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DATE
Tuesday, Oct. 28, 2025, at 4:30 p.m. ET
CALL PARTICIPANTS
- Chief Executive Officer — Zvi Alon
- Chief Financial Officer — Bill Roeschlein
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TAKEAWAYS
- Revenue -- $30.6 million for the third quarter ended September 30, 2025, representing a 115% increase from $14.2 million in the prior year period and a 27.3% sequential rise compared to the previous quarter.
- Geographic performance -- United States sales increased approximately 68% sequentially in fiscal Q3 2025 and became the single largest sales region on a country level in this period.
- EMEA and Americas revenue breakdown -- EMEA delivered $21.6 million (70.5% of total) in fiscal Q3 2025; Americas contributed $8 million (26%) in revenue. APAC reached $1.1 million (3.5%).
- Product family revenue -- MLPE accounted for $26.8 million (87.5%) in fiscal Q3 2025, ESS delivered $3.1 million (10.3%), and Predict Plus and licensing contributed $700,000 (2.2%).
- Gross profit -- $13.1 million or 42.7% margin for fiscal Q3 2025, compared to $1.8 million or 12.5% in the year-ago period.
- Operating profitability -- Achieved operating income of $600,000 for fiscal Q3 2025, reversing an operating loss of $10.4 million in the prior year period.
- Adjusted EBITDA -- $2.9 million adjusted EBITDA (non-GAAP) for fiscal Q3 2025, up 134.3% from a loss of $8.3 million in the prior year period.
- Convertible debt maturity -- $50 million principal on convertible debt due in early January 2026, with ongoing refinancing discussions but no binding agreement yet.
- Inventory -- Net inventory rose to $28.5 million for fiscal Q3 2025, a 50.8% sequential increase compared to last quarter.
- Cash position -- $40.3 million in cash, cash equivalents, and marketable securities as of September 30, 2025.
- ATM program activity -- Issued 6.5 million shares during fiscal Q3 2025 at an average price of $1.69, and subsequently issued 8.837 million shares post-quarter at an average of $2.61 per share.
- Q4 2025 outlook -- Revenue guidance of $29 million to $31 million for fiscal Q4 2025 and adjusted EBITDA (non-GAAP) forecast between $2 million and $4 million.
- Full-year 2025 guidance -- Anticipates revenue between $102.5 million and $104.5 million for fiscal 2025 (ending December 31, 2025).
- North America repowering initiative -- CEO Alon said, "North America results have been substantially impacted by the repowering," and expects continued momentum.
- EG4 partnership -- U.S. manufacturing with EG4 scheduled for shipment initiation in the first quarter of 2026, adding new production capacity focused initially on EG4 but intended for broader customer use.
- Gross margin stability expectation -- CEO Alon stated comfort with maintaining "40 plus percent".
SUMMARY
Tigo Energy (TYGO 10.92%) delivered its seventh consecutive quarter of sequential revenue growth as of fiscal Q3 2025, culminating in its return to operating profitability for the quarter. Management disclosed that U.S. repowering efforts and a new domestic production partnership with EG4 Electronics are expected to drive further growth opportunities and operational flexibility into 2026. While refinancing of sizable convertible debt remains incomplete, company guidance points to relatively flat revenue for fiscal Q4 2025, typically a slow quarter, underpinned by confidence in margin retention and the durability of repowering-driven demand.
- CEO Alon described the repowering trend as "purely financially driven," with no regulatory catalysts.
- The EG4 partnership will provide domestic content for U.S. installations, with shipments targeted to begin "early in Q1 or sometimes mid-Q1."
- Management highlighted the global potential of the repowering business model, expecting applicability beyond North America as more solar systems age.
- There was no expressed need for incremental salesforce investment for ramping the EG4-related U.S. production, as the collaboration leverages existing commercial channels.
INDUSTRY GLOSSARY
- MLPE (Module Level Power Electronics): Hardware installed at the solar panel level to optimize performance, enable monitoring, and provide rapid shutdown.
- Repowering: Upgrading or replacing equipment in existing solar installations to restore or enhance energy production typically without full system replacement.
- ESS (Energy Storage System): Integrated battery-based storage products used to capture and release electricity within solar-plus-storage installations.
- ATM program (At-the-market offering program): A financing vehicle allowing the company to issue new shares incrementally at prevailing market prices.
- 45X tax credit: A specific provision of the U.S. IRA law providing tax credits for qualified domestic content in clean energy equipment manufacturing.
Full Conference Call Transcript
Bill Roeschlein: Thank you, operator, and it is a pleasure to join you today. Also with us is Zvi Alon, CEO.
I would like to remind everyone that some of the matters we will discuss on this call, including our expected business outlook, our ability to increase our revenues and become profitable, and our overall long-term growth prospects, expectations regarding recovery in our industry, including the timing thereof, statements about our demand for our products, our competitive position, and market share, the impact of tariffs and our current and future inventory levels, charges and reserves and their impact on future financial results, statements about the recovery of the solar industry, inventory supply and its impact on our customer shipments, statements about our revenue and adjusted EBITDA for 2025, and our revenue for the full fiscal year of 2025, statements about our existing backlog and bookings, our ability to realize such benefits, statements about the anticipated benefits of our manufacturing and marketing partnership, as well as our ability to expand market share in the US through power market, our ability to obtain funding on our ability to refinance our convertible debt prior to maturity, that is acceptable to fund our working capital needs, our ability to penetrate new markets and investments in our product portfolio are all forward-looking statements.
These statements are subject to known and unknown risks and uncertainties, including but not limited to those factors described in today's press release and discussed in the Risk Factors section of our most recent annual report on Form 10-K and quarterly report on Form 10-Q for the fiscal quarter ended 09/30/2025, and other reports we may file with the SEC from time to time. These risks and uncertainties may cause actual results to differ materially from those expressed on this call. These forward-looking statements are made only as of the date when made. During our call today, we will reference certain non-GAAP financial measures.
We include non-GAAP to GAAP reconciliations in our press release furnished as an exhibit to our Form 8-K. The non-GAAP financial measures should not be considered as a substitute for or superior to the measures of financial performance prepared in accordance with GAAP. Finally, I would like to remind everyone that this conference call is being webcast, and a recording will be made available for replay on Tigo Energy, Inc.'s Investor Relations website at investors.tigoenergy.com. And with that, I would like to now turn the call over to our CEO, Zvi Alon.
Zvi Alon: Thank you, Bill. To begin today's discussion, I will highlight key areas in our recent financial and operational performance before turning the call over to our CFO, Bill Roeschlein. He will discuss our financial results for the third quarter in more depth as well as provide our guidance for 2025 and updated guidance for the full year of 2025. After that, I will share some closing remarks, tell you about our outlook, and then open the call for questions from the analysts. I am pleased to report that we ended the 2025 results with a seventh increase in sequential quarterly revenue growth. Quarter to quarter, we grew more than 27%, and on a year-over-year basis, we grew 115%.
We are pleased to see a return to growth similar to what we saw before the industry downturn and believe our top-line growth and market share gains are evident of the value that Tigo Energy, Inc. brings to the marketplace. Now to the numbers. In 2025, we reported total revenue of $30.6 million and shipped 795,000 units or 600 megawatts of MLPE. Importantly, we have also returned to GAAP operating profitability for the quarter, which we have guided towards the high end of our estimates on our last quarter call. And for the second time in a row, we are reporting positive adjusted EBITDA. I am exceptionally proud of what our team here at Tigo Energy, Inc. has accomplished.
To give some geographical color to our results, we saw strong growth in the EMEA and Americas region, which comprised 70.26% of our revenue. Noteworthy, we performed exceptionally well in the US, as sales grew by approximately 68% sequentially, making it our largest sales region this quarter on a country level. Contributing to this is our sustained effort in the US repower market, where we continue to make significant inroads in these areas. During the third quarter, we also announced a domestic manufacturing marketing partnership with EG4 Electronics in the US. This partnership will allow Tigo Energy, Inc. and EG4 to offer an ITC and domestic content bonus with the 45X tax credit for Tigo Energy, Inc. and EG4.
Although analysts expect weakness in the US market next year, we believe this partnership combined with our repower initiative may mitigate the macro headwinds and potentially provide significant growth opportunities for us in 2026. And with that, I will turn it over to Bill.
Bill Roeschlein: Thank you, Zvi. Turning now to our financial results for the third quarter ended 09/30/2025. Revenue for 2025 increased 115% to $30.6 million from $14.2 million in the prior year period. On a sequential basis, revenue increased 27.3% with improved results coming from many countries in the EMEA and Americas regions, including Italy, the United Kingdom, Czech Republic, and the United States. By region, EMEA revenue was $21.6 million, or 70.5% of total revenues. America's revenue was $8 million or 26% of total revenues. And APAC revenue was $1.1 million or 3.5% of total revenue. By product family, for 2025, MLPE revenue represented $26.8 million of revenue, or 87.5% of total revenues.
ESS represented $3.1 million or 10.3% of total revenues, and Predict Plus and licensing revenue represented $700,000 or 2.2% of total revenue during the quarter. Gross profit for 2025 was $13.1 million or 42.7% of revenue, compared to a gross profit of $1.8 million or 12.5% of revenue in the comparable year-ago period. Sales of OESF, which included reserved inventories, had a positive 1.5% gross margin impact during the quarter. Operating expenses for the third quarter increased 1.8% to $12.4 million compared to $12.2 million in the prior year period. The increase was driven primarily by higher sales and marketing costs in the quarter.
Operating income for the third quarter increased by 106.2% to $600,000 compared to an operating loss of $10.4 million in the prior year period. GAAP net loss for the third quarter was $2.2 million compared to a net loss of $13.1 million for the prior year period. And adjusted EBITDA in the third quarter increased 134.3% to $2.9 million compared to an adjusted EBITDA loss of $8.3 million in the prior year period. These results reflect both top-line growth and operating expense management. As a reminder, adjusted EBITDA is a non-GAAP measure that represents net loss as adjusted for interest and other expenses, income tax expense, depreciation, amortization, stock-based compensation, and M&A transaction expenses.
Primary shares outstanding were 69.5 million at the end of 2025. During the quarter, we issued 6.5 million shares from our ATM program for gross proceeds of $10.9 million, representing an average purchase price of $1.69 per share. Subsequent to quarter end, we completed the ATM program with the issuance of 8.837 million shares for gross proceeds of $2.2 million, representing an average purchase price of $2.61 per share. Now turning to the balance sheet. Accounts receivable net increased $5.4 million in the third quarter to $15.8 million compared to $10.4 million last quarter and $8 million in the year-ago comparable period.
Inventories net increased by $9.6 million or 50.8% to $28.5 million compared to $18.9 million last quarter and $46.8 million in the year-ago comparable period. Our inventory buildup comes as a result of activity that we are seeing in our business. Cash, cash equivalents, and short-term and long-term marketable securities totaled $40.3 million at 09/30/2025. Principal on our convertible debt due in early January 2026 is $50 million. We have been working diligently with certain financial parties regarding refinancing this debt, and we expect to complete this process in the fourth quarter.
While we have not entered into any binding agreements yet to complete the refinance, we further expect to utilize a combination of cash on hand and borrowing arrangements to fund our working capital needs as we continue to grow the business in 2026. Turning now to our financial outlook for 2025 and the full year 2025. As a reminder, Tigo Energy, Inc. provides quarterly guidance, and we believe these metrics to be key indicators for the overall performance of our business. For 2025, which traditionally is a seasonally slow quarter in our industry, we expect revenues in the fourth quarter to range between $29 million and $31 million.
We expect adjusted EBITDA in the fourth quarter ended 12/31/2025 to range between $2 million and $4 million. For the full year of 2025, we anticipate revenue to be between $102.5 million and $104.5 million. That completes my summary. I would like to now turn the call back over to Zvi for final remarks.
Zvi Alon: Thanks, Bill. As we look ahead, I am happy to say that even against the backdrop of economic uncertainty, we believe that our track record of seven consecutive quarters with top-line growth and disciplined expense management builds a strong foundation for profitable future growth. We firmly believe in the growth prospects of our business as we near the end of 2025 and look into 2026. With that, operator, please open the line for questions.
Operator: Thank you. As a reminder, to ask a question, please press 11 on your telephone and wait for your name to be announced. To withdraw your call, please press 11 again. Our first question is going to come from Eric Stine with Craig Hallum Capital Group.
Eric Stine: Hi, Zvi. Hi, Bill. So I am wondering if we could just dig in on the improvement that you are seeing in the US since that obviously was a highlight in the quarter. And then, you know, just curious, you have got this new arrangement with EG4. You know, what kind of early impressions you have, and what you think that potentially can become here as we get into fiscal 2026.
Zvi Alon: Let me start with the first question. On the improvements in North America, we, in the last couple of quarters, highlighted that we have identified a segment which is not very well served, and it is not necessarily new installations. It is the repowering of existing ones. It is a very large installed base, and we targeted it. We are very happy to say that it has been very successful. So we have seen a major increase in our revenue for North America, and we see a major continuation in the future. We have a unique solution that really is aiming at solving this problem.
In addition, we have seen a fairly nice inroad with the new installations and new storage to the point where we are actually getting close to the depletion of all the inventory we actually had before. So it is all very positive indications. In at least being able to address the growth in North America, unlike the general market, which is actually down. In Europe, since we are diversified, and needless to say, Germany is still a fairly big chunk of our business, but we see very good inroads in Italy, the UK, Czech Republic, which their diversification helps us quite a bit to actually eliminate some of the downside of some of the countries.
So in general, this strategy has been really working well for us in trying to avoid the biggest downfall or shortcoming of the market as the market is recovering. Now on the EG4 North America relationship and partnership. EG4 is a very well-known supplier that started with the off-grid and well beyond that. And we have had that relationship with them for quite some time, in complementing their inverters storage solutions with our MLPE. What we have announced is that together we will bring to the market a domestic content applicable solution which will be an optimized inverter solution that includes, obviously, the inverter and optimizers as well. And this progress is actually continuing as planned.
The early indication we provided when we just made the announcement was that we foresee an opportunity to start shipments early in Q1 or sometimes mid-Q1, and that has not changed so far. I believe that it will provide a significant increase in our footprint to new installations with that partnership and really providing a very competitive solution in the optimized inverter market.
Eric Stine: Got it. That is helpful. And then maybe, you know, just sticking with part of that answer. When you talk about repowering, I mean, I would assume the open architecture setup of your optimizer is important. Going after that market opportunity and just competitively. I mean, what do you think that means in terms of how you stack up against others who may be looking at repowering as well?
Zvi Alon: So you are absolutely 100% correct. The open architecture is really very well positioned to address any repowering capability. But in addition, we have a very strong inverter solution that is also an open system and can work with pretty much any old installation in the market and can be easily adjusted with the power requirements to whatever power needs of that one specific system is. And that is really very unique. So the combination of these two is what is really very unique in the market. Needless to say, it also benefits from the fact that it is very easy to install. It pretty much is 100% compatible with all the other components that you have in the system.
So you do not need to replace the whole system. And provide all those benefits to the installer and to the owners of those systems.
Eric Stine: Okay. Thank you.
Zvi Alon: Welcome.
Operator: And the next question will come from Philip Shen with Roth Capital. Your line is open.
Philip Shen: Hey, guys. I wanted to get some more clarity on the EG4 partnership. Sorry if I missed it because I am navigating a couple of calls at the same time. But do you expect your initial output to be available? Thanks.
Zvi Alon: So as we have indicated before, and I just repeated it, Philip, we are targeting Q1 shipment, which will be sometimes in Q1, middle to the second part, but we do not have the specific date. But we have a fairly good indication as to the potential for us next year, and it is significant.
Philip Shen: Great. So how much of your overall volume production could come from EG4 for 2026? I mean, could it be half, or do you think it is maybe a third?
Zvi Alon: So in the US, it is a brand new production capacity for us. So it would initially be the majority for EG4, but we plan to actually utilize it also beyond EG4 as well. And so the initial production capacity will be really dedicated to the EG4 relationship. But it is a brand new line, which we are just in the final stages of getting it up and running.
Philip Shen: Okay. So this is additional capacity which we did not have before. It is not replacing an existing one. We are adding capacity.
Zvi Alon: Right.
Philip Shen: And do you think you could use this US EG4 facility to ship units to Europe or elsewhere in the world?
Zvi Alon: You are absolutely 100% correct. Yes. And we do plan to get the utilization we can, as you can imagine.
Philip Shen: Right. Okay. Great. Thanks. Shifting over, I know you have not provided any guidance for 2026. But I wanted to see if we could get a sense of what you are looking for. From a seasonality standpoint, would you expect Q1 to be similar to a past Q1? Maybe which one might be a useful comparison? And then what kind of growth could we see in '26 year over year or maybe sequential growth? However, you think you can describe the '26 outlook in a way that makes you feel comfortable but can give the market color would be fantastic. Thanks.
Zvi Alon: Thank you. So you are absolutely right. We did not provide the guidance for '26 yet. We will do it early in Q1 as we traditionally have been doing it at the beginning of the year. But I was trying to communicate that as you can see in Q3 and some of the guidance we provided to Q4, which normally is a down quarter, we actually provided guidance to a flat quarter. Not down. And we feel fairly strong about the outcome and where we are.
I do not want to vary too much specificity, but I can tell you we are very comfortable with that guidance that we just provided, which gives us a very good indication as to how we get into 2026. So we do believe it is going to be a good field for us. And we will provide a bit more guidance as to the specificity, as I said, in early Q1. As far as seasonality, normally, as you know, Q4 and Q1 are a little bit slow, but Q3 and Q2 are actually on the upside. And we have been demonstrating it also this year. So we do believe that we will see a very similar behavior in the market.
I will tell you that we are happy with the results of the repowering in the North America market. And that has no seasonality at all. And so that is a little bit more comforting, and it might actually provide some more stability for us in North America as we move through the year.
Philip Shen: Right. Okay. Interesting. And from a margin standpoint, as we get through '26, do you also feel very comfortable with the current levels, you know, call it 40 plus percent to remain steady through '26?
Zvi Alon: Absolutely. Absolutely, sir. Yes.
Philip Shen: Great. Great. So that is good. And then one last one, I will pass it on. You just mentioned the repowering initiative. Can you share what percentage of the market might be repowering, what percentage of your revenue could be repowering for next year?
Zvi Alon: I am not sure I am ready to actually share this number. But I can tell you in Q3, the North America results have been substantially impacted by the repowering. And that has demonstrated for us the depth and strength. So, obviously, as we move into 2026, we believe it is going to gain much more momentum and can be much more significant.
Philip Shen: So the boost in the North America business really was substantially positively impacted by the repowering efforts.
Zvi Alon: It was a very strong addition. Yes. Absolutely.
Philip Shen: Great. Great. Okay. So that momentum can continue through Q4 and then through '26 as well.
Zvi Alon: Correct. And I will tell you, it does not suffer from the problems of the new installations that the whole market is going through, including us. Because when you do the repowering, it is installations that you have, and they do not quite work and operate, and you really have no choice but to repower.
Philip Shen: Okay. Great. Thank you. I will pass it on.
Zvi Alon: Most welcome. Thank you, Philip.
Operator: And the next question comes from Amit Dayal with H.C. Wainwright. Your line is open.
Amit Dayal: Thank you. Good afternoon, everyone, and congrats on another strong quarter. Zvi, just touching on your last comments, I am just trying to get a better understanding of what is driving the repowering trend here in the US. Is this more market-driven, or is there any regulatory element that is also supporting some of this repowering-related sales improvements?
Zvi Alon: Hi, Amit. Thanks for the question. So to be very, very clear and to the point and focus, there is no regulation or government or anything that is impacting it. It is purely financially driven. Customers are installed in systems that are aging, and they do not perform anymore. And they did benefit from the solar installations they did and want to continue. And they have no choice. Either to rip it apart and start from scratch, which is very expensive, or to repower. So it is just a ready-made problem that is looking for a solution, and we have identified it.
And aimed at this market, and we have a solution which is superior and is not relying on any benefits from any local government or any changes at all. It is a purely financial decision by the owners of those systems.
Amit Dayal: Understood. Thank you for that. That is really helpful. And do you get similar efficiencies from the post-repower setup that you might have had before, or are there even more improvements after?
Zvi Alon: Actually, there are more improvements because most of those aging systems have been suffering from a reduction in performance before they actually broke or were about to break. And so, yes, there is an uptick in performance for those. And in some cases, this is not yet a big phenomenon, but in some cases, customers opt to also add storage to the system. So that is an additional source that potentially is available for us.
Amit Dayal: Interesting. And then this repowering trend could begin in other geographies for you in the future also, it looks like?
Zvi Alon: That is absolutely correct. We started focusing here in the US, and it seems to be working for us well. But this phenomenon is a global phenomenon. And many of the systems are aging. They are seven, eight, nine, ten years old plus. And in many cases, you cannot get replacement parts. You just have no choice. So it is a problem that has been created over time, and now it is coming to fruition. And it is a ready-made market, basically.
Amit Dayal: Understood. Thank you for that. Just one last one for me. You have the EG4 sort of manufacturing setup here in the US now. What is happening on the business development side, Zvi, to sort of take advantage of this? Are you making any investments in sales teams over here or any other partnerships you may be looking to capitalize on the manufacturing setup you have over here now?
Zvi Alon: The beauty of this relationship is such that it is relying on the strengths of the two entities. EG4 is a very good brand in a specific market which is doing well and growing nicely. And the Tigo Energy, Inc. MLPE optimization has been growing and very well known in our space. And so the combination of them does not require any additional new sales or marketing activities. It is utilizing the existing channels we have. And that is the beauty of the relationship.
Amit Dayal: Okay. Understood. That is all I have, guys. Thank you so much.
Operator: At this time, this concludes our question and answer session. I would like to turn the call back over to Mr. Alon for closing remarks.
Zvi Alon: Thanks again, everyone, for joining us today. I especially want to thank our dedicated employees for their ongoing contributions as well as our customers and partners for their continued hard work. I also want to thank our investors for their continued support.
Operator: Thank you for joining us today for Tigo Energy, Inc.'s Third Quarter 2025 Earnings Conference Call. You may now disconnect.