FTC Solar reported Q1 2025 GAAP revenue growth of over 65% year-on-year (YoY) and more than 57% sequential growth, reaching $20.8 million, above the guided range. The US-based solar tracker manufacturer attributes this surge to higher product volumes.
The company suffered a GAAP gross loss of $3.4 million during the quarter, representing 16.6% of total revenues, compared to a gross loss of $3.8 million or 29.1% of revenues in the previous quarter (see FTC Solar Achieves Q4 2024 Revenue Guidance).
During Q1 2024, its revenues totaled $12.58 million, with a GAAP gross loss of $2.1 million, representing 16.7% of the revenue (see US Solar Tracker Maker Meets Q1 2024 Revenue Guidance).
Its total contracted order backlog stood at approximately $482 million. The management said it has been able to bring down the inventory to more normalized levels during the quarter.
“Much of our recent momentum has been driven by the significant expansion of our innovative and differentiated 1P product line, including high wind offerings up to 150mph, terrain-following options, large stow range, compatibility across module manufacturers and types, and the upcoming availability of 100% domestic content,” said FTC Solar President and CEO Yann Brandt. “This compelling product line has helped drive significant increases in customer visits, bidding volume, average project size and customer access.”
Brandt is bullish about the company’s prospects, citing increased customer interest and activity, including a 60% YoY improvement in bid activity. Its 1P product represents 90% of all bidding activity, it added.
Nevertheless, TD Cowen’s Jeff Osborne pointed out that while the 1P platform is gaining share, FTC remains under-indexed to FSLR and domestic content tracker demand remains limited.
As for tariffs, FTC management said that tariffs and policy changes are causing uncertainty in the solar market, with some customers delaying decisions. The company is also adjusting its import plans to avoid problems if tariffs are reduced or removed. It aims to remain flexible by working closely with customers. The majority of the costs due to tariffs are passed through to the customers.
While it will start taking 100% domestic content offerings in the US in Q3 2025, ROTH analysts said that the company is working on a specially designed tracker for India, which is transitioning from a primarily fixed tilt to a tracker market. This will bring it more international traction in the future.
Guidance
FTC Solar now targets a sequential growth relative to the 1st quarter with Q2 2025 revenue guidance of $19 million to $24 million. It expects a negative non-GAAP adjusted EBITDA of $13.3 million to $10.0 million. It also projects a non-GAAP gross loss of $4.4 million to $2.0 million.
“We continue to expect 2025 revenue to be weighted toward the second half and continue to expect to achieve adjusted EBITDA breakeven on a quarterly basis within 2025,” stated the management.
