FTC Solar Q4 2025 Earnings Call - Near-Breakeven Quarter as MSAs and Backlog Accelerate

Operator: Good day, and thank you for standing by. Welcome to the FTC Solar Fourth Quarter 2025 earnings conference call. At this time, all participants are in listen-only mode. After the speaker’s presentation, there’ll be a question-and-answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear automated messages advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today’s conference will be recorded. I’ll now hand the conference over to your first speaker today, Bill Michalek, VP of Investor Relations. Please go ahead.

Bill Michalek, Vice President of Investor Relations, FTC Solar: Thank you. Welcome everyone to FTC Solar’s fourth quarter 2025 earnings conference call. Before today’s call, you may have reviewed our earnings release and supplemental financial information, which were posted earlier today. If you’ve not yet reviewed these documents, they’re available on the investor relations section of our website at ftcsolar.com. I’m joined today by Yann Brandt, the company’s President and Chief Executive Officer, Cathy Behnen, the company’s Chief Financial Officer, and Patrick Cook, the company’s Head of Capital Markets and Business Development. Before we begin, I remind everyone that today’s discussion contains forward-looking statements based on our assumptions and beliefs in the current environment and speaks only as of the current date. These forward-looking statements include risks and uncertainties. Actual results and events could differ materially from our current expectations.

Please refer to our press release and other SEC filings for more information on the specific risk factors. We assume no obligation to update such information except as required by law. As you’d expect, we’ll discuss both GAAP and non-GAAP financial measures today. Please note that the earnings release issued this morning includes a full reconciliation of each non-GAAP financial measure to the nearest applicable GAAP measure. With that, I’ll turn the call over to Jan.

Yann Brandt, President and Chief Executive Officer, FTC Solar: Thanks, Bill, and good morning, everyone. I’m pleased to share that we have achieved another quarter of strong growth in Q4 and continue to position the company for long-term success. Our financial results came in at the high end of our targets as we work to strengthen our product, operational performance, and overall positioning, including enhancements to one of the most innovative 1P tracker platforms in solar. Every day, we’re seeing excellent commercial momentum as we build a foundation for future growth. In terms of financial results, we achieved several key milestones in the fourth quarter. Our results came in at the high end of our target ranges on all metrics. Revenue grew by 26% sequentially, which follows the 30% sequential growth posted in the third quarter and came in at the highest quarterly level since the first quarter of 2023.

Gross margin for the quarter was our best as a public company and one of the best in company history. We posted our best-adjusted EBITDA performance in six years and our best since going public, coming in just shy of break even for the quarter. Missing our 2025 target of break-even by the narrowest of margins, not bad considering the insane year that solar went through with tariffs and legislative disruptions. Our fourth quarter results were a fitting end to an incredible year of progress for FTC, a year I am proud to call my first at the company.

For the year, we grew revenue by more than 110% versus the prior year, significantly improved margins, added multiple gigawatts of MSAs and secured purchase orders from tier one customers, added new cash to our balance sheet with strategic financing, saw new incredible talent join our team, especially in sales, and have positioned our product platform as the most innovative tracker portfolio in the market, by far the easiest and fastest to install. Turning to customers, our commercial momentum is starting to accelerate at every level, from approved vendor list additions to project bidding, bookings, and contract conversions. It takes time and won’t impact revenue tomorrow, but our progress here is clear, accelerating, and to me means everything. It’s the foundation of our future growth. It’s what is making this company successful and has me excited about where FTC is going.

First, we’re getting on approved vendor lists. Just in Q4 alone, we were added to the AVLs of 4 of the top 10 EPCs, bringing the total to 8 of the top 10. We are getting increased visibility and are bidding with more customers and larger project sizes, actively providing proposals on the pipelines of these new EPCs and of those of many new customers. FTC is winning projects and seeing previously announced MSAs convert into bookings, including with the top-tier customer base. In the fourth quarter, we received bookings from 2 leading EPCs, and we expect some MSAs to start expanding in volume from the original capacity in the near future.

We have had improving net bookings for the past 3 quarters and had a significant increase in the 4th quarter, with a positive book-to-bill or positive net bookings in the period as we are starting to convert our MSAs into firm orders and book new projects. Since our last earnings call, we added $61 million to our contracted backlog, or roughly a $29 million addition net of Q4 revenue. We expect this progress to continue and to accelerate. In addition to the positive net bookings, we’ve had recent wins in the form of multi-year MSAs that aren’t yet included in that backlog, with more expected to be announced in the near future. One notable addition we are announcing today is a new 1 gigawatt supply agreement with a leading developer and operator of wind and solar farms.

This is a 3-year agreement for 1 gigawatt of our 1P and 2P trackers at sites across the U.S. This agreement also includes our SUNPATH software to achieve additional energy yield at these sites. Another example we announced just last week is a multi-year MSA with Lubanzi in South Africa. That was for about 840 megawatts of trackers delivered across the country and is a great win on the international front. The first project under that agreement is expected to begin mid-year. Those are MSA wins on top of the net backlog additions we announced, which brings us to over 9 gigawatts of MSAs added in just 1 year. The leading indicators on the customer front are what will drive this business. They are starting to look very good. They are improving. We have a lot of momentum.

From MSAs, ABLs, and strong bidding activity, these are clear signals that show us that FTC is a critical part of the tracker diversification trend that we are seeing every day. While we have very admirable competitors, a market without choice is no market at all, and every meeting I’m in, I hear about the need for diversification. Having met with most of the top 10 EPCs, I can tell you they’re happy for FTC to be in the room, innovative, bankable, and competitive. Our team is a known counterparty with decades of relationships, and our product continues to show very well. FTC is now a valued 1P tracker provider, and we see a significant opportunity to gain share.

Our goal remains to be a top three tracker provider before long. We hope to have much more to share on the new MSAs and new contracted backlog in the weeks ahead as we work toward that. On the product front, independent row architecture is the gold standard for solar. It has the highest production for asset owners and has the best long-term effectiveness for solar farms. It is also ideally suited for automation and construction and O&M activities. I’ve shared that I believe we have what is unquestionably the fastest and easiest to install tracker in the marketplace, independent row or otherwise.

A product that is superior on a total installed cost basis, one that can be built from piles to mounted modules with an unmatched efficiency of 0.053 labor hours per module, driven by our innovative Python Clips, slide-and-glide rails, an open trunnion design, and power cinch clips. You can see from the customer comments, as we have announced some of the recent wins, that customers are already recognizing the benefits of this efficiency. Our team is focused on achieving another 20% in labor savings. This is crucial as labor shortages are increasingly a pinch point for the industry and expected to continue, and as labor continues to increase as a proportion of the total project cost.

We have engaged with tier one EPCs and developers, and due to our constructability savings, they tend to look at the total install cost of our tracker rather than just price. As more in the industry recognize our total cost of installation advantage, it should help further insulate us from pricing concerns or competition on projects. 2025 was a strong step forward in positioning for what’s ahead as we doubled sales while expanding the balance sheet, built out the product set, expanded our pipeline, and continued building a foundation of new project wins and MSAs. We have definitely been on a steady upward trajectory during my time with FTC. Quarterly revenue levels for Q4 were three times higher than when I had started. Gross margin went from double-digit negative to double-digit positive and adjusted EBITDA loss improved to where we nearly reached some breakeven milestone.

Our enthusiasm doesn’t stem from what happened in the past alone, it comes from what’s ahead. While the solar industry endured a challenging 2025 from a regulatory uncertainty standpoint that will have some carryover effects into 2026, FTC’s positioning has significantly improved, and we are closer to achieving broad adoption from tier one players than we have ever been. Our financial progression won’t always be linear, but we have made great progress so far and are building a solid base of orders to enable strong long-term growth. We have done a great deal to prepare the company and lay the groundwork for the strong growth ahead and aiming for a top market share position, and I firmly believe that is possible. I remain incredibly optimistic about the prospects of the business, and I look forward to providing you with continued updates on our progress in the months ahead.

With that, I’ll turn it over to Kathy.

Cathy Behnen, Chief Financial Officer, FTC Solar: Thanks, Yann, Good morning, everyone. I’ll provide some additional color on our fourth quarter and full year performance and our outlook. Beginning with a discussion of the fourth quarter, revenue came in at $32.9 million, which was above the midpoint of our guidance range of $30 million-$35 million. The quarterly revenue level represents an increase of 26% compared to the prior quarter and an increase of 149% compared to the year earlier quarter. GAAP gross profit was $6.9 million or 21% of revenue, compared to gross profit of $1.6 million or 6.1% of revenue in the prior quarter. non-GAAP gross profit was $7.7 million or 23.4% of revenue, marking one of the highest levels in company history and our best as a public company.

The strong growth margin performance was driven primarily by a favorable product mix in the quarter. This quarter’s result compares to non-GAAP gross profit of $2 million in the prior quarter and a $3.4 million gross loss in the year ago quarter. GAAP operating expenses were $10.6 million. On a non-GAAP basis, operating expenses were $8.2 million. This compares to non-GAAP operating expenses of $7.4 million in the year ago quarter and $8 million in the prior quarter. Moving to GAAP net loss, as a reminder, the warrants which were issued as part of last year’s capital raise are subject to liability rather than equity accounting, and therefore requires us to reflect changes in the warrant fair value each quarter in our GAAP financials.

If our share price goes up during the quarter, as it did in Q4, it will show as a non-cash loss, and conversely, a share price decline would show as a gain. The share price appreciation we saw in the fourth quarter drove an increase in the fair value of the warrant liability of about $26 million. This is a non-cash accounting adjustment that does not reflect the underlying business performance or cash flow and will be excluded for purposes of adjusted EBITDA, but does impact our GAAP financials.

Including that adjustment, GAAP net loss was $33.7 million or $2.23 per diluted share, compared to a loss of $23.9 million or $1.61 per diluted share in the prior quarter. A net loss of $12.2 million or $0.96 per diluted share post-split in the year ago quarter. On an adjusted EBITDA basis, we almost achieved breakeven, posting a loss of just $300,000, which is our strongest result since becoming a public company. That excludes a net of approximately $33.5 million for the change in fair value of the warrant liability, certain transition costs, as well as other non-cash items.

This represents our best adjusted EBITDA result in 6 years and a substantial improvement from adjusted EBITDA losses of $4 million in the prior quarter and $9.8 million in the year-ago quarter. Overall, another solid quarter of financial progress, delivering some of the best results we’ve reported in years. The contracted portion of our backlog now stands at $491 million, with approximately $60 million added since November 12th. To touch briefly on annual results, for the full year 2025 revenue was $99.7 million, representing a 111% increase over 2024. The increase was primarily attributable to higher product and logistics volume, partially offset by decline in ASP.

GAAP gross profit was $1.1 million or 1.1% of revenue, compared to gross loss of $12.6 million or negative 26.6% of revenue in the prior year. On a non-GAAP basis, gross profit was $3.2 million or 3.2% of revenue, compared to a gross loss of $10.9 million or 23% of revenue in the prior year. The higher volumes and increased absorption were the primary drivers of the significant year-over-year improvement, which was partially offset by higher tariff costs. GAAP operating expenses were $34.5 million. On a non-GAAP basis, OpEx was $29.4 million, which compares to $35.5 million in the prior year.

We were able to take OpEx costs down 11% on revenue that was doubled year-over-year, demonstrating our continued focus on efficient growth. GAAP net loss was $76.9 million compared to $48.6 million in 2024. Adjusted EBITDA loss, which excludes the change in fair value of warrants, stock-based compensation expense, and other non-cash items, was $24.3 million compared to a loss of $43.1 million in 2024. With that, let us turn our focus to the outlook. Our targets for the first quarter call for the following: revenue between $20 million-$25 million, non-GAAP gross profit between -$0.5 million and +$2.3 million or between -2.5% and +9.2% of revenue.

Non-GAAP operating expenses between $8.2 million and $8.9 million. Adjusted EBITDA loss between $9.6 million and $5.9 million. For the full year 2026, we expect to continue to grow faster than the industry as our recovery progresses. Due to the timing of orders, which followed some regulatory uncertainty in 2025, as well as the ramp-up of our MSA projects, we expect the results will be weighted to the back half of the year. We conclude our prepared remarks, and we’ll turn it over to the operator for any questions. Operator?

Operator: Thank you. At this time, we’ll conduct a question and answer session. As a reminder, to ask a question, you’ll need to press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster. First question comes from the line of Philip Shen of ROTH Capital Partners. Your line is now open. Philip Shen, your line is now open. Can you unmute?

Philip Shen, Analyst, ROTH Capital Partners: Hey, all. Sorry about that. Congrats on the strong results and good news that you have in the quarter. I wanted to check in with you on the 2026 outlook. You talked about significant growth. I’m guessing you may not want to quantify, but was wondering if you could qualify or provide some color on, you know, what kind of growth we could see in 2026 year-over-year. Thanks.

Yann Brandt, President and Chief Executive Officer, FTC Solar: Yeah, no, thanks, Phil. Appreciate the question. Yeah, look, it’s, we’re really excited about where FTC is sitting from a competitive landscape standpoint, vis-a-vis our peers and the overall market dynamic. Obviously, you know, continuing to sign MSAs with large volumes both in the U.S. and abroad. You know, we’re seeing good growth, you know, obviously some seasonality around the timing of the early part of the year. Really strong ending to 2025 and results 2025 compared to 2024. You know, it really comes down to where we are from an execution standpoint that gives us the enthusiasm and optimism, really adding strong talent to the sales pool.

We, you know, we and me in particular, who’s been on the road full time talking to the EPCs and developers and IPPs around the world, there’s a strong need for diversification. There’s a need for constructability features that puts FTC into a product mix with each of the companies. I think a really important quantifiable trend, and I’ll qualify it, is around the approved vendor lists, particularly with the EPCs that make a large number of the procurement decisions of who they’re going to use on their pools of projects. You know, now being on 8 of the top 10 EPC AVL’s is a strong indicator, and it gives our sales team the ability to go and now close those projects.

That’s, you know, that’s what comes along with the process of developing a product portfolio, is you develop it on a technical basis. Then you have to go out and sell it and get into a position to be approved. Obviously our improved bankability throughout the year and the growth has been a good indicator for those EPCs to then add us to the approved vendor list and put us into the bidding cycles.

Philip Shen, Analyst, ROTH Capital Partners: Great. Thanks, Sean. Hey, you guys also talked about the backlog does not include two big ones that you guys have publicly announced since Q1. I think you alluded to more MSA signings to come. You have a couple here that seem meaningful. Historically, we’ve seen some of your MSAs not pan out. I was wondering if you might be able to give some color on, you know, the timing of these MSAs. Like, do we see meaningful revenue in 2026 and 2027? The ones that you might sign, maybe a little bit of insight into what they might look like. Thanks.

Yann Brandt, President and Chief Executive Officer, FTC Solar: Yeah. You bring up a good point, Bill, is, you know, when we talk about backlog, we talk about, you know, ink on paper, delivery schedules, et cetera, right? It’s, you know, compared to our peers a little bit more, you know, farther in the cycle. You know, it doesn’t include verbals, for example. The MSAs, you know, I know where you’re coming from, and it’s a, it’s a great start, what I always tell to the team, but we’re starting to see those MSAs flow through. We expect to be able to announce some expansions of those MSAs in the near future as we’ve been working through them.

That’s an indication of both strong partnerships, you know, us being able to convert through the project list that our partners have had. You know, some are developers, some are EPCs. And, you know, while there was obviously some air pocket in 2025, that, you know, kind of caused projects to have to wait for capital to come in or some permits, you know, things that obviously everyone in the solar industry has been working through. You know, we’ve been able to find the right projects, get some moving forward, but we do anticipate an acceleration of the utilization of the MSA volume to accelerate here in 2026.

Philip Shen, Analyst, ROTH Capital Partners: Okay. great. Well, you were talking about some of the kind of air pockets of activity and challenges from last year. What are you seeing now? Do you think things have stabilized or, you know, we’ve been talking about some challenges sometimes on the front end with tax equity and FIOC uncertainty. I was wondering if you could provide some perspective on if there are some issues now on the front end of the chain. If you can address your liquidity situation a little bit more and help us understand, you know, You know, you’re getting to breakeven. You’re almost to breakeven last year for the full year. What do you see ahead? Thanks.

Yann Brandt, President and Chief Executive Officer, FTC Solar: Yeah. One of the important aspects is for FTC in particular, is that we’re looking at a lot more projects, right? On an FTC specific basis, having more projects in the pool of possible additions for, you know, both bookings and revenue, is that we are in more deals. That gives us more at bats in terms of, you know, finding the projects that get to the start of construction phase, right? I think that’s an important variable in the overall equation. Every project has a path to get to start of construction. There are positives. Obviously, the offtake environment for projects is as good as I’ve seen since I’ve gotten into solar in 2006.

While, you know, some projects obviously have to contend with federal permit issues or wetlands, you know, there are certain challenges that come into it. Overall, I would say the trend is optimistic around more projects getting to the start of construction for the overall market, but specifically for us, as I look at our both pipeline of projects in MSAs, for example, and the projects that we’re bidding, it seems like there’s a overall trend that it’s trending in the right direction. You know, we’re obviously trying to put ourselves into a position where we’re in the best projects that have the ability to move forward. I think that’s where the alignment is with the goals that both the developers and the EPCs have.

We want to be building solar for the American consumers and companies that need the electricity more so than ever. Being part of that product mix where projects are allocated for diversification sake amongst, you know, 2 or 3 tracker vendors, you know, FTC being a part of those top selected trackers, more than I would say ever, and I think our financial results speak to that since going public, you know, it bodes well for where I think we’re going. From a liquidity standpoint, you know, I, I’m happy with where we ended up, you know, at the end of the year. Obviously, we had really great growth from 2024 to 2025. Just the back half alone up 44% when our peers were flat to down.

you know, we look at our Q4 results and-By the narrowest of margins, nearly hit the breakeven for profitability, which would have been phenomenal, but yet still the best results that FTC is has ever had. I’m, you know, I’m happy for where we’ve been able to guide the company. you know, this kind of growth while lowering overall operating expenses is a good indicator of the efficiencies that we can gain, and I think there’s more to be had, and we’re certainly running the company as such. ultimately, it comes down to, you know, putting a, you know, great product into the market, being accepted by getting onto the AVLs, and then putting just a phenomenal sales team in the field that has the relationships.

You know, I think when I think about the meetings that we’re having and the feedback that we’re getting, our sales team’s gonna be in a really good spot, to take advantage of this consolidating, market landscape and trackers, and put ourselves in this top three position that, I believe is in our future.

Patrick Cook, Head of Capital Markets and Business Development, FTC Solar: Great. Thanks, Jan. I’ll pass it on.

Yann Brandt, President and Chief Executive Officer, FTC Solar: Of course. Thanks, Phil.

Patrick Cook, Head of Capital Markets and Business Development, FTC Solar: Thank you. One moment for our next question. Our next question comes from the line of Sameer Joshi of H.C. Wainwright. Your line is now open.

Sameer Joshi, Analyst, H.C. Wainwright: Hey, good morning, and thanks for taking my questions. You have a considerable pipeline, $491 million, the backlog. Do we know who the end customers are? Like, what industries or commercials or any other type of users are there? If, more specifically of the $61 million new orders received this quarter, any insight into the end customers would be great.

Yann Brandt, President and Chief Executive Officer, FTC Solar: Yeah, no, great question. We do. You know, we have obviously the, the counterparty that’s buying from us. You know, oftentimes the EPC, but there are times, including our new bookings in Q4, where we have more global relationships with the, with the asset owners. You know, asset owners view the longevity of the product as well as, you know, the long-term benefit on the total install cost basis, that FTC has an advantage of, you know, as something that they wanna invest in by going into multiple projects. For the most part, our counterparties end up being the EPCs. You know, if you’re, if you’re talking about the counterparties on the offtake, certainly the big data center players are fighting over the generation.

We’re starting to see a pipeline of the behind-the-meter concept, you know, the bring-your-own-generation concepts that we see in the data center headlines. That is certainly starting to happen. You know, just in the past quarter, we saw a project that had some interconnection cost issues that maybe wouldn’t pencil. That project is now under consideration for a bring-your-own-generation data center play, right? You know, that obviously will open up a new field of opportunities for solar at large that FTC will be able to compete in.

Sameer Joshi, Analyst, H.C. Wainwright: Thanks. Thanks for that color, Yann. This, I think Philip asked you about this, but I will just dig a little bit deeper. The 2 MSAs just announced, the 1 gigawatt and the 840 megawatt. They are 3 years. When should we start seeing, like, actual orders, from this? Also, do you have any kind of regional exclusivity or any kind of exclusivity with these customers?

Yann Brandt, President and Chief Executive Officer, FTC Solar: Let me speak about the Lubanzi one first, the one we announced last week. We, you know, that we do expect to start, we have projects that are slated for mid-year. The MSAs, the way they work is the MSAs and, you know, some MSAs are announced, some are not, where that they then, you know, what we do is we and oftentimes negotiate a standard template for purchase order. It makes contracting a lot easier, and we start doing co-designs on those sites. The Lubanzi one, certainly we have multiple projects that will start hitting in 2026.

The new one we named here in the, in this, in the, in my announcements this morning, you know, that’s a, that’s a pretty large pipeline here in the U.S. We’re excited about where that’s going to go. We’re deep in design on several of the sites. They have to go through permitting. It’s likely that there’s it’s possible that there’s projects in the back half of the year that will start to book. It also depends on, you know, it could very well accelerate if offtakers come to the table. You know, those projects, in particular, are more in a regulated market. You know, that’s where the regulated utilities are under extreme pressure by offtakers to increase generation and make generation accessible to them.

We actually have seen some strong movement in negotiations for the offtakes of those agreements that will then flow through and make permitting easier. You know, some do have projects listed from an exclusivity standpoint. Some are more volumetric in approach, but there is a win-win for both, i.e., a partnership where FTC is investing in resources to provide design services, things of that nature, and obviously priority access to some both design as well as capacity. It is something that you’re seeing, you know, since I’ve gotten here, more and more customers wanting to enter into them, and that’s what’s gotten us to the 9 gigawatts.

Sameer Joshi, Analyst, H.C. Wainwright: Understood. Thanks for that, Tyler. Will you remind us of what the revenue model is for the SUNPATH software? Like are there recurring revenues or what kind of a structure it is?

Yann Brandt, President and Chief Executive Officer, FTC Solar: Yeah. SUNPATH is actually, you know, a great tool, and it’s an interesting one, you know, just looking at it from my seat. You know, FTC has been around a long time, so it’s been under development and refinement for quite a long period of time. So it’s, you know, while our 1P tracker is a relatively new addition to our overall portfolio, you know, our ability to bring 3D backtracking to the market is, you know, as good as anyone in the market, right? I think people see that. You know, revenue models differ by geography. There’s a, you know, some customers prefer to pay for it upfront for a period of time. Some people view it as a recurring revenue model.

you know, it really depends on the site itself. It is I will say the 3D backtracking software is particularly advantaged, you know, for FTC and for in, you know, particularly for independent row architecture. When sites have undulating uneven terrain, the need for 3D backtracking for energy yield increases is really important. Independent row architecture where motors can run each row independently of each other, especially over the course of the year, is where you’re going to see the best energy yield advantages, which is why the market is consolidating around this independent architecture, in my opinion.

Sameer Joshi, Analyst, H.C. Wainwright: It improves your value proposition. Good to know. Just a question, maybe this is for Cathy. The service margins were lower despite sequential growth in service revenue. Is this some GAAP reason or are there more structural reasons?

Cathy Behnen, Chief Financial Officer, FTC Solar: Thanks for the question. I think what you’re kind of seeing flow through there is, you know, and our service revenue is, includes all of our, you know, logistics, services that we provide. As you see the increasing tariffs that came through, you know, those are pass-through costs and so that kind of squeezes a little bit of that margin.

Sameer Joshi, Analyst, H.C. Wainwright: Got it. Understood. Thanks for taking my questions and, good luck for 2026.

Cathy Behnen, Chief Financial Officer, FTC Solar: Thank you.

Patrick Cook, Head of Capital Markets and Business Development, FTC Solar: Thank you. One moment for our next question. Our next question comes from the line of Jon Windham of UBS. Your line is now open.

Jon Windham, Analyst, UBS: Perfect. Hey, thanks for taking the questions. I wanted to follow up on, I think Philip Shen’s question a little bit about the liquidity. There’s obviously the note in the release about not being in compliance with the purchase order covenant for the credit agreement. Can you just talk through the status of that, and then what you need to do to be in compliance for it? Thanks.

Yann Brandt, President and Chief Executive Officer, FTC Solar: Yeah, no, appreciate the question. You know, I’ll give you the high level, and I think we put it in the note accordingly. This is, you know, our opinion is, and our lenders believe it’s a technical issue and a technical default. The language in the agreement was a little bit unintentionally restrictive and led to a surprising kind of accounting outcome, even from the lender’s perspective. While it sort of came in the audit process, we haven’t yet resolved the issue, but we anticipate that we will. It was related to the bona fide purchase orders, bookings, that we signed, and believed, you know, like I said, a technicality that led to a handful being excluded for the covenant.

Jon Windham, Analyst, UBS: Appreciate that. Then completely shifting gears, ask completely different type of question. A lot of your competitors, NextPower, Array, GameChange, have been making diversifying acquisitions into tangential product categories, whether it be wires, foundations. NextPower is all the way out to inverters at this point. Just love your thoughts about how your strategy around that, and whether you think you need to provide a more diversified product lineup to be competitive or you like a single product. Just your general thought, Jon. Thanks so much.

Yann Brandt, President and Chief Executive Officer, FTC Solar: Yeah. I mean, look, I appreciate that they’re doing that, and in some ways understand the premise of it. Obviously, you know, our relationships as tracker vendors with procurement teams is, you know, such that obviously the procurement teams are buying other things. While there’s overlap with who you’re talking to, the value proposition really, you know, depends on each unique product, right? You know, obviously when, you know, we’re growing at a pace that exceeds what our peers are doing, so they’re looking for, in my opinion, for growth in other things. I certainly understand where they’re coming from.

You know, our focus is, like I said in, in the recording, is getting, you know, becoming a top 3 tracker provider, and we’re well on our way for that. That’s the importance of it, hence we’ve been adding to our sales team and growing those, you know, our ability to do just that. It is a, like I said, dynamic tracker landscape for sure, you know, both in what you’re describing of our peers going elsewhere. If you compare our growth here in 2025, even heading into 2026, we believe our growth will be significant and well ahead of the market. We’re gonna, at the moment, focus on exactly what we’re doing, which is, you know, getting on AVLs, converting the MSAs into projects.

that’s exactly what we’re gonna do.

Jon Windham, Analyst, UBS: Can I ask a quick follow-up on that? Sorry to throw in three, but I mean, you make a great point. You’re talking about being a top three tracker provider. Let’s see, let’s use Array as a benchmark, $1.2 billion in revenue. That’s 12x growth for FTC from here. How do you think about timelines of achieving that, and then how do you feel about, you know, your ability to expand capacity to deal with that level of growth?

Yann Brandt, President and Chief Executive Officer, FTC Solar: Look, it’s, I think I said this before, it’s not gonna happen overnight, and it’s likely not going to be linear. If I compare the projects we were looking at on my first day at the company, versus what we’re looking at now, you know, I see 300, 400 megawatt projects, on a weekly basis that we get to bid, and we’re on the approved vendor list on both the IPP side and the EPC side, right? Like, those are some of the prerequisites that come along with it.

The headways that we’ve made on the product portfolio in order to get there, you know, the longer tracker, the washerless trackers, the terrain-following features, those are all things, you know, sometimes uniquely for a particular set of customers because they’re focused in a particular region or they have a certain way of installation. I don’t think that we’re going to have a capacity constraint if we’re able to convert, you know, the MSAs or project opportunities into bookings. That is not going to be a limit to, you know, what we’re able to do. We have a strong supply chain, both with our acquisition of Alpha Steel in Q4, that’s going to put us in our own control of it, as well as our contract manufacturing, you know, both here and across the world.

You know, it really comes down to what the customers are saying, right? What are the EPCs telling us? What are they telling you, around what the tracker mix is going to look like? Things can change pretty quickly, right? A couple of years ago, it changed in a bad direction for FTC. Now it’s pivoted and moving into the right direction for FTC. You know, I would point to the back half growth in 25 versus our peers as a leading indicator of that. Fundamentally, you know, I’m relaying the optimism that I get when I sit down with customers, you know, both here in the U.S. and abroad, that they want diversification. There’s a lot of concentration within some of the customers that they’re trying to get themselves out of.

That’s not a negative thing about our peers. Some are doing a really good job, but it’s the need for what is the architecture that works for the sites that are evolving, and who’s going to do what they say they’re going to do. They’re going to look at relationships, in order to leverage their decision-making. It’s an important moment for FTC to deliver what we’re gonna do. I think you see that in 25, that we were able to get customers to trust us and to buy from us. I think every MSA is another indicator of that. You know, so I don’t look at it as a 5x, 10x, 12x or more equation.

I view it as, you know, I sit across the table, my team sits across the table of a customer, and we win one project at a time and one portfolio at a time. That starts with MSAs, AVLs, et cetera.

Jon Windham, Analyst, UBS: Thank you so much. I appreciate your attention to my questions and your patience with me.

Yann Brandt, President and Chief Executive Officer, FTC Solar: Of course.

Jon Windham, Analyst, UBS: I’ll leave it there. Thanks.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Jeff Osborne of TD Cowen. Your line is now open.

Jeff Osborne, Analyst, TD Cowen: Thank you. Maybe just a few follow-up questions. The debt that Jon mentioned, the $19.9 million, what Cathy specifically needs to happen to be in compliance with that? I missed the answer to that.

Cathy Behnen, Chief Financial Officer, FTC Solar: As Jon was saying, it’s really just a technical definition that’s in the agreement. We’re really working with the lenders to develop the right solution for that. It’s just ongoing discussions and, you know, we have good confidence that it’s all moving in the right direction, so we’ll be able to get to the resolution quickly.

Jeff Osborne, Analyst, TD Cowen: In the event you needed to tap the ATM, I think you still have outstanding. Is that available to you or can you just remind us of your liquidity options beyond what’s on the balance sheet today?

Cathy Behnen, Chief Financial Officer, FTC Solar: Yes. We still have the ATM available to us. We did actually use the ATM in Q4. That continues to be available to us moving forward. You know, we also have, you know, expanded liquidity also within the debt agreement with our lenders.

Jeff Osborne, Analyst, TD Cowen: Got it. Maybe just switching gears then, for Yann. You know, post the FIOC announcement and maybe just give us a sense of the past month or so, what has the shifting pattern been as it relates to delivery schedules, would be helpful to understand. Then maybe just at a high level, the sequential decline with Q1, how much of that is normal seasonality versus the adverse weather conditions that we’ve had across the U.S. over the past few weeks?

Yann Brandt, President and Chief Executive Officer, FTC Solar: Look, I mean, I think you guys are more of an expert in the FIOC announcement, but, you know, some things were answered, some things were not. Overall, I think the market is continuing the way it was. Some tax equity providers are a little bit more cautious than others, but we haven’t seen that affect us in any particular way on a project or otherwise. You know, the cyclicality around Q1, I mean, I think it’s pretty normal when you look at historically for us as well as our peers. You know, our midpoint is modestly up year-over-year, obviously from a growth standpoint versus our peers that are down significant year-over-year in Q1.

Like, if I were to put a root cause, I think particularly for us is it was rather difficult to contract in the middle of OBBB and tariff Q2, Q3 last year. I think that’s what you’re starting to see. You know, that’s sort of a lagging indicator of what was really going on in Q2, Q3 of last year that muted where I was hoping we would be here in Q1. You know, it’s not like the projects have gone away. It’s just, you know, getting the contracting and really for them, for our customers to get the capital into those projects were delayed as the legislation and tariffs were figured out.

Jeff Osborne, Analyst, TD Cowen: Perfect. That’s all I had. Thank you.

Operator: Thank you. I’m showing no further questions at this time. Thank you for your participation in today’s conference. This does conclude the program. You may now disconnect.