FTC Solar (NASDAQ:FTCI) Posts Earnings Results, Misses Estimates By $0.32 EPS

FTC Solar (NASDAQ:FTCI) issued its quarterly earnings results on Wednesday. The company reported ($0.76) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.44) by ($0.32), FiscalAI reports. The company had revenue of $26.16 million during 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 Stock Down 4.2%

NASDAQ FTCI traded down $0.13 during trading hours on Wednesday, hitting $2.95. 425,402 shares of the stock were exchanged, compared to its average volume of 214,468. The company has a market cap of $47.20 million, a price-to-earnings ratio of -0.51 and a beta of 1.87. FTC Solar has a 12-month low of $2.57 and a 12-month high of $12.75. The stock has a 50-day moving average of $4.45 and a 200 day moving average of $5.67.

Analyst Ratings Changes

FTCI has been the topic of several analyst reports. TD Cowen lowered their target price on FTC Solar from $8.00 to $5.00 and set a “buy” rating on the stock in a research note on Wednesday, May 6th. Weiss Ratings restated a “sell (d-)” rating on shares of FTC Solar in a research note on Wednesday, June 24th. Finally, Wall Street Zen raised 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 assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, FTC Solar has an average rating of “Hold” and an average target price of $12.50.

Hedge Funds Weigh In On FTC Solar

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Jane Street Group LLC purchased a new position in shares of FTC Solar during the 2nd quarter worth approximately $79,000. Goldman Sachs Group Inc. lifted its holdings in shares of FTC Solar by 81.3% in the 1st quarter. Goldman Sachs Group Inc. now owns 30,581 shares of the company’s stock valued at $88,000 after buying an additional 13,715 shares during the period. Mercer Global Advisors Inc. ADV acquired a new position in FTC Solar during the fourth quarter worth $109,000. Hudson Bay Capital Management LP acquired a new position in FTC Solar during the fourth quarter worth $135,000. Finally, OMERS ADMINISTRATION Corp acquired a new position in FTC Solar during the fourth quarter worth $314,000. Institutional investors and hedge funds 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.