FTC Solar, Inc.

Q2 revenue was $26.2 million, slightly above the high end of the target range, up 51.5% sequentially and up 30.8% from the year-earlier quarter. GAAP gross loss was $2.2 million, or 8.5% of revenue, versus $1.2 million, or 7.1%, in Q1; non-GAAP gross loss was $1.3 million, or 5.1% of revenue, versus $0.4 million, or 2.2% in Q1 and $3.5 million in the year-ago quarter. GAAP operating expenses were $11.5 million; non-GAAP operating expenses were $8.5 million, and adjusted EBITDA loss was $9.8 million. GAAP net loss was $27.1 million, or $1.69 per diluted share, compared with income of $32.6 million in Q1 and a net loss of $15.4 million, or $1.18 per diluted share, in the prior-year quarter. Cash ended Q2 at about $11.2 million, below the $15 million unrestricted cash covenant, and the company also missed the minimum direct margin covenant; lenders provided a Q2 waiver, and FTC Solar subsequently established an ELOC with a maximum value of $20 million. For Q3, the company guided revenue to $30 million-$35 million, non-GAAP gross profit to between negative $0.9 million and positive $1.8 million, non-GAAP operating expenses to $7.7 million-$8.3 million, and adjusted EBITDA loss to $9.3 million-$6.0 million. Management reiterated full-year 2026 revenue growth of at least 40% and expects sequential growth for the rest of the year.

Anthony Carroll’s message was centered on execution and expansion. He said the company has now built the product, approvals, and customer access needed to scale its 1P tracker platform, and emphasized wins with top EPCs and developers, including a 400-megawatt PO and a first 1P project with a former 2P customer. His tone was upbeat and confident, but he also acknowledged the need to convert a larger pipeline into more bookings and to continue improving margins and efficiency.

Cathy Behnen focused on the quarter’s financial performance and near-term liquidity. She highlighted Q2 revenue of $26.2 million, non-GAAP gross loss of $1.3 million, non-GAAP operating expenses of $8.5 million, and adjusted EBITDA loss of $9.8 million. She also flagged the balance sheet issues: cash of about $11.2 million, a miss on the $15 million unrestricted cash covenant and the minimum direct margin covenant, Q2 waivers from lenders, and the establishment of a $20 million ELOC to support liquidity alongside working capital initiatives.

Analysts focused on covenant compliance, the timing of bookings versus revenue, gross margin improvement, and working capital. Management said the lender waiver was specifically for Q2 and that it expects to keep working with lenders, while also noting the debt was not callable. On conversion timing, Anthony said the current backlog and project lead times make the second-half coverage of more than 80% a strong indicator, and he pointed to a roughly 20-week lead time in the tracker business. In response to margin questions, management said gross margins should improve with scale, larger Tier 1 projects, supply-chain agreements, and internal efficiency programs, with some benefits expected to show up in Q4.