TIGO ENERGY, INC. Q1 FY2025 earnings call

• Tigo ended the first quarter of 2025 with fifth consecutive sequential quarterly revenue growth, growing 9.1% sequentially and 92.2% year-over-year. Total revenue was $18.8 million, and 502,000 MLPE units (351 megawatts) were shipped.
• Introduced the 22A TS4-A series, serving panels up to 125 watts and part of the TS4 family with multifactor rapid shutdown.
• Approximately 5% of Q1 revenue was affected by China record tariffs of 145%, and ~15% by 10% tariffs on the rest of the world; working with supply chain partners to mitigate effects.
• First quarter gross profit was $7.2 million (38.1% of revenue), operating expenses declined 5.9%, operating loss decreased 56.2%, GAAP net loss was $7 million, and adjusted EBITDA loss decreased 67.4%.

In the first quarter of 2025, total revenue was $18.8 million. By product family, MLPE revenue was $16 million, representing 84.8% of total revenues. GO ESS revenue was $2 million (10.7% of total revenues), and Predict+ and licensing revenue was $0.8 million (4.5% of total revenues). By region, EMEA revenue was $11.5 million (61.3% of total revenues), Americas revenue was $4.7 million, and APAC revenue was $2.6 million (13.6% of total revenues). The company saw sequential revenue growth in EMEA, Americas, and APAC regions, with stronger results from Italy and the Netherlands in EMEA.

• For the second quarter of 2025, expected revenues range between $21 million and $23 million, and adjusted EBITDA range between negative $1.5 million and positive $500,000.
• For the full year of 2025, reiterating previous guidance of revenues between $85 million and $100 million.

• Risks related to tariffs, including potential impacts on revenue as a portion of Q1 revenue was affected by reciprocal tariffs. Also, general risks and uncertainties described in the company's press release and annual report, which could cause actual results to differ from forward-looking statements.

Q: Eric Stine asks about breaking down growth between current distributors and direct sales versus market share gains.

A: Zvi Alon states majority growth is from increased market share, with current distributors increasing footprint and direct sales to system integrators and EPCs paying dividends.

Q: Eric Stine asks about what attributes to market share gain.

A: Zvi Alon mentions small number of SKUs, highest power rating, backward compatibility, product working with any inverter, and quick installation time.

Q: Sameer Joshi asks about impact of tariffs going forward and demand for off-grid product.

A: Bill Roeschlein says tariffs don't have substantial impact for second quarter, and Zvi Alon mentions substantial demand in Midwest and South for off-grid solutions.

Q: Philip Shen asks about managing $50 million convert due in 2026 and demand for off-grid.

A: Zvi Alon says counterparty is flexible and working on refinance, and Zvi Alon mentions growing off-grid segment with success in specific regions.

Q: Unidentified Analyst asks about growth figures for Americas.

A: Bill Roeschlein says Americas growth is low to mid-single digits.