FTC Solar sees 67% YoY decline in Q3 revenue from lower volumes
POWER & RENEWABLE ENERGY

FTC Solar sees 67% YoY decline in Q3 revenue from lower volumes

FTC Solar, a U.S.-based provider of solar tracker systems, reported a revenue of $10.14 million in the third quarter (Q3) of 2024, surpassing analyst expectations by $240,680. However, this figure marked a 66.8% year-over-year (YoY) decline compared to the same quarter in 2023, primarily attributed to reduced product volumes.

The decline in solar tracker revenue was mainly due to an 82% decrease in the amount of MW produced, which was negatively impacted by delays in customer projects. This was partially offset by an increase in the average selling price (ASP), which led to better pricing and changes in the project mix compared to Q3 2023.

FTC Solar also offers engineering and software solutions for project design. Revenue from these services fell 39.8% YoY, driven by a 29% decrease in ASP and lower engineering consulting revenues. This decline was partially mitigated by an 18% increase in MW delivered, attributed to the timing of project deliveries.

The company reported an earnings per share (EPS) of -$0.10, missing analyst expectations by $0.01. Despite this revenue shortfall, FTC Solar's net loss for Q3 was $15.4 million, an improvement over the $16.9 million loss recorded in Q3 2023. Adjusted EBITDA loss widened to $12.2 million from $9.7 million in the same period last year.

FTC Solar is focusing on improving direct margins by significantly reducing steel content (by more than 20%) and cutting manufacturing costs.

In a move to strengthen its balance sheet, FTC Solar secured a $15 million, five-year promissory note from an institutional investor. The note carries an interest rate of 11% if paid in cash or 13% if paid in kind. The agreement also includes warrants allowing the investor to purchase 17.5 million shares of FTC Solar stock at an exercise price of $0.01 per share, with a ten-year maturity period. As part of the deal, the investor has the right to nominate a board member.

Additionally, FTC Solar received a $4.7 million earn-out payment from its previous stake in Dimension Energy, a community solar developer. Since selling its investment, FTC Solar has collected over $9 million from this venture and remains eligible for up to $5 million in earn-out payments by the end of 2024.

FTC Solar, a U.S.-based provider of solar tracker systems, reported a revenue of $10.14 million in the third quarter (Q3) of 2024, surpassing analyst expectations by $240,680. However, this figure marked a 66.8% year-over-year (YoY) decline compared to the same quarter in 2023, primarily attributed to reduced product volumes. The decline in solar tracker revenue was mainly due to an 82% decrease in the amount of MW produced, which was negatively impacted by delays in customer projects. This was partially offset by an increase in the average selling price (ASP), which led to better pricing and changes in the project mix compared to Q3 2023. FTC Solar also offers engineering and software solutions for project design. Revenue from these services fell 39.8% YoY, driven by a 29% decrease in ASP and lower engineering consulting revenues. This decline was partially mitigated by an 18% increase in MW delivered, attributed to the timing of project deliveries. The company reported an earnings per share (EPS) of -$0.10, missing analyst expectations by $0.01. Despite this revenue shortfall, FTC Solar's net loss for Q3 was $15.4 million, an improvement over the $16.9 million loss recorded in Q3 2023. Adjusted EBITDA loss widened to $12.2 million from $9.7 million in the same period last year. FTC Solar is focusing on improving direct margins by significantly reducing steel content (by more than 20%) and cutting manufacturing costs. In a move to strengthen its balance sheet, FTC Solar secured a $15 million, five-year promissory note from an institutional investor. The note carries an interest rate of 11% if paid in cash or 13% if paid in kind. The agreement also includes warrants allowing the investor to purchase 17.5 million shares of FTC Solar stock at an exercise price of $0.01 per share, with a ten-year maturity period. As part of the deal, the investor has the right to nominate a board member. Additionally, FTC Solar received a $4.7 million earn-out payment from its previous stake in Dimension Energy, a community solar developer. Since selling its investment, FTC Solar has collected over $9 million from this venture and remains eligible for up to $5 million in earn-out payments by the end of 2024.

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