FTC Solar Reports 75.5% Revenue Growth but Incurred Increased Losses in Q2 2025

FTC Solar, Inc. reported its financial results for the second quarter of 2025, revealing a total revenue of $19.993 million, a significant increase of 75.5% compared to $11.430 million in the same period last year. The growth was driven by a notable rise in product revenue, which reached $15.867 million, up 80.8% from $8.776 million, and service revenue, which increased by 55.5% to $4.126 million from $2.654 million. Despite this revenue growth, the company experienced a gross loss of $3.919 million, compared to a gross loss of $2.343 million in the prior year, primarily due to increased costs associated with tariffs and logistics.

In terms of operational performance, FTC Solar's total cost of revenue rose to $23.912 million, reflecting a 73.6% increase from $13.773 million in the previous year. The increase in costs was attributed to a 147% rise in megawatts produced, additional costs related to tariffs, and increased logistics activity levels. The company's operating expenses also decreased to $7.580 million from $9.581 million, largely due to reduced selling and marketing expenses and lower general and administrative costs. However, the company reported a net loss of $15.430 million for the quarter, compared to a net loss of $12.241 million in the same quarter of 2024.

Strategically, FTC Solar has made significant moves to enhance its market position, including the launch of new products and the expansion of its operational capabilities. The company introduced its Automated Hail Stow Solution in May 2024, aimed at minimizing solar panel damage from hailstorms, and unveiled a dual-row configuration for its Pioneer tracker in April 2025. Additionally, FTC Solar has been focusing on diversifying its supply chain to mitigate risks associated with tariffs and supply chain disruptions, including its investment in Alpha Steel, a U.S.-based manufacturer.

As of June 30, 2025, FTC Solar had cash and cash equivalents of $3.519 million, a decrease from $11.247 million at the end of 2024. The company also reported a working capital of $9.7 million. In July 2025, FTC Solar entered into a Credit Agreement providing for a senior secured term facility of up to $75 million, which includes an initial term loan of $14.3 million. However, the company expressed substantial doubt about its ability to continue as a going concern within the next year, citing ongoing operating losses and the need for additional financing to support its operations.

Looking ahead, FTC Solar anticipates increased project activity and cash flow in the coming months, driven by its strategic initiatives and product offerings. The company is focused on improving its operational efficiency and expanding its market share, particularly in emerging markets. However, it remains cautious about potential challenges posed by market conditions, including fluctuating commodity prices and regulatory changes that could impact its business operations.