Tigo Energy — Third Quarter 2026 Earnings Summary

Financial Performance:

• Third quarter 2026 revenue was $24.0 million, a 21.5% decrease compared to $30.6 million in the third quarter of 2025.
• GAAP net income was $0.4 million for the third quarter of 2026, compared to a GAAP net loss of $2.2 million in the same period last year.
• Non-GAAP net income was $1.6 million for the third quarter of 2026, compared to a non-GAAP net loss of $0.3 million in the third quarter of 2025.
• Adjusted EBITDA was $1.5 million for the third quarter of 2026, down from $2.9 million in the third quarter of 2025; this figure includes a $0.8 million tariff refund and $0.4 million in bad debt expense.
• Gross margin improved to 46.2% in the third quarter of 2026 from 42.7% in the third quarter of 2025, driven by a $0.8 million tariff refund included in gross profit.
• Operating expenses totaled $11.2 million for the third quarter of 2026, a 10.0% decrease compared to $12.4 million in the third quarter of 2025.
• Cash and cash equivalents increased to $16.8 million as of September 30, 2026, from $7.7 million as of December 31, 2025.
• Long-term debt (borrowings under revolving credit facility) was $2.5 million as of September 30, 2026, compared to zero debt as of December 31, 2025.
• Inventory decreased by $13.2 million to $18.1 million since year-end 2025.
• For the nine months ended September 30, 2026, revenue totaled $74.6 million compared to $73.5 million for the same period in 2025.

Guidance and Future Outlook:

• Fourth quarter 2026 revenue is expected to be between $20 million and $22 million.
• Fourth quarter 2026 Adjusted EBITDA (loss) is expected to be between $(3.0) million and $(1.5) million.
• Full-year 2026 revenue outlook has been updated to a range of $95 million to $97 million.
• Management plans to invest in growing markets in 2027, specifically Eastern Europe and Australia, to expand market share.
• The company anticipates a gradual market recovery in Europe and expects U.S. optimized inverter partner revenues to exceed the $0.8 million recognized in Q3 during the fourth quarter.

Business Segments and Product Lines:

• MLPE (Module Level Power Electronics) represented $22.1 million, or 92.0% of third-quarter revenue.
• GO ESS revenue was $1.3 million, representing 5.4% of quarterly revenue, down 58.6% year-over-year and 40.6% sequentially due to lower sales volumes in the U.S. and Italy.
• During the third quarter of 2026, the company shipped 698 thousand units, or 517 MW, of MLPE.
• EMEA accounted for 76.5% of third-quarter revenue; the Czech Republic and Germany represented 19.6% and 19.3% respectively.
• EMEA revenue declined 14.8% year-over-year as the market adjusted to a reduced subsidy environment.
• Poland and Spain grew 41.2% and 103.2% year-over-year, respectively, while Italy and the United Kingdom saw significant declines.
• Americas and LATAM accounted for 16.5% of revenue, with U.S. revenue down 51.4% year-over-year due to the expiration of the IRS Section 25D tax credit.
• APAC contributed 7.0% of revenue, growing 56.3% year-over-year, led by 121.1% growth in Australia.
• The company recognized approximately $0.8 million of revenue from shipments to its U.S. optimized inverter partner during the quarter.

Market and Competitive Landscape:

• The U.S. market is adjusting to the expiration of the IRS Section 25D tax credit at the end of 2025.
• The European market continues to adjust to a reduced subsidy environment.
• The U.S. optimized inverter partner's launch was shifted to the fourth quarter, with potential impacts on the timing of future orders.
• The company faces a highly competitive and evolving solar industry environment.

Risks and Challenges:

• Risks include slower-than-anticipated market recovery in Europe and other solar markets.
• There is a risk of slower adoption and sales of GO ESS in the United States and Italy.
• Potential delays in the U.S. optimized inverter partner's go-to-market launch or ordering could reduce or defer anticipated revenue.
• The company faces risks related to changes in government subsidies, tax incentives, and trade tariffs.
• Customer credit risk and bad debt charges remain a concern, evidenced by a $0.4 million charge related to a single European customer in Q3 2026.
• The company must maintain liquidity and a stronger balance sheet while managing inventory and manufacturing requirements.

Management Commentary and Tone:

• CEO Zvi Alon stated that third-quarter revenue was within guidance and GAAP net income was achieved, while Adjusted EBITDA exceeded the high end of guidance.
• Alon noted that results reflected three dynamics: a gradual market recovery in Europe, a slower ramp of GO ESS, and the shift of the U.S. optimized inverter partner's launch to Q4.
• CFO Bill Roeschlein highlighted a 10.0% year-over-year decline in operating expenses and a $13.2 million reduction in inventory.
• Management expressed confidence that concentrated investments in successful regions and a scalable cost structure position the company for profitable growth as volumes recover.

Other Key Points:

• The company sold intangible assets, generating a gain of $355,000 and proceeds of $2.75 million during the nine months ended September 30, 2026.
• The company raised $14.25 million from the issuance of common stock and $6.67 million from borrowings under a revolving credit facility during the nine months ended September 30, 2026.
• A conference call was held on November 4, 2026, featuring CEO Zvi Alon and CFO Bill Roeschlein.
• The company reported a $0.8 million tariff refund related to prior periods included in Q3 2026 results.