FTC Solar Announces Second Quarter 2026 Financial Results
Rhea-AI Summary
FTC Solar (Nasdaq: FTCI) reported second quarter 2026 revenue of $26.2 million, up 51.5% quarter-over-quarter and 30.8% year-over-year, exceeding its guidance range. GAAP gross margin was -8.5%, while non-GAAP gross margin improved to -5.1% from -17.4% a year earlier.
GAAP net loss widened to $27.1 million (loss of $1.69 per diluted share), and adjusted EBITDA loss was $9.8 million. Non-GAAP operating expenses were $8.5 million. The contracted portion of backlog reached about $560 million. Cash and cash equivalents declined to $10.1 million from $21.1 million at year-end 2025.
Commercially, FTC Solar booked a new 400 MW U.S. 1P tracker order after quarter end, received notice to proceed on a 330+ MW Australia project, and entered the India market with multiple initial projects. The company reaffirmed its outlook for 40% year-over-year revenue growth in 2026 and guided third quarter 2026 revenue to $30–35 million (about 24% sequential growth at the midpoint). FTC Solar also established an equity line of credit of up to $20 million with Lincoln Park Capital as an additional funding source.
Positive
- Revenue $26.2m, up 51.5% QoQ and 30.8% YoY in Q2 2026
- Non-GAAP gross margin improved to -5.1% vs -17.4% a year ago
- Contracted portion of backlog at approximately $560 million
- Q3 2026 revenue guidance of $30–35m, ~24% QoQ growth at midpoint
- Reaffirmed 40% full-year 2026 revenue growth outlook vs 2025
- New 400 MW U.S. 1P tracker order with top EPC and developer
Negative
- GAAP net loss of $27.1 million in Q2 2026 (loss $1.69/share)
- Adjusted EBITDA loss of $9.8 million in Q2 2026
- GAAP gross margin remained negative at -8.5% in Q2 2026
- GAAP operating expenses increased to $11.5 million from $7.6m YoY
- Interest expense rose to $4.3 million from $0.7m a year ago
- Cash and cash equivalents declined to $10.1 million from $21.1m at 2025 year-end
News Explained
The August 5 release adds an up-to-$20 million share-sale facility; use is discretionary, and issuing shares could dilute existing holders.
FTC Solar reported second-quarter results and entered an agreement for an equity line under which it may sell common shares to Lincoln Park, subject to conditions.
The facility permits future sales rather than recording a stated share issuance: FTC controls the timing and amount, so the
The reported approximately
The relevant follow-up is the next Form 10-Q's cash, financing, and common-shares-outstanding line items, because this release specifies the facility ceiling and sale terms rather than an issued-share amount.
Market Reaction – FTCI
Following this news, FTCI has gained 2.27%, reflecting a moderate positive market reaction. Argus tracked a peak move of +8.7% during the session. Argus tracked a trough of -8.1% from its starting point during tracking. Our momentum scanner has triggered 9 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $3.15.
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Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Mar 05 | Q4 earnings report | Positive | -27.1% | Revenue growth, improved margins, and major supply agreements preceded a 27.11% decline. |
| Nov 12 | Q3 earnings report | Positive | +49.2% | Revenue growth, improved EBITDA, financing, and supply agreement accompanied a 49.19% gain. |
| Aug 05 | Q2 earnings report | Neutral | -18.5% | Revenue growth and financing were reported alongside losses and an 18.46% decline. |
| May 01 | Q1 earnings report | Positive | +4.1% | Revenue growth, increased bookings, and customer agreements accompanied a 4.08% gain. |
| Mar 31 | Q4 earnings report | Negative | +14.8% | Year-over-year revenue decline and net loss accompanied supply agreements and a 14.8% gain. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings reactions were mixed: two positive operating updates aligned with gains, while three other earnings events diverged from the reported fundamentals.
Key Terms
gaap financial
non-gaap financial
adjusted ebitda financial
equity line of credit financial
warrant liability financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Second Quarter Highlights and Recent Developments
- Second quarter revenue up
52% q/q,31% y/y, ahead of target - Awarded 400MW project with top EPC and top developer
- Awarded 80+MW project in Australia for 2H delivery
- Scheduled to begin deliveries on 330+MW Australia project
- Announced entry into India market with multiple initial project wins
- Reaffirm outlook for
40% y/y revenue growth in 2026 - Announced agreement for up to
$20 million equity line of credit with institutional investor
AUSTIN, Texas, Aug. 05, 2026 (GLOBE NEWSWIRE) -- FTC Solar, Inc. (Nasdaq: FTCI), a leading provider of solar tracker systems, today announced financial results for the second quarter ended June 30, 2026.
“We’re pleased to report that second quarter results were in line with or better than our targeted ranges,” said Anthony Carroll, President and CEO of FTC Solar, “and that we remain on track to outpace the market with
“While I am just over one quarter into my tenure as CEO, the company has done an incredible amount over the past two years to put the company in a great position to grow and scale. This includes developing and introducing a 1P tracker line that is regarded by customers as easier and faster to install and an engineering capability that is willing to go the extra mile and increasingly helps enable more power or less land grading through a more efficient design.
“To build on that foundation and continue the momentum, we have been focused on five key areas. They include:
- Expanding top 10 customer base. Following great work to achieve qualification with top prospects, including 9 of the top 10 EPCs, the focus now is on converting these opportunities and expanding our customer base within this group. We have recently signed two projects associated with three top developers and EPCs and expect to add projects with two more by year-end.
- Making immediate bookings progress. With a significantly expanded overall customer base and improved access to bid opportunities, our focus is now on converting that stronger pipeline into bookings. We're investing in sales talent, AI-driven bidding capabilities, and international expansion, with meaningful momentum in Australia and new entry into India reinforcing the opportunity ahead.
- Ramping second half revenue. Following
52% sequential growth in the second quarter, we’re looking for another24% growth in Q3 before accelerating again in Q4. We’re reaffirming our full-year 2026 growth outlook of40% . While we will look to grow even faster, what is most important is systematic execution and layering on an increasing amount of projects to build sustainable future growth. - Cost and breakeven optimization: Improving our cost structure and lowering our breakeven revenue level remain key priorities. Through targeted cost savings, greater use of AI and automation, and better monetization of the value we deliver to customers, we see meaningful opportunities to expand margins as the business grows.
- Robotics and AI: We believe robotics will be a major productivity driver for our customers, and we want to help lead that transition. We've already generated promising test and pilot results and expect to have these technologies operating on commercial projects with real-world data soon.
“Overall, while we still have work to do and need to win much more business, I'm proud of what our team has accomplished and confident in where we're headed. We have the products, the partnerships, and the strategy to drive sustainable growth, and we'll continue earning trust through execution and customer focus. Our opportunity is great, our plan is clear, the path to profitability is there, and our second half revenue growth outlook is very strong.”
Second Quarter Results
Total second-quarter revenue was
GAAP gross loss was
Summary Financial Performance: Q2 2026 compared to Q2 2025
| U.S. GAAP | Non-GAAP(b) | |||||||||||||||
| Three months ended June 30, | ||||||||||||||||
| (in thousands, except per share data) | 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Revenue | $ | 26,157 | $ | 19,993 | $ | 26,157 | $ | 19,993 | ||||||||
| Gross margin percentage | (8.5 | %) | (19.6 | %) | (5.1 | %) | (17.4 | %) | ||||||||
| Total operating expenses | $ | 11,493 | $ | 7,580 | $ | 8,482 | $ | 6,544 | ||||||||
| Loss from operations(a) | $ | (13,727 | ) | $ | (11,499 | ) | $ | (9,777 | ) | $ | (10,360 | ) | ||||
| Net loss | $ | (27,124 | ) | $ | (15,430 | ) | $ | (12,252 | ) | $ | (11,213 | ) | ||||
| Diluted loss per share | $ | (1.69 | ) | $ | (1.18 | ) | $ | (0.76 | ) | $ | (0.86 | ) | ||||
(a) Adjusted EBITDA for Non-GAAP
(b) See below for reconciliation of Non-GAAP financial measures to the nearest comparable GAAP measures
GAAP operating expenses were
GAAP net loss was
Adjusted EBITDA loss, which excludes approximately
The contracted portion of the company's backlog2 now stands at approximately
During the quarter, the company received a purchase order for its first 1P tracker system with a top U.S. developer, which has heretofore been a 2P customer. The project is just over 100 megawatts and located on the East Coast. The company is very pleased to expand its relationship with this developer.
The company also received notice to begin production on a 330+ megawatt project in Queensland, Australia. FTC first announced the project award in March 2025 with tracker production at the time expected to begin in mid-2025. The project timeline has been revised and now finalized with notice to proceed issued during the second quarter. Tracker deliveries begin in the second half of 2026. The aggregate value of the project was added to the company’s backlog in 2025 and was reflected in the most recent backlog disclosed on May 5, 2026.
The company also announced that it has recently entered the India market, and has already won multiple initial projects there, ranging from pilot to 100+ megawatt projects with large and well-known customers. Shipments in this region have been ongoing in 2026.
Subsequent Events
Subsequent to quarter end, the company received a new 400 megawatt purchase order for a 1P project being constructed by a top 5 U.S. EPC and a top 5 U.S. developer. The company has worked with this EPC on other projects recently and is pleased to see a nice-sized follow-on project.
In addition to its financial results, the company announced that it has entered into a purchase agreement establishing an Equity Line of Credit (“ELOC”) with Lincoln Park Capital, a long-only institutional investor. Under the terms of the agreement and subject to certain conditions, FTC Solar has the right to sell, and Lincoln Park is obligated to purchase, up to
Outlook
The company expects third quarter revenue to grow by roughly
(in millions) | 2Q'26 Guidance | 2Q'26 Actual | 3Q'26 Guidance(3) | |||||
| Revenue | $ | 26.2 | ||||||
| Non-GAAP Gross Profit (Loss) | $ | (1.3 | ) | |||||
| Non-GAAP Gross Margin | ( | (5.1 | %) | ( | ||||
| Non-GAAP operating expenses | $ | 8.5 | ||||||
| Non-GAAP adjusted EBITDA | $ | (9.8 | ) | |||||
Second Quarter 2026 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 the prior sequential 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 5, 2026.
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 Results of Operations (unaudited) | ||||||||||||||||
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||
| (in thousands, except shares and per share data) | 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Revenue: | ||||||||||||||||
| Product | $ | 22,405 | $ | 15,867 | $ | 34,167 | $ | 34,069 | ||||||||
| Service | 3,752 | 4,126 | 9,255 | 6,727 | ||||||||||||
| Total revenue | 26,157 | 19,993 | 43,422 | 40,796 | ||||||||||||
| Cost of revenue: | ||||||||||||||||
| Product | 24,605 | 18,876 | 38,413 | 38,987 | ||||||||||||
| Service | 3,786 | 5,036 | 8,470 | 9,175 | ||||||||||||
| Total cost of revenue | 28,391 | 23,912 | 46,883 | 48,162 | ||||||||||||
| Gross loss | (2,234 | ) | (3,919 | ) | (3,461 | ) | (7,366 | ) | ||||||||
| Operating expenses | ||||||||||||||||
| Research and development | 1,209 | 1,129 | 2,327 | 2,053 | ||||||||||||
| Selling and marketing | 2,065 | 1,291 | 3,780 | 2,427 | ||||||||||||
| General and administrative | 8,219 | 5,160 | 16,217 | 10,213 | ||||||||||||
| Total operating expenses | 11,493 | 7,580 | 22,324 | 14,693 | ||||||||||||
| Loss from operations | (13,727 | ) | (11,499 | ) | (25,785 | ) | (22,059 | ) | ||||||||
| Interest expense | (4,333 | ) | (731 | ) | (8,229 | ) | (1,442 | ) | ||||||||
| Interest income | 5 | 5 | 10 | 11 | ||||||||||||
| Gain from disposal of investment in unconsolidated subsidiary | — | — | — | 3,204 | ||||||||||||
| Gain on sale of Atlas | 26 | 50 | 26 | 50 | ||||||||||||
| Gain (loss) from change in fair value of warrant liability | (8,887 | ) | (2,836 | ) | 39,855 | 1,768 | ||||||||||
| Other income, net | 9 | 71 | 10 | 75 | ||||||||||||
| Loss from unconsolidated subsidiary | — | (451 | ) | — | (563 | ) | ||||||||||
| Income (loss) before income taxes | (26,907 | ) | (15,391 | ) | 5,887 | (18,956 | ) | |||||||||
| Provision for income taxes | (217 | ) | (39 | ) | (412 | ) | (293 | ) | ||||||||
| Net income (loss) | (27,124 | ) | (15,430 | ) | 5,475 | (19,249 | ) | |||||||||
| Other comprehensive income: | ||||||||||||||||
| Foreign currency translation adjustments | 119 | 81 | 218 | 109 | ||||||||||||
| Comprehensive income (loss) | $ | (27,005 | ) | $ | (15,349 | ) | $ | 5,693 | $ | (19,140 | ) | |||||
| Net income (loss) per share: | ||||||||||||||||
| Basic | $ | (1.69 | ) | $ | (1.18 | ) | $ | 0.35 | $ | (1.49 | ) | |||||
| Diluted | $ | (1.69 | ) | $ | (1.18 | ) | $ | (1.52 | ) | $ | (1.49 | ) | ||||
| Weighted-average common shares outstanding: | ||||||||||||||||
| Basic | 16,048,941 | 13,098,825 | 15,809,947 | 12,948,189 | ||||||||||||
| Diluted | 16,048,941 | 13,098,825 | 22,635,642 | 12,948,189 | ||||||||||||
| FTC Solar, Inc. Condensed Consolidated Balance Sheets (unaudited) | ||||||||
| (in thousands, except shares and per share data) | June 30, 2026 | December 31, 2025 | ||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 10,075 | $ | 21,105 | ||||
| Restricted cash | 1,000 | — | ||||||
| Accounts receivable, net of allowance for credit losses of June 30, 2026 and December 31, 2025, respectively | 48,670 | 55,743 | ||||||
| Inventories | 9,989 | 9,627 | ||||||
| Prepaid and other current assets | 13,582 | 11,294 | ||||||
| Total current assets | 83,316 | 97,769 | ||||||
| Operating lease right-of-use assets | 1,636 | 983 | ||||||
| Property and equipment, net | 3,649 | 3,793 | ||||||
| Goodwill | 7,657 | 7,444 | ||||||
| Other assets | 1,801 | 1,823 | ||||||
| Total assets | $ | 98,059 | $ | 111,812 | ||||
| LIABILITIES AND STOCKHOLDERS' DEFICIT | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 11,436 | $ | 13,247 | ||||
| Short-term debt | 22,641 | 12,681 | ||||||
| Accrued expenses | 39,810 | 23,770 | ||||||
| Income taxes payable | 570 | 630 | ||||||
| Deferred revenue | 5,451 | 7,172 | ||||||
| Other current liabilities | 11,321 | 10,725 | ||||||
| Total current liabilities | 91,229 | 68,225 | ||||||
| Long-term debt | — | 9,921 | ||||||
| Operating lease liability, net of current portion | 1,099 | 553 | ||||||
| Deferred income taxes | 207 | — | ||||||
| Warrant liability | 34,660 | 74,515 | ||||||
| Other non-current liabilities | 1,210 | 1,556 | ||||||
| Total liabilities | 128,405 | 154,770 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ deficit | ||||||||
| Preferred stock par value of issued as of June 30, 2026 and December 31, 2025 | — | — | ||||||
| Common stock par value of 16,455,751 and 15,537,344 shares issued and outstanding as of June 30, 2026 and December 31, 2025 | 2 | 2 | ||||||
| Treasury stock, at cost; 1,076,257 shares as of June 30, 2026 and December 31, 2025 | — | — | ||||||
| Additional paid-in capital | 391,567 | 384,648 | ||||||
| Accumulated other comprehensive loss | (72 | ) | (290 | ) | ||||
| Accumulated deficit | (421,843 | ) | (427,318 | ) | ||||
| Total stockholders’ deficit | (30,346 | ) | (42,958 | ) | ||||
| Total liabilities and stockholders’ deficit | $ | 98,059 | $ | 111,812 | ||||
| FTC Solar, Inc. Condensed Consolidated Statements of Cash Flows (unaudited) | ||||||||
| Six months ended June 30, | ||||||||
| (in thousands) | 2026 | 2025 | ||||||
| Cash flows from operating activities | ||||||||
| Net income (loss) | $ | 5,475 | $ | (19,249 | ) | |||
| Adjustments to reconcile net income (loss) to cash used in operating activities: | ||||||||
| Stock-based compensation | 5,503 | 1,216 | ||||||
| Depreciation and amortization | 795 | 607 | ||||||
| Gain from change in fair value of warrant liability | (39,855 | ) | (1,768 | ) | ||||
| Gain from sale of property and equipment | — | (3 | ) | |||||
| Amortization of debt discount and issue costs | 4,698 | 427 | ||||||
| Paid-in-kind non-cash interest | 2,144 | 1,001 | ||||||
| Provision for obsolete and slow-moving inventory | 667 | — | ||||||
| Loss from unconsolidated subsidiary | — | 563 | ||||||
| Gain from disposal of investment in unconsolidated subsidiary | — | (3,204 | ) | |||||
| Warranties issued and remediation added | 1,107 | 1,614 | ||||||
| Warranty recoverable from manufacturer | 160 | 191 | ||||||
| Credit loss provisions (credits) | (38 | ) | 192 | |||||
| Deferred income taxes | 207 | 425 | ||||||
| Lease expense | 528 | 594 | ||||||
| Impact on cash from changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 7,111 | (5,956 | ) | |||||
| Inventories | (1,029 | ) | 2,828 | |||||
| Prepaid and other current assets | (2,322 | ) | 1,193 | |||||
| Other assets | (121 | ) | (392 | ) | ||||
| Accounts payable | (1,853 | ) | 4,819 | |||||
| Accruals and other current liabilities | 15,335 | 9,507 | ||||||
| Deferred revenue | (1,721 | ) | (3,814 | ) | ||||
| Other non-current liabilities | (709 | ) | (830 | ) | ||||
| Lease payments and other, net | (534 | ) | (691 | ) | ||||
| Net cash used in operations | (4,478 | ) | (10,780 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment | (595 | ) | (268 | ) | ||||
| Proceeds from sale of Atlas software platform | 26 | 50 | ||||||
| Proceeds from sale of property and equipment | — | 3 | ||||||
| Proceeds from disposal of investment in unconsolidated subsidiary | — | 3,204 | ||||||
| Net cash (used in) provided by investing activities | (569 | ) | 2,989 | |||||
| Cash flows from financing activities: | ||||||||
| Repayments of borrowings | (6,260 | ) | — | |||||
| Proceeds from sale of common stock | 1,472 | — | ||||||
| Stock offering costs paid | (39 | ) | — | |||||
| Financing costs paid | (170 | ) | — | |||||
| Proceeds from stock option exercises | — | 3 | ||||||
| Net cash (used in) provided by financing activities | (4,997 | ) | 3 | |||||
| Effect of exchange rate changes on cash and cash equivalents | 14 | 60 | ||||||
| Decrease in cash, cash equivalents and restricted cash | (10,030 | ) | (7,728 | ) | ||||
| Cash and cash equivalents at beginning of period | 21,105 | 11,247 | ||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 11,075 | $ | 3,519 | ||||
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 income (loss) plus (i) provision for (benefit from) income taxes, (ii) interest expense, less interest income, (iii) depreciation expense, (iv) amortization expense, (v) stock-based compensation, (vi) loss from changes in the 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 (i) the contingent gains arising from earnout payments and project escrow releases relating to the disposal of our investment in an unconsolidated subsidiary, and (ii) gains from changes in the fair value of our warrant liability from net income or loss in arriving at Adjusted EBITDA. We define Adjusted Net Loss as net income (loss) plus (i) amortization of debt discount and issue costs and intangibles, (ii) stock-based compensation, (iii) loss from changes in the 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 (i) the contingent gains arising from earnout payments and project escrow releases relating to the disposal of our investment in an unconsolidated subsidiary, and (ii) gains from changes in the fair value of our warrant liability from net income (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, 2026 and 2025, respectively:
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||
| (in thousands, except percentages) | 2026 | 2025 | 2026 | 2025 | ||||||||||||
| U.S. GAAP revenue | $ | 26,157 | $ | 19,993 | $ | 43,422 | $ | 40,796 | ||||||||
| U.S. GAAP gross loss | $ | (2,234 | ) | $ | (3,919 | ) | $ | (3,461 | ) | $ | (7,366 | ) | ||||
| Depreciation expense | 257 | 185 | 447 | 358 | ||||||||||||
| Amortization expense | — | — | 14 | — | ||||||||||||
| Stock-based compensation | 647 | 248 | 1,292 | 491 | ||||||||||||
| Severance costs | — | — | — | 34 | ||||||||||||
| Non-GAAP gross loss | $ | (1,330 | ) | $ | (3,486 | ) | $ | (1,708 | ) | $ | (6,483 | ) | ||||
| Non-GAAP gross margin percentage | (5.1 | %) | (17.4 | %) | (3.9 | %) | (15.9 | %) | ||||||||
The following table reconciles Non-GAAP operating expenses to the most closely related GAAP measure for the three and six months ended June 30, 2026 and 2025, respectively:
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||
| (in thousands) | 2026 | 2025 | 2026 | 2025 | ||||||||||||
| U.S. GAAP operating expenses | $ | 11,493 | $ | 7,580 | $ | 22,324 | $ | 14,693 | ||||||||
| Depreciation expense | (173 | ) | (120 | ) | (334 | ) | (249 | ) | ||||||||
| Stock-based compensation | (1,519 | ) | (688 | ) | (4,211 | ) | (725 | ) | ||||||||
| CEO transition | (1,319 | ) | (228 | ) | (1,454 | ) | (388 | ) | ||||||||
| Reverse stock split | — | — | — | (1 | ) | |||||||||||
| Severance costs | — | — | — | (141 | ) | |||||||||||
| Non-GAAP operating expenses | $ | 8,482 | $ | 6,544 | $ | 16,325 | $ | 13,189 | ||||||||
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, 2026 and 2025, respectively:
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||
| (in thousands) | 2026 | 2025 | 2026 | 2025 | ||||||||||||
| U.S. GAAP loss from operations | $ | (13,727 | ) | $ | (11,499 | ) | $ | (25,785 | ) | $ | (22,059 | ) | ||||
| Depreciation expense | 430 | 305 | 781 | 607 | ||||||||||||
| Amortization expense | — | — | 14 | — | ||||||||||||
| Stock-based compensation | 2,166 | 936 | 5,503 | 1,216 | ||||||||||||
| CEO transition | 1,319 | 228 | 1,454 | 388 | ||||||||||||
| Reverse stock split | — | — | — | 1 | ||||||||||||
| Severance costs | — | — | — | 175 | ||||||||||||
| Other income, net | 9 | 71 | 10 | 75 | ||||||||||||
| Gain on sale of Atlas | 26 | 50 | 26 | 50 | ||||||||||||
| Loss from unconsolidated subsidiary | — | (451 | ) | — | (563 | ) | ||||||||||
| Adjusted EBITDA | $ | (9,777 | ) | $ | (10,360 | ) | $ | (17,997 | ) | $ | (20,110 | ) | ||||
The following table reconciles Non-GAAP Adjusted EBITDA and Adjusted Net Loss to the related GAAP measure of net income (loss) for the three months ended June 30, 2026 and 2025, respectively:
| Three months ended June 30, | ||||||||||||||||
| 2026 | 2025 | |||||||||||||||
| (in thousands, except shares and per share data) | Adjusted EBITDA | Adjusted Net Loss | Adjusted EBITDA | Adjusted Net Loss | ||||||||||||
| Net loss per U.S. GAAP | $ | (27,124 | ) | $ | (27,124 | ) | $ | (15,430 | ) | $ | (15,430 | ) | ||||
| Reconciling items - | ||||||||||||||||
| Provision for income taxes | 217 | — | 39 | — | ||||||||||||
| Interest expense | 4,333 | — | 731 | — | ||||||||||||
| Interest income | (5 | ) | — | (5 | ) | — | ||||||||||
| Amortization of debt discount and issue costs in interest expense | — | 2,500 | — | 217 | ||||||||||||
| Depreciation expense | 430 | — | 305 | — | ||||||||||||
| Stock-based compensation | 2,166 | 2,166 | 936 | 936 | ||||||||||||
| Loss from change in fair value of warrant liability(a) | 8,887 | 8,887 | 2,836 | 2,836 | ||||||||||||
| CEO transition(b) | 1,319 | 1,319 | 228 | 228 | ||||||||||||
| Adjusted Non-GAAP amounts | $ | (9,777 | ) | $ | (12,252 | ) | $ | (10,360 | ) | $ | (11,213 | ) | ||||
| Adjusted Non-GAAP net loss per share (Adjusted EPS): | ||||||||||||||||
| Basic and diluted | N/A | $ | (0.76 | ) | N/A | $ | (0.86 | ) | ||||||||
| Weighted-average common shares outstanding: | ||||||||||||||||
| Basic and diluted | N/A | 16,048,941 | N/A | 13,098,825 | ||||||||||||
| (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 April 2026, we transitioned to a new CEO. As a result of that change, we recognized approximately |
