FTC Solar (FTCI -5.16%), a provider of solar tracking systems and software for utility-scale solar projects, released its results on August 5, 2025. The report showed strong revenue growth of 74.9% year over year to $20.0 million (GAAP), but this figure fell short of analyst expectations of $21.1 million. Non‑GAAP earnings per share (EPS) registered a loss of $(0.86), also missing the consensus Non-GAAP EPS estimate of $(0.80). Despite tight cost controls and a multi-year low in operating expenses, negative margins and deep net losses persisted. Overall, the quarter demonstrated rising customer traction and advances in technology, but highlighted ongoing struggles to reach profitability, as reflected in continued Adjusted EBITDA losses and the impact of regulatory uncertainty on project timelines.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $(0.86) | $(0.80) | $(0.85) | (1.2%) |
| Revenue (GAAP) | $20.0 million | $21.13 million | $11.4 million | 75.4% |
| Revenue vs. Guidance Midpoint (Non-GAAP) | N/A | |||
| Gross Margin (Non-GAAP) | (17.4%) | (16.8%) | (0.6) pp | |
| Adjusted EBITDA (Non-GAAP) | $(10.4) million | $(10.5) million | -1.0% |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Business Overview and Strategic Focus
FTC Solar (FTCI -5.16%) designs and supplies solar tracking systems, structural components that rotate solar panels to face the sun, and develops accompanying software platforms for better energy output and site management. The company’s offerings include both hardware, such as its Voyager and Pioneer trackers, and software like its SunOps performance tool.
Recent priorities for the business have centered on technological upgrades—including new model releases with weather adaptation features, remote controls, and advanced tracking angles. Success in the industry hinges on keeping up with fast-changing customer requirements and policy environments, expanding market share, and maintaining a competitive cost structure. The company’s ability to manage operational efficiency, supply chain reliability, and regulatory changes also plays a pivotal role.
Quarterly Performance: Key Developments and Data
During Q2 2025, the company’s revenue (GAAP) grew to $20.0 million, marking a 74.9% jump from the same period last year. Product revenue contributed approximately 79.4% of total revenue (GAAP), up sharply compared to the prior-year quarter. Service revenue, which includes installation support and monitoring, increased 55.5% from Q2 2024 to $4.1 million (GAAP).
Despite the impressive revenue progress, GAAP gross margin remained significantly negative at (19.6%). Non-GAAP gross margin was (17.4%) compared to (16.8%) in Q2 2024, reflecting an ongoing trend observed over recent quarters.
Operating expenses fell 21% from Q2 2024 to $6.5 million (Non-GAAP), described by management as a multi-year low. This reduction resulted from ongoing cost-efficiency efforts.
The contracted backlog shrank by roughly 2.5% from the previous disclosure to around $470 million. Management attributed this decline partly to regulatory uncertainties causing delays in customer project planning and order conversions in recent months, but project timing has slipped as customers await regulatory clarity and potentially favorable policy decisions.
Product launches included an extra-long solar tracker tailored for new 2,000-volt electrical systems, which can increase power capacity and reduce eBOS and O&M costs. The platform supports stow angles—how much the panels tilt for protection—up to 80 degrees, which is the widest range currently marketed. Software innovation also featured prominently, with enhancements to the SunOps platform, allowing for greater site customization and remote weather event responses. These upgrades cater to evolving insurance and customer requirements for asset management and resilience.
Operational priorities extended to balance sheet management, as cash and equivalents (GAAP) dropped to $3.5 million at quarter end, down from $11.2 million at December 31, 2024. To boost liquidity and support further business scaling, the company disclosed a new $75 million strategic financing facility in July 2025, with $14.3 million funded in July 2025 and the remainder of an initial $37.5 million tranche expected to close in Q3 2025, pending shareholder approval. The financing package, which includes equity-linked warrants, introduces the potential for shareholder dilution, but offers crucial runway as the business pursues profitability goals.
Management reported continued progress in supply chain optimization and inventory management. Inventory balances (GAAP) retreated to $7.3 million at June 30, 2025 from $10.1 million at December 31, 2024. though negative gross margins (GAAP gross margin was -19.6%) highlight deep profitability challenges yet to be solved.
FTCI does not currently pay a dividend.
Outlook: Guidance and What to Watch Ahead
For Q3 2025, management provided revenue guidance in the range of $18.0 million to $24.0 million. Adjusted EBITDA (non-GAAP) is anticipated between a loss of $(10.8) million and $(6.8) million. Most notably, the company projected it could reach break-even or even positive territory for non-GAAP gross margin at the high end of the guidance range—something it has not achieved in previous periods. This would mark a key operational milestone if realized.
The company also stated it expects a more significant ramp in revenue during Q4 2025. Monitoring revenue growth, gross margin trend, backlog evolution, and the effects of the new financing package are important as regulatory headwinds and project delays remain in play.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
