Executive Summary

Q2 2025 revenue was $24.055M, up 27.7% sequentially and 89.4% YoY, with gross margin at 44.7% and positive adjusted EBITDA of $1.081M; diluted EPS was $(0.07) .
Revenue and EPS exceeded Wall Street consensus; revenue beat by ~$2.58M and EPS came in better than expected (−$0.07 vs −$0.0775)*. Management raised FY25 revenue outlook to $100–$105M and guided Q3 revenue to $29–$31M with adjusted EBITDA $2–$4M, implying GAAP operating profit at the high end .
Mix was heavily EMEA-driven (≈76% of revenue; $18.3M), with the U.S. stable (~17–19%); MLPE comprised ~86% of revenue, with GO ESS ~9% and Predict+/licensing ~5% .
Catalysts: Raised FY25 guidance and return to adjusted EBITDA profitability, backlog/bookings exceeding Q2 revenue, and commentary on addressing the $50M convertible due Jan-2026 via refinancing discussions .

Note: Values with asterisk (*) are retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well

“We are pleased to report a 27.7% sequential increase in quarterly revenues, our sixth in a row, which exceeded the high-end of our guidance,” said CEO Zvi Alon; backlog and bookings expected to ship in Q3 exceed Q2 revenue .
Gross margin expanded to 44.7% (Q2), helped by a 450 bps tailwind from sale of reserved GO ESS inventory; adjusted EBITDA returned to +$1.1M .
EMEA strength (≈76% of revenue) and stable U.S. mix minimized tariff exposure; management emphasized manufacturing/geographic diversification and competitive positioning of open-architecture MLPE .

What Went Wrong

GAAP net loss remained at $(4.430)M despite operational progress; interest expense of ~$2.868M weighed on GAAP profitability .
Continued reliance on MLPE while GO ESS contributed less (9.4% of revenue), with margin support partly from inventory sale, highlighting mixed ESS traction .
Balance sheet leverage and upcoming $50M convertible debt maturity (Jan-2026) create financing overhang; company is exploring refinancing/other transactions .

Financial Results

Consolidated Performance vs Prior Quarters

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($USD)	$17,274,000	$18,839,000	$24,055,000
Gross Profit ($USD)	$(12,563,000)	$7,173,000	$10,763,000
Gross Margin %	−72.7%	38.1%	44.7%
Operating Expenses ($USD)	$11,526,000	$11,150,000	$12,267,000
Operating Income (Loss) ($USD)	$(24,089,000)	$(3,977,000)	$(1,504,000)
Net Income (Loss) ($USD)	$(26,802,000)	$(7,001,000)	$(4,430,000)
Diluted EPS ($USD)	$(0.44)	$(0.11)	$(0.07)
Adjusted EBITDA ($USD)	$(22,060,000)	$(2,044,000)	$1,081,000

Non-GAAP definition: Adjusted EBITDA excludes interest/other, income tax, D&A, stock-based comp, and transaction expenses .

Segment and Product Mix (Q2 2025)

Category	Revenue ($USD)	% of Total
EMEA	$18,300,000	75.9%
Americas	$4,600,000	19.1%
APAC	$1,200,000	5.0%
MLPE	$20,600,000	85.7%
GO ESS	$2,300,000	9.4%
Predict+ & Licensing	$1,200,000	4.9%

KPIs and Balance Sheet Highlights

KPI	Q2 2025
Shipments (Units)	646,000
Shipments (MW)	477 MW
Cash, Cash Equivalents, and Marketable Securities	$28.0M
Cash ($)	$10,212,000
Marketable Securities, Short-term ($)	$17,804,000
Accounts Receivable, Net ($)	$10,395,000
Inventory ($)	$18,927,000
Convertible Debt (Gross)	$50,000,000 (matures Jan-2026)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	Q2 2025	$21M–$23M	Actual: $24.055M	Beat vs guided range
Adjusted EBITDA	Q2 2025	$(1.5)M to $0.5M	Actual: $1.081M	Beat (returned to positive)
Revenue	Q3 2025	N/A	$29M–$31M	New
Adjusted EBITDA	Q3 2025	N/A	$2M–$4M	New
GAAP Operating Profit	Q3 2025	N/A	At high end of EBITDA guidance	New
Full-year Revenue	FY 2025	$85M–$100M	$100M–$105M	Raised

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024)	Previous Mentions (Q1 2025)	Current Period (Q2 2025)	Trend
Supply chain & tariffs	Continued downturn; tariff risk flagged in outlook	Tariff headwinds expected; diversification to mitigate	Diversification expected to minimize tariff exposure; EMEA strength cited	Improving mitigation; EMEA-led recovery
Product performance (MLPE vs ESS)	Large GO ESS inventory charges drove negative margin	MLPE-led revenue growth; TS4-A 725W introduced	MLPE 85.7% of revenue; 450 bps margin uplift from GO ESS inventory sale	MLPE mix rising; ESS rationalization continues
Regional trends	Growth in Americas & EMEA	Mix: EMEA 61%, Americas 25%, APAC 14%	EMEA $18.3M (75.9%); Americas $4.6M (19.1%); APAC $1.2M (5%)	EMEA accelerating; U.S. stable at lower mix
Technology/AI & software	Predict+ meters grew to 101,000	TS4-A upgrade for higher wattage modules	Open-architecture MLPE positioning; Predict+ & licensing $1.2M	Ongoing product roadmap, software contribution stable
Financing & debt	LT debt $40.5M; cash $11.7M YE	ST debt $42.7M; cash/securities $20.3M	$50M convertible due Jan-2026; refinancing discussions ongoing	Active refinancing dialogue; improved ops support

Management Commentary

“We are pleased to report a 27.7% sequential increase in quarterly revenues, our sixth in a row… Looking ahead, the existing backlog and bookings that are expected to ship in the third quarter currently exceeds our revenue results for the second quarter” — Zvi Alon, CEO .
“We saw strong sequential growth in the EMEA region… We expect that our geographical and manufacturing diversification will continue to minimize our exposure to current tariff headwinds” — Zvi Alon, CEO .
“Gross margins benefited by 450 basis points from the sale of a reserved GO ESS inventory… We continue to evaluate refinance options on the [January 2026] $50 million convertible” — Bill Roeschlein, CFO .
“We expect revenues [Q3] $29M–$31M… adjusted EBITDA $2M–$4M… raising our 2025 financial outlook to $100M–$105M” — Bill Roeschlein, CFO .
“Our target model is 40% on the gross margin… that is where we have performed the last time we started getting into this revenue geography” — Bill Roeschlein, CFO .

Q&A Highlights

Margins: CFO guided to low-40% GM for balance of year; GO ESS inventory tailwind to largely deplete by year-end; target model ~40% GM .
Geography: Q2 split U.S. ~17% of revenue (last six months under 20%); EMEA 65–75% expected to continue; management sees ability to grow share in a shrinking U.S. market .
EBITDA trajectory: CFO expects FY25 to be positive EBITDA .
OpEx discipline: Cash OpEx relatively flat; stock comp may lift reported OpEx slightly; OpEx growth expected to be much less than 50% of revenue growth next year .
Market share drivers: EMEA gains across Germany, Czech Republic, Poland; open-architecture MLPE and installer education underpin penetration; fragmented markets favor Tigo .

Estimates Context

Q2 2025 vs Wall Street Consensus (S&P Global)

Metric	Actual	Consensus	Surprise
Revenue ($USD)	$24,055,000	$21,477,000*	Beat by ~$2,578,000*
Primary EPS ($USD)	$(0.07)	$(0.0775)*	Beat by $0.0075*

FY25 consensus revenue: $103.548M*; FY25 EBITDA consensus: $4.372M*; Target Price consensus: $4.625 (4 estimates)*.
Note: Values retrieved from S&P Global.

Implications: Estimate revisions likely trend upward for revenue and EBITDA given raised FY guide and Q2 beat; EPS revisions should reflect margin trajectory and lower interest burden if refinancing progresses .

Key Takeaways for Investors

The quarter delivered a clean top-line and margin beat; Q2 revenue and EPS exceeded consensus, and adjusted EBITDA turned positive, supporting the raised FY25 revenue outlook to $100–$105M .
EMEA strength and diversified manufacturing are mitigating tariff headwinds; expect continued EMEA-led growth with stable U.S. contribution and APAC as a smaller tail .
Mix is increasingly MLPE-driven with improving gross margins; GO ESS margins aided Q2 via inventory sale but that tailwind should fade into year-end — monitor sustainable margin drivers and MLPE ASPs .
Financing overhang remains: $50M convertible due Jan-2026; management is in active refinancing discussions — watch for transaction terms and potential dilution .
Operating discipline is evident; OpEx growth expected to lag revenue growth, enabling EBITDA scalability if top-line momentum persists .
Near-term trading setup: Raised FY guide and Q3 EBITDA-positive outlook are supportive; track backlog conversion and regional momentum as catalysts into Q3 print .
Medium-term thesis: Open-architecture MLPE, installer education, and fragmented-market penetration position Tigo to gain share through cycle; execution on refinancing and maintaining ~40% GM are key to unlocking sustainable profitability .

Additional Document Notes

Read in full: Q2 2025 Form 8-K with Exhibit 99.1 press release (financials, guidance) .
Read in full: Q2 2025 earnings call transcript (regional/product mix, margin drivers, debt/guide details) .
Prior quarters: Q1 2025 8-K (guide and results) ; Q4 2024 8-K (inventory charges, reset, and FY24 results) .
Other relevant press releases for Q2 2025: None found in the period searched [List: 0 found].

TIGO ENERGY, INC. (TYGO)·Q2 2025 Earnings Summary