Tigo Energy, Inc. earnings

Management highlights

- Business update: Strong start to 2026 despite seasonality, with EMEA showing seasonally stronger performance, America's region having higher year-over-year but lower quarterly results, and APAC having growth in certain areas like Australia. Highlighted growth catalysts include partnership with EG4, new GO ESS batteries, and positive activity in large-scale utility deals. - Financial results discussion: Revenue for Q1 2026 increased 33.7% to $25.2 million, gross profit improved due to absence of warranty-related charges, operating expenses increased mainly due to bad debt expense, and non-GAAP measures provided additional insight.

Guidance

For the second quarter of 2026, revenues are expected to range between $30 million and $32 million, and adjusted EBITDA is expected to range between $1 million and $3 million. For the full year of 2026, revenues are expected to range between $130 million and $135 million.

Segment performance

In the first quarter of 2026, total revenue was $25.2 million, a 33.7% increase compared to the first quarter of 2025. By region, EMEA comprised 69.5% of revenue with $17.5 million, America's region was 20.9% with $5.3 million, and APAC was 9.6% with $2.4 million. By product family, MLPE represented 82.4% of total revenues with $20.8 million, GOESS was 15.8% with $4 million, and PredictPlus was 1.8% with $0.5 million. Gross profit for the first quarter was $10.8 million or 42.8% of revenue, up from $7.2 million or 38.1% in the prior year period. Operating expenses increased to $13.2 million, with operating loss of $4 million, net loss of $1.8 million, and non-GAAP net loss of $0.1 million.

Risks & headwinds

Risks include known and unknown factors such as those described in the press release and risk factors section of the most recent annual report on Form 10-K, including geopolitical developments, impact of tariffs, inventory supply and its impact on customer shipments, and risks related to forward-looking statements causing actual results to differ materially.

Analyst Q&A

• Q: Potential for EU to ban Chinese inverters and impact on business.

  A: Aware of the change starting last year, countries banning Chinese controlled devices, sees it as positive for market share, optimizers doing well in market.

• Q: Mix of revenue from EMEA and outlook.

  A: Historically 65-70% from EMEA, US picking up steam with repower initiative and new solutions, expecting EMEA share to be less by year end, strong in Italy, UK expanding, and Eastern Europe opportunities.

• Q: Repowering success and impact.

  A: Repowering more than doubled, 20% of 2025, unique hybrid inverter fits well, GO-ESS battery hybrid inverter and EG4 partnership expected to drive US growth.

• Q: Utility-scale solar opportunity.

  A: Increase in activity in utility scale, momentum in PredictPlus and optimization, large project in Spain operational, pipeline of similar-sized projects.

• Q: EU market improvement and timing.

  A: Saw improvement in second part of Q1, Q2 showing growth, Europe showing good signs with market share gain and Eastern Europe expansion.

• Q: Utility scale impact on 2026.

  A: Increase in utility footprint is in 2026, deals getting to decision point, confident in having something to talk about this year.

• Q: Go ESS opportunity and traction.

  A: Expect Go ESS to be widely accepted, meets customer needs in US and Europe, expecting positive momentum in 2026.

• Q: Inventory and supply chain.

  A: Inventory down as part of running capital at optimal level, 8-week factory to customer supply chain, no major hurdles, can scale up quickly for utility wins.

• Q: Operating expenses outlook.

  A: Trend in $12.5 to $13 million range for rest of the year, demonstrating leverageability in operating model