Tigo Energy Q1 2026 Earnings Call: Complete Transcript

Tigo Energy (NASDAQ:TYGO) reported first-quarter financial results on Tuesday. The transcript from the company's first-quarter earnings call has been provided below. This content is powered by Benzinga APIs. For comprehensive financial data and transcripts, visit https://www.benzinga.com/apis/. View the webcast at https://edge.media-server.com/mmc/p/68gybmp8/ Summary Tigo Energy reported first-quarter 2026 revenue with MLPE at $20.8 million (82.4% of total), GOESF at $4 million (15.8%), and Predict Plus at $0.5 million (1.8%). Gross profit increased to $10.8 million, reflecting a margin of 42.8%, up from 38.1% a year ago, mainly due to the absence of warranty charges. Operating expenses rose by 18.4% to $13.2 million, driven by a $1 million bad debt expense due to a European distributor's bankruptcy. GAAP net loss improved to $1.8 million from $7 million a year ago, with non-GAAP net loss at $0.1 million. Adjusted EBITDA loss decreased significantly by 76.8% to $0.5 million. Cash and equivalents increased by $3.9 million to $11.6 million following a $15 million direct offering and a new credit facility with Wells Fargo. For Q2 2026, the company expects revenue between $30 million and $32 million, and adjusted EBITDA between $1 million and $3 million. Full-year 2026 revenue guidance remains between $130 million and $135 million. Tigo Energy plans to leverage market opportunities in Europe, particularly with the potential EU ban on Chinese inverters, and is expanding its presence in Eastern Europe. The company sees growth potential in utility-scale solar projects and expects meaningful contributions from its GOESF and optimization solutions in 2026. Management expressed optimism about market share gains and growth opportunities in both the US and European markets. Full Transcript Bill Sequential decrease. America's revenue was 5.3 million or 20.9% of total revenues and a 43% sequential decrease and APAC revenue was 2.4 million or 9.6% of total revenues and a 10.2% sequential decrease by product family. For the first quarter of 2026, MLPE revenue represented 20.8 million of revenue or 82.4% of total revenues. GOESS represented 4 million or 15.8% of total revenues and Predict Plus represented 0.5 million or 1.8% of total revenues during the quarter. Gross profit for the first quarter of 2026 was 10.8 million or 42.8% of revenue compared to a gross profit of 7.2 million or 38.1% of revenue in the comparable year ago period. Improvement in gross margin is largely due to the absence of warranty related charges in the most recent quarter compared to the year ago period. Operating expenses for the first quarter increased 18.4% to 13.2 million compared to 11.2 million in the prior year period. The increase was driven primarily by bad debt expense of $1 million as a result of the bankruptcy of a European distributor during the quarter. We do expect a portion of this amount to be recoverable through insurance in a future period. Operating loss for the first quarter decreased by 4% compared to operating loss of 4 million in the prior year period. GAAP net loss for the first quarter was 1.8 million compared to a net loss of 7 million for the prior year period. Non GAAP net loss was which we are introducing this quarter and reconciles from GAAP net loss solely by excluding stock based compensation totaled 0.1 million compared to a non GAAP net loss of 5.4 million in the prior year period. We believe this measure provides investors with additional insight into our progress toward achieving consistent GAAP net income. Adjusted EBITDA loss for the first quarter decreased 76.8% to 0.5 million compared to an adjusted EBITDA loss of 2 million in the prior year period. As a reminder, adjusted EBITDA is a non GAAP measure that represents net loss as adjusted for interest and other expenses, income tax expense, depreciation, amortization, stock based compensation and MA transaction expenses. Primary shares outstanding at the end of the quarter were 75.9 million. Turning to the balance sheet, accounts receivable net increased this quarter to 14.2 million compared to 13.9 million last quarter and increased from 10.4 million in the year ago. Comparable period Inventories net decreased by 6.5 million or 20.7% to 24.8 million compared to 31.3 million last quarter and increased compared to 18.9 million in the year ago. Comparable period cash, cash equivalents and short and long term marketable securities totaled 11.6 million at March 31, 2026. On a sequential basis, cash increased by 3.9 million as we successfully closed a registered direct offering of approximately $15 million during the quarter. In addition, we closed on a credit facility with Wells Fargo bank at the end of the first quarter. The facility provides up to $10 million of availability based upon a borrowing based formula and consisting of certain accounts receivable and inventory held by the company. No drawdowns were taken during the first quarter. Turning now to our financial outlook for the second quarter of 2026 and full year of 2026. As a reminder, Tigo Energy provides quarterly guidance for revenue as well as adjusted EBITDA as we believe these metrics are key indicators for the overall performance of our business. For the second quarter of 2026, we expect revenues and adjusted EBITDA to be in the following range. We expect revenues in the second quarter ended June 30, 2026 to range between $30 million and $32 million. We expect adjusted EBITDA to range between $1 million and $3 million. For the full year of 2026, we continue to expect revenues to range between 130 million and $135 million. That completes my summary and I'd like to now turn the call back over to Zvi for final remarks. Zvi Zvi thanks Bill. We are pleased with how we have started 2026 and the traction we are seeing across our key markets. The continued predictability of our business reinforces our confidence in sustaining growth through the remainder of the year and we expect to maintain our competitive outperformance. We entered the remainder of the year with a strong foundation and a clear path forward and we're excited about the opportunities ahead. With that, operator, please open the call for Q and A. Philip Shen (Equity Analyst) Hi, thanks for taking my questions. Wanted to start with the potential for the EU to ban Chinese inverters and wanted to understand if you could be a beneficiary of that. What have you learned about this and how quickly could this ban become effective? It seems like it could be or may be effective already. So are you seeing a change in the business at all already? Zvi So we are aware of the change. It actually started, I would say probably last year sometime. And there are a couple of countries already that are banning Chinese controlled monitoring systems and devices. And so we do believe that it would actually increase the market share for our solutions out there. And so we see it as a positive contributor for our solutions in the market. We have been touting the security of us being US and monitored in the US solutions for quite some time and that seems to be obviously working with those sentiments which are in the market in general. Philip Shen (Equity Analyst) Okay, thanks, V. Are you seeing a change in demand for your business because of this or is it hard to discern that the demand is coming from this? Zvi It's hard to, yes. Right now it's hard to actually say that it is correlated in general. I can tell you that we've seen Europe starting to wake up towards the end of the quarter, the first quarter, and from that perspective we are fairly confident it will continue and that addition of the ban on Chinese products will just accelerate it and help more. But I can tell you that our optimizers are doing exceptionally well in what we see in the market. Philip Shen (Equity Analyst) Great. Thanks, V. Can you elaborate more on that? I know you had a lot of volume, most of it from Europe in the quarter. That mix of call it 70% from EMEA or Europe. Do you think that mix stays similar through the rest of this year and maybe give us a little more color on which countries are strong and maybe which countries have been less strong, but could become stronger ahead. Zvi So we've been sort of trending in this, these percentages for a little bit of time here. About 65, 70% from EMEA. It was once higher than that. But the US has really picked up steam for us and with the repower initiatives that we've had and now with the introduction of our new hybrid inverter and battery solution along with EG4 partnership for optimized inverters, we think that Europe, the US could be a market where we pick up a good share regardless of the macro condition there. So that might drive the EMEA region perhaps to be a little bit less than 7% by the time we get to the end of the year. Well, I just have to see how that plays out within the European area. We've historically been strong in Italy, Germany, Those being the two biggest economies last year was the U.K. germany has been by most accounts big, but sluggish. And I'd say we've had just, we've had decent growth, but the areas where we've seen some really outsized growth, that's really working in our favor and I think it's going to work out this way in 2026 as well, is the UK was really great because we came in with almost zero market share and quickly established a good revenue base coming into that country. And in 2026 we're making a concerted effort to go after more of the European Eastern European theater where we talked about on this call before, some competitors have withdrawn a bit or reduced their footprint. And so that's where Slovenia, Romania, Poland, even the Czech Republic, which again we've been doing strong for a while now, but they're still additional market share to be picked up there. So we're sort of expanding beyond our traditional strengths in Italy, Germany and going a little bit more east and north, if you will. Philip Shen (Equity Analyst) Great, thanks. Bill, you mentioned repowering. Can you give us some sense of how the success that you're having there. It sounds like this is a big opportunity. If you can quantify anything in terms of how much of your total revenue or total US revenue that could be for 26, that could be very helpful. Sure. Bill So it more than doubled. It was about 23% of 2025. Most recently it was 20%. Again we mentioned we did have a lot of. We believe we had some pull in pull in orders related to the Section 25D expiration that kind of muddled the overall measurement of that. But we're still working with the same installers who are have a brisk book of business and we again expect another year of growth coming from that side of the house. We have a very unique hybrid inverter that fits nicely. It's got the right form factor and it's got the right ability to accept varying voltage levels and minimal amount of rewiring required. So there's a lot of advantages to our solution that fits in well with Repower. But really I think you're going to now layer in our initiative with with our Goess battery hybrid inverter for the year along with EG4. And I think the US market could be very, very strong growth for us Zvi this year and actually on the leap power. One additional point is that the more those systems age, the better it is for us. We've been an early identified, we've identified this market early and we've been playing in it for quite some time. And gaining quite nice momentum. So as it ages it should be better for us. Philip Shen (Equity Analyst) Great. Okay, last one for me. That sounds exciting. Let's move over to the utility scale solar opportunity as V. You mentioned that there's a large pipeline of opportunity there. And so I'm guessing this is tied to Predict plus, which is a software package that you guys have. I was wondering if this is also tied to your optimizer opportunity. So just give us a little more color on what that looks like and how that could drive 2026. Zvi So yes, I did mention last time that we see an increase in activity in utility scale and that continues. I don't want to make any pre announcements, which is not the right thing to do. But in general we do see a momentum in both the Predict Plus as well as the optimization. And on the optimization I will add that we see two main drivers. One is obviously new installations. And we did mention the large installation in Spain which is now operational up and running right next to the Madrid airport, which we got late last year. It was 142 megawatts. And we see in the pipeline similar size projects and a number of them. So we are fairly excited about it and optimistic. Great. Philip Shen (Equity Analyst) Thank you very much. I'll pass it on. Thank you. OPERATOR Thank you. Our next question comes Capital Group.. Eric, your line is live. Eric Hi Zvi. Hi, Bill. Hi. Hi. Hey. So I know you Talked about the EU, the outlook here in 2026, but it was kind of more from a strategic point of view. I'm wondering if you can just dig in a little bit on the the market improvement. People starting to talk about green shoots. You mentioned that you saw that towards the end of the quarter. I mean, where does that stand? I know that you mentioned, at least in Q1, some softness in Germany and the UK and those are two countries where you are starting to see indications of that improvement. So when do you anticipate you might start to see the benefit from that? Is it Q2? It seems like that type of expectation is not necessarily part of your outlook. But when might you see it and when do you become convinced that it is something that is sustainable market improvement? Zvi Thanks, Eric. So we started seeing an improvement in the second part of Q1. The first part of Q1 was very sluggish, to be honest, which is fine. That's normal. It's not like it was different. But despite the fact we still have seen the 30% growth quarter over quarter, year over year, I believe that Q2 by the guidance we provided is also demonstrating a nice growth year over year. And obviously it is based on some of the confidence we see in all regions, including Europe, which is the largest region we have. And so from our perspective, we do believe that we will continue to see market share gain. And also Bill mentioned that we expanded into Eastern Europe in some places where our competitors have left and we've seen some fairly good momentum. So Europe for us is actually showing some fairly good signs, despite the fact that Germany was a little bit slow. I will highlight that we have seen Germany starting to get back to Life in the second part of Q1, the same as what I've highlighted for Q1. So we are not quite sure if they will get back to the same full strength of last year or more. But we have seen an improvement there which is causing us to build a bit more optimistic. In addition, my mention on the success in the utility scale projects, a good portion of them are in Europe. So we don't want to get into specificity right now. But this is a new area for us which is based on the success in Spain we had and some new opportunities we've identified. And so we are actually fairly, we believe fairly strong that Europe is going to be a very good place for us growing, moving forward. Eric Yep. Okay, that is helpful. And then I guess maybe sticking with utility scale. You know, I know that you have talked about, talked about several times, you've got a number of opportunities, you've set the guidance in a spot that you believe is a good place to be. It's obviously very good growth. But you've also talked about these opportunities, whether it's goess eg 4, that would mean potentially significant growth in 26. So I'm curious, where would you put utility scale in that? Is that something that you're starting to see good signs, but that's more of a 2027 event where it really starts to impact financials. Or is it something that potentially, depending on timing, could be more of a 2026 event? Zvi So let me categorically be very clear. The increase in utility Footprint is in 2026 and not the end of the year. And I will just leave it there. So it's. Yeah, Bill just add that we don't normally talk about pipeline, but the deals that we're working on are getting to the point where they are ripe for a decision and there's enough of those in our pipeline where we are at least finalists, where we feel confident that we'll have something to talk about this year. Eric You've been following us for quite some time, so we generally are more conservative. We don't share. Absolutely. Confidence is high. Yep, that's why I'm asking. And so, I mean, I would just assume we should put this in the category along with those others. That could mean, you know, could mean upside to kind of what your view is now. Okay, maybe last one. For me, this is just more a clarification on the repowering. I know that the primary focus there is on the inverter side, but is that also something that potentially develops from an optimizer sign as well? Some of these older systems as they upgrade and perhaps they decide they're 10 years old and decide that they want that control at the panel level. Zvi So it's an outstanding question, Eric. And so you just hit the name on the top. It actually gives us access to two potential expansions. One is the optimizer as you described it. And the second one, since all the solutions we provide with a hybrid inverter adding a battery is very cost effective. So by virtue of increasing that market share with our solutions in the RE power, it will give us an opportunity to sell additional batteries as well at a very cost effective way compared to any other solution. Okay, thank you. Very welcome. Thank you. OPERATOR Thank you. Our next question comes from the line of Samir Joshi with H.C. Wainwright. Samir, your line is open. Samir Joshi Thanks. Thanks for taking my questions. A lot of topics have been covered, but I don't think we discussed enough the GO, ESS, opportunity and traction. It seems that with 4ish million dollars in revenues, it is sort of high since 2023. Are you looking at the meaningful contribution from Goess during 2026 and is it a contributor to growth? Bill We believe that with our next generation that we have here, we expect that it will be widely accepted by the market. And the feature functionality, price point, et cetera and size are all line up to what customers are asking for. And so both in the US with new sales TPO opportunities and even Repower which is a captive market for us to get battery revenue from. And then in Europe we have got, or we've addressed the market's desire for a larger storage capacity for both three phase and single phase markets, especially in the three phase market. So our new, our new generation of battery has both the cold weather functionality which is important in that market, and expansion ability up to almost 48 kilowatt hours. And so that's what the market's been asking for and that's why we're excited about being able to introduce it now. So we expect 26 to be expecting a lot of positive momentum out of both markets. Samir Joshi Yeah, understood. Thanks for that color. And then the second question is inventory was down quarter over quarter sequentially, 6.5 million down. Should we read anything into this or. And then part two of that question is how is the supply chain and how quickly can you rebuild this inventory, Especially given traction or projections of second or outlook for second quarter, second half, as well as the hinted progress on utility scale. Bill We're still. We're still in, you know, eight weeks factory to customer supply chain environment. So we're not seeing major hurdles there. We, as a corporate metric, we try to keep 90 to 100 days of inventory. We were trending higher than that. So us bringing it down was just part of us trying to again run the working capital at an optimal level for us. And so we'll continue to do it that way. We have no problem meeting the utility. Any big utility win. The benefit of having an outsourced contract manufacturing business model allows you to scale up and down very quickly. And it's not very difficult to do. We've got the floor space to do it. We can add another line if and when we need to. Samir Joshi Understood. Thanks for that. And then the last one, just a quick one. On operating expenses through the year, should we expect to see any marginal increases or do you have enough manpower and resources so that we won't see any meaningful increase in OpEx? Bill Yeah, I think we're trending in that 12.5 to $13 million range for the rest of the year. If I were to put a wider lens on it, 12.5 to 13 and a half. So midpoint 13 somewhere in there. We are able to grow this year without having to add a lot of opex demonstrating the leverageability in our operating model. So we've been at this level around 13 for several quarters now. So I think that's the right ballpark for it for the rest of the year. Samir Joshi Got it. Thank you. Thanks for taking my questions. Zvi Thank you. OPERATOR Thank you at this time. This concludes our question and answer session. I'd now like to turn the call back over to Mr. Zvi Alon for closing remarks. Zvi Thanks again everyone for joining us today. I especially want to thank our dedicated employees for their ongoing contributions as well as our customers and partners for their continued hard work. I also want to thank our investors for their continued support. Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice.