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    FTCI
    Earnings call· Jun 2026(Q2 FY26)

    FTC Solar Q2 FY26 earnings call FTCI

    Aug 5, 2026 Source

    Executive summary

    FTC Solar, Inc. Q2 FY26 — Strong Revenue Growth and International Expansion

    FTC Solar delivered strong Q2 FY26 revenue at the high end of its guidance, driven by sequential growth and new project wins, including a significant 400 MW order. The company is actively expanding its customer base and international presence, with 80% of its second-half revenue already secured. While facing gross margin pressures and covenant non-compliance, management is implementing cost-saving initiatives and leveraging robotics to improve efficiency and accelerate the path to profitability.

    Highlights

    5

    • Revenue reached $26.2 million, at the high end of guidance, representing a 51.5% sequential increase.

    • Secured a new 400 MW purchase order from a top five EPC for a 1P project with a top five US developer.

    • Achieved AVL approval from nine of the top 10 EPCs and added five more large EPCs and six more large developers to AVLs since last quarter.

    • Entered the India market with multiple initial projects, including 100+ MW projects.

    • 80% of H2 FY26 revenue needs are already covered by booked projects.

    Concerns

    4

    • GAAP gross loss was $2.2 million, or 8.5% of revenue, compared to 7.1% in the prior quarter.

    • Non-GAAP gross loss was $1.3 million, or 5.1% of revenue.

    • Cash balance of $11.2 million fell short of the minimum unrestricted cash covenant of $15 million, and the company was not in compliance with the minimum direct margin covenant for Q2.

    • Adjusted EBITDA loss was $9.8 million.

    Guidance & targets

    5
    CategoryTargetConfidence
    Full-year Revenue Growth
    at least 40%
    high materiality
    High
    Q3 Revenue
    $30 million and $35 million
    high materiality
    High
    Q3 Non-GAAP Gross Profit
    between negative $.9 million and a positive $1.8 million
    medium materiality
    High
    Q3 Non-GAAP Operating Expenses
    Between $7.7 million and $8.3 million
    medium materiality
    High
    Q3 Adjusted EBITDA Loss
    Between $9.3 million and $6 million
    high materiality
    High

    Operational metrics

    11
    Revenue
    51.5%sequential increase
    Q2 FY26

    compared to the prior quarter

    GAAP Gross Loss Margin
    8.5%vs 7.1% in prior quarter
    Q2 FY26

    GAAP gross loss was $2.2 million, or 8.5% of revenue, compared to gross loss of $1.2 million, or 7.1% of revenue in the prior quarter.

    Non-GAAP Gross Loss Margin
    5.1%vs 2.2% in prior quarter
    Q2 FY26

    Non-GAAP gross loss was $1.3 million, or 5.1% of revenue, and this quarter's results compared to non-GAAP gross loss of $.4 million, or 2.2% of revenue in the prior quarter and a $3.5 million gross loss in the year-ago GAAP

    Non-GAAP Operating Expenses
    $8.5Mvs $7.8M in prior quarter, $6.5M in year-ago quarter
    Q2 FY26

    On a non-GAAP basis, operating expenses were $8.5 million, which was in line with our target range. This compares to non-GAAP operating expenses of $7.8 million in the prior quarter and $6.5 million in the year-ago quarter.

    GAAP Net Loss per Diluted Share
    $1.69vs $0.72 loss in prior quarter, $1.18 loss in year-ago quarter
    Q2 FY26

    Gap net loss, which is a reminder, includes a non-cash accounting adjustment each quarter to adjust warrants to fair value based on the change in our stock price was $27.1 million, or a net loss of $1.69 per diluted share, compared to income of $32.6 million, or a loss of a $0.72 per diluted share in the prior quarter and a net loss of $15.4 million, or $1.18 per diluted share in the year-ago quarter.

    Adjusted EBITDA Loss
    $9.8Mwithin guidance range
    Q2 FY26

    Adjusted EBITDA loss was $9.8 million coming in within our guidance range. Adjusted EBITDA excludes approximately $17.3 million net for the change in fair value of the warrant liability, certain transition costs, as well as other non-cash items.

    Cash Balance
    $11.2Mhigher than last quarter
    Q2 FY26

    On the balance sheet we ended Q2 with about $11.2 million in cash. While the cash balance was higher than last quarter, this level fell short of the minimum unrestricted cash covenant of $15 million pursuant to our credit agreement.

    Equity Line of Credit
    $20Mnot yet utilized
    subsequent to Q2 FY26

    Subsequent to quarter end, we entered into an agreement to establish an equity line of credit, or ELOC, with an institutional investor. This facility, which has an aggregate maximum value of $20 million, has been established but not yet utilized.

    Second Half Revenue Coverage
    80%already covered
    H2 FY26

    At this point, we have about 80% of our second half revenue needs already covered with a number of additional project decisions expected in the coming weeks that have the potential to drive that above 100% and that's what we're aiming for.

    Average Quarterly Bookings
    $60Mclose to
    past three quarters

    in aggregate over the past three quarters now we've been booking close to 60 million per quarter and we're looking to materially increase that

    Tracker Industry Lead Time
    20 weeksaround or less than
    current

    Lead time is around or even sometimes less than that. under that 20-week mark.

    Industry KPIs

    2
    MetricValueDetails
    Orders bookings growth51.5%%
    Backlog by segment end market80%%

    Orderbook & backlog

    6
    Second Half Revenue Coverage80%End of Q2 FY26

    Potential to drive above 100%

    Covered by booked projects, with additional project decisions expected in coming weeks. Lead time in tracker industry is around or less than 20 weeks.

    New 1P Project PO400 MWWithin past two weeks of call

    New order

    From a top five EPC for a top five US developer.

    First 1P Project PO with existing 2P customer100 MWRecently received

    New order

    Project on the East Coast, strengthening relationship with a top developer.

    New Australia Project90 MWRecently won

    New order

    Deliveries happening in H2 FY26.

    Previously Announced Australia Project330+ MWQ2 FY26 (Notice to Proceed)

    Project timeline revised, now proceeding

    Announced in March 2025, deliveries set to begin in H2 FY26.

    Initial India Market ProjectsPilot size to 100+ MWRecently won

    New market entry

    Multiple projects with large and well-known customers.

    Deals & partnerships

    5
    Top five EPCNew 1P project for a top five US developer400 MW

    Received a new 400 megawatt PO from a top five EPC for a new 1P project that is also for a top five developer in the US. We have worked with this EPC on other projects recently, and we're excited to see a nice-sized follow-up on project.

    Top developer (previously 2P customer)First 1P project with this developer100 MW

    Recently received a new 1P purchase order from a top developer that has been a 2P customer of ours. It's about a 100 megawatt project on the East Coast, but notable that it is our first 1P project with them and represents a continued strengthening of the relationship.

    UndisclosedNew project win in Australia90 MWH2 FY26 deliveries

    We recently had a new win in Australia at about 90 megawatts that has deliveries happening in the second half of the year.

    UndisclosedProject with revised timeline, notice to proceed received330+ MWH2 FY26 deliveries

    We're also set to begin deliveries on a 330 plus megawatt project in Australia in the second half. This is a project that we did first announce in March of 2025, but the project timeline was revised and we just received notice to proceed in Q2.

    Large and well-known customersMultiple initial projects in India marketPilot size to 100+ MW

    I'm also pleased to announce that we recently entered the India market and have already won multiple initial projects there, ranging from pilot size to 100 plus megawatt projects with large and well-known customers.

    Risks & headwinds

    4
    Non-compliance with debt covenantsQ2 FY26

    Cash balance of $11.2 million fell short of minimum unrestricted cash covenant of $15 million; not in compliance with minimum direct margin covenant.

    Mitigation: Lenders provided waivers for Q2 covenants; established $20 million equity line of credit (ELOC) post-quarter end.

    Gross margin pressureQ2 FY26

    GAAP gross loss was 8.5% of revenue in Q2, up from 7.1% in Q1; Non-GAAP gross loss was 5.1% of revenue.

    Mitigation: Implementing targeted labor and non-labor cost savings initiatives, increasing use of software and AI for productivity, and improving supply chain agreements.

    Lag in project design cycles for new 1P productOngoing

    Projects are designed years before they are built; 1P product didn't exist a year ago when some projects were designed.

    Mitigation: Systematically going through customer qualification and AVL process; focusing on converting opportunities with top EPCs and developers.

    Market concentration in tracker spaceCurrent

    While there are good companies in the space, the share is pretty concentrated.

    Mitigation: Customers desire diversification; FTC Solar aims to be a strong alternative player.

    What to watch in Q3 FY26

    5

    Gross Margin Trajectory

    Q4 FY26
    CurrentNon-GAAP gross loss of 5.1% in Q2 FY26.
    TargetPositive gross margins.

    Why it matters

    Indicates effectiveness of cost-saving initiatives and scaling efficiency, crucial for path to profitability.

    I really hope to be able to show results, not just promises of these efficiencies in the next call and I definitely expect some of those efficiencies to trickle through our financials in Q4.

    Q&A highlights

    7

    Asked if the waiver for Q2 covenants also applies to Q3, given Q3 revenue guidance is below the previously mentioned $50M requirement.

    Kathy Beynon clarified that the waiver was specific to Q2 and that the company continues to work with supportive lenders, expecting ongoing cooperation.

    “The waiver that we got was for Q2 specifically, and we'll continue to work with our lenders. They've been very supportive to us as we've had this opportunity debt with them and they will, you know, we expect they'll continue to work with us as we go forward, but this was specifically a waiver for Q2.”

    asked by Jeffrey Osborne · answered by Unknown Speaker

    2 min read5 chapters

    Detailed Narrative

    01

    Strategic Customer Expansion

    FTC Solar has significantly expanded its customer base, achieving AVL approval from nine of the top 10 EPCs and adding five more large EPCs and six more large developers since the last call. This positions the company to bid on a substantial and increasing volume of business, with a recent 400 MW PO from a top five EPC for a top five US developer serving as a key proof point. The company also secured its first 1P project (100 MW) with a long-standing 2P customer, indicating strengthening relationships and product validation.

    02

    International Market Penetration

    The company is actively pursuing international growth, securing a new 90 MW win in Australia with deliveries in H2 FY26 and commencing deliveries on a previously announced 330+ MW project in Australia. Notably, FTC Solar has entered the India market, winning multiple initial projects ranging from pilot size to over 100 MW with well-known customers, leveraging its established infrastructure in the region.

    03

    Operational Efficiency and Robotics

    CEO Anthony Carroll is focused on improving the cost structure and break-even revenue level through targeted labor and non-labor cost savings initiatives. The company is increasing its use of software and AI to automate workflows, leading to improved productivity and new savings opportunities. Furthermore, FTC Solar is investing in construction robotics, hosting a Robotics Day and collaborating with innovators to optimize its tracker for robotic compatibility, aiming for faster, safer, and more automated installation processes.

    04

    Product and Service Value Proposition

    Customers consistently value FTC Solar's products and services, with one leading developer describing their tracker technology as 'best in class' due to its ease and speed of installation, enabling crews to finish up to 40% faster. The company's engineering team also adds value by enabling more power or less land grading through efficient design, directly translating to higher profitability and improved IRR for customers.

    05

    Liquidity and Covenant Waivers

    The company ended Q2 with $11.2 million in cash, which fell short of its minimum unrestricted cash covenant of $15 million. Additionally, it was not in compliance with the minimum direct margin covenant. Lenders provided waivers for these Q2 covenants, preventing debt callability. Subsequent to quarter-end, FTC Solar established a $20 million equity line of credit (ELOC) to provide additional funding flexibility, alongside expected revenue growth and working capital initiatives.

    AI-generated summary of the company’s earnings call. Not investment advice.