FTC Solar (NASDAQ:FTCI) Issues Earnings Results, Misses Expectations By $0.32 EPS

FTC Solar (NASDAQ:FTCI) released its quarterly earnings results on Wednesday. The company reported ($0.76) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.44) by ($0.32), FiscalAI reports. The company had revenue of $26.16 million for the quarter, compared to analysts’ expectations of $24.39 million.

Here are the key takeaways from FTC Solar’s conference call:

• Q2 revenue reached $26.2 million, up 51.5% sequentially and 30.8% year over year, slightly exceeding the company’s target range. FTC Solar reaffirmed its expectation for at least 40% full-year 2026 revenue growth, with Q3 revenue projected at $30 million to $35 million.
• Customer traction is expanding, including a new 400-megawatt 1P purchase order from a top-five EPC for a top-five U.S. developer and a roughly 100-megawatt 1P order from an existing 2P customer. FTC is now approved on the AVLs of nine of the top 10 EPCs and recently added five large EPCs and six large developers.
• International expansion is gaining momentum, with a new approximately 90-megawatt Australian win, a previously announced 330-plus-megawatt Australian project moving forward, and multiple initial India projects ranging from pilots to more than 100 megawatts. Management also highlighted potential future productivity gains from AI, software, and construction robotics.
• The company remains unprofitable, reporting a GAAP gross loss of $2.2 million and an adjusted EBITDA loss of $9.8 million in Q2, while non-GAAP gross margin was negative 5.1%. Management expects margins to improve with scale, supply-chain initiatives, and cost reductions, but profitability has not yet been achieved.
• Liquidity and financing remain significant risks: FTC ended Q2 with only $11.2 million in cash, below its $15 million lender covenant, and also missed its minimum margin covenant. Although lenders waived the Q2 breaches and the company established a potential $20 million equity line, all credit-agreement borrowings were classified as current and future covenant waivers are not assured.

FTC Solar Price Performance

Shares of FTC Solar stock traded down $0.13 during midday trading on Wednesday, hitting $2.95. 425,402 shares of the company were exchanged, compared to its average volume of 214,468. The firm has a 50 day simple moving average of $4.45 and a 200-day simple moving average of $5.67. FTC Solar has a 52 week low of $2.57 and a 52 week high of $12.75. The firm has a market cap of $47.20 million, a P/E ratio of -0.51 and a beta of 1.87.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on the company. Weiss Ratings reissued a “sell (d-)” rating on shares of FTC Solar in a research report on Wednesday, June 24th. TD Cowen cut their price objective on FTC Solar from $8.00 to $5.00 and set a “buy” rating for the company in a research report on Wednesday, May 6th. Finally, Wall Street Zen upgraded shares of FTC Solar from a “sell” rating to a “hold” rating in a report on Saturday, June 20th. Three investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $12.50.

Institutional Trading of FTC Solar

A number of institutional investors have recently made changes to their positions in the business. Jane Street Group LLC acquired a new position in FTC Solar in the 4th quarter valued at $135,000. Squarepoint Ops LLC purchased a new position in shares of FTC Solar during the fourth quarter valued at approximately $581,000. Marshall Wace LLP bought a new stake in shares of FTC Solar during the 4th quarter worth $762,000. Goldman Sachs Group Inc. lifted its position in shares of FTC Solar by 29.4% during the 4th quarter. Goldman Sachs Group Inc. now owns 81,798 shares of the company’s stock valued at $892,000 after buying an additional 18,607 shares during the last quarter. Finally, OMERS ADMINISTRATION Corp purchased a new stake in FTC Solar during the 4th quarter worth about $314,000. Institutional investors own 45.36% of the company’s stock.

About FTC Solar

FTC Solar, Inc (NASDAQ:FTCI) specializes in the design, manufacturing and deployment of solar tracker systems for utility-scale photovoltaic power plants. The company’s tracker solutions are engineered to follow the sun’s path and optimize energy capture, helping customers maximize the performance of their solar assets. In addition to its core mechanical tracker products, FTC Solar offers advanced supervisory control and data acquisition (SCADA) software that enables remote monitoring, predictive maintenance and performance analytics.

Headquartered in Austin, Texas, FTC Solar supports large-scale solar projects across multiple regions, including North America, Latin America, Europe and the Middle East.