TYGO

Image source: The Motley Fool. Tuesday, Aug. 4, 2026 at 4:30 p.m. ET Chief Executive Officer - Zvi Alon Chief Financial Officer - Bill Roeschlein Operator: Good afternoon. Welcome to Tigo Energy's Fiscal Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Joining us today from Tigo are Zvi Alon, CEO; and Bill Roeschlein, CFO. As a reminder, this call is being recorded. I would now like to turn the call over to Bill Roeschlein, Chief Financial Officer. Bill Roeschlein: Thank you, operator, and it's a pleasure to join you today from our corporate offices in Los Gatos, California. Also with us is Zvi Alon, our CEO. We'd like to remind everyone that some of the matters we'll discuss on this call, including expected business outlook, our ability to increase our revenues and achieve -- and maintain profitability, our overall long-term growth prospects, expectations regarding continued recovery in our industry, statements about demand for our products, our competitive position and market share, the impact of tariffs and other trade barriers, including U.S. restrictions on foreign produced power inverters, the anticipated impact of regulatory actions, including actions by the FCC and the European Union on demand for our products, our current and our future inventory levels, charges and reserves and their impact on future financial results, inventory supply and its impact on customer shipments, statements about our revenue and adjusted EBITDA for the third fiscal quarter of 2026, and our revenue for the full fiscal year 2026, the expected timing of the market introduction and volume ramp of our Section 45X and ITC-qualified optimized inverter solution, our ability to penetrate new markets and expand our market share including expansion in international markets and our continued expansion of and investments in our product portfolio and the timing thereof, and our U.S. manufacturing strategy are all forward-looking and, as such, are subject to known and unknown risks and uncertainties including, but not limited to, those factors described in today's press release and discussed in the Risk Factors section of our most recent annual report on Form 10-K, our quarterly report on Form 10-Q for the fiscal quarter ended June 30, 2026, and other reports that we may file with the FCC from time to time. These risks and uncertainties could cause actual results to materially -- to differ materially from those expressed on this call. Those forward-looking statements are made only as of the date when made. During our call today, we will reference certain non-GAAP financial measures. We include reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures in our press release furnished as an exhibit on our Form 8-K. The non-GAAP financial measures provided should not be considered as a substitute for or superior to measures of financial performance prepared in accordance with GAAP. Finally, I would like to remind everyone that this call is being webcast and a recording will be made available for replay on Tigo's Investor Relations website at investors.tigoenergy.com. With that, I'd like to now turn the call over to Tigo's CEO, Zvi Alon. Zvi? Zvi Alon: Thank you, Bill. To begin today's discussion, I will highlight key area of our recent financial operational performance before turning the call over to our CFO, Bill. He will discuss our second quarter financial results in more depth and provide our guidance for the third quarter and revised outlook for the full year of 2026. After that, I will share some closing remarks and then open the call for questions from our analysts. Second quarter revenue grew 5.6% year-over-year to $25.4 million, but came in below our expectations. While results were below our prior guidance and the variance was primarily driven by external timing factors and current market conditions. To put that in context, we grew overall revenue year-over-year in a quarter when residential solar contracted in many of the markets that we serve. In the U.S., Q2 residential volumes contracted to post the 25B, in line with the Wood Mac annual expectation of 21% decline. And Italy and Czech residential installations both declined double digits, respectively. In the first half, residential installations in Germany, meanwhile, are recovering off a 21% decline in Q1 of 2026, according to the German Solar Industry Association. In the United States, sales were down 4% year-over-year following the expiration of the residential clean energy tax credit. In addition, our U.S. optimized inverter partner encountered operational delays that will shift the time line of market introduction of our Section 45X and ITC-qualified optimized inverter solution with volume shipments now expected to begin ramping up in the fourth quarter. While this timing shift will delay the near-term contribution, the FCC's recent decision to restrict future authorization of foreign-produced power inverters strengthens the strategic relationship of our U.S. manufacturing strategy and positions our Section 45X and ITC-qualified optimized inverter solutions to meet the growing demand for domestically produced solar products. In Europe, the market recovery continues at a more measured pace than anticipated. Similar to the U.S. market, the European Union restriction on inverters from high-risk vendors in EU-funded projects is directing demand towards trusted vendors in countries where Tigo is already strong, including Czech Republic and Poland. We believe Tigo is one of the few companies in the solar industry positioned to benefit from both of these policy actions. Encouragingly, Germany and Italy grew 6% and 20% year-over-year, respectively. [ Despite ] weakness in both residential markets, we have delivered year-over-year growth in Spain, Australia, demonstrating the benefits of our diversified geographic footprint. In Germany, specifically, the cabinet approved changes in July that would fix the feed-in tariff for new systems beginning in 2027. While systems connected to the grid by the end of this year keep their existing terms, we believe this should pull demand into the second half of 2026 and raise the value of the storage and self-consumption, which is what our MLPE and storage products are designed to deliver. Within our product portfolio, GO ESS contributed $2.2 million or 8.6% of the quarterly revenue as the ramp of our new GO battery progressed more slowly than planned. In summary, we remain focused on advancing our product initiatives, expanding partner relationships, aligning our cost structure with near-term demand and maintaining close control of working capital. These priorities are central to capitalizing on the broader international opportunities and driving more consistent growth and sustainable profitability. And with that, I will turn it over to Bill. Bill? Bill Roeschlein: Thank you, Zvi. Turning now to our financial results for the second quarter ended June 30, 2026. Revenue for the second quarter of 2026 increased 5.6% to $25.4 million from $24.1 million in the prior year period. On a sequential basis, revenue increased 0.8% from $25.2 million in the first quarter. By region, EMEA represented 73.1% of total revenue. APAC represented 10.1%, and the Americas and LatAm represented a combined 16.8%. By product family, for the second quarter of 2026, MLPE revenue represented $22.7 million of revenue or 89.2% of total revenues. GO ESS revenue was $2.2 million, representing 8.6% of total second quarter revenue and EI platform revenue represented $0.6 million or 2.2% of total revenues during the quarter with Predict+ annual recurring revenue reaching $1.7 million at quarter end. Gross profit in the second quarter was $10 million or 39.3% of revenue compared with a gross profit of $10.8 million or 44.7% of revenue in the comparable year ago period. Excluding GO ESS gross margin was 42.1%, with the difference primarily attributable to the sale of our remaining stock of older EI batteries. Operating expenses for the second quarter decreased 4.8% to $11.7 million from $12.3 million in the prior year period and decreased 11.6% sequentially. We remain focused on disciplined expense management throughout the quarter. Operating loss for the second quarter was $1.7 million compared with an operating loss of $1.5 million in the prior year period. GAAP net income for the second quarter was $2.2 million compared with a GAAP net loss of $4.4 million in the prior year period. Second quarter net income included a $3.2 million income tax benefit. On a pretax basis, we recorded a loss of $1 million. Non-GAAP net income, which excludes stock-based compensation from GAAP net income or loss was $3.6 million compared with a non-GAAP net loss of $2.1 million in the prior year period. As a reminder, we believe this measure provides investors with additional insight into our progress towards achieving consistent GAAP net income. Adjusted EBITDA for the second quarter was $52,000 compared with an adjusted EBITDA of $1.1 million in the prior year period. As a reminder, adjusted EBITDA is a non-GAAP measure that represents earnings or loss before interest and other expenses, net income tax benefit or expense depreciation and amortization as adjusted to exclude stock-based compensation and merger-related transaction expenses. We believe this measure provides helpful supplemental information regarding our performance by excluding certain items that may not be indicative of our core business operating results, providing investors with additional insight on key metrics used by management. Weighted average basic shares outstanding during the quarter were 76.3 million. Turning to the balance sheet. Accounts receivable net decreased to $13.6 million from $14.2 million at the end of the first quarter and from $13.9 million at year-end 2025. Inventory decreased to $20.6 million from $24.8 million at the end of the first quarter. Compared with year-end 2025, inventory declined by $10.7 million or 34.3%. Cash and cash equivalents totaled $16.9 million at June 30, 2026, an increase of $5.3 million sequentially and $9.2 million from year-end 2025. At the end of the second quarter, we had $4.1 million in borrowings outstanding under our revolving credit facility. We remain focused on working capital discipline and maintaining appropriate liquidity as we execute our operating plan. Both inventory and receivables declined during the quarter, which, together with the facility draw, supported the sequential increase in cash. Turning now to our financial guidance for the third quarter of 2026 and our outlook for the full year 2026. As a reminder, Tigo provides quarterly guidance for revenue and adjusted EBITDA as we believe these metrics are key indicators for the overall performance of our business. For the third quarter of 2026, we expect revenue and adjusted EBITDA to be in the following ranges. We expect revenue for the third quarter ending September 30, 2026, to range between $24 million and $26 million. We expect adjusted EBITDA to range from a loss of $1 million to a positive $500,000. For the full year of 2026, we are updating our revenue outlook and now expect revenue to range between $100 million and $110 million. The revision reflects our U.S. optimized inverter partners shift of its go-to-market launch to the fourth quarter, the slower ramp of our new GO Battery and a more gradual market recovery in Europe. We believe the anticipated fourth quarter launch of our domestically produced optimized inverter solution together with the anticipated demand created by the FCC in the U.S. and European Union actions in EMEA positions us for a stronger end to 2026. That completes my summary, and I'd now like to turn the call back over to Zvi for final remarks. Zvi Alon: Thanks, Bill. While our second quarter revenue results was below our expectations, the year-over-year growth we delivered in Germany, Italy, Spain and Australia demonstrates the benefits of our diversified geography footprint. We remain focused on advancing our product initiatives and expanding partner relationship, including U.S. manufacturing strategy, which we believe has become increasingly relevant following the FCC's recent action on produced power inverters. Combined with the disciplined expense and working capital management, we believe these priorities positions Tigo to capitalize on the broad international opportunities and improve profitability over time. With that, operator, please open the call for Q&A. Philip Shen: Wanted to explore the EG4 delays. Originally, it was expected Q1 when you first announced it and then got pushed back later to Q2 for ramp, and now we're looking at Q4. You don't give much of a rationale. Can you explain what's going on and why the delays are happening? Zvi Alon: Phil, thank you for the question. What I will highlight is that we -- as we've highlighted before, we actually shipped our products to EG4 and it's in their possession already. They had some internal issues that they had to deal with. And I'm not sure that I'm quite in a position to actually explain what happened. But it's not anything which is a demonstration of a change of the plan. It really is just an operational timing issue. They had several moving parts that conflicted and caused the delays. But we are fairly sure that we are back on track and that we will be seeing the results as we've expected now that it will come in, in Q4. Philip Shen: Okay. And what gives you that confidence? And what is your confidence level? Are you 100% that Q4 is the ramp? Or are you 80% confident or maybe 50% confident? Zvi Alon: The reason for our confidence is obviously, we are very closely monitoring the situation, and we are very much aware of the various conditions that have pushed it. And I would say that at this stage right now, I'm fairly confident, I would say, close to 100%. You never say 100% because life is not so certain, but it's as close as possible to the 100%. Philip Shen: Okay. Okay. So... Zvi Alon: By the way, Phil, they paid us for the product. So they have an incentive. Philip Shen: Yes. That's important to note. Yes. Okay. Good. Now this margin -- okay. So you took down the annual guidance, Zvi. And Q3 is coming lower than expected. The full year is coming in lower. You highlighted the three reasons there. Europe is a little bit softer, this EG4 issue. And so what -- can you just give us some more color on that kind of lowering of the guidance? And would you expect acceleration in 2027? And if so, in '27, which part -- like which quarter of the year do you think we could see an acceleration? Zvi Alon: So what I will tell you is that we are obviously disappointed. We had to bring it down and the fact that we've seen those delays. We felt fairly confident that we will be able to weather the storm as we entered the year because every indication was that there was going to be a slowdown. And we've had all the initiatives we've taken to show us that we will be able to grow. We're coming in at basically flat year-over-year. I can tell you that we do see some signs, but we don't want to convert it into predictions yet on a return to some more normalcy, which will mean growth for us as opposed to just staying flat, from that perspective. And the other component, which I want to stress is that we are fairly disciplined in managing our operations and cash and we did manage to increase the cash over the last couple of quarters as well. So from that perspective, we're in a fairly good shape actually. Philip Shen: Okay. Good. And then could we see acceleration in the first quarter next year? Or do you think it's more likely Q2? Zvi Alon: I would like to believe it's more like a Q1. Philip Shen: Okay. And as we go into this weaker kind of period in Q3 and Q4, should margins kind of be -- gross margins be in line with kind of Q2 levels? Or do you think you can get back to prior year levels? My guess is you kind of stay flat Q3 and Q4, but just curious, quarter-over-quarter, what kind of movement we might see? Bill Roeschlein: I think you're most likely right on that, and our target gross margin is 40%. So that's where I think we'll end up. Philip Shen: Okay. As it relates to -- you guys said on the Q1 call that you had several utility-scale pipeline deals expected to materialize in '26. What's the update there? Have any of these contracts crossed the finish line? And what does the timing look like for this opportunity if it hasn't? Zvi Alon: So they have not crossed the finish line. We have not taken them off the radar screen. They are going through some delays like big projects are going through, but we are still in play. It's just that predicting the timing is a little bit more challenged. And so we're trying to be a little bit more careful in those predictions. But the projects are still very valid. Philip Shen: Okay. And did you -- can you give the reason for why it hasn't closed as you expected? Zvi Alon: So one of them happens to be overseas, and there is a timing related to how quickly could they could have started before the winter is coming in. And that caused some delays on this project. And similarly, the other project is -- they've gone through some internal operational changes, which caused the delay but we do believe that they are back on track right now. So we will see how quickly it comes to fruition. Philip Shen: Okay. Got it. One last one, I'll pass it on. I know I've taken a lot. The FCC inverter ban, we've heard a fair amount about this. I know you said that it benefits you, but it benefits you in so far as your new models are not made in some of these countries that might see a ban or with companies that might see a ban. So it could be Chinese companies that are operating in Vietnam or other countries that you might source from. And so just curious if you can just talk about how you are exposed at all, if any, do you have any exposure at all? And then what the plan is to avoid being adversely impacted? Zvi Alon: Most welcome. And thanks for the questions, Phil. You can keep on asking. So let me address the FCC issue. FCC is composed of two components. There is the communication aspect of it, communication and control. And then there is the actual location of manufacturing and whatnot. On the location manufacturing, we already started the move into the U.S. and we started shipping from the U.S. And from that perspective, our exposure is going to come down. On the communication, we've always been controlling our communication aspects of the inverters. And actually, we stand the chance of expanding it to other inverters as we've been doing it in the past, but not as the sole supplier. So from that perspective, it might open an opportunity for us as opposed to be presenting the challenge. Amit Dayal: So this issue with EG4, you are indicating is more operational, but is there any demand issue that you might -- these guys might be facing that is impacting the pushout and these delays? Zvi Alon: Look, the fact that the markets are slowing down a little bit, that's not a secret. That's very well known and has been published multiple times by several companies out there. So from that perspective, we do see a little bit more of a tentative market in general. But with the bigger projects, and we've seen a shift in our installed base to not just residential, but also to C&I and the large utility scale. So from that perspective, those markets have been less impacted, but they go on their own pace. It's not the same as in the residential, which has been the majority of our market. So that's why we are starting to see a bit of a slowdown. We are encouraged on the other hand, by the change in momentum in Germany, as I've highlighted before, in other places where we've seen growth actually in those areas, and we expect that it will continue. Amit Dayal: Okay. So part of the thinking, I guess, when you provided guidance in 1Q for $130 million to $135 million was some pickup in the U.S. market. So should we assume the U.S. market will continue to be a drag basically for the next year? Or do you see any catalysts that could help support demand over here in the U.S.? Zvi Alon: Generally speaking, we've seen two phenomenons happening. One is a slowdown in general on one hand. But on the other hand, we've seen an increase in the adoption of storage solutions. So we've seen an increase on storage and a decrease in solar installations. I don't know what will be the impact overall. And I do believe that we're going to start seeing storage actually increasing even more, specifically as everyone gets the -- to realize the benefits and understand the benefits of owning those storage solutions. So we will have to wait and see how the market evolves here in the U.S., but it is a challenge in general. Amit Dayal: Understood. Most of my other questions are already discussed. So I'll take my questions off-line. Eric Stine: Can we just step back a little bit? Obviously, EG4, arguably the biggest factor, it likely is the biggest factor in the guidance reduction. But -- if I think about kind of your thought process coming into the year and the 25% plus growth, I mean, obviously, the market challenges were well known, you were incorporating that. And one of the things was in the U.S., repowering, which obviously didn't benefit from the credit anyways. And then when you're talking about Europe, I mean, you were gaining some share there, but really not counting on market improvement. So it does seem like has your view of those markets changed in terms of -- you really weren't counting on market improvement to hit those numbers. So maybe just expand on your thought process in those two areas specifically. Zvi Alon: You're absolutely right, Eric. When we guided, the sentiment for actually projecting that growth was related to predominantly the EG4 factor, which was supposed to be earlier in the year and go through those delays. And we've been exposed to the potential numbers, obviously, which we shared in the -- in some of the estimates. So they did have a factor. And now we are trying to go back to some sort of reality sense, and it's going to be Q4, and it would put us essentially finishing the year flat to last year. And even that, in a market which is being challenged on its own without having any new initiatives. Now I did mention the last couple of quarters, that we are working on some larger projects, which, as I've indicated earlier today in answering the question that we have not quite lost these projects. They are still in the background and they're just taking a little bit longer. So we are trying to be a little bit more timid on using it to provide better guidance for the rest of the year. So we are trying to be a little bit more conservative. That's it. But we feel fairly confident with where we -- the guidance we provided despite the fact that the market is challenging. Eric Stine: Okay. And I'll just keep it to two questions. But digging into your thought process on the guide certainly implies that Q4 looks a lot like the first 3. I mean, are you assuming at the low end that EG4 -- I mean, even though you said you're nearly 100% confident that the ramp starts, I mean, at the low end, are you just assuming, hey, maybe it starts in Q4, but there's very limited impact and that would be the reason for that. What gets you to the low end and what gets you to the high end of that $100 million to $110 million? Zvi Alon: You're absolutely 100% right. We are really trying to be very conservative on that side. But we do look at the EG4 based on the confidence we have as being a positive surprise, I would say, if you want, or at least a good story to deliver. And we are trying to be very careful not expanding -- overexpanding ourselves or financially stretching ourselves with a plan that would be otherwise challenged. Zvi Alon: Thank you again, everyone, for joining us today. I especially want to thank to our dedicated employees for their ongoing contribution as well as our customers and partners for their continued hard work. I also want to thank the investors for their continued support. Operator? Operator: Thank you for joining us today for Tigo's Second Quarter 2026 Earnings Conference Call. You may now disconnect. Before you buy stock in Tigo Energy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Tigo Energy wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Tigo Energy (TYGO) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Tigo Energy, Inc.? Here are five stocks we like better. Q2 revenue rose 5.6% year over year to $25.4 million, but missed expectations as residential solar markets weakened in the U.S., Italy and the Czech Republic. The delayed EG4 optimized-inverter launch also limited results. Tigo expects EG4 volume shipments to ramp in the fourth quarter and is expanding U.S. manufacturing, which could benefit from new restrictions on foreign-produced inverters. However, the GO Battery rollout and European recovery have progressed more slowly than planned. The company reduced its 2026 revenue outlook to $100 million–$110 million, with third-quarter revenue projected at $24 million–$26 million. Cash improved to $16.9 million, though gross margin declined to 39.3% and adjusted EBITDA fell to $52,000. Tigo Energy (NASDAQ:TYGO) reported second-quarter 2026 revenue growth of 5.6% from a year earlier, though results fell below the company’s expectations amid softer residential solar markets and delays in the launch of an optimized inverter solution with U.S. partner EG4. Revenue for the quarter ended June 30 totaled $25.4 million, compared with $24.1 million in the prior-year period and $25.2 million in the first quarter. CEO Zvi Alon said the company delivered year-over-year growth despite residential solar contraction in several markets it serves, but described the quarter as below prior guidance because of external timing factors and market conditions. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control “We grew overall revenue year-over-year in a quarter when residential solar contracted in many of the markets that we serve,” Alon said. Alon said U.S. sales declined 4% year over year following the expiration of the Residential Clean Energy Credit, while Wood Mackenzie has forecast a 21% annual decline in U.S. residential volumes in the post-25D environment. Residential installations also declined by double digits in Italy and the Czech Republic, according to the company. → Why Rare Earth Processing Could Be the Real 2027 Opportunity The company’s anticipated contribution from its Section 45X- and ITC-qualified optimized inverter solution was delayed after its U.S. optimized inverter partner encountered operational issues. Volume shipments are now expected to begin ramping in the fourth quarter, rather than earlier in the year. During the question-and-answer session, Alon said Tigo had already shipped products to EG4 and that the partner had paid for them. He characterized the delay as an operational timing matter involving “several moving parts,” rather than a change in the companies’ plan. Alon said he was “fairly confident,” and close to 100% confident, that the ramp would begin in the fourth quarter. → TSMC Insiders Are Buying the Pullback—But Is the Signal as Bullish as It Looks? Tigo said the Federal Communications Commission’s decision to restrict future authorization of foreign-produced power inverters could support its U.S. manufacturing strategy. Alon said Tigo has begun moving production to the United States and has started shipping from the country. He also said the company controls the communications aspects of its inverters and could see an opportunity to extend that capability to other inverter products. In Europe, management said the market recovery has progressed more gradually than expected. Still, Alon cited year-over-year growth of 6% in Germany and 20% in Italy, along with growth in Spain and Australia, as evidence of the benefits of Tigo’s geographically diversified business. The company said European Union restrictions on inverters from high-risk vendors in EU-funded projects could direct demand toward trusted vendors in markets where Tigo has an established presence, including the Czech Republic and Poland. Germany’s cabinet approved changes in July that would fix the feed-in tariff for new systems beginning in 2027, while systems connected to the grid by the end of 2026 would retain existing terms. Alon said Tigo believes the change could pull demand into the second half of 2026 and increase the value of storage and self-consumption products. Tigo’s GO ESS business generated $2.2 million, or 8.6%, of quarterly revenue. Management said the ramp of its new GO Battery was slower than planned. MLPE revenue was $22.7 million, representing 89.2% of total revenue, while EI Platform revenue totaled $600,000. Predict+ annual recurring revenue reached $1.7 million at quarter-end. Second-quarter gross profit was $10 million, or 39.3% of revenue, compared with $10.8 million, or 44.7% of revenue, a year earlier. Excluding GO ESS, gross margin was 42.1%. CFO Bill Roeschlein said the difference was primarily due to sales of the company’s remaining inventory of older EI batteries. Operating expenses declined 4.8% year over year to $11.7 million and fell 11.6% sequentially. Tigo reported an operating loss of $1.7 million, compared with an operating loss of $1.5 million in the prior-year quarter. GAAP net income was $2.2 million, versus a GAAP net loss of $4.4 million a year earlier. The quarter’s result included a $3.2 million income tax benefit; on a pretax basis, the company recorded a $1 million loss. Non-GAAP net income was $3.6 million, compared with a non-GAAP net loss of $2.1 million in the prior-year period. Adjusted EBITDA was $52,000, down from $1.1 million a year earlier. Tigo ended the quarter with $16.9 million in cash and cash equivalents, up $5.3 million sequentially and $9.2 million from year-end 2025. Inventory declined to $20.6 million from $24.8 million at the end of the first quarter, while accounts receivable decreased to $13.6 million from $14.2 million. The company had $4.1 million outstanding under its revolving credit facility. Tigo forecast third-quarter revenue of $24 million to $26 million and adjusted EBITDA ranging from a loss of $1 million to positive $500,000. For full-year 2026, the company reduced its revenue outlook to $100 million to $110 million. Roeschlein said the revised outlook reflects the delayed EG4 go-to-market launch, the slower GO Battery ramp and the more gradual European market recovery. During the call, he said Tigo’s gross-margin target remains 40%. Alon said the company is taking a conservative approach to its full-year outlook and is not relying heavily on fourth-quarter contribution from EG4 or delayed utility-scale projects. Management said several utility-scale opportunities remain active but have been delayed by project timing and internal operational changes at customers. Looking ahead, Alon said he expects signs of a return to more normal market conditions and said he would “like to believe” growth could accelerate in the first quarter of 2027. He emphasized that Tigo remains focused on product initiatives, partner relationships, U.S. manufacturing, expense discipline and working-capital management. Tigo Energy, Inc (NASDAQ: TYGO) is a U.S.-based provider of module-level power electronics (MLPE) solutions designed to optimize the performance and safety of solar photovoltaic systems. Founded in 2007 and headquartered in Campbell, California, Tigo Energy develops hardware and software tools that enhance energy yield, improve system reliability, and streamline compliance with electrical codes. The company's technology platform is used by solar installers, project developers, and module manufacturers to deliver higher returns on investment and bolster the safety profile of PV arrays. At the core of Tigo's offerings is its TS4 platform, a modular MLPE solution that enables real-time monitoring, rapid shutdown functionality, and maximum power point tracking at the panel level. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Tigo Energy Q2 Earnings Call Highlights" was originally published by MarketBeat. 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This article first appeared on GuruFocus. Revenue: $25.4 million, up 5.6% year-over-year from $24.1 million and up 0.8% sequentially from $25.2 million. Revenue by Region: EMEA represented 73.1% of total revenue, APAC 10.1%, and the Americas and LatAm a combined 16.8%. MLPE Revenue: $22.7 million, or 89.2% of total revenue. GO ESS Revenue: $2.2 million, or 8.6% of total revenue. EI Platform Revenue: $0.6 million, or 2.2% of total revenue, with Predict Plus annual recurring revenue reaching $1.7 million. Gross Profit: $10 million, or 39.3% of revenue, compared with $10.8 million or 44.7% in the prior year period. Excluding GO ESS, gross margin was 42.1%. Operating Expenses: Decreased 4.8% year-over-year to $11.7 million from $12.3 million. Operating Loss: $1.7 million, compared with an operating loss of $1.5 million in the prior year period. Net Income: $2.2 million, compared with a GAAP net loss of $4.4 million in the prior year period, including a $3.2 million income tax benefit. Non-GAAP Net Income: $3.6 million, compared with a non-GAAP net loss of $2.1 million in the prior year period. Adjusted EBITDA: $52,000, compared with $1.1 million in the prior year period. Cash and Cash Equivalents: $16.9 million at June 30, 2026, an increase of $5.3 million sequentially and $9.2 million from year-end 2025. Inventory: Decreased to $20.6 million from $24.8 million at the end of the first quarter and down $10.7 million or 34.3% from year-end 2025. Accounts Receivable: Decreased to $13.6 million from $14.2 million at the end of the first quarter. Q3 2026 Guidance: Revenue expected between $24 million and $26 million; adjusted EBITDA expected to range from a loss of $1 million to positive $500,000. Full Year 2026 Outlook: Revenue expected to range between $100 million and $110 million. Warning! GuruFocus has detected 3 Warning Sign with TYGO. Is TYGO fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Tigo Energy Inc (NASDAQ:TYGO) achieved 5.6% year-over-year revenue growth to $25.4 million despite challenging market conditions, with strong growth in Germany (6%), Italy (20%), Spain, and Australia. The company is well-positioned to benefit from recent US FCC restrictions on foreign-produced power inverters and EU restrictions on high-risk vendors, given its US manufacturing strategy and strong presence in trusted markets like Czech Republic and Poland. Tigo Energy Inc (NASDAQ:TYGO) demonstrated disciplined expense management, with operating expenses down 4.8% year-over-year and 11.6% sequentially, and improved cash position to $16.9 million, up $5.3 million sequentially. The company's inventory decreased by 34.3% from year-end 2025 to $20.6 million, reflecting strong working capital discipline and improved operational efficiency. Tigo Energy Inc (NASDAQ:TYGO) is confident in the Q4 launch of its Section 45X and ITC-qualified optimized inverter solution, with the CEO expressing near-100% confidence in the ramp, which could drive significant growth in the coming quarters. Tigo Energy Inc (NASDAQ:TYGO) reported Q2 revenue below expectations, primarily due to external timing factors and current market conditions, leading to a downward revision of full-year 2026 revenue guidance to $100-$110 million from $130-$135 million. The US optimized inverter partner (EG4) experienced operational delays, pushing the market introduction of the Section 45X and ITC-qualified solution to Q4, delaying near-term revenue contribution. The company's GO ESS battery ramp progressed more slowly than planned, contributing only $2.2 million (8.6% of revenue) in Q2, and gross margins were negatively impacted by the sale of older EI batteries. Residential solar markets in the US, Italy, and Czech Republic contracted significantly, with US residential volumes down 21% and Italy and Czech installations declining double digits, pressuring overall demand. The company's adjusted EBITDA was only $52,000 in Q2, down from $1.1 million in the prior year, and Q3 guidance implies a potential adjusted EBITDA loss of up to $1 million, reflecting ongoing profitability challenges. Q: Can you explain the reasons behind the EG4 optimized inverter launch delays and what gives you confidence in the Q4 ramp?A: Zvi Alon, CEO, stated that Tigo has already shipped its products to EG4, and the delay is due to EG4's internal operational issues, not a change in plan. He expressed high confidence, close to 100%, that volume shipments will begin ramping in Q4, noting that EG4 has already paid for the products, providing them with an incentive to move forward. Q: What drove the reduction in full-year 2026 guidance, and when do you expect an acceleration in growth?A: Zvi Alon, CEO, attributed the guidance cut to the EG4 launch delay, a slower ramp of the new GO battery, and a more gradual European market recovery. He noted the company is managing operations and cash discipline well, and while he sees signs of normalcy, he expects potential acceleration to begin in Q1 of 2027. Q: How will the FCC's decision to restrict foreign-produced power inverters impact Tigo, and what is the company's exposure?A: Zvi Alon, CEO, explained that Tigo is well-positioned to benefit from the FCC action. The company has already begun moving manufacturing to the US and shipping from there, reducing exposure. Additionally, Tigo controls the communication aspects of its inverters, which could open opportunities to expand its communication solutions to other inverter manufacturers. Q: What is the status of the utility-scale pipeline deals mentioned on the previous call, and why haven't they closed?A: Zvi Alon, CEO, said the projects have not crossed the finish line but remain valid. Delays are due to external factors, including one project overseas facing timing issues related to winter start-up and another undergoing internal operational changes. He believes they are back on track but is cautious about predicting timing. Q: Is the EG4 delay related to demand issues, and how is the broader market impacting the company?A: Zvi Alon, CEO, acknowledged a general market slowdown, particularly in residential solar, but noted a shift toward C&I and utility-scale projects, which are less impacted. He highlighted growth in Germany, Italy, Spain, and Australia, and expressed optimism about increasing storage adoption, which could benefit Tigo's MLP and storage products. Q: What are the key assumptions behind the Q3 and full-year guidance, and what would drive results to the low or high end?A: Zvi Alon, CEO, confirmed that the guidance is conservative, with the low end assuming limited impact from EG4 in Q4. The high end would be driven by a stronger-than-expected EG4 ramp and potential contributions from larger projects. He emphasized the company is being careful not to overextend financially. Q: How should we think about gross margins in Q3 and Q4 given the softer demand environment?A: Bill Roeschlein, CFO, indicated that gross margins are likely to remain flat at around the 40% target level, consistent with Q2's performance, as the company manages through the weaker period. Q: What is the outlook for the US market, and do you see any catalysts to support demand?A: Zvi Alon, CEO, noted a slowdown in US solar installations but an increase in storage adoption. He believes storage will continue to grow as consumers recognize its benefits, but the overall US market remains a challenge. The company is monitoring the situation closely. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Delivered 5.6% year-over-year revenue growth despite significant residential solar contraction in key markets like the U.S., Italy, and the Czech Republic. Attributed the Q2 revenue miss primarily to external timing factors and a slower-than-anticipated recovery in the European market. Leveraged a diversified geographic footprint to offset regional weakness, achieving growth in Germany, Italy, Spain, and Australia. Strategic relationship with U.S. manufacturing partners strengthened by recent FCC decisions restricting foreign-produced inverters, positioning Tigo to meet domestic demand. Operational delays at a U.S. optimized inverter partner shifted the market introduction of Section 45X and ITC-qualified solutions from Q2 to Q4. Maintained disciplined expense management and working capital control, resulting in a sequential cash increase of $5.3 million. Observed a market shift toward storage solutions, with GO ESS contributing 8.6% of quarterly revenue despite a slower battery ramp. Revised full-year 2026 revenue guidance to $100 million–$110 million, reflecting the U.S. partner launch delay and gradual European recovery. Anticipates a volume ramp for domestically produced optimized inverter solutions beginning in Q4 2026, supported by FCC and EU regulatory tailwinds. Expects German demand to accelerate in the second half of 2026 as customers seek to lock in existing feed-in tariffs before 2027 changes. Assumes a return to 'normalcy' and growth acceleration potentially starting in Q1 2027, though management remains cautious on specific timing. Targets a long-term gross margin of approximately 40% as the product mix stabilizes and older inventory is cleared. Inventory levels decreased by 34.3% since year-end 2025, reflecting a concerted effort to improve working capital efficiency. Gross margin compression to 39.3% was largely driven by the sale of remaining older EI battery stock. Large utility-scale projects remain in the pipeline but face timing challenges due to seasonal weather factors and internal customer operational changes. Management noted that while the U.S. residential market remains a drag, the adoption of storage solutions provides a potential offset. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified the delay is due to internal operational timing issues at the partner, not a change in strategic plan or lack of demand. Expressed nearly 100% confidence in a Q4 ramp, noting the partner has already paid for the product, providing a strong financial incentive to launch. Confirmed that Tigo has already shipped the necessary products to the partner's possession. Management stated the FCC actions present an opportunity rather than a challenge because Tigo has already transitioned manufacturing to the U.S. Tigo maintains control over the communication and control aspects of their inverters, which helps mitigate risks associated with high-risk vendor bans. Confirmed that previously discussed utility-scale deals have not been lost but are experiencing delays related to winter weather and customer internal changes. Management is adopting a more conservative stance on including these projects in near-term guidance until timing is more certain.

LOS GATOS, Calif., August 04, 2026--(BUSINESS WIRE)--Tigo Energy, Inc. ("Tigo" or the "Company") (NASDAQ: TYGO), a leading provider of intelligent solar and energy solutions, today reported unaudited financial results for the second quarter and six months ended June 30, 2026, financial guidance for the third quarter ending September 30, 2026, and full year 2026 outlook. Recent Financial and Operational Highlights Revenue for the second quarter of 2026 was $25.4 million, up 5.6% compared with the second quarter of 2025. GAAP net income was $2.2 million, which included a $3.2 million discrete income-tax benefit, compared with a GAAP net loss of $4.4 million in the second quarter of 2025. Adjusted EBITDA was $52 thousand, compared with adjusted EBITDA of $1.1 million in the second quarter of 2025. Reduced inventory to $20.6 million from $31.3 million at year-end 2025 and ended the quarter with $16.9 million in cash and cash equivalents. During the second quarter of 2026, we shipped 702 thousand units, or 527 MW, of Module Level Power Electronics ("MLPE"). Management Commentary "Second-quarter revenue grew 5.6% year over year to $25.4 million but came in below our guidance. While results were below our expectations, the variance was largely driven by external timing factors and current market conditions," said Zvi Alon, Chairman and CEO of Tigo. "U.S. sales remained soft following the expiration of the residential clean-energy tax credit, and our U.S. optimized inverter partner encountered operational delays that will shift the go-to-market launch for our Section 45X and ITC qualified optimized inverter solution, with volume shipments now expected to begin ramping in the fourth quarter. While this timing shift will delay the near-term contribution, the FCC’s recent decision to restrict future authorizations of foreign-produced power inverters only strengthens the longer-term strategic rationale for our U.S. manufacturing strategy and positions us to benefit from future demand for domestically produced solar products. In Europe, the market recovery also continued at a more measured pace than anticipated. We remain focused on advancing our product initiatives and expanding partner relationships to capitalize on our broad international opportunities and drive more consistent growth." "Encouragingly, Germany and Italy grew 6.4% and 20.0% year over year, respectively, despite weakness in both residential markets. We also delivered year-over-year growth in Spain and Australia, demonstrating the benefits of our diversified geographic footprint. EMEA represented 73.1% of second-quarter revenue, with Germany representing our largest market at 22.8% of revenue. APAC represented 10.1% of revenue, led by continued strength in Australia, while the Americas and LATAM represented a combined 16.8%. GO ESS contributed $2.2 million, or 8.6% of quarterly revenue, in the early stage of the GO Battery ramp." "We maintained tight expense discipline in the second quarter, reducing operating expenses 4.8% year over year and 11.6% sequentially, and we strengthened our balance sheet—reducing inventory by more than $10 million and ending the quarter with $16.9 million in cash and $4.1 million in borrowings," stated Bill Roeschlein, CFO of Tigo. "Second-quarter GAAP net income benefited from a discrete income-tax benefit and gross margin and adjusted EBITDA reflected a softer revenue mix. On a first-half basis, our operating loss narrowed year over year, and we remain focused on disciplined execution and a clear path to sustainable profitability." Second Quarter 2026 Financial Results Results compare the 2026 fiscal second quarter ended June 30, 2026 with the 2025 fiscal second quarter ended June 30, 2025, unless otherwise indicated. Revenue totaled $25.4 million, compared with $24.1 million. Gross profit totaled $10.0 million, or 39.3% of net revenue, compared with gross profit of $10.8 million, or 44.7% of net revenue. Operating expenses totaled $11.7 million, compared with $12.3 million. Loss from operations totaled $1.7 million, compared with a loss from operations of $1.5 million. GAAP net income totaled $2.2 million, including a $3.2 million discrete income-tax benefit, compared with a GAAP net loss of $4.4 million. Non-GAAP net income totaled $3.6 million, which includes the discrete income-tax benefit, compared with a non-GAAP net loss of $2.1 million. Adjusted EBITDA totaled $52 thousand, compared with adjusted EBITDA of $1.1 million. Third Quarter 2026 Financial Guidance and Full Year 2026 Outlook The Company provides guidance for the third quarter ending September 30, 2026 as follows: Revenue is expected to be within the range of $24 million to $26 million. Adjusted EBITDA (loss) is expected to be within the range of $(1) million to $0.5 million. For the full year 2026, the Company is updating its revenue outlook to a range of $100 million to $110 million. "The revision to our full-year 2026 outlook reflects our U.S. optimized inverter partner’s shift of its go-to-market launch to the fourth quarter, the slower ramp of our new GO Battery, and a more gradual recovery in Europe," added Bill Roeschlein. "The fourth-quarter launch of our locally produced optimized inverter solution, together with anticipated demand created by the FCC decision in the US and European Union actions in EMEA, positions us for a stronger end to 2026." Actual results may differ materially from the Company’s guidance as a result of, among other things, the factors described below under "Forward-Looking Statements." Conference Call Tigo management will hold a conference call on Tuesday, August 4, 2026, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss these results. Company CEO Zvi Alon and CFO Bill Roeschlein will host the call, followed by a question-and-answer period. Registration Link Conference Call: Click here to register Webcast Link: Click here to join Please register online at least 10 minutes prior to the start time. If you have any difficulty with registration or connecting to the conference call, please contact Gateway Group at (949) 574-3860. The conference call will also be available for replay via the Investor Relations section of Tigo’s website. About Tigo Energy, Inc. Founded in 2007, Tigo is a worldwide leader in the development and manufacture of smart hardware and software solutions that enhance safety, increase energy yield, and lower operating costs of residential, commercial, and utility-scale solar systems. Tigo combines its Flex MLPE (Module Level Power Electronics) and solar optimizer technology with intelligent, cloud-based software capabilities for advanced energy monitoring and control. Tigo MLPE products maximize performance, enable real-time energy monitoring, and provide code-required rapid shutdown at the module level. The Company also develops and manufactures products such as inverters and battery storage systems for the residential solar-plus-storage market. For more information, please visit www.tigoenergy.com. Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about our ability to increase our revenues and achieve and maintain profitability, our overall long-term growth prospects, expectations regarding a continued recovery in our industry, statements about our revenue and adjusted EBITDA for the third fiscal quarter of 2026 and our revenue for the full fiscal year 2026, statements about demand for our products, our competitive position, the impact of tariffs and U.S. restrictions of foreign-produced power inverters, 45x or ITC benefits, and our ability to penetrate new markets and expand our market share, including expansion in international markets, statements about the anticipated benefits of our manufacturing and marketing partnership with our U.S. optimized inverter partner and our ability to realize such benefits, our continued expansion of and investments in our product portfolio and the timing thereof, our U.S. manufacturing strategy, the anticipated impact of regulatory actions, including actions by the FCC and the European Union, on demand for our products, and future financial and operating results, our plans, objectives, expectations and intentions with respect to future operations, products and services; and other statements identified by words such as "will likely result," "are expected to," "will continue," "will allow us to," "is anticipated," "estimated," "expected," "believe," "intend," "plan," "projection," "outlook" or words of similar meaning. These forward-looking statements are based upon the current beliefs and expectations of Tigo’s management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond our control. Actual results and the timing of events may differ materially from the results anticipated in these forward-looking statements. In addition to factors previously disclosed, or that will be disclosed in, our reports filed with the SEC, factors which may cause actual results to differ materially from current expectations include, but are not limited to, our ability to effectively develop and sell our product offerings and services, our ability to compete in the highly-competitive and evolving solar industry; our ability to meet the continued listing requirements of Nasdaq, and the liquidity and trading of our securities; our ability to manage risks associated with U.S. and global geopolitical and macroeconomic conditions including the potential softening of the economy, seasonal trends and the cyclical nature of the solar industry; whether we continue to grow our customer base and expand our market share; whether we continue to develop new products and innovations to meet constantly evolving customer demands; the timing and level of demand for our solar energy solutions; changes in and the availability of government subsidies and economic incentives, including tax incentives, for solar energy solutions; trade tariffs and other trade barriers that could directly affect us, our customers and the solar industry; our ability to forecast our customer demand and manufacturing requirements, and manage our inventory; our ability to acquire or make investments in other businesses, patents, technologies, products or services to grow the business and realize the anticipated benefits therefrom; our ability to respond to fluctuations in foreign currency exchange rates and political unrest and regulatory changes in the U.S. and international markets into which we expand or otherwise operate in; macroeconomic conditions in the markets in which we operate, as well as inflation, instability of financial institutions, rising interest rates and recessionary concerns; our failure to attract, hire retain and train highly qualified personnel in the future; and our ability to maintain key strategic relationships with our partners and distributors. Actual results, performance or achievements may differ materially, and potentially adversely, from any projections and forward-looking statements and the assumptions on which those forward-looking statements are based. There can be no assurance that the forward-looking statements contained herein are reflective of future performance to any degree. You are cautioned not to place undue reliance on forward-looking statements as a predictor of future performance as projected financial information and other information are based on estimates and assumptions that are inherently subject to various significant risks, uncertainties and other factors, many of which are beyond our control. All information set forth herein speaks only as of the date hereof, and while we may elect to update such forward-looking statements in the future, we disclaim any intention or obligation to update any forward-looking statements as a result of new information, future developments or otherwise occurring after the date of this communication, except as required by applicable securities laws. Non-GAAP Financial Measures To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: non-GAAP net income (loss) and adjusted EBITDA. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. We use adjusted EBITDA and non-GAAP net income (loss) for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We define adjusted EBITDA, a non-GAAP financial measure, as earnings (loss) before interest and other expenses, net, income tax expense (benefit), depreciation and amortization, as adjusted to exclude stock-based compensation and merger transaction-related expenses. We define non-GAAP net income (loss) as GAAP net income (loss) excluding stock-based compensation. We believe that adjusted EBITDA and non-GAAP net income (loss) provide helpful supplemental information regarding our performance by excluding certain items that may not be indicative of our core business operating results. We believe that both management and investors benefit from referring to adjusted EBITDA and non-GAAP net income (loss) in assessing our performance and when planning, forecasting and analyzing future periods. Adjusted EBITDA and non-GAAP net income (loss) also facilitate management’s internal comparisons to our historical performance and comparisons to our competitors’ operating results. We believe adjusted EBITDA and non-GAAP net income (loss) are useful to investors because they (i) allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (ii) are used by our institutional investors and the analyst community to help them analyze the health of our business. The items excluded from adjusted EBITDA and non-GAAP net income (loss) may have a material impact on our financial results. Certain of those items are non-recurring, while others are non-cash in nature. Accordingly, adjusted EBITDA and non-GAAP net income (loss) are presented as supplemental disclosure and should not be considered in isolation from, as a substitute for, or superior to, the financial information prepared in accordance with GAAP. There are a number of limitations related to the use of non-GAAP financial measures. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures and evaluating these non-GAAP financial measures together with their relevant financial measures in accordance with GAAP. We refer investors to the reconciliations of adjusted EBITDA and non-GAAP net income (loss) to net income (loss) included below. A reconciliation for adjusted EBITDA provided as guidance is not provided because, as a forward-looking statement, such reconciliation is not available without unreasonable effort due to the high variability, complexity and difficulty of estimating certain items, such as stock-based compensation expense and currency fluctuations, which could have an impact on our consolidated results. We encourage investors and others to review our financial information in its entirety and not to rely on any single financial measure. View source version on businesswire.com: https://www.businesswire.com/news/home/20260804381344/en/ Contacts Investor Relations Contacts Ralf EsperGateway Group, Inc.(949) [email protected]

Despite announcing strong earnings, Tigo Energy, Inc.'s (NASDAQ:TYGO) stock was sluggish. We did some digging and found some worrying underlying problems. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. As finance nerds would already know, the accrual ratio from cashflow is a key measure for assessing how well a company's free cash flow (FCF) matches its profit. In plain english, this ratio subtracts FCF from net profit, and divides that number by the company's average operating assets over that period. The ratio shows us how much a company's profit exceeds its FCF. As a result, a negative accrual ratio is a positive for the company, and a positive accrual ratio is a negative. While having an accrual ratio above zero is of little concern, we do think it's worth noting when a company has a relatively high accrual ratio. To quote a 2014 paper by Lewellen and Resutek, "firms with higher accruals tend to be less profitable in the future". For the year to March 2026, Tigo Energy had an accrual ratio of -0.43. Therefore, its statutory earnings were very significantly less than its free cashflow. In fact, it had free cash flow of US$15m in the last year, which was a lot more than its statutory profit of US$3.37m. Notably, Tigo Energy had negative free cash flow last year, so the US$15m it produced this year was a welcome improvement. Having said that, there is more to consider. We can look at how unusual items in the profit and loss statement impacted its accrual ratio, as well as explore how dilution is impacting shareholders negatively. View our latest analysis for Tigo Energy That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. One essential aspect of assessing earnings quality is to look at how much a company is diluting shareholders. As it happens, Tigo Energy issued 22% more new shares over the last year. As a result, its net income is now split between a greater number of shares. To talk about net income, without noticing earnings per share, is to be distracted by the big numbers while ignoring the smaller numbers that talk to per share value. You can see a chart of Tigo Energy's EPS by clicking here. Three years ago, Tigo Energy lost money. Zooming in to the last year, we still can't talk about growth rates coherently, since it made a loss last year. But mathematics aside, it is always good to see when a formerly unprofitable business come good (though we accept profit would have been higher if dilution had not been required). And so, you can see quite clearly that dilution is influencing shareholder earnings. In the long term, if Tigo Energy's earnings per share can increase, then the share price should too. But on the other hand, we'd be far less excited to learn profit (but not EPS) was improving. For that reason, you could say that EPS is more important that net income in the long run, assuming the goal is to assess whether a company's share price might grow. Surprisingly, given Tigo Energy's accrual ratio implied strong cash conversion, its paper profit was actually boosted by US$14m in unusual items. While we like to see profit increases, we tend to be a little more cautious when unusual items have made a big contribution. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And, after all, that's exactly what the accounting terminology implies. Tigo Energy had a rather significant contribution from unusual items relative to its profit to March 2026. As a result, we can surmise that the unusual items are making its statutory profit significantly stronger than it would otherwise be. Summing up, Tigo Energy's accrual ratio suggests that its statutory earnings are well matched by cash flow while its unusual items boosted the profit in a way that might not be repeated. Further, the dilution means profits are now split more ways. After taking into account all the aforementioned observations we think that Tigo Energy's profits probably give a generous impression of its sustainable level of profitability. In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. You'd be interested to know, that we found 3 warning signs for Tigo Energy and you'll want to know about these bad boys. Our examination of Tigo Energy has focussed on certain factors that can make its earnings look better than they are. And, on that basis, we are somewhat skeptical. But there are plenty of other ways to inform your opinion of a company. Some people consider a high return on equity to be a good sign of a quality business. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

It's been a sad week for Tigo Energy, Inc. (NASDAQ:TYGO), who've watched their investment drop 14% to US$4.35 in the week since the company reported its quarterly result. Revenues of US$25m came in a modest 2.2% below forecasts. Statutory losses were a relative bright spot though, with a per-share loss of US$0.02 coming in a substantial 27% smaller than what the analysts had expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Following the latest results, Tigo Energy's four analysts are now forecasting revenues of US$131.9m in 2026. This would be a huge 20% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to reduce 10.0% to US$0.04 in the same period. Before this latest report, the consensus had been expecting revenues of US$132.7m and US$0.12 per share in losses. Although we saw no serious change to the revenue outlook, the analysts have definitely increased their earnings estimates, estimating a profit next year, compared to previous forecasts of a loss. So it seems like the consensus has become substantially more bullish on Tigo Energy. Check out our latest analysis for Tigo Energy The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 12% to US$6.85. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Tigo Energy, with the most bullish analyst valuing it at US$8.00 and the most bearish at US$6.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects. Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One thing stands out from these estimates, which is that Tigo Energy is forecast to grow faster in the future than it has in the past, with revenues expected to display 28% annualised growth until the end of 2026. If achieved, this would be a much better result than the 22% annual decline over the past three years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 13% annually. Not only are Tigo Energy's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry. The most important thing to take away is that the analysts now expect Tigo Energy to become profitable next year, compared to previous expectations that it would report a loss. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving. With that in mind, we wouldn't be too quick to come to a conclusion on Tigo Energy. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Tigo Energy analysts - going out to 2028, and you can see them free on our platform here. You should always think about risks though. Case in point, we've spotted 3 warning signs for Tigo Energy you should be aware of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Tigo Energy, Inc. (TYGO) reported break-even quarterly earnings per share versus the Zacks Consensus Estimate of a loss of $0.02. This compares to a loss of $0.11 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +100.00%. A quarter ago, it was expected that this company would post a loss of $0.04 per share when it actually produced a loss of $0.03, delivering a surprise of +25%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Tigo Energy, Inc., which belongs to the Zacks Solar industry, posted revenues of $25.2 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 1.98%. This compares to year-ago revenues of $18.84 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Tigo Energy, Inc. shares have added about 237.7% since the beginning of the year versus the S&P 500's gain of 5.2%. While Tigo Energy, Inc. has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Tigo Energy, Inc. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is breakeven on $31.21 million in revenues for the coming quarter and $0.04 on $132.53 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Solar is currently in the bottom 22% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, SolarEdge Technologies (SEDG), is yet to report results for the quarter ended March 2026. The results are expected to be released on May 6. This photovoltaic products maker is expected to post quarterly loss of $0.23 per share in its upcoming report, which represents a year-over-year change of +79.8%. The consensus EPS estimate for the quarter has been revised 4.3% higher over the last 30 days to the current level. SolarEdge Technologies' revenues are expected to be $303.42 million, up 38.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tigo Energy, Inc. (TYGO) : Free Stock Analysis Report SolarEdge Technologies, Inc. (SEDG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

LOS GATOS, Calif., May 05, 2026--(BUSINESS WIRE)--Tigo Energy, Inc. (NASDAQ: TYGO) ("Tigo", or the "Company"), a leading provider of intelligent solar and energy solutions, today reported unaudited financial results for the first quarter ended March 31, 2026, financial guidance for the second quarter ending June 30, 2026, and full year 2026 outlook. Recent Financial and Operational Highlights Revenue for the first quarter of 2026 of $25.2 million, up 33.7% compared to the first quarter of 2025. GAAP Net loss for the first quarter of 2026 of $1.8 million, compared to a net loss of $7.0 million in the first quarter of 2025. Adjusted EBITDA loss for the first quarter of 2026 of $0.5 million compared to an adjusted EBITDA loss of $2.0 million in the first quarter of 2025. During the first quarter of 2026, we shipped 615 thousand units, or 468 MW, of Module Level Power Electronics ("MLPE"). Introduced the GO battery for the European market featuring scalability up to 47.9 KwH and integrated heating for cold weather operation. Management Commentary "Despite the typical weather-related seasonality in our end markets, we delivered a strong start to the year, with first quarter revenue increasing 33.7% year-over-year," said Zvi Alon, Chairman and CEO of Tigo. "Importantly, the continued predictability of our business reinforces our confidence in sustained growth through the remainder of the year, and we expect to maintain our competitive outperformance." "In the first quarter, we saw seasonally stronger performance on a year over year basis from several countries in the EMEA region, comprising 69.5% of our revenue. Within the Americas region, which comprised 20.9% of our revenue, we saw higher performance on a year over year basis, but lower results sequentially as buyers accelerated purchases late last year ahead of the expiration of residential clean energy tax credits." "By closing a registered direct offering with gross proceeds of approximately $15.0 million during the quarter, we have further strengthened our balance sheet with zero debt after retiring the $50.0 million convertible note in December of last year," stated Bill Roeschlein, Chief Financial Officer of Tigo. "Consistent with our growth trajectory, we continue to expect accelerated, profitable growth on an adjusted EBITDA and non-GAAP net income basis in Q2 of 2026 and into the second of half of the year." First Quarter 2026 Financial Results Results compare the 2026 fiscal first quarter ended March 31, 2026 to the 2025 fiscal first quarter ended March 31, 2025, unless otherwise indicated. Revenues totaled $25.2 million, compared to $18.8 million. Gross profit totaled $10.8 million, or 42.8% of net revenue, compared to gross profit of $7.2 million, or 38.1% of net revenue. Operating expenses totaled $13.2 million, compared to $11.2 million. GAAP Net loss totaled $1.8 million, compared to a net loss of $7.0 million. Non-GAAP Net loss totaled $0.1 million, compared to a non-GAAP Net loss of $5.4 million. Adjusted EBITDA loss totaled $0.5 million, compared to an adjusted EBITDA loss of $2.0 million. Second Quarter 2026 Financial Guidance and Confirms Full Year 2026 Outlook The Company provides guidance for the second quarter ending June 30, 2026 as follows: Revenues are expected to be within the range of $30.0 million to $32.0 million. Adjusted EBITDA is expected to be within the range of $1.0 million to $3.0 million. For the full year 2026, the Company continues to anticipate revenues to be between $130.0 million and $135.0 million. Actual results may differ materially from the Company’s guidance as a result of, among other things, the factors described below under "Forward-Looking Statements". Conference Call Tigo management will hold a conference call today, May 5, 2026, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss these results. Company CEO Zvi Alon and CFO Bill Roeschlein will host the call, followed by a question-and-answer period. Registration Link Conference Call: Click here to register Webcast Link: Click here to join Please register online at least 10 minutes prior to the start time. If you have any difficulty with registration or connecting to the conference call, please contact Gateway Group at (949) 574-3860. The conference call will also be available for replay here and via the Investor Relations section of Tigo’s website. Upcoming Investor Conference Attendance LD Micro Invitational XVI Date: May 18-19, 2026 Location: Luxe Sunset Blvd Hotel Los Angeles, CA BofA Securities 2026 Power, Utilities and Cleantech Conference Date: May 27-28, 2026 Location: Bank of America at Two Bryant Park New York, NY 23rd Annual Craig-Hallum Institutional Investor Conference Date: May 28, 2026 Location: Depot Renaissance Hotel Minneapolis, MN About Tigo Energy, Inc. Founded in 2007, Tigo is a worldwide leader in the development and manufacture of smart hardware and software solutions that enhance safety, increase energy yield, and lower operating costs of residential, commercial, and utility-scale solar systems. Tigo combines its Flex MLPE (Module Level Power Electronics) and solar optimizer technology with intelligent, cloud-based software capabilities for advanced energy monitoring and control. Tigo MLPE products maximize performance, enable real-time energy monitoring, and provide code-required rapid shutdown at the module level. The Company also develops and manufactures products such as inverters and battery storage systems for the residential solar-plus-storage market. For more information, please visit www.tigoenergy.com. Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about our ability to increase our revenues and achieve and maintain profitability, our ability to achieve accelerated, profitable growth in the second fiscal quarter of 2026 and in the full fiscal year 2026, our overall long-term growth prospects, expectations regarding a continued recovery in our industry, statements about our revenue and adjusted EBITDA for the second fiscal quarter of 2026 and our revenue for the full fiscal year 2026, statements about demand for our products, our competitive position, the impact of tariffs, and our ability to penetrate new markets and expand our market share, including expansion in international markets, our continued expansion of and investments in our product portfolio, and future financial and operating results, our plans, objectives, expectations and intentions with respect to future operations, products and services; and other statements identified by words such as "will likely result," "are expected to," "will continue," "will allow us to" "is anticipated," "estimated," "expected", "believe," "intend," "plan," "projection," "outlook" or words of similar meaning. These forward-looking statements are based upon the current beliefs and expectations of Tigo’s management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond our control. Actual results and the timing of events may differ materially from the results anticipated in these forward-looking statements. In addition to factors previously disclosed, or that will be disclosed in, our reports filed with the SEC, factors which may cause actual results to differ materially from current expectations include, but are not limited to, our ability to effectively develop and sell our product offerings and services, our ability to compete in the highly-competitive and evolving solar industry; our ability to meet the continued listing requirements of Nasdaq, and the liquidity and trading of our securities; our ability to manage risks associated with U.S. and global geopolitical and macroeconomic conditions including the potential softening of the economy, seasonal trends and the cyclical nature of the solar industry, including any periods of prolonged downturn; whether we continue to grow our customer base and expand our market share; whether we continue to develop new products and innovations to meet constantly evolving customer demands; the timing and level of demand for our solar energy solutions; changes in and the availability of government subsidies and economic incentives, including tax incentives, for solar energy solutions; trade tariffs and other trade barriers that could directly affect us, our customers and the solar industry; our ability to forecast our customer demand and manufacturing requirements, and manage our inventory; our ability to acquire or make investments in other businesses, patents, technologies, products or services to grow the business and realize the anticipated benefits therefrom; our ability to respond to fluctuations in foreign currency exchange rates and political unrest and regulatory changes in the U.S. and international markets into which we expand or otherwise operate in; macroeconomic conditions in the markets in which we operate, as well as inflation, instability of financial institutions, rising interest rates and recessionary concerns; our failure to attract, hire retain and train highly qualified personnel in the future; and our ability to maintain key strategic relationships with our partners and distributors. Actual results, performance or achievements may differ materially, and potentially adversely, from any projections and forward-looking statements and the assumptions on which those forward-looking statements are based. There can be no assurance that the forward-looking statements contained herein are reflective of future performance to any degree. You are cautioned not to place undue reliance on forward-looking statements as a predictor of future performance as projected financial information and other information are based on estimates and assumptions that are inherently subject to various significant risks, uncertainties and other factors, many of which are beyond our control. All information set forth herein speaks only as of the date hereof, and we disclaim any intention or obligation to update any forward-looking statements as a result of new information, future developments or otherwise occurring after the date of this communication. Non-GAAP Financial Measures To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: Non-GAAP Net Loss and adjusted EBITDA. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. We use adjusted EBITDA and non-GAAP net loss for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We define adjusted EBITDA, a non-GAAP financial measure, as earnings (loss) before interest and other expenses, net, income tax expense (benefit), depreciation and amortization, as adjusted to exclude stock-based compensation and merger transaction related expenses. We define non-GAAP net loss as GAAP net income (loss) excluding stock-based compensation. We believe that adjusted EBITDA and non-GAAP net loss provide helpful supplemental information regarding our performance by excluding certain items that may not be indicative of our core business operating results. We believe that both management and investors benefit from referring to adjusted EBITDA and non-GAAP net loss in assessing our performance and when planning, forecasting, and analyzing future periods. Adjusted EBITDA and non-GAAP net loss also facilitate management’s internal comparisons to our historical performance and comparisons to our competitors’ operating results. We believe adjusted EBITDA and non-GAAP net loss are useful to investors both because they (i) allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (ii) are used by our institutional investors and the analyst community to help them analyze the health of our business. The items excluded from adjusted EBITDA and non-GAAP net loss may have a material impact on our financial results. Certain of those items are non-recurring, while others are non-cash in nature. Accordingly, adjusted EBITDA and non-GAAP net loss are presented as supplemental disclosure and should not be considered in isolation of, as a substitute for, or superior to, the financial information prepared in accordance with GAAP. There are a number of limitations related to the use of non-GAAP financial measures. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures and evaluating these non-GAAP financial measures together with their relevant financial measures in accordance with GAAP. We refer investors to the reconciliation adjusted EBITDA to net loss and non-GAAP net loss to net loss included below. A reconciliation for adjusted EBITDA provided as guidance is not provided because, as a forward-looking statement, such reconciliation is not available without unreasonable effort due to the high variability, complexity, and difficulty of estimating certain items such as charges to stock-based compensation expense and currency fluctuations which could have an impact on our consolidated results. We encourage investors and others to review our financial information in its entirety and not to rely on any single financial measure. View source version on businesswire.com: https://www.businesswire.com/news/home/20260505768793/en/ Contacts Investor Relations Contacts Ralf Esper Gateway Group, Inc. (949) 574-3860 [email protected]