FTC Solar (NASDAQ:FTCI) used its fourth-quarter 2025 earnings call to highlight a sharp sequential rebound in revenue, record-like profitability metrics for the company as a public entity, and what management characterized as improving commercial traction as more master supply agreements (MSAs) and vendor approvals begin converting into orders.
Fourth-quarter results: revenue up 26% sequentially, adjusted EBITDA nearly breakeven
CEO Yann Brandt said fourth-quarter performance landed “at the high end” of the company’s targets and marked FTC’s highest quarterly revenue since the first quarter of 2023. CFO Cathy Behnen reported revenue of $32.9 million, above the midpoint of guidance and up 26% from the prior quarter and 149% from the year-ago quarter.
Operating expenses were $10.6 million on a GAAP basis and $8.2 million on a non-GAAP basis. Adjusted EBITDA loss narrowed to $300,000, which Behnen said was FTC’s strongest result since going public and its best adjusted EBITDA result in six years. She noted adjusted EBITDA excluded approximately $33.5 million related to warrant fair value changes, transition costs, and other non-cash items.
GAAP loss widened on non-cash warrant accounting
FTC reported a GAAP net loss of $33.7 million, or $2.23 per diluted share, compared with a loss of $23.9 million in the prior quarter. Behnen emphasized that warrants issued as part of last year’s capital raise are accounted for as a liability, requiring mark-to-market adjustments each quarter.
Because the share price increased during the quarter, the fair value of the warrant liability rose by about $26 million, which was recorded as a non-cash loss and drove the larger GAAP net loss, according to the CFO.
Bookings, backlog, and MSAs: conversions improving, more agreements announced
Brandt spent much of his prepared remarks discussing sales “leading indicators,” including vendor approvals, bidding activity, and MSA-to-order conversions. He said FTC was added to the approved vendor lists (AVLs) of four of the top 10 EPCs during the quarter, bringing its total to eight of the top 10. Brandt described AVL inclusion as a key prerequisite for winning and closing projects.
He said the company has posted improving net bookings for the past three quarters and recorded a “significant increase” in the fourth quarter, with a positive book-to-bill or positive net bookings as MSAs begin converting into firm orders. Since the prior earnings call, Brandt said FTC added $61 million to contracted backlog, or roughly $29 million net of fourth-quarter revenue.
Behnen put contracted backlog at $491 million, with about $60 million added since November 12.
Brandt also announced new MSAs that were not included in backlog figures, describing additional multi-year agreements expected to be announced. Notable MSAs discussed on the call included:
- A new 1 gigawatt, three-year U.S. supply agreement with a “leading developer and operator of wind and solar farms,” covering 1P and 2P trackers and including SUNPATH software.
- A multi-year agreement with Lubanzi in South Africa for about 840 megawatts of trackers, with the first project expected to begin mid-year, according to Brandt.
In the Q&A, Brandt said FTC expects MSA utilization to “accelerate” in 2026, following what he described as an “air pocket” in 2025 in which projects were delayed by capital availability, permitting, and industrywide disruptions. On timing for the newly announced MSAs, he said Lubanzi has multiple projects slated to start mid-year, while the newly announced U.S. agreement is in design on several sites and could begin booking in the back half of the year depending on permitting and offtake progress.
Product positioning: installation efficiency and additional labor savings targeted
Brandt reiterated a strategy centered on independent row architecture and said FTC’s tracker is designed to be fast and easy to install. He cited “unmatched efficiency of 0.053 labor hours per module,” which he attributed to features including Python Clips, slide-and-glide rails, an open trunnion design, and power cinch clips.
He said the company is targeting an additional 20% in labor savings, framing labor availability and rising labor costs as increasing industry constraints. Brandt also said customers are increasingly evaluating trackers based on total installed cost rather than tracker price alone, which he argued could help reduce sensitivity to pricing pressure.
2026 outlook: softer first-quarter guide, results expected to be back-half weighted
For the first quarter, Behnen guided to revenue of $20 million to $25 million, non-GAAP gross profit of ($0.5) million to $2.3 million (or -2.5% to 9.2% margin), non-GAAP operating expenses of $8.2 million to $8.9 million, and an adjusted EBITDA loss of $9.6 million to $5.9 million.
For full-year 2026, management said it expects to grow faster than the industry, while cautioning that results should be weighted toward the back half of the year due to order timing following 2025 regulatory uncertainty and the ramp of MSA projects.
In Q&A, Brandt characterized the first-quarter step-down as typical seasonality and also tied it to contracting delays during what he described as a difficult Q2 and Q3 2025 environment influenced by legislation and tariffs. He said projects were delayed rather than lost, as customers worked through contracting and capital formation.
On SUNPATH software, Brandt said commercial terms vary by geography and customer preference, with some paying upfront for a period of time and others favoring a recurring model. He also described 3D backtracking as particularly valuable on uneven terrain and aligned with independent row architecture.
On strategy, Brandt said FTC’s near-term focus remains on expanding within trackers—getting on AVLs and converting MSAs to projects—rather than pursuing diversification acquisitions like some competitors. He also said he did not view capacity as a limiting factor if conversions accelerate, citing supply chain strength, contract manufacturing, and the acquisition of Alpha Steel in the fourth quarter.
Finally, management addressed liquidity-related questions, including a disclosure about not being in compliance with a purchase order covenant in a credit agreement. Brandt described it as a “technical issue” driven by restrictive language and said the company expects to resolve it. Behnen added the company still has an at-the-market (ATM) facility available and used it in the fourth quarter, and she said there is expanded liquidity within the debt agreement with lenders.
About FTC Solar (NASDAQ:FTCI)
FTC Solar, Inc (NASDAQ:FTCI) specializes in the design, manufacturing and deployment of solar tracker systems for utility-scale photovoltaic power plants. The company’s tracker solutions are engineered to follow the sun’s path and optimize energy capture, helping customers maximize the performance of their solar assets. In addition to its core mechanical tracker products, FTC Solar offers advanced supervisory control and data acquisition (SCADA) software that enables remote monitoring, predictive maintenance and performance analytics.
Headquartered in Austin, Texas, FTC Solar supports large-scale solar projects across multiple regions, including North America, Latin America, Europe and the Middle East.
