What Tigo Energy (TYGO) Said on Its Q3 Earnings Call

Key Points

• Tigo cut its 2026 revenue outlook to approximately $95 million–$97 million from $100 million–$110 million after third-quarter revenue fell 21.5% year over year to $24 million. It expects fourth-quarter revenue of $20 million–$22 million and an adjusted EBITDA loss of $1.5 million–$3 million.
• Third-quarter net income was $361,000, but results benefited from an $826,000 tariff-refund credit that the company said was nonrecurring. Adjusted EBITDA of $1.5 million was also below the $2.9 million reported a year earlier.
• Slower European solar demand, gradual storage adoption, and the delayed launch of a U.S. partner’s product weighed on sales. Tigo said it expects a larger partner contribution in Q4 and is targeting revenue growth in 2027, without providing a formal forecast.

Tigo Energy NASDAQ: TYGO lowered its full-year revenue outlook after third-quarter sales declined 21.5% from a year earlier, as a slower European solar recovery, weaker-than-expected storage adoption and the timing of a U.S. partner’s product launch weighed on results.

The solar technology company reported third-quarter revenue of $24 million, at the bottom of its guidance range of $24 million to $26 million. It now expects 2026 revenue of approximately $95 million to $97 million, down from its prior outlook of $100 million to $110 million.

For the fourth quarter, Tigo projected revenue of $20 million to $22 million and an adjusted EBITDA loss of $1.5 million to $3 million. CEO Zvi Alon said the market and timing factors that affected the third quarter are expected to continue into the final quarter of the year.

Refund Boosted Quarterly Results

Tigo reported third-quarter GAAP net income of $361,000, compared with a net loss of $2.2 million a year earlier. Adjusted EBITDA was $1.5 million, above the high end of the company’s guidance range of $500,000, but below the $2.9 million reported in the prior-year quarter.

CFO Bill Roeschlein said the results included an $826,000 benefit to cost of revenue from tariff refund claims related to prior periods and $410,000 in bad debt expense. The company also recorded $46,000 of refund-related interest income and a $300,000 income tax benefit. Roeschlein said the tariff benefit was not recurring and that the company was essentially break-even on a pre-tax basis.

Gross margin rose to 46.2% from 42.7% a year earlier, aided by the tariff refund. Operating expenses fell to $11.2 million from $12.4 million, reflecting reductions in research and development, sales and marketing, and general and administrative expenses.

Roeschlein said $250,000 of a charge related to one European customer was covered by credit insurance, with a recovery expected in a future period. Tigo has also applied for another $400,000 in tariff refunds, but had not received a response. He said the low end of fourth-quarter guidance assumes no additional refund, while the high end includes the possibility of receiving some of it.

European Demand and Storage Adoption

Revenue in Europe, the Middle East and Africa fell 14.8% year over year, as the region adjusted to reduced subsidies. EMEA accounted for 76.5% of Tigo’s quarterly revenue, with the Czech Republic and Germany its two largest markets. Sales grew 41.2% in Poland and 103.2% in Spain, while revenue declined significantly in Italy and the United Kingdom.

Alon said pending German feed-in tariff legislation appeared to be causing customers to wait rather than rush to install systems. He also pointed to subsidy and policy changes in Italy, the Czech Republic and the United States, as well as higher interest rates, as factors extending the payback period for residential solar installations.

Revenue from Tigo’s GO ESS storage products was $1.3 million, down from $2.2 million in the second quarter, primarily because of lower shipments in the United States and Italy. Alon said adoption was progressing more gradually than expected, and the company was working to broaden its reach through installer engagement and geographic expansion.

Module-level power electronics, or MLPE, remained Tigo’s largest product category, generating $22.1 million, or 92% of quarterly revenue. The company shipped approximately 698,000 MLPE units representing 517 megawatts.

U.S. Partnership and 2027 Plans

U.S. revenue declined 51.4% year over year as the residential solar market adjusted following the expiration of the Section 25D tax credit, Alon said. He added that sales to repowering customers partly mitigated the decline. In Asia-Pacific, revenue grew 56.3%, led by 121.1% growth in Australia.

Tigo recognized approximately $800,000 in third-quarter revenue from shipments to its U.S. optimized inverter partner and expects a larger contribution in the fourth quarter. Asked about partner EG4, Roeschlein said Tigo had shipped optimizers in the second and third quarters and expected to ship more in the fourth. He said the timing of the partner’s commercial launch was outside Tigo’s control, though the company believed it was tracking toward late in the fourth quarter and early 2027.

Alon said Tigo plans to invest in markets including Eastern Europe and Australia and expand GO ESS into additional Eastern European countries. He said the company believes its strategy can produce revenue growth in 2027, but did not provide a formal forecast. A delayed project in Japan is likely to take place in the first quarter or early second quarter of 2027, he said.

Tigo ended September with $16.8 million in cash and equivalents, nearly unchanged from June, while reducing revolving credit borrowings by $1.6 million to $2.5 million. Inventory fell to $18.1 million from $20.6 million at the end of the second quarter.

About Tigo Energy (NASDAQ:TYGO)

Tigo Energy, Inc NASDAQ: TYGO develops smart solar and energy-storage solutions for residential, commercial, and utility-scale installations. Its products are designed to improve the safety, monitoring, optimization, and overall performance of photovoltaic systems.

The company's product portfolio includes module-level power electronics, rapid-shutdown devices, communication and monitoring equipment, and software platforms. Its TS4 product line provides functions such as module-level optimization, system monitoring, and enhanced safety, while its Energy Intelligence offering supports solar-plus-storage applications and energy management.

Founded in 2007, Tigo Energy serves solar equipment manufacturers, distributors, installers, and system owners in markets around the world.

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