Second quarter 2026
Filed Aug 5, 2026FTC Solar reported $26.2 million of second-quarter revenue, up 51.5% sequentially and 30.8% year over year, while reaffirming 40% full-year 2026 revenue growth.
Revenue growth accelerated and reached the top of the company’s second-quarter guidance range, but gross margin remained negative, GAAP net loss widened sequentially, cash declined, and the company established an equity line of credit for up to $20 million.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $26.2 million | 51.5% | 30.8% |
| Product revenueGAAP | $ 22,405 (in thousands) | – | – |
| Service revenueGAAP | $ 3,752 (in thousands) | – | – |
| Gross lossGAAP | $2.2 million | – | – |
| Gross margin percentageGAAP | (8.5%) | – | – |
| Gross lossnon-GAAP | $1.3 million | – | – |
| Gross margin percentagenon-GAAP | (5.1%) | – | – |
| Total operating expensesGAAP | $11.5 million | – | – |
| Total operating expensesnon-GAAP | $8.5 million | – | – |
| Loss from operationsGAAP | $ (13,727 ) | – | – |
| Adjusted EBITDAnon-GAAP | $ (9,777 ) | – | – |
| Net lossGAAP | $27.1 million | – | – |
| Diluted loss per shareGAAP | $1.69 per diluted share | – | – |
| Adjusted net lossnon-GAAP | $ (12,252 ) | – | – |
| Adjusted EPSnon-GAAP | $ (0.76 ) | – | – |
| Six-month total revenueGAAP | $ 43,422 (in thousands) | – | – |
| Six-month gross lossGAAP | $ (3,461 ) | – | – |
| Six-month net incomeGAAP | $ 5,475 (in thousands) | – | – |
| Six-month net cash used in operationsGAAP | $ (4,478 ) | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| ProductProduct revenue was reported in the condensed consolidated statements of comprehensive results of operations. | $ 22,405 (in thousands) | – | – |
| ServiceService revenue was reported in the condensed consolidated statements of comprehensive results of operations. | $ 3,752 (in thousands) | – | – |
Third quarter 2026 outlook
- Revenue$30.0 – $35.0 million
- Gross margin(3.0%) – 5.1%
- Operating expenses$7.7 – $8.3 million
- NoteNon-GAAP Gross Profit (Loss): $(0.9) – $1.8 million
- NoteNon-GAAP adjusted EBITDA: $(9.3) – $(6.0) million
- NoteThe company expects further sequential growth in the fourth quarter.
- NoteThe company continues to expect full-year revenue 2026 growth of 40% relative to 2025.
Capital returns
- FTC Solar entered into a purchase agreement establishing an Equity Line of Credit with Lincoln Park Capital under which, subject to certain conditions, FTC Solar has the right to sell, and Lincoln Park is obligated to purchase, up to $20 million worth of common shares.
- During the six months ended June 30, 2026, proceeds from sale of common stock were $ 1,472 (in thousands).
What drove it
- Second-quarter revenue increased 51.5% compared to the prior quarter and 30.8% compared to the year-ago quarter.
- The contracted portion of backlog stood at approximately $560 million.
- The company received a purchase order for its first 1P tracker system with a top U.S. developer that has heretofore been a 2P customer. The East Coast project is just over 100 megawatts.
- FTC Solar received notice to begin production on a 330+ megawatt project in Queensland, Australia, with tracker deliveries beginning in the second half of 2026.
- The company said it entered the India market and won multiple initial projects ranging from pilot to 100+ megawatt projects, with shipments ongoing in 2026.
- Subsequent to quarter end, FTC Solar received a new 400 megawatt purchase order for a 1P project being constructed by a top 5 U.S. EPC and a top 5 U.S. developer.
Concerns
- GAAP gross margin was (8.5%) and non-GAAP gross margin was (5.1%) in the second quarter.
- GAAP net loss was $27.1 million, compared to income of $32.6 million in the prior quarter.
- Interest expense was $ (4,333 ) (in thousands) in the second quarter, compared with $ (731 ) (in thousands) in the year-ago quarter.
- The company recorded a $ (8,887 ) (in thousands) loss from change in fair value of warrant liability in the second quarter.
- The backlog definition includes awarded orders that may not yet be contracted and certain projects for which binding pricing has not been locked in.
What to watch
- Execution against third-quarter revenue guidance of $30.0 – $35.0 million and the company’s expectation of further sequential growth in the fourth quarter.
- Progress toward positive non-GAAP gross margin under third-quarter guidance of (3.0%) – 5.1%.
- Delivery timing for the 330+ megawatt Queensland project, which is scheduled to begin in the second half of 2026.
- Conversion of opportunities with top EPCs and developers into bookings and contracted backlog.
- Use of the up to $20 million Equity Line of Credit and the resulting source of funding, if any.
Balance sheet and cash flow
- Cash and cash equivalents were $ 10,075 (in thousands) as of June 30, 2026, compared with $ 21,105 (in thousands) as of December 31, 2025.
- Restricted cash was $ 1,000 (in thousands) as of June 30, 2026.
- Short-term debt was $ 22,641 (in thousands) as of June 30, 2026, compared with $ 12,681 (in thousands) as of December 31, 2025.
- Long-term debt was $ — as of June 30, 2026, compared with $ 9,921 (in thousands) as of December 31, 2025.
- Total stockholders’ deficit was $ (30,346 ) (in thousands) as of June 30, 2026.
- Net cash used in operations was $ (4,478 ) (in thousands) for the six months ended June 30, 2026.
- Purchases of property and equipment were $ (595 ) (in thousands) for the six months ended June 30, 2026.
- Repayments of borrowings were $ (6,260 ) (in thousands) for the six months ended June 30, 2026.
- Cash, cash equivalents and restricted cash at end of period were $ 11,075 (in thousands).
Analysis
FTC Solar’s second-quarter revenue was $26.2 million, up 51.5% sequentially and 30.8% from the year-ago quarter. Revenue reached the top end of the company’s $22.0 – $26.0 million second-quarter guidance range. Product revenue was $ 22,405 (in thousands), while service revenue was $ 3,752 (in thousands). Management tied the growth outlook to a broader customer base, sales investment, AI-driven bidding capabilities, and international activity in Australia and India.
Profitability improved from the year-ago period but remained negative. GAAP gross margin was (8.5%), versus (19.6%) in the year-ago quarter, while non-GAAP gross margin was (5.1%), versus (17.4%). Sequentially, GAAP gross margin moved from (7.1%) to (8.5%). GAAP operating expenses were $11.5 million and non-GAAP operating expenses were $8.5 million. The company reported a GAAP loss from operations of $ (13,727 ) (in thousands) and adjusted EBITDA of $ (9,777 ) (in thousands).
GAAP net loss was $27.1 million, or a loss of $1.69 per diluted share. The loss included a $ (8,887 ) (in thousands) loss from the change in fair value of warrant liability and $ (4,333 ) (in thousands) of interest expense. Adjusted net loss was $ (12,252 ) (in thousands), and adjusted EPS was $ (0.76 ). The balance sheet showed $ 10,075 (in thousands) of cash and cash equivalents, $ 22,641 (in thousands) of short-term debt, and total stockholders’ deficit of $ (30,346 ) (in thousands) at June 30, 2026.
The company used $ (4,478 ) (in thousands) of operating cash flow during the first six months of 2026 and reported $ (595 ) (in thousands) of property and equipment purchases. It also repaid $ (6,260 ) (in thousands) of borrowings during the six-month period. Subsequent to quarter end, FTC Solar established an Equity Line of Credit allowing sales of up to $20 million of common shares, subject to conditions, adding a potential funding source.
Management reaffirmed its expectation for full-year 2026 revenue growth of 40% relative to 2025 and guided third-quarter revenue to $30.0 – $35.0 million. Third-quarter non-GAAP gross margin guidance of (3.0%) – 5.1% indicates an expected improvement from the second quarter at the upper end, while the range still permits a negative gross margin. Backlog of approximately $560 million, the Australia production notice, new India projects, and the subsequent 400 megawatt U.S. 1P purchase order are key indicators of the company’s project pipeline and second-half delivery opportunity.
Management, verbatim
We’re pleased to report that second quarter results were in line with or better than our targeted ranges, and that we remain on track to outpace the market with 40% annual revenue growth in 2026.
Anthony Carroll, President and CEO of FTC Solar
Following 52% sequential growth in the second quarter, we’re looking for another 24% growth in Q3 before accelerating again in Q4.
Anthony Carroll, President and CEO of FTC Solar
Our opportunity is great, our plan is clear, the path to profitability is there, and our second half revenue growth outlook is very strong.
Anthony Carroll, President and CEO of FTC Solar
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so comparisons of actual results with prior guidance are not included.
- Third-quarter GAAP guidance and quantitative reconciliations of forward-looking non-GAAP guidance measures to GAAP measures were not provided.
- Tax-rate guidance was not provided.
- Free cash flow was not reported.
- Second-quarter operating cash flow was not reported separately.
- Second-quarter capital expenditures were not reported separately.
- Segment-level year-over-year and sequential revenue changes were not reported.
- GAAP operating-expense sequential comparison was not reported.
- Non-GAAP gross-loss sequential comparison was not reported.
- Share repurchases and dividends were not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.