FTC Solar — Third Quarter 2026 Earnings Summary

Financial Performance:

• Third-quarter revenue was $32.8 million, representing a 25.4% increase sequentially and a 26.1% increase year-over-year compared to $26.0 million in Q3 2025.
• GAAP gross profit was $1.9 million (5.8% margin), improving from a $2.2 million gross loss (8.5% margin) in the prior quarter; Non-GAAP gross profit was $2.8 million (8.4% margin), up from $2.0 million in the prior-year period.
• GAAP operating expenses were $10.4 million, while Non-GAAP operating expenses were $8.1 million, compared to $8.5 million in the prior quarter and $8.0 million in the year-ago quarter.
• GAAP net income was $6.7 million, or a loss of $0.54 per diluted share, compared to a net loss of $23.9 million ($1.61 per share) in the prior-year quarter.
• Adjusted EBITDA loss was $5.2 million, compared to losses of $9.8 million in the prior quarter and $4.0 million in the year-ago quarter.
• Total assets were $119.0 million as of September 30, 2026, up from $111.8 million at December 31, 2025.
• Cash and cash equivalents were $5.1 million, with restricted cash of $11.6 million, totaling $16.7 million at period end.
• Short-term debt increased to $24.8 million from $12.7 million at the end of 2025; long-term debt was eliminated, reducing to $0 from $9.9 million.
• Deferred revenue was $8.7 million, up from $7.2 million at the end of 2025.
• The contracted backlog stood at approximately $640 million.

Guidance and Future Outlook:

• The company expects fourth-quarter revenue to grow approximately 46% sequentially relative to the third quarter, with a guidance range of $44.0 million to $52.0 million.
• Non-GAAP gross margin for Q4 is guided between 11.4% and 15.9%, with Non-GAAP adjusted EBITDA expected to range from a $3.9 million loss to breakeven ($0.0).
• Management expects continued sequential revenue growth in the first quarter of 2027 and to achieve Adjusted EBITDA profitability in the first quarter of 2027.
• The company anticipates significant revenue growth and full-year profitability in 2027.

Business Segments and Product Lines:

• New project wins include a 750-megawatt (MW) project in North America scheduled to begin in 2027, a 175MW project in the U.S. from a new customer, and a 600MW portfolio in Puerto Rico with Linxon and Energy Transition Capital.
• In Europe, FTC Solar signed a Master Supply Agreement with AGR Renewables targeting 500 MW in the UK through 2028, with an initial 30 MW contracted.
• In India, the company contracted a 118 MW project with Tata Power Solar and a 121 MW project with Evren (backed by Brookfield).
• In Australia, an MOU was signed with six significant materials suppliers to strengthen local content capabilities.
• DNV independently validated that FTC Solar's tracker installs in 81 labor hours per megawatt, confirming industry-leading installation speed.
• Revenue is derived from both Product ($32.2 million in Q3) and Service ($0.6 million in Q3) lines.

Market and Competitive Landscape:

• The company reports growing momentum across North America, India, Australia, and Europe.
• Speed in the field is highlighted as a winning competitive advantage, validated by independent installation metrics.
• Strategic collaborations include a framework with Linxon and Hitachi Energy to jointly pursue utility-scale solar projects across North America and other markets.

Risks and Challenges:

• Backlog includes awarded orders where binding pricing may not yet be locked in, creating a risk that contracts may never be executed or may be executed at different dates or prices than anticipated.
• Forward-looking Non-GAAP guidance measures cannot be quantitatively reconciled to GAAP due to the inherent difficulty in forecasting project schedule changes, credit loss provisions, asset impairment charges, and restructuring costs.
• The company faces risks related to the execution of awarded but uncontracted projects and potential contract amendments or cancellations.

Management Commentary and Tone:

• CEO Anthony Carroll stated the company delivered a strong quarter with revenue up 25% sequentially and margins ahead of targets.
• Management expressed confidence in a path to EBITDA profitability in the first quarter of 2027, citing significant new awards and momentum.
• The tone indicates a strategic focus on process efficiencies and aligning headcount with strategic focus to adjust overhead costs.

Other Key Points:

• The company recorded a $19.5 million gain from the change in fair value of the warrant liability in Q3 2026, which was excluded from Adjusted EBITDA.
• Costs associated with a CEO transition in April 2026, including sign-on bonuses, and severance costs were excluded from Non-GAAP measures.
• A special stockholders' meeting was held in September 2025 to approve the issuance of shares upon exercise of New Warrants granted to Lenders.
• The company raised $3.3 million from the sale of common stock in the nine months ended September 30, 2026.
• Net cash used in financing activities was $4.6 million for the nine months ended September 30, 2026, primarily due to debt repayments.