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FTC Solar Inc. (NASDAQ:FTCI) reported significant revenue growth and strategic wins in its first quarter 2025 earnings presentation on May 1, though the company continues to operate at a loss. The solar tracking systems provider’s stock jumped 19.12% in premarket trading following the announcement, reflecting investor optimism about the company’s improving trajectory.
Quarterly Performance Highlights
FTC Solar delivered substantial revenue growth in Q1 2025, with revenue reaching $20.8 million, representing a 58% increase quarter-over-quarter and a 65% year-over-year improvement. This performance exceeded the company’s previous guidance of 44% sequential growth that was outlined during its Q4 2024 earnings call.
Despite the revenue gains, the company still reported a GAAP net loss of $3.8 million, or $0.38 per diluted share, and a non-GAAP net loss of $10.8 million, or $0.84 per diluted share. However, the company showed improvement in its gross margin, which increased by 1,121 basis points quarter-over-quarter, though it declined slightly (70 basis points) year-over-year.
As shown in the following financial performance chart:
The company has also made progress in reducing its operating expenses, with non-GAAP operating expenses decreasing to $6.6 million in Q1 2025, down from $7.4 million in Q4 2024 and $8.7 million in Q1 2024. This represents a continued focus on operational efficiency as the company works toward profitability.
Strategic Initiatives & Recent Wins
FTC Solar highlighted several significant contract wins that strengthen its long-term outlook. The company secured a 5-gigawatt supply arrangement with Recurrent Energy, a 500MW+ multi-year agreement with Strata Clean Energy, and a 1GW agreement with Dunlieh Energy. These agreements, totaling over 6.5GW, provide a substantial backlog and improved revenue visibility for the coming years.
The company also reported project awards of 330+ megawatts from GPG Naturgy and 280 megawatts from Rosendin, further expanding its project pipeline. Additionally, FTC Solar appointed Kent James as U.S. Chief Commercial Officer to strengthen its leadership team.
The following slide details these strategic wins:
On the financial front, FTC Solar received a $4.7 million earn-out on a prior investment in Q4 2024 and an additional $3.2 million earn-out in Q1 2025. The company also closed a $15 million note placement in Q4 and expects to close an upsized note placement for up to an incremental $10-15 million in Q2 2025, bolstering its financial position.
Product Enhancements
FTC Solar’s presentation emphasized significant enhancements to its 1P product line, which appears to be gaining traction in the market. Key improvements include high wind offerings extending up to 150mph, broader module compatibility across vendors and types, and reduced land grading requirements.
The company also highlighted increasing customer interest, with growing customer visits, bidding volume, and project size. A particularly notable development is the company’s plan to offer 100% domestic content capability starting in Q3 2025, positioning it to benefit from domestic content requirements in the Inflation Reduction Act.
The following slide illustrates these product enhancements and customer interest trends:
Financial Outlook & Guidance
Looking ahead to Q2 2025, FTC Solar provided guidance for revenue between $19-24 million, with a non-GAAP gross margin between -23.4% and -8.5%. The company expects operating expenses to be between $7.8-8.6 million, resulting in an adjusted EBITDA loss of $10-13.3 million.
The company reiterated that it expects 2025 revenue to be weighted toward the second half of the year and maintained its goal of achieving adjusted EBITDA breakeven on a quarterly basis sometime in 2025. This outlook suggests the company anticipates continued improvement in its financial performance as the year progresses.
As shown in the company’s guidance slide:
Market Context
FTC Solar’s Q1 2025 results come after a challenging Q4 2024, when the company reported a 43.1% year-over-year revenue decline. The significant revenue growth in Q1 2025 suggests the company may have indeed bottomed out in Q3 2024, as previously indicated by management.
The stock’s premarket surge of 19.12% to $3.80 on May 1, following a 6.73% decline the previous day, indicates that investors are responding positively to the company’s improving performance and strategic positioning. The company’s focus on securing long-term agreements, reducing operating expenses, and enhancing its product offerings appears to be gaining traction with the market.
While FTC Solar still faces challenges in achieving profitability, the substantial revenue growth and strategic wins outlined in its Q1 2025 presentation suggest the company is making progress on its path toward sustainable growth and eventual profitability.
Full presentation:
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