What happened
FTC Solar, Inc. (NASDAQ: FTCI) said on September 30, 2026, that it entered a third amendment and limited waiver with its lenders. The agreement pushes the next $5 million repayment from September 30, 2026, to March 31, 2027. No financial covenants apply to the quarter ended September 30, 2026, and the full-year 2026 adjusted EBITDA covenant was removed.
The minimum unrestricted cash covenant starts on January 4, 2027, at $15 million. The minimum revenue covenant starts on March 31, 2027, at $60 million for that quarter and $75 million for each fiscal quarter thereafter. The first-quarter 2027 adjusted EBITDA covenant is $2 million. The existing purchase-order covenant was not amended, and direct tracker margin tests also begin then.
Key numbers
| Metric | Latest | Change | Source |
|---|---|---|---|
| Deferred repayment | $5 million | SEC 8-K | |
| Minimum unrestricted cash balance | $15 million | SEC 8-K | |
| Minimum revenue covenant for quarter ending March 31, 2027 | $60 million | SEC 8-K | |
| Minimum revenue covenant thereafter | $75 million | SEC 8-K | |
| First quarter 2027 adjusted EBITDA covenant | $2 million | SEC 8-K |
Why it matters
OptimistFi's case is that FTCI is a high-risk turnaround whose equity depends on renewed project wins, positive gross margins and enough liquidity to restore customer bankability. This amendment gives the company more time by moving the repayment date and delaying covenant testing. That matters because the filing makes liquidity a near-term test, not a long-dated one.
It also sets a new 2027 hurdle. Cash, revenue and EBITDA tests all return after year-end. The revenue floor rises 25.0% from $60 million in the March 31, 2027 quarter to $75 million in each quarter after that. The filing is a reset, not a cure. It gives the company more time, but on a tighter timetable.
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What's next
The next dated covenant test begins on January 4, 2027, when FTC Solar must hold at least $15 million of unrestricted cash. On March 31, 2027, the company faces the $60 million revenue test and the $2 million adjusted EBITDA test.
The quarter ending March 31, 2027 is also when the direct tracker margin thresholds begin, and the minimum revenue covenant rises to $75 million for each fiscal quarter thereafter. Meeting those thresholds would support the turnaround case. Misses would leave less room under the amended credit agreement. Any shortfall would make the 2027 reset harder to meet.
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Sources
- SEC 8-K — Current report describing the Third Amendment and Limited Waiver to the Credit Agreement.
- FTC Solar press release — Press release announcing the waiver and amendment to the credit agreement.
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Originally published on OptimistFi, evidence-first equity research. More at optimistfi.com.
