Tigo Energy Q2 2025 Earnings Report

Tigo Energy EPS Results

• Actual EPS: -$0.07
• Consensus EPS: -$0.09
• Beat/Miss: Beat by +$0.02
• One Year Ago EPS: N/A

Tigo Energy Revenue Results

• Actual Revenue: $24.06 million
• Expected Revenue: $21.48 million
• Beat/Miss: Beat by +$2.58 million
• YoY Revenue Growth: N/A

Tigo Energy Announcement Details

• Quarter: Q2 2025
• Date: 7/29/2025
• Time: After Market Closes
• Conference Call Date: Tuesday, July 29, 2025
• Conference Call Time: 4:30PM ET

Tigo Energy (NASDAQ:TYGO) provides solar and energy storage solutions for the solar industry. It offers module level power electronics (MLPEs) to maximize the energy output of individual solar modules. The company also provides GO Energy Storage Systems that provide solar energy storage management capabilities; and Energy Intelligence (EI) platform, which provides monitoring and energy demand forecasting capabilities. In addition, it offers GO Battery that provides energy resilience in the event of a grid outage and optimizes energy consumption based on rate plans for home energy needs; GO Inverter, which offers energy conversion for home consumption or export to the grid; GO Link/Automatic Transfer Switch (ATS), a component for battery backup of on-grid systems; and GO Electric Vehicle (EV) Charger to reduce transportation costs. The company serves residential, commercial, and utility sectors through distributors and solar installers in North and South America, Europe, the Middle East, Africa, and the Asia-Pacific regions. Tigo Energy, Inc. was founded in 2007 and is headquartered in Campbell, California.

Tigo Energy Q2 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Revenue rose 27.7% sequentially and 89.4% year-over-year to $24.1 million, beating Q2 guidance, with Q3 backlog already exceeding Q2 results as capacity ramps up.
• Positive Sentiment: Adjusted EBITDA was $1.1 million positive and cash and equivalents increased by $7.7 million, demonstrating strong operating leverage and spending discipline.
• Positive Sentiment: Q3 revenue is guided to $29 million–$31 million and adjusted EBITDA to $2 million–$4 million, while full-year revenue guidance was raised to $100 million–$105 million with expected GAAP operating profitability at the high end.
• Negative Sentiment: Cash, cash equivalents, and marketable securities totaled $28 million, but the company faces a $50 million convertible debt maturing in January 2026 and is still evaluating refinancing options.
• Neutral Sentiment: By region, EMEA accounted for 75.9% of Q2 revenue, Americas 19.1%, and APAC 5%, while MLPE products represented 85.7% of total sales.

Presentation

[Operator]

Good afternoon. Welcome to TIGO Energy Fiscal Second Quarter twenty twenty five Earnings Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. Joining us today from TIGO are Zavie Alon, CEO and Bill Rauschline, CFO.

[Operator]

A reminder, this call is being recorded. I would now like to turn the call over to Bill Rauschlein, Chief Financial Officer. Sir, please go ahead.

[Bill Roeschlein, CFO at Tigo Energy]

Thank you, Michelle, and it's a pleasure to join you today. Also with us is Violon, our CEO. We'd like to remind everyone that some of the matters we'll discuss on this call, including our expected business outlook, our ability to increase our revenues, and achieve and maintain profitability and our overall long term growth prospects, expectations regarding a continued recovery in our industry, statements about demand for our products, our competitive position and market share, the impact of tariffs, our current and future inventory levels, inventory supply and its impact on our customer shipments, statements about our revenue, adjusted EBITDA and GAAP operating results for the 2025, and our revenue and adjusted EBITDA for the full fiscal year 2025, statements about our existing backlog and bookings, statements about our ability to restock inventories and increase our capacity in response to increased demand, statements about our ability to refinance our outstanding indebtedness and the expected benefits thereof, our ability to penetrate new markets and expand our market share, including expansion in international markets and investments in our product portfolio are forward looking. And as such are subject to known and unknown risks and uncertainties, including but not limited to those factors described in today's press release and discussed in the Risk Factors section of our most recent annual report on Form 10 ks, our quarterly report on Form 10 Q for the fiscal quarter ended 06/30/2025, and other reports we may file with the SEC from time to time.

[Bill Roeschlein, CFO at Tigo Energy]

These risks and uncertainties could cause actual results to differ materially from those expressed on this call. These forward looking statements are made only as of the date when made. During our call today, we will reference certain non GAAP financial measures. We include non GAAP to GAAP reconciliations in our press release, furnished as an exhibit to our Form eight ks. The non GAAP financial measures provided should not be considered a substitute for or superior to the measures of financial performance prepared in accordance with GAAP.

[Bill Roeschlein, CFO at Tigo Energy]

Finally, I would like to remind everyone that this conference call is being webcast and a recording will be made available for replay on TIGO's Investor Relations website at investors.tigonergy.com. With that, I'd like to now turn the call over to TIGO's CEO, Zvi Alon. Zvi?

[Zvi Alon, Chairman & CEO at Tigo Energy]

Thank you, Bill. To begin today's discussion, I will highlight key areas in our recent financial and operational performance before turning the call over to our CFO, Bill Rochelein. He will discuss our financial results for the second quarter in more depth, as well as provide our guidance for the third quarter and increased financial guidance for the full year of 2025. After that, I will share some closing remarks, tell you about our outlook, and then open the call for questions from our analysts. Approximately two years ago, Tygo became a public company, and although the industry has had to endure some unexpected circumstances along the way, we believe that the value proposition that TIGOR brings to this market has not changed.

[Zvi Alon, Chairman & CEO at Tigo Energy]

Competitor solutions have historically forced solar system designers and installers to compromise under the one size fits all umbrella. These compromises often led to solar installations that are less efficient, less flexible, less reliable, and more expensive than open systems, open architecture solutions that TIGR enables. Our MLPE enables solar system designers to install flexible, best in class solar systems without the need to accept compromises such as power clipping, low energy conversion, efficiencies, and high costs. We believe our value proposition in this market has not changed and that the growth we are experiencing in a challenging market is evidence that our market share is increasing and sustainable. For the 2025, I am pleased to report our sixth increase in sequential quarterly revenue growth, growing 27.7% sequentially and 89.4% on a year over year basis.

[Zvi Alon, Chairman & CEO at Tigo Energy]

Exceeding the high point of our second quarter guidance. We ended the quarter with a total of $24,100,000 and our existing backlog and bookings that are expected to ship in the third quarter currently exceed our revenue results for the second quarter, and we are ramping up capacity. In addition, we shipped 646,000 units of four seventy seven megawatts of MLPE, and based on publicly reported figures and estimates, we believe these figures represent increased market share gain for Tygo during the quarter. I'm also pleased to report 1,100,000 in positive adjusted EBITDA and an increase in cash, cash equivalent and marketable securities of $7,700,000 for the quarter. This performance underscores the leverage in our operating model as we grow the company while maintaining spending discipline with operating expenses.

[Zvi Alon, Chairman & CEO at Tigo Energy]

Finally, we look ahead to the 2025 and into 2026. We are excited about our product road map and expect to make several new product announcements in the future. And with that, I will turn it over to Bill. Bill?

[Bill Roeschlein, CFO at Tigo Energy]

Thank you, Zvi.

[Bill Roeschlein, CFO at Tigo Energy]

Turning now to our financial results for the second quarter ended 06/30/2025. Revenue for the 2025 increased 89.4% to $24,100,000 from $12,700,000 in the prior year period. As we mentioned, this represents significant growth in a challenging market. On a sequential basis, revenues increased 27.7% with improved results coming from many countries in the EMEA region, including Germany, The Czech Republic and Poland. By region, EMEA revenue was 18,300,000.0 or 75.9% of total revenues.

[Bill Roeschlein, CFO at Tigo Energy]

Americas revenue was 4,600,000.0 or 19.1% of total revenues. And APAC revenue was $1,200,000 or 5% of total revenues. By product family, the 2025 had MLPE revenue representing $20,600,000 of revenue, or 85.7% of total revenues. Go ESS represented 2,300,000.0 or 9.4% of total revenues and PREDICT plus and licensing revenue represented 1,200,000.0 or 4.9% of total revenues during the quarter. Gross profit for the 2025 was $10,800,000 or 44.7% of revenue compared to a gross profit of $3,900,000 or 30.4% of revenue in the comparable year ago period.

[Bill Roeschlein, CFO at Tigo Energy]

During the quarter, gross margins benefited by four fifty basis points from the sale of a reserve Go ESS inventory. Operating expenses for the second quarter were flat at $12,300,000 compared to the prior year period. Operating loss for the second quarter decreased by 82.1% to $1,500,000 compared to $8,400,000 in the prior year period. GAAP net loss for the second quarter was $4,400,000 compared to a net loss of $11,300,000 for the prior year period. Adjusted EBITDA for the second quarter was $1,100,000 compared to an adjusted EBITDA loss of $6,400,000 in the prior year period.

[Bill Roeschlein, CFO at Tigo Energy]

These results reflect a combination of strong top line performance and the operating leverage in our business model. As a reminder, adjusted EBITDA is a non GAAP measure that represents net loss as adjusted for interest and other expenses, net income tax depreciation and amortization expense, stock based compensation and M and A transaction expenses. Primary shares outstanding were 62,300,000.0 for the 2025. Turning to the balance sheet. Accounts receivable net remained consistent at 10,400,000.0 between the first and second quarter, and increased from 6,900,000.0 in the year ago comparable period.

[Bill Roeschlein, CFO at Tigo Energy]

Inventories net were sequentially flat at $18,900,000 at the end of the second quarter, compared to $51,300,000 in the year ago comparable period. At this point, we have largely resolved our excess inventory balance and our ramping capacity with our contract manufacturers to address increasing demand. Cash, cash equivalents and short and long term marketable securities totaled $28,000,000 at 06/30/2025. On a sequential basis, cash increased by $7,700,000 Turning to short term debt. The gross amount of our convertible debt, which will mature in January 2026, totaled $50,000,000 at quarter end.

[Bill Roeschlein, CFO at Tigo Energy]

We continue to evaluate refinance options on the debt and are engaged in discussions with certain parties regarding a refinance or other transactions to facilitate payment or other resolution in light of its upcoming maturity. We are looking at a combination of alternatives that will support the company's growth and maximize value. We believe that the improvement in our financial performance this year will enable us to address our convertible debt on terms that will be beneficial to all stakeholders, including our shareholders, and we will apprise you when we have more to announce. Turning now to our financial guidance for the 2025, and increased financial guidance for the full year of 2025. As a reminder, TIGO provides quarterly guidance for revenue, as well as adjusted EBITDA, as we believe these metrics to be key indicators for the overall performance of our business.

[Bill Roeschlein, CFO at Tigo Energy]

For the 2025, we expect revenues and adjusted EBITDA to be in the following range. We expect revenues in the third quarter ended 09/30/2025, to range between $29,000,000 and $31,000,000 As Vee noted, the existing backlog and bookings that are expected to ship in the third quarter currently exceeds our revenue results for the second quarter, and we are replenishing inventories and increasing capacity in response to increased demand. We expect adjusted EBITDA to range between $2,000,000 and $4,000,000 Our guidance also incorporates GAAP operating profitability at the high end of the adjusted EBITDA guidance range. Based on our current demand forecast, we are raising our 2025 financial outlook for the full year and now expect revenue to be between $100,000,000 and $105,000,000 That completes my summary. I'd like to now turn the call back over to Zvi for final remarks. Zvi?

[Zvi Alon, Chairman & CEO at Tigo Energy]

Thanks, Bill. We look ahead. I'm happy to say that even against the backdrop of continued economic uncertainty, we believe that our track record of six consecutive quarters with top line growth will continue for the remainder of 2025 as demand for our solutions continue to return. Our backlog and bookings to date are bolstering our confidence we firmly believe in the growth perspective of our business and look forward providing additional updates in the coming quarters. With that, operator, please open the call for Q and A.

[Operator]

Thank you. The first question comes from Philip Shen with Roth Capital Partners. Your line is now open.

[Philip Shen, MD & Senior Research Analyst at Roth Capital Partners, LLC]

Hey guys, great execution there. Thanks for taking the questions. Wanted to see if you could provide a little more color on how margins might trend in Q3 and Q4. And then do you have a view on 2026 yet or is it still too early? Thanks.

[Bill Roeschlein, CFO at Tigo Energy]

So, we for the balance of the year, we expect to be in the low 40s as we are presently. And we expect to be mostly depleted from any of the reserved GOESSS inventory that is being sold off by the end of the year for the most part. As you already know, our target model is 40% on the gross margin. And that is where we performed the last time we started getting into this revenue geography. And so, that's how I would think about the business as I look into 2026.

[Bill Roeschlein, CFO at Tigo Energy]

Currently, as it stands, we're seeing solid growth trajectory here. It's obviously we're not providing guidance on this call today related to 2026, but we're seeing some positive trends out there.

[Philip Shen, MD & Senior Research Analyst at Roth Capital Partners, LLC]

Great. Thanks, Bill. And sorry if I missed this as I'm bouncing between earnings. Can you share what the international and U. S.

[Philip Shen, MD & Senior Research Analyst at Roth Capital Partners, LLC]

Revenue split was for Q2, what you expect it to be for Q3, and then any color you can provide for 2026? Do you expect that SKU or mix to shift meaningfully, maybe perhaps to Europe more so than The U. S. We get into the next calendar year? Thanks.

[Bill Roeschlein, CFO at Tigo Energy]

Sure. So, for Q2, we had U. S. Rose 17% of total revenues. And for the last six months, it was trending a little bit under 20.

[Bill Roeschlein, CFO at Tigo Energy]

So 80% of our revenues is coming from outside of The US market. And with the EMEA region representing 65% to 75%. We would expect that trend to continue. I think the conventional wisdom is that The US will shrink next year, so than being than it has this year with, you know, obviously the new congressional bill. But we're seeing a lot of traction in the international market and national front.

[Bill Roeschlein, CFO at Tigo Energy]

That said, with what other competitors may be seeing, our results in The US market have been fairly stable, actually. We've been successful in the longer tail of that market. And, you know, we are a smaller player. And so, we have the ability to to pick up share and and gain growth that way.

[Philip Shen, MD & Senior Research Analyst at Roth Capital Partners, LLC]

Thanks, Bill. Go ahead, Zvi.

[Zvi Alon, Chairman & CEO at Tigo Energy]

No, no, I'm fine. Bill covered it pretty much. Mean, our exposure to the slowness here in The US is not severe.

[Operator]

And our next question comes from Amit Dayal with H. C. Wainwright. Your line is open.

[Amit Dayal, MD - Equity Research at H.C. Wainwright & Co.]

Thank you. Good afternoon, everyone. With respect to the EBITDA outlook, Bill, for the year, should we assume we can potentially end the year positive EBITDA this year?

[Bill Roeschlein, CFO at Tigo Energy]

I think that would be expected that we would have a positive EBITDA year at this point. Yes.

[Amit Dayal, MD - Equity Research at H.C. Wainwright & Co.]

Okay. Thank you. And then you said The US is potentially slowing next year. In that context, do you think there's enough strength in demand to make up for any sort of gaps from The US side from the international markets?

[Bill Roeschlein, CFO at Tigo Energy]

So what's interesting about, I think, that question or situations that we you know, there's been changes with the congressional bill and whatnot, but we haven't had we haven't had 45X credits. We haven't had domestic production. We haven't been able to take advantage of that situation. We we, there's a couple of really large AVLs that we haven't been on. And we've been able to achieve our success through the longer tail of the market and, and gaining share that way.

[Bill Roeschlein, CFO at Tigo Energy]

And so I think that there's a little bit less hurt to be to be had by players like us as we kind of approach the market and go to market that way in The US as opposed to those who already have dominant share and may have have benefits that are being taken away by the new the new BBB bill. So that's why I think we've seen stable, steady growth achievement here in The US market. And I think there's certain actions that were certain pockets of the market that we're going after. We recently, talked about the repower market. We did a PR on that recently.

[Bill Roeschlein, CFO at Tigo Energy]

And so even in a challenging market or a declining market, we're able to pick up share and grow that way. And so that's what we're seeing currently. And I think that we can grow even in even if the market shrinks in The US. See?

[Amit Dayal, MD - Equity Research at H.C. Wainwright & Co.]

Interesting. Yeah. Because I was just trying to see if, you know, if The US market doesn't deteriorate too much, you know, or less than maybe what you think next year, that could provide additional upside to what you may already be sort of looking at for how next year is set up for you.

[Zvi Alon, Chairman & CEO at Tigo Energy]

That is absolutely 100% correct. We are holding our position as we speak right now despite the challenges. And as Bill said, we are not the biggest fish in that market, but we are capturing areas where it's harder for the other guys to capture. And so therefore, only are we maintaining our position, but we are growing market share.

[Amit Dayal, MD - Equity Research at H.C. Wainwright & Co.]

Okay. Just last one for me, guys. So as your revenues are starting to improve sequentially from here, how should we think about any operating cost increases? I know you indicated there is, you know, looks like more room for operating leverage, but from a cost perspective, do you think we should just maintain our expectations to the current levels?

[Bill Roeschlein, CFO at Tigo Energy]

So, yeah, you you can see we we plan to maintain operating expense discipline. On a non cash basis, stock comp did go up a little bit as reflected in the EBITDA reconciliation, and that may, cause the OpEx number to drift a little bit higher than where some models may indicate. But the cash OpEx is going to be slightly up with growth, but relatively flat. So, it's definitely going to be much less than 50% of any growth that we see next year.

[Amit Dayal, MD - Equity Research at H.C. Wainwright & Co.]

Understood. Okay.

[Operator]

The next question comes from Eric Stine with Craig Hallum Capital Group. Your line is open.

[Eric Stine, Senior Research Analyst at Craig-Hallum Capital Group LLC]

Zvi. Hi, Bill. Hi. Hi, Eric. Hey.

[Eric Stine, Senior Research Analyst at Craig-Hallum Capital Group LLC]

So maybe, I mean, clearly, great trends in Europe and it looks like market share gains are kind of the predominant factor. But just would love to get a more detailed breakdown or your thoughts on those market share gains versus recovery in some of the key markets? You mentioned Poland, you mentioned The Czech Republic, I guess I'm missing another one of Germany. Maybe where you stand in the recovery in those markets as well.

[Bill Roeschlein, CFO at Tigo Energy]

So in Germany, Germany was a very significant strong performer. It's recovering for us with sequential growth for multiple quarters now. The Czech Republic has been coming from a smaller base, but it's now been also growing substantially. That's the market where there isn't any duopoly. It's a fragmented market.

[Bill Roeschlein, CFO at Tigo Energy]

It's a great market for us to be able to participate and take share in. And Poland is a similar situation where it very strong coming into the mid-twenty twenty three area. It shrunk a lot, I think, for all participants, players in the market. And as of late that actually was a big contributor in the quarter and it's been relatively quiet up until this point. Italy and United Kingdom are the players we didn't really mention but they are performing very well from a macro renewable perspective.

[Bill Roeschlein, CFO at Tigo Energy]

There's other pockets of Europe that you know I haven't mentioned countries and you know those are probably countries that have yet to really come into a growth curve on their own. So Netherlands, I've mentioned them as Naples, it doesn't seem like it's been recovering at the same pace as these other countries.

[Zvi Alon, Chairman & CEO at Tigo Energy]

I would like to highlight also that we have stated this in the past multiple times. One big differentiator that our products provide the market is we are segment not we're not dependent on any one specific segment. So residential, C and I, or utility scale use the same exact identical skew, the same order. So if there are any witnesses, let's say Germany in one segment versus the other, are less impacted. Similarly, in The Czech Republic, we see an increase in the residential the large utility scale.

[Zvi Alon, Chairman & CEO at Tigo Energy]

Others cannot react to it as quickly as we. We are just naturally there because it's the same product that works across the board. Now I can tell you that the behavior of different markets is not identical, and that's what really positions us to be much stronger, and therefore we're grabbing market share from others.

[Eric Stine, Senior Research Analyst at Craig-Hallum Capital Group LLC]

Got it. That's helpful. And then, I mean, obviously market share gains and as you kind of increase the capture rate that you might have with some of your distributors, I mean, do you you mentioned open architecture. I mean, do you attribute it how do you kind of attribute the breakdown? Is it that?

[Eric Stine, Senior Research Analyst at Craig-Hallum Capital Group LLC]

Is it efforts on your part to drive awareness, drive that, you know, increase penetration with those distributors? Maybe talk about that.

[Zvi Alon, Chairman & CEO at Tigo Energy]

So, we first of all, more people know about us and the value proposition, so it becomes a bit easier. With the distribution, we did not add any one significant distributor to our host of distributors globally, and they are all long time with us, have been with us for quite some time. So we are doing various plans and programs, executing marketing programs with them to improve our footprint within their space, and simultaneously we are taking action to spend some energy with the installers themselves to try and actually get them a bit more comfortable and educated about our solutions. It's a combination of these two efforts which are resulting in the increase that we see in the market. Our peak business is very high, not just with the solution, but also with existing customers, installers.

[Eric Stine, Senior Research Analyst at Craig-Hallum Capital Group LLC]

Okay. Got it. With that, I guess I will jump back in the queue. Thanks.

[Zvi Alon, Chairman & CEO at Tigo Energy]

Thank you.

[Operator]

At this time, I am showing no further questions in the queue. And I would like to turn the call back over to Mr. Alon for closing remarks.

[Zvi Alon, Chairman & CEO at Tigo Energy]

Thank you. At this time, this concludes the question and answer session. I'd now like to turn the call back to Mr. To myself. Thanks again everyone for joining us today.

[Zvi Alon, Chairman & CEO at Tigo Energy]

I especially want to thank our dedicated employees for their ongoing contribution as well as our customers and partners for their continued hard work. I also want to thank the investors for their continued support. Operator?

[Operator]

Thank you for joining us today for Tyco's second quarter twenty twenty five earnings conference call. You may now disconnect.

Participants

Executives

• Bill Roeschlein, CFO
• Zvi Alon, Chairman & CEO

Analysts

• Philip Shen, MD & Senior Research Analyst at Roth Capital Partners, LLC
• Amit Dayal, MD - Equity Research at H.C. Wainwright & Co.
• Eric Stine, Senior Research Analyst at Craig-Hallum Capital Group LLC