Industry Overview - The U.S. solar industry experienced a 24% year-over-year decline in installations during Q2 2025, with all segments except commercial solar shrinking due to unfavorable federal policies and trade challenges [1][3] - Solar photovoltaic (PV) accounted for 56% of the new electricity-generating capacity added to the U.S. grid in the first half of 2025, maintaining its status as the dominant form of new generating capacity [2] Trends Impacting the Industry - The U.S. Energy Information Administration (EIA) projects that total U.S. electricity generation will grow by 2.3% in 2025, with solar power contributing the largest share of this increase [3] - Federal policies, particularly the One Big Beautiful Bill Act (OBBBA), have cut federal tax credits and introduced new requirements that may adversely affect solar manufacturing capacity and investment [4] - Tariffs imposed in 2025 have increased component and operational costs, with module costs rising by 13% year over year due to the AD/CVD case on solar cells and modules [5][6] Financial Performance - The solar industry has underperformed compared to the Oils-Energy sector and the S&P 500, with a collective loss of 22.5% over the past year, while the Oils-Energy sector rose by 4.5% and the S&P 500 surged by 18.8% [9] - The industry is currently trading at a trailing 12-month EV/EBITDA of 5.52X, compared to the S&P 500's 18.22X and the sector's 5.07X [12] Notable Companies - **Sunrun Inc.**: Announced the pricing of a securitization of leases and power purchase agreements, raising over $1.5 billion in financing in Q3 2025, supporting profitable growth [15][16] - **Shoals Technologies Group**: Announced the groundbreaking of the Maryvale Solar and Energy Storage Project in Australia, which will deliver 243 MW of solar capacity and 172 MW of battery storage, enhancing its international presence [20][21] - **Tigo Energy Inc.**: Completed compliance testing for its Tigo EI Residential solution in Slovakia, enhancing its market position and expected to improve sales by 91.9% in 2025 [25][26]

Core Viewpoint - Tigo Energy, Inc. (TYGO) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - Tigo Energy's recent upgrade reflects an improvement in its underlying business, suggesting that investor sentiment may drive the stock price higher [5][10]. Earnings Estimate Revisions - Tigo Energy is projected to earn -$0.27 per share for the fiscal year ending December 2025, showing no year-over-year change [8]. - Over the past three months, the Zacks Consensus Estimate for Tigo Energy has increased by 26.8%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - Tigo Energy's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10].

Core Insights - Tigo Energy, Inc. is recognized as a promising investment in the wind power and solar sector, particularly following its recent partnership with EG4 Electronics [1][2] - The collaboration aims to enhance manufacturing capacity for optimized inverters and Module Level Power Electronics, utilizing EG4's large manufacturing facility [2] - Tigo Energy focuses on providing hardware and software solutions that improve energy production, safety, and reduce operating costs across various solar system scales [4] Partnership Details - Tigo Energy and EG4 Electronics have formed a manufacturing and marketing partnership to boost the development of smart hardware and software for solar systems [1][2] - The partnership will leverage EG4's 310,000-square-foot manufacturing facility located in Commerce to strengthen domestic energy manufacturing capabilities [2] Strategic Vision - The partnership reflects a commitment to energy autonomy for customers and manufacturing autonomy for American innovators, as stated by EG4's founder [3]

[FORM 10-Q Filing Information](index=1&type=section&id=FORM%2010-Q) This section details the company's Quarterly Report on Form 10-Q filing, including its legal status and trading information [Filing Details](index=1&type=section&id=Filing%20Details) Tigo Energy, Inc. filed this Form 10-Q for Q2 2025, identifying as an Emerging Growth and Smaller Reporting Company - Tigo Energy, Inc. filed a **Quarterly Report on Form 10-Q** for the period ended **June 30, 2025**[2](index=2&type=chunk) Condensed Consolidated Balance Sheets (in thousands) | Attribute | Value | | :--- | :--- | | Registrant Name | Tigo Energy, Inc. | | State of Incorporation | Delaware | | IRS Employer Identification No. | 83-3583873 | | Principal Executive Offices | 983 University Avenue, Suite B, Los Gatos, California 95032 | | Telephone Number | (408) 402-0802 | | Trading Symbol | TYGO | | Exchange | The Nasdaq Stock Market LLC | | Filer Status | Emerging growth company, Non-accelerated filer, Smaller reporting company | | Common Stock Outstanding (as of July 31, 2025) | 65,740,057 shares | [Cautionary Note Regarding Forward-Looking Statements](index=2&type=section&id=CAUTIONARY%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This section warns that the report contains forward-looking statements subject to risks and uncertainties [Nature of Forward-Looking Statements](index=2&type=section&id=Nature%20of%20Forward-Looking%20Statements) The report contains forward-looking statements, which are projections based on management's beliefs, not performance guarantees, subject to risks - The report contains **forward-looking statements** that are **projections**, **forecasts**, and **not guarantees of performance**, based on management's current expectations and subject to risks and uncertainties[5](index=5&type=chunk)[6](index=6&type=chunk) [Key Areas of Forward-Looking Statements and Risks](index=2&type=section&id=Key%20Areas%20of%20Forward-Looking%20Statements%20and%20Risks) Forward-looking statements address liquidity, financial projections, Nasdaq compliance, product development, market seasonality, and various operational risks - Forward-looking statements address the company's ability to meet **liquidity requirements**, including continuing as a **going concern**, projected financial information, **Nasdaq listing compliance**, product development, and managing risks associated with the solar industry's cyclical nature[7](index=7&type=chunk) - Other key areas include the ability to acquire and protect **intellectual property**, manage dependence on **contract manufacturers** (primarily in China and Thailand), respond to **foreign currency fluctuations** and **trade barriers**, enhance future operating results, and forecast demand accurately[7](index=7&type=chunk) - The company cautions that **actual results may differ materially and adversely** from forward-looking statements due to various risks, uncertainties, and assumptions, including those outlined in Part II, Item 1A, 'Risk Factors'[8](index=8&type=chunk) [PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the company's unaudited condensed consolidated financial statements and management's discussion and analysis [Item 1. Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents Tigo Energy, Inc.'s unaudited condensed consolidated financial statements and explanatory notes [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet reflects increased liabilities from reclassified debt, resulting in negative working capital and decreased stockholders' equity Condensed Consolidated Balance Sheets (in thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $10,212 | $11,746 | | Marketable securities, short-term | $17,804 | $8,156 | | Accounts receivable, net | $10,395 | $7,976 | | Inventory | $18,927 | $21,997 | | Total current assets | $60,352 | $53,408 | | Total assets | $80,645 | $72,911 | | Accounts payable | $14,226 | $8,077 | | Short-term debt, net | $44,981 | — | | Total current liabilities | $68,002 | $17,108 | | Total liabilities | $78,953 | $64,526 | | Total stockholders' equity | $1,692 | $8,385 | - The company had **negative net working capital of $7.7 million** as of June 30, 2025, primarily due to the reclassification of the **$50.0 million Convertible Promissory Note** to current liabilities[15](index=15&type=chunk)[37](index=37&type=chunk) [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Significant revenue growth and improved gross margin were reported, but the company continued to incur net losses, albeit reduced Condensed Consolidated Statements of Operations and Comprehensive Loss (in thousands, except per share data) | Metric | 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 revenue | $24,055 | $12,701 | $42,894 | $22,503 | | Cost of revenue | $13,292 | $8,834 | $24,958 | $15,870 | | Gross profit | $10,763 | $3,867 | $17,936 | $6,633 | | Loss from operations | $(1,504) | $(8,403) | $(5,481) | $(17,491) | | Net loss | $(4,430) | $(11,321) | $(11,431) | $(22,827) | | Basic loss per common share | $(0.07) | $(0.19) | $(0.18) | $(0.38) | | Diluted loss per common share | $(0.07) | $(0.19) | $(0.18) | $(0.38) | - Net revenue increased by **89.4%** for the three months ended June 30, 2025, and **90.6%** for the six months ended June 30, 2025, compared to the respective prior periods[18](index=18&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk)[128](index=128&type=chunk) - Gross margin improved significantly to **44.7%** for Q2 2025 (from **30.4%** in Q2 2024) and **41.8%** for YTD 2025 (from **29.5%** in YTD 2024)[18](index=18&type=chunk)[124](index=124&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity decreased to $1.692 million due to net loss, partially offset by stock-based compensation and ATM proceeds Condensed Consolidated Statements of Stockholders' Equity (in thousands) | Item | Balance at Dec 31, 2024 | Balance at June 30, 2025 | | :--- | :--- | :--- | | Common stock | $6 | $6 | | Additional paid-in capital | $146,903 | $151,646 | | Accumulated deficit | $(138,526) | $(149,957) | | Accumulated other comprehensive income (loss) | $2 | $(3) | | Total stockholders' equity | $8,385 | $1,692 | - Key changes in stockholders' equity for the six months ended June 30, 2025, include a **net loss of $11.431 million**, **stock-based compensation expense of $3.876 million**, and **net proceeds from at-the-market offering of $0.773 million**[19](index=19&type=chunk)[24](index=24&type=chunk)[86](index=86&type=chunk)[161](index=161&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating activities generated positive cash flow, while investing activities used cash, and financing activities provided a modest inflow Condensed Consolidated Statements of Cash Flows (in thousands) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $7,242 | $(12,872) | | Net cash (used in) provided by investing activities | $(9,643) | $23,350 | | Net cash provided by financing activities | $867 | $260 | | Net (decrease) increase in cash and cash equivalents | $(1,534) | $10,738 | | Cash and cash equivalents at end of period | $10,212 | $15,143 | - Net cash provided by operating activities **increased by $20.1 million**, from a **use of $12.872 million** in 2024 to a **provision of $7.242 million** in 2025[24](index=24&type=chunk)[164](index=164&type=chunk) - Net cash used in investing activities was **$9.6 million** in 2025, primarily due to the **purchase of marketable securities**, contrasting with a **$23.4 million provision** in 2024 from sales and maturities of marketable securities[24](index=24&type=chunk)[165](index=165&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail business operations, accounting policies, financial instruments, and a critical going concern disclosure [1. Nature of Operations](index=11&type=section&id=1.%20Nature%20of%20Operations) Tigo Energy provides global solar and energy storage solutions, continuing Legacy Tigo's operations after a May 2023 recapitalization - Tigo Energy, Inc. offers **solar and energy storage solutions**, including **module level power electronics (MLPE)**, **inverters**, and **battery storage systems**, for utility, commercial, and residential solar arrays[29](index=29&type=chunk) - The company's operations are a continuation of **Legacy Tigo**, following a **reverse recapitalization in May 2023** where Roth CH Acquisition IV Co. (ROCG) merged with Legacy Tigo[28](index=28&type=chunk)[30](index=30&type=chunk) [2. Summary of Significant Accounting Policies](index=13&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) This section details accounting policies and highlights substantial doubt about the company's going concern status due to liquidity and debt maturity - Management has determined that the company's **current cash ($10.2 million)**, **negative net working capital ($7.7 million)**, and the upcoming maturity of its **$50.0 million Convertible Promissory Note** in January 2026 raise **substantial doubt about its ability to continue as a going concern**[37](index=37&type=chunk)[156](index=156&type=chunk)[157](index=157&type=chunk) - The company is exploring **refinancing or other transactions** for the Convertible Promissory Note, but there's **no assurance of successful implementation or sufficient liquidity**[38](index=38&type=chunk)[158](index=158&type=chunk) - The company is an **emerging growth company** and has elected to use the **extended transition period** for complying with new or revised accounting standards[40](index=40&type=chunk) [3. Net Loss Per Share](index=14&type=section&id=3.%20Net%20Loss%20Per%20Share) Basic and diluted net loss per share are identical due to the company's net loss, making potential dilutive shares anti-dilutive Net Loss Per Share (in thousands, except share and per share data) | Metric | 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 | $(4,430) | $(11,321) | $(11,431) | $(22,827) | | Weighted-average shares outstanding (basic and diluted) | 62,290,411 | 60,363,680 | 61,977,574 | 59,874,991 | | Net loss per share (basic and diluted) | $(0.07) | $(0.19) | $(0.18) | $(0.38) | - Outstanding stock options, performance stock units, restricted stock units, and the Convertible Promissory Note, totaling **9,807,367 instruments** as of June 30, 2025, were excluded from diluted EPS calculation as their inclusion would be **anti-dilutive**[48](index=48&type=chunk) [4. Fair Value of Financial Instruments](index=16&type=section&id=4.%20Fair%20Value%20of%20Financial%20Instruments) Financial instruments are measured using a three-level hierarchy, with marketable securities as Level 2 and the Convertible Promissory Note as Level 3 Fair Value Measurement at Reporting Date (in thousands) | Asset Type | June 30, 2025 (Level 1) | June 30, 2025 (Level 2) | Dec 31, 2024 (Level 1) | Dec 31, 2024 (Level 2) | | :--- | :--- | :--- | :--- | :--- | | Money market accounts | $69 | — | $6,839 | — | | U.S. agency securities (cash equivalents) | — | $1,987 | — | $499 | | U.S. agency securities (marketable securities) | — | $17,804 | — | $6,138 | | Corporate bonds (marketable securities) | — | — | — | $2,018 | - As of June 30, 2025, the **fair value of the Convertible Promissory Note was $45.7 million**, with a **carrying value of $45.0 million**, estimated using **Level 3 inputs**[53](index=53&type=chunk) [5. Revenue Recognition](index=18&type=section&id=5.%20Revenue%20Recognition) Net revenue significantly increased in EMEA and Americas from MLPE and GO ESS products, while APAC revenue declined Net Revenue by Geographic Region (in thousands) | Region | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | EMEA | $18,259 | $6,998 | $29,811 | $12,787 | | Americas | $4,595 | $2,835 | $9,314 | $5,572 | | APAC | $1,201 | $2,868 | $3,769 | $4,144 | | Total net revenue | $24,055 | $12,701 | $42,894 | $22,503 | - EMEA net revenue increased by **160.9%** (QoQ) and **133.1%** (YoY), driven by **MLPE and GO ESS products** in Germany, Czech Republic, UK, Italy, and Poland[55](index=55&type=chunk)[131](index=131&type=chunk)[137](index=137&type=chunk) - Americas net revenue increased by **62.1%** (QoQ) and **67.2%** (YoY), primarily from **MLPE, royalty revenue, and GO ESS** in the U.S[55](index=55&type=chunk)[137](index=137&type=chunk) Deferred Revenue (in thousands) | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Balance at beginning of period | $1,378 | $1,051 | $1,169 | $801 | | Deferral of revenue | $5,108 | $2,949 | $8,909 | $4,615 | | Recognition of unearned revenue | $(4,864) | $(3,021) | $(8,456) | $(4,437) | | Balance at end of period | $1,622 | $979 | $1,622 | $979 | Product Warranty Liability (in thousands) | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Balance at beginning of period | $7,324 | $5,479 | $5,798 | $5,632 | | Provision for warranty issued | $986 | $550 | $1,349 | $688 | | Changes in estimate | $(40) | $(177) | $1,240 | $(374) | | Settlements | $(143) | $(75) | $(260) | $(169) | | Balance at end of period | $8,127 | $5,777 | $8,127 | $5,777 | [6. Supplementary Balance Sheet and Geographic Information](index=20&type=section&id=6.%20Supplementary%20Balance%20Sheet%20and%20Geographic%20Information) This note provides detailed breakdowns of inventory, property, equipment, and long-lived assets by geographic region Inventory, net (in thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Raw materials | $883 | $662 | | Finished goods | $18,044 | $21,335 | | Total inventory, net | $18,927 | $21,997 | Property and equipment, net (in thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Machinery and equipment | $6,404 | $6,051 | | Total property and equipment, gross | $7,651 | $7,577 | | Less: Accumulated depreciation | $5,114 | $4,765 | | Property and equipment, net | $2,537 | $2,812 | Long-lived assets by Geographic Region (in thousands) | Region | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | EMEA | $1,348 | $1,545 | | Americas | $2,031 | $719 | | APAC | $1,859 | $2,124 | | Total long-lived assets | $5,238 | $4,388 | - Long-lived assets in the U.S. **increased significantly from 16.4% to 38.8%** of total long-lived assets between December 31, 2024, and June 30, 2025[65](index=65&type=chunk) [7. Debt](index=22&type=section&id=7.%20Debt) Debt primarily comprises a $50.0 million Convertible Promissory Note, reclassified as short-term, significantly impacting the going concern assessment Debt (in thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Convertible Promissory Note (principal) | $50,000 | $50,000 | | Short-term debt, net of unamortized debt discount and issuance costs | $44,981 | — | | Long-term debt, net of unamortized debt discount and issuance costs | — | $40,511 | - The **$50.0 million Convertible Promissory Note**, bearing **5.0% annual interest**, matures on **January 9, 2026**, and was **reclassified to current liabilities**[66](index=66&type=chunk)[67](index=67&type=chunk) - The note holder has options to **convert the note into common stock** or require **cash redemption** upon a change of control event[68](index=68&type=chunk) [8. Commitments and Contingencies](index=24&type=section&id=8.%20Commitments%20and%20Contingencies) The company has employment agreements and potential litigation, but no material losses were recorded, with indemnification agreements in place - The company has **employment agreements** with key personnel and may face litigation, but **no material losses** were recorded for legal claims during the three and six months ended June 30, 2025[71](index=71&type=chunk)[72](index=72&type=chunk) - **Indemnification agreements** are in place for directors and executive officers, with the estimated fair value of any obligation deemed **minimal**[74](index=74&type=chunk)[75](index=75&type=chunk) [9. Common and Preferred Stock](index=25&type=section&id=9.%20Common%20and%20Preferred%20Stock) The company has authorized common and preferred stock, with common shares reserved for future issuance and an active ATM Offering Program Common Stock Reserved for Future Issuance (as of June 30, 2025) | Item | Shares | | :--- | :--- | | Stock options issued and outstanding | 4,945,867 | | Restricted stock units issued and outstanding | 2,127,500 | | Performance stock units issued and outstanding | 1,760,048 | | Shares available for potential conversion of L1 Convertible Note | 5,305,861 | | Shares available for grant under 2023 Equity Incentive Plan | 2,759,187 | | Total | 16,898,463 | - Under the 2024 ATM Program, the company issued **987,209 shares** for **gross proceeds of approximately $1.1 million** during the six months ended June 30, 2025, with **$13.1 million remaining available**[78](index=78&type=chunk)[79](index=79&type=chunk)[160](index=160&type=chunk)[161](index=161&type=chunk) [10. Stock-Based Compensation](index=25&type=section&id=10.%20Stock-Based%20Compensation) The company recognized $3.876 million in stock-based compensation expense, with substantial unrecognized expense for unvested awards Total Stock-Based Compensation Expense (in thousands) | Expense Category | 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 sales | $18 | $31 | $39 | $95 | | Research and development | $136 | $223 | $442 | $679 | | Sales and marketing | $801 | $341 | $1,204 | $1,171 | | General and administrative | $1,345 | $1,108 | $2,191 | $2,263 | | Total stock-based compensation | $2,300 | $1,703 | $3,876 | $4,208 | - As of June 30, 2025, **unrecognized compensation expense** for unvested stock options was **$5.3 million** (weighted-average period of 2.5 years), for RSUs was **$4.5 million** (1.4 years), and for PSUs was **$1.1 million** (1.6 years)[89](index=89&type=chunk)[92](index=92&type=chunk)[94](index=94&type=chunk) - An Option Exchange program in November 2024 resulted in the exchange of 725,028 eligible options for 181,107 Replacement Options, with **no additional stock-based compensation expense recognized**[87](index=87&type=chunk)[88](index=88&type=chunk) [11. Leases](index=28&type=section&id=11.%20Leases) The company leases office space and vehicles globally as operating leases, incurring $0.770 million in lease costs for H1 2025 Total Lease Cost (in thousands) | Item | 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 costs | $195 | $314 | $512 | $648 | | Variable lease costs | $135 | $148 | $258 | $240 | | Total lease cost | $330 | $462 | $770 | $888 | Lease Information (as of June 30, 2025) | Metric | Value | | :--- | :--- | | Weighted-average remaining lease term | 3.5 years | | Weighted-average discount rate | 6.5% | | Present value of lease liabilities | $2,902 thousand | [12. Goodwill and Intangible Assets](index=30&type=section&id=12.%20Goodwill%20and%20Intangible%20Assets) Goodwill remained at $12.2 million, and intangible assets, mainly developed technology, had a net book value of $1.787 million - **Goodwill balance remained at $12.2 million** as of June 30, 2025, related to the acquisition of Tigo Energy AI Ltd (f/k/a Foresight Energy, Ltd. ('fSight'))[99](index=99&type=chunk) Intangible Assets (in thousands, except useful life) | Asset Class | Weighted Average Useful Life (Years) | Gross (June 30, 2025) | Accumulated Amortization (June 30, 2025) | Net Book Value (June 30, 2025) | | :--- | :--- | :--- | :--- | :--- | | Patents | 6.7 | $450 | $(172) | $278 | | Customer relationships | 10.0 | $170 | $(41) | $129 | | Developed technology | 10.0 | $1,820 | $(440) | $1,380 | | Total intangible assets | | $2,440 | $(653) | $1,787 | - Expected amortization expense for intangible assets is **$0.135 million** for the remainder of 2025 and **$0.270 million** for 2026[102](index=102&type=chunk) [13. Income Taxes](index=31&type=section&id=13.%20Income%20Taxes) Income tax expense increased due to a foreign tax settlement, with the effective tax rate affected by valuation allowances - Income tax expense increased by **$0.1 million** for the three months and **$0.4 million** for the six months ended June 30, 2025, primarily due to a **$0.3 million discrete tax expense** from the settlement of a foreign tax examination in Italy[103](index=103&type=chunk)[154](index=154&type=chunk)[155](index=155&type=chunk) - The company's effective tax rates differ from the **21% federal statutory rate** mainly due to **valuation allowances** against deferred tax assets[103](index=103&type=chunk) - The company is evaluating the impact of the **One Big Beautiful Bill Act (OBBB)**, enacted in July 2025, on income taxes and future financial statements[104](index=104&type=chunk) [14. Subsequent Events](index=31&type=section&id=14.%20Subsequent%20Events) No subsequent events requiring adjustment or disclosure were identified up to the financial statement issuance date - **No subsequent events** requiring adjustment or disclosure were identified after the balance sheet date up to the issuance of the condensed consolidated financial statements[105](index=105&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition, operational results, key performance factors, and critical liquidity and going concern issues [Overview](index=32&type=section&id=Overview) Tigo Energy provides global smart hardware and software solutions for solar and energy storage, focusing on safety and efficiency - Tigo Energy's mission is to provide **smart hardware and software solutions** that **enhance safety**, **increase energy yield**, and **lower operating costs** for residential, commercial, and utility-scale solar systems[107](index=107&type=chunk) - The company **operates globally**, with product installations in **over 100 countries**, and primarily distributes products through distributors and solar installers[107](index=107&type=chunk) [Key Factors that May Influence Future Results of Operations](index=32&type=section&id=Key%20Factors%20that%20May%20Influence%20Future%20Results%20of%20Operations) Future results are influenced by trade tariffs, supply chain, OBBB tax credit impacts, demand, macroeconomic conditions, and expansion strategies - **Trade tariffs**, particularly on MLPE products from Thailand (**19% reciprocal import tariff**) and GO ESS products from China (**30% reciprocal import tariff**), pose risks to sourcing flexibility, pricing, and demand[109](index=109&type=chunk)[111](index=111&type=chunk) - The **OBBB**, enacted in July 2025, **phases out the residential Investment Tax Credit (ITC) by December 31, 2025**, and imposes **new timing and domestic content requirements for commercial ITCs**, potentially impacting eligibility and demand[113](index=113&type=chunk)[114](index=114&type=chunk)[115](index=115&type=chunk)[117](index=117&type=chunk) - **Demand for products has recovered** since early 2024, especially in Europe and the U.S., driven by strengthening market conditions and increased market share[118](index=118&type=chunk) - The company plans to **expand its presence** in the U.S. residential market and internationally, particularly in EMEA, and continues to develop new offerings like **GO Energy Storage Systems (GO ESS)** and Predict+ service[120](index=120&type=chunk)[121](index=121&type=chunk) [Key Operating and Financial Metrics](index=34&type=section&id=Key%20Operating%20and%20Financial%20Metrics) Management reviews net revenue, gross profit, gross margin, and net loss to evaluate business performance and make strategic decisions Key Operating and Financial Metrics (in thousands, except percentages) | Metric | 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 revenue | $24,055 | $12,701 | $42,894 | $22,503 | | Gross profit | $10,763 | $3,867 | $17,936 | $6,633 | | Gross margin | 44.7% | 30.4% | 41.8% | 29.5% | | Loss from operations | $(1,504) | $(8,403) | $(5,481) | $(17,491) | | Net loss | $(4,430) | $(11,321) | $(11,431) | $(22,827) | [Key Components and Comparison of Results of Operations](index=35&type=section&id=Key%20Components%20and%20Comparison%20of%20Results%20of%20Operations) This section analyzes changes in net revenue, cost of revenues, gross profit, operating expenses, and income tax expense [Net Revenue Analysis](index=35&type=section&id=Net%20Revenue%20Analysis) Net revenue significantly increased due to strong MLPE and GO ESS product growth in EMEA and Americas, despite an APAC decline Net Revenue Growth (in thousands, except percentages) | Period | 2025 Net Revenue | 2024 Net Revenue | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Three Months Ended June 30 | $24,055 | $12,701 | $11,354 | 89.4% | | Six Months Ended June 30 | $42,894 | $22,503 | $20,391 | 90.6% | - MLPE product line revenue increased by **$8.7 million (73.2%)** QoQ and **$16.7 million (84.4%)** YoY, attributed to market recovery and increased market acceptance[127](index=127&type=chunk)[128](index=128&type=chunk) - GO ESS product line revenue increased by **$1.7 million (325.7%)** QoQ and **$2.4 million (127.1%)** YoY, primarily due to increased promotional activities[127](index=127&type=chunk)[128](index=128&type=chunk) - EMEA net revenue surged by **160.9% QoQ** and **133.1% YoY**, driven by MLPE demand in Germany, Czech Republic, UK, Italy, and Poland, and GO ESS sales in Italy[130](index=130&type=chunk)[131](index=131&type=chunk)[137](index=137&type=chunk) - APAC net revenue **decreased by 58.1% QoQ** and **9.0% YoY**, mainly due to lower MLPE demand in China, Thailand, Singapore, Philippines, and Australia[130](index=130&type=chunk)[137](index=137&type=chunk) [Cost of Revenues and Gross Profit Analysis](index=37&type=section&id=Cost%20of%20Revenues%20and%20Gross%20Profit%20Analysis) Cost of revenues increased with higher revenue, but gross profit and margin improved significantly due to sales of previously impaired inventory Cost of Revenues and Gross Profit (in thousands, except percentages) | Metric | 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 | $13,292 | $8,834 | $24,958 | $15,870 | | Gross profit | $10,763 | $3,867 | $17,936 | $6,633 | | Gross margin | 44.7% | 30.4% | 41.8% | 29.5% | - Gross margin **increased by 14.3 percentage points QoQ** and **12.3 percentage points YoY**, primarily driven by the sale of previously reserved GO ESS inventory at higher margins[136](index=136&type=chunk)[139](index=139&type=chunk) - Cost of revenues increased due to higher net revenue and **increased product warranty expense**, partially offset by **sales of previously impaired GO ESS inventory**[135](index=135&type=chunk)[138](index=138&type=chunk) [Operating Expenses Analysis](index=39&type=section&id=Operating%20Expenses%20Analysis) R&D expenses decreased, S&M increased QoQ but decreased YoY, and G&A slightly increased due to executive incentive accruals Operating Expenses (in thousands, except percentages) | Expense Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Research and development | $2,267 | $2,704 | $4,431 | $5,175 | | Sales and marketing | $4,412 | $4,055 | $8,328 | $8,658 | | General and administrative | $5,588 | $5,511 | $10,658 | $10,291 | - R&D expense **decreased by 16.2% QoQ** and **14.4% YoY**, primarily due to reduced payroll expense from workforce reductions in April 2024[141](index=141&type=chunk)[142](index=142&type=chunk) - Sales and marketing expense **increased by 8.8% QoQ** due to higher professional fees and sales commissions, but **decreased by 3.8% YoY** due to lower headcount[145](index=145&type=chunk)[146](index=146&type=chunk) - G&A expense **increased by 3.6% YoY**, mainly due to accruals for annual executive short-term incentive compensation, partially offset by decreased insurance expense[149](index=149&type=chunk) [Other Expenses, Net and Income Tax Expense Analysis](index=40&type=section&id=Other%20Expenses,%20Net%20and%20Income%20Tax%20Expense%20Analysis) Interest expense remained stable, but income tax expense significantly increased due to a foreign tax examination settlement Other Expenses (Income), Net (in thousands, except percentages) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Change in fair value of contingent shares liability | — | $41 | — | $(155) | | Interest expense | $2,868 | $2,862 | $5,739 | $5,688 | | Other income, net | $(100) | $(1) | $(243) | $(213) | | Total other expenses, net | $2,768 | $2,902 | $5,496 | $5,320 | Income Tax Expense (in thousands, except percentages) | Metric | 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 | $158 | $16 | $454 | $16 | - Income tax expense **increased by $0.4 million** for the six months ended June 30, 2025, primarily due to a **$0.3 million settlement** of a foreign tax examination in Italy[103](index=103&type=chunk)[155](index=155&type=chunk) [Liquidity, Going Concern and Capital Resources](index=41&type=section&id=Liquidity,%20Going%20Concern%20and%20Capital%20Resources) Substantial doubt exists about the company's going concern ability due to negative working capital and the $50.0 million Convertible Promissory Note maturity - As of June 30, 2025, the company had **$28.0 million in cash and marketable securities** but **negative working capital of $7.7 million**[156](index=156&type=chunk) - **Substantial doubt** exists about the company's ability to continue as a going concern due to the **$50.0 million Convertible Promissory Note** maturing on **January 9, 2026**, and **insufficient current liquidity** to repay it[157](index=157&type=chunk)[162](index=162&type=chunk) - Management is exploring **refinancing or other payment options** for the Convertible Promissory Note, but **cannot assure successful implementation or sufficient liquidity**, which could **dilute current stockholders**[158](index=158&type=chunk)[162](index=162&type=chunk) - The 2024 ATM Program generated approximately **$1.1 million in gross proceeds** during the six months ended June 30, 2025, with **$13.1 million remaining available**[160](index=160&type=chunk)[161](index=161&type=chunk) [Cash Flows](index=42&type=section&id=Cash%20Flows) Operating activities provided $7.2 million, investing activities used $9.6 million, and financing activities provided $0.9 million Summary of Cash Flows (in thousands) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $7,242 | $(12,872) | | Net cash (used in) provided by investing activities | $(9,643) | $23,350 | | Net cash provided by financing activities | $867 | $260 | | Net (decrease) increase in cash and cash equivalents | $(1,534) | $10,738 | - Cash provided by operating activities **increased by $20.1 million** year-over-year, driven by adjustments to net loss and changes in operating assets and liabilities[164](index=164&type=chunk) - Investing activities shifted from **providing $23.4 million** in 2024 to **using $9.6 million** in 2025, mainly due to **increased purchases of marketable securities**[165](index=165&type=chunk) [Contractual Obligations](index=42&type=section&id=Contractual%20Obligations) Contractual obligations include the Convertible Promissory Note and operating leases, with no material changes since the 2024 Annual Report - Contractual obligations primarily consist of the **Convertible Promissory Note** and **operating leases**, with **no material changes** since the 2024 Annual Report[167](index=167&type=chunk) [Off-Balance Sheet Arrangements](index=42&type=section&id=Off-Balance%20Sheet%20Arrangements) The company did not have any off-balance sheet arrangements during the reported periods - The company did **not have any off-balance sheet arrangements** during the periods presented[168](index=168&type=chunk) [Critical Accounting Estimates](index=42&type=section&id=Critical%20Accounting%20Estimates) No material changes to critical accounting estimates were reported for the period compared to the 2024 Annual Report - **No material changes** to critical accounting estimates were reported for the period ended June 30, 2025, compared to the 2024 Annual Report[169](index=169&type=chunk) [Recent Accounting Pronouncements](index=42&type=section&id=Recent%20Accounting%20Pronouncements) Details on recent accounting pronouncements, adoption dates, and estimated effects are in Note 2 of the financial statements - Details on recent accounting pronouncements, their expected adoption dates, and estimated effects are available in **Note 2, 'Summary of Significant Accounting Policies'**[170](index=170&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) As a smaller reporting company, Tigo Energy, Inc. is exempt from providing market risk disclosures - As a **'smaller reporting company,'** Tigo Energy, Inc. is **exempt from providing quantitative and qualitative disclosures about market risk**[171](index=171&type=chunk) [Item 4. Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective as of June 30, 2025**[173](index=173&type=chunk) - **No material changes** in internal control over financial reporting occurred during the three months ended June 30, 2025[174](index=174&type=chunk) - Management acknowledges that control systems have **inherent limitations** and cannot prevent all errors or fraud, providing only **reasonable assurance**[175](index=175&type=chunk) [PART II. OTHER INFORMATION](index=44&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section includes legal proceedings, risk factors, equity sales, defaults, and other required disclosures [Item 1. Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) The company may face legal claims, but no material losses were recorded for the current period - The company may be involved in various legal claims and disputes, but **no material losses** were recorded for the current period[177](index=177&type=chunk) [Item 1A. Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) This section updates risk factors, including Nasdaq listing compliance, government subsidy changes, tax law changes, and trade tariffs - The company was notified by Nasdaq in April 2025 for **non-compliance with the Minimum Bid Price Requirement** but **regained compliance in June 2025**; however, **future compliance is not assured**[179](index=179&type=chunk)[180](index=180&type=chunk)[181](index=181&type=chunk) - The One Big Beautiful Bill Act (OBBB) **phases out the residential Investment Tax Credit (ITC) by December 31, 2025**, and imposes **new domestic content and Foreign Entity of Concern (FEOC) requirements** for commercial ITCs, potentially reducing demand for solar PV systems[185](index=185&type=chunk)[187](index=187&type=chunk)[195](index=195&type=chunk) - Changes in U.S. and foreign tax laws, including the OBBB and global initiatives like OECD's Pillar One and Pillar Two, could **materially affect the company's financial position and results of operations**[192](index=192&type=chunk)[195](index=195&type=chunk)[196](index=196&type=chunk) - **Escalating trade tensions and tariffs**, particularly between the U.S. and China, could **impact hardware component prices, product sales, and overall business operations**[198](index=198&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=52&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or use of proceeds were reported for the period - **No unregistered sales** of equity securities or use of proceeds were reported[199](index=199&type=chunk) [Item 3. Defaults Upon Senior Securities](index=52&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - **No defaults** upon senior securities were reported[200](index=200&type=chunk) [Item 4. Mine Safety Disclosures](index=52&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Mine Safety Disclosures are **not applicable** to the company[201](index=201&type=chunk) [Item 5. Other Information](index=52&type=section&id=Item%205.%20Other%20Information) No other information was required to be reported under this item - **No other information** was reported under this item[202](index=202&type=chunk) [Item 6. Exhibits](index=52&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including organizational documents and certifications - Exhibits include the **Second Amended and Restated Certificate of Incorporation**, **Amended and Restated Bylaws**, an **Office Lease**, and **certifications from the CEO and CFO**[203](index=203&type=chunk) [Signatures](index=53&type=section&id=Signatures) The report was signed by Tigo Energy, Inc.'s Chief Financial Officer, Bill Roeschlein, on August 5, 2025 - The report was signed by **Bill Roeschlein, Chief Financial Officer** of Tigo Energy, Inc., on **August 5, 2025**[209](index=209&type=chunk)

Group 1: Earnings Performance - Tigo Energy, Inc. reported a quarterly loss of $0.07 per share, better than the Zacks Consensus Estimate of a loss of $0.09, and improved from a loss of $0.19 per share a year ago, representing an earnings surprise of +22.22% [1] - The company posted revenues of $24.06 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 12.56%, compared to year-ago revenues of $12.7 million [2] - Over the last four quarters, Tigo Energy has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] Group 2: Stock Performance and Outlook - Tigo Energy shares have increased approximately 23.9% since the beginning of the year, outperforming the S&P 500's gain of 8.6% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is -$0.09 on revenues of $23.54 million, and for the current fiscal year, it is -$0.37 on revenues of $88.6 million [7] Group 3: Industry Context - The solar industry, to which Tigo Energy belongs, is currently ranked in the top 35% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 increased by 89.4% year-over-year to $24.1 million from $12.7 million in the prior year period, and sequentially increased by 27.7% [10][12] - Adjusted EBITDA for Q2 2025 was $1.1 million compared to an adjusted EBITDA loss of $6.4 million in the prior year period [12] - GAAP net loss for Q2 2025 was $4.4 million, a significant improvement from a net loss of $11.3 million in the prior year period [12] Business Line Data and Key Metrics Changes - MLPE revenue represented $20.6 million or 85.7% of total revenues, while Go ESS contributed $2.3 million or 9.4%, and PREDICT plus and licensing revenue accounted for $1.2 million or 4.9% [11] - Gross profit for Q2 2025 was $10.8 million, representing 44.7% of revenue, compared to a gross profit of $3.9 million or 30.4% in the comparable year-ago period [11][12] Market Data and Key Metrics Changes - EMEA region revenue was $18.3 million, accounting for 75.9% of total revenues, while Americas revenue was $4.6 million (19.1%) and APAC revenue was $1.2 million (5%) [10][11] - The company reported increased market share gains in key markets such as Germany, the Czech Republic, and Poland [6][40] Company Strategy and Development Direction - The company aims to maintain its growth trajectory and believes its value proposition remains strong despite market challenges [6][18] - Tigo Energy plans to increase capacity and replenish inventories in response to rising demand, with expectations for several new product announcements in the future [9][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth, citing a backlog and bookings that exceed Q2 revenue results [7][18] - The company anticipates a positive EBITDA for the year and expects revenues for Q3 2025 to range between $29 million and $31 million [17][30] Other Important Information - The company has largely resolved its excess inventory balance and is ramping up capacity with contract manufacturers [14] - Cash, cash equivalents, and marketable securities totaled $28 million at the end of Q2 2025, with a sequential increase of $7.7 million [14] Q&A Session Summary Question: Margin trends for Q3 and Q4, and outlook for 2026 - Management expects gross margins to remain in the low 40s for the remainder of the year, with a target model of 40% [21][22] Question: International and U.S. revenue split for Q2 and expectations for Q3 - U.S. revenue was 17% of total revenues for Q2, with 80% coming from international markets, primarily EMEA [24][25] Question: EBITDA outlook and potential for positive EBITDA by year-end - Management indicated that a positive EBITDA for the year is expected [30] Question: Strength in demand to offset potential U.S. market slowdown - Management believes there is enough strength in international markets to compensate for any U.S. market gaps [31][32] Question: Operating cost increases with improving revenues - Management plans to maintain operating expense discipline, with cash operating expenses expected to remain relatively flat [35] Question: Market share gains in key European markets - Management highlighted strong performance in Germany, the Czech Republic, and Poland, with significant market share gains [39][40]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) This section provides an overview of Tigo Energy's strong Q2 2025 financial performance, management's commentary on market share gains and profitability, and an updated full-year revenue outlook [Q2 2025 Performance Overview](index=1&type=section&id=Q2%202025%20Performance%20Overview) Tigo Energy reported strong unaudited Q2 2025 financial results, with revenue growing 27.7% sequentially and 89.4% year-over-year, exceeding company guidance, restoring adjusted EBITDA profitability, and raising full-year 2025 revenue outlook Q2 2025 Key Financial Metrics | Metric | Amount | YoY Growth | QoQ Growth | | :--- | :--- | :--- | :--- | | Revenue | $24.1 Million USD | 89.4% | 27.7% | | Net Loss | $4.4 Million USD | -60.9% | N/A | | Adjusted EBITDA | $1.1 Million USD | N/A (Turnaround to Profit) | N/A | | Cash, Cash Equivalents, and Marketable Securities | $28.0 Million USD | N/A | QoQ increase of $7.7 Million USD | | MLPE Shipments | 646 Thousand units (477 MW) | N/A | N/A | [Management Commentary](index=1&type=section&id=Management%20Commentary) Management expressed satisfaction with the company's sixth consecutive quarter of sequential revenue growth, market share gains, and restored adjusted EBITDA profitability, driven by strong EMEA growth and anticipated tariff mitigation from diversification, leading to an upward revision of the full-year 2025 revenue outlook based on current demand forecasts - The company achieved its sixth consecutive quarter of sequential revenue growth at **27.7%**, exceeding guidance and demonstrating market share gains in a challenging environment[4](index=4&type=chunk) - Q2 EMEA revenue showed strong growth, accounting for **76% of total revenue**, while US revenue remained flat but stable, representing **17% of total revenue**[4](index=4&type=chunk) - Cash balance increased by **$7.7 million** in Q2, with adjusted EBITDA profitability restored[4](index=4&type=chunk) - Based on current demand forecasts, the full-year 2025 revenue outlook was raised to **$100 million to $105 million**[4](index=4&type=chunk)[8](index=8&type=chunk) [Financial Results & Outlook](index=1&type=section&id=Financial%20Results%20%26%20Outlook) This section details Tigo Energy's Q2 2025 financial performance, highlighting significant revenue growth, improved profitability, and updated financial guidance for Q3 and the full year 2025 [Second Quarter 2025 Financial Performance](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Performance) Tigo Energy achieved significant revenue growth and improved profitability in Q2 2025, with a substantial increase in gross margin and flat operating expenses year-over-year, leading to a notable reduction in operating and net losses Q2 2025 Financial Performance (Year-over-Year) | Metric | Q2 2025 (Thousand USD) | Q2 2024 (Thousand USD) | Change (%) | | :-------------------- | :-------------------- | :-------------------- | :--------- | | Net Revenue | $24,055 | $12,701 | 89.4% | | Cost of Revenue | $13,292 | $8,834 | 50.5% | | Gross Profit | $10,763 | $3,867 | 178.3% | | Gross Margin | 44.7% | 30.4% | +14.3 pp | | Operating Expenses | $12,267 | $12,270 | -0.02% | | Operating Loss | $(1,504) | $(8,403) | -82.1% | | Net Loss | $(4,430) | $(11,321) | -60.9% | | Adjusted EBITDA | $1,081 | $(6,398) | N/A (Turnaround to Profit) | | Basic Loss Per Share | $(0.07) | $(0.19) | -63.2% | | Diluted Loss Per Share | $(0.07) | $(0.19) | -63.2% | [Financial Guidance and Outlook](index=2&type=section&id=Financial%20Guidance%20and%20Outlook) Tigo Energy provided optimistic Q3 2025 financial guidance, anticipating continued revenue growth and sustained adjusted EBITDA profitability, while raising its full-year 2025 revenue forecast, reflecting confidence in ongoing demand and operational improvements Q3 2025 Financial Guidance | Metric | Range | | :---------------- | :-------------------- | | Revenue | $29 Million USD to $31 Million USD | | Adjusted EBITDA | $2.0 Million USD to $4.0 Million USD | Full-Year 2025 Financial Outlook | Metric | Range | | :---------- | :-------------------- | | Revenue | $100 Million USD to $105 Million USD | - GAAP operating income for Q3 is expected to reach the upper end of the adjusted EBITDA guidance range[13](index=13&type=chunk) [Company Information & Investor Relations](index=2&type=section&id=Company%20Information%20%26%20Investor%20Relations) This section provides an overview of Tigo Energy's mission and product offerings, along with details on upcoming investor engagements and contact information [About Tigo Energy, Inc.](index=2&type=section&id=About%20Tigo%20Energy%2C%20Inc.) Founded in 2007, Tigo Energy is a global leader in intelligent solar hardware and software solutions, dedicated to enhancing safety, energy yield, and reducing operating costs for residential, commercial, and utility-scale solar systems, with a product portfolio including Flex MLPE, solar optimizers, cloud software, inverters, and battery storage systems - Tigo Energy, founded in **2007**, is a global leader in intelligent solar hardware and software solutions[12](index=12&type=chunk) - The company's products aim to enhance safety, increase energy yield, and reduce operating costs for residential, commercial, and utility-scale solar systems[12](index=12&type=chunk) - Key products include Flex MLPE (Module Level Power Electronics), solar optimizer technology, intelligent cloud software, and inverters and battery storage systems for the residential solar-plus-storage market[12](index=12&type=chunk) [Investor Relations](index=2&type=section&id=Investor%20Relations) Tigo Energy has scheduled a conference call to discuss Q2 2025 results and plans to participate in two investor conferences in September 2025 to enhance communication and engagement with investors - The company held a conference call on **July 29, 2025**, hosted by CEO Zvi Alon and CFO Bill Roeschlein, to discuss financial results[9](index=9&type=chunk) - Tigo Energy will participate in the following investor conferences: - Gateway Conference 2025: **September 3-4, 2025**, at the Four Seasons Hotel in San Francisco - H.C. Wainwright 27th Annual Global Investment Conference: **September 8-10, 2025**, at the Lotte New York Palace Hotel in New York[12](index=12&type=chunk) - Investor Relations contact: Ralf Esper, Gateway Group, Inc[22](index=22&type=chunk) [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents Tigo Energy's condensed consolidated balance sheets, statements of income, and cash flows, along with a reconciliation of GAAP to non-GAAP results [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, Tigo Energy's total assets increased to $80.645 million from $72.911 million on December 31, 2024, driven by higher short-term marketable securities and accounts receivable, while total liabilities also rose significantly due to a substantial increase in short-term debt Condensed Consolidated Balance Sheets (Selected Items, Thousand USD) | Item | June 30, 2025 | December 31, 2024 | | :------------------------------------ | :------------------ | :------------------ | | Total Assets | $80,645 | $72,911 | | Cash and Cash Equivalents | $10,212 | $11,746 | | Short-term Marketable Securities | $17,804 | $8,156 | | Accounts Receivable, Net | $10,395 | $7,976 | | Inventory | $18,927 | $21,997 | | Total Current Liabilities | $68,002 | $17,108 | | Short-term Debt, Net | $44,981 | $— | | Long-term Debt, Net | $— | $40,511 | | Total Liabilities | $78,953 | $64,526 | | Total Stockholders' Equity | $1,692 | $8,385 | [Condensed Consolidated Statement of Income](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Income) For the three months ended June 30, 2025, Tigo Energy reported substantial year-over-year growth in net revenue and gross profit, with a significant narrowing of net loss; for the six months ended the same date, the company also achieved strong revenue growth and halved its net loss Condensed Consolidated Statements of Income (Three Months Ended June 30, Thousand USD) | Metric | 2025 | 2024 | | :-------------------------- | :---------- | :---------- | | Net Revenue | $24,055 | $12,701 | | Gross Profit | $10,763 | $3,867 | | Total Operating Expenses | $12,267 | $12,270 | | Operating Loss | $(1,504) | $(8,403) | | Net Loss | $(4,430) | $(11,321) | | Basic Loss Per Share | $(0.07) | $(0.19) | Condensed Consolidated Statements of Income (Six Months Ended June 30, Thousand USD) | Metric | 2025 | 2024 | | :-------------------------- | :---------- | :---------- | | Net Revenue | $42,894 | $22,503 | | Gross Profit | $17,936 | $6,633 | | Total Operating Expenses | $23,417 | $24,124 | | Operating Loss | $(5,481) | $(17,491) | | Net Loss | $(11,431) | $(22,827) | | Basic Loss Per Share | $(0.18) | $(0.38) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, Tigo Energy generated positive cash flow from operating activities, a significant improvement year-over-year, while investing activities resulted in net cash outflow due to marketable securities purchases, and financing activities provided modest cash inflows Condensed Consolidated Statements of Cash Flows (Six Months Ended June 30, Thousand USD) | Activity | 2025 | 2024 | | :------------------------------------ | :---------- | :---------- | | Net Cash Provided by (Used in) Operating Activities | $7,242 | $(12,872) | | Net Cash Provided by (Used in) Investing Activities | $(9,643) | $23,350 | | Net Cash Provided by Financing Activities | $867 | $260 | | Net (Decrease) Increase in Cash | $(1,534) | $10,738 | | Cash and Cash Equivalents at End of Period | $10,212 | $15,143 | [Reconciliation of GAAP to Non-GAAP Results](index=8&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Results) The reconciliation table details adjustments from GAAP net loss to adjusted EBITDA, showing Tigo Energy achieved **$1.1 million** in adjusted EBITDA for Q2 2025, a significant improvement from a **$6.4 million** loss in Q2 2024, primarily by excluding net other expenses, income tax expense, depreciation and amortization, and stock-based compensation Reconciliation of GAAP Net Loss to Adjusted EBITDA (Three Months Ended June 30, Thousand USD) | Metric | 2025 | 2024 | | :-------------------------- | :---------- | :---------- | | Net Loss - (GAAP) | $(4,430) | $(11,321) | | Net Other Expenses | $2,768 | $2,902 | | Income Tax Expense | $158 | $16 | | Depreciation and Amortization | $285 | $302 | | Stock-Based Compensation | $2,300 | $1,703 | | Adjusted EBITDA (Loss) - (Non-GAAP) | $1,081 | $(6,398) | Reconciliation of GAAP Net Loss to Adjusted EBITDA (Six Months Ended June 30, Thousand USD) | Metric | 2025 | 2024 | | :-------------------------- | :---------- | :---------- | | Net Loss - (GAAP) | $(11,431) | $(22,827) | | Net Other Expenses | $5,496 | $5,320 | | Income Tax Expense | $454 | $16 | | Depreciation and Amortization | $642 | $612 | | Stock-Based Compensation | $3,876 | $4,208 | | Adjusted EBITDA (Loss) - (Non-GAAP) | $(963) | $(12,671) | [Legal & Non-GAAP Disclosures](index=3&type=section&id=Legal%20%26%20Non-GAAP%20Disclosures) This section outlines important cautionary statements regarding forward-looking information and clarifies the definition and use of non-GAAP financial measures [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This cautionary disclosure highlights that the press release contains forward-looking statements subject to significant business, economic, and competitive uncertainties, where actual results may differ materially from expectations due to factors such as capital requirements, market competition, macroeconomic conditions, and regulatory changes - Forward-looking statements are based on management's current beliefs and expectations, inherently subject to significant business, economic, and competitive uncertainties and contingencies that are difficult to predict and often beyond the company's control[14](index=14&type=chunk) - Actual results and timing of events may differ materially from anticipated results in forward-looking statements due to factors including, but not limited to, liquidity needs, product development and sales capabilities, industry competition, Nasdaq listing requirements, geopolitical and macroeconomic conditions, seasonal trends, government subsidies and incentives, trade tariffs, inventory management, and the ability to attract and retain talent[15](index=15&type=chunk) - Investors should exercise caution with forward-looking statements and not place undue reliance on them, as the company undertakes no intention or obligation to update any forward-looking statements due to new information, future developments, or otherwise[16](index=16&type=chunk) [Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Financial%20Measures) Tigo Energy utilizes adjusted EBITDA as a non-GAAP financial measure to supplement GAAP financial statements, defined as earnings (loss) before net interest and other expenses, income tax expense (benefit), depreciation and amortization, adjusted for stock-based compensation and M&A transaction-related expenses, used for internal decision-making and investor analysis to provide insights into core business operations, but not to be considered in isolation from GAAP results - The company uses adjusted EBITDA as a non-GAAP financial measure to supplement GAAP financial statements, not to be considered in isolation from or as a substitute for GAAP financial information[17](index=17&type=chunk) - Adjusted EBITDA is defined as earnings (loss) before net interest and other expenses, income tax expense (benefit), depreciation and amortization, adjusted for stock-based compensation and M&A transaction-related expenses[18](index=18&type=chunk) - This measure is used for financial and operational decision-making, period-over-period comparisons, and provides supplemental information on core business operating results, though excluded items may have a significant impact on financial results[18](index=18&type=chunk)[19](index=19&type=chunk)

Company Highlights - Tigo's TS4 Module-Level Power Electronics (MLPE) is designed to work with most inverters in the marketplace[12] - In 2024, 78% of Tigo's revenues came from outside the US[13] - Tigo's DC Optimizer market share grew from 9% in 2022 to 13% in 2023[14] - Tigo's GO ESS products comprised 6% of total revenues in 2024[15] - Tigo's EI Platform and AI-enabled Predict+ software solutions generate Annual Recurring Revenue (ARR) exceeding $1 million per year[15] Financial Performance - Tigo's fiscal year 2024 revenue was $54 million[18] - Tigo's Q1 2025 revenue was $18.8 million[18] - EMEA accounted for 61% of Q1 2025 revenues, Americas 25%, and Rest of World 14%[18, 86] - Tigo anticipates annual revenue between $85 million and $100 million for fiscal year 2025[74] Market Trends - The MLPE Optimizer market is expected to grow at a CAGR of 18% from 2020 to 2023 and 14% from 2024 to 2030[25]

Group 1: Company Performance - CSLM Acquisition Corp. (SPWR) has shown a year-to-date return of 3.9%, outperforming the average gain of 1.1% in the Oils-Energy group [4] - Over the past 90 days, the Zacks Consensus Estimate for SPWR's full-year earnings has increased by 129.6%, indicating improved analyst sentiment and a stronger earnings outlook [4] - In the Solar industry, which includes 16 companies, CSLM Acquisition Corp. ranks 179 in the Zacks Industry Rank and has outperformed the industry average gain of 2.5% this year [6] Group 2: Sector and Industry Context - The Oils-Energy group, which includes CSLM Acquisition Corp., is currently ranked 16 within the Zacks Sector Rank, which evaluates 16 different groups based on the average Zacks Rank of individual stocks [2] - Tigo Energy, Inc. (TYGO), another stock in the Oils-Energy sector, has achieved a year-to-date return of 26.9% and has a Zacks Rank of 2 (Buy) [5] - The Zacks Rank system focuses on earnings estimates and revisions to identify stocks with improving earnings outlooks, with a historical record of success in predicting market performance [3]

Tigo Energy (TYGO) Conference Summary Company Overview - Tigo Energy focuses on increasing energy yield, enhancing safety, and lowering operating costs for solar systems through modular level power electronics (MLPE) [1] - The company has a significant market share growth from 9% to 13% recently, indicating a strong competitive position [2] Industry Dynamics - The solar industry experienced a downturn in 2024 due to overordering, but is now recovering with a projected 18% CAGR from 2024 to 2030 [2][7] - Tigo Energy's revenue was $54 million in the last year, down from $145 million in 2023, but is expected to rebound to between $85 million and $100 million in 2025 [4][23] - The residential storage market is growing at 8% annually, with Tigo's market share increasing from 6% to 10% in Q1 2025 [29] Financial Performance - Tigo reported a 92% year-over-year growth for Q1 2025, with a revenue guidance of $85 million to $100 million [4][23] - The company faced challenges with inventory management, leading to a negative gross margin in 2024, but expects margins to remain healthy moving forward [24][25] - Tigo has been EBITDA positive in 2022 and 2023, with a goal to return to positive EBITDA in the second half of 2025 [26][39] Product Development and Market Position - Tigo's MLPE products represent nearly 90% of its business, with a strong patent portfolio of over 60 patents providing a competitive barrier [11][19] - The company is expanding its product line, including hybrid inverter battery solutions, to capture more market share [11][32] - Tigo's products are compatible with a wide range of inverters, differentiating it from competitors like SolarEdge [8][20] Geographic and Customer Distribution - 78% of Tigo's sales are outside the U.S., with significant revenue from the EMEA region, particularly Germany, the Netherlands, and the UK [3][27] - The customer base is primarily distributors, with no major customer concentration, ensuring a diversified revenue stream [27] Macro Environment and Challenges - Tigo is relatively insulated from U.S. tariffs, with only 5% of revenue affected, and is exploring options to source battery components outside of China [34][35] - The company is navigating a mixed regulatory environment, with potential changes to solar tax credits impacting market dynamics [36][38] Future Outlook - Tigo anticipates continued growth in the solar market, driven by declining solar costs and increasing electrification trends [10] - The company is committed to maintaining a competitive edge through ongoing R&D and product innovation [32][33]