Tigo Energy settles patent litigation with SMA

CAMPBELL, Calif. - Tigo Energy, Inc. (NASDAQ: TYGO), a provider of solar and energy software solutions with a market capitalization of approximately $57 million, has announced a settlement with SMA Solar Technology AG and its American subsidiary, concluding a patent infringement lawsuit initiated on July 11, 2022. According to InvestingPro data, the company has shown significant momentum with a 14% return over the last week, despite facing profitability challenges. While the terms of the settlement remain confidential, the resolution marks the end of the legal dispute involving claims of SMA infringing on Tigo’s intellectual property.

The litigation was centered on Tigo’s rapid shutdown technology, which is designed to meet safety standards for photovoltaic (PV) system circuits on or in buildings, as required by the U.S. National Electric Code (NEC). Tigo’s technology complies with UL 1741, the safety standard for equipment used with distributed energy resources, and is an integral part of the company’s Module Level Power Electronics (MLPE) products. With annual revenue of $63 million, Tigo faces challenges with weak gross profit margins, as revealed in InvestingPro’s detailed financial analysis.

Tigo, which holds over 150 granted or pending patents, has a history of defending its intellectual property in the solar technology market. The company actively licenses its patented technologies to other solar equipment manufacturers.

Zvi Alon, CEO of Tigo Energy, expressed the importance of intellectual property protection for innovation and competitiveness in the industry. He welcomed the settlement as an affirmation of Tigo’s patent portfolio and its contributions to advanced solar technology.

The company’s energy intelligence platform monitors an average of 2.3GWh of daily solar production globally. Tigo’s MLPE devices, deployed since 2007, are used in various countries and are designed to optimize performance, monitor energy production, and ensure safety through rapid shutdown capabilities.

This settlement further underscores the value of Tigo’s contributions to the solar industry and its focus on protecting its technological advancements. The company’s patented rapid shutdown technology and other MLPE solutions are detailed on its virtual patent marking webpage. This news is based on a press release statement from Tigo Energy, Inc. While analysts anticipate sales growth in the current year, InvestingPro reveals several additional key metrics and insights about Tigo’s financial health and market position in its comprehensive Pro Research Report, available alongside 1,400+ other detailed company analyses.

In other recent news, Tigo Energy Inc. reported its financial results for the first quarter of fiscal year 2025, revealing a 92.2% increase in revenue compared to the previous year. Despite this significant growth, the company recorded a net loss of $7 million, which was an improvement from the $11.5 million loss in the prior year. Tigo Energy’s operating expenses decreased by 5.9% to $11.2 million, and the company provided guidance for the second quarter, projecting revenue between $21 million and $23 million. Analysts from Craig Hallum Capital Group and H.C. Wainwright participated in the earnings call, discussing the company’s market share gains and the impact of tariffs on revenues. Tigo Energy is actively working on refinancing a $50 million convertible note, which could impact its financial stability. The company is also exploring alternative battery cell sourcing from Korea and Japan to mitigate supply chain challenges. These developments indicate Tigo Energy’s ongoing efforts to navigate a competitive renewable energy sector while aiming for future profitability.

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