Second quarter 2026
Filed Aug 4, 2026Second-quarter revenue grew year over year, but revenue was below guidance and profitability weakened excluding a discrete income-tax benefit as U.S. demand remained soft and Europe recovered more gradually than anticipated.
Revenue increased 5.6% year over year, inventory declined, and the company reported GAAP net income, but revenue was below guidance, gross margin declined, adjusted EBITDA fell year over year, and full-year revenue outlook was updated lower due to delayed inverter volume shipments, the slower GO Battery ramp, and a gradual European recovery.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenueother | $25.4 million | – | 5.6% |
| Gross profitother | $10.0 million | – | – |
| Gross marginother | 39.3% of net revenue | – | – |
| Operating expensesother | $11.7 million | 11.6% reduction | 4.8% reduction |
| Loss from operationsother | $1.7 million | – | – |
| GAAP net incomeGAAP | $2.2 million | – | – |
| Discrete income-tax benefitGAAP | $3.2 million | – | – |
| Non-GAAP net incomenon-GAAP | $3.6 million | – | – |
| Adjusted EBITDAnon-GAAP | $52 thousand | – | – |
| Inventoryother | $20.6 million | – | – |
| Inventory at year-end 2025other | $31.3 million | – | – |
| Cash and cash equivalentsother | $16.9 million | – | – |
| Borrowingsother | $4.1 million | – | – |
| MLPE units shippedother | 702 thousand units | – | – |
| MLPE shippedother | 527 MW | – | – |
| GO ESS revenueother | $2.2 million | – | – |
| GO ESS share of quarterly revenueother | 8.6% of quarterly revenue | – | – |
| EMEA share of second-quarter revenueother | 73.1% of second-quarter revenue | – | – |
| Germany share of revenueother | 22.8% of revenue | – | – |
| APAC share of revenueother | 10.1% of revenue | – | – |
| Americas and LATAM share of revenueother | 16.8% | – | – |
| Germany year-over-year growthother | 6.4% | – | 6.4% |
| Italy year-over-year growthother | 20.0% | – | 20.0% |
Third quarter ending September 30, 2026; full year 2026 outlook
- Revenue$24 million to $26 million
- NoteAdjusted EBITDA (loss) is expected to be within the range of $(1) million to $0.5 million.
- NoteFull year 2026 revenue outlook: $100 million to $110 million.
What drove it
- U.S. sales remained soft following the expiration of the residential clean-energy tax credit.
- The U.S. optimized inverter partner encountered operational delays, shifting the go-to-market launch for the Section 45X and ITC qualified optimized inverter solution, with volume shipments expected to begin ramping in the fourth quarter.
- The Europe market recovery continued at a more measured pace than anticipated.
- Germany and Italy grew 6.4% and 20.0% year over year, respectively, and management cited year-over-year growth in Spain and Australia.
- GO ESS contributed $2.2 million, or 8.6% of quarterly revenue, in the early stage of the GO Battery ramp.
- Management said gross margin and adjusted EBITDA reflected a softer revenue mix.
Concerns
- Second-quarter revenue came in below guidance.
- Gross margin was 39.3% of net revenue, compared with 44.7% of net revenue.
- Adjusted EBITDA was $52 thousand, compared with adjusted EBITDA of $1.1 million in the second quarter of 2025.
- GAAP net income included a $3.2 million discrete income-tax benefit.
- Management cited the slower ramp of the new GO Battery and a more gradual recovery in Europe in updating full-year revenue outlook.
- U.S. residential sales remained soft after expiration of the residential clean-energy tax credit.
What to watch
- The fourth-quarter ramp of volume shipments for the Section 45X and ITC qualified optimized inverter solution.
- Execution of the GO Battery ramp.
- The pace of recovery in Europe.
- Whether U.S. demand responds to the FCC decision restricting future authorizations of foreign-produced power inverters.
- Third-quarter revenue within the guided range of $24 million to $26 million and adjusted EBITDA (loss) within the guided range of $(1) million to $0.5 million.
Balance sheet and cash flow
- Reduced inventory to $20.6 million from $31.3 million at year-end 2025.
- Ended the quarter with $16.9 million in cash and cash equivalents.
- Ended the quarter with $4.1 million in borrowings.
Analysis
Tigo reported second-quarter revenue of $25.4 million, up 5.6% from $24.1 million in the second quarter of 2025. Management stated that revenue came in below guidance. Demand conditions were uneven: U.S. sales remained soft following the expiration of the residential clean-energy tax credit, while the European recovery continued at a more measured pace than anticipated. Germany and Italy grew 6.4% and 20.0% year over year, respectively, and management also cited year-over-year growth in Spain and Australia.
The revenue mix was geographically concentrated in EMEA, which represented 73.1% of second-quarter revenue. Germany was the largest market at 22.8% of revenue, APAC represented 10.1% of revenue, and the Americas and LATAM represented a combined 16.8%. GO ESS contributed $2.2 million, or 8.6% of quarterly revenue, during the early stage of the GO Battery ramp. The company shipped 702 thousand units, or 527 MW, of MLPE during the quarter.
Margins and underlying profitability weakened. Gross profit was $10.0 million, or 39.3% of net revenue, compared with $10.8 million, or 44.7% of net revenue. Operating expenses declined to $11.7 million from $12.3 million, and management said expenses were reduced 4.8% year over year and 11.6% sequentially. However, loss from operations was $1.7 million versus a loss from operations of $1.5 million, while adjusted EBITDA was $52 thousand compared with $1.1 million. Management attributed gross margin and adjusted EBITDA to a softer revenue mix.
GAAP net income was $2.2 million compared with a GAAP net loss of $4.4 million, but the reported income included a $3.2 million discrete income-tax benefit. Non-GAAP net income was $3.6 million, which also included the discrete income-tax benefit, compared with a non-GAAP net loss of $2.1 million. Balance-sheet actions included reducing inventory to $20.6 million from $31.3 million at year-end 2025; cash and cash equivalents were $16.9 million and borrowings were $4.1 million at quarter end.
For the third quarter ending September 30, 2026, Tigo guided revenue to $24 million to $26 million and adjusted EBITDA (loss) to $(1) million to $0.5 million. The company updated its full-year 2026 revenue outlook to $100 million to $110 million, citing the delayed fourth-quarter partner launch, slower GO Battery ramp, and gradual European recovery. Management expects volume shipments of the optimized inverter solution to begin ramping in the fourth quarter and views the FCC decision and European Union actions as potential supports for demand for locally produced solar products.
Management, verbatim
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,
Zvi Alon, Chairman and CEO of Tigo
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,
Bill Roeschlein, CFO of Tigo
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,
Bill Roeschlein, CFO of Tigo
Not in the filing
stated, not guessed- GAAP diluted EPS and non-GAAP diluted EPS were not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Capital expenditures were not reported.
- Share repurchases and dividends were not reported.
- Debt maturity, interest expense, and total debt detail were not reported.
- Gross-margin guidance, operating-expense guidance, and tax-rate guidance were not reported.
- Prior-quarter figures for revenue, gross profit, gross margin, operating expenses, loss from operations, GAAP net income, non-GAAP net income, and adjusted EBITDA were not reported.
- Revenue by product line, geography, or operating segment was not reported; only geographic revenue shares and certain geographic growth rates were provided.
- Prior guidance was not provided.
AlphaAI 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.