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FTC Solar (FTCI) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Energy· Aug 5, 2026

Source: earnings call transcript

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

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

Orderbook & backlog

Second Half Revenue Coverage 80% 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 PO 400 MW Within 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 customer 100 MW Recently received

New order

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

New Australia Project 90 MW Recently won

New order

Deliveries happening in H2 FY26.

Previously Announced Australia Project 330+ MW Q2 FY26 (Notice to Proceed)

Project timeline revised, now proceeding

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

Initial India Market Projects Pilot size to 100+ MW Recently won

New market entry

Multiple projects with large and well-known customers.

Deals & partnerships

Top five EPC New 1P project for a top five US developer 400 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 developer 100 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.

Undisclosed New project win in Australia 90 MW H2 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.

Undisclosed Project with revised timeline, notice to proceed received 330+ MW H2 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 customers Multiple initial projects in India market Pilot 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

Non-compliance with debt covenants Q2 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 pressure Q2 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 product Ongoing

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 space Current

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

Gross Margin Trajectory

Q4 FY26
Current Non-GAAP gross loss of 5.1% in Q2 FY26.
Target Positive 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.

Find out whether FTCI delivers this. Inve re-checks your case every morning.

Q&A highlights

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 read 5 chapters

Detailed narrative

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.

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.

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.

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.

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.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.