FTC Solar 2025 Q2 Earnings Misses Targets as Losses Widen

FTC Solar reported second-quarter 2025 earnings that missed expectations, with wider net losses and mixed guidance. While revenue surged 74.9% year-over-year, the company's net loss expanded by 26.1% compared to the prior year, and operating expenses hit a multi-year low. Management remains optimistic about long-term growth and product innovation, but the stock has seen volatility in the short term.

Revenue
FTC Solar generated revenue of $19.99 million in Q2 2025, reflecting a 74.9% year-over-year increase from $11.43 million in Q2 2024. This growth was driven by higher product volumes, although it marked a 3.9% decline compared to the previous quarter. Specifically, product revenue amounted to $15.87 million, while service revenue totaled $4.13 million, showcasing a diversified revenue stream.

Earnings/Net Income
The company reported a net loss of $-15.43 million in Q2 2025, representing a 26.1% increase from the $-12.24 million loss in Q2 2024. On a per-share basis, the loss widened to $-1.18 from $-0.97 in the prior year. The loss was driven by a 21.6% wider loss per share and a 3.2% increase in the loss from operations to $-11.50 million, reflecting ongoing cost challenges and operational inefficiencies. This indicates a deteriorating earnings performance, with EPS being a clear indicator of the company’s financial struggle.

Price Action
Following the earnings report, the stock price of FTC Solar declined across multiple timeframes, with a 3.75% drop during the latest trading day and a 6.02% decrease over the most recent full trading week. However, it managed a 9.11% increase month-to-date, showing some short-term resilience despite the negative post-earnings reaction.

Post-Earnings Price Action Review
Despite the revenue increase quarter-over-quarter, the post-earnings strategy of buying shares and holding for 30 days underperformed significantly. The strategy yielded a return of -84.83%, with a benchmark return of 0.00% and an excess return of -84.83%. The Sharpe ratio of -0.43 indicated a negative risk-adjusted return, while the maximum drawdown of 0% underscored the strategy's inability to mitigate losses. These results highlight the challenges investors face in capitalizing on the company’s revenue growth amidst broader financial and market uncertainties.

CEO Commentary
Yann Brandt, CEO of FTC Solar, emphasized the company’s progress in becoming a leading single-axis tracker provider, highlighting innovations such as a high-performance hail stow solution, terrain-following features, and compatibility with 2,000V systems. He expressed confidence in the company’s ability to scale, driven by the recent $75 million financing facility and a focus on cost optimization and expanding sales teams to drive customer education on constructability. The tone was optimistic, with a focus on long-term growth and operational execution, despite macroeconomic volatility.

Guidance
FTC Solar guided for Q3 2025 revenue between $18 million and $24 million, with non-GAAP gross profit between -$2.4 million and $600,000, non-GAAP operating expenses between $7.2 million and $7.9 million, and an adjusted EBITDA loss between -$10.8 million and -$6.8 million. The company expects a significant revenue ramp in Q4, driven by project financings and safe harbor clarity, with continued cost discipline and margin leverage as revenue grows. The $75 million financing facility is expected to provide flexibility and confidence in execution.

Additional News
On July 2, 2025, FTC Solar secured a $75 million strategic financing facility with Cleanhill Partners and other long-term investors, which is expected to provide ample runway to achieve profitability. Additionally, Tony Alvarez was appointed as an Independent Director, replacing Dean Priddy, who retired from the Board. The financing facility includes an initial term loan of up to $37.5 million, with $14.3 million funded in July 2025 and the remainder expected to close in Q3 2025, subject to shareholder approval. This strategic move, along with the appointment of Alvarez, is intended to strengthen the company’s financial and governance structure.