits with related party | $2,029 | $2,005 | | Prepaid expenses | $763 | $842 | | Other current assets | $3,655 | $3,969 | | Total | $13,813 | $15,028 | [Leases](index=26&type=section&id=Leases) The company leases office and warehouse space, with total lease costs decreasing for both the three and six months ended June 30, 2025, compared to the prior year | (in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Operating lease cost | $267 | $300 | $594 | $609 | | Short-term lease cost | $82 | $111 | $148 | $204 | | Total lease cost | $349 | $411 | $742 | $813 | | (in thousands) | June 30, 2025 | | :--------------- | :------------ | | Total lease payments | $1,065 | | Present value of operating lease liabilities | $929 | | Current portion of operating lease liability | $493 | | Operating lease liability, net of current portion | $436 | [Property and Equipment, Net](index=28&type=section&id=Property%20and%20equipment,%20net) Property and equipment, net, decreased to $1,931 thousand at June 30, 2025, from $2,217 thousand at December 31, 2024, primarily due to accumulated depreciation | (in thousands) | June 30, 2025 | December 31, 2024 | | :--------------- | :------------ | :---------------- | | Total property and equipment | $5,280 | $4,963 | | Accumulated depreciation | $(3,349) | $(2,746) | | Property and equipment, net | $1,931 | $2,217 | - Depreciation expense for the six months ended June 30, 2025, totaled **$0.6 million**, up from **$0.5 million** in the prior year[107](index=107&type=chunk) [Goodwill](index=28&type=section&id=Goodwill) Goodwill increased slightly to $7,268 thousand at June 30, 2025, from $7,139 thousand at December 31, 2024, primarily due to translation adjustments, with no impairment recognized | (in thousands) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--------------- | :----------------------------- | :----------------------------- | | Balance at beginning of period | $7,139 | $7,538 | | Translation | $129 | $(369) | | Balance at end of period | $7,268 | $7,169 | - No impairment of goodwill was recognized as of June 30, 2025, or during 2024[57](index=57&type=chunk) [Equity Method Investment](index=28&type=section&id=Equity%20method%20investment) The company holds a 45% interest in Alpha Steel LLC, recognizing losses of $0.6 million for the six months ended June 30, 2025 - The company has a **45%** equity interest in Alpha Steel LLC, a steel component producer for utility-scale solar projects[109](index=109&type=chunk) - Recognized losses from Alpha Steel were **$0.6 million** for the six months ended June 30, 2025, and **$0.5 million** for the same period in 2024[110](index=110&type=chunk) - The company is committed to minimum purchase orders from Alpha Steel, with a potential cash payment of up to **$4.0 million** if commitments are not met for the period from July 1, 2025, to June 30, 2026[111](index=111&type=chunk) [Accrued Expenses and Other Current Liabilities](index=30&type=section&id=Accrued%20expenses%20and%20other%20current%20liabilities) Total accrued expenses increased significantly to $30,410 thousand at June 30, 2025, from $20,134 thousand at December 31, 2024, driven by higher accrued cost of revenue, including related party amounts | (in thousands) | June 30, 2025 | December 31, 2024 | | :--------------- | :------------ | :---------------- | | Accrued cost of revenue | $19,885 | $13,033 | | Related party accrued cost of revenue | $5,915 | $1,718 | | Accrued compensation | $2,699 | $3,687 | | Total accrued expenses | $30,410 | $20,134 | | Warranty reserves | $9,861 | $9,482 | | Total other current liabilities | $10,456 | $10,313 | - Warranty accruals increased to **$11,810 thousand** at June 30, 2025, from **$11,904 thousand** at December 31, 2024, with **$1,614 thousand** added and **$1,241 thousand** settled during the six-month period[114](index=114&type=chunk) [Income Taxes](index=31&type=section&id=Income%20taxes) The company recorded income tax expense of $0.29 million for the six months ended June 30, 2025, lower than the statutory rate due to a valuation allowance against U.S. deferred tax assets | (in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Income tax expense | $39 | $65 | $293 | $54 | - Income tax expense is lower than the statutory rate primarily due to a valuation allowance against U.S. deferred tax assets[115](index=115&type=chunk) - The One Big Beautiful Bill Act, signed July 4, 2025, is not expected to materially impact income tax expense or liability due to the existing valuation allowance[117](index=117&type=chunk) [Debt](index=31&type=section&id=Debt) Long-term debt, net, increased to $10,895 thousand at June 30, 2025. The company's Senior Notes, with an effective interest rate of approximately 18%, were amended on July 2, 2025, to subordinate them to a new $75 million Credit Agreement and reduce their interest rate | (in thousands) | June 30, 2025 | December 31, 2024 | | :--------------- | :------------ | :---------------- | | Senior notes | $16,147 | $15,146 | | Less: discount and deferred loan costs | $(5,252) | $(5,680) | | Long-term debt, net | $10,895 | $9,466 | - The Senior Notes have an effective interest rate of approximately **18%**, including paid-in-kind interest and amortization of discount/costs[120](index=120&type=chunk) - On July 2, 2025, the Senior Notes were amended and subordinated to a new **$75 million** Credit Agreement, with their interest rate reduced to **5% cash** and **7% paid-in-kind**[123](index=123&type=chunk)[124](index=124&type=chunk)[125](index=125&type=chunk) [Commitments and Contingencies](index=32&type=section&id=Commitments%20and%20contingencies) The company is involved in legal proceedings, including U.S. Customs and Border Protection (CBP) tariff assessments totaling approximately $4.85 million, which the company disputes and has not accrued - CBP issued tariff assessments totaling approximately **$2.84 million** (625 Assessment) and **$2.01 million** (Revised 939 Assessment) for imported torque beams[128](index=128&type=chunk)[129](index=129&type=chunk) - The company believes the CBP assessments are incorrect, particularly regarding Section 301 tariffs and Section 232 duties, and has filed formal protests, thus making no accrual as of June 30, 2025[130](index=130&type=chunk)[131](index=131&type=chunk) - FTC Solar, Inc. filed a lawsuit against BayWa r.e. Power Solutions, Inc. for breach of contract related to the purported cancellation of a large equipment supply agreement[132](index=132&type=chunk) [ATM Program](index=34&type=section&id=ATM%20program) The company has an At-the-Market (ATM) offering program with capacity for nearly $13.8 million in common stock sales for general corporate purposes, though no shares were sold under the program during the three or six months ended June 30, 2025 or 2024 - The ATM program allows for the sale of up to approximately **$13.8 million** of common stock[134](index=134&type=chunk) - No shares were sold under the ATM program during the three and six months ended June 30, 2025, or 2024[137](index=137&type=chunk) [Stock-based Compensation](index=36&type=section&id=Stock-based%20compensation) Total stock-based compensation expense decreased for both the three and six months ended June 30, 2025, compared to the prior year, reflecting cost reduction initiatives and executive award forfeitures | (in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Cost of revenue | $248 | $240 | $491 | $456 | | Research and development | $58 | $93 | $118 | $174 | | Selling and marketing | $34 | $114 | $50 | $158 | | General and administrative | $596 | $838 | $557 | $2,136 | | Total stock compensation expense | $936 | $1,285 | $1,216 | $2,924 | - The decrease in general and administrative stock-based compensation for the six months ended June 30, 2025, was largely due to executive award forfeitures[227](index=227&type=chunk)[228](index=228&type=chunk) [Related Party Transactions](index=36&type=section&id=Related%20party%20transactions) The company has significant related party transactions with Alpha Steel, including receivables for future material cost discounts and liabilities for accrued cost of revenue and minimum purchase commitments - Related party receivables from Alpha Steel totaled **$4.0 million** at June 30, 2025, for future material cost discounts related to manufacturing incentives under the Inflation Reduction Act[139](index=139&type=chunk) - Related party liabilities to Alpha Steel totaled **$5.9 million** at June 30, 2025, for accrued cost of revenue and **$4.0 million** in incurred contractual obligations for minimum purchase commitments[140](index=140&type=chunk) - Purchases from Alpha Steel totaled **$7.6 million** for the six months ended June 30, 2025[141](index=141&type=chunk) [Net Loss Per Share](index=36&type=section&id=Net%20loss%20per%20share) Basic and diluted net loss per share for the three months ended June 30, 2025, was $(1.18), compared to $(0.97) in the prior year | ($ in thousands, except shares and per share data) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss for basic and diluted calculation | $(15,430) | $(12,241) | $(19,249) | $(21,012) | | Weighted average shares outstanding | 13,098,825 | 12,617,128 | 12,948,189 | 12,581,608 | | Basic and diluted loss per share | $(1.18) | $(0.97) | $(1.49) | $(1.67) | - Potentially dilutive securities, including stock options and RSUs, were excluded from diluted loss per share calculation as they were anti-dilutive[143](index=143&type=chunk)[144](index=144&type=chunk) [Segment Information](index=37&type=section&id=Segment%20information) The company operates in a single business segment: the manufacturing and servicing of solar tracker systems - The company operates in one business segment: manufacturing and servicing of solar tracker systems[33](index=33&type=chunk)[145](index=145&type=chunk) - Product revenue includes sales of solar tracker systems, customized components, individual parts, and term-based software licenses[146](index=146&type=chunk) - Service revenue includes shipping and handling, engineering consulting, pile testing, subscription-based enterprise licensing, and maintenance/support services[146](index=146&type=chunk) [Subsequent Events](index=38&type=section&id=Subsequent%20events) On July 2, 2025, the company entered into a Credit Agreement for a senior secured term facility of up to $75 million, with an initial funding of $14.3 million - On July 2, 2025, the company entered into a Credit Agreement for a senior secured term facility of up to **$75 million**, with **$14.3 million** in Initial Term Loans funded, yielding approximately **$13.0 million** net proceeds[36](index=36&type=chunk)[149](index=149&type=chunk) - The Credit Agreement includes financial covenants such as minimum unrestricted cash (**$20.0 million** by September 30, 2025), minimum revenue, product margin, EBITDA, and purchase order targets[153](index=153&type=chunk) - The company issued New Warrants to lenders for up to **5,418,292 shares** of common stock, with additional Delayed Draw Term Loans subject to stockholder approval for warrant exercise[149](index=149&type=chunk)[159](index=159&type=chunk)[246](index=246&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=43&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition and results, analyzing revenue, expenses, liquidity, critical accounting policies, and non-GAAP measures [Overview](index=43&type=section&id=Overview) FTC Solar, Inc. is a global provider of solar tracker systems and related software, headquartered in Austin, Texas, with international subsidiaries - FTC Solar, Inc. is a global provider of solar tracker systems, proprietary software (SUNPATH, SUNOPS), and value-added engineering services[166](index=166&type=chunk) - The company's main products are the **Pioneer (1P)** and **Voyager (2P)** solar tracker systems, designed to optimize solar energy production[166](index=166&type=chunk) - FTC Solar serves large utility-scale and distributed generation projects globally, with headquarters in Austin, Texas, and international subsidiaries[166](index=166&type=chunk) [Key Factors Affecting Our Performance](index=43&type=section&id=Key%20Factors%20Affecting%20Our%20Performance) The company's performance is significantly influenced by project timing delays, evolving government regulations (tariffs, IRA changes), supply chain disruptions, strategic investments in technology and personnel, and the impact of climate change on demand and operations - Project timing is significantly impacted by customer delays due to interconnection issues, permit delays, equipment shortages, financing, and regulatory uncertainty[168](index=168&type=chunk) - Government regulations, including U.S. tariffs (e.g., universal **10%** tariff, doubled steel/aluminum tariffs) and changes to the Inflation Reduction Act (IRA) via the One Big Beautiful Bill Act, can impact profitability and demand[169](index=169&type=chunk)[171](index=171&type=chunk)[173](index=173&type=chunk) - The company invests in technology (e.g., SUNOPS, Automated Hail Stow Solution, Pioneer dual-row configuration) and personnel to enhance products and expand capabilities[179](index=179&type=chunk)[180](index=180&type=chunk) [Key Components of Our Results of Operations](index=47&type=section&id=Key%20Components%20of%20Our%20Results%20of%20Operations) Details components of results of operations, including revenue, cost of revenue, gross profit/loss, and operating expenses, influenced by volume, ASP, and government incentives - Revenue is generated from product sales (solar tracker systems, components, software licenses) and service sales (shipping, engineering, subscriptions, maintenance)[186](index=186&type=chunk) - Cost of revenue includes raw materials, manufacturing, freight, tariffs, product warranty, remediation, and personnel costs[190](index=190&type=chunk) - Operating expenses consist of research and development, selling and marketing, and general and administrative expenses, with personnel-related costs being the most significant component[192](index=192&type=chunk) [Results of Operations - Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024](index=51&type=section&id=Results%20of%20Operations%20(Three%20Months%20Ended%20June%2030,%202025%20vs.%202024)) For the three months ended June 30, 2025, total revenue increased by 74.9% to $19,993 thousand, driven by a 147% increase in MW produced | (in thousands) | 2025 | 2024 | $ Change | % Change | | :--------------- | :--- | :--- | :------- | :------- | | Product Revenue | $15,867 | $8,776 | $7,091 | 80.8% | | Service Revenue | $4,126 | $2,654 | $1,472 | 55.5% | | Total Revenue | $19,993 | $11,430 | $8,563 | 74.9% | | Total Cost of Revenue | $23,912 | $13,773 | $10,139 | 73.6% | | Gross Loss | $(3,919) | $(2,343) | $(1,576) | (67.3)% | | Research and Development | $1,129 | $1,535 | $(406) | (26.4)% | | Selling and Marketing | $1,291 | $2,036 | $(745) | (36.6)% | | General and Administrative | $5,160 | $6,010 | $(850) | (14.1)% | | Net Loss | $(15,430) | $(12,241) | $(3,189) | (26.0)% | - Product revenue increased by **80.8%** due to a **147%** increase in MW produced, partially offset by a **27%** decrease in ASP[198](index=198&type=chunk) - A non-cash loss of **$(2,836) thousand** was recognized from the change in fair value of warrant liability due to an increase in common stock price[215](index=215&type=chunk) [Results of Operations - Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024](index=57&type=section&id=Results%20of%20Operations%20(Six%20Months%20Ended%20June%2030,%202025%20vs.%202024)) For the six months ended June 30, 2025, total revenue increased by 69.9% to $40,796 thousand, driven by a 147% increase in MW produced | (in thousands) | 2025 | 2024 | $ Change | % Change | | :--------------- | :--- | :--- | :------- | :------- | | Product Revenue | $34,069 | $19,681 | $14,388 | 73.1% | | Service Revenue | $6,727 | $4,336 | $2,391 | 55.1% | | Total Revenue | $40,796 | $24,017 | $16,779 | 69.9% | | Total Cost of Revenue | $48,162 | $28,468 | $19,694 | 69.2% | | Gross Loss | $(7,366) | $(4,451) | $(2,915) | (65.5)% | | Research and Development | $2,053 | $2,974 | $(921) | (31.0)% | | Selling and Marketing | $2,427 | $4,424 | $(1,997) | (45.1)% | | General and Administrative | $10,213 | $12,577 | $(2,364) | (18.8)% | | Net Loss | $(19,249) | $(21,012) | $1,763 | 8.4% | - Product revenue increased by **73.1%** due to a **147%** increase in MW produced, partially offset by a **30%** decrease in ASP[220](index=220&type=chunk) - A non-cash gain of **$1,768 thousand** was recognized from the change in fair value of warrant liability due to a decrease in common stock price[235](index=235&type=chunk) - Operating expenses decreased across all categories, with General and Administrative expenses seeing the largest reduction of **$2,364 thousand**, partly due to lower stock-based compensation from executive award forfeitures[225](index=225&type=chunk)[226](index=226&type=chunk)[227](index=227&type=chunk)[228](index=228&type=chunk) [Liquidity and Capital Resources](index=61&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is constrained by cumulative losses and cash outflows from operations, leading to substantial doubt about its going concern ability - The company had **$3.5 million** cash on hand and **$9.7 million** working capital as of June 30, 2025, with **$10.8 million** cash used in operations during the six months[238](index=238&type=chunk) - A new **$75 million** senior secured term facility was entered into on July 2, 2025, with **$14.3 million** (net **$13.0 million**) funded initially[240](index=240&type=chunk) - The ability to meet liquidity needs depends on cash on hand, increased project activity, additional Credit Agreement proceeds (subject to stockholder approval for warrants), and ATM program utilization, alongside cost-saving measures[243](index=243&type=chunk) [Critical Accounting Policies and Significant Management Estimates](index=65&type=section&id=Critical%20Accounting%20Policies%20and%20Significant%20Management%20Estimates) Details critical accounting policies and significant management estimates for revenue, accounts receivable, warranty, stock-based compensation, warrants, and impairment assessments - Revenue recognition involves significant judgment in identifying performance obligations, estimating total project costs, and measuring progress, which can be impacted by external factors like supply chain disruptions and tariffs[266](index=266&type=chunk)[267](index=267&type=chunk) - The allowance for credit losses for accounts receivable is based on lifetime expected credit loss, utilizing historical experience and current economic conditions, which may lead to fluctuations in expense[268](index=268&type=chunk)[269](index=269&type=chunk) - Warranty obligations are estimated based on industry data and historical experience, with inherent uncertainties that could lead to material adjustments in future periods[272](index=272&type=chunk)[273](index=273&type=chunk)[274](index=274&type=chunk) - Valuation of stock-based compensation and warrants relies on assumptions for expected term, volatility, risk-free interest rate, and dividend yield, with changes in these assumptions or stock price potentially impacting fair value and expense[275](index=275&type=chunk)[276](index=276&type=chunk)[277](index=277&type=chunk)[278](index=278&type=chunk)[279](index=279&type=chunk)[281](index=281&type=chunk)[282](index=282&type=chunk) - Impairment assessments for long-lived assets and goodwill involve judgments on triggering events, future cash flow estimates, and fair value determination, with no impairments identified in the current periods[283](index=283&type=chunk)[284](index=284&type=chunk)[285](index=285&type=chunk) [Non-GAAP Financial Measures](index=71&type=section&id=Non-GAAP%20Financial%20Measures) The company uses non-GAAP financial measures, Adjusted EBITDA, Adjusted Net Loss, and Adjusted EPS, to provide supplemental insight into operational performance by excluding certain non-recurring or non-cash items - Adjusted EBITDA is defined as net loss plus provision for income taxes, interest expense (less income), depreciation, amortization of intangibles, stock-based compensation, loss from warrant liability changes, and certain non-routine costs, less contingent gains from disposals[289](index=289&type=chunk) - Adjusted Net Loss includes adjustments for amortization of debt discount/issue costs, intangibles, stock-based compensation, warrant liability changes, CEO transition costs, non-routine legal fees, Reverse Stock Split costs, and severance, along with related tax impacts[289](index=289&type=chunk) - **Non-GAAP Financial Measures** | (in thousands, except shares and per share data) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :----------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss per U.S. GAAP | $(15,430) | $(12,241) | $(19,249) | $(21,012) | | Adjusted Non-GAAP amounts (Adjusted EBITDA) | $(10,360) | $(10,451) | $(20,110) | $(21,106) | | Adjusted Non-GAAP amounts (Adjusted Net Loss) | $(11,213) | $(10,730) | $(22,014) | $(21,603) | | U.S. GAAP net loss per share (Basic and diluted) | $(1.18) | $(0.97) | $(1.49) | $(1.67) | | Adjusted Non-GAAP net loss per share (Basic and diluted) | $(0.86) | $(0.85) | $(1.70) | $(1.72) | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=76&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks primarily from customer concentrations, fluctuations in commodity prices (steel, aluminum, logistics), and changes in the trading price of its common stock affecting warrant valuations - Market risk exposure primarily stems from customer concentrations and fluctuations in steel, aluminum, and logistics/transportation prices[301](index=301&type=chunk) - The fair value of warrants is estimated using a Black-Scholes model, impacted by common stock price, expected holding period, volatility, risk-free interest rate, and dividend yield[302](index=302&type=chunk) - The company relies on a small number of customers for a large portion of its revenue and receivables, exposing it to industry-specific credit risks[308](index=308&type=chunk) - Indirect commodity price risk from steel and aluminum, procured by contract manufacturers, could reduce operating margins if cost increases cannot be recovered from customers[309](index=309&type=chunk)[310](index=310&type=chunk) [Item 4. Controls and Procedures](index=78&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were not effective as of June 30, 2025, due to a material weakness identified in the fourth quarter of 2024 related to accounting for contract change orders, which resulted in an overstatement of revenue on specific projects - Disclosure controls and procedures were **not effective** as of June 30, 2025[311](index=311&type=chunk) - A material weakness was identified in the fourth quarter of 2024 regarding accounting for contract change orders, leading to an overstatement of revenue on certain projects[313](index=313&type=chunk)[314](index=314&type=chunk) - The company is enhancing internal accounting processes and management review controls to prevent and detect such errors more timely in the future[314](index=314&type=chunk) [PART II – OTHER INFORMATION](index=79&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=79&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in legal proceedings, including ongoing disputes with U.S. Customs and Border Protection (CBP) over tariff assessments totaling approximately $4.85 million, which the company believes are incorrect and has not accrued - CBP issued tariff assessments of approximately **$2.84 million** (625 Assessment) and **$2.01 million** (Revised 939 Assessment) for imported torque beams[318](index=318&type=chunk) - The company disputes the CBP assessments, believing Section 301 tariffs and Section 232 duties are not applicable, and has not accrued these amounts as probable obligations[319](index=319&type=chunk)[320](index=320&type=chunk) - FTC Solar, Inc. filed a lawsuit against BayWa r.e. Power Solutions, Inc. for breach of contract related to the alleged cancellation of a large equipment supply agreement[321](index=321&type=chunk) [Item 1A. Risk Factors](index=81&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks, including adverse impacts from evolving international trade policies (tariffs), changes in solar energy regulations (e.g., IRA tax credit phase-outs), restrictive covenants and potential default under the new Credit Agreement, and the dilutive effect of a substantial number of shares issuable under New Warrants - Recent developments in international trade policy, including new universal and reciprocal tariffs, may impact expected profitability under existing contracts and future revenue[323](index=323&type=chunk) - Changes in solar energy regulations, such as the acceleration of IRA tax credit phase-outs by the One Big Beautiful Bill Act, could reduce demand for solar energy systems[324](index=324&type=chunk)[325](index=325&type=chunk) - The Credit Agreement contains restrictive financial covenants (minimum cash, revenue, margin, EBITDA, purchase orders) and events of default, which, if breached, could lead to foreclosure on company assets[326](index=326&type=chunk)[327](index=327&type=chunk)[329](index=329&type=chunk) - The issuance of New Warrants for up to **6,836,237 shares** of common stock (approximately **31.5%** of outstanding shares) will have a dilutive impact on existing stockholders and could adversely affect the stock price[331](index=331&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=83&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section states that there were no unregistered sales of equity securities or use of proceeds to report during the period - No unregistered sales of equity securities or use of proceeds occurred during the period[332](index=332&type=chunk)[333](index=333&type=chunk) [Item 3. Defaults Upon Senior Securities](index=83&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section indicates that there are no defaults upon senior securities to report - Not applicable; no defaults upon senior securities to report[335](index=335&type=chunk) [Item 4. Mine Safety Disclosures](index=83&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section states that mine safety disclosures are not applicable to the company - Not applicable; no mine safety disclosures to report[336](index=336&type=chunk) [Item 5. Other Information](index=83&type=section&id=Item%205.%20Other%20Information) This section confirms that no other information required to be disclosed in a Form 8-K was unreported, and no directors or officers adopted, amended, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter - No information required by Form 8-K was unreported during the period[337](index=337&type=chunk) - No directors or officers adopted, amended, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the three months ended June 30, 2025[337](index=337&type=chunk) [Item 6. Exhibits](index=85&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the Quarterly Report on Form 10-Q, including various corporate documents, agreements, and certifications - The exhibits include Amended and Restated Certificate of Incorporation, Bylaws, Specimen Common Stock Certificate, Amended and Restated Promissory Note, Form of Warrant to Purchase Common Stock, At the Market Offering Agreement, Credit Agreement, Guarantee and Collateral Agreement, Patent Security Agreement, Trademark Security Agreement, Subordination Agreement, Amendment No. 1 to Securities Purchase Agreement, Form of Registration Rights Agreement, and various certifications[338](index=338&type=chunk)[339](index=339&type=chunk) [SIGNATURE](index=87&type=section&id=SIGNATURE) [Report Signature](index=87&type=section&id=Report%20Signature) The report was duly signed on behalf of FTC Solar, Inc. by Cathy Behnen, Chief Financial Officer, on August 5, 2025 - The report was signed by Cathy Behnen, Chief Financial Officer, on August 5, 2025[344](index=344&type=chunk)

分组1 - FTC Solar reported a quarterly loss of $0.86 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.64, and compared to a loss of $0.9 per share a year ago, indicating an earnings surprise of -34.38% [1] - The company posted revenues of $19.99 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 4.13%, and showing a significant increase from year-ago revenues of $11.43 million [2] - FTC Solar shares have increased approximately 20% since the beginning of the year, outperforming the S&P 500's gain of 7.6% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is -$0.57 on revenues of $22.98 million, and for the current fiscal year, it is -$2.07 on revenues of $88.45 million [7] - The Zacks Industry Rank indicates that the Solar industry is currently in the bottom 39% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]

Financial Performance - Second quarter revenue reached $19993 thousand, a 75% increase year-over-year compared to $11430 thousand in the second quarter of 2024[12] - The company's GAAP gross margin was -196% in the second quarter of 2025, compared to -205% in the second quarter of 2024[12] - Non-GAAP gross margin was -174% in the second quarter of 2025, compared to -168% in the second quarter of 2024[12] - GAAP net loss was $15430 thousand in the second quarter of 2025, compared to $12241 thousand in the second quarter of 2024[12] - Non-GAAP net loss was $11213 thousand in the second quarter of 2025, compared to $10730 thousand in the second quarter of 2024[12] Outlook for Third Quarter 2025 - The company expects revenue to be between $18 million and $24 million[13] - Non-GAAP gross profit is projected to be between -$24 million and -$06 million[13] - Non-GAAP gross margin is expected to range from -134% to 25%[13] - Adjusted EBITDA is forecasted to be between -$108 million and -$68 million[13]

[Executive Summary & Business Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Highlights) FTC Solar's Q2 results aligned with guidance, driven by cost controls and strategic financing, alongside product innovations and a 74.9% revenue increase to $20.0 million, despite a net loss of ($15.4) million [CEO Commentary & Strategic Overview](index=1&type=section&id=CEO%20Commentary%20%26%20Strategic%20Overview) CEO Yann Brandt reported Q2 results were in line with guidance, with Adjusted EBITDA at the high end due to continued cost controls, highlighting the company's stronger position, enhanced product, market, and financial standing, including securing multiple gigawatts of business with Tier 1 accounts and a significant $75 million strategic financing facility to support future profitability and customer confidence - Second quarter results were in-line with guidance ranges, with continued cost controls allowing for **Adjusted EBITDA** to come in at the high-end of the range[3](index=3&type=chunk) - The company is in a much stronger position than a year ago, making great strides in enhancing its product, market, and financial position, including adding multiple **gigawatts of business** with Tier 1 accounts[3](index=3&type=chunk) - Secured a **$75 million strategic financing facility**, providing ample runway to achieve profitability and incremental comfort to customers[3](index=3&type=chunk)[7](index=7&type=chunk) [Product Innovations](index=1&type=section&id=Product%20Innovations) FTC Solar is continuously enhancing its tracker products, introducing features like the widest range of stow (80-degree angle) for hail protection and an extra-long tracker built specifically for 2,000-volt systems to reduce eBOS and O&M costs while increasing power capacity by 33% - Introduced the widest range of stow in the industry, with an **80-degree angle**, to provide additional flexibility for owners and operators in meeting project requirements and mitigating hail damage[4](index=4&type=chunk) - Announced an extra-long tracker built for **2,000-volt systems**, designed to reduce eBOS and O&M costs while increasing power capacity by **33%**[5](index=5&type=chunk) [Summary Financial Performance: Q2 2025 compared to Q2 2024](index=1&type=section&id=Summary%20Financial%20Performance%3A%20Q2%202025%20compared%20to%20Q2%202024) FTC Solar reported Q2 2025 revenue of $20.0 million, a 74.9% year-over-year increase, which was within the target guidance, despite recording a GAAP gross margin percentage of (19.6%) and a net loss of ($15.4) million, with Adjusted EBITDA loss at ($10.4) million Summary Financial Data (in thousands, except per share data) | Metric (in thousands, except per share data) | Q2 2025 (GAAP) | Q2 2024 (GAAP) | Q2 2025 (Non-GAAP) | Q2 2024 (Non-GAAP) | | :----------------------------------- | :------------- | :------------- | :----------------- | :----------------- | | Revenue | $19,993 | $11,430 | $19,993 | $11,430 | | Gross margin percentage | (19.6%) | (20.5%) | (17.4%) | (16.8%) | | Total operating expenses | $7,580 | $9,581 | $6,544 | $8,278 | | Loss from operations | $(11,499) | $(11,924) | $(10,360) | $(10,451) | | Net loss | $(15,430) | $(12,241) | $(11,213) | $(10,730) | | Diluted loss per share | $(1.18) | $(0.97) | $(0.86) | $(0.85) | - Second quarter revenue of **$20.0 million**, up **74.9% year-over-year**, was within target guidance[7](index=7&type=chunk) - Cost efficiencies contributed to operating expenses reaching a **multi-year low**[7](index=7&type=chunk) [Second Quarter 2025 Financial Results](index=2&type=section&id=Second%20Quarter%20Results) FTC Solar's Q2 2025 financial results detail a $20.0 million revenue, GAAP gross loss of $3.9 million, operating expenses of $7.6 million, a net loss of $15.4 million, and a $470 million backlog [Revenue Performance](index=2&type=section&id=Revenue%20Performance) Total second-quarter revenue for FTC Solar was $20.0 million, marking a 74.9% increase compared to the year-earlier quarter due to higher product volumes, though it represented a 3.9% decrease from the prior quarter - Total second-quarter revenue was **$20.0 million**, representing a decrease of **3.9%** compared to the prior quarter and an increase of **74.9%** compared to the year-earlier quarter due to higher product volumes[9](index=9&type=chunk) [Gross Profit/Loss](index=2&type=section&id=Gross%20Profit%2FLoss) FTC Solar reported a GAAP gross loss of $3.9 million, or 19.6% of revenue, in Q2 2025, compared to $3.4 million (16.6% of revenue) in the prior quarter, with the Non-GAAP gross loss at $3.5 million, or 17.4% of revenue, compared to $1.9 million in the prior-year period - GAAP gross loss was **$3.9 million**, or **19.6% of revenue**, compared to gross loss of **$3.4 million**, or **16.6% of revenue**, in the prior quarter[10](index=10&type=chunk) - Non-GAAP gross loss was **$3.5 million** or **17.4% of revenue**, compared to Non-GAAP gross loss of **$1.9 million** in the prior-year period[10](index=10&type=chunk) [Operating Expenses](index=2&type=section&id=Operating%20Expenses) GAAP operating expenses for Q2 2025 were $7.6 million, while on a Non-GAAP basis, operating expenses were $6.5 million, a reduction compared to $8.3 million in the year-ago quarter, reflecting cost efficiencies - GAAP operating expenses were **$7.6 million**. On a Non-GAAP basis, operating expenses were **$6.5 million**, compared to Non-GAAP operating expenses of **$8.3 million** in the year-ago quarter[10](index=10&type=chunk) [Net Loss & Adjusted EBITDA](index=2&type=section&id=Net%20Loss%20%26%20Adjusted%20EBITDA) FTC Solar reported a GAAP net loss of $15.4 million, or $1.18 per diluted share, in Q2 2025, with the Adjusted EBITDA loss at $10.4 million, which was comparable to the $10.5 million loss in the year-ago quarter - GAAP net loss was **$15.4 million** or **$1.18 per diluted share**, compared to a loss of **$3.8 million** or **$0.58 per diluted share** in the prior quarter and a net loss of **$12.2 million** or **$0.97 per diluted share** (post-split) in the year-ago quarter[11](index=11&type=chunk) - Adjusted EBITDA loss was **$10.4 million**, compared to Adjusted EBITDA losses of **$9.8 million** in the prior quarter and **$10.5 million** in the year-ago quarter[11](index=11&type=chunk) [Backlog](index=2&type=section&id=Backlog) The contracted portion of FTC Solar's backlog currently stands at approximately $470 million, indicating future revenue potential - The contracted portion of the company's backlog now stands at approximately **$470 million**[12](index=12&type=chunk) [Subsequent Events](index=2&type=section&id=Subsequent%20Events) Subsequent events include securing a $75 million strategic financing facility and changes to the Board of Directors, with a new independent director appointed to the Audit Committee [Strategic Financing Facility](index=2&type=section&id=Strategic%20Financing%20Facility) On July 2, 2025, FTC Solar secured a new $75 million strategic financing facility with Cleanhill Partners and affiliates, including an initial term loan of up to $37.5 million, with $14.3 million already funded and the remaining $23.2 million expected to close in Q3 2025, subject to shareholder approval - On July 2, 2025, the company entered into a new **$75 million strategic financing facility** with Cleanhill Partners and affiliates, AV Securities and other long-term investors[13](index=13&type=chunk) - The Financing Facility provides for an initial term loan financing of up to **$37.5 million**, with **$14.3 million** closed and funded on July 2, 2025, and the balance of **$23.2 million** expected to close in the third quarter of 2025, subject to shareholder approval[14](index=14&type=chunk) [Board of Directors Changes](index=2&type=section&id=Board%20of%20Directors%20Changes) Dean Priddy retired from FTC Solar's Board of Directors after five years of service, effective August 4, while Tony Alvarez, previously a Board Observer, was appointed as an Independent Director and will assume the role of Chairman of the Audit Committee, bringing extensive solar industry and engineering experience to the board - Dean Priddy, a member of the Board of Directors for **five years**, stepped down from the Board effective **August 4, 2025**[15](index=15&type=chunk)[16](index=16&type=chunk) - Tony Alvarez, who has served as a Board Observer since **July 2023**, was appointed as an Independent Director and will replace Priddy as Chairman of the company's Audit Committee effective **August 5, 2025**[15](index=15&type=chunk) - Mr. Alvarez brings more than **35 years of solar and engineering experience**, having served as CEO of Solaria and EVP of Memory Solutions at Infineon, among other senior roles[18](index=18&type=chunk) [Outlook](index=3&type=section&id=Outlook) The company anticipates a 5% revenue increase in Q3 2025, with guidance for revenue between $18.0 million and $24.0 million and an Adjusted EBITDA loss between $(10.8) million and $(6.8) million [Third Quarter 2025 Guidance](index=3&type=section&id=Third%20Quarter%202025%20Guidance) FTC Solar expects third-quarter revenue to increase by approximately 5% compared to Q2 2025, with a more significant revenue ramp anticipated in the fourth quarter, providing specific guidance ranges for Q3 2025, including revenue between $18.0 million and $24.0 million, and Non-GAAP Adjusted EBITDA loss between $(10.8) million and $(6.8) million - For the third quarter, revenue at the midpoint of guidance range is expected to be up approximately **5%** compared to the second quarter, with a more significant ramp in revenue anticipated in the fourth quarter[20](index=20&type=chunk) Third Quarter 2025 Guidance (in millions) | Metric (in millions) | 2Q'25 Actual | 3Q'25 Guidance | | :------------------- | :----------- | :------------- | | Revenue | $20.0 | $18.0 – $24.0 | | Non-GAAP Gross Profit (Loss) | $(3.5) | $(2.4) – $0.6 | | Non-GAAP Gross Margin | (17.4%) | (13.4%) – 2.5% | | Non-GAAP operating expenses | $6.5 | $7.2 – $7.9 | | Non-GAAP adjusted EBITDA | $(10.4) | $(10.8) – $(6.8) | [Company Information](index=3&type=section&id=Company%20Information) FTC Solar, a global solar tracker provider, offers innovative systems to optimize energy production, with investor relations details and forward-looking statement disclaimers provided [About FTC Solar Inc.](index=3&type=section&id=About%20FTC%20Solar%20Inc.) Founded in 2017 by renewable energy industry veterans, FTC Solar is a global provider of solar tracker systems, technology, software, and engineering services, with innovative tracker designs engineered to significantly increase energy production at solar power installations by optimizing panel orientation, offering compelling performance, reliability, and an industry-leading installation cost-per-watt advantage - Founded in **2017**, FTC Solar is a global provider of solar tracker systems, technology, software, and engineering services[23](index=23&type=chunk) - FTC Solar's innovative tracker designs significantly increase energy production by dynamically optimizing solar panel orientation, providing compelling performance, reliability, and an **industry-leading installation cost-per-watt advantage**[23](index=23&type=chunk) [Investor Relations & Forward-Looking Statements](index=3&type=section&id=Investor%20Relations%20%26%20Forward-Looking%20Statements) This section provides details for the Second Quarter 2025 Earnings Conference Call, accessible via webcast, and includes a standard disclaimer regarding forward-looking statements, emphasizing that these are predictions based on current expectations and are subject to various risks and uncertainties detailed in SEC filings - FTC Solar's senior management will host a conference call for the investment community to discuss second quarter results and outlook, accessible via webcast on the Investor Relations section of their website[22](index=22&type=chunk) - The press release contains forward-looking statements that are predictions based on current expectations and projections, involving risks, uncertainties, and assumptions detailed in SEC filings, including Form 10-K and 10-Q[28](index=28&type=chunk) [Financial Statements (GAAP)](index=5&type=section&id=Financial%20Statements%20%28GAAP%29) This section presents FTC Solar's unaudited GAAP financial statements, including comprehensive loss, balance sheets, and cash flow statements for the specified periods [Condensed Consolidated Statements of Comprehensive Loss](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) This statement presents FTC Solar's unaudited GAAP comprehensive loss for the three and six months ended June 30, 2025 and 2024, with key figures including total revenue, gross loss, operating expenses, and net loss, along with basic and diluted net loss per share Condensed Consolidated Statements of Comprehensive Loss (in thousands) | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Total revenue | $19,993 | $11,430 | $40,796 | $24,017 | | Gross loss | $(3,919) | $(2,343) | $(7,366) | $(4,451) | | Total operating expenses | $7,580 | $9,581 | $14,693 | $19,975 | | Loss from operations | $(11,499) | $(11,924) | $(22,059) | $(24,426) | | Net loss | $(15,430) | $(12,241) | $(19,249) | $(21,012) | | Basic and diluted net loss per share | $(1.18) | $(0.97) | $(1.49) | $(1.67) | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This statement provides FTC Solar's unaudited GAAP financial position as of June 30, 2025, compared to December 31, 2024, detailing current and total assets, current and total liabilities, and stockholders' equity, showing changes in cash, accounts receivable, and overall financial structure Condensed Consolidated Balance Sheets (in thousands) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Cash and cash equivalents | $3,519 | $11,247 | | Total current assets | $70,296 | $76,128 | | Total assets | $82,955 | $89,928 | | Total current liabilities | $60,633 | $49,073 | | Total liabilities | $73,913 | $70,892 | | Total stockholders' equity | $9,042 | $19,036 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement outlines FTC Solar's unaudited GAAP cash flows for the six months ended June 30, 2025 and 2024, categorized into operating, investing, and financing activities, showing a net cash outflow from operations, a net cash inflow from investing activities, and a significant decrease in cash and cash equivalents by the end of the period Condensed Consolidated Statements of Cash Flows (in thousands) | Metric (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | | Net cash used in operations | $(10,780) | $(15,635) | | Net cash provided by investing activities | $2,989 | $1,154 | | Net cash provided by financing activities | $3 | $3 | | Decrease in cash, cash equivalents and restricted cash | $(7,728) | $(14,456) | | Cash and cash equivalents at end of period | $3,519 | $10,779 | [Non-GAAP Financial Measures Reconciliation](index=8&type=section&id=Notes%20to%20Reconciliations%20of%20Non-GAAP%20Financial%20Measures%20to%20Nearest%20Comparable%20GAAP%20Measures) This section defines and reconciles FTC Solar's non-GAAP financial measures, including gross loss, operating expenses, and Adjusted EBITDA, to their nearest GAAP equivalents [Non-GAAP Definitions and Rationale](index=8&type=section&id=Non-GAAP%20Definitions%20and%20Rationale) This section defines FTC Solar's non-GAAP financial measures, including Adjusted EBITDA, Adjusted Net Loss, and Adjusted EPS, outlining the specific adjustments made to GAAP net loss, with these measures presented as supplemental performance indicators to help investors and analysts compare performance across periods by excluding items not indicative of core operating performance - **Adjusted EBITDA** is defined as net loss plus provision for income taxes, interest expense (less income), depreciation, amortization, stock-based compensation, loss from changes in fair value of warrant liability, CEO transition costs, non-routine legal fees, reverse stock split costs, severance, and certain other costs (credits), while deducting contingent gains and gains from changes in fair value of warrant liability[37](index=37&type=chunk) - Non-GAAP measures are intended as supplemental measures to assist investors and analysts in comparing performance across reporting periods on an ongoing basis by excluding items not indicative of core operating performance[38](index=38&type=chunk) [Non-GAAP Gross Loss Reconciliation](index=8&type=section&id=Non-GAAP%20Gross%20Loss%20Reconciliation) This reconciliation table details the adjustments from GAAP gross loss to Non-GAAP gross loss for the three and six months ended June 30, 2025 and 2024, primarily by adding back depreciation expense and stock-based compensation Non-GAAP Gross Loss Reconciliation (in thousands) | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | U.S. GAAP gross loss | $(3,919) | $(2,343) | $(7,366) | $(4,451) | | Depreciation expense | $185 | $183 | $358 | $351 | | Stock-based compensation | $248 | $240 | $491 | $456 | | Non-GAAP gross loss | $(3,486) | $(1,920) | $(6,483) | $(3,644) | | Non-GAAP gross margin percentage | (17.4%) | (16.8%) | (15.9%) | (15.2%) | [Non-GAAP Operating Expenses Reconciliation](index=9&type=section&id=Non-GAAP%20Operating%20Expenses%20Reconciliation) This table reconciles GAAP operating expenses to Non-GAAP operating expenses for the three and six months ended June 30, 2025 and 2024, by adjusting for items such as depreciation, amortization, stock-based compensation, CEO transition costs, and non-routine legal fees Non-GAAP Operating Expenses Reconciliation (in thousands) | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | U.S. GAAP operating expenses | $7,580 | $9,581 | $14,693 | $19,975 | | Depreciation expense | $(120) | $(91) | $(249) | $(193) | | Stock-based compensation | $(688) | $(1,045) | $(725) | $(2,468) | | CEO transition | $(228) | — | $(388) | — | | Non-GAAP operating expenses | $6,544 | $8,278 | $13,189 | $16,980 | [Non-GAAP Adjusted EBITDA and Net Loss Reconciliation](index=9&type=section&id=Non-GAAP%20Adjusted%20EBITDA%20and%20Net%20Loss%20Reconciliation) This section provides a detailed reconciliation of GAAP net loss to Non-GAAP Adjusted EBITDA and Adjusted Net Loss for the three months ended June 30, 2025 and 2024, with key adjustments including provision for income taxes, interest expense, stock-based compensation, gain from change in fair value of warrant liability, and CEO transition costs, leading to the calculation of Adjusted EPS Non-GAAP Adjusted EBITDA and Net Loss Reconciliation (in thousands) | Metric (in thousands) | 3 Months Ended June 30, 2025 (Adjusted EBITDA) | 3 Months Ended June 30, 2025 (Adjusted Net Loss) | 3 Months Ended June 30, 2024 (Adjusted EBITDA) | 3 Months Ended June 30, 2024 (Adjusted Net Loss) | | :-------------------- | :--------------------------------------------- | :----------------------------------------------- | :--------------------------------------------- | :----------------------------------------------- | | Net loss per U.S. GAAP | $(15,430) | $(15,430) | $(12,241) | $(12,241) | | Provision for income taxes | $39 | — | $65 | — | | Interest expense | $731 | — | $117 | — | | Stock-based compensation | $936 | $936 | $1,285 | $1,285 | | Gain from change in fair value of warrant liability | $2,836 | $2,836 | — | — | | CEO transition | $228 | $228 | — | — | | Adjusted Non-GAAP amounts | $(10,360) | $(11,213) | $(10,451) | $(10,730) | | Adjusted Non-GAAP net loss per share (Adjusted EPS) | N/A | $(0.86) | N/A | $(0.85) |

Core Insights - FTC Solar reported second-quarter revenue of $20.0 million, reflecting a 74.9% increase year-over-year and a 3.9% decrease from the previous quarter, attributed to higher product volumes [8][9] - The company secured a $75 million strategic financing facility to support future growth and enhance customer confidence [2][13] - Adjusted EBITDA loss for the quarter was $10.4 million, compared to losses of $9.8 million in the prior quarter and $10.5 million in the same quarter last year [11][19] Financial Performance - Total revenue for Q2 2025 was $20.0 million, up 74.9% from Q2 2024, with a gross margin percentage of -19.6% [5][8] - GAAP net loss was $15.4 million, or $1.18 per diluted share, compared to a net loss of $12.2 million or $0.97 per diluted share in the same quarter last year [11][29] - The company's backlog now stands at approximately $470 million, indicating strong future revenue potential [12] Product and Innovation - FTC Solar introduced an extra-long tracker designed for 2,000-volt systems, which can reduce balance of system (eBOS) and operations and maintenance (O&M) costs while increasing power capacity by 33% [4] - The company claims to have the most easily constructible tracker on the market, with features that enhance flexibility for customers, including high-wind and multiple terrain-following options [3] Management and Governance - Tony Alvarez was appointed as an Independent Director, replacing Dean Priddy, who retired from the Board [15][16] - The company continues to strengthen its sales team and enhance its market position, with multiple gigawatts of business added over the past year [2][7] Outlook - For Q3 2025, the company expects revenue to increase approximately 5% compared to Q2 2025, with a more significant ramp in revenue anticipated in Q4 2025 [18]

Core Insights - FTC Solar reported second-quarter financial results for 2025, showing a revenue of $20.0 million, which is a 74.9% increase year-over-year and within the target guidance range [8][9]. - The company secured a $75 million strategic financing facility to support future growth and enhance customer confidence [2][13]. - Innovations in product offerings include an extra-long tracker for 2,000-volt systems, which can increase power capacity by 33% while reducing costs [4][3]. Financial Performance - Total revenue for Q2 2025 was $20.0 million, a decrease of 3.9% from the previous quarter but a significant increase of 74.9% compared to Q2 2024 [8][9]. - The gross loss was $3.9 million, representing 19.6% of revenue, compared to a gross loss of $3.4 million or 16.6% of revenue in the prior quarter [10]. - The net loss for Q2 2025 was $15.4 million, or $1.18 per diluted share, compared to a net loss of $12.2 million or $0.97 per diluted share in the same quarter last year [11][11]. Operational Highlights - The company has made significant strides in enhancing its product and market position, adding multiple gigawatts of business with Tier 1 accounts [2][7]. - Cost efficiencies have driven operating expenses to a multi-year low, with total operating expenses at $7.6 million for Q2 2025 [10][11]. - The contracted portion of the company's backlog now stands at approximately $470 million, indicating strong future revenue potential [12]. Strategic Developments - The company appointed Tony Alvarez as an Independent Director following Dean Priddy's retirement from the Board, bringing significant solar industry expertise [15][16]. - The outlook for Q3 2025 anticipates a revenue increase of approximately 5% compared to Q2 2025, with expectations for a more significant ramp in revenue in Q4 2025 [18].

Core Insights - FTC Solar is positioned as a leading provider of solar tracker systems, offering solutions that enable utility-scale developers to secure full Investment Tax Credit (ITC) eligibility under recent policy changes [2][3][5] - The company emphasizes the importance of flexibility and adaptability in its products, particularly through the use of universal torque tubes and innovative designs that accommodate various module types [3][4][5] Product and Service Offerings - FTC Solar's tracker systems are designed to be module agnostic, allowing for late-stage modifications without compromising project timelines [4][5] - The company provides two paths for safe harbor qualification: Capex Safe Harbor through early procurement of tracker components and Physical Work Safe Harbor via early-stage foundation procurement [7][8] Market Position and Strategy - FTC Solar's products are optimized for safe harbor eligibility, with a focus on maximizing project flexibility and minimizing capital expenditures [5][6] - The company is actively booking safe harbor orders and has a dedicated engineering team to assist clients in meeting their safe harbor goals [6][8] Industry Context - The recent policy shifts under the "One Big Beautiful Bill" (OBBB) have created uncertainty for solar developers regarding tax credit eligibility, making FTC Solar's offerings particularly relevant [3][5] - The company's robust U.S. manufacturing capabilities and engineering services position it as a reliable partner for developers navigating the evolving regulatory landscape [2][5]

Core Insights - FTC Solar, Inc. is positioned to assist utility-scale developers in achieving "begin construction" status to secure full Investment Tax Credit (ITC) eligibility under the Inflation Reduction Act (IRA) and new "One Big Beautiful Bill" (OBBB) rules [1][2] Group 1: Safe Harbor Strategies - The company offers two viable paths for safe harbor qualification, addressing regulatory uncertainty and maximizing project returns for solar developers [2][7] - FTC Solar's 1P "Pioneer" trackers utilize universal torque tubes and innovative designs, allowing flexibility for module changes late in the design process [2][3] Group 2: Product Offerings - FTC Solar's products are optimized for safe harbor eligibility, with a robust offering across both 1P and 2P technologies, tailored for various project conditions [4][6] - The company emphasizes simplicity in design, enabling developers to optimize capital expenditures by procuring additional structural components adaptable to diverse project configurations [3][4] Group 3: Engineering and Support - A dedicated engineering team is available to identify site-specific installation opportunities and provide consultative support for tracker component procurement strategies [8] - FTC Solar is actively booking safe harbor orders and providing immediate support to meet customer goals [5][8] Group 4: Supply Chain and Capacity - The company is scaling its domestic supply chain, with 100% U.S.-sourced trackers available for orders starting in Q4 2025 [8]

Core Viewpoint - FTC Solar, Inc. is set to report its second quarter 2025 financial results on August 5, 2025, before market open, indicating ongoing transparency and engagement with investors [1]. Company Overview - FTC Solar, Inc. was founded in 2017 by renewable energy industry veterans and specializes in solar tracker systems, technology, software, and engineering services [3]. - The company's solar trackers enhance energy production by optimizing solar panel orientation, providing a competitive edge in performance and reliability, along with an industry-leading installation cost-per-watt advantage [3]. Investor Communication - A conference call for the investment community will take place on August 5, 2025, at 8:30 a.m. E.T., where the company will discuss its financial results and outlook [2]. - The conference call will be accessible via webcast and will be available for replay on the company's Investor Relations website for 30 days [2].