First Quarter Highlights and Recent Developments
- Awarded 1GW agreement for 1P trackers from new customer with a leading global company offtaker
- First quarter revenue of
$17.3 million - Profitability metrics (ex-warrant gain) within target ranges
- Leadership transition announced with Board Member
Anthony Carroll appointed CEO
Leadership Transition
Board Member
"We are excited to welcome Anthony in this new capacity, at what we believe is a critical inflection point for the business," said
“Yann Brandt stepped into
First Quarter Results
Total first-quarter revenue was
GAAP?gross loss was
Summary Financial Performance: Q1 2026 compared to Q1 2025
| Non-GAAP(b) | ||||||||||||||||
| Three months ended | ||||||||||||||||
| (in thousands, except per share data) | 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Revenue | $ | 17,265 | $ | 20,803 | $ | 17,265 | $ | 20,803 | ||||||||
| Gross margin percentage | (7.1 | %) | (16.6 | %) | (2.2 | %) | (14.4 | %) | ||||||||
| Total operating expenses | $ | 10,831 | $ | 7,113 | $ | 7,843 | $ | 6,645 | ||||||||
| Loss from operations(a) | $ | (12,058 | ) | $ | (10,560 | ) | $ | (8,220 | ) | $ | (9,750 | ) | ||||
| Net income (loss) | $ | 32,599 | $ | (3,819 | ) | $ | (10,460 | ) | $ | (10,801 | ) | |||||
| Diluted loss per share | $ | (0.72 | ) | $ | (0.58 | ) | $ | (0.67 | ) | $ | (0.84 | ) | ||||
(a) Adjusted EBITDA for Non-GAAP
(b) See below for reconciliation of Non-GAAP financial measures to the nearest comparable GAAP measures
GAAP operating expenses were
GAAP net income was
The contracted portion of the company's backlog2 now stands at approximately
Subsequent Events
In addition to its financial results, the company announced that it has received a new award for 1 gigawatt of trackers for multiple project sites in the
Outlook
The company continues to expect the first quarter to represent the low point in revenue for the year, with sequential quarterly growth for the remainder of 2026. With recent new wins and visibility, the company also has increasing confidence that full-year revenue will outpace the market in 2026 and represent growth of approximately 40% relative to 2025.
| (in millions) | 1Q'26 Guidance | 1Q'26 Actual | 2Q'26 Guidance(3) | |||||
| Revenue | ||||||||
| Non-GAAP Gross Profit (Loss) | ||||||||
| Non-GAAP Gross Margin | (2.5%) – 9.2% | (2.2%) | (6.4%) – 4.0% | |||||
| Non-GAAP operating expenses | ||||||||
| Non-GAAP adjusted EBITDA | ||||||||
First Quarter 2026 Earnings Conference Call
FTC Solar’s senior management will host a conference call for members of the investment community at
About
Founded in 2017 by a group of renewable energy industry veterans,
Footnotes
1. A reconciliation of the prior sequential quarter Non-GAAP financial measures to the nearest comparable GAAP measures is shown below:
| (in thousands) | Three months ended 2025 | |||
| Net loss per | $ | (36,390 | ) | |
| Reconciling items - | ||||
| Provision for income taxes | 188 | |||
| Interest expense | 4,775 | |||
| Interest income | (6 | ) | ||
| Depreciation expense | 384 | |||
| Amortization credit | (6 | ) | ||
| Stock-based compensation | 2,617 | |||
| Bargain purchase gain | (377 | ) | ||
| Loss from change in fair value of warrant liability | 26,388 | |||
| CEO transition | 135 | |||
| Special stockholders' meeting | 17 | |||
| Non-GAAP Adjusted EBITDA | $ | (2,275 | ) | |
2. The term ‘backlog’ or ‘contracted and awarded’ refers to the combination of our executed contracts (contracted) and awarded orders (awarded), which are orders that have been documented and signed through a contract, where we are in the process of documenting a contract but for which a contract has not yet been signed, or that have been awarded in writing or verbally with a mutual understanding that the order will be contracted in the future. In the case of certain projects, including those that are scheduled for delivery on later dates, we have not locked in binding pricing with customers, and we instead use estimated average selling price to calculate the revenue included in our contracted and awarded orders for such projects. Actual revenue for these projects could differ once contracts with binding pricing are executed, and there is also a risk that a contract may never be executed for an awarded but uncontracted project, or that a contract may be executed for an awarded but uncontracted project at a date that is later than anticipated, or that a contract once executed may be subsequently amended, supplemented, rescinded, cancelled or breached, including in a manner that impacts the timing and amounts of payments due thereunder, thus reducing anticipated revenues. Please refer to our
3. We do not provide a quantitative reconciliation of our forward-looking Non-GAAP guidance measures to the most directly comparable GAAP financial measures because certain information needed to reconcile those measures is not available without unreasonable efforts due to the inherent difficulty in forecasting and quantifying these measures as a result of changes in project schedules by our customers that may occur, which are outside of our control, and the impact, if any, of credit loss provisions, asset impairment charges, restructuring or changes in the timing and level of indirect or overhead spending, as well as other matters, that could occur which could significantly impact the related GAAP financial measures.
Forward-Looking Statements
This press release contains forward looking statements. These statements are not historical facts but rather are based on our current expectations and projections regarding our business, operations and other factors relating thereto. Words such as “may,” “will,” “could,” “would,” “should,” “anticipate,” “predict,” “potential,” “continue,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates” and similar expressions are used to identify these forward-looking statements. These statements are only predictions and as such are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict, including, without limitation, the risks and uncertainties described in more detail above and in our filings with the U.S. Securities and Exchange Commission, including the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”), our Quarterly Reports on Form 10-Q, and other documents, including Current Reports on Form 8-K, that we have filed, or will file, with the
FTC Solar Investor Contact:
Vice President, Investor Relations
T: (737) 241-8618
E: IR@FTCSolar.com
Condensed Consolidated Statements of Comprehensive Results of Operations (unaudited) | ||||||||
| Three months ended | ||||||||
| (in thousands, except shares and per share data) | 2026 | 2025 | ||||||
| Revenue: | ||||||||
| Product | $ | 11,762 | $ | 18,202 | ||||
| Service | 5,503 | 2,601 | ||||||
| Total revenue | 17,265 | 20,803 | ||||||
| Cost of revenue: | ||||||||
| Product | 13,808 | 20,111 | ||||||
| Service | 4,684 | 4,139 | ||||||
| Total cost of revenue | 18,492 | 24,250 | ||||||
| Gross loss | (1,227 | ) | (3,447 | ) | ||||
| Operating expenses | ||||||||
| Research and development | 1,118 | 924 | ||||||
| Selling and marketing | 1,715 | 1,136 | ||||||
| General and administrative | 7,998 | 5,053 | ||||||
| Total operating expenses | 10,831 | 7,113 | ||||||
| Loss from operations | (12,058 | ) | (10,560 | ) | ||||
| Interest expense | (3,896 | ) | (711 | ) | ||||
| Interest income | 5 | 6 | ||||||
| Gain from disposal of investment in unconsolidated subsidiary | — | 3,204 | ||||||
| Gain from change in fair value of warrant liability | 48,742 | 4,604 | ||||||
| Other income, net | 1 | 4 | ||||||
| Loss from unconsolidated subsidiary | — | (112 | ) | |||||
| Income (loss) before income taxes | 32,794 | (3,565 | ) | |||||
| Provision for income taxes | (195 | ) | (254 | ) | ||||
| Net income (loss) | 32,599 | (3,819 | ) | |||||
| Other comprehensive income: | ||||||||
| Foreign currency translation adjustments | 99 | 28 | ||||||
| Comprehensive income (loss) | $ | 32,698 | $ | (3,791 | ) | |||
| Net income (loss) per share: | ||||||||
| Basic | $ | 2.09 | $ | (0.30 | ) | |||
| Diluted | $ | (0.72 | ) | $ | (0.58 | ) | ||
| Weighted-average common shares outstanding: | ||||||||
| Basic | 15,568,299 | 12,888,695 | ||||||
| Diluted | 22,396,369 | 14,588,972 | ||||||
Condensed Consolidated Balance Sheets (unaudited) | ||||||||
| (in thousands, except shares and per share data) | 2026 | 2025 | ||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 5,639 | $ | 21,105 | ||||
| Accounts receivable, net of allowance for credit losses of | 56,388 | 55,743 | ||||||
| Inventories | 9,425 | 9,627 | ||||||
| Prepaid and other current assets | 12,371 | 11,294 | ||||||
| Total current assets | 83,823 | 97,769 | ||||||
| Operating lease right-of-use assets | 868 | 983 | ||||||
| Property and equipment, net | 3,721 | 3,793 | ||||||
| 7,527 | 7,444 | |||||||
| Other assets | 1,910 | 1,823 | ||||||
| Total assets | $ | 97,849 | $ | 111,812 | ||||
| LIABILITIES AND STOCKHOLDERS' DEFICIT | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 11,615 | $ | 13,247 | ||||
| Short-term debt | 9,711 | 12,681 | ||||||
| Accrued expenses | 26,441 | 23,770 | ||||||
| Income taxes payable | 445 | 630 | ||||||
| Deferred revenue | 4,833 | 7,172 | ||||||
| Other current liabilities | 10,401 | 10,725 | ||||||
| Total current liabilities | 63,446 | 68,225 | ||||||
| Long-term debt | 12,887 | 9,921 | ||||||
| Operating lease liability, net of current portion | 436 | 553 | ||||||
| Deferred income taxes | 178 | — | ||||||
| Warrant liability | 25,773 | 74,515 | ||||||
| Other non-current liabilities | 1,278 | 1,556 | ||||||
| Total liabilities | 103,998 | 154,770 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ deficit | ||||||||
| Preferred stock par value of | — | — | ||||||
| Common stock par value of | 2 | 2 | ||||||
| — | — | |||||||
| Additional paid-in capital | 388,759 | 384,648 | ||||||
| Accumulated other comprehensive loss | (191 | ) | (290 | ) | ||||
| Accumulated deficit | (394,719 | ) | (427,318 | ) | ||||
| Total stockholders’ deficit | (6,149 | ) | (42,958 | ) | ||||
| Total liabilities and stockholders’ deficit | $ | 97,849 | $ | 111,812 | ||||
Condensed Consolidated Statements of Cash Flows (unaudited) | ||||||||
| Three months ended | ||||||||
| (in thousands) | 2026 | 2025 | ||||||
| Cash flows from operating activities | ||||||||
| Net income (loss) | $ | 32,599 | $ | (3,819 | ) | |||
| Adjustments to reconcile net income (loss) to cash used in operating activities: | ||||||||
| Stock-based compensation | 3,337 | 280 | ||||||
| Depreciation and amortization | 365 | 302 | ||||||
| Gain from change in fair value of warrant liability | (48,742 | ) | (4,604 | ) | ||||
| Gain from sale of property and equipment | — | (3 | ) | |||||
| Amortization of debt discount and issue costs | 2,197 | 210 | ||||||
| Paid-in-kind non-cash interest | 1,001 | 492 | ||||||
| Provision for obsolete and slow-moving inventory | 194 | — | ||||||
| Loss from unconsolidated subsidiary | — | 112 | ||||||
| Gain from disposal of investment in unconsolidated subsidiary | — | (3,204 | ) | |||||
| Warranties issued and remediation added | 438 | 1,045 | ||||||
| Warranty recoverable from manufacturer | 122 | 80 | ||||||
| Credit loss provisions (credits) | 2 | (92 | ) | |||||
| Deferred income taxes | 178 | 426 | ||||||
| Lease expense | 256 | 327 | ||||||
| Impact on cash from changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (647 | ) | (4,437 | ) | ||||
| Inventories | 8 | 3,316 | ||||||
| Prepaid and other current assets | (1,111 | ) | 918 | |||||
| Other assets | (185 | ) | (216 | ) | ||||
| Accounts payable | (1,635 | ) | 1,688 | |||||
| Accruals and other current liabilities | 1,858 | 2,539 | ||||||
| Deferred revenue | (2,339 | ) | (3,069 | ) | ||||
| Other non-current liabilities | (396 | ) | (415 | ) | ||||
| Lease payments and other, net | (272 | ) | (359 | ) | ||||
| Net cash used in operations | (12,772 | ) | (8,483 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment | (276 | ) | (83 | ) | ||||
| Proceeds from sale of property and equipment | — | 3 | ||||||
| Proceeds from disposal of investment in unconsolidated subsidiary | — | 3,204 | ||||||
| Net cash (used in) provided by investing activities | (276 | ) | 3,124 | |||||
| Cash flows from financing activities: | ||||||||
| Repayments of borrowings | (3,033 | ) | — | |||||
| Proceeds from sale of common stock | 805 | — | ||||||
| Stock offering costs paid | (21 | ) | — | |||||
| Financing costs paid | (170 | ) | — | |||||
| Proceeds from stock option exercises | — | 3 | ||||||
| Net cash (used in) provided by financing activities | (2,419 | ) | 3 | |||||
| Effect of exchange rate changes on cash and cash equivalents | 1 | 18 | ||||||
| Decrease in cash and cash equivalents | (15,466 | ) | (5,338 | ) | ||||
| Cash and cash equivalents at beginning of period | 21,105 | 11,247 | ||||||
| Cash and cash equivalents at end of period | $ | 5,639 | $ | 5,909 | ||||
Notes to Reconciliations of Non-GAAP Financial Measures to Nearest Comparable GAAP Measures
We utilize Adjusted EBITDA, Adjusted Net Loss, and Adjusted EPS as supplemental measures of our performance. We define Adjusted EBITDA as net income (loss) plus (i) provision for (benefit from) income taxes, (ii) interest expense, less interest income, (iii) depreciation expense, (iv) amortization expense, (v) stock-based compensation, (vi) loss from changes in the fair value of our warrant liability, and (vii) Chief Executive Officer ("CEO") transition costs, non-routine legal fees, costs associated with our reverse stock split, severance and certain other costs (credits). We also deduct (i) the contingent gains arising from earnout payments and project escrow releases relating to the disposal of our investment in an unconsolidated subsidiary, and (ii) gains from changes in the fair value of our warrant liability from net income or loss in arriving at Adjusted EBITDA. We define Adjusted Net Loss as net income (loss) plus (i) amortization of debt discount and issue costs and intangibles, (ii) stock-based compensation, (iii) loss from changes in the fair value of our warrant liability, (iv) CEO transition costs, non-routine legal fees, costs associated with our reverse stock split, severance and certain other costs (credits), and (v) the income tax expense (benefit) of those adjustments, if any. We also deduct (i) the contingent gains arising from earnout payments and project escrow releases relating to the disposal of our investment in an unconsolidated subsidiary, and (ii) gains from changes in the fair value of our warrant liability from net income (loss) in arriving at Adjusted Net Loss. Adjusted EPS is defined as Adjusted Net Loss on a per share basis using our weighted average diluted shares outstanding.
Non-GAAP gross profit (loss), Non-GAAP operating expense, Adjusted EBITDA, Adjusted Net Loss and Adjusted EPS are intended as supplemental measures of performance that are neither required by, nor presented in accordance with,
Non-GAAP gross profit (loss), Non-GAAP operating expense, Adjusted EBITDA, Adjusted Net Loss and Adjusted EPS should not be considered in isolation or as substitutes for performance measures calculated in accordance with GAAP, and you should not rely on any single financial measure to evaluate our business. These Non-GAAP financial measures, when presented, are reconciled to the most closely applicable GAAP measure as disclosed below.
The following table reconciles Non-GAAP gross loss to the most closely related GAAP measure for the three months ended
| Three months ended | ||||||||
| (in thousands, except percentages) | 2026 | 2025 | ||||||
| $ | 17,265 | $ | 20,803 | |||||
| $ | (1,227 | ) | $ | (3,447 | ) | |||
| Depreciation expense | 190 | 173 | ||||||
| Amortization expense | 14 | — | ||||||
| Stock-based compensation | 645 | 243 | ||||||
| Severance costs | — | 34 | ||||||
| Non-GAAP gross loss | $ | (378 | ) | $ | (2,997 | ) | ||
| Non-GAAP gross margin percentage | (2.2 | %) | (14.4 | %) | ||||
The following table reconciles Non-GAAP operating expenses to the most closely related GAAP measure for the three months ended
| Three months ended | ||||||||
| (in thousands) | 2026 | 2025 | ||||||
| $ | 10,831 | $ | 7,113 | |||||
| Depreciation expense | (161 | ) | (129 | ) | ||||
| Stock-based compensation | (2,692 | ) | (37 | ) | ||||
| CEO transition | (135 | ) | (160 | ) | ||||
| Reverse stock split | — | (1 | ) | |||||
| Severance costs | — | (141 | ) | |||||
| Non-GAAP operating expenses | $ | 7,843 | $ | 6,645 | ||||
The following table reconciles Non-GAAP Adjusted EBITDA to the related GAAP measure of loss from operations for the three months ended
| Three months ended | ||||||||
| (in thousands) | 2026 | 2025 | ||||||
| $ | (12,058 | ) | $ | (10,560 | ) | |||
| Depreciation expense | 351 | 302 | ||||||
| Amortization expense | 14 | — | ||||||
| Stock-based compensation | 3,337 | 280 | ||||||
| CEO transition | 135 | 160 | ||||||
| Reverse stock split | — | 1 | ||||||
| Severance costs | — | 175 | ||||||
| Other income, net | 1 | 4 | ||||||
| Loss from unconsolidated subsidiary | — | (112 | ) | |||||
| Adjusted EBITDA | $ | (8,220 | ) | $ | (9,750 | ) | ||
The following table reconciles Non-GAAP Adjusted EBITDA and Adjusted Net Loss to the related GAAP measure of net income (loss) for the three months ended
| Three months ended | ||||||||||||||||
| 2026 | 2025 | |||||||||||||||
| (in thousands, except shares and per share data) | Adjusted EBITDA | Adjusted Net Loss | Adjusted EBITDA | Adjusted Net Loss | ||||||||||||
| Net income (loss) per | $ | 32,599 | $ | 32,599 | $ | (3,819 | ) | $ | (3,819 | ) | ||||||
| Reconciling items - | ||||||||||||||||
| Provision for income taxes | 195 | — | 254 | — | ||||||||||||
| Interest expense | 3,896 | — | 711 | — | ||||||||||||
| Interest income | (5 | ) | — | (6 | ) | — | ||||||||||
| Amortization of debt discount and issue costs in interest expense | — | 2,197 | — | 210 | ||||||||||||
| Depreciation expense | 351 | — | 302 | — | ||||||||||||
| Amortization expense | 14 | 14 | — | — | ||||||||||||
| Stock-based compensation | 3,337 | 3,337 | 280 | 280 | ||||||||||||
| Gain from disposal of investment in unconsolidated subsidiary(a) | — | — | (3,204 | ) | (3,204 | ) | ||||||||||
| Gain from change in fair value of warrant liability(b) | (48,742 | ) | (48,742 | ) | (4,604 | ) | (4,604 | ) | ||||||||
| CEO transition(c) | 135 | 135 | 160 | 160 | ||||||||||||
| Reverse stock split(d) | — | — | 1 | 1 | ||||||||||||
| Severance costs(e) | — | — | 175 | 175 | ||||||||||||
| Adjusted Non-GAAP amounts | $ | (8,220 | ) | $ | (10,460 | ) | $ | (9,750 | ) | $ | (10,801 | ) | ||||
| Adjusted Non-GAAP net loss per share (Adjusted EPS): | ||||||||||||||||
| Basic and diluted | N/A | $ | (0.67 | ) | N/A | $ | (0.84 | ) | ||||||||
| Weighted-average common shares outstanding: | ||||||||||||||||
| Basic and diluted | N/A | 15,568,299 | N/A | 12,888,695 | ||||||||||||
| (a) | We exclude the gain from collections of contingent contractual amounts arising from the sale in 2021 of our investment in an unconsolidated subsidiary as these amounts are not considered part of our normal ongoing operations. The payment received in 2025 was the final contingent payment owed. |
| (b) | We exclude non-cash changes in the fair value of our outstanding warrants as we do not consider such changes to impact or reflect changes in our core operating performance. |
| (c) | In connection with hiring a new CEO in |
| (d) | We incurred certain professional fees in 2025 to finalize various administrative tasks associated with the Reverse Stock Split that was consummated effective |
| (e) | Severance costs were incurred during 2025, due to restructuring changes that involuntarily impacted a number of employees, in order to adjust our operations to reflect current market and activity levels and to take advantage of process efficiencies gained. |
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/37459344-00b6-482f-b800-1e7ae6d53ea9
Anthony Carroll
