FTC Solar Announces Second Quarter 2025 Financial Results
FTC Solar (Nasdaq: FTCI) reported Q2 2025 financial results with revenue of $20.0 million, up 74.9% year-over-year. The company secured a strategic $75 million financing facility with Cleanhill Partners and others, with an initial $14.3 million funded on July 2, 2025.
Key financial metrics include a GAAP net loss of $15.4 million ($1.18 per share) and reduced operating expenses at $7.6 million. The company's contracted backlog stands at $470 million. Management changes include Tony Alvarez's appointment as Independent Director, replacing Dean Priddy who retired from the Board.
For Q3 2025, FTC Solar expects revenue to increase approximately 5% quarter-over-quarter with a more significant ramp in Q4. The company continues to enhance its product portfolio with new features including an 80-degree stow angle and a new tracker for 2,000-volt systems.
FTC Solar (Nasdaq: FTCI) ha comunicato i risultati finanziari del secondo trimestre 2025 con un fatturato di 20,0 milioni di dollari, in crescita del 74,9% rispetto allo stesso periodo dell'anno precedente. L'azienda ha ottenuto una linea di credito strategica di 75 milioni di dollari da Cleanhill Partners e altri investitori, con un primo finanziamento di 14,3 milioni di dollari erogato il 2 luglio 2025.
I principali indicatori finanziari mostrano una perdita netta GAAP di 15,4 milioni di dollari (1,18 dollari per azione) e una riduzione delle spese operative a 7,6 milioni di dollari. Il portafoglio ordini contrattualizzato ammonta a 470 milioni di dollari. Tra i cambiamenti nel management, Tony Alvarez è stato nominato Direttore Indipendente, sostituendo Dean Priddy che si è ritirato dal Consiglio di Amministrazione.
Per il terzo trimestre 2025, FTC Solar prevede un aumento dei ricavi di circa il 5% rispetto al trimestre precedente, con una crescita più significativa nel quarto trimestre. L'azienda continua a migliorare il proprio portafoglio prodotti con nuove funzionalità, tra cui un angolo di stoccaggio di 80 gradi e un nuovo inseguitore per sistemi a 2.000 volt.
FTC Solar (Nasdaq: FTCI) informó los resultados financieros del segundo trimestre de 2025 con ingresos de 20,0 millones de dólares, un aumento del 74,9% interanual. La compañía aseguró una línea de financiamiento estratégica de 75 millones de dólares con Cleanhill Partners y otros, con un desembolso inicial de 14,3 millones de dólares el 2 de julio de 2025.
Los principales indicadores financieros incluyen una pérdida neta GAAP de 15,4 millones de dólares (1,18 dólares por acción) y gastos operativos reducidos a 7,6 millones de dólares. La cartera de pedidos contratada asciende a 470 millones de dólares. Entre los cambios en la dirección, Tony Alvarez fue nombrado Director Independiente, reemplazando a Dean Priddy, quien se retiró del consejo.
Para el tercer trimestre de 2025, FTC Solar espera que los ingresos aumenten aproximadamente un 5% trimestre a trimestre, con un crecimiento más significativo en el cuarto trimestre. La empresa continúa mejorando su portafolio de productos con nuevas características, incluyendo un ángulo de reposo de 80 grados y un nuevo seguidor para sistemas de 2.000 voltios.
FTC Solar (나스닥: FTCI)는 2025년 2분기 재무 실적을 발표했으며 매출은 2,000만 달러로 전년 동기 대비 74.9% 증가했습니다. 회사는 Cleanhill Partners 등과 함께 전략적 7,500만 달러 금융 시설을 확보했으며, 2025년 7월 2일에 초기 자금 1,430만 달러가 조달되었습니다.
주요 재무 지표로는 GAAP 기준 순손실이 1,540만 달러(주당 1.18달러)이고, 영업비용은 760만 달러로 감소했습니다. 회사의 계약된 수주 잔고는 4억 7,000만 달러입니다. 경영진 변화로는 토니 알바레즈가 독립 이사로 임명되어 은퇴한 딘 프리디를 대신했습니다.
2025년 3분기에는 FTC Solar가 전분기 대비 약 5% 매출 증가를 예상하며 4분기에는 더 큰 성장세를 기대하고 있습니다. 회사는 80도 보관 각도와 2,000볼트 시스템용 신규 트래커 등 새로운 기능으로 제품 포트폴리오를 계속 강화하고 있습니다.
FTC Solar (Nasdaq : FTCI) a publié ses résultats financiers du deuxième trimestre 2025 avec un chiffre d'affaires de 20,0 millions de dollars, en hausse de 74,9 % par rapport à l'année précédente. La société a obtenu une facilité de financement stratégique de 75 millions de dollars auprès de Cleanhill Partners et d'autres, avec un premier décaissement de 14,3 millions de dollars le 2 juillet 2025.
Les principaux indicateurs financiers montrent une perte nette selon les normes GAAP de 15,4 millions de dollars (1,18 dollar par action) et des dépenses d'exploitation réduites à 7,6 millions de dollars. Le carnet de commandes contractuel s'élève à 470 millions de dollars. Parmi les changements de direction, Tony Alvarez a été nommé administrateur indépendant, en remplacement de Dean Priddy, qui a pris sa retraite du conseil d'administration.
Pour le troisième trimestre 2025, FTC Solar prévoit une augmentation du chiffre d'affaires d'environ 5 % d'un trimestre à l'autre, avec une montée en puissance plus marquée au quatrième trimestre. La société continue d'améliorer son portefeuille de produits avec de nouvelles fonctionnalités, notamment un angle de repli de 80 degrés et un nouveau suiveur pour les systèmes de 2 000 volts.
FTC Solar (Nasdaq: FTCI) meldete die Finanzergebnisse für das zweite Quartal 2025 mit einem Umsatz von 20,0 Millionen US-Dollar, was einem Anstieg von 74,9 % gegenüber dem Vorjahr entspricht. Das Unternehmen sicherte sich eine strategische 75-Millionen-Dollar-Finanzierung mit Cleanhill Partners und anderen, wobei am 2. Juli 2025 eine erste Tranche von 14,3 Millionen US-Dollar ausgezahlt wurde.
Wichtige Finanzkennzahlen umfassen einen GAAP-Nettogewinn von -15,4 Millionen US-Dollar (1,18 US-Dollar pro Aktie) und reduzierte Betriebskosten von 7,6 Millionen US-Dollar. Der vertraglich gesicherte Auftragsbestand beläuft sich auf 470 Millionen US-Dollar. Im Management gab es Änderungen: Tony Alvarez wurde als unabhängiger Direktor ernannt und ersetzt Dean Priddy, der aus dem Vorstand ausgeschieden ist.
Für das dritte Quartal 2025 erwartet FTC Solar einen Umsatzanstieg von etwa 5 % gegenüber dem Vorquartal mit einem stärkeren Anstieg im vierten Quartal. Das Unternehmen erweitert weiterhin sein Produktportfolio mit neuen Funktionen, darunter ein 80-Grad-Stellwinkel und ein neuer Tracker für 2.000-Volt-Systeme.
- Secured $75 million strategic financing facility providing runway to profitability
- Revenue increased 74.9% year-over-year to $20.0 million
- Operating expenses reduced to multi-year low at $7.6 million
- Strong contracted backlog of $470 million
- Cost efficiency improvements and enhanced product features
- GAAP net loss increased to $15.4 million from $12.2 million year-over-year
- Negative gross margin of -19.6%
- Quarter-over-quarter revenue decline of 3.9%
- Regulatory uncertainty slowing customer project planning
Insights
FTC Solar shows revenue growth but continued losses; $75M financing provides runway amid persistent negative margins.
FTC Solar's Q2 2025 results present a mixed financial picture with some concerning fundamentals. Revenue reached
The most critical development is the new
The
The company's commentary about adding multiple gigawatts of business with Tier 1 accounts is encouraging, but the regulatory uncertainty slowing customer project planning remains a headwind. The leadership transition, with Tony Alvarez replacing Dean Priddy on the board, brings valuable solar industry expertise that could help with strategic positioning but also represents organizational change during a critical period.
Second Quarter Highlights and Recent Developments
- Second quarter revenue of
$20.0 million , up74.9% y/y, within target guidance - Cost efficiencies drive operating expenses to multi-year low
- Secured
$75 million strategic financing facility, effective July 2, 2025 - Tony Alvarez appointed as Independent Director as Dean Priddy retires from the Board
AUSTIN, Texas, Aug. 05, 2025 (GLOBE NEWSWIRE) -- FTC Solar, Inc. (Nasdaq: FTCI), a leading provider of solar tracker systems, today announced financial results for the second quarter that ended June 30, 2025.
“Second quarter results were in-line with our guidance ranges, with continued cost controls allowing for Adjusted EBITDA to come in at the high-end of the range”, commented Yann Brandt, President and Chief Executive Officer of FTC Solar. “As we approach my one-year anniversary with FTC Solar, I believe we are in a much stronger position than just a year ago, with the company making great strides in enhancing its product, market and financial position. Over the past year we have added multiple gigawatts of business with Tier 1 accounts, along with other awards, strengthened our sales team, and increased our commercial traction with bids on many gigawatts of future projects. The most significant of our recent announcements was the
“On the product front, we believe we have the most easily constructible tracker on the market and are continuously adding new features to enhance the value proposition for customers. In addition to high-wind and multiple terrain following options to reduce or eliminate land grading, we are introducing the widest range of stow in the industry, with our 80-degree angle. Hail has become a key driver of insurance premiums, so having a steeper stow capability can give owners and operators additional flexibility in meeting the unique requirements of their project. When combined with our SunOps performance platform, with integrated weather forecast services, customers can have even more flexibility to customize preferences or make changes remotely.
“One other innovation we’re announcing today is an extra-long tracker built specifically for 2,000-volt systems. As the industry prepares to make this transition, longer trackers can reduce eBOS and O&M costs while increasing power capacity by
| Summary Financial Performance: Q2 2025 compared to Q2 2024 | ||||||||||||||||
| U.S. GAAP | Non-GAAP(c) | |||||||||||||||
| Three months ended June 30, | ||||||||||||||||
| (in thousands, except per share data) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Revenue | $ | 19,993 | $ | 11,430 | $ | 19,993 | $ | 11,430 | ||||||||
| Gross margin percentage | (19.6 | %) | (20.5 | %) | (17.4 | %) | (16.8 | %) | ||||||||
| Total operating expenses | $ | 7,580 | $ | 9,581 | $ | 6,544 | $ | 8,278 | ||||||||
| Loss from operations(a) | $ | (11,499 | ) | $ | (11,924 | ) | $ | (10,360 | ) | $ | (10,451 | ) | ||||
| Net loss | $ | (15,430 | ) | $ | (12,241 | ) | $ | (11,213 | ) | $ | (10,730 | ) | ||||
| Diluted loss per share(b) | $ | (1.18 | ) | $ | (0.97 | ) | $ | (0.86 | ) | $ | (0.85 | ) | ||||
(a) Adjusted EBITDA for Non-GAAP
(b) Prior year amounts per share have been revised to reflect the 1-for-10 reverse stock split, effective November 29, 2024
(c) See below for reconciliation of Non-GAAP financial measures to the nearest comparable GAAP measures
“Overall, while regulatory uncertainty has slowed some customer project planning in recent months, the company continues to make great strides in enhancing its product, market and financial positioning, and remains increasingly well-positioned to support our customers and their growth,” Brandt concluded.
Second Quarter Results
Total second-quarter revenue was
GAAP gross loss was
GAAP operating expenses were
GAAP net loss was
The contracted portion of the company's backlog2 now stands at approximately
Subsequent Events
On July 2, 2025, the company entered into a new
The Financing Facility provides for an initial term loan financing of up to
The company also announced today that Dean Priddy, who has been a member of the Board of Directors of FTC Solar for five years, chaired the Board’s Audit Committee and served on the Compensation Committee and Nominating and Corporate Governance Committees, has stepped down from the Board effective August 4, and that Tony Alvarez, who has served as a Board Observer since July 2023, has been appointed as an Independent Director and will replace Priddy as Chairman of the company’s Audit Committee, effective today, August 5.
“Dean has been a valuable Board Member and made many significant contributions to the company during his tenure, and I would like to thank him for his service,” commented Shaker Sadasivam, Chairman of the Board of Directors. “I would also like to welcome Tony Alvarez as an independent director. Tony brings significant solar industry expertise to the Board, and we are glad to have him join us.”
Commenting on his retirement from the Board, Dean Priddy said, “It has been a pleasure serving with my fellow directors on the FTC Board and rewarding to see the company’s transition from private company to public and from an emerging 2P supplier to one with a broad, innovative and compelling product portfolio. With the annual audit behind us and the company fresh off its successful capital raise, it seems like a good opportunity for me to step away and focus on my personal endeavors. Thank you to Shaker for working with me on the transition, and to the full Board and company for our time together. I look forward to watching the company’s continued progress and success in the years to come.”
Mr. Alvarez joined the FTC Solar Board as an Observer in 2023, bringing more than 35 years of solar and engineering experience to the company. He most recently served as EVP of Memory Solutions at Infineon, where he was responsible for all aspects of the company’s memory business. Prior to that, he was CEO of Solaria, a leading residential solar company. Mr. Alvarez’s experience also includes CEO or other senior-level roles at Altierre, Aptina Imaging, Advanced Analogic Technologies, Leadis Technology, as well as 18 years at Cypress Semiconductor. He currently serves on the board of directors at SunPower and has held prior board positions with NexGen Power Systems, SunEdison Semiconductor, ChipMOS Technology, SunEdison, and Validity Sensors. He earned a B.S. and M.S. in Electrical Engineering from the Georgia Institute of Technology.
Mr. Priddy’s decision to step down from the Board is due to his retirement and not due to any disagreement with the Company on any matter relating to the Company’s operations, policies or practices. The Company is grateful for Mr. Priddy’s commitment and service to the Company, the Board and the Board’s committees.
Outlook
For the third quarter, we expect revenue at the midpoint of our guidance range to be up approximately
| (in millions) | 2Q'25 Guidance | 2Q'25 Actual | 3Q'25 Guidance(3) | |||||
| Revenue | $ | 20.0 | ||||||
| Non-GAAP Gross Profit (Loss) | $ | (3.5 | ) | |||||
| Non-GAAP Gross Margin | ( | (17.4 | %) | ( | ||||
| Non-GAAP operating expenses | $ | 6.5 | ||||||
| Non-GAAP adjusted EBITDA | $ | (10.4 | ) | |||||
Second Quarter 2025 Earnings Conference Call
FTC Solar’s senior management will host a conference call for members of the investment community at 8:30 a.m. E.T. today, during which the company will discuss its second quarter results, its outlook and other business items. This call will be webcast and can be accessed within the Investor Relations section of FTC Solar's website at https://investor.ftcsolar.com. A replay of the conference call will also be available on the website for 30 days following the webcast.
About FTC Solar Inc.
Founded in 2017 by a group of renewable energy industry veterans, FTC Solar is a global provider of solar tracker systems, technology, software, and engineering services. Solar trackers significantly increase energy production at solar power installations by dynamically optimizing solar panel orientation to the sun. FTC Solar’s innovative tracker designs provide compelling performance and reliability, with an industry-leading installation cost-per-watt advantage.
Footnotes
1. A reconciliation of prior quarter Non-GAAP financial measures to the nearest comparable GAAP measures may be found in Exhibit 99.1 of our Form 8-K filed on May 1, 2025.
2. The term ‘backlog’ or ‘contracted and awarded’ refers to the combination of our executed contracts (contracted) and awarded orders (awarded), which are orders that have been documented and signed through a contract, where we are in the process of documenting a contract but for which a contract has not yet been signed, or that have been awarded in writing or verbally with a mutual understanding that the order will be contracted in the future. In the case of certain projects, including those that are scheduled for delivery on later dates, we have not locked in binding pricing with customers, and we instead use estimated average selling price to calculate the revenue included in our contracted and awarded orders for such projects. Actual revenue for these projects could differ once contracts with binding pricing are executed, and there is also a risk that a contract may never be executed for an awarded but uncontracted project, or that a contract may be executed for an awarded but uncontracted project at a date that is later than anticipated, or that a contract once executed may be subsequently amended, supplemented, rescinded, cancelled or breached, including in a manner that impacts the timing and amounts of payments due thereunder, thus reducing anticipated revenues. Please refer to our SEC filings, including our Form 10-K, for more information on our contracted and awarded orders, including risk factors.
3. We do not provide a quantitative reconciliation of our forward-looking Non-GAAP guidance measures to the most directly comparable GAAP financial measures because certain information needed to reconcile those measures is not available without unreasonable efforts due to the inherent difficulty in forecasting and quantifying these measures as a result of changes in project schedules by our customers that may occur, which are outside of our control, and the impact, if any, of credit loss provisions, asset impairment charges, restructuring or changes in the timing and level of indirect or overhead spending, as well as other matters, that could occur which could significantly impact the related GAAP financial measures.
Forward-Looking Statements
This press release contains forward looking statements. These statements are not historical facts but rather are based on our current expectations and projections regarding our business, operations and other factors relating thereto. Words such as “may,” “will,” “could,” “would,” “should,” “anticipate,” “predict,” “potential,” “continue,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates” and similar expressions are used to identify these forward-looking statements. These statements are only predictions and as such are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict, including, without limitation, the risks and uncertainties described in more detail above and in our filings with the U.S. Securities and Exchange Commission, including the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”), our Quarterly Reports on Form 10-Q, and other documents, including Current Reports on Form 8-K, that we have filed, or will file, with the SEC. You should not rely on our forward-looking statements as predictions of future events, as actual results may differ materially from those in the forward-looking statements as a result of certain risks and uncertainties, including, without limitation, the risks and uncertainties described in more detail above and in our filings with the SEC, including the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our Annual Report on Form 10-K filed with the SEC, our Quarterly Reports on Form 10-Q, and other documents, including Current Reports on Form 8-K, that we have filed, or will file, with the SEC. Any forward-looking statements in this release speak only as of the date on which they are made. FTC Solar undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in its expectations, except as required by law.
FTC Solar Investor Contact:
Bill Michalek
Vice President, Investor Relations
FTC Solar
T: (737) 241-8618
E: IR@FTCSolar.com
| FTC Solar, Inc. Condensed Consolidated Statements of Comprehensive Loss (unaudited) | ||||||||||||||||
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||
| (in thousands, except shares and per share data) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Revenue: | ||||||||||||||||
| Product | $ | 15,867 | $ | 8,776 | $ | 34,069 | $ | 19,681 | ||||||||
| Service | 4,126 | 2,654 | 6,727 | 4,336 | ||||||||||||
| Total revenue | 19,993 | 11,430 | 40,796 | 24,017 | ||||||||||||
| Cost of revenue: | ||||||||||||||||
| Product | 18,876 | 10,467 | 38,987 | 22,834 | ||||||||||||
| Service | 5,036 | 3,306 | 9,175 | 5,634 | ||||||||||||
| Total cost of revenue | 23,912 | 13,773 | 48,162 | 28,468 | ||||||||||||
| Gross loss | (3,919 | ) | (2,343 | ) | (7,366 | ) | (4,451 | ) | ||||||||
| Operating expenses | ||||||||||||||||
| Research and development | 1,129 | 1,535 | 2,053 | 2,974 | ||||||||||||
| Selling and marketing | 1,291 | 2,036 | 2,427 | 4,424 | ||||||||||||
| General and administrative | 5,160 | 6,010 | 10,213 | 12,577 | ||||||||||||
| Total operating expenses | 7,580 | 9,581 | 14,693 | 19,975 | ||||||||||||
| Loss from operations | (11,499 | ) | (11,924 | ) | (22,059 | ) | (24,426 | ) | ||||||||
| Interest expense | (731 | ) | (117 | ) | (1,442 | ) | (434 | ) | ||||||||
| Interest income | 5 | 118 | 11 | 299 | ||||||||||||
| Gain from disposal of investment in unconsolidated subsidiary | — | — | 3,204 | 4,085 | ||||||||||||
| Gain on sale of Atlas | 50 | — | 50 | — | ||||||||||||
| Gain (loss) from change in fair value of warrant liability | (2,836 | ) | — | 1,768 | — | |||||||||||
| Other income (expense), net | 71 | (7 | ) | 75 | 29 | |||||||||||
| Loss from unconsolidated subsidiary | (451 | ) | (246 | ) | (563 | ) | (511 | ) | ||||||||
| Loss before income taxes | (15,391 | ) | (12,176 | ) | (18,956 | ) | (20,958 | ) | ||||||||
| Provision for income taxes | (39 | ) | (65 | ) | (293 | ) | (54 | ) | ||||||||
| Net loss | (15,430 | ) | (12,241 | ) | (19,249 | ) | (21,012 | ) | ||||||||
| Other comprehensive income (loss): | ||||||||||||||||
| Foreign currency translation adjustments | 81 | 36 | 109 | (145 | ) | |||||||||||
| Comprehensive loss | $ | (15,349 | ) | $ | (12,205 | ) | $ | (19,140 | ) | $ | (21,157 | ) | ||||
| Net loss per share: | ||||||||||||||||
| Basic and diluted(*) | $ | (1.18 | ) | $ | (0.97 | ) | $ | (1.49 | ) | $ | (1.67 | ) | ||||
| Weighted-average common shares outstanding: | ||||||||||||||||
| Basic and diluted(*) | 13,098,825 | 12,617,128 | 12,948,189 | 12,581,608 | ||||||||||||
___________
| (*) | Prior year amounts per share and number of shares, as applicable, have been revised to reflect the 1-for-10 reverse stock split, effective November 29, 2024. |
| FTC Solar, Inc. Condensed Consolidated Balance Sheets (unaudited) | ||||||||
| (in thousands, except shares and per share data) | June 30, 2025 | December 31, 2024 | ||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 3,519 | $ | 11,247 | ||||
| Accounts receivable, net of allowance for credit losses of | 45,648 | 39,709 | ||||||
| Inventories | 7,316 | 10,144 | ||||||
| Prepaid and other current assets | 13,813 | 15,028 | ||||||
| Total current assets | 70,296 | 76,128 | ||||||
| Operating lease right-of-use assets | 930 | 1,149 | ||||||
| Property and equipment, net | 1,931 | 2,217 | ||||||
| Goodwill | 7,268 | 7,139 | ||||||
| Equity method investment | 391 | 954 | ||||||
| Other assets | 2,139 | 2,341 | ||||||
| Total assets | $ | 82,955 | $ | 89,928 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 17,867 | $ | 12,995 | ||||
| Accrued expenses | 30,410 | 20,134 | ||||||
| Income taxes payable | 408 | 325 | ||||||
| Deferred revenue | 1,492 | 5,306 | ||||||
| Other current liabilities | 10,456 | 10,313 | ||||||
| Total current liabilities | 60,633 | 49,073 | ||||||
| Long-term debt | 10,895 | 9,466 | ||||||
| Operating lease liability, net of current portion | 436 | 411 | ||||||
| Warrant liability | — | 9,520 | ||||||
| Other non-current liabilities | 1,949 | 2,422 | ||||||
| Total liabilities | 73,913 | 70,892 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity | ||||||||
| Preferred stock par value of | — | — | ||||||
| Common stock par value of | 1 | 1 | ||||||
| Treasury stock, at cost; 1,076,257 shares as of June 30, 2025 and December 31, 2024 | — | — | ||||||
| Additional paid-in capital | 376,464 | 367,318 | ||||||
| Accumulated other comprehensive loss | (433 | ) | (542 | ) | ||||
| Accumulated deficit | (366,990 | ) | (347,741 | ) | ||||
| Total stockholders’ equity | 9,042 | 19,036 | ||||||
| Total liabilities and stockholders’ equity | $ | 82,955 | $ | 89,928 | ||||
| FTC Solar, Inc. Condensed Consolidated Statements of Cash Flows (unaudited) | ||||||||
| Six months ended June 30, | ||||||||
| (in thousands) | 2025 | 2024 | ||||||
| Cash flows from operating activities | ||||||||
| Net loss | $ | (19,249 | ) | $ | (21,012 | ) | ||
| Adjustments to reconcile net loss to cash used in operating activities: | ||||||||
| Stock-based compensation | 1,216 | 2,924 | ||||||
| Depreciation and amortization | 607 | 812 | ||||||
| Gain from change in fair value of warrant liability | (1,768 | ) | — | |||||
| Gain from sale of property and equipment | (3 | ) | — | |||||
| Amortization of debt discount and issue costs | 427 | 236 | ||||||
| Paid-in-kind non-cash interest | 1,001 | — | ||||||
| Provision for obsolete and slow-moving inventory | — | 177 | ||||||
| Loss from unconsolidated subsidiary | 563 | 511 | ||||||
| Gain from disposal of investment in unconsolidated subsidiary | (3,204 | ) | (4,085 | ) | ||||
| Gain on sale of Atlas | (50 | ) | — | |||||
| Warranties issued and remediation added | 1,614 | 1,639 | ||||||
| Warranty recoverable from manufacturer | 191 | 238 | ||||||
| Credit loss provisions | 192 | 587 | ||||||
| Deferred income taxes | 425 | 223 | ||||||
| Lease expense and other | 594 | 609 | ||||||
| Impact on cash from changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (5,956 | ) | 23,181 | |||||
| Inventories | 2,828 | (13,333 | ) | |||||
| Prepaid and other current assets | 1,193 | (864 | ) | |||||
| Other assets | (392 | ) | (562 | ) | ||||
| Accounts payable | 4,819 | 9,483 | ||||||
| Accruals and other current liabilities | 9,507 | (13,463 | ) | |||||
| Deferred revenue | (3,814 | ) | (1,017 | ) | ||||
| Other non-current liabilities | (830 | ) | (1,331 | ) | ||||
| Lease payments and other, net | (691 | ) | (588 | ) | ||||
| Net cash used in operations | (10,780 | ) | (15,635 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment | (268 | ) | (1,131 | ) | ||||
| Proceeds from sale of Atlas software platform | 50 | — | ||||||
| Proceeds from sale of property and equipment | 3 | — | ||||||
| Equity method investment in Alpha Steel | — | (1,800 | ) | |||||
| Proceeds from disposal of investment in unconsolidated subsidiary | 3,204 | 4,085 | ||||||
| Net cash provided by investing activities | 2,989 | 1,154 | ||||||
| Cash flows from financing activities: | ||||||||
| Proceeds from stock option exercises | 3 | 3 | ||||||
| Net cash provided by financing activities | 3 | 3 | ||||||
| Effect of exchange rate changes on cash and cash equivalents | 60 | 22 | ||||||
| Decrease in cash, cash equivalents and restricted cash | (7,728 | ) | (14,456 | ) | ||||
| Cash and cash equivalents at beginning of period | 11,247 | 25,235 | ||||||
| Cash and cash equivalents at end of period | $ | 3,519 | $ | 10,779 | ||||
Notes to Reconciliations of Non-GAAP Financial Measures to Nearest Comparable GAAP Measures
We utilize Adjusted EBITDA, Adjusted Net Loss, and Adjusted EPS as supplemental measures of our performance. We define Adjusted EBITDA as net loss plus (i) provision for (benefit from) income taxes, (ii) interest expense, less interest income, (iii) depreciation expense, (iv) amortization of intangibles, (v) stock-based compensation, (vi) loss from changes in fair value of our warrant liability, and (vii) Chief Executive Officer ("CEO") transition costs, non-routine legal fees, costs associated with our reverse stock split, severance and certain other costs (credits). We also deduct the contingent gains arising from earnout payments and project escrow releases relating to the disposal of our investment in an unconsolidated subsidiary and gains from changes in fair value of our warrant liability from net loss in arriving at Adjusted EBITDA. We define Adjusted Net Loss as net loss plus (i) amortization of debt discount and issue costs and intangibles, (ii) stock-based compensation, (iii) loss from changes in fair value of our warrant liability, (iv) CEO transition costs, non-routine legal fees, costs associated with our reverse stock split, severance and certain other costs (credits), and (v) the income tax expense (benefit) of those adjustments, if any. We also deduct the contingent gains arising from earnout payments and project escrow releases relating to the disposal of our investment in an unconsolidated subsidiary and gains from change in fair value of our warrant liability from net loss in arriving at Adjusted Net Loss. Adjusted EPS is defined as Adjusted Net Loss on a per share basis using our weighted average diluted shares outstanding.
Non-GAAP gross profit (loss), Non-GAAP operating expense, Adjusted EBITDA, Adjusted Net Loss and Adjusted EPS are intended as supplemental measures of performance that are neither required by, nor presented in accordance with, U.S. generally accepted accounting principles (“GAAP”). We present these Non-GAAP measures, many of which are commonly used by investors and analysts, because we believe they assist those investors and analysts in comparing our performance across reporting periods on an ongoing basis by excluding items that we do not believe are indicative of our core operating performance. In addition, we use Adjusted EBITDA, Adjusted Net Loss and Adjusted EPS to evaluate the effectiveness of our business strategies.
Non-GAAP gross profit (loss), Non-GAAP operating expense, Adjusted EBITDA, Adjusted Net Loss and Adjusted EPS should not be considered in isolation or as substitutes for performance measures calculated in accordance with GAAP, and you should not rely on any single financial measure to evaluate our business. These Non-GAAP financial measures, when presented, are reconciled to the most closely applicable GAAP measure as disclosed below.
The following table reconciles Non-GAAP gross loss to the most closely related GAAP measure for the three and six months ended June 30, 2025 and 2024, respectively:
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||
| (in thousands, except percentages) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| U.S. GAAP revenue | $ | 19,993 | $ | 11,430 | $ | 40,796 | $ | 24,017 | ||||||||
| U.S. GAAP gross loss | $ | (3,919 | ) | $ | (2,343 | ) | $ | (7,366 | ) | $ | (4,451 | ) | ||||
| Depreciation expense | 185 | 183 | 358 | 351 | ||||||||||||
| Stock-based compensation | 248 | 240 | 491 | 456 | ||||||||||||
| Severance costs | — | — | 34 | — | ||||||||||||
| Non-GAAP gross loss | $ | (3,486 | ) | $ | (1,920 | ) | $ | (6,483 | ) | $ | (3,644 | ) | ||||
| Non-GAAP gross margin percentage | (17.4 | %) | (16.8 | %) | (15.9 | %) | (15.2 | %) | ||||||||
The following table reconciles Non-GAAP operating expenses to the most closely related GAAP measure for the three and six months ended June 30, 2025 and 2024, respectively:
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||
| (in thousands) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| U.S. GAAP operating expenses | $ | 7,580 | $ | 9,581 | $ | 14,693 | $ | 19,975 | ||||||||
| Depreciation expense | (120 | ) | (91 | ) | (249 | ) | (193 | ) | ||||||||
| Amortization expense | — | (134 | ) | — | (268 | ) | ||||||||||
| Stock-based compensation | (688 | ) | (1,045 | ) | (725 | ) | (2,468 | ) | ||||||||
| CEO transition | (228 | ) | — | (388 | ) | — | ||||||||||
| Non-routine legal fees | — | (33 | ) | — | (66 | ) | ||||||||||
| Reverse stock split | — | — | (1 | ) | — | |||||||||||
| Severance costs | — | — | (141 | ) | — | |||||||||||
| Non-GAAP operating expenses | $ | 6,544 | $ | 8,278 | $ | 13,189 | $ | 16,980 | ||||||||
The following table reconciles Non-GAAP Adjusted EBITDA to the related GAAP measure of loss from operations for the three and six months ended June 30, 2025 and 2024, respectively:
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||
| (in thousands) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| U.S. GAAP loss from operations | $ | (11,499 | ) | $ | (11,924 | ) | $ | (22,059 | ) | $ | (24,426 | ) | ||||
| Depreciation expense | 305 | 274 | 607 | 544 | ||||||||||||
| Amortization expense | — | 134 | — | 268 | ||||||||||||
| Stock-based compensation | 936 | 1,285 | 1,216 | 2,924 | ||||||||||||
| CEO transition | 228 | — | 388 | — | ||||||||||||
| Non-routine legal fees | — | 33 | — | 66 | ||||||||||||
| Reverse stock split | — | — | 1 | — | ||||||||||||
| Severance costs | — | — | 175 | — | ||||||||||||
| Other income (expense), net | 71 | (7 | ) | 75 | 29 | |||||||||||
| Gain on sale of Atlas | 50 | — | 50 | — | ||||||||||||
| Loss from unconsolidated subsidiary | (451 | ) | (246 | ) | (563 | ) | (511 | ) | ||||||||
| Adjusted EBITDA | $ | (10,360 | ) | $ | (10,451 | ) | $ | (20,110 | ) | $ | (21,106 | ) | ||||
The following table reconciles Non-GAAP Adjusted EBITDA and Adjusted Net Loss to the related GAAP measure of net loss for the three months ended June 30, 2025 and 2024, respectively:
| Three months ended June 30, | ||||||||||||||||
| 2025 | 2024 | |||||||||||||||
| (in thousands, except shares and per share data) | Adjusted EBITDA | Adjusted Net Loss | Adjusted EBITDA | Adjusted Net Loss | ||||||||||||
| Net loss per U.S. GAAP | $ | (15,430 | ) | $ | (15,430 | ) | $ | (12,241 | ) | $ | (12,241 | ) | ||||
| Reconciling items - | ||||||||||||||||
| Provision for income taxes | 39 | — | 65 | — | ||||||||||||
| Interest expense | 731 | — | 117 | — | ||||||||||||
| Interest income | (5 | ) | — | (118 | ) | — | ||||||||||
| Amortization of debt discount and issue costs in interest expense | — | 217 | — | 59 | ||||||||||||
| Depreciation expense | 305 | — | 274 | — | ||||||||||||
| Amortization of intangibles | — | — | 134 | 134 | ||||||||||||
| Stock-based compensation | 936 | 936 | 1,285 | 1,285 | ||||||||||||
| Gain from change in fair value of warrant liability(a) | 2,836 | 2,836 | — | — | ||||||||||||
| CEO transition(b) | 228 | 228 | — | — | ||||||||||||
| Non-routine legal fees(c) | — | — | 33 | 33 | ||||||||||||
| Adjusted Non-GAAP amounts | $ | (10,360 | ) | $ | (11,213 | ) | $ | (10,451 | ) | $ | (10,730 | ) | ||||
| Adjusted Non-GAAP net loss per share (Adjusted EPS): | ||||||||||||||||
| Basic and diluted(d) | N/A | $ | (0.86 | ) | N/A | $ | (0.85 | ) | ||||||||
| Weighted-average common shares outstanding: | ||||||||||||||||
| Basic and diluted(d) | N/A | 13,098,825 | N/A | 12,617,128 | ||||||||||||
| (a) | We exclude non-cash changes in the fair value of our outstanding warrants as we do not consider such changes to impact or reflect changes in our core operating performance. |
| (b) | In connection with hiring a new CEO in August 2024, we agreed to upfront and incremental sign-on bonuses (collectively, the "sign-on bonuses"), a portion of which was paid to our CEO in 2024, with clawback provisions over the next two years, and a portion of which will be paid in 2025 and 2026, all contingent upon continued employment as of the payment date. These sign-on bonuses will be expensed each period through October 1, 2026, to reflect the required service periods. We do not view these sign-on bonuses as being part of the normal on-going compensation arrangements for our CEO. |
| (c) | Non-routine legal fees represent legal fees and other costs incurred for specific matters that were not ordinary or routine to the operations of the business. |
| (d) | Prior year shares and amounts, as applicable, have been revised to reflect the 1-for-10 reverse stock split, effective November 29, 2024. |
FAQ
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