Tigo Energy, Inc. Q4 FY2025 earnings call

Key Points from Zvi Alon - 2025 ended with strong quarter despite industry seasonally slower periods. - Achieved $103.5 million in annual revenue with 91.7% y-o-y growth. - Fourth quarter shipped 744,000 of 567 megawatts of MLPE, with optimizer unit volume outgrowing main competitor. - Geographical results: EMEA and Americas had sequential growth, APAC renewed growth. - Growth drivers in 2026: U.S. domestic contract manufacturing, repower initiatives, new GO battery; EMEA and APAC benefit from competitors reducing footprint; robust pipeline of new product introductions. - Eliminated $50 million convertible promissory note ahead of maturity. ### Key Points from Bill Roeschlein - Reminded of inventory reserve charges in prior year quarter. - Fourth quarter gross profit $13.4 million (44.5% of revenue) vs gross loss $12.6 million (-72.7% of revenue) in prior year. - Operating expenses increased 13% to $13 million. - Operating income increased to $0.3 million vs operating loss $24.1 million in prior year. - GAAP net income $11.7 million vs net loss $26.8 million in prior year. - Adjusted EBITDA $2.7 million vs adjusted EBITDA loss $22.1 million in prior year. - Balance sheet: Accounts receivable net decreased, inventories net increased, cash, cash equivalents and marketable securities totaled $7.7 million with $50 million convertible note repaid. Announced registered direct offering of 5 million shares at $3 per share.

For the fourth quarter of 2025, revenue increased 73.8% to $30 million from $17.3 million in the prior year period. By region, EMEA revenue was $18.1 million (60.3% of total revenues), Americas revenue was $9.2 million (30.8% of total revenues), and APAC revenue was $2.7 million (8.9% of total revenues). By product family, MLPE revenue was $26.9 million (89.7% of total revenues), GO ESS was $2.2 million (7.4% of total revenues), and Predict+ and Licensing revenue was $0.9 million (2.9% of total revenues). For the full year 2025, revenue was $103.5 million, representing a 91.7% year-over-year growth.

First Quarter 2026 - Revenues expected to range between $25 million and $27 million. - Adjusted EBITDA expected to range between negative $1 million and positive $1 million. ### Full Year 2026 - Revenues expected to grow between 26% and 30% and range between $130 million and $135 million.

Matters discussed are forward-looking and subject to known and unknown risks and uncertainties, including those in the annual report on Form 10-K and other SEC filings, which could cause actual results to differ materially from those expressed on the call.

Q: On the last call, you referred to potentially substantial growth opportunities not included in current guidance. Confirm and rank growth drivers for 2026.

A: EG4 relationship has potential large upside, with initial deliveries in May, benefit in Q2 and full in Q3; GO battery to impact revenues; repower opportunities play well into battery opportunity.

Q: With respect to EG4 commentary, is EG4 upside more likely to come through in the second half of the year?

A: Initial deliveries begin in May, so benefit in Q2 and full in Q3.

Q: With the financing, do you have working capital to pursue more aggressive growth in 2027?

A: We're in good shape on balance sheet, debt-free, with flexibility to pursue initiatives.

Q: Can you talk about the energy efficiency of the new storage system and parasitic loss relative to competition?

A: It provides a modern technology platform and is exceeding competitors, with consistent 11.4 kilowatt hour output.

Q: Was there any previously written off inventory sold in the quarter?

A: Yes, had about a 3 percentage point impact on margins.

Q: Thinking about margins going forward, should we think about gross margins hanging in there around 40% or maybe high 30s?

A: Target model is 40%, and we're running above that, aiming to maintain 40%.