Tigo Energy(TYGO) - 2025 Q2 - Quarterly Results

Executive Summary & Highlights 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 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 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] - 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] - Cash balance increased by $7.7 million in Q2, with adjusted EBITDA profitability restored[4] - Based on current demand forecasts, the full-year 2025 revenue outlook was raised to $100 million to $105 million[4][8] Financial Results & Outlook 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 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 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] Company Information & Investor Relations 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. 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] - The company's products aim to enhance safety, increase energy yield, and reduce operating costs for residential, commercial, and utility-scale solar systems[12] - 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] Investor Relations 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] - 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] - Investor Relations contact: Ralf Esper, Gateway Group, Inc[22] Condensed Consolidated Financial Statements 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 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 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 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 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 This section outlines important cautionary statements regarding forward-looking information and clarifies the definition and use of non-GAAP financial measures Forward-Looking Statements 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] - 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] - 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] Non-GAAP Financial Measures 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] - 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] - 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][19]