FTC Solar, Inc. Q3 FY2025 earnings call

• Third quarter revenue and adjusted EBITDA both exceeded the high end of guidance ranges, with adjusted EBITDA at the highest levels in five years. - Continued to improve positioning, strengthen balance sheet, enhance daily execution, and innovate products. - Optimized global supply chain, increased capabilities at Alpha Steel facility, engaged early with customers, and optimized product roadmap. - 1P Pioneer tracker secured purchase orders, added to dozens of approved vendor lists. - Product has fast installation speeds, strong constructability with innovative components. - Expanded product line to meet customer needs, including solutions for high wind zones, module type compatibility, etc. - Entered into a 1-gigawatt agreement with Livona, and pipeline expanded in US and internationally.

Third quarter revenue was $26 million, above the high end of the guidance range. GAAP gross profit was $1.6 million (6.1% of revenue), while non-GAAP gross profit was $2 million (7.7% of revenue). GAAP operating expenses were $9.3 million, and non-GAAP operating expenses were $8 million. GAAP net loss was $23.9 million ($1.61 per diluted share), while adjusted EBITDA loss was $4 million. The company strengthened the balance sheet by closing a $37 million term loan financing. Additionally, FTC Solar acquired a 55% interest in Alpha Steel, which was modestly profitable in the third quarter.

• Fourth quarter revenue guidance: $30 million to $35 million. - Non-GAAP gross profit guidance: $3.8 million to $8.2 million (12.7% - 23.4% of revenue). - Non-GAAP operating expenses guidance: $8.2 million to $9 million. - Adjusted EBITDA guidance: Loss of $5.4 million to breakeven. - 2026 expected to continue growth trajectory, with more detail to be provided in future calls.

• Uncertainties in regulatory and legislative front, including ITC 45X and tariff adjustments, which pushed some expected new business to the right. - Warrant fair value changes impact GAAP financials but excluded from adjusted EBITDA.

Q: Congrats on the strong quarter. Wondering if you could share more about the booking with Livona and international bookings?

A: Livona is indicative of working with certain clientele and helping developers maneuver the process. Internationally, making progress, e.g., a 100-plus megawatt project in Australia.

Q: $37.5 million remaining in financing facility, any plans to draw down?

A: Focused on business, facility helpful in commercial efforts but continuing to focus on execution.

Q: Impact of historical ownership structure of Alpha Steel and FIAC rules?

A: Good housekeeping, creates additional lever for operating the site, frees up certainty for market regarding Alpha Steel ownership.

Q: Tariff impact and competitiveness in difficult terrain?

A: Tariffs create pressure on project-level CapEx, passed through to customers. Competitively, top of pile loads are significantly less than peers, focus on installation time and constructability.