Q1 2025 Tigo Energy Inc Earnings Call

After the speaker's presentation, there will be a question and answer session.

Joining us.

Bill: Our pay for fee Alon, CEO and Bill Ross <unk> CFO as a reminder, this call is being recorded I would now like to turn the call over to Bill <unk> Chief Financial Officer.

Speaker Change: Thank you Karen and it's a pleasure to join you from our corporate offices in Campbell, California also with US is <unk>, our CEO, who is joining us from the inter solar conference in Munich, Germany.

Speaker Change: To remind everyone that some of the matters, we'll discuss on this call, including our expected business outlook, our ability to increase our revenues and become profitable in our overall long term growth prospects expectations regarding recovery in our industry, including the timing thereof statements about demand for our products, our competitive position and market share the impact of tariffs.

Speaker Change: Current and future inventory levels charges reserves and their impact on future financial results inventory supply and its impact on our customer shipments statements about our revenue and adjusted EBITDA for the second quarter of 2025, and our revenue for the full year of fiscal year 2025, our ability to penetrate new markets and expand our market share including expansion in international.

Speaker Change: Markets and investments in our product portfolio are forward looking and.

Speaker Change: And as such are subject to known and unknown risks and uncertainties, including but not limited to those factors that are described in today's press release and discussed in the risk factors section of our most recent annual report on Form 10-K, our quarterly report on Form 10-Q for the fiscal quarter ended March 31, 2025, and other reports.

We may file with the SEC from time to time.

These risks and uncertainties could cause actual results to differ materially from those expressed on this call. These forward looking statements are made of App only as of the date made during our call today, we will reference certain non-GAAP financial measures. We include non-GAAP to GAAP reconciliations in our press release furnished as an exhibit to our form 8-K, the non-GAAP financial measures.

Speaker Change: It should not be considered as a substitute for or superior to the measures of financial performance prepared in accordance with GAAP.

Finally, I would like to remind everybody that this conference call is being webcast and a recording will be made available for replay on <unk> Investor Relations website at investors Dot <unk> dot com with that I'd like to now turn the call over to Tycho CEOC along.

Tycho: Thank you Bill.

Tycho: To begin today's discussion I will highlight key areas in those in training assumed operational performance and.

Tycho: And briefly address the current local economic development.

Speaker Change: Before turning the call over to our CFO the last line.

Speaker Change: He will discuss our financial results for the first quarter and no depth as well as provide the guidance for the second quarter and the full year of 2025.

Speaker Change: After this I also some closing remarks tell you about our outlook.

Speaker Change: And then open the call for questions from you.

Speaker Change: Alex.

Speaker Change: I am pleased to report that we ended the first quarter of 2025 was our fifth increase in sequential quarterly revenue growth.

Speaker Change: Growing nine 1% sequentially and 92, 2%.

Speaker Change: On a year over year basis.

Speaker Change: In the first quarter of 2025, we reported a total revenue of $18 8 million.

And shipped 502000 or 351 megawatts of MLP.

Speaker Change: I am exceptionally proud of the photos team here at Tyco is accomplished.

Speaker Change: To give some geographical Carlo.

Speaker Change: We saw positive sequential sales growth in EMEA, the Americas and APAC regions.

Speaker Change: Within EMEA.

Speaker Change: EMEA region.

Speaker Change: The recovery that began for us.

Speaker Change: A year ago.

Speaker Change: There is no burden as we saw much stronger results from Italy.

Speaker Change: And the Netherlands.

Speaker Change: In addition to growth.

Speaker Change: The Americas and Asia Pacific regions also grew sequentially in the first quarter.

Speaker Change: I'm also excited about our recently introduced 20 to.

Speaker Change: T is for a serious.

Speaker Change: Now serving panels up to 725 watts and joining the tier four S. Similarly was the highest safety solution, including the unique Tycho multifactor rapid shutdown demonstrating our commitment to stay ahead of the module performance skills.

Speaker Change: Given the current developments in Washington.

Speaker Change: Many of you are likely interested in how the latest two simple called tariff decisions.

Speaker Change: Talk to us.

Speaker Change: As you May know the majority of Tiger revenue outside of the United States.

Speaker Change: Based on the current to the cyclical tariffs announced we estimated that approximately 5% of our Q1 revenue.

Speaker Change: Would have been affected by the China reciprocal theories of 145%.

Speaker Change: We also estimate there is approximately 15% of <unk> revenue.

Speaker Change: They've been affected by 10%.

Speaker Change: The rest of the world are cyclical theories.

Speaker Change: We are currently working with our supply chain partners to mitigate the effects of this cyclical tariffs where possible.

Speaker Change: And with that I will turn it over to Bill Bill. Thank you. So turning now to our financial results for the first quarter ended March 31, 2025 revenue for the first quarter 25, 2025 increased 92, 2% to $18 8 million from $9 8 million in the prior year period.

Speaker Change: On a sequential basis revenues increased nine 1% with improved results coming from many countries in the EMEA and APAC regions.

Speaker Change: Including Italy, Chechnya, the Netherlands, and the Philippines by region EMEA revenue was $11 5 million or 61, 3% of total revenues.

Speaker Change: Americas region.

Speaker Change: Americas revenue was $4 7 million or <unk>.

And APAC revenue was $2 6 million or 13, 6% of total revenues.

Speaker Change: By product family for the first quarter of 2025, MLP revenue represented $16 million of revenue were 84, 8% of total revenues.

Speaker Change: <unk> represented $2 million or 10, 7% of total revenues and predict plus and licensing revenue represented <unk> 8 million or $4.

Speaker Change: 5% of total revenues during the quarter.

Speaker Change: Gross profit in the first quarter of 2025 was $7 2 million or 38, 1% of revenue compared to gross profit of $2 8 million or 28, 2% of revenue in the comparable year ago period.

Speaker Change: Operating expenses for the first quarter declined five 9% to $11 2 million compared to $11 9 million in the prior year period decline was driven primarily by our previously announced cost cutting efforts.

Speaker Change: Operating loss for the quarter decreased by 56, 2% to $4 million compared to $9 1 million in the prior year period.

Speaker Change: GAAP net loss for the first quarter was $7 million compared to a net loss of $11 5 million in the prior year period.

Speaker Change: Adjusted EBITDA loss in the first quarter decreased 67, 4% to $2 million compared to an adjusted EBITDA loss of $6 3 million in the prior year period.

Speaker Change: These results reflect progress towards profitability on a non-GAAP basis, our previously announced.

Speaker Change: As a reminder, adjusted EBITDA loss 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 M&A transaction expenses.

Speaker Change: Primary shares outstanding were $61 9 million for the first quarter of 2025.

Speaker Change: Turning now to the balance sheet accounts receivable net increased this quarter to $10 4 million compared to $8 million last quarter and increased from $6 3 million in the year ago comparable period.

Inventories net decreased by $3 1 million or 14, 1% to $18 9 million compared to $22 million last quarter and $55 8 million in the year ago comparable period.

Speaker Change: Cash cash equivalents and short and long term marketable securities totaled $20 3 million at March 31, 2025 on a sequential cash sequential basis cash increased by <unk> 4 million as we continue to make progress on reducing our inventory and working capital.

Speaker Change: Turning now to our financial outlook for the second quarter of 2025 and full year of 2025 as a reminder, taizhou provides quarterly guidance for revenue as well as adjusted EBITDA.

Speaker Change: We believe these metrics to be key indicators for the overall performance of our business.

Speaker Change: For the second quarter of 2025, we expect revenues and adjusted EBITDA to be in the following range.

Speaker Change: Revenues in the second quarter ended June 32025 to range between 21% and $23 million.

We expect adjusted EBITDA to range between negative $1 5 million and positive 500000.

Speaker Change: For the full year of 2025, we are reiterating previous our previous guidance of revenues of between 85 and $100 million.

Zee: That completes my summary, and I would like to now turn the call back over to Zee for final remarks.

Zee: We look ahead I am happy to say that even against the backdrop of the economy economic uncertainty. We believe it is our track record of five consecutive quarters with top line growth will continue for the remainder of 2025.

Demand for our solutions continue to return.

Zee: We firmly believe in the growth prospects.

Zee: Our business and look forward to providing additional updates in the coming quarter up in the coming quarters.

With that operator, please open the call for Q&A.

Zee: Thank you.

Zee: This time, we would like to conduct the question and answer session.

Zee: To ask a question you will need to press star one one on your telephone and wait for your name to be announced withdraw. Your question. Please press star one again, please standby, while we compile the Q&A roster.

Zee: Okay.

Craig Hallum: Okay, and a quick Stein of Craig Hallum Capital Group. Your line is now open.

Speaker Change: Hi, Bill.

Zee: Eric.

Zee: Hello.

Zee: Hello.

Speaker Change: Just curious I mean, obviously, a nice recovery you're seeing in in actually across all your markets, but when you think about this I mean, how do you break this down between just improving conditions with your current.

Speaker Change: Distributors and direct sales versus market share gains because clearly this is a little bit of both would love your thoughts on how that breaks down between the two.

Erik: Outstanding question, Erik Thanks for asking it.

Speaker Change: I will share that.

Speaker Change: We continue to see current existing distributors, which are very strong.

Speaker Change: Increasing the <unk>.

Speaker Change: <unk> footprint with us.

Speaker Change: And becoming much more bullish on.

Speaker Change: The market requirements.

Speaker Change: Similarly, our efforts with going directly to at least promoting the products with system integrators and large epc's is paying very nice dividends.

Speaker Change: And.

I can tell you that.

Speaker Change: Majority I would say of our growth is coming from an increased market share we believe.

Speaker Change: Even though it's the same exact distributors and desk, what we hear from them at least I would note as mentioned in the names, but two or three of them mentioned specifically that.

Operator: are in a listen-only mode.

Operator: After the speaker's presentation, there will be a question and answer session.

Operator: joining us today. and Bill Roeschlein, CFO. As a reminder, this call is being recorded.

Speaker Change: We have increased the footprint zanesville portfolio substantially above any other competitor.

Bill Roeschlein: I would now like to turn the call over to Bill Roeschlein, Chief Financial Officer. Thank you, Corinne. And it's a pleasure to join you from our corporate offices in Campbell, California.

Speaker Change: That's good color I mean, do you attribute that to just.

Speaker Change: Just a broader product offering the fact that this can be used for residential C&I utility scale.

Bill Roeschlein: Also with us is Zvi Alon, our CEO, who is joining us from the Intrasolar Conference in Munich, Germany.

Speaker Change: Is it price is it kind of all of the above.

Bill Roeschlein: I'd like to remind everyone that some of the matters we'll discuss on this call, including our expected business outlook, our ability to increase our revenues and become profitable, and our overall long-term growth prospects, expectations regarding recovery in our industry, including the timing thereof, statements about demand for our products, our competitive position, and market share, the impact of tariffs, our current and future inventory levels, charges, reserves, and their impact on future financial results, inventory supply and its impact on our customer shipments, statements about our revenue and adjusted EBITDA for the second quarter of 2025, and our revenue for the full year of fiscal year 2025, our ability to penetrate new markets and expand our market share, including expansion in international markets, investments in our product portfolio, forward-looking.

Speaker Change: So I can tell you that I'll touch the price first.

Speaker Change: We have not changed at all and we've been consistent on that front.

Speaker Change: We introduced the <unk> X family at the higher price and we see a nice increase increase for those products for different market, which is.

Speaker Change: Accepting it so far but as far as the <unk> eight product price was not an issue now.

Speaker Change: I can tell you that many factors, helping us gain market to one the number of Skus is very small and we have a single optimized you'll discover basically the whole market.

Speaker Change: Not only that is the highest power rating.

Bill Roeschlein: As such, we are subject to known and unknown risks and uncertainties, including but not limited to those factors that are described in today's press release and discussed in the risk factors section of our most recent annual report on Form 10-K, our quarterly report on Form 10-Q for the fiscal quarter ended March 31, 2025, and other reports we may file with the SEC from time to time. These risks and uncertainties could cause actual results to differ materially from those expressed on this call. These forward-looking statements are made only as of the date made.

Speaker Change: Which is the current shipping version is 703 eight times was and we just announced the 725.

Speaker Change: What.

Speaker Change: Working for essentially all three market segments.

Speaker Change: Number three I would say we are I believe we are the only company with.

Speaker Change: Backward compatibility of the current shipping products to products received 789 years ago exactly identical.

Speaker Change: Have any failure was it an old product, which they sometimes do happen you don't need to go and get the same exact.

Bill Roeschlein: During our call today, we will reference certain non-GAAP financial measures. We include non-GAAP to GAAP reconciliations in a press release furnished as an exhibit to our Form 8-Q. The non-GAAP financial measures provided should not be considered as a substitute for or superior to the measures of financial performance prepared in accordance with GAAP.

Speaker Change: Policy number you can just buy anyone of the shelf and replace it or get an hour away from us and you will get a new product to replace it.

Speaker Change: Also the fact that our product works with pretty much any inverted Aldo.

Bill Roeschlein: Finally, I would like to remind everybody that this conference call is being webcast and a recording will be made available for replay on TIGO's investor relations website at investors.tigoenergy.com.

Speaker Change: Is also a major contributor so all in all.

Speaker Change: I would mention one more thing.

Speaker Change: Our installation time of the MLP product is superb it's about 10 seconds.

Zvi Alon: With that, I'd like to now turn the call over to TIGO's CEO, Zvi Alon. Thank you, Bill. To begin today's discussion, I will highlight key areas in our recent financial and operational performance and briefly address the current macroeconomics developments.

Speaker Change: Module, it's unheard of I mean, literally just slide the unit on the panel connect the wires and you have done so all those factors together.

Speaker Change: The more people get to experience the.

Speaker Change: <unk>.

Speaker Change: Buy into it and wanted to do more and I can tell you that the amazing felt for US also is that we see larger number of units being shipped to louts EPC installers.

Zvi Alon: before turning the call over to our CFO, Bill Roeschlein.

Bill Roeschlein: He will discuss our financial results for the third quarter in more depth, as well as provide our guidance for the second quarter and the full year of 2025.

Speaker Change: As they become much more.

Zvi Alon: After that, I will share some closing remarks, tell you about our outlook, and then open the call for questions from you and the audience. I am pleased to report that we ended the first quarter of 2025 with our fifth increase in sequential quarterly revenue growth. going 9.1% sequentially and 92.2% on a year-over-year basis. In the first quarter of 2025, we reported a total revenue of $18.8 million. and shipped 502,000 or 351 megawatts of MLPE.

Speaker Change: And.

Speaker Change: Successful with those products.

Speaker Change: Got it thank you very much for that.

Speaker Change: And then I guess for my last question, then I'll turn it over just curious I mean, opex came down or.

Our installation time of the MLP product is superb it's about 10 seconds PV module.

Speaker Change: Little bit here in the quarter, but I also know that in Q1, you were expecting some some audit fees and some other onetime items. So just curious I mean your guidance and the fact that at the upper end.

Unheard of I mean, literally just slide the unit on the panel connect the wires and you have done so all those factors together.

Speaker Change: Positive adjusted EBITA would imply that opex. So we should think of it lower so just curious if you can give any color on that.

People get to experience.

The moat.

Buy into it and wanted to do more.

Speaker Change: And so in general our there's two levers to think about.

I can tell you that the amazing part for US also is that we see larger number of units being shipped two large EPC installers.

Speaker Change: In the <unk>.

Zvi Alon: I am exceptionally proud of what our team here at TIGO has accomplished. To give some geographical color on our results, we saw positive sequential sales growth in EMEA, the Americas, and APAC regions. Within the EMEA region, the recovery that began for us as a year ago has now broadened as we saw much stronger results from Italy. and the Netherlands. in addition to both. The Americas and Asia-Pacific regions also grew sequentially in the first quarter.

Speaker Change: Guidance and projections for the year as you build out your model.

Speaker Change: We are tracking at a at a high gross margin.

As they become much more.

And and.

Speaker Change: We're seeing that both in our.

Successful with those products.

Speaker Change: In our MLP business.

Got it. Thank you very much for that and then I guess for my last question and then I'll turn it over just curious I mean opex came down.

Speaker Change: As well as.

Speaker Change: <unk>.

Speaker Change: The.

Speaker Change: The lack of having a drag on the margin from.

Speaker Change: Our <unk> product line, which we did a large reserve for last quarter. So combining those the combination of both should lead to some gross margin uplift as we look later into the year. So.

A little bit here in the quarter, but I also know that in Q1, you were expecting some some audit fees and some other onetime items. So just curious I mean your guidance and the fact that at the upper end.

Positive adjusted EBITA would imply that opex. So we should think of it lower so just curious if you can give any color on that.

Speaker Change: 38, plus.

Speaker Change: I would put it more closer to <unk> and Opex.

Zvi Alon: I'm also excited about our recently introduced 22-amp TS4A series. now serving panels up to 725 watts and joining the TS4X family with the highest safety solution including the unique TIGO multi-factor rapid shutdown, demonstrating our commitment to stay ahead of the module performance scale.

Sure.

Speaker Change: Conservatively speaking between.

And so in general or.

Speaker Change: Between 11, and 12 or maybe mid point of 11 five.

Two levers to think about.

In the guidance and projections for the year as you build out your model.

Speaker Change: I think it's a fair range.

Speaker Change: We were <unk> 11 to last Q1, but we were off of 11 5 million in Q4, so there's a little bit of variability there.

We are tracking at a high gross margin.

Speaker Change: But when you model that out.

We're seeing that both in our.

Speaker Change: Youll come up with numbers for the adjusted EBITDAR that are in the range that we guided to.

In our MLP business.

As well as.

Speaker Change: Okay.

The.

Speaker Change: Alright, Thank you very much.

Zvi Alon: Given the current developments in Washington Many of you are likely interested in how the latest reciprocal tariff decisions may impact us. As you may know, the majority of TIGO's revenue occur outside of the United States. Based on the current reciprocal tariffs announced, we estimate that approximately 5% of our Q1 revenues will go to the U.S. would have been affected by the China reciprocal tariff of 145%. We also estimate that approximately 15% of our Q1 revenue would have been affected by 10% The rest of the world is reciprocal, Terry. We are currently working with our supply chain partners to mitigate the effects of these reciprocal tariffs where possible.

The lack of having a drag on the margin from.

Speaker Change: Thank you.

Speaker Change: Thank you.

Our <unk> product line, which we did a large reserve for last quarter. So combining those the combination of both should lead to some gross margin uplift as we look later into the year. So.

Speaker Change: Our next question comes from Filipe.

Speaker Change: And partners. Your line is now open.

Speaker Change: Phil.

38, plus.

I would put it more or less constant <unk> and opex.

Speaker Change: One moment for our next question.

Speaker Change: Okay.

Sure.

And certainly speaking between.

Speaker Change: Our next question comes from Sameer Joshi of H C. Wainwright. Your line is now open.

Between 11, and 12, maybe mid point 11, and a half.

I think it's a fair range.

Sameer Joshi: Hey, good afternoon.

Lebanon to last Q1, but we were off one 5% in Q4, so there's a little bit of variability there, but when you model that out.

Speaker Change: Thanks for taking my questions.

Sameer Joshi: That's on a good quarter.

Sameer Joshi: Thank you.

Sameer Joshi: Our prepared remark you mentioned, 5% of revenues would have been impacted about 145%.

You'll come up with numbers for the adjusted EBITDAR that are in the range that we guided to.

Sameer Joshi: 15%.

Okay.

Alright, Thank you very much.

Sameer Joshi: I don't know.

Thank you.

Sameer Joshi: Back of the envelope suggests this would be around one $8 million to $2 million.

Thank you.

Bill Roeschlein: And with that, I will turn it over to Bill. Bill. Thank you, Zvi.

Our next question comes from Filipe.

Sameer Joshi: Should we.

Sameer Joshi: Dollars.

Bill Roeschlein: Turning now to our financial results for the first quarter ended March 31st, 2025. Revenue for the first quarter of 2025 increased 92.2 percent to $18.8 million from $9.8 million in the prior year period. On a sequential basis, revenues increased 9.1 percent with improved results coming from many countries in the EMEA and APAC regions, including Italy, Chechya, the Netherlands, and the Philippines. By region, EMEA revenue was $11.5 million or 61.3 percent of total revenue.

And partners. Your line is now open.

Should we expect.

Sameer Joshi: That level of impact going forward and then how does that.

Sameer Joshi: Mesh with the sort of <unk>.

Phil.

Sameer Joshi: <unk> gross margin.

Sameer Joshi: <unk> recently.

One moment for our next question.

Sameer Joshi: So I would characterize it this way.

Okay.

Sameer Joshi: The U S represented.

Speaker Change: Our next question comes from Sameer Joshi of H C. Wainwright. Your line is now open.

Sameer Joshi: 22% of our revenues.

Sameer Joshi: And within that you've got 15% of that is our MLP products that are made outside of China and Thailand.

Sameer Joshi: Hey, good afternoon.

Speaker Change: Thanks for taking my questions.

Sameer Joshi: That's on a good quarter.

Sameer Joshi: Subject to the reciprocal.

Sameer Joshi: Thank you.

Bill Roeschlein: America's Revenues was $4.7 million or $2.5 million. and APAC revenue was $2.6 million or 13.6% of total revenue. My product family, for the first quarter of 2025, MLPE revenue represented $16 million of revenue, or 84.8% of total revenue. The OESS represented $2 million, or 10.7% of total revenues. And PredictPlus and licensing revenue represented $0.8 million, or 4.5% of total revenues during the quarter. Gross profit in the first quarter of 2025 was $7.2 million, or 38.1% of revenue, compared to a gross profit of $2.8 million, or 28.2% of revenue in the comparable year-ago period. Operating expenses for the first quarter declined 5.9% to $11.2 million compared to $11.9 million in the prior year period.

Sameer Joshi: Our prepared remark you mentioned 5% of revenues.

Sameer Joshi: Tariffs are and we will see what happens after the 90 days.

Sameer Joshi: It has been impacted about 125%.

As with 90 day review.

Sameer Joshi: And then that leaves, 5% that's subject to the China tariffs, but.

Sameer Joshi: 15%.

And I don't know.

Sameer Joshi: Other backup envelope. So this would be around one $8 million to $2 million.

Sameer Joshi: But that includes both in Burger in batteries and we are working on our supply chain and have the opportunity to move some of that specifically in the inverter side outside of China. So that was negate most much of that 5%.

Sameer Joshi: Should we.

Speaker Change: Should we expect.

Speaker Change: That level of impact going forward and then how does that.

Sameer Joshi: And then the rest of it is batteries, which are sourced in China, but we have a large inventory positions in the U S already and so that also in the gates.

Speaker Change: Mesh with the sort of.

Gross margin that you see.

Speaker Change: <unk> recently.

Speaker Change: So I would characterize it this way.

Sameer Joshi: The tariffs on that so combining all of that we don't see a substantial impact of the tariffs on our business.

Speaker Change: The U S represented.

Speaker Change: 22% of our revenues.

Speaker Change: And within that you've got 15% of that that is our MLP products that are made outside of China and Thailand.

Sameer Joshi: At least through the second quarter, and we're going to leave it.

Sameer Joshi: To quarter because.

Sameer Joshi: The world seems to change so fast on this front.

And are subject to the reciprocal.

Sameer Joshi: Yes.

Speaker Change: Tariffs.

Speaker Change: We'll see what happens after the 90 days.

Sameer Joshi: Third my part two of the question, which was the inventory.

Bill Roeschlein: The decline was driven primarily by our previously announced cost-cutting efforts. Operating loss for the first quarter decreased by 56.2% to $4 million compared to $9.1 million in the prior year period. Gap net loss for the first quarter was $7 million compared to a net loss of $11.5 million in the prior year period. Adjusted EBITDA loss in the first quarter decreased 67.4% to $2 million compared to an adjusted EBITDA loss of $6.3 million in the prior year period. These results reflect progress towards profitability on a non-gap basis as previously announced.

Speaker Change: As with 90 day review.

Sameer Joshi: How much of it will support the second quarter. So it seems to have enough inventory that is deepwater.

Speaker Change: And then that leaves, 5% that's subject to the China tariffs, but.

Speaker Change: But that includes both inverter in batteries and we are working on our supply chain and have the opportunity to move some of that specifically on the inverter side outside of China. So that was negate must much of that 5%.

Sameer Joshi: But then support business in the second quarter.

Correct.

Sameer Joshi: And then the.

The Brooklyn court of grid.

Sameer Joshi: <unk> product offering.

Sameer Joshi: The solar package that were offering.

Speaker Change: And then the rest of it is batteries, which are sourced in China, but we have a large inventory position in the U S already and so that also in the gates.

Sameer Joshi:

Sameer Joshi: Like where does the.

Sameer Joshi: This demand for off grid.

Sameer Joshi: That.

Sameer Joshi: Seeing from like.

Speaker Change: The tariffs on that so combining all of that we don't see a substantial impact of the tariffs on our business.

Sameer Joshi: <unk> businesses or.

Bill Roeschlein: As a reminder, adjusted EBITDA loss is a non-GET measure that represents net loss as adjusted for interest and other expenses, income tax expense, depreciation, amortization, stock-based compensation, and M&A transaction expenses.

Sameer Joshi: This is also mentioned residential and so just was curious.

Sameer Joshi: How large is that demand and from where are you seeing that.

Speaker Change: At least through the second quarter, and we're going to leave it.

Sameer Joshi: Don.

Sameer Joshi: There is.

Speaker Change: Enter to quarter because.

Speaker Change: Our substantial regional reached an extra a couple who like to be <unk> and Dell in the <unk>.

Speaker Change: The world seems to change so fast on this front.

Speaker Change: Yes.

Bill Roeschlein: Primary shares outstanding were $61.9 million for the first quarter of 2025. Turning now to the balance sheet, the accounts receivable net increased this quarter to $10.4 million compared to $8 million last quarter and increased from $6.3 million in the year ago comparable period. Inventories net decreased by $3.1 million or 14.1% to $18.9 million compared to $22 million last quarter and $55.8 million in the year-ago comparable period. Cash, cash equivalents, and short and long-term markable securities totaled $20.3 million at March 31, 2025. On a sequential basis, cash increased by $0.4 million as we continue to make progress on reducing our inventory and working capital.

Speaker Change: Third my part two of the question, which was the inventory.

Sameer Joshi: Midwest and.

Speaker Change: How much of it will support.

Sameer Joshi: And some south.

Speaker Change: Second quarter. So it seems to have enough inventory that was pre tariff.

Sameer Joshi: And that's what we were aiming at.

Sameer Joshi: And we started seeing some fairly good success. So we packaged it solutions for that one specific market.

That supports the business in the second quarter.

Speaker Change: Correct.

Speaker Change: And then.

Sameer Joshi: If you check who else are providing solutions, which are also agreed.

The Brooklyn court of grid.

Speaker Change: Product offering that youre sort of package that were offering.

Sameer Joshi: It is becoming an increased number of suppliers.

Speaker Change:

Sameer Joshi: Suppliers. So we will show we are not going to stay the only one and we are not right now but for us. It's a growing segment that we have not touched before.

Speaker Change: Like where is this demand for off grid.

Speaker Change: But you are seeing from like.

Speaker Change: Our businesses or.

Speaker Change: This is also mentioned residential and so just was curious how large is that demand and from where are you seeing at the moment.

Sameer Joshi: Understood.

Sameer Joshi: And then just last one.

Sameer Joshi: The second quarter guidance.

Sameer Joshi: Implies that your second half revenues are likely to be $46 million to $59 million at the midpoint.

Speaker Change: Yeah.

Bill Roeschlein: Turning now to our Financial Outlook for the second quarter of 2025 and full year of 2025. As a reminder, TIGO provides quarterly guidance for revenue as well as adjusted EBITDA, as we believe these metrics to be key indicators for the overall performance of our business. For the second quarter of 2025, we expect revenues and adjusted EBITDA to be in the following range. Revenues in the second quarter ended June 30, 2025, to range between $21 and $23 million. We expect adjusted EBITDA to range between negative $1.5 million and positive $500,000.

Speaker Change: There is.

Speaker Change: A substantial regional reached an extra a couple who like to be of greed.

Sameer Joshi: Two quick guidance.

Speaker Change: And they are in the.

Sameer Joshi: Do you have visibility and how much confidence do you have in that outlook.

Speaker Change: Midwest and and.

Speaker Change: And some south.

Speaker Change: And that's what we were aiming at.

Sameer Joshi: <unk> second half.

Speaker Change: And we started seeing some fairly good success there.

Sameer Joshi: Sure.

Sameer Joshi: I can tell you that.

Speaker Change: Packaged solutions for that one specific market.

Sameer Joshi: But we don't have specific orders going out more than a couple of quarters may be in some very small cases, a little bit more but the majority of it really for the current quarter in the next quarter.

Speaker Change: If you check who else are providing solutions, which are also agreed.

Speaker Change: It is becoming an increased number of <unk>.

Bill Roeschlein: For the full year of 2025, we are reiterating our previous guidance of revenues of between $85 and $100 million.

Suppliers. So we will assure we are not going to stay the only one and we are not right now but for us. It's a growing segment that we have not touched before.

Sameer Joshi: But on the <unk>.

Sameer Joshi: Other hand, we know how and we do talk to.

Sameer Joshi: Our distributors and we know how the markets behave and what their expectations.

Zvi Alon: That completes my summary, and I'd like to now turn the call back over to Zvi for final remarks. We look ahead. I'm happy to say that even against the backdrop of the economic uncertainty, we believe that our track record of five consecutive quarters with top-line growth will continue for the remainder of 2025 as demand for our solutions continues to return.

Speaker Change: Understood.

Sameer Joshi: And so we factor it in addition to obviously or what.

Speaker Change: And then just last one.

Speaker Change: The second quarter guidance.

Sameer Joshi: We know about the market and we have been so far.

Speaker Change: Implies that your second half revenues are likely to be $46 million to $59 million.

Sameer Joshi: Accurate for the last five six quarters result projections.

Sameer Joshi: So we're fairly confident I can tell you that our backlog increasingly we don't shell quite those numbers, but increasingly over the last two or three quarters SKU for one quarter to the other.

Speaker Change: At the midpoint of.

Speaker Change: <unk> guidance.

Speaker Change: Do you have visibility and how much confidence do you have in that outlook.

Speaker Change: <unk> second half.

Zvi Alon: We firmly believe in the God's perspective. for our business and look forward to providing additional updates in the coming quarter.

Speaker Change: Sure.

Sameer Joshi: And as we got into the current quarter, we felt much more confident.

Speaker Change: I can tell you that.

Speaker Change: But we don't have specific orders going out more than a couple of quarters may be in some very small cases, a little bit more but majority of it really for the current quarter in the next quarter.

Even increasing the number of the guidance.

Sameer Joshi: Understood.

Operator: With that, Operator, please open the call for Q&A. Thank you. At this time, we would like to conduct the question and answer session. To ask a question, you will need to press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster.

That sounds good thanks, a lot for taking my questions.

Sameer Joshi: Most of them.

Sameer Joshi: Thank you.

Speaker Change: But on the.

Sameer Joshi: As a reminder.

Speaker Change: Other hand, we know how and we do talk to.

Sameer Joshi: I'll ask a question. Please press star one one on your telephone.

Speaker Change: Our distributors and we know how the markets behave and what their expectations are.

Speaker Change: Our next question comes from Philip Shen of Roth Capital Partners. Your line is now open.

Speaker Change: And so we factor it in addition to obviously.

Hey, guys. Thanks for taking my questions are we went through the 10-Q quickly we saw that there is the going concern language.

Speaker Change: We know about the market and we have been so far.

Speaker Change: Accurate for the last five six quarters result projections.

Eric Stine: From Eric Clark Stine of Craig Houghton Capital Group, your line is now open. Hi, this is Zvi. Hi, Bill. Here. Hello. So curious. I mean, obviously a nice recovery you're seeing in in actually across all your markets.

Speaker Change: So we are fairly confident I can tell you that our backlog increasingly we don't shell quite those numbers, but increasingly over the last two or three quarters SKU for one quarter to the other.

Speaker Change: Do you have the $50 million convert.

Speaker Change: <unk> January one or sometime in January of 2026.

Speaker Change: Can you talk to us about.

Speaker Change: The situation there.

Speaker Change: How do you expect to manage.

Zvi Alon: But when you think about this, I mean, how do you break this down between just improving conditions with your current, you know, distributors and direct sales, versus market share gains? Because clearly, this is a little bit of both would love your thoughts on how that breaks down between Outstanding question, Eric. Thanks for asking it. I will share that we continue to see current existing distributors, which are very strong, increasing their footprint with us and becoming much more bullish on the market requirements. Similarly, our efforts with going directly to at least promoting the products with system integrators and large EPCs is paying very nice dividends.

Speaker Change: And as we got into the current quarter, we felt much more confident.

Speaker Change:

Speaker Change: Good.

Speaker Change: The $50 million due.

Speaker Change: How flexible would you expect.

Speaker Change: Even increasing the number of the guidance.

Speaker Change: Your convert counterparty.

Speaker Change: <unk> energy to be yes.

Speaker Change: Understood.

Speaker Change: That sounds good thanks, a lot for taking my questions most of them.

Speaker Change: Yes.

Speaker Change: Kind of are the counterparty is.

Speaker Change: <unk> is being very flexible and cooperative and as you know.

Speaker Change: Thank you.

Speaker Change: As a reminder.

Speaker Change: To ask a question. Please press star one one on your telephone.

Speaker Change: Exporter of Tiger and that being said we are.

Speaker Change: Working on a on a refinance.

Speaker Change: Our next question comes from Philip Shen of Roth Capital Partners. Your line is now open.

Speaker Change: And I'm sure you can appreciate.

Speaker Change: When we have something announced we'll announce it but rest assured we are diligently working.

Philip Shen: Hey, guys. Thanks for taking my questions.

Speaker Change: Went through the 10-Q quickly we saw that there is the going concern language.

Speaker Change: Two to address the maturity on that.

Bill Bill: Okay. Thanks Bill.

Philip Shen: You have the $50 million convert.

Speaker Change: From a cash standpoint are you guys.

Philip Shen: <unk> January one or sometime in January of 2026.

Bill Bill: Hum.

Bill Bill: An annual guide and so if you hit the midpoint of that guide how much.

Philip Shen: Can you talk to us about.

Philip Shen: The situation there.

Philip Shen: How do you expect to manage.

Bill Bill: Free cash flow generation do you think you can have.

Zvi Alon: And I can tell you that the majority, I would say, of our growth is coming from an increased market share, we believe, even though it's the same exact distributors. And that's what we hear from them. At least, I would not mention any names, but two or three of them mentioned specifically that we have increased the footprint within their portfolio substantially above any other. That's good color.

Philip Shen:

Philip Shen: The $50 million due.

Bill Bill: So.

Philip Shen: How flexible would you expect.

Bill Bill: Go forward basis, we're looking at.

Philip Shen: Your convert counterparty.

EBITDA positive.

Philip Shen: <unk> energy to be thanks.

Bill Bill: It's not in the Q2 guidance for three and four we would expect that based on the annual guide.

Philip Shen: Our.

Philip Shen: Are the counterparty is a.

Philip Shen: It's being very flexible and cooperative in.

Bill Bill: The.

Philip Shen: As you know.

Bill Bill: The overall cash position is I would say probably going to be flattish to slightly up and we are in a replenishment mode on some of the inventory, especially on MLP.

Sixth quarter of Tiger and that being said we are.

Philip Shen: Working on on a refinance.

Philip Shen: And I'm sure you can appreciate.

Philip Shen: When we have something announced we'll announce it but rest assured we are diligently working.

Bill Bill: And so theres going to be some consumption there.

Zvi Alon: I mean, do you attribute that to just a broader product offering, the fact that this can be used residential, C&I, utility scale? You know, is it price? Is it kind of all of the above? So I can tell you that I'll touch the price first. We have not changed price at all, and we have been consistent on that front. We introduced the TS4X family at a higher price, and we see a nice increase for those products for a different market, which is accepting it so far. But as far as the TS4A product, price was not an issue.

Bill Bill: Some of the some of the cash flow generation can be used for working capital for that purpose.

Two to address the maturity on that.

Bill: Okay. Thanks Bill.

Bill Bill: We're thinking of cash sort of in a.

Bill: From a cash standpoint are you guys.

Bill Bill: A bit rain range bound and this lower twenties level.

Bill: Have an annual guide and so if you hit the midpoint of that guide how much.

Bill Bill: Okay, great. Thanks.

Bill Bill: And then.

Bill Bill: As it relates to Europe inter solar is about to kick off I think tomorrow.

Bill: Free cash flow generation do you think you can have.

Bill: So.

Bill: Go forward basis, we're looking at.

Speaker Change: Are you guys. There I know Europe is a big part of your business.

Bill: EBITDA positive.

Bill: It's not in the Q2 guidance for three and four we would expect that based on the annual guide.

Bill Bill: So what are you hoping to accomplish.

Speaker Change: You think that's true thanks.

Speaker Change: We are at full swing we have <unk>.

Bill: The.

Bill: The overall cash position is I would say probably going to be flattish to slightly up and we are in a replenishment mode on some of the inventory, especially on MLP.

Speaker Change: Already we have a very nice boost set and we actually have a very.

Zvi Alon: Now, I can tell you that many factors are helping us gain market share. One, the number of SKUs is very small. We have a single optimizer that covers basically the whole market. Not only that, it's the highest powered rating, which is the current shipping version is 700 watts or 800 watts, and we just announced the 725 watts, and working for essentially all three market segments. Number three, I would say we are, I believe we are the only company with a backward compatibility of the current shipping products to products we shipped seven, eight, nine years ago, exactly identical.

Speaker Change: Interesting and busy schedule every OLED from.

Speaker Change: Partners.

Bill: So theres going to be some consumption there.

Speaker Change: <unk>.

Speaker Change: As well as customers.

Bill: Some of the some of the cash flow generation can be used for working capital for that purpose.

Speaker Change: And.

Speaker Change: It's.

Speaker Change: Interesting, but we are all pretty much booked we didn't have much lift.

Bill: We're thinking of cash sort of in the.

Bill: It rained range bound and this lower twenties level.

Speaker Change: To allocate so we're very happy with what's going on right now.

Speaker Change: Okay, great. Thanks.

Speaker Change: Alright, Thanks, and then in terms of distributors.

Bill: And then.

Speaker Change: As it relates to Europe.

Speaker Change: <unk> been hearing that.

Speaker Change: <unk> is about to kick off I think tomorrow.

Speaker Change: Some of the Pan European larger.

Speaker Change:

Speaker Change: <unk> might be having issues with.

Speaker Change: Are you guys there.

Speaker Change: Europe is a big part of your business.

Speaker Change: A trend where.

Zvi Alon: If you have any failure with an old product, which they sometimes do happen, you don't need to go and get the same exact part number. You can just buy any one off the shelf and replace it or get an RMA from us and you'll get a new product to replace it. Also, the fact that our product works with pretty much any inverter out there is also a major contributor.

Speaker Change: So what are you hoping to accomplish.

Speaker Change: More of the local distributors are developing.

Speaker Change: Thank you.

Speaker Change: Greater influence with the installer base are you seeing something similar.

Speaker Change: Thanks.

Speaker Change: We are at full swing.

Speaker Change: And so how much you adjust your your strategy to sell into Europe I don't know if this plays a factor at all but what are your thoughts on this dynamic.

Speaker Change: <unk>, we have a very nice boost set.

Speaker Change: And we actually have a very.

Speaker Change: Interesting and busy schedule every OLED from.

Speaker Change: So.

Speaker Change: Partners.

Speaker Change: What we have seen two phenomenon us.

Speaker Change: <unk>.

Speaker Change: As well as customers.

Speaker Change: First of all Big picture the total level of distributors, we have did not shrink much even resolve those guys that went out of business, we actually replenish seldom firm.

Speaker Change: And.

Zvi Alon: So all in all, oh, I would mention one more thing. Our installation time of the MLPE products is superb. It's about 10 seconds per PV module. It's unheard of. I mean, literally just slide the unit on the panel, connect the wires and you're done. So all those factors together, the more people get to experience, the more they I can tell you that the amazing part for us also is that we see a larger number of fields being shipped to large EPC installers as they become much more aware and successful with those products.

Speaker Change: It's.

Speaker Change: Interesting, but we're all pretty much booked we didn't have much lift.

Speaker Change: To allocate so we're very happy with what's going on right now.

Speaker Change: Fairly quickly with others and some came back almost instinctually.

Pete: Thanks, Pete and then in terms of distributors.

Speaker Change: So we are very happy for them to be able to actually so but now to the question itself, we do see a phenomenon, which.

Speaker Change: <unk> been hearing that.

Pete: Some of the Pan European larger.

Speaker Change: Distributors might be having issues with.

Speaker Change: The very large distributor.

Pete: A trend where.

Speaker Change: Starting to sell to some local distribution.

Pete: More of the local distributors are developing.

Pete: Greater influence with an installer base are you seeing something similar.

Speaker Change: And so we have seen that happening in a few places.

Pete: And so you know how much you adjust your.

Speaker Change: We are not necessarily encouraging it or discouraging it but it helps us keep the footprint, which is much wider.

Pete: Your strategy to sell into Europe, I don't know if this plays a factor at all but what are your thoughts on this dynamic.

Speaker Change: For the smaller original ones, they don't necessarily able to hit the the same discount level as the large ones.

Pete: So.

Pete: What we have seen two phenomenon us.

Zvi Alon: Got it. Thank you very much for that.

Pete: First of all Big picture the total level of distributors, we have did not shrink much even resolve those guys that went out of business, we actually replenish sell them fairly.

Eric Stine: And then I guess for my last question, then I'll turn it over. Just curious, I mean, OPEX came down a little bit here in the quarter, but I also know that in Q1, you were expecting some audit fees and some other one-time items. So just curious, I mean, your guidance and the fact that at the upper end, you know, positive adjusted EBITDA would imply that OPEX, we should think of it lower. So just curious if you can give any color on that.

Speaker Change: So that mechanism, we have in place, which will rigidly following.

Speaker Change: Is working for us and it sales pretty much all of them.

Pete: Fairly quickly with others and some came back for almost instinctually.

Speaker Change: And so we don't we don't think we need to make any changes right now.

Speaker Change: Yes.

Pete: So we are very happy for them to be able to actually sell but now to the question itself, we do see a phenomenon, which.

Speaker Change: Got it and so when you see the large distributors selling.

Speaker Change: Product to the smaller ones are local ones.

Speaker Change: What kind of products that we're talking about modules Inverters MLP.

Pete: The very large distributors.

Pete: <unk> to sell to some local distribution.

Bill Roeschlein: So, in general, there's two levers to think about in the guidance and projections for the year as you build out your model. We are tracking at a high gross margin. We're seeing that both in our MLP business as well as the lack of having a drag on the margin from our GOESS product line, which we did a large reserve for last quarter. So combining the combination of both should lead to some gross margin uplift as we look later into the year, so 38-plus, I would put it closer to 40. And OPEX would, you know, considerably speaking, between 11 and 12, or maybe mid-point 11.5 is, I think, the fair range.

Speaker Change: Your products or is it.

Speaker Change: Morris focused on storage or some other category. The majority. The majority we see is in the line of Inverters MLP and some PV modules.

Pete: And so we've seen that happening in a few places.

Pete: We are not necessarily encouraging it or discouraging it.

It helps us keep the footprint, which is much wider and for the smaller original ones. They don't necessarily able to hit the the same discount level as the large ones.

Speaker Change: On the battery side and DSS.

Speaker Change: Not much.

Speaker Change: Not much at all I would say.

Got it thanks.

Speaker Change: Most welcome.

Pete: So that mechanism, we have in place, which will rigidly following.

Speaker Change: In terms of maybe the last one here for me.

Speaker Change: The.

Speaker Change: <unk>.

Pete: Is working for us and it sales pretty much all of them.

Speaker Change: China tariffs in the U S.

Pete: So we don't we don't think we need to make any changes right now.

Speaker Change: 145%.

Speaker Change: The biggest impact is on <unk>.

Yes.

Speaker Change: Got it and so when you see the large distributors selling.

Speaker Change: <unk> for batteries coming into the country and wanted to just check and maybe you already addressed this sorry, if I missed this but what's the impact for <unk> for you guys do you already have a lot of inventory in country in the U S.

Pete: Product to the smaller ones are our local ones.

Speaker Change: What kind of products are we talking about modules Inverters MLP youre your products or is it.

Speaker Change: Morris focused on storage or some other category. The majority. The majority we see is in the line of Inverters MLP and some PV modules.

Speaker Change: That's less of an issue.

Speaker Change: Or.

Speaker Change: If it is a bit of an issue or what are you guys doing to mitigate.

Bill Roeschlein: You know, we were 11.2 last Q1, but we were also 11.5 in Q4, so there's a little bit of variability there. But when you model that out, you'll come up with numbers for the adjusted EBITDA that are in the range that we guided to.

Speaker Change: Okay.

Speaker Change: For the foreseeable future I would say the next few quarters, we're in good shape with the inventory we have.

Speaker Change: On the battery side and <unk> not.

Speaker Change: Not much.

Speaker Change: And.

Speaker Change: Not much at all I would say.

Speaker Change: And we are getting ready for the next generation, which is addressing the sources.

Eric Stine: Okay.

Speaker Change: Got it thanks and then.

Eric Stine: All right, thank you very much.

Speaker Change: Most welcome.

Speaker Change: In terms of maybe the last one here for me.

Operator: Thank you.

Speaker Change: Of the suppliers.

Speaker Change: The.

Speaker Change: So we would not be exposed to to China as much but as you know China controls a very large [laughter].

Philip Shen: Our next question comes from Philip. Shen, partners, your line is now open. Phil? One moment for our next question.

Speaker Change: China tariff in the U S.

Speaker Change:

Speaker Change: 145%.

Speaker Change: The biggest impact is on <unk>.

Speaker Change: Well in the market and so I'm not sure we can avoid it completely but we have other sources.

Speaker Change: <unk> for batteries coming into the country and wanted to just check in and maybe you already addressed this sorry, if I missed this but what's the impact for for you guys. Do you already have a lot of inventory in country in the U S. So thats less of an issue.

Speaker Change: So for now you guys have some installation maybe a few quarters.

Speaker Change: That's a fair amount of time.

Speaker Change: So, but as you burn through that inventory you do need to start now or.

Sameer Joshi: Our next question comes to us from Sameer Joshi of H.C. Wainwright. Your line is now open. Hey, good afternoon, Zvi. Thanks for taking my questions and congrats on a good quarter. Thank you. I see in your prepared remark you mentioned 5% of revenues would have been impacted by 145% tariff and 15% by 10% tariff. The back of the envelope suggests this would be around 1.8 to 2 million dollars. Should we expect that level of impact going forward and then how does that mesh with the sort of increased gross margin that you have seen?

Speaker Change: Or.

Soon and diversifying your cell pack geographic.

Speaker Change: If it is a bit of an issue or what are you guys doing to mitigate.

Speaker Change: And so the world is trying to do this release most of the U S and so what countries are you trying to go to is it Korea or Japan.

Speaker Change: Okay. Thanks.

Speaker Change: For the foreseeable future I would say the next few quarters. We are in good shape with the inventory we have.

Speaker Change: And.

Speaker Change: Other countries.

Speaker Change: It's those two that you mentioned exactly.

Speaker Change: And we're getting ready for the next generation, which is addressing the sources.

Speaker Change: And also.

Speaker Change: Yes, it seems like also.

Speaker Change: Of the suppliers.

Speaker Change: The Chinese guys.

Speaker Change: And so we would not be exposed to China as much but as you know China controls a very large [laughter].

Speaker Change: <unk> also looking for other sales from other places so we.

Speaker Change: We don't know exactly how it's going to all work out, but Korea and Japan are the two main areas for us.

Well in the market and so I am not sure we can avoid it completely but we have other sources.

Speaker Change: Okay, Great best of luck in that transition and with the rest of the year.

Speaker Change: So for now you guys have some installation maybe a few quarters.

Speaker Change: Thank you and I'll pass it on.

Bill Roeschlein: So I would characterize it this way. The US represented about 22% of our revenues. And within that, you've got 15% of that that is our MLPE products that are made outside of China and Thailand that are subject to the reciprocal tariff. And we'll see what happens after the 90-day review. And then that leaves 5% that's subject to the China tariffs. But that includes both inverter and batteries. And we are working on our supply chain and have the opportunity to move some of that, specifically the inverter side, outside of China. So that would negate much of that 5%.

Speaker Change: Thank you much. Thanks, Phil are you in Germany.

Speaker Change: That's a fair amount of time.

So, but as you burn through that inventory you do need to start now or.

Speaker Change: Not this time around given the earnings season.

Speaker Change: Okay no problem.

Speaker Change: Soon and diversifying your cell pack geographic.

Speaker Change: Thanks Mhm solid.

Speaker Change: And so the world is trying to do this release most of the U S and so what countries are you trying to go to is it Korea or Japan.

Speaker Change: One moment for our next question.

Speaker Change: Our next.

Good question assets in at Sidoti <unk> Company. Your line is now open.

Speaker Change: Congratulations on the quarter gentlemen.

Speaker Change: Other countries.

To that you mentioned exactly.

Speaker Change: Thank you.

Speaker Change: Just turning to the demand side, you've reported increased sequential growth in all regions, but just working out just some arithmetic. It looks like EMEA was a little bit stronger in growth is that accurate.

Speaker Change: And also.

Speaker Change: Yes, it seems like also.

Speaker Change: The Chinese guys.

Speaker Change: I actually also looking for other sales from other places so we.

Speaker Change: Yes.

Speaker Change: We don't know exactly how it's going to all work out, but Korea and Japan are the two main areas for us.

<unk>.

Speaker Change: <unk>.

Speaker Change: Most growth from APAC region in the quarter, but they represent the smallest of the three.

Bill Roeschlein: And then the rest of it is batteries, which are sourced in China. But we have a large inventory position in the US already. And so that also negates the tariffs on that. So combining all of that, we don't see a substantial impact of the tariffs on our business, at least for the second quarter.

Speaker Change: Okay, Great best of luck in that transition and with the rest of the year.

Speaker Change: <unk> for US followed by EMEA and Americas.

Speaker Change: Yeah.

Speaker Change: Thank you and I'll pass it on.

Speaker Change: Can you release any growth figures for the Americas.

Sameer Joshi: Thanks, So much thanks, Phil are you in Germany.

Speaker Change: Not this time around given the earnings season.

Speaker Change: It's.

Speaker Change: Now, it's growing a little bit more than what the market estimates are I mean, it's certainly.

Speaker Change: Okay no problem.

Speaker Change: Thanks Mhm.

Sameer Joshi: We're going to leave it quarter to quarter because the world seems to change so fast on this front. Yeah, no, you answered my part two of the question, which was inventory, how much of it will support the second quarter. So it seems you have enough inventory that is pre-tariff that can support your business in the second quarter. Correct.

One moment for our next question.

Speaker Change: Okay.

Speaker Change: Low to mid single digits, I mean is that helps.

Speaker Change: Okay.

My question got the thin at Sidoti <unk> Company. Your line is now open.

Speaker Change: No it's not it's certainly not the.

We did 9% it certainly it didn't carry the day for the 9%.

Speaker Change: Congratulations on the quarter gentlemen.

Speaker Change: Thank you.

Speaker Change: Just turning to the demand side, you've reported increased sequential growth in all regions, but just working out just some arithmetic. It looks like EMEA was a little bit stronger in growth is that accurate.

Speaker Change: Got it.

Speaker Change: Alright, well, thank you for the information and good luck in the coming quarter. Thank you so much.

Speaker Change: So much.

Speaker Change: Thank you.

Sameer Joshi: And then the April 24th off-grid product offering that you are, the solar package that you're offering. Is there, like, where is this demand for off-grid that you are seeing from? Like, is it mainly businesses or, because you, the press has also mentioned residential, and so just was curious, how large is that demand and from where are you seeing that? There is a substantial region, actually a couple, who like to be off-grid, and they're in the... midwest and some south and that's what we were aiming at and we started seeing some fairly good success so we have packaged that solution for that one specific market.

Speaker Change: At this time. This concludes our question and answer session I would now like to turn the call back over to Mr. <unk> for his closing remarks.

Speaker Change: Yes.

Speaker Change: Pat.

Our most growth from APAC region in the quarter, but they represent the smallest of the three.

Speaker Change: Regions for US followed by EMEA and Americas.

Speaker Change: Thanks again, everyone for joining us today, I, especially want to thank our dedicated employees for their ongoing contribution as well as our customers and partners for their continued hard work.

Speaker Change: Yeah.

Speaker Change: Can you release any growth figures for the Americas.

Speaker Change: It's.

Speaker Change: Now, it's growing a little bit more than what the market estimates army certainly.

Speaker Change: I also want to thank our investors for their continued support.

Speaker Change: Operator.

Speaker Change: Yes.

Speaker Change: Low to mid single digits, I mean, if that helps.

Speaker Change: Thank you.

Speaker Change: Thank you for your participation in today's conference. This does conclude the program you may now disconnect.

Speaker Change: No it's not it's certainly not the.

Speaker Change: We did 9% it certainly didn't carry the day for the 9%.

Speaker Change: Got it.

Speaker Change: Alright, well, thank you for the information and good luck in the coming quarter.

Speaker Change: So much.

Speaker Change: Thank you.

Zvi Alon: If you check who else are providing solutions which are also off-grid, it is becoming an increased number of suppliers. So we are sure we are not going to stay the only one, and we are not right now, but for us it's a growing segment that we've not touched before.

Speaker Change: At this time or could this be.

Speaker Change: Includes a question and answer session I would now like to turn the call back over to Mr. <unk> for his closing remarks.

Speaker Change: Thanks again, everyone for joining us today.

We want to thank our dedicated employees for their ongoing contribution as well as our customers and partners for their continued hard work.

Sameer Joshi: And then just last one, the second quarter guidance implies that your second half revenues are likely to be $46 to $59 million, just at the midpoint of 2Q guidance. Do you have visibility and how much confidence do you have in that outlook of a strong second I can tell you that we don't have specific orders going out more than a couple of quarters, maybe in some very small cases a little bit more, but the majority are really for the current quarter and the next quarter. But, on the other hand, we know how, and we do talk to our distributors, and we know how the markets behave and what their expectations are.

Speaker Change: I also want to thank our investors for their continued support.

Speaker Change: Operator.

Speaker Change: Yeah.

Speaker Change: Thank you.

Speaker Change: Thank you for your participation in today's conference. This does conclude the program and you may now disconnect.

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Okay.

Speaker Change: [music].

Zvi Alon: And so we factor it in, in addition to, obviously, what we know about the market, and we have been so far accurate for the last five, six quarters with our projections. So we are fairly confident. I can tell you that our backlog increasingly, we don't share quite those numbers, but increasingly over the last two or three quarters grew from one quarter to the other. And as we got into the current quarter, we felt much more confident on even increasing the numbers, the guidance.

Speaker Change: Yes.

Speaker Change: [music].

Speaker Change: Okay.

Operator: That sounds good. Thanks a lot for taking the time. Mosto Thank you. As a reminder, to ask a question, please press star 11 on your telephone.

Philip Shen: Our next question comes from Philip Shen of Roth Capital Partners. Your line is now open. Hey guys, thanks for taking my questions. We went through the 10-Q quickly. We saw that there's the going concern language. You have the $50 million convert. to January 1 or sometime in January of 2026.

Bill Roeschlein: Can you talk to us about the situation there? How do you expect to manage the... your convert counterparty, L1M. Yeah, our counterparty is being very flexible and cooperative and is, you know, a big supporter of Tigo. And that being said, we are working on a refinance. And I'm sure you can appreciate, you know, when we have something announced, we'll announce it. But rest assured, we are diligently working to, you know, to address the maturity on that.

Philip Shen: Okay, thanks.

Bill Roeschlein: From a cash standpoint, you guys... have an annual guide, and so if you hit the midpoint of that guide, how much... How much cash flow generation do you think you can have? So, you know, on a go-forward basis, we're looking at EBITDA positive, if not in Q2's guide, then for Q3 and Q4, we would expect that based on the annual guide. The overall cash position is, I would say, probably going to be flattish to slightly up. We are in a replenishment mode on some of the inventory, especially on MLPE, and so there's going to be some consumption there that some of the cash flow generation is going to be used for working capital for that purpose.

Speaker Change: [music].

Bill Roeschlein: So, we're thinking of cash sort of in the, a bit range-bound in this lower 20s level. Okay, great.

Philip Shen: And then, as it relates to Europe, inter-solar is about to kick off. tomorrow. Thank you. Are you guys there?

Zvi Alon: I know Europe is a big part of your business, and so what are you hoping to accomplish, you think, at this point? We are at full swing. We have our team ready. We have a very nice boost set. And we actually have a very interesting and busy schedule already from partners, distributors, distributors. as well as customers and it's interesting but we are all pretty much booked, we didn't have much left. to allocate. So we're very happy with what's going on right now.

Philip Shen: Thanks Zvi.

Philip Shen: And then in terms of distributors, I've been hearing that Some of the pan-European, larger distributors might be having issues with... a trend where more of the local distributors are developing a greater influence with the installer base. Are you seeing something similar?

Zvi Alon: And so, how might you adjust your strategy to sell into Europe? I don't know if this plays a factor at all, but what are your thoughts on this dynamic?

Zvi Alon: So what we we have seen two phenomena First of all big picture the total number of distributors we have Did not shrink much even with all those guys that went out of business. We actually replenished some of them fairly quickly with others and some came back from almost Instinction so we were very happy for them to be able to actually survive now to the question itself We do see a phenomena in which The very large distributors are starting to sell to some local distributors. And so we have seen that happening in a few places. We are not necessarily encouraging it or discouraging it, but it helps us keep a footprint which is much wider.

Speaker Change: Sure.

Speaker Change: [music].

Zvi Alon: And for the smaller regional ones, they don't necessarily are able to hit the same discount level as the large ones. So that mechanism we have in place, which we are rigidly following, is working for us and it serves pretty much all of them.

Zvi Alon: And so we don't think we need to make any changes right now. Yeah. Got it. And so when you see the large distributors selling. products to the smaller ones or local ones, what kind of products are we talking about? Modules, inverters, MLPE, your products, or is it more focused on storage or some other category? No, the majority we see is in the line of inverters, MLPE, and some PV modules. On the battery side and ESS Not much. Not much at all, I would say. Got it. Thanks, Siddiq. You're most welcome.

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Yes.

[music].

Zvi Alon: In terms of, maybe the last one here for me, the China tariff in the U.S. I wanted to check in, maybe you already addressed this, sorry if I missed this, but what's the impact for you guys, do you already have a lot of inventory in country in the U.S. so that that's less of an issue? Or if it is a bit of an issue, what are you guys doing to mitigate that? Okay, so for the foreseeable future, I would say the next few quarters, we're in good shape with the inventory we have. And we are getting ready for the next generation, which is addressing the sources of the suppliers.

Speaker Change: Yes.

Speaker Change: [music].

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Okay.

Speaker Change: [music].

Zvi Alon: And so we would not be exposed to China as much. But as you know, China controls a very large part in the market. And so I'm not sure we can avoid it completely, but we have other sources. Good. So for now, you guys have some insulation, maybe a few quarters, and that's a fair amount of time. But as you burn through that inventory, you do need to start now or soon in diversifying your cell pack geographic. And so, you know, the world is trying to do this, or at least most of the U.S., and so what countries are you trying to go to?

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: [music].

Zvi Alon: Is it Korea? Is it Japan? What are the countries— It's those two that you mentioned, exactly. And also— Yeah. Yeah, it seems like also some of the Chinese guys are actually also looking for other sales from other places. So we don't know exactly how it's going to all work out, but Korea and Japan are the two main areas for us. Great.

Speaker Change: Yes.

Speaker Change: [music].

Speaker Change: Sure.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: [music].

Zvi Alon: Best of luck in that transition and with the rest of the year. Thank you and I'll pass it on. Thank you much. Thanks, Phil.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: [music].

Operator: Are you in Germany? are not the cover-up given the Okay, no problem Mm-hmm, sorry.

Speaker Change: Okay.

Speaker Change: Okay.

Operator: One moment for our next question.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Okay.

Sidonian Company: For questions ask us in at Sidonian Company, your line is now open. Congratulations on the quarter, gentlemen. Thank you.

Speaker Change: Thanks.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: [music].

Sidonian Company: Just turning to the demand side, you've reported increased sequential growth in all regions, but just working out some arithmetic, it looked like EMEA was a little bit stronger in growth. Is that accurate?

Speaker Change: Okay.

Speaker Change: Okay.

Zvi Alon: Yes, we had We had most growth from APAC region in the quarter, but they represent the smallest of the three regions for us, followed by MIA and then America.

Speaker Change: [music].

Sidonian Company: Can you release any growth figures for the Americas? It's, you know, it's growing a little bit more than what the market estimates are. I mean, it's certainly... Low to mid single digits. I mean, does that help? It's not, it's certainly not the, you know, we did 9%, it certainly, it didn't carry the day for the 9%. All right.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: Okay.

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Speaker Change: Yes.

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Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: Thanks.

Speaker Change: Okay.

Sidonian Company: Well, thank you for the information and good luck in the Thank you so much. Thank you.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Sure.

Speaker Change: [music].

Speaker Change: Sure.

Zvi Alon: At this time, this concludes our question and answer session.

Speaker Change: Okay.

Zvi Alon: I'd now like to turn the call back over to Mr. Alon for his closing remarks. Thanks again, everyone, for joining us today. I especially want to thank our dedicated employees for their ongoing contribution, as well as our customers and partners for their continued hard work. I also want to thank our investors for their continued support. Thank you. Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

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Speaker Change: Good afternoon.

Speaker Change: Welcome to Tiger Energy's fiscal first quarter 2025 earnings conference call. At this time, all participants are in a listen only mode.

Speaker Change: After the speaker's presentation, there will be a question and answer session join.

Speaker Change: Joining us.

Speaker Change: Alright.

Speaker Change: <unk> CEO.

Speaker Change: CEO and Bill Ross <unk> CFO.

Speaker Change: As a reminder, this call is being recorded.

Bill: I would now like to turn the call over to Bill <unk> Chief Financial Officer.

Speaker Change: Thank you Karen and it's a pleasure to join you from our corporate offices and cap Campbell, California also with US is <unk>, our CEO, who is joining us from the inter solar conference in Munich, Germany.

Speaker Change: I'd like to remind everyone that some of the matters, we'll discuss on this call, including our expected business outlook, our ability to increase our revenues and become profitable and our overall long term growth prospects.

Speaker Change: Patients regarding recovery in our industry, including the timing thereof statements about demand for our products, our competitive position and market share the impact of tariffs, our current and future inventory levels charges reserves and the impact on future financial results.

Speaker Change: Inventory supply and its impact on our customer shipments statements about our revenue and adjusted EBITDA for the second quarter of 2025, and our revenue for the full year of fiscal year 2025, our ability to penetrate new markets and expand our market share including expansion in international markets and investments in our product portfolio are forward looking.

Speaker Change: And as such are subject to known and unknown risks and uncertainties, including but not limited to those factors that are described in today's press release and discussed in the risk factors section of our most recent annual report on Form 10-K quarterly report on Form 10-Q for the fiscal quarter ended March 31, 2025, and other reports.

Speaker Change: We may file with the SEC from time to time.

Speaker Change: These risks and uncertainties could cause actual results to differ materially from those expressed on this call. These forward looking statements are made of App only as of the date made during our call today, we will reference certain non-GAAP financial measures. We include non-GAAP to GAAP reconciliations in our press release furnished as an exhibit to our form 8-K, the non-GAAP financial measures.

Speaker Change: It should not be considered.

Speaker Change: Q4, or superior to the measures of financial performance prepared in accordance with GAAP.

Tycho: Finally, I would like to remind everybody that this conference call is being webcast and a recording will be made available for replay on Tiger Investor Relations website at investors <unk> energy Dot com with that I'd like to now turn the call over to Tycho CEOC Allot Z.

Speaker Change: Thank you Bill.

Speaker Change: To begin today's discussion I will highlight key areas in our recent financial and operational performance and.

Speaker Change: And briefly address the current macroeconomic developments.

Speaker Change: Before turning the call over to our CFO BJ Losch line.

BJ Losch: He will discuss our financial results for the third quarter and no depth as well as to provide the guidance for the second quarter and the full year of 2025.

Speaker Change: After the <unk>.

Speaker Change: Also some closing remarks tell you about the outlook.

Speaker Change: And then open the call for questions from you and the analyst.

Speaker Change: I am pleased to report that we ended the first quarter of 2025 without fifth increase in sequential quarterly revenue growth.

Speaker Change: Growing nine 1% sequentially and 92, 2%.

Speaker Change: On a year over year basis.

Speaker Change: In the first quarter of 2025.

Speaker Change: Both of the total revenue of $18 $8 million.

Speaker Change: And shipped 500 in 2351 megawatts of MLP.

Speaker Change: I am exceptionally proud of the photos team here at Tyco has accomplished.

Speaker Change: To give some geographical color on our results we saw positive sequential sales growth in EMEA.

Speaker Change: Americas and APAC regions.

Speaker Change: Within EMEA the EMEA.

Speaker Change: Jim.

Speaker Change: Covering that began for us as a year ago.

Speaker Change: Now burden as we saw much stronger results from Italy.

Speaker Change: And the Netherlands.

Speaker Change: In addition to both.

Speaker Change: The Americas and Asia Pacific regions also grew sequentially in the first quarter.

Speaker Change: I'm also excited about our recently introduced 22 tiers.

Speaker Change: <unk> a serious.

Speaker Change: Now serving panelists up to 725 watts and joining the tearful. Similarly was the highest safety solution, including the unique Tycho multifactor epic shutdown.

Speaker Change: <unk> our commitment to stay ahead of the module performance skills.

Speaker Change: Given the current developments in Washington.

Speaker Change: Many of you are likely interested in how the latest simple called tariff decisions.

Speaker Change: <unk> to us.

As you May know the majority of Tiger revenue, Okay outside of the United States.

Speaker Change: Based on the current cyclical <unk> announced we estimate that approximately 5% of our Q1 revenue.

Speaker Change: It would have been affected by the China reciprocal carries a 445%.

Speaker Change: We also estimate there's a block symmetry, 15% to <unk> Q1 revenue.

Speaker Change: They have been affected by 10%.

Speaker Change: The rest of the world the cyclical terese.

Speaker Change: We are currently working with our supply chain partners to mitigate the effects of diesel zipcode tariffs where possible.

Speaker Change: And with that I will turn it over to Bill Bill. Thank you salvi.

Bill: Turning now to our financial results for the first quarter ended March 31, 2025 revenue for the first quarter 25, 2025 increased 92, 2% to $18 8 million from $9 8 million in the prior year period.

Bill: On a sequential basis revenues increased nine 1% with improved results coming from many countries in the EMEA and APAC regions.

Bill: <unk>, Italy, Chechnya, the Netherlands, and the Philippines by region EMEA revenue was $11 5 million or 61, 3% of total revenues.

Bill: <unk> region.

Bill: Americas revenue was $4 7 million or <unk>.

In APAC revenue was $2 6 million or 13, 6% of total revenues.

Bill: By product family for the first quarter of 2025, MLP revenue represented $16 million of revenue were 84, 8% of total revenues.

Bill: <unk> represented $2 million or 10, 7% of total revenues and predict plus and licensing revenue represented <unk> 8 million.

Bill: 5% of total revenues during the quarter.

Bill: Gross profit in the first quarter of 2025 was $7 2 million or 38, 1% of revenue compared to a gross profit of $2 8 million or 28, 2% of revenue in the comparable year ago period.

Bill: Operating expenses for the first quarter declined five 9% to $11 2 million compared to $11 9 million in the prior year period. The decline was driven primarily by our previously announced cost cutting efforts.

Bill: Operating loss for the quarter decreased by 56, 2% to $4 million compared to $9 1 million in the prior year period.

Bill: GAAP net loss for the first quarter was $7 million compared to a net loss of $11 5 million in the prior year period.

Bill: Adjusted EBITDA loss in the first quarter decreased 67, 4% to $2 million compared to an adjusted EBITDA loss of $6 3 million in the prior year period. These results reflect progress towards profitability on a non-GAAP basis as previously announced.

Bill: As a reminder, adjusted EBITDA loss 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 M&A transaction expenses.

Bill: Primary shares outstanding were $61 9 million for the first quarter of 2025.

Bill: Turning now to the balance sheet accounts receivable net increased this quarter to $10 4 million compared to $8 million last quarter and increased from $6 3 million in the year ago comparable period inventories.

Inventories net decreased by $3 1 million or 14, 1% to $18 9 million compared to 22 million last quarter and $55 8 million in the year ago comparable period.

Bill: Cash cash equivalents and short and long term marketable securities totaled $20 3 million at March 31, 2025 on a sequential cash sequential basis cash increased by <unk> 4 million as we continue to make progress on reducing our inventory and working capital.

Bill: Turning now to our financial outlook for the second quarter of 2025 and full year of 2025 as a reminder, taizhou provide quarterly guidance for revenue as well as adjusted EBITDA.

Bill: We believe these metrics to be key indicators for the overall performance of our business.

Bill: For the second quarter of 2025, we expect revenues and adjusted EBITDA to be in following range.

Bill: Revenues in the second quarter ended June 32025 to range between 21% and $22 million.

Bill: We expect adjusted EBITDA to range between negative $1 5 million and positive 500000.

Bill: For the full year of 2025, we are reiterating previous our previous guidance of revenues of between 85 and $100 million.

Zee: That completes my summary, and I would like to now turn the call back over to Zee for final remarks.

Speaker Change: We look ahead I am happy to say that even against the backdrop of the economy economic uncertainty. We believe it is our track record of five consecutive quarters with top line growth will continue for the reminder of 2025 as the.

Speaker Change: Demand for our solutions continued to return.

Speaker Change: We firmly believe in the growth prospects.

Speaker Change: Our business and look forward to providing additional updates in the coming quarter.

Speaker Change: Coming quarters.

Speaker Change: With that operator, please open the call for Q&A.

Speaker Change: Thank you.

Speaker Change: At this time, we would like to conduct the question and answer session.

To ask a question you will need to press star one on your telephone and wait for your name to be announce withdraw. Your question. Please press star one again, please standby, while we compile the Q&A roster.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: <unk> of Craig Hallum Capital Group. Your line is now open.

Speaker Change: Hi, Bill.

Speaker Change: Eric Hello.

Speaker Change: Hello.

Speaker Change: I'm curious I mean, obviously, a nice recovery you're seeing in in actually across all your markets, but when you think about this I mean, how do you break this down between just improving conditions with your current.

Speaker Change: Distributors and direct sales versus market share gains because clearly this is a little bit of both would love your thoughts on how that breaks down between the two.

Speaker Change: Outstanding question, Erik Thanks for asking it.

Speaker Change: I will share that.

Speaker Change: We continue to see.

Speaker Change: Current existing distributors, which are very strong.

Speaker Change: Increasing the <unk>.

Speaker Change: <unk> footprint with us.

Speaker Change: And becoming much more bullish on.

Speaker Change: The market requirements.

Similarly, our efforts with going directly to at least promoting the products with system integrators and large epc's is paying very nice dividends.

Speaker Change: And.

Speaker Change: I can tell you that.

Speaker Change: Majority I would say of our growth is coming from an increased market share we believe.

Speaker Change: Even though it's the same exact distributors and thats, what we hear from them at least I would not mentioning any names, but two or three of them mentioned specifically that.

Speaker Change: We have increased the footprint within their portfolio is substantially above any other competitor.

Speaker Change: That's good color I mean, do you attribute that to just the broader product offering. The fact that this can be used for residential C&I utility scale.

Speaker Change: Is it price is it kind of all will be above.

Speaker Change: So I can tell you that.

Speaker Change: Touch the price first.

Speaker Change: We have not changed at all and we have been consistent on that front.

Speaker Change: We introduced the <unk> X family at the higher price and we see a nice increase increase for those products for a different market.

Speaker Change: <unk> is.

Speaker Change: Accepting it so far but as far as the peaceful eight product price was not an issue now.

Speaker Change: I can tell you that many factors, helping us gain market share.

Speaker Change: One the number of Skus is very small and we have a single optimized you'll discover basically the whole market.

Speaker Change: Not only that is the highest power rating.

Speaker Change: Which is the current shipping version. These 700 throttle eight tidewater and we just announced the 795.

Speaker Change: What.

Speaker Change: And working for essentially all three market segments number three I would say we are I believe we are the only company with.

Backward compatibility of the current shipping products to products, we see 789 years ago exactly identical.

Speaker Change: If you have any failure was an old product, which they sometimes do happen you do.

Speaker Change: Don't need to go and get the same exact.

Speaker Change: Pilot number you can just buy any one off the shelf and replace seats or get an hour away from US then you will get a new product to replace it.

Speaker Change: Also the fact that our product works with pretty much any inverter Aldo.

He is also a major contributor so all in all I would mention one more thing.

Speaker Change: Our installation time of the MLP product is superb it's about 10 seconds PV module.

Speaker Change: Unheard of I mean, literally just slightly unit onto panel connected wireless and you have done so all those factors together.

Speaker Change: More people get to it.

Speaker Change: Yes.

Speaker Change: The moat.

Speaker Change: Buy into it and wanted to do more.

Speaker Change: I can tell you that the amazing felt for US also is that we see larger number of units being shipped to louts Epc's installers.

Speaker Change: As they become much more.

Speaker Change: And.

Speaker Change: Successful with those products.

Speaker Change: Got it. Thank you very much for that and then I guess for my last question, then I'll turn it over just curious I mean opex came down.

Speaker Change: A little bit here in the quarter, but I also know that in Q1, you were expecting some some audit fees and some other onetime items. So just curious I mean your guidance and the fact that at the upper end.

Speaker Change: Positive adjusted EBITA would imply that opex. So we should think of it lower so just curious if you can give any color on that.

And so in general our there's two levers to think about.

In the guidance and projections for the year as you build out your model.

Speaker Change: We are tracking at a high gross margin.

Speaker Change: We're seeing that both in our.

Speaker Change: In our MLP business as well as.

Speaker Change: The.

Speaker Change: Lack of having a drag on the margin.

Speaker Change: Our <unk> product line, which we did a large reserve for last quarter. So combining those the combination of both should lead to some gross margin uplift as we look later into the year. So.

Speaker Change: 38, plus.

Speaker Change: I would put it more closely.

Closer to 40.

Speaker Change: And Opex.

Speaker Change: Consider really speaking between.

Speaker Change: Between 11, and 12, maybe midpoint of 11 five.

Speaker Change: Is that I think is a fair range.

Speaker Change: Lebanon to last Q1, but we were off of 11, 5% in Q4, so there's a little bit of variability there, but when you model that out.

Speaker Change: You'll come up with numbers for the adjusted EBITDAR that are in the range that we guided to.

Speaker Change: Okay.

Speaker Change: Alright, Thank you very much.

Speaker Change: Thank you.

Speaker Change: Thank you.

Speaker Change: Our next question comes from Filipe.

Speaker Change: And partners. Your line is now open.

Speaker Change: Phil.

Speaker Change: Okay.

Speaker Change: One moment for our next question.

Speaker Change: Okay.

Speaker Change: Our next question comes from Sameer Joshi of H C. Wainwright. Your line is now open.

Sameer Joshi: Hey, good afternoon.

Sameer Joshi: Thanks for taking my questions and congrats on a good quarter.

Sameer Joshi: Thank you.

Sameer Joshi: Our prepared remark you mentioned, 5% of revenues would have been impacted about 145%.

Sameer Joshi: 15%.

Sameer Joshi: Yes.

Sameer Joshi: Other backup envelope. So this would be around $1 2 million.

Speaker Change: Should we.

Speaker Change: Should we expect.

Speaker Change: That level of impact going forward and then how does that.

Speaker Change: Sure.

Speaker Change: Mesh with the sort of <unk>.

Speaker Change: Gross margin that you see.

Speaker Change: <unk> recently.

Speaker Change: So I would characterize it this way.

Speaker Change: The U S represented.

Speaker Change: 22% of our revenues.

Speaker Change: And within that you've got 15% of that that is our MLP products that are made outside of China and Thailand.

Speaker Change: Subject to the reciprocal.

Speaker Change: Tariffs.

Speaker Change: We'll see what happens after the 90 days.

Speaker Change: That's a 90 day review.

Speaker Change: And then that leaves, 5% that's subject to the China tariffs, but.

Speaker Change: But that includes both inverter in batteries and we are working on our supply chain and have the opportunity to move some of that specifically on the inverter side outside of China. So that would negate must much of that 5%.

Speaker Change: And then the rest of it is batteries, which are sourced in China, but we have a large inventory positions in the U S already and so that also in the gates.

Speaker Change: The tariffs on that so combining all of that we don't see a substantial impact on the tariffs on our business.

Speaker Change: At least for the second quarter, we're going to leave it.

Speaker Change: Hunter to quarter because.

Speaker Change: The world seems to change so fast on this front.

Speaker Change: Yes.

Speaker Change: Third my part two of the question, which was the inventory.

Speaker Change: How much of it will support the second quarter. So it seems to have enough inventory that will peak out of that.

Speaker Change: Support business in the second quarter.

Speaker Change: Correct.

Speaker Change: And then the.

Speaker Change: The Brooklyn court of grid.

Speaker Change: <unk>.

Speaker Change: Also in that.

Speaker Change: The solar package that were offering.

Speaker Change: Is there like.

Speaker Change: Is this demand for off grid.

Speaker Change: <unk>.

Speaker Change: Seeing from like.

Speaker Change: And the businesses or.

Speaker Change: This is also mentioned.

Speaker Change: So just was curious how large is that demand from where it is.

Speaker Change: <unk>.

Speaker Change: There is a.

Speaker Change: Substantial regional reach an extra a couple who like to be <unk>.

And in the.

Speaker Change: Midwest and.

Speaker Change: Some south.

Speaker Change: And that's what we were aiming at.

Speaker Change: We started seeing some fairly good success. So we packaged it solutions for that one specific market.

Speaker Change: If you check who else are providing solutions, which are also agreed.

Speaker Change: It is becoming an increased number of.

Speaker Change: Suppliers. So we will assure we are not going to stay the only one and we are not right now but for us. It's a growing segment that we have not touched before.

Speaker Change: Understood.

Speaker Change: And then just last one.

Speaker Change: The second quarter guidance.

Speaker Change: Implies that your second half revenues are likely to be $46 million to $59 million at the midpoint.

Speaker Change: <unk> guidance.

Speaker Change: Do you have visibility and how much confidence do you have in that outlook.

Speaker Change: Strong second half.

Speaker Change: I can tell you that.

Speaker Change: But we don't have specific orders going out more than a couple of quarters may be in some very small cases, a little bit more.

Speaker Change: But the majority of it really for the current quarter in the next quarter.

Speaker Change: But on the other hand, we know how and we do talk to.

Our distributors and we know how the markets behave and what their expectations are.

Speaker Change: And so we factor it in decent too obviously, what we know about the market and we have been so far.

Speaker Change: Accurate for the last five six quarters result, projections. So we're fairly confident I can tell you that our backlog increasingly.

Speaker Change: We don't share quite those numbers, but increasingly over the last two or three quarters SKU for one quarter to be idle.

Speaker Change: And as we got into the current quarter, we felt much more comfortable or even increasing the number of the guidance.

Speaker Change: Understood.

Speaker Change: That sounds good thanks, a lot for taking my questions.

Speaker Change: Most of them.

Speaker Change: Thank you Andrew.

Speaker Change: Sure.

Speaker Change: To ask a question. Please press star one one on your telephone.

Speaker Change: Our next question comes from Philip Shen of Roth Capital Partners. Your line is now open.

Philip Shen: Hey, guys. Thanks for taking my questions. We went through the 10-Q quickly we saw that there is the going concern language.

Philip Shen: You have the $50 million convert.

Philip Shen: <unk> January one or sometime in January of 2026.

Philip Shen: Can you talk to us about.

Philip Shen: The situation there.

Philip Shen: How do you expect to manage.

Philip Shen:

Philip Shen: The $50 million due.

Philip Shen: How flexible would you expect.

Philip Shen: Your convert counterparty.

Philip Shen: <unk> energy to be yes.

Philip Shen: Yes.

Are the counterparty is.

Philip Shen: It's being very flexible and cooperative and as you know.

Philip Shen: Big supporter of Tiger and that being said we are.

Philip Shen: Working on a on a refinance.

Philip Shen: And I'm sure you can appreciate.

Philip Shen: When we have something announced we'll announce it but rest assured we are diligently working.

Philip Shen: Two to address the maturity on that.

Speaker Change: Okay. Thanks Bill.

Speaker Change: From a cash standpoint are you guys.

Speaker Change: Hum.

Speaker Change: We have an annual guide and so if you hit the midpoint of that guide how much.

Speaker Change: Free cash flow generation do you think you can have.

Speaker Change: So.

Speaker Change: Go forward basis, we're looking at.

Speaker Change: EBITDA positive.

Speaker Change: If not in Q2 guidance for three and four we would expect that based on the annual guide.

Speaker Change: B.

Speaker Change: The overall cash position is obviously, probably going to be flattish to slightly up and we are in a replenishment mode on some of the inventory, especially on MLP.

Speaker Change: And so theres going to be some consumption there that.

Speaker Change: Some of the some of the cash flow generation can be used for working capital for that purpose.

Speaker Change: We're thinking of cash sorted in a.

Speaker Change: A bit a bit rain range bound and the lower twenties level.

Speaker Change: Okay, great. Thanks.

Speaker Change: And then as.

Speaker Change: As it relates to Europe inter solar is about to kick off I think tomorrow.

Speaker Change: Are you guys. There I know Europe is a big part of your business.

Speaker Change: So what are you hoping to accomplish.

Speaker Change: You think that Joe thanks.

Speaker Change: We are at full swing would have.

Speaker Change: Already we have a very nice boost set and we actually have a very.

Speaker Change: Interesting and busy schedule of the OLED form.

Speaker Change: Partners.

Speaker Change: <unk>.

Speaker Change: As well as customers.

Speaker Change: <unk>.

Speaker Change: <unk>.

Speaker Change: It's <unk>.

Speaker Change: Interesting, but we're all pretty much booked we didn't have much lift.

Speaker Change: To allocate so we're very happy with what's going on right now.

Craig: Thanks, Craig and then in terms of distributors.

Speaker Change: I've been hearing that.

Speaker Change: Some of the Pan European larger.

Speaker Change: Distributors might be having issues with.

Speaker Change: A trend where.

Speaker Change: More of the local distributors are developing.

Speaker Change: Greater influence with the installer base are you seeing something similar.

Speaker Change: And so how much you adjust your your strategy to sell into Europe I don't know if this plays a factor at all but what are your thoughts on this dynamic.

Speaker Change: So.

Speaker Change: What we have seen two phenomena.

First of all Big picture the total level of distributors, we have did not shrink much even resolve those guys that went out of business, we actually replenish sell them further.

Speaker Change: Fairly quickly with others and some came back for almost instincts.

Speaker Change: So we are very happy for them to be able to actually survive now to the question itself, we do see a phenomenon, which.

Speaker Change: The very large distributor.

Speaker Change: Starting to sell to some local distribution.

Speaker Change: And so we have seen that happening in a few places.

Speaker Change: We are not necessarily encouraging it or discouraging it.

Speaker Change: But it helps us keep the footprint, which is much wider and for the smaller original one they don't necessarily are able to hit the the same discount level as the large ones.

Speaker Change: So that mechanism, we have in place, which will rigidly following.

Speaker Change: Is working for us and it sales pretty much all of them.

Speaker Change: And so we don't we don't think we'll need to make any changes right now.

Speaker Change: Yes.

Speaker Change: Got it and so when you see the large distributors selling.

Speaker Change: Product to the smaller ones are local ones.

Speaker Change: What kind of products are we talking about modules Inverters MLP youre your products or is it.

Speaker Change: Morris focused on storage or some other category. The majority. The majority we see is in the line of Inverters MLP and some PV modules.

Speaker Change: On the battery side and DSS.

Speaker Change: Not much.

Speaker Change: Not much at all I would say.

Speaker Change: Got it thanks.

Speaker Change: Most welcome.

Speaker Change: In terms of maybe the last one here for me.

Speaker Change: The.

Speaker Change: China tariff in the U S.

Speaker Change: 145%.

Speaker Change: The biggest impact IC is on.

Speaker Change: <unk> for batteries coming into the country and wanted to just check and maybe you already addressed this sorry, if I missed this but what's the impact for <unk> for you guys do you already have a lot of inventory in country in the U S. So thats.

Speaker Change: Less of an issue.

Speaker Change: Or.

Speaker Change: If it is a bit of an issue.

Speaker Change: Are you guys doing to mitigate.

Speaker Change: Okay. Thanks.

Speaker Change: So for the foreseeable future I would say the next few quarters. We're in good shape with Dean's at Dolby we have.

Speaker Change: And.

Speaker Change: And we are getting ready for the next generation, which is addressing the sources.

Speaker Change: Of the suppliers.

Speaker Change: So we would not be exposed to as to China as much but as you know China controls the very large [laughter].

Speaker Change: Well in the market and so I'm not sure we can avoid it completely but we have other sources.

Speaker Change: So for now you guys have some installation maybe a few quarters.

Speaker Change: That's a fair amount of time.

So, but as you burn through that inventory you do need to start now or.

Speaker Change: Soon and diversifying your cell pack geographic.

Speaker Change: And so the world is trying to do this release most of the U S and so what countries are you trying to go to is it Korea or Japan.

Speaker Change: In other countries.

Speaker Change: To that you mentioned exactly.

Speaker Change: And also.

Speaker Change: Yes, it seems like also.

Speaker Change: The Chinese guys.

Speaker Change: We also looking for other sales from other places so we.

Speaker Change: We don't know exactly how it's going to all work out, but Korea and Japan are the two main areas for us.

Speaker Change: Okay, Great best of luck in that transition and with the rest of the year.

Speaker Change: Thank you and I'll pass it on.

Speaker Change: Thanks, So much thanks, Phil are you in Germany.

Philip Shen: Not this time around given the earnings season.

Speaker Change: Okay no problem.

Speaker Change: Thanks Mhm subtly.

Speaker Change: One moment for our next question.

Our next.

Speaker Change: My question is assets in at Sidoti <unk> Company. Your line is now open.

Speaker Change: Congratulations on the quarter gentlemen.

Speaker Change: Thank you.

Speaker Change: Just turning to the demand side, you've reported increased sequential growth in all regions, but just working out some arithmetic. It looks like EMEA was a little bit stronger in growth is that accurate.

Speaker Change: Yes.

Speaker Change: Pat.

Our most growth from APAC region in the quarter, but they represent the smallest of the three <unk>.

Speaker Change: Regions for US followed by EMEA and Americas.

Speaker Change: Yeah.

Speaker Change: Can you release any growth figures for the Americas.

Speaker Change: Yes.

Speaker Change: Now, it's growing a little bit more than what the market estimates are I mean, it's certainly.

Speaker Change: Okay low to mid single digits, I mean is that helps.

Speaker Change: It's not it's certainly not the.

Speaker Change: We did 9% it certainly it didn't carry the day for the 9%.

Speaker Change: Got it.

Speaker Change: Alright, well, thank you for the information and good luck in the coming quarter. Thank you so much.

Speaker Change: Thank you so much.

Speaker Change: Thank you.

Speaker Change: At this time. This concludes our question and answer session I would now like to turn the call back over to Mr. <unk> for his closing remarks.

Speaker Change: Thanks again, everyone for joining us today.

Speaker Change: Especially want to thank our dedicated employees for their ongoing contribution as well as our customers and partners for their continued hard work.

Speaker Change: I also want to thank our investors for their continued support.

Speaker Change: Operator.

Speaker Change: Thank you.

Speaker Change: Thank you for your participation in today's conference. This does conclude the program you may now disconnect.