Tigo Energy Q1 Earnings Call Highlights

Key Points

• Q1 revenue rose 33.7% year‑over‑year to $25.2M, led by strength in EMEA (69.5% of sales) and with MLPE products making up 82.4% of revenue while GO ESS contributed 15.8%.
• Profitability improved as gross margin expanded to 42.8% and adjusted EBITDA loss narrowed to $0.5M, though operating loss was $4.0M and operating expenses were weighed by a $1.0M bad‑debt charge from a bankrupt European distributor.
• Liquidity was bolstered by a ~$15M registered direct offering (cash ended at $11.6M) and a new $10M Wells Fargo credit facility; management guided Q2 revenue of $30–32M with adjusted EBITDA of $1–3M and maintained FY revenue targets of $130–135M, citing the EG4 U.S. partnership, GO ESS rollout, and expanding utility‑scale pipeline as key catalysts.

Tigo Energy NASDAQ: TYGO opened fiscal 2026 with first-quarter revenue growth and improving profitability metrics, as management pointed to strength in Europe and outlined catalysts it expects to support results through the rest of the year.

First-quarter revenue rose 34% year over year

Chairman and CEO Zvi Alon said the company delivered “a strong start to 2026, despite the typical weather-related seasonality in our end markets.” For the quarter ended March 31, 2026, Tigo reported revenue of $25.2 million, up 33.7% from $18.8 million in the first quarter of 2025. CFO Bill Roeschlein noted revenue declined 16.1% sequentially, even with improvement in several EMEA countries.

By geography, Roeschlein said EMEA revenue was $17.5 million, representing 69.5% of total revenue, and down 3.2% sequentially. Americas revenue was $5.3 million (20.9% of revenue) and down 43% sequentially, while APAC revenue was $2.4 million (9.6% of revenue) and down 10.2% sequentially.

Alon attributed some of the quarter’s regional dynamics to timing and incentives. In the Americas, he said results were lower sequentially “as the buyers accelerated purchases late last year ahead of the expiration of Residential Clean Energy tax credit.” In EMEA, he highlighted “seasonally stronger performance on a year-over-year basis,” and called out country-level strength including Italy, which he said grew 140.8% sequentially, and Australia in APAC, which he said grew 64.3% versus the fourth quarter.

Product mix: MLPE dominated, but GO ESS contributed

Roeschlein broke out revenue by product family, with MLPE generating $20.8 million, or 82.4% of total revenue. GO ESS represented $4.0 million, or 15.8%, while Predict+ contributed $0.5 million, or 1.8%.

Alon also said the company’s enhanced Tigo GO Battery is now available in the European residential market, describing it as offering storage capacity “up to 47.9 kWh” and including “integrated heating for cold weather operations.”

Margins improved; bad debt expense weighed on operating expenses

Gross profit was $10.8 million, or 42.8% of revenue, compared with $7.2 million, or 38.1% of revenue, a year ago. Roeschlein said the improvement was “largely due to the absence of warranty-related charges in the most recent quarter compared to the year-ago period.”

Operating expenses rose 18.4% year over year to $13.2 million. Roeschlein said the increase was driven primarily by “bad debt expense of $1 million as a result of the bankruptcy of a European distributor,” adding that the company expects “a portion of this amount to be recoverable through insurance in a future period.”

Tigo’s operating loss for the quarter was $4.0 million, and GAAP net loss was $1.8 million, compared to a $7.0 million net loss in the prior-year period. Roeschlein also introduced a non-GAAP net loss metric that excludes stock-based compensation, which he said totaled $0.1 million versus $5.4 million in the year-ago quarter. Adjusted EBITDA loss improved to $0.5 million from a $2.0 million loss a year earlier.

Liquidity: cash increased on $15 million offering; credit facility added

On the balance sheet, Roeschlein said accounts receivable net rose to $14.2 million from $13.9 million in the prior quarter. Inventories net declined $6.5 million, or 20.7%, to $24.8 million from $31.3 million in the fourth quarter.

Cash, cash equivalents, and short- and long-term marketable securities totaled $11.6 million at quarter-end. Roeschlein said cash increased $3.9 million sequentially after the company closed “a registered direct offering of approximately $15 million” during the quarter. He also said Tigo put in place a Wells Fargo credit facility at the end of the quarter that provides up to $10 million of availability based on accounts receivable and inventory, with no borrowings taken in the first quarter.

Asked about inventory levels and supply chain flexibility, Roeschlein said the company operates in “an eight-week factory to customer supply chain environment,” and it targets “90 to 100 days of inventory.” He said reducing inventory was part of managing working capital and added that Tigo can scale manufacturing capacity, noting, “We can add another line if and when we need to.”

Guidance raised expectations for Q2 profitability; full-year revenue outlook maintained

For the second quarter ended June 30, 2026, Roeschlein guided to revenue of $30 million to $32 million and adjusted EBITDA of $1 million to $3 million. For the full year, he reiterated the company expects revenue of $130 million to $135 million.

Management outlined several operational themes and potential drivers for 2026:

• EG4 partnership in the U.S.: Alon said the partnership is “just now beginning to kick off with the first deliveries occurring this month,” and is expected to provide the U.S. market with “Section 45X and Section 48E ITC credit-qualified optimized inverter solutions.”
• GO ESS expansion: Roeschlein said the next generation of its battery solution is expected to be “widely accepted by the market” based on “feature functionality, price point, et cetera,” with opportunity in U.S. new sales, TPOs, and repowering, as well as a larger-capacity configuration for Europe. He said the new generation supports expansion “up to almost 48 kWh” and includes cold-weather functionality.
• Repowering opportunity: In response to questions about U.S. repowering, Roeschlein said it “more than doubled” in mix, while noting measurement was affected by pull-in orders tied to Section 25D expiration. Alon added that “the more those systems age, the better it is for us,” and said repowering can expand optimizer adoption and support incremental battery sales alongside hybrid inverters.
• Utility-scale pipeline: Alon said activity in utility-scale has increased and continues, spanning both Predict+ and optimization products. He referenced a 142 MW installation in Spain near the Madrid Airport that is “now operational,” and said the company sees “similar sized projects” in the pipeline. Pressed on timing, Alon said the “increase in utility footprint is in 2026.”

On European demand and market share, Alon said Tigo saw improvement in the “second part of Q1” after a “sleepy” start to the quarter, and highlighted momentum in Eastern Europe where, he said, some competitors have reduced their presence. He also said Germany “starting to get back to life” in the second half of the quarter, though he cautioned the company is “not quite sure” it will return to prior strength.

Alon also addressed a question about potential European restrictions on Chinese-controlled monitoring systems and devices. He said Tigo is “aware of the change,” adding that two countries are already banning such systems. While he said it is “hard to actually say that it is correlated” to demand, he called it a “positive contributor” and said the company has emphasized the security of “being the U.S., the monitoring in the U.S.”

Looking ahead on expenses, Roeschlein said the company expects operating expenses to remain around $12.5 million to $13.5 million per quarter for the remainder of the year, adding that Tigo can grow “without having to add a lot of OpEx,” which he said demonstrates leverage in its operating model.

Alon closed by saying the company is “pleased with how we have started 2026 and the traction we are seeing across our key markets,” adding that business predictability supports confidence in sustaining growth through the year.

About Tigo Energy NASDAQ: TYGO

Tigo Energy, Inc NASDAQ: TYGO is a U.S.-based provider of module-level power electronics (MLPE) solutions designed to optimize the performance and safety of solar photovoltaic systems. Founded in 2007 and headquartered in Campbell, California, Tigo Energy develops hardware and software tools that enhance energy yield, improve system reliability, and streamline compliance with electrical codes. The company's technology platform is used by solar installers, project developers, and module manufacturers to deliver higher returns on investment and bolster the safety profile of PV arrays.

At the core of Tigo's offerings is its TS4 platform, a modular MLPE solution that enables real-time monitoring, rapid shutdown functionality, and maximum power point tracking at the panel level.

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