Tigo Energy 2025 Q1 Earnings Strong Revenue Growth but Losses Persist

Tigo Energy (TYGO) reported its fiscal 2025 Q1 earnings on May 06th, 2025. The company's revenue surged by 92.2% to $18.84 million compared to the previous year, demonstrating robust growth. However, despite narrowing losses, the company still reported a net loss of $7 million. The earnings results were in line with expectations, and the guidance for the upcoming quarter suggests potential improvement, with anticipated revenues ranging from $21 million to $23 million. The company continues to focus on reducing operating costs and inventory levels.

Revenue
Tigo Energy experienced significant revenue growth in the first quarter of 2025, reaching $18.84 million, a notable increase of 92.2% compared to $9.80 million in the same quarter of 2024.

Earnings/Net Income
Tigo Energy narrowed losses to $0.11 per share in 2025 Q1 from a loss of $0.19 per share in 2024 Q1. The company improved its net loss to $7 million, marking a 39.2% reduction from the previous year's $11.51 million loss. The EPS showed progress but remained negative.

Price Action
The stock price of Tigo Energy edged down 2.94% during the latest trading day, dropped 6.33% during the most recent full trading week, and increased 1.97% month-to-date.

Post-Earnings Price Action Review
Investors employing a strategy of buying Tigo Energy shares following a quarter of revenue growth and holding for 30 days have consistently faced losses. Over the past five years, this approach has resulted in an annualized return of -24.54%, significantly underperforming the broader market's S&P 500 return of 9.55%. Despite revenue increases, the strategy has failed to yield positive returns, suggesting that while Tigo Energy's growth in revenue is evident, it hasn't translated into stock value gains. This signals the need for a reassessment of investment strategies related to the company, considering the persistent challenges in translating operational success into shareholder value.

CEO Commentary
“We are pleased to report our fifth sequential increase in quarterly revenues and a 92% revenue increase on a year-over-year basis,” said Zvi Alon, Chairman and CEO of Tigo. He highlighted that the results reflect both an expansion of market share and an ongoing recovery in the solar market. Alon noted increased sequential growth across the EMEA, Americas, and APAC regions, attributing this to geographical and manufacturing diversification that mitigates tariff headwinds. He expressed optimism regarding financial performance improvements and indicated a focus on lowering operating costs and reducing inventory.

Guidance
For the second quarter ending June 30, 2025, Tigo anticipates revenues between $21 million and $23 million, with adjusted EBITDA expected to range from $(1.5) million to $0.5 million. For the full year 2025, the company continues to project revenues between $85 million and $100 million.

Additional News
In recent weeks, Tigo Energy has introduced significant enhancements to its product lineup, unveiling the new TS4-A MLPE series with increased power and current capabilities. The company showcased these advancements at Intersolar Europe, emphasizing their smart heating integration for residential solutions. Additionally, Tigo Energy announced a collaboration with Delta Networks, integrating Tigo's safety technologies into Delta's solar product line. These developments underscore Tigo's commitment to innovation and strengthening its position in the solar market.