Tigo Energy (NASDAQ:TYGO) outlined its strategy to expand its solar hardware and software business, emphasizing market-share gains in module-level power electronics, growth in residential energy storage and inverters, and a potential expansion of its utility software operations.
Speaking at a company presentation, Chief Financial Officer Bill Roeschlein said Tigo supplies products designed to increase solar-panel energy yield, reduce operating costs through monitoring and improve safety through rapid-shutdown technology. The company’s core business is module-level power electronics, or MLPE, which includes devices installed beneath panels to optimize output.
“We’re a leading provider of MLPE, module level power electronics,” Roeschlein said, adding that the company’s products can work with a range of inverters. He identified SolarEdge and microinverter providers as key competitive alternatives, while noting that non-optimized solar installations remain the largest competitive category.
Market Share and Product Expansion
Roeschlein cited Wood Mackenzie data showing Tigo’s share of the market for optimized DC solutions rose to 21% from 9% in 2022. He said the market-share increase has supported the company’s performance beyond broader solar-market conditions.
The company has also broadened its product lineup beyond MLPE with its GO ESS residential energy-storage systems, including residential inverters and batteries. Tigo primarily serves the U.S. and European markets for those products.
For the first half of the year, MLPE represented 86% of Tigo’s revenue, according to Roeschlein. The company has significant activity in Germany, Poland, Italy, the U.K. and the U.S., while 71% of revenue during the most recent six months came from the Europe, Middle East and Africa region.
Tigo is pursuing partnerships as part of its expansion strategy. Roeschlein highlighted a partnership with U.S. inverter company EG4 for an optimized inverter offering, as well as work with Otovo on repowering older, orphaned solar systems. He said older systems may require inverter replacements because inverter warranty periods often fall short of the 25-year expected life of solar panels.
U.S. Manufacturing and Tax Credits
Tigo historically used outsourced manufacturing operations in China and Thailand. Over the past year, it established operations in Washington state to support the U.S. market.
Roeschlein said U.S. manufacturing can enable the company to access Internal Revenue Service Section 45X tax credits, helping offset the higher cost of domestic production. He also said customers may benefit from investment tax credits associated with solar equipment, including a 30% tax credit and a possible 10% bonus credit.
The U.S. residential rooftop solar market has been under pressure, according to Roeschlein. He said analysts initially expected a 16% market decline following the elimination of the Section 25D consumer tax credit, but published data has indicated a decline closer to 19% to 20%.
He said Tigo had been particularly exposed to cash buyers, which represented about 60% of its U.S. sales while the tax deduction was in place. That segment has fallen to about 30%, he said.
International Growth Plans and Utility Software
Roeschlein said subsidy reductions in Germany, Poland and the Czech Republic contributed to weaker-than-expected demand in those markets. However, he said the company expects the markets where it operates to recover following subsidy changes.
Looking toward 2027, Tigo plans to pursue additional opportunities in markets where it has less established distribution and sales coverage, including Romania, France and the U.K. The company also plans to focus on commercial and industrial, as well as utility-scale, solar opportunities in Thailand and the Philippines.
Tigo’s smallest business, representing 2% of revenue, is its Predict+ utility software offering. The platform helps utilities forecast supply and demand and is used primarily in Israel, Roeschlein said. Tigo is seeking to expand its addressable market for the software beyond Europe and into the U.S., although he noted that utility sales cycles are long.
Financial Position and Profitability
Tigo reported approximately $103 million in revenue last year and a trailing-12-month run rate of about $111 million. Roeschlein said the company had recently guided to revenue of $100 million to $110 million. He also said Tigo repaid a $50 million convertible note at the end of the prior year and ended with positive cash.
The company generated $145 million in revenue in 2023, followed by $54 million in 2024 and $103 million in 2025, according to Roeschlein. He characterized 2026 as a relatively flat year as solar subsidies have been reduced.
Roeschlein said Tigo has produced gross margins in the low 40% range and was EBITDA-positive last year. The company’s current EBITDA guidance is between a loss of $1 million and positive $500,000.
“As we tick up in our revenues, as we increase that top-line growth, we are in a good position to scale the growth,” Roeschlein said. He added that Tigo is holding operating expenses relatively flat and targets gross margins of 40% or more and EBITDA margins of 20% or better as revenue expands.
Roeschlein also said Tigo is evaluating inorganic growth opportunities. He noted that bankruptcies and business closures in the solar market have created assets that may be available for acquisition.
About Tigo Energy (NASDAQ:TYGO)
Tigo Energy, Inc is a solar technology company that develops hardware and software for photovoltaic (PV) systems. Its products are designed to improve the flexibility, safety, visibility and performance of residential, commercial and utility-scale solar installations.
The company’s product portfolio includes its TS4 Flex Module Level Power Electronics platform, which can provide module-level optimization, monitoring and rapid shutdown capabilities. Tigo also offers communication and rapid-shutdown equipment, energy monitoring tools, and solutions that support solar-plus-storage systems.
