FTC Solar Reports 65.3% Revenue Growth to $20.8 Million in Q1 2025

FTC Solar, Inc. reported a total revenue of $20.8 million for the first quarter of 2025, marking a significant increase of 65.3% compared to $12.6 million in the same period of 2024. The growth was driven primarily by a 66.9% rise in product revenue, which reached $18.2 million, and a 54.6% increase in service revenue, totaling $2.6 million. Despite this revenue growth, the company experienced a gross loss of $3.4 million, slightly worsening from a gross loss of $2.1 million in the prior year, attributed to rising costs associated with increased production and logistics activity.

In terms of operational metrics, FTC Solar reported a 147% increase in megawatts produced, reflecting heightened project activity. However, the average selling price (ASP) for products decreased by 32%, influenced by changes in project mix. The company’s total operating expenses also decreased to $7.1 million from $10.4 million year-over-year, primarily due to reduced research and development and selling and marketing expenses. The net loss for the quarter was $3.8 million, an improvement from a net loss of $8.8 million in the first quarter of 2024.

Strategically, FTC Solar continues to focus on enhancing its product offerings and expanding its market presence. The company has made significant investments in technology, including the launch of its SUNOPS cloud-based solar asset monitoring solution and the Automated Hail Stow Solution, aimed at minimizing damage to solar panels from hailstorms. Additionally, FTC Solar is actively working to diversify its supply chain and reduce reliance on international suppliers, particularly in light of ongoing trade tensions and tariffs affecting the solar industry.

As of March 31, 2025, FTC Solar had $5.9 million in cash and cash equivalents, down from $11.2 million at the end of 2024. The company also reported a working capital of $20.2 million. However, management expressed substantial doubt regarding the company's ability to continue as a going concern over the next year, citing ongoing cash outflows and the need for additional financing. The company has approximately $64.9 million of capacity available for future sales of its common stock under its at-the-market (ATM) program, which it may utilize to bolster its liquidity.

Looking ahead, FTC Solar anticipates increased project activity and cash flow in the coming months, supported by its strategic initiatives and product innovations. However, the company remains cautious about external factors such as market conditions, regulatory changes, and supply chain disruptions that could impact its financial performance and operational capabilities.