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FTC Solar, Inc. (FTCI)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 revenue was $13.2M, at the high end of guidance, with sequential growth of 30% and YoY decline of 43% due to lower product volumes; GAAP diluted EPS was a loss of $0.96 and Adjusted EPS was a loss of $0.80 .
  • Results vs Street: revenue beat S&P Global consensus ($11.6M*) and Adjusted EPS beat (-$0.84*), while EBITDA (S&P) was modestly below (-$11.9M* vs actual -$12.7M*); company-reported Adjusted EBITDA loss improved to -$9.8M (S&P Global estimates*).
  • Backlog and bookings momentum accelerated: contracted backlog ~$502M (+$67M POs, -$65M adjustments since Nov 12), plus new multi-year awards including a 5GW Recurrent Energy supply arrangement, 333MW GPG Naturgy (Australia) and 280MW Rosendin (U.S.) .
  • Liquidity improved: quarter-end cash $11.2M; received $3.2M earn-out post quarter; upsized promissory note to add $10–$15M; ~$65M ATM capacity remaining .
  • Near-term catalysts: Q1 2025 revenue guide $18–$20M (+~44% q/q at midpoint), domestic-content capability orders ramping (100% domestic content expected available in Q3’25), and management targeting quarterly Adjusted EBITDA breakeven in 2025 .

What Went Well and What Went Wrong

What Went Well

  • Record commercial traction: 5GW supply arrangement with Recurrent Energy across U.S./Europe/Australia, plus 333MW GPG (Australia) and 280MW Rosendin (U.S.) awards; management: “we have had a number of recent wins and are building momentum” .
  • Sequential improvement and cost discipline: revenue up 30% q/q to $13.2M; non-GAAP OpEx reduced to $7.4M (lowest since early 2021); Adjusted EBITDA loss improved to -$9.8M vs -$12.2M in Q3 .
  • 1P product adoption and installation efficiency: CEO reiterated Pioneer 1P enables 30–40% faster installs, safer workflows, and ~$0.03+/W installed-cost savings; “one of the most automation-friendly trackers” and SunPath software providing monetizable value .

What Went Wrong

  • Negative margins persisted at low scale: GAAP gross margin -29.1% and non-GAAP gross margin -25.6% as volumes remained insufficient to absorb fixed indirect costs .
  • YoY declines: revenue -43% YoY and non-GAAP gross profit swung to a loss vs prior-year profit driven by lower volumes .
  • Scale headwinds and project timing uncertainty: management noted exposure to timing of individual projects and back-half weighted profile; Q2 2025 trajectory uncertain (“could be up, could be flat”) before ramp in back half .

Financial Results

Sequential Trend (Q2 → Q3 → Q4 2024)

MetricQ2 2024Q3 2024Q4 2024
Revenue ($USD Millions)$11.430 $10.136 $13.202
GAAP Gross Margin %(20.5%) (42.5%) (29.1%)
Non-GAAP Gross Margin %(16.8%) (38.3%) (25.6%)
GAAP Operating Expenses ($USD Millions)$9.581 $10.670 $9.591
Non-GAAP Operating Expenses ($USD Millions)$8.278 $8.131 $7.391
GAAP Net Loss ($USD Millions)$(12.241) $(15.359) $(12.235)
Diluted Loss per Share$(0.10) $(0.12) $(0.96)
Adjusted EBITDA ($USD Millions)$(10.451) $(12.174) $(9.840)

YoY (Q4 2023 → Q4 2024)

MetricQ4 2023Q4 2024
Revenue ($USD Millions)$23.201 $13.202
GAAP Gross Margin %3.0% (29.1%)
Non-GAAP Gross Margin %4.8% (25.6%)
GAAP Operating Expenses ($USD Millions)$12.428 $9.591
Non-GAAP Operating Expenses ($USD Millions)$10.848 $7.391
GAAP Net Loss ($USD Millions)$(11.177) $(12.235)
Diluted Loss per Share (post-split)$(0.89) $(0.96)
Adjusted EBITDA ($USD Millions)$(10.050) $(9.840)

Segment Revenue Mix (Product vs Service)

MetricQ2 2024Q3 2024Q4 2024
Product Revenue ($USD Millions)$8.776 $7.411 $10.428
Service Revenue ($USD Millions)$2.654 $2.725 $2.774
Total Revenue ($USD Millions)$11.430 $10.136 $13.202

KPIs and Balance Sheet Snapshot

KPIQ2 2024Q3 2024Q4 2024
Contracted Backlog ($USD Millions)$505 $513 $502
Purchase Orders Added Since Prior Update ($USD Millions)—$18 (since Aug 8) $67 (since Nov 12)
Adjustments to Existing Projects ($USD Millions)——$(65)
Cash & Equivalents ($USD Millions)$10.779 $8.255 $11.247
Post-quarter Cash Earn-out ($USD Millions)—$4.7 $3.2
Promissory Note FinancingBinding term sheet $15M Closed $15M notes (Dec 4) Upsize term sheet +$10–$15M
ATM Program Remaining ($USD Millions)~$65 ~$65 ~$65

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($USD Millions)Q4 2024$10.0–$14.0 Actual: $13.2 Met/high end
Non-GAAP Gross Loss ($USD Millions)Q4 2024$(4.2)–$(1.5) Actual: $(3.4) Within
Non-GAAP Operating Expenses ($USD Millions)Q4 2024$8.2–$9.0 Actual: $7.4 Lower
Adjusted EBITDA ($USD Millions)Q4 2024$(13.7)–$(9.9) Actual: $(9.8) Better
Revenue ($USD Millions)Q1 2025—$18.0–$20.0 New
Non-GAAP Gross Loss ($USD Millions)Q1 2025—$(4.8)–$(2.3) New
Non-GAAP Gross Margin (%)Q1 2025—(26.6%)–(11.7%) New
Non-GAAP Operating Expenses ($USD Millions)Q1 2025—$7.7–$8.4 New
Adjusted EBITDA ($USD Millions)Q1 2025—$(13.3)–$(10.0) New
Management Target2025Adjusted EBITDA breakeven quarterly Maintained Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2024)Previous Mentions (Q3 2024)Current Period (Q4 2024)Trend
1P Product Adoption & ConstructabilityBroadest 1P/2P portfolio; breakeven at $50–$60M/qtr 1P bookings ~70%; features for high-wind, terrain; pipeline expanding 1P favored (85–90% of bids); 30–40% faster installs; ~$0.03+/W savings; automation-friendly Improving adoption
Backlog & Bookings MomentumContracted backlog $505M; delays (interconnection/financing) Backlog $513M; added $18M; $15M note; $4.7M earn-out Backlog $502M; +$67M POs, -$65M adj.; 5GW Recurrent, 333MW GPG, 280MW Rosendin Strengthening wins
Domestic Content & Supply ChainN/AN/ATaking orders for 100% domestic content; available Q3’25 Building capability
Regional DiversificationN/AU.S. Southwest/Texas; Northeast; high-wind SE opportunity U.S., Europe, Australia; Europe likely more numerous projects; larger U.S. projects Broadening
Margins & Scale PathProduct costs in line; long-term 20% margins possible at scale Breakeven revenue $50–$60M/qtr confirmed Long-term margin “in line with peers”; volume/logistics are headwinds; SunPath margin lever Path intact; volume key
Tariffs/Steel VolatilityAD/CVD modules – no direct impact seen —Limited exposure; back-to-back steel procurement; tariffs & commodities raise project costs broadly Managed exposure
Liquidity ActionsNo debt; manage deposits; ATM ~$65M Binding $15M note; $4.7M earn-out Cash $11.2M; $3.2M earn-out; upsizing note +$10–$15M; ATM ~$65M Strengthened

Management Commentary

  • CEO: “We have added multiples of our current annual revenue run rate to our backlog… signing agreements totaling more than 6.5GW with Tier 1 accounts… added more than $30M in additional liquidity” .
  • CEO: “We believe our revenue bottomed in Q3. We saw growth in Q4 and expect growth in Q1… ramp revenue, achieve adjusted EBITDA breakeven, and become a strong and significant competitor” .
  • CFO: “Non-GAAP operating expenses were $7.4M, down from $10.8M in the same quarter last year… lowest level since early 2021” .
  • CEO on product edge: “Pioneer is one of the most automation-friendly trackers… both for installation and O&M… SunPath backtracking software… a huge opportunity… to monetize as we show tangible returns” .
  • CEO on domestic content: “Already taking orders for 100% domestic content, expected to have available in Q3 of this year” .

Q&A Highlights

  • Revenue cadence: back-half weighted year; Q1 step-up ~45% sequential; Q2 could be flat or up depending on project timing; EBITDA breakeven targeted in back half .
  • Recurrent Energy framework: predominantly 1P with geography-driven 2P use; U.S. and Europe likely first; Europe more numerous, U.S. larger projects .
  • Installation efficiency: Pioneer maintains 30–40% faster mechanical installation vs peers; lower-cost labor feasible for certain steps; ~$0.03+/W benefit .
  • Margin entitlement: longer term “in line with peers”, with logistics/volume as current headwinds; software (SunPath) a margin lever .
  • Tariff/steel volatility: limited direct exposure due to back-to-back steel procurement; broader project cost impacts managed collaboratively .

Estimates Context

Metric (Q4 2024)S&P Global Consensus*Actual
Revenue ($USD)$11,610,320*$13,202,000
Primary EPS ($)-$0.838*-$0.80 (Adjusted EPS)
EBITDA ($USD)-$11,897,910*-$12,695,000*
  • Revenue and EPS both beat consensus; EBITDA (S&P definition) slightly missed, while company’s Adjusted EBITDA loss improved to -$9.8M (S&P Global estimates*).
  • Consensus breadth: 5 revenue estimates, 4 EPS estimates for Q4 2024 (S&P Global estimates*).
  • Implications: Near-term estimate revisions likely higher on revenue and adjusted EPS given Q1 guide ($18–$20M) and bookings momentum .

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Momentum turning: Q4 delivered high-end revenue and improved EBITDA loss; Q1 guide implies ~44% sequential growth, supporting a multi-quarter recovery trajectory .
  • Commercial step-change: 5GW Recurrent framework plus large U.S./Australia awards expand visibility and diversify geographic exposure .
  • 1P adoption accelerates: engineering features and install efficiency (30–40% faster; ~$0.03+/W savings) position Pioneer competitively; expect continued share gains .
  • Margin path hinges on scale: at ~$50–$60M quarterly breakeven, volume ramp and domestic-content capability can unlock margin normalization “in line with peers” .
  • Liquidity actions reduce risk: cash build, earn-out inflows, and note upsizing (+$10–$15M) bolster execution capacity; ATM remains a backstop .
  • Watch project timing: management flagged sensitivity to individual project shifts, with back-half weighting; traders should monitor award-to-revenue conversion and domestic-content milestones .
  • Software as optionality: SunPath backtracking and automation features offer a future monetization lever and pricing power as data demonstrates performance .

Appendix: Additional Q4 2024 Relevant Releases

  • Reverse stock split 1-for-10 effective Nov 29, 2024, ensuring Nasdaq compliance; Q4 EPS comparisons reflect post-split where noted .
  • Sitetracker acquired ATLAS software platform from FTC Solar (Dec 3, 2024), allowing FTC Solar to focus on core tracker offerings .
  • Closed $15M senior secured promissory notes (Dec 4, 2024); later entered binding term sheet to upsize notes by $10–$15M (expected close in Q2’25) .