Tigo Energy, Inc. Q3 FY2025 earnings call

• The third quarter marked the seventh consecutive quarter of sequential revenue growth, with a 27% quarter-over-quarter growth and an 115% year-over-year growth. • The company returned to GAAP operating profitability and reported positive adjusted EBITDA for the quarter. • There was strong growth in the EMEA and Americas regions. In the U.S., sales grew by approximately 68% sequentially, driven by the sustained effort in the repower market. • The company announced a domestic manufacturing marketing partnership with EG4 Electronics in the U.S., which is expected to mitigate macro headwinds in the U.S. market and offer growth opportunities in 2026.

In the third quarter of 2025, total revenue was $30.6 million. By region, EMEA revenue was $21.6 million, accounting for 70.5% of total revenues; Americas revenue was $8 million, making up 26% of total revenues; and APAC revenue was $1.1 million, representing 3.5% of total revenues. By product family, MLPE revenue was $26.8 million, which was 87.5% of total revenues; GO ESS revenue was $3.1 million, constituting 10.3% of total revenues; and Predict+ and Licensing revenue was $0.7 million, making up 2.2% of total revenues.

• For the fourth quarter of 2025, the company expects revenues to range between $29 million and $31 million and adjusted EBITDA to range between $2 million and $4 million. • For the full year of 2025, the company anticipates revenue to be between $102.5 million and $104.5 million.

• Uncertainties regarding the timing of industry recovery. • Impact of tariffs on the business. • Inventory supply and its effect on customer shipments. • The company's ability to refinance its convertible debt prior to maturity and obtain acceptable funding for working capital needs.

Q: Eric Stine asked about the improvement in the U.S. market and early impressions of the partnership with EG4.

A: Zvi Alon stated that the company has seen significant success in the U.S. repower market and expects continued growth. The partnership with EG4 is expected to provide a competitive solution and offer significant growth opportunities in 2026.

Q: Philip Shen inquired about the initial output availability of the EG4 partnership and the volume of production from EG4 in 2026.

A: Zvi Alon said initial output is expected in the first quarter of 2026, and initially, the production capacity will be dedicated to EG4 but can be utilized beyond EG4.

Q: Philip Shen asked about the potential of repowering in other geographies and the margin outlook for 2026.

A: Zvi Alon mentioned that repowering is a global phenomenon and the company is confident in margin levels remaining steady.

Q: Amit Dayal asked about the drivers of the repowering trend and if it could expand to other geographies.

A: Zvi Alon explained that repowering is a purely financial decision by customers and is a global phenomenon.

Q: Amit Dayal asked about business development with the EG4 manufacturing setup.

A: Zvi Alon said the relationship leverages the strengths of both entities and uses existing channels.