FTC Solar secures $75 million strategic financing facility

AUSTIN - FTC Solar, Inc. (NASDAQ:FTCI), a provider of solar tracker systems, announced Monday it has entered into a new $75 million strategic financing facility with Cleanhill Partners and other investors including AV Securities. The financing comes at a crucial time for the company, which according to InvestingPro data, has been rapidly burning through cash with a negative free cash flow yield.

The company received an initial $14.3 million on July 2, with an additional $23.2 million expected to close in the third quarter of 2025, subject to shareholder approval. The facility includes potential for up to $37.5 million in additional future funding upon mutual agreement between the company and investors. Despite operating with moderate debt levels, FTC Solar’s stock has shown significant momentum, delivering a 54% return over the past year.

"This investment adds significant strength to our balance sheet, ample runway to achieve profitability, and incremental comfort to our global customers," said Yann Brandt, President and CEO of FTC Solar.

Ash Upadhyaya and Rakesh Wilson, Managing Partners at Cleanhill Partners, expressed confidence in FTC Solar’s technology platform and future prospects.

The company plans to use proceeds for balance sheet support, growth acceleration, and general corporate purposes. FTC Solar expects to hold a special meeting of stockholders in early September 2025 to approve the full exercise of warrants issued in connection with the financing facility. For deeper insights into FTC Solar’s financial health and growth prospects, investors can access comprehensive analysis through InvestingPro, which offers exclusive ProTips and detailed metrics for over 1,400 US stocks.

The announcement comes after FTC Solar recently added more than 6.5 gigawatts of new business with Tier 1 customers, according to the company’s press release statement.

FTC Solar provides solar tracker systems that dynamically optimize solar panel orientation to the sun, increasing energy production at solar power installations.

In other recent news, FTC Solar reported its first-quarter 2025 earnings, highlighting a substantial revenue increase of 58% compared to the previous quarter and 65% year-over-year, reaching $20.8 million. Despite a GAAP net loss of $3.8 million, the company continues to focus on strategic growth initiatives within the solar energy sector. FTC Solar has set a revenue target between $19 million and $24 million for the second quarter of 2025, with expectations for the second half of the year to exceed the first half. The company has also announced a contracted backlog of $482 million, indicating positive future prospects. Additionally, FTC Solar held its Annual Meeting of Stockholders, where all nominated directors were elected, and the appointment of BDO USA, P.C. as the independent auditor was ratified. The company continues to reduce operating expenses, marking the sixth consecutive quarter of reductions. Analysts from firms like TD Cowen and Roth Capital Partners have shown interest in the company’s strategies to mitigate tariff impacts and supply chain challenges. FTC Solar remains committed to expanding its market share with its 1P tracker solution, despite ongoing industry challenges.

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