Q1 2025 FTC Solar Inc Earnings Call

May 1, 2025

Unknown Executive: Good day, and thank you for standing by.

Good day, and thank you for standing by.

Speaker Change: Welcome to the F. T C solar first quarter 2025 earnings conference call. At this time, all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question during this session.

Unknown Executive: Welcome to the FTC Solar First Quarter 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session.

Unknown Executive: To ask a question during the session, you will need to press star-one-one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star-one-one again.

Speaker Change: We'll need to press star one one on your telephone you will then hear automated message. Your body. Your hand is wage to withdraw your question. Please press star one again please.

Unknown Executive: Please be advised that today's conference is being recorded.

Speaker Change: Please be advised that today's conference is being recorded I would now like to hand, the conference over to your first speaker today Bill Mitchell at Vice President Investor Relations. Please go ahead.

Bill Michalek: I would now like to hand the conference over to your first speaker today, Bill Michalek, Vice President, Investor Relations. Please go ahead.

Bill Michalek: Thank you and welcome, everyone, to FTC Solar's first quarter 2025 earnings conference call. Before today's call, you may have reviewed our earnings release, slide presentation, and supplemental financial information, which were posted earlier today. If you've not reviewed these documents, they're available on the Investor Relations section of our website at ftcsolar.com.

Bill Mitchell: Thank you and welcome everyone to <unk> first quarter 2025 earnings Conference call before today's call. You may have reviewed our earnings release slide presentation, and supplemental financial information, which are posted earlier today.

Bill Mitchell: Not reviewed these documents they are available on the Investor Relations section of our website at MPC, So dot com.

Bill Michalek: I'm joined today by Yann Brandt, the company's President and Chief Executive Officer, Cathy Behnen, the company's Chief Financial Officer, and Patrick Cook, the company's Head of Capital Markets and BD. Before we begin, I remind everyone that today's discussion includes forward-looking statements based on our assumptions and beliefs in the current environment and speaks only as of the current date. As such, these forward-looking statements include risks and uncertainties and actual results and events could differ materially from our current expectations. Please refer to our press release and other ACC filings for more information on the specific risk factors.

Speaker Change: I'm joined today by John Brandt, the company's President and Chief Executive Officer, Cathy banning the company's Chief Financial Officer, and Patrick the company's head of capital markets and BD.

Speaker Change: Before we begin I remind everyone that today's discussion includes forward looking statements based on our assumptions and beliefs in the current environment and speaks only as of the current date.

Speaker Change: These forward looking statements include risks and uncertainties and actual results and events could differ materially from our current expectations.

Speaker Change: Please refer to our press release and other SEC filings for more information on the specific risk factors, we assume no obligation to update such information, except as required by law.

Bill Michalek: We assume no obligation to update such information except as required by law. As you'd expect, we'll discuss both GAAP and non-GAAP financial measures today. Please note that the earnings release issued this morning includes the full reconciliation of each non-GAAP financial measure to the nearest applicable GAAP.

Speaker Change: As you would expect we will discuss both GAAP and non-GAAP financial measures. Today. Please note that the earnings release issued this morning includes a full reconciliation of each non-GAAP financial measure to the nearest GAAP measure.

Yann Brandt: With that, I'll turn the call over to Yann. Thanks, Bill. And good morning, everyone.

John: With that I'll turn the call over to John.

John: Thanks, Bill and good morning, everyone. It has only been a month since our last call. So we will keep it brief today.

Yann Brandt: It has only been a month since our last call, so we'll keep it brief. During the past two earnings call, I've shared my observations on the company and the progress that's been made toward a primary focus of shoring up near-term backlog, while adding incremental liquidity to the business. Slide three of our presentation today provides a summary of some of that progress. As you can see, we have added multiples of our current annual revenue run rate to our backlog, signed agreements totaling more than six and a half gigawatts with tier one accounts, along with other awards added or announced more than $30 million in additional liquidity for our balance sheet, strengthen our sales team, further strengthen our product offering and capabilities, and increase our commercial traction with bids on many gigawatts of future projects.

John: During the past two earnings calls I've shared my observations on the company and the progress Thats been made toward our primary focus of shoring up near term backlog, while adding incremental liquidity to the business slide three of our presentation. Today provides a summary of some of that progress.

John: As you can see we have added multiples of our current annual revenue run rate to our backlog of signed agreements totaling more than six five gigawatts with tier one accounts along with other awards added or announce more than $30 million in additional liquidity for our balance sheet strengthened our sales team further strengthened our product offerings and capabilities and increased our <unk>.

John: <unk> traction with beds on many gigawatts of future projects.

Yann Brandt: Our priority is to demonstrate continued progress and convert those wins and backlog into sustainable growth and profitability. And after our revenue dropped in Q3 of last year, we have since seen sequential growth of 30% and 58% in Q4 and Q1 respectively. While these are nice percentage improvements, we still have a long way to go to get our revenue to where it needs to be.

John: Our priority is to demonstrate continued progress and convert those wins and backlog into sustainable growth and profitability and after our revenue trough in Q3 of last year, we have 17 sequential growth of 30% and 58% in Q4 and Q1, respectively.

John: These are nice percentage improvements, we still have a long way to go to get our revenue to where it needs to be.

Yann Brandt: To that end, I thought it'd be good to provide a little bit of additional color on the positioning improvements we've made and how that activity will lead to even stronger revenue growth. To best understand the future possibilities of FTC, it's helpful to look at the All technology markets rotate as companies use innovation to leapfrog peers based on features and product portfolios. As many of you know, FTC's reputation is centered primarily on ease of use or constructability and service. The company broke into the market and won tier one developer and EPC business because it brought a new differentiated and easy to use tracker to the market.

John: To that end I thought it'd be good to provide a little bit of additional color on the positioning improvements we've made and how that activity will lead to even stronger revenue growth in the future.

John: To best understand the future possibilities of FTC. It's helpful to look at the past all technology markets rotate as companies use innovation to leapfrog peers based on features and product portfolios. As many of you know FTC's reputation is centered primarily on ease of use or construct ability and service.

John: The company broke into the market and one tier one developer and EPC business, because it brought a new differentiated and easy to use tracker to the market.

Yann Brandt: FTC was the unquestionable leader in the However, that market has since shrunk as the size and availability of modules reduced the demand for the 2P architecture. Many of our customers still view 2P as a product they love, but only use it in unique situations. To greatly expand our served market and address market demand increasingly centered around 1P, FTC introduced its first 1P solution, Pioneer, leveraging all of the innovations and benefits of its 2P sibling, as well as an understanding of the full market landscape. While initially relatively narrow in scope, our 1P product line has since been greatly expanded, with the bulk of our research and engineering efforts being directed there.

John: <unk> was the unquestionable leader in the <unk> market. However that market has been strong as the size and availability of module has reduced the demand for the <unk> architecture.

John: Many of our customers still view <unk> as a product they love, but only use it in unique situations.

John: Are greatly expand our served market and address market demand increasingly centered around one P. FTC introduced its first <unk> solution pioneer leveraging all of the innovations and benefits of its two P sibling as well as an understanding of the full market landscape. While initially relatively narrow in scope. Our <unk> product line has since been greatly expanded.

John: With the bulk of our research and reengineering efforts being directed there are lumpy additions haven't included high wind offerings that extend up to 150 miles per hour compatibility for dozens of new module and module manufacturers now covering all module types, including ultra large format and first solar family of modules.

Yann Brandt: Our 1P additions have included high wind offerings that extend up to 150 miles per hour, compatibility for dozens of new modules and module manufacturers, now covering all module types, including ultra large format and first solar family of modules. The ability for customers to make changes to module specifications late in the design process, which gives them significant flexibility and inherent architecture difference from the older legacy 1P systems in the market. Multiple features that reduce civil construction cut and fill with our terrain following options, including our new dual road track. The largest range of stow in the market for customized asset management, which is digitally controlled in our SunOps platform, integrated with weather stations and third party alert systems. and 100% Domestic Content Capabilities starting in Q3, to name a few.

John: The ability for customers to make changes to module specifications late in the design process, which gives them significant flexibility and inherent architecture difference from the older legacy <unk> systems in the market.

John: Multiple features that reduced civil construction cut and fill with our terrain following options, including our new dual road tracker.

John: The largest range of Stowe in the market for customized asset management, which is digitally controlled and our son ops platform integrated with weather stations in third party alert systems.

John: And 100% domestic heartland capabilities, starting in Q3 to name a few.

Yann Brandt: And with some legacy competitor projects in the marketplace underperforming due to products that are no longer being supported, FTC has leveraged its controls and software platform to help customers get those projects back on track. While this wasn't something that we have actively sought out, we can be relatively nimble as a company and view this as an opportunity to help our partners with their entire portfolio of assets and will help where we can.

John: And with some legacy competitor projects in the marketplace underperforming due to products that are no longer being supported FTC has leveraged its controls and software platform to help customers get those projects back on track. While this wasn't something that we have actively sought out we can be relatively nimble as a company and view this as an opportunity to help our partners with their <unk>.

John: Tire portfolio of assets and will help where we can.

Yann Brandt: So overall, I believe we now have a robust and rather comprehensive product line to offer significant benefits to projects across developer and EPC portfolios, and our engineering and R&D teams have a full portfolio of incremental initiatives in progress to provide additional customer benefits, as well as further improve our cost structure. This compelling product line, along with the enhancements to our sales team and process, has led to a significant increase in customer interest and activity. For example, customer visits to our product demonstration facilities have increased considerably. Over the past 6 and 9 months, visits are up 100% and 240%, respectively, versus the comparable year earlier period.

John: So overall I believe we now have a robust and rather comprehensive product line to offer significant benefits to projects across developer and EPC portfolios and our engineering and R&D teams have a full portfolio of incremental initiatives in progress to provide additional customer benefits as well as further improve our cost structure.

John: This compelling product line, along with the enhancements to our sales team and process has led to a significant increase in customer interest and activity.

John: For example, customer visits to our product demonstration facilities have increased considerably over the past six to nine months visits were up 100% and 240% respectively versus the comparable year earlier periods.

Yann Brandt: Bidding volume has increased considerably as well, and the first quarter bid volume was up 60% versus a year ago, and the project size of our average bid is up as well, up 65% versus a year ago. And notably, our customer access or visibility has greatly improved. In fact, we believe we now are seeing almost every project that our peers do, even though they are significantly larger than us at this moment. We're getting the looks, and this was not the case just a few quarters ago. The innovation and expansion of a 1P offering and the ability to install FTC trackers easier, faster and safer is incredibly valuable for our customers.

John: Bidding volume has increased considerably as well in the first quarter, but volume was up 60% versus a year ago and the project size of our average bid is up as well up 65% versus a year ago.

John: Notably our customer access or visibility is greatly improved and in fact, we believe we now are seeing almost every project that our peers do even though they are significantly larger than us at this moment we're.

John: We're getting the luxe and this was not the case just a few quarters ago.

John: The innovation and expansion of our <unk> offering and the ability to install FTC trackers easier faster and safer is incredibly valuable for our customers. That's a major part of what's allowing us to get these looks and to win significant tier one business in head to head competition with our larger peers overall <unk> now represents 90% of all bidding.

Yann Brandt: That's a major part of what's allowing us to get these looks and to win significant tier one business and head to head competition with our larger Overall, 1P now represents 90% of all bidding.

John: Yeah.

Yann Brandt: From a market perspective, we're all aware that there's a fair amount of static or uncertainty in the market between the tariffs, duties, and changes to permitting process. Most of our pipeline continues to move through the process steps toward the start of construction. But with the expectation of trade deals, we also see customers waiting for additional clarity. While our team has done a great job positioning the company with robust diversified supply chain, trackers are only a piece of the overall equation which can include inverters, batteries, and modules from many different geographies. We'll continue to work closely with our clients and stay flexible on the timing of import, how quickly clarity comes could determine the size and scope of any air pocket or disruption we could see in the market.

John: From a market perspective, we're all aware that there's a fair amount of static or uncertainty in the market between the tariffs duties and changes to permitting processes.

John: Our pipeline continues to move through their process steps towards the start of construction, but with the expectation of trade deals. We also see customers waiting for additional clarity.

John: While our team has done a great job positioning the company with robust diversified supply chain trackers are only a piece of the overall equation, which can include Inverters battery modules for many different geographies.

John: We'll continue to work closely with our clients and stay flexible on the timing of important how quickly clarity comes could determine the size and scope of any air pocket of disruption we could see in the market in other words, the FTC will maintain in partnership with our clients. The operating flexibility to ensure we are aligned on when to import any product that may be subject to tariffs, especially in a mode.

Yann Brandt: In other words, FTC will maintain in partnership with our clients, the operating flexibility to ensure we are aligned on when to import any product that may be subject to tariffs, especially in a moment when, by all accounts, it appears that the tariffs will be reduced significantly or eliminated altogether.

John: <unk> Wen by all accounts it appears that the tariffs will be reduced significantly or eliminated altogether.

Yann Brandt: Let me take a moment to give you my view of the current solar market, a market I've been working in for nearly 20 years. The good news is that even though there are crosswinds, the demand for solar generation is as high as I have ever seen it. Looking at developments nearing the start of construction phase, it is typical to see a competitive market for investments and acquisitions of those projects. The bigger the project and the bigger the demand to have it built.

John: Let me take a moment to give you my view of the current solar market a market I've been working for nearly 20 years. The good news is that even though there are cross winds the demand for solar generation is as high as I've ever seen them looking at developments nearing the startup construction phase. It is typical to see a competitive market for investments and acquisitions of those projects.

Speaker Change: The bigger the project and the bigger the demand to Abbott built.

Yann Brandt: What is unique about the current solar market is that the offtakers, the companies and utilities, are actively involved in the late stages of development and investment. Especially corporate customers with a pipeline of data centers are deploying capital into solar developers to gain an inside track for the generation to get built bigger and On the legislative front, I am optimistic on the progress that the solar industry is making and advocating for the continuation for the investment tax credit and 45X manufacturing credit. Both play a crucial role in continuing the growth rate of the solar market, which is currently the most critical part of America's energy resource addition.

Speaker Change: What is unique about the current solar market is that the off takers to companies and utilities are actively involved in the late stages of development and investments.

Speaker Change: Specialty corporate customers with a pipeline of Datacenters are deploying capital into solar developers to gain an inside track for the generation to get built bigger and faster.

Speaker Change: On the Legislative front I'm optimistic on the progress that the solar industry is making in advocating for the continuation for the investment tax credit and 45% ex manufacturing credits both play a crucial role in continuing the growth rate of the solar market, which is currently the most critical part of America energy resource additions elected officials are recognized.

Yann Brandt: Elected officials are recognizing the importance that solar plays across the country and across the political spectrum. FTC is actively involved in our trade associations efforts to advocate for the solar market and ensuring the best possible outcome. At the end of the day, solar has the most robust short-term pipeline that provides clean and cheap electricity for millions of consumers and businesses.

Speaker Change: And the importance that solar plays across the country and across the political spectrum.

Speaker Change: FTC is actively involved in our trade associations efforts to advocate for the solar market and ensuring the best possible outcome.

Speaker Change: At the end of the day solar has the most robust short term pipeline that provides clean and cheap electricity for millions of consumers and businesses and I believe the U S should do everything possible to build as much solar as we can to minimize energy prices and maintain American energy security of dominance.

Yann Brandt: And I believe the U.S. should do everything possible to build as much solar as we can to minimize energy prices and maintain American energy security and dominance.

Yann Brandt: So right now, we have $482 million in contracted backlog. I believe our expanded offering and increased bidding activity will support continued backlog additions. Overall, I'm very bullish on the long-term potential and prospects for FTC Solar. We're positioned in a strong, long-term growth industry with the right combination of people and products, providing the best value for our customers. Interest and demand for our solutions are increasing and should position us for long-term sustainable revenue.

Speaker Change: So right now we have $482 million in contracted backlog I believe our expanded offering and increased bidding activity will support continued backlog additions overall I am very bullish on the long term potential and prospects for FTC solar.

Speaker Change: We're positioned in the strong long term growth industry with the right combination of people and products, providing the best value for our customers interest and demand for our solutions are increasing and should position us for long term sustainable revenue growth.

Cathy Behnen: With that, I'll turn it over to. Thanks, Yann, and good morning, everyone. I'll provide some additional color on our first quarter performance and our outlook. Beginning with the discussion of the first quarter, revenue came in at $20.8 million, which was just above the high end of our guidance range of 18 to This revenue level represents an increase of 58% compared to the prior quarter and an increase of 65% compared to the year earlier quarter due to higher product volume. Gap gross loss was $3.4 million or 16.6% of revenue compared to gross loss of $3.8 million or 29.1% of revenue in the prior quarter.

Kathy: With that I'll turn it over to Kathy.

Kathy: Thanks, John and good morning, everyone I'll provide some additional color on our first quarter performance and our outlook.

Kathy: Beginning with the discussion of our first quarter revenue came in at $28 million, which was just above the high end of our guidance range of 18 to 20.

Kathy: This revenue level represents an increase of 58% compared to the prior quarter and an increase of 65% compared to the year earlier quarter due to higher product volumes.

Kathy: GAAP gross loss was $3 4 million or 16, 6% of revenue compared to gross loss of $3 8 million or 29, 1% of revenue in the prior quarter.

Cathy Behnen: Non-GAAP growth loss was $3 million or 14.4% of revenue above the midpoint of our guidance. The results for this quarter compared to non-gap growth loss of $3.4 million are 25.6% of revenue in the prior quarter. Gap operating expenses were $7.1 million. On a non-gap basis, excluding stock-based compensation and certain other costs, operating expenses were $6.6 million, down from $8.7 million in the same quarter last year and $7.4 million in the prior quarter. This represents the sixth consecutive quarter of OPEX reduction and our lowest level since 2020, which was before we were a public company, as we continue to control costs.

Kathy: non-GAAP gross loss was $3 million or 14, 4% of revenue above the midpoint of our guidance.

Kathy: The results for this quarter compared to non-GAAP gross loss of $3 4 million or 25, 6% of revenue in the prior quarter.

Kathy: GAAP operating expenses were $7 1 million on a non-GAAP basis, excluding stock based compensation and certain other costs operating expenses were $6 $6 million down from $8 $7 million in the same quarter last year and $7 4 million in the prior quarter. This.

This represents the sixth consecutive quarter of Opex reduction and our lowest level since 2020, which was before we were a public company as we continue to control cost.

Cathy Behnen: Gap net loss was $3.8 million, or $0.58 per diluted share, compared to a loss of $12.2 million, or $0.96 per diluted share in the prior quarter, and compared to a net loss of $8.8 million, or $0.70 per diluted share post-split in the year-ago quarter. Adjusted EBITDA loss, which excludes an approximate $5.9 million gain from the change in fare value of the warrant liability, gain from collections of an earn-out payment, and other non-cash items, was $9.8 million, which was just better than the top end of our guidance range. This compares the losses of $9.8 million in the prior quarter and $10.7 million in the year ago quarter.

Kathy: GAAP net loss was $3 8 million or 58 cents per diluted share compared to a loss of $12 2 million or <unk> 96 per diluted share in the prior quarter and compared to a net loss of $8 8 million or <unk> 70 per diluted share post split in the year ago quarter.

Kathy: Adjusted EBITDA loss, which excludes an approximate $5 9 million gain from the change in fair value of the warrant liability gain from collections of an earn out payment and other noncash items was $9 8 million.

Kathy: Which was just better than the top end of our guidance range. This.

Kathy: This compares to losses of $9 8 million in the prior quarter and $10 7 million in the year ago quarter.

Cathy Behnen: The contracted portion of the company's backlog now stands at $482 million. On the balance sheet, we have been able to utilize some excess material and bring inventory down to more normalized level. On cash, we ended the quarter with $5.9 million, although this does not include the up to $10 to $15 million from the upsizing of our notes offering, which is still expected to close in Q2. We also continue to have about $65 million dollars remaining under the ATM program at the end of the quarter.

Kathy: The contracted portion of the company's backlog now stands at $482 million.

Kathy: On the balance sheet, we have been able to utilize some excess material and bring inventory down to more normalized level.

Kathy: On cash we ended the quarter with $5 9 million. Although this does not include the up to $10 million to $15 million from the upsizing of our notes offering which is still expected to close in Q2.

Kathy: We also continue to have about $65 million remaining under the ATM program at the end of the quarter.

Cathy Behnen: With that, let us turn our focus to the outlook. As you may recall, on our fourth quarter call, we indicated that we expected 2025 revenue to be weighted toward the second half with a step up in the first quarter and another in the second half. That continues to be our expectation. Our targets for the second quarter call for the following revenue between $19 million and $24 million, which at the midpoint would show continued sequential growth relative to the first quarter. Non gap growth loss between 4.4 million dollars and 2 million dollars are between negative 23.4% and 8.5% of revenue.

Kathy: With that let us turn our focus to the outlook.

Kathy: As you may recall on our fourth quarter call. We indicated that we expected 2025 revenue to be weighted towards the second half with a step up in the first quarter and another in the second half that continues to be our expectation.

Kathy: Our targets for the second quarter call for the following revenue between $90 million and $24 million, which at the midpoint would show continued sequential growth relative to the first quarter non-GAAP gross loss between $4 4 million and $2 million or between negative.

Kathy: Negative 23, 4% and eight 5% of revenue.

Cathy Behnen: Non-GAAP operating expenses between $7.8 million and $8.6 million, and finally adjusted EBITDA loss between $13.3 million and $10 million. Looking beyond Q2, in addition to the second half revenue being larger than the first half, we continue to expect to achieve adjusted EBITDA breakeven on a quarterly basis within 2025.

Kathy: non-GAAP operating expenses between $7 8 million and $8 6 million and finally, adjusted EBITDA loss between $13 $3 million and $10 million.

Kathy: Looking beyond Q2 in addition to the second half revenue being larger than the first half we continue to expect to achieve adjusted EBITDA breakeven on a quarterly basis within 2025.

Kathy: With that we conclude our prepared remarks, and I'll turn it over to the operator for any questions operator.

Kathy: Thank you.

Kathy: At this time, we will conduct our question and answer session.

Unknown Executive: As a reminder, to ask a question, you will need to press star one, one on your telephone and wait for your name to be announced. So, if you draw your question, please press star one, one again. Please stand by while we compile the Q&A roster.

Kathy: As a reminder to ask a question you will need to press star one one on your Tom Mcfall and wait for your name to be announced so withdraw your question. Please press star one again.

Kathy: Please standby, while we compile the Q&A roster.

Jeff Osborne: Our first question comes from the line of Jeff Osborne with TD College. Your line is now open. Thanks. Good morning. Just a couple questions on my side.

Speaker Change: Our first question comes from the line of Jeff Osborne with TD colleagues. Your line is now open.

Jeff Osborne: Yeah. Thanks. Good morning, just a couple of questions on my side I was wondering if you could articulate if theres any exposure to tariffs for any of the components you might be purchasing motors or anything like that.

Yann Brandt: I was wondering if you could articulate if there's any exposure to tariffs for any of the components you might be purchasing, motors or anything Yeah, hey, Jeff. You know, from an exposure standpoint, certainly there are items that we import that would now be subject to the tariffs. We've, you know, the company has a really diversified supply chain, so we work to mitigate it in terms of the exposure to having to pay that. The majority of the tariff passed, you know, are passed through to the customers, whether they're UPCs or others contractually, you know, obviously we're always working hand in hand with our partners to work to mitigate it.

Speaker Change: Hey, Jeff.

Speaker Change: From an exposure standpoint, certainly there are items that we import that would now be subject to the tariffs.

Speaker Change: The company has a really diversified supply chain. So we worked to mitigate it in terms of.

Speaker Change: Those are tapping to pay that the.

Speaker Change: The majority of the.

Speaker Change: Tariff passed are pass through to the customers, whether upcs or others contractually obviously, we're always working hand in hand, with our partners to work to mitigate it.

Yann Brandt: And, you know, I would say that any impact here, you know, in Q1 and looking forward is really minimal at this point. It's great to hear.

Speaker Change: And I would say that any impact here.

Speaker Change: And Q Q1, and then looking forward is really minimal at this point.

That's great to hear and then maybe just along the same line of tariffs or the recent 80 CVD case. John I was curious are you have you seen a pickup in module change configurations for the backlog in recent weeks that might delay the timing or cadence of deliveries that you might have anticipated.

Yann Brandt: And then maybe just along the same line of tariffs or the recent ADCBD case, Yann, I was curious, have you seen a pickup in module... No, I mean, you know, I think largely supply chain had been anticipating the ADCVD results, right. So from a total exposure that the market had on mod on the modules and the impact, we haven't seen anything directly. I will say it is rare for a project You know, to at least not try to design a system with, you know, with a module change, or even with multiple module options, there's a lot of movement happening in the module side, which is, you know, obviously, from an architecture perspective, something that we at FTC can withstand, given that's agnostic from a design standpoint, you know, especially now with 52 gigawatts of module assembly here in the US, I think there's a lot of traction to move domestic.

Speaker Change: Painted a few weeks or months ago.

Speaker Change: I mean, I think largely supply chain.

Speaker Change: Had been anticipating the ADC <unk> resolves right. So.

Speaker Change: Total exposure that the market had an mob on the modules and the impact.

Speaker Change: We haven't seen anything directly.

Speaker Change: I will say it is rare for a project.

Speaker Change: At least not tried to design a system.

Speaker Change: With.

Speaker Change: With a module change or even with multiple module options.

Speaker Change: There is a lot of movement happening in the module side, which is.

Speaker Change: Obviously from an architecture perspective, something that we at FTC can can withstand.

Speaker Change: Given that's agnostic from a design standpoint.

Speaker Change: Especially now with 52 Gigawatts of module Assembly here in the U S.

Speaker Change: There's a lot of traction to move domestic.

Yann Brandt: But we haven't seen any project shifts because of the module.

Speaker Change: But we haven't seen any project shifts because of the module impacts.

Yann Brandt: It's great to hear.

Speaker Change: That's great to hear that's all I had thank you.

Jeff Osborne: That's all I have.

Unknown Executive: Thank you.

Unknown Executive: Great, thanks.

Speaker Change: Alright, Thanks John.

Unknown Executive: Thank you so much.

Speaker Change: Thank you so much.

Philip Shen: Our next question comes from the line of Philip Shen with Roth Capital Partners. Your line is now open. Hey guys, thanks for taking the questions. First one. Related to tariffs, but more for your customer base, I think, Yann, you mentioned that the pipeline, most of the pipeline is still moving to construction start. Some are waiting for clarity. And so I was wondering if you could talk through, you know, what percentage. of what you're expecting in the next 12 might be on hold.

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

Philip Shen: Hey, guys. Thanks for taking the questions first one.

Philip Shen: Related to tariffs, but more for your customer base I think John you mentioned that the pipeline most of the pipeline is still moving to construction starts but some are waiting for more clarity.

Philip Shen: So was wondering if you could talk through what percentage.

Philip Shen: What you're expecting in the next 12 months might be on hold as opposed to pre <unk>.

Yann Brandt: America and New Zealand is conspired in harmony as opposed to pre-liberation day. Yeah, I mean, look, I think, I think this is where, you know, my sentiment around operating flexibility comes hand in hand. And it's in partnership with, you know, our customers, oftentimes the EPC and their customer, or ultimately the asset owner and the IPP. I think it really comes down to, you know, the majority of any imports, what is the tariff impact? And what is the likelihood, you know, from a voiceover from the administration that a deal is pending? No one wants to pay tariffs needlessly.

Philip Shen: Liberation day.

Philip Shen: And.

Philip Shen: I have a follow up as well thanks.

Philip Shen: Okay.

Philip Shen: Yes, I mean look I think I think this is where my.

Philip Shen: My sentiment around operating flexibility comes hand in hand, and that's in partnership with our customers oftentimes, the EPC and their customer or ultimately the asset owner in the IPP.

Philip Shen: I think it really comes down to.

Philip Shen: The majority of any imports.

Philip Shen: What is the tariff impact and what is the likelihood from a voice over from the administration that a deal is pending.

Philip Shen: No one wants to pay tariffs needlessly. So I think folks are building in some flexibility into.

Yann Brandt: So I think folks are building in some flexibility into the overall timing. You know, there's some resequencing of projects that's currently happening, that just, you know, ships, you know, starts to certain portions of the project. So everything still remains largely on track. The question is, you know, how long is a, this wait and see period going to happen? You know, if the voiceover remains that, you know, for example, that the China tariffs are too high, and they'll come down, the question is, you know, not just for tracker parts, but for other components of the site, are we going to import something now, or are we waiting for the tariffs to come down?

Philip Shen: The overall timing there is some re sequencing of projects Thats currently happening.

Philip Shen: Ships starts to certain portions of the project. So everything's still remains largely on track. The question is.

Philip Shen: How long is this wait and see period going to happen.

Philip Shen: Voiceover remains that.

Philip Shen: For example, the China tariffs are too high.

Philip Shen: And they'll come down the question is not just for the tracker parts, but for other components.

Philip Shen: The site.

Philip Shen: Are we going to import something now or are we waiting for the tariffs to come down.

Yann Brandt: So, you know, I think everyone is, you know, not just FTC, but I think everyone across the supply chain, especially projects with batteries, or are looking at that closely. In the meantime, obviously, our supply chain team is working to ramp up additional capacity and markets that have lower tariffs or are sort of higher in the food chain of what appears to be trade deals in the making. You know, we already have a really diverse supply chain, in addition to a really robust capability set here domestically. So, you know, ultimately, we're mitigating everything we can for our customers, and, you know, projects still want to get built and get on track.

Philip Shen: So I think everyone is.

Philip Shen: Not just FTC, but I think everyone across the supply chain.

Philip Shen: Projects with batteries or are looking at that closely.

Philip Shen: In the meantime, obviously, our supply chain team is working to ramp up additional capacity in markets that have lower.

Philip Shen: Or sort of higher in the food chain of what appears to be trade sales in the making.

Philip Shen: We already have a really diverse supply chain. In addition to a really robust capability said here domestically.

Philip Shen: So ultimately we're mitigating everything we can for our customers.

Philip Shen: And.

Philip Shen: Projects still want to get built and get on track.

Yann Brandt: And I will say that there is some flexibility that I see on, you know, elasticity around the offtake. Certainly, the customers that need the energy are at the table as well. And I have heard of some conversations happening between asset owners and offtakers to understand what is the tariff impact and what is needed to overcome in order to keep project timelines on track. There's such a massive need for energy that there's, you know, a lot of people that want to keep timelines on track, but, you know, ultimately, clarity in the tariff universe is going to be helpful.

Philip Shen: I will say that there is some flexibility that IC on elasticity around the offtake certainly.

Philip Shen: Customers that need the energy are at the table as well.

Philip Shen: I have heard of some conversations happening between.

Philip Shen: Asset owners and off takers to understand what is the tariff impact and what what is needed to overcome in order to keep.

Philip Shen: Project timelines on track there is such a massive need for energy that there is a lot of people don't want to keep timelines on track, but ultimately clarity in the tariff universe is going to be helpful.

Speaker Change: Thanks, Sean.

Yann Brandt: Shifting to the other side of the coin of the same topic. So, you know, in terms of construction starts, we just talked about that, but then flipping over to, you know, the activity that is required today to be able to book. really develop projects for construction start and maybe back out next year or early 27 just curious to see if you're seeing some slowdown in that activity as well you know it's Yeah, I don't think development activity has slowed the what what what has, I think, taking, you know, taking a pause on is the negotiations between off takers and project owners.

Speaker Change: Turning to the other side of the coin at the same topic. So in terms of construction starts we just talked about that but then flipping over to the activity that is required today to be able to.

Speaker Change: Book.

Really develop projects for.

Construction start and maybe back half of next year or.

Speaker Change: 27, just curious to see if youre seeing some slowdown in that activity as well.

Speaker Change: Yes. It is.

Speaker Change: People I got to imagine are a little bit on pause as it kind of wade through and figure out what.

Speaker Change: What they can count on what they can.

Speaker Change: Yes, I don't think development activity has slowed.

Speaker Change: What what has I think.

Speaker Change: <unk> taken a pause on is the negotiations between off takers and project owners.

Yann Brandt: because it's really hard to understand what the pro forma looks like, both on the CAPEX side with, you know, sustained tariff levels, as well as, you know, what is the energy market. I mean, obviously, this is all kind of correlated. But the project developments themselves, I mean, I mentioned in my prepared remarks, we're seeing offtakers, both on the corporate side and utility side, participating in the M&A process where developers bringing capital in or selling the project to the ultimate asset owner, we're seeing offtakers actually participate and invest and drive, you know, sort of expansion of those sites, especially where sites have large interconnection and sort of infrastructure investments.

Speaker Change: It's really hard to understand what.

Speaker Change: What the pro forma looks like.

Speaker Change: Both on the Capex side with.

Speaker Change: Sustained tariff levels.

Speaker Change: As well as what is the energy market I mean, obviously this is all kind of correlate correlated.

Speaker Change: But the project developments themselves.

Speaker Change: And in my prepared remarks.

Speaker Change: Seeing off takers, both on the corporate side and utility side.

Speaker Change: Participating in the M&A process, where developers, bringing capital and or selling the project to the ultimate asset owner, we're seeing off takers actually participate and invest and drive.

Speaker Change: Sort of expansion of those sites, especially where sites have large interconnection and sort of infrastructure investments.

Yann Brandt: The corporates are really active in deploying capital and owning sort of that future pipeline. Solar certainly doesn't have any shortage of the opportunities to build projects, you know, getting them to start of construction, permitting, use permits locally, et cetera. I think that has always been, you know, one of the gating items that determines the funnel of how much is buildable. But You know, I think that's that that's how I would characterize it. If the tariff level is the tariff uncertainty, whereas we have a tariff, but the conversation is you know, it's coming down or a trade deal is coming.

Speaker Change: Corporates are really active in deploying capital and owning sort of that.

Speaker Change: Future pipeline.

Speaker Change: Solar certainly it doesn't have any shortage of opportunities to build projects.

Speaker Change: Getting them to start of construction permitting.

Speaker Change: Permits locally et cetera, I think that has always been one of the gating items that determines the funnel of how much is buildable.

Speaker Change: But.

Speaker Change: I think that that's how I would characterize it.

If there's if the tariff level, if the tariff uncertainty, whereas we have a tariff but the conversation is.

Speaker Change: It's coming down or trade deal is coming I think that's the the GAAP debt.

Yann Brandt: I think that's the the gap that Great.

Speaker Change: I would I would be hesitant to determine what the impact would be from a timing perspective.

Speaker Change: Again, nobody wants to pay a tariff that they expect to go away in the coming weeks or relatively.

Speaker Change: The low number of months.

Speaker Change: So thats the kind of operating flexibility, where you would bring to our customers having the domestic content capabilities.

Speaker Change: Goes a long way.

Speaker Change: Certainly across the board.

Unknown Executive: Thank you, Yann, for the caller.

Speaker Change: Great. Thank you John for the color I'll pass it on.

Unknown Executive: I'll pass. Thank you so much.

Speaker Change: Thank you so much.

Unknown Executive: As a reminder, to ask a question on your telephone, you will need to press star 1 1 and wait for your name to be announced. To withdraw your question, please press star 1 1 again.

As a reminder to ask a question on your telephone you will need to press star one one away from.

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Unknown Executive: One moment for our next question, please.

Speaker Change: One moment for our next question please.

Ahmed Dow: Our next question comes from the line of Ahmed Dow with H.C. Wainwright. Your line is now open. Thank you. Good morning, everyone.

Speaker Change: Our next question comes from the line of Amit Dayal with H C. Wainwright. Your line is now open.

Amit Dayal: Thank you and good morning, everyone just on the gross margin.

Ahmed Dow: Just on the gross margin and, you know, positive adjusted EBITDA, these run rate level expectations going into the end of this year, in the face of all these uncertainties, you know, could you maybe give some color on, you know, what is driving those expectations? Is it just higher volumes you're expecting to deploy? Or is there any pricing related, you know, factors as well that, you know, gives you that level of visibility right now? Yeah, no, thanks for the question. I mean, look, the I keep saying it obviously since since I've gotten here last year. FTC is at this inflection point, right?

Speaker Change: As to adjusted EBITDA, or DCF 100 level expectations going into the end of this year.

Speaker Change: In the face of all these uncertainties could you maybe give some color on what is driving those expectations is it just higher volumes you're expecting to deploy it.

Speaker Change: Is there any pricing related.

Speaker Change: Factors around that.

Speaker Change: It gives you that level of visibility right now.

Speaker Change: Yes, no. Thanks for the question I mean look the.

Speaker Change: Okay.

Speaker Change: I keep saying it obviously since since I've gotten here.

Speaker Change: Last year.

Speaker Change: FCC is at this inflection point right FTC as this legacy of.

Cathy Behnen: FTC has this legacy of being in the 2P category, which certainly is the DNA that feeds it. And now we've been in this ramp up of 1P deployment. You know, we have signed more work, you know, and accelerated sort of the recognition of that backlog in recent months. And You know, more than anything, we're starting to see almost every single project that's going out to bid to our peers who are much larger, but they've been in the one key category now for many more years than we have with, you know, with our product really resonating with EPCs around the speed of use, the ease of use, it makes it, you know, a compelling case.

Speaker Change: Being in the <unk> category.

Speaker Change: Certainly as the DNA that feeds that and now we've been in this ramp up of <unk> deployment.

Speaker Change: We have signed more work.

Speaker Change: And accelerated the recognition of that backlog.

Speaker Change: In recent months and.

Speaker Change: More than anything we're starting to see almost every single project, that's going out to bid to our peers, who are much larger but they've been in the <unk> category now for.

Speaker Change: Many more years than we have.

Speaker Change: With our product really resonating with epc's around the speed of use the ease of use it makes it.

Speaker Change: Compelling case.

Cathy Behnen: And so it's that pull through and that taking of market share, you know, we, because there's two things, right, was one taking share from our peers, but also, you know, some of the landscape of tracker providers is, is actively changing. So there's some open market share to be had. FTC really finds itself, I would say, from a volumetric standpoint, you know, looking at 2024 volumes, you know, much lower than where we anticipate and see the growth coming from. And that's, I think, where our confidence level comes in at in terms of what is, what is the right volume as we grow and take share in a competitive marketplace where we have a really compelling and the newest technology in the market, which I think on almost every feature set stands on top against our peers.

Speaker Change: And so it's that pull through in that taking of market share.

Speaker Change: Because there's two things right was one taking share from our peers, but also some of the landscape of tracker providers as.

Speaker Change: As actively changing so there are some.

Speaker Change: Open market share to be had.

Speaker Change: FTC really finds itself I would say from a volumetric standpoint looking at 2020 for volumes.

Speaker Change: Much lower than where we anticipate and see the growth coming from.

Speaker Change: I think where our confidence level comes in that in terms of what is what is the right volume as we grow and take share.

Speaker Change: The competitive marketplace, where we have a really compelling.

Speaker Change: And the newest technology in the market, which I think almost every feature set stands on top against our peers.

Cathy Behnen: So in that context, you know, what are the plans for 2P, is this slowly going to be phased out and you'll just be made mainly focused on growing, you know, the 1P pipeline and revenue? Yeah, look, 1P represents 90% of our bidding volume. There are markets where 2P works. You have to have the right, you know, sort of environmental situations, you know, I mean, they're much too, because 2P now is 2P with larger modules than when it was originally architected. So there are some US markets where 2P has a place. There are some European geographies where 2P is especially compelling, you know, especially where, you know, the agricultural solar farms come into play.

Speaker Change: So in that context, what are the plans for <unk> is this really going to be phased in.

Speaker Change: <unk> uses be made mainly focused on growing the <unk> pipeline and revenues.

Speaker Change: Yes look <unk> represents 90% of our billing billing volume there are markets, where <unk> works.

Speaker Change: You have to have the right.

Speaker Change: Sort of environmental situations I mean, there are much too because two P. Now is <unk> with larger modules than when it was originally architected.

Speaker Change: So there are some U S markets, where <unk> has a place there are some European.

Speaker Change: Geographies, where <unk>.

Speaker Change: It is especially compelling, especially where.

Speaker Change: The agricultural.

Speaker Change: Solar farms.

Speaker Change: Come into play.

Cathy Behnen: So we, you know, do we invest a lot into the further development of 2P? We don't, that certainly is not a priority. You know, our focus is, you know, having a really strong 1P pioneer platform. And then, you know, we've added all these amazing features, you know, high wind, you know, high wind is in the entire Southeast United States now. The overlap of high wind with, you know, having amazing hailstow and asset management capabilities, you know, as well as the flood impact. Right. So. The flood maps and the flood insurance is certainly playing a role now.

Speaker Change: So do we invest a lot into the further development of <unk>, we don't.

Speaker Change: That certainly is not a priority.

Speaker Change: Our focus is having a really strong <unk> pioneer platform and then.

Speaker Change: We've added all these amazing features high winds high windows in the entire southeast United States now the overlap of high wind with.

Speaker Change: Having amazing hailstone.

Speaker Change: Asset management capabilities as.

Speaker Change: As well as the flood impact right. So.

Speaker Change: Flood maps in the flood insurance is certainly playing a role now so building out the <unk> platform I think helping customers get the right project designed in the right Capex box that Theyre looking for that's the type of value proposition and it kind of transcends the conversation around price alone because it's the overall value that.

Cathy Behnen: So building out that 1P platform, I think helping customers get the right project designed in the right capex box that they're looking for. That's the type of value proposition. And it kind of transcends the conversation around price alone, because it's the overall value that the FTC platform can bring to the table and, you know, what ultimately will drive and feed our growth. Understood.

Speaker Change: The FTC platform can bring to the table.

Speaker Change: And what ultimately will drive and feed our growth.

Unknown Executive: Yeah, that's all I have guys. Thank you for the call. Thank you so much. All right. I am showing no further questions at this time. Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. Thank you for watching! Good day, and thank you for standing by.

Speaker Change: Understood. That's all I have guys. Thank you for the color I appreciate it.

Speaker Change: Great. Thanks.

Speaker Change: Thank you so much.

Speaker Change: Alright.

Speaker Change: Im showing.

Speaker Change: No further questions at this time.

Speaker Change: 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 day, and thank you for standing by and welcome to the FTC Solar first quarter 2025 earnings conference call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question.

Unknown Executive: Welcome to the FTC Solar First Quarter 2025 Earnings Conference Call. At this time, all participants are in the listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star-one-one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star-one-one again.

Speaker Change: During this session you will need to press star one one on your telephone you have been here automated message advisor your hand is wage.

Speaker Change: Draw. Your question. Please press star one again.

Unknown Executive: Please be advised that today's conference is being recorded.

Speaker Change: Please be advised that today's conference is being recorded I would now.

Bill Michalek: I would now like to hand the conference over to your first speaker today, Bill Michalek, Vice President, Investor Relations. Please go ahead.

Speaker Change: Now like to hand, the conference over to your first Speaker today, Bill Mitchell Vice President Investor Relations. Please go ahead.

Bill Michalek: Thank you and welcome everyone to FTC Solar's first quarter 2025 earnings conference call. Before today's call, you may have reviewed our earnings release slide presentation and supplemental financial information which were posted earlier today. If you've not reviewed these documents, they're available on the investor relations section of our website at ftcsolar.com.

Speaker Change: Thank you and welcome everyone to <unk> first quarter 2025 earnings conference call.

Speaker Change: Before today's call you may have reviewed our earnings release slide presentation, and supplemental financial information, which are posted earlier today.

Speaker Change: If you have not reviewed these documents they are available on the Investor Relations section of our website at MPC, So dot com.

Speaker Change: I'm joined today by John Brandt, the company's President and Chief Executive Officer, Kathy vein, and the company's Chief Financial Officer, and Patrick the company's head of capital markets and BD.

Speaker Change: The forward looking statements include risks and uncertainties and actual results and events could differ materially from our current expectations.

Speaker Change: As you would expect we will discuss both GAAP and non-GAAP financial measures. Today. Please note that the earnings release issued this morning includes a reconciliation of each non-GAAP financial measure to the nearest the book both GAAP measure.

Yann Brandt: With that, I'll turn the call over to Yann. Thanks, Bill and good morning. Everyone. It has only been a month since our last call. So we'll keep it brief. During the past two earnings call, I've shared my observations on the company and the progress that's been made toward a primary focus of shoring up near-term backlog while adding incremental liquidity to the business. Slide three of our presentation today provides a summary of some of that progress. As you can see, we have added multiples of our current annual revenue run rate to our backlog, signed agreements totaling more than six and a half gigawatts with tier one accounts, along with other awards added or announced more than $30 million in additional liquidity for our balance sheet, strengthen our sales team, further strengthen our product offering capabilities, and increase our commercial traction with bids on many gigawatts of future projects.

John: With that I'll turn the call over to John.

John: Thanks, Bill and good morning, everyone. It has only been a month since our last call. So we'll keep it brief today.

John: During the past two earnings call I shared my observations on the company and the progress that's been made towards our primary focus of shoring up near term backlog, while adding incremental liquidity to the business slide three of our presentation. Today provides a summary of some of that progress.

John: Traction with bids on many gigawatts of future projects.

John: Already is to demonstrate continued progress and convert those wins and backlog into sustainable growth and profitability and after our revenue trough in Q3 of last year, we have 17 sequential growth of 30% and 58% in Q4 and Q1, respectively.

John: While these are nice percentage improvements, we still have a long way to go to get our revenue to where it needs to be to.

Yann Brandt: To that end, I thought it'd be good to provide a little bit of additional color on the positioning improvements we've made and how that activity will lead to even stronger revenue growth. To best understand the future possibilities of FTC, it's helpful to look at the past. All technology markets rotate as companies use innovation to leapfrog peers based on features and product portfolios. As many of you know, FTC's reputation has centered primarily on ease of use or constructability and service. The company broke into the market and won tier one developer and EPC business because it brought a new differentiated and easy to use tracker to the market.

John: To best understand the future possibilities of FTC, it's helpful to look at the past.

John: All technology markets rotate as companies use innovation to leapfrog peers based on features and product portfolios.

John: As many of you know FTC's reputation is centered primarily on the ease of use or construct ability and service the.

John: The company broke into the market and one tier one developer and EPC business, because it brought a new differentiated and easy to use tracker to the market.

John: <unk> was the unquestionable leader in the <unk> market. However that market has been strong as the size and availability of module has reduced the demand for the <unk> architecture.

John: Many of our customers still view <unk> as a product they love, but only use it in unique situations.

John: I greatly expand our served market and address market demand increasingly centered around one P. FTC introduced its first <unk> solution pioneer leveraging all of the innovations and benefits of its two P sibling as well as an understanding of the full market landscape. While initially relatively narrow in scope. Our <unk> product line has since been greatly expanded.

Yann Brandt: Our 1P additions have included high wind offerings that extend up to 150 miles per hour, compatibility for dozens of new modules and module manufacturers, now covering all module types, including ultra large format and first solar family of modules. The ability for customers to make changes to module specifications late in the design process, which gives them significant flexibility and inherent architecture difference from the older legacy 1P systems in the market. Multiple features that reduce civil construction cut and fill with our terrain following options, including our new dual road track. The largest range of STO in the market for customized asset management, which is digitally controlled in our SunOps platform, integrated with weather stations and third party alert systems. and 100% domestic content capabilities starting in Q3, to name a few.

John: Multiple features that reduced civil construction cut and fill with our terrain following options, including our new dual road tracker.

John: The largest range of so in the market for customized asset management, which is digitally controlled and our son ops platform integrated with weather stations in third party alert systems.

John: And 100% domestic content capabilities, starting in Q3 to name a few.

John: That we have actively sought out we can be relatively nimble as a company and view this as an opportunity to help our partners with their entire portfolio of assets and will help where we can.

Yann Brandt: And our engineering and R&D teams have a full portfolio of incremental initiatives in progress to provide additional customer benefits, as well as further improve our cost structure. This compelling product line, along with the enhancements to our sales team and process, has led to a significant increase in customer interest and activity. For example, customer visits to our product demonstration facilities have increased considerably. Over the past 6 and 9 months, visits are up 100% and 240%, respectively, versus a comparable year earlier period. Bidding volume has increased considerably as well, and the first quarter bid volume was up 60% versus a year ago, and the project size of our average bid is up as well, up 65% versus a year.

John: This compelling product line, along with the enhancements to our sales team and process has led to a significant increase in customer interest and activity.

John: For example, customer visits to our product demonstration facilities have increased considerably over the past six to nine months visits are up 100% and 240% respectively versus the comparable year earlier periods.

John: Bidding volume has increased considerably as well in the first quarter bid volume was up 60% versus a year ago and the project size of our average bid is up as well up 65% versus a year ago.

Yann Brandt: And notably, our customer access or visibility has greatly improved. In fact, we believe we now are seeing almost every project that our peers do, even though they are significantly larger than us at this moment. We're getting the looks, and this was not the case just a few quarters ago. The innovation and expansion of a 1P offering and the ability to install FTC trackers easier, faster and safer is incredibly valuable for our customers. That's a major part of what's allowing us to get these looks and to win significant tier one business and head to head competition with our larger Overall, 1P now represents 90% of all bidding.

John: We're getting the luxe and this was not the case just a few quarters ago.

Yann Brandt: From a market perspective, we're all aware that there's a fair amount of static or uncertainty in the market between the tariffs, duties, and changes to permitting processes. Most of our pipeline continues to move through the process steps toward the start of construction. But with the expectation of trade deals, we also see customers waiting for additional clarity. While our team has done a great job positioning the company with robust diversified supply chain, trackers are only a piece of the overall equation which can include inverters, batteries, and modules from many different geographies. We'll continue to work closely with our clients and stay flexible on the timing of import, how quickly clarity comes could determine the size and scope of any air pocket or disruption we could see in the market.

John: Yeah.

John: From a market perspective, we're all aware that there's a fair amount of static or uncertainty in the market between the tariffs duties and changes the permitting processes.

John: Our pipeline continues to move through the process steps towards the start of construction, but with the expectation of trade deals. We also see customers waiting for additional clarity.

John: <unk> Wen by all accounts it appears that the tariffs will be reduced significantly or eliminated altogether.

John: Yeah.

John: Let me take a moment to give you my view of the current solar market a market I've been working for nearly 20 years. The good news is that even though there are cross winds the demand for solar generation is as high as I've ever seen it looking at developments nearing the startup construction phase. It is typical to see a competitive market for investments and acquisitions of those projects the big.

John: The project and the bigger the demand to Abbott built.

Yann Brandt: What is unique about the current solar market is that the offtakers, the companies and utilities, are actively involved in the late stages of development and investment. Especially corporate customers with a pipeline of data centers are deploying capital into solar developers to gain an inside track for the generation to get built bigger and On the legislative front, I am optimistic on the progress that the solar industry is making and advocating for the continuation for the investment tax credit and 45X manufacturing credits. Both play a crucial role in continuing the growth rate of the solar market, which is currently the most critical part of America's energy resource addition.

John: What is unique about the current solar market is that the off takers to companies and utilities are actively involved in the late stages of development and investments.

John: Especially corporate customers, where the pipeline of Datacenters are deploying capital into solar developers to gain an inside track for the generation to get built bigger and faster.

John: On the Legislative front I'm optimistic on the progress that the solar industry is making in advocating for the continuation for the investment tax credit and 45 ex manufacturing credits both play a crucial role in continuing the growth rate of the solar market, which is currently the most critical part of America energy resource additions elected officials are recognized.

John: And the importance that solar plays across the country and across the political spectrum.

John: FTC is actively involved in our trade associations efforts to advocate for the solar market and ensuring the best possible outcome.

Yann Brandt: At the end of the day, solar has the most robust short-term pipeline that provides clean and cheap electricity for millions of consumers and businesses, and I believe the U.S. should do everything possible to build as much solar as we can to minimize energy prices and maintain American energy security and dominance.

John: At the end of the day solar has the most robust short term pipeline that provides clean and cheap electricity for millions of consumers and businesses and I believe the U S should do everything possible to build as much solar as we can to minimize energy prices and maintain American energy security of dominance.

Yann Brandt: So right now we have $482 million in contracted backlog. I believe our expanded offering and increased bidding activity will support continued backlog addition. Overall, I'm very bullish on the long-term potential and prospects for FTC Solar. We're positioned in the strong, long-term growth industry with the right combination of people and products, providing the best value for our customers. Interest and demand for our solutions are increasing and should position us for long-term sustainable revenue.

John: So right now we have $482 million in contracted backlog I believe our expanded offering and increased bidding activity will support continued backlog additions overall I am very bullish on the long term perpetual and prospects for FTC solar.

We're positioned in the strong long term growth industry with the right combination of people and products, providing the best value for our customers interest and demand for our solutions are increasing and should position us for long term sustainable revenue growth.

Cathy Behnen: With that, I'll turn it over to. Thanks, Yann, and good morning, everyone.

Kathy: With that I'll turn it over to Kathy.

Kathy: Thanks, John and good morning, everyone I'll provide some additional color on our first quarter performance and our outlook.

Cathy Behnen: I'll provide some additional color on our first quarter performance and our outlook. Beginning with a discussion of the first quarter, revenue came in at $20.8 million, which was just above the high end of our guidance range of 18 to This revenue level represents an increase of 58% compared to the prior quarter and an increase of 65% compared to the year earlier quarter due to higher product volume. Gap gross loss was $3.4 million or 16.6% of revenue compared to gross loss of $3.8 million or 29.1% of revenue in the prior quarter. Non-GAAP growth loss was $3 million or 14.4% of revenue above the midpoint of our guidance.

Kathy: Beginning with the discussion of the first quarter revenue came in at $28 million, which was just above the high end of our guidance range of 18 to 20.

Kathy: This revenue level represents an increase of 58% compared to the prior quarter and an increase of 65% compared to the year earlier quarter due to higher product volumes.

Kathy: GAAP gross loss was $3 4 million or 16, 6% of revenue compared to gross loss of $3 8 million or 29, 1% of revenue in the prior quarter.

Kathy: non-GAAP gross loss was $3 million or 14, 4% of revenue above the midpoint of our guidance.

Cathy Behnen: The results for this quarter compared to non-GAAP gross loss of $3.4 million are 25.6% of revenue in the prior quarter. Gap operating expenses were $7.1 million. On a non-gap basis, excluding stock-based compensation and certain other costs, operating expenses were $6.6 million, down from $8.7 million in the same quarter last year and $7.4 million in the prior quarter.

Kathy: The results for this quarter compared to non-GAAP gross loss of $3 4 million or 25, 6% of revenue in the prior quarter.

Kathy: GAAP operating expenses were $7 1 million.

Kathy: On a non-GAAP basis, excluding stock based compensation and certain other costs operating expenses were $6 6 million.

Kathy: Down from $8 7 million in the same quarter last year and $7 4 million in the prior quarter.

Cathy Behnen: This represents the sixth consecutive quarter of OPEX reduction and our lowest level since 2020, which was before we were a public company, as we continue to control costs. Gap net loss was $3.8 million, or $0.58 per diluted share, compared to a loss of $12.2 million, or $0.96 per diluted share in the prior quarter, and compared to a net loss of $8.8 million, or $0.70 per diluted share post-split in the year-ago quarter. Adjusted EBITDA loss, which excludes an approximate $5.9 million gain from the change in fair value of the warrant liability gained from collections of an earn out payment and other non-cash items was $9.8 million, which was just better than the top end of our guidance range.

Kathy: This represents the sixth consecutive quarter of Opex reduction and our lowest level since 2020, which was before we were a public company as we continue to control cost.

Kathy: Which was just better than the top end of our guidance range. This.

Cathy Behnen: This compares the losses of $9.8 million in the prior quarter and $10.7 million in the year-ago quarter. The contracted portion of the company's backlog now stands at $482 million. On the balance sheet, we have been able to utilize some excess material and bring inventory down to more normalized level. On cash, we ended the quarter with $5.9 million, although this does not include the up to $10 to $15 million from the upsizing of our notes offering, which is still expected to close in Q2. We also continue to have about $65 million dollars remaining under the ATM program at the end of the quarter.

Kathy: This compares to losses of $9 8 million in the prior quarter and $10 7 million in the year ago quarter.

Kathy: The contracted portion of the company's backlog now stands at $482 million.

Kathy: On the balance sheet, we have been able to utilize some excess material and bring inventory down to more normalized level.

Kathy: We also continue to have about $65 million remaining under the ATM program at the end of the quarter.

Cathy Behnen: With that, let us turn our focus to the outlook. As you may recall, on our fourth quarter call, we indicated that we expected 2025 revenue to be weighted toward the second half with a step up in the first quarter and another in the second half. That continues to be our expectation. Our targets for the second quarter call for the following revenue between $19 million and $24 million, which at the midpoint would show continued sequential growth relative to the first quarter non gap growth loss between $4.4 million and $2 million or between negative 23.4% and 8.5% of revenue.

Kathy: With that let us turn our focus to the outlook as.

Kathy: Our targets for the second quarter call for the following revenue between $90 million and $24 million, which at the midpoint with show continued sequential growth relative to the first quarter non-GAAP gross loss between $4 4 million and $2 million.

Kathy: Or between negative <unk> 23, 4% and eight 5% of revenue.

Kathy: non-GAAP operating expenses between $7 8 million and $8 6 million and finally, adjusted EBITDA loss between $13 $3 million and $10 million.

Kathy: Looking beyond Q2 in addition to the second half revenue being larger than the first half we continue to expect to achieve adjusted EBITDA breakeven on a quarterly basis within 2025.

Unknown Executive: With that, we conclude our prepared remarks, and I will turn it over to the operator for any questions. Operator? Thank you. At this time, we will conduct our question and answer session. As a reminder, to ask a question, you will need to press star one, one on your telephone and wait for your name to be announced. So if draw your question, please press star one, one again. Please stand by while we compile the Q&A roster.

Kathy: With that we conclude our prepared remarks, and I will turn it over to the operator for any questions operator.

Kathy: Thank you.

Speaker Change: At this time, we will conduct our question and answer session. As a reminder to ask a question you will need to press star one one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again, please standby, while we compile the Q&A roster.

Speaker Change: Okay.

Jeff Osborne: Our first question comes from the line of Jeff Osborne with T.D. Cohen. Your line is now open. Thanks. Good morning. Just a couple questions on my side.

Speaker Change: Our first question comes from the line of Jeff Osborne with TD Cowen. Your line is now open.

Yann Brandt: I was wondering if you could articulate if there's any exposure to tariffs for any of the components you might be purchasing, motors or anything Yeah, hey, Jeff. You know, from an exposure standpoint, certainly there are items that we import that would now be subject to the tariffs. We've, you know, the company has a really diversified supply chain, so we work to mitigate it in terms of the exposure to having to pay that. The majority of the tariff passed, you know, are passed through to the customers, whether they're UPCs or others. Contractually, you know, obviously, we're always working hand in hand with our partners to work to mitigate it.

Speaker Change: Hey, Jeff.

Speaker Change: From an exposure standpoint, certainly there are items that we import that would now be subject to the tariffs.

Speaker Change: Yes.

Speaker Change: He has a really diversified supply chain. So we worked to mitigate it.

Speaker Change: So those are tapping to pay that debt.

Speaker Change: The majority of the tariff passed are pass through to the customers, whether they're <unk> or others contractually. Obviously, we're always working hand in hand, with our partners to work to mitigate it.

Yann Brandt: And, you know, I would say that any impact here, you know, in Q1 and looking forward is really minimal at this point.

Speaker Change: And I would say that any impact here.

Speaker Change: In Q Q1, then looking forward is really minimal at this point.

Unknown Executive: It's great to hear.

Yann Brandt: And then maybe just along the same line of tariffs or the recent ADCBD case, Yann, I was curious, have you seen a pickup in module... Configurations for the backlog in recent weeks that might then delay, you know, the timing or cadence of deliveries that you might have anticipated a few weeks ago or months ago. No, I mean, you know, I think largely supply chain had been anticipating the ADCVD results, right. So from a total exposure that the market had on mod on the modules and the impact, we haven't seen anything directly. I will say it is rare for a project.

Speaker Change: That's great to hear and then maybe just along the same line of tariffs or the recent 80 CVD case.

Speaker Change: Curious are you have you seen a pickup in module change configurations for the backlog in recent weeks that might delay the timing or cadence of deliveries that you might have anticipated a few weeks or months ago.

Speaker Change: I mean, I think largely supply chain.

Speaker Change: Had been anticipating the ADC vd resolves right so from a <unk>.

Total exposure that the market had on mod on the modules and the impact.

Speaker Change: We haven't seen anything directly.

Speaker Change: I will say it is rare for a project.

Yann Brandt: You know, to at least not try to design a system with, you know, with a module change, or even with multiple module options, there's a lot of movement happening in the module side, which is, you know, obviously, from an architecture perspective, something that we at FTC can withstand, given that's agnostic from a design standpoint, you know, especially now with 52 gigawatts of module assembly here in the US, I think there's a lot of traction to move domestic. But we haven't seen any project shifts because of the module.

Speaker Change: At least not tried to design a system.

Speaker Change: With.

Speaker Change: With a model change or even with multiple module options.

Speaker Change: There is a lot of movement happening in the module side, which is.

Speaker Change: Obviously from an architecture perspective, something that we at FCC can can withstand.

Speaker Change: Given that's agnostic from a design standpoint.

Speaker Change: Especially now with 52 Gigawatts of module Assembly here in the U S.

Speaker Change: There's a lot of traction to move domestic.

Speaker Change: But we haven't seen any project shifts because of the module impacts.

Unknown Executive: It's great to hear.

Unknown Executive: That's all I have. Thank you. Thanks. Thank you so much.

Speaker Change: That's great to hear that's all I had thank you.

Speaker Change: Okay. Thanks, Sean.

Speaker Change: Thank you so much.

Philip Shen: Our next question comes from the line of Philip Shen with Roth Capital Partners. Your line is now open. Hey guys, thanks for taking the questions. First one.

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

Philip Shen: Hey, guys. Thanks for taking the questions first one.

Yann Brandt: Related to tariffs, but more for your customer base, I think, Yann, you mentioned that the pipeline, most of the pipeline is still moving to construction start. Some are waiting for clarity. And so I was wondering if you could talk through, you know, what percentage. of what you're expecting in the next 12 might be on hold. Those two pre-liberation day and I have a follow-up. Yeah, I mean, look, I think, I think this is where, you know, my sentiment around operating flexibility comes hand in hand. And it's in partnership with, you know, our customers, oftentimes the EPC and their customer, or ultimately the asset owner in the IPP.

Speaker Change: Related to tariffs, but more for your customer base I think John you mentioned that the pipeline most of the pipeline is still moving to construction starts but some are waiting for more clarity.

Speaker Change: So was wondering if you could talk through what percentage.

Speaker Change: What you're expecting in the next 12 months might be on hold as opposed to pre go live.

Speaker Change: Liberation day.

Speaker Change: And.

Speaker Change: I have a follow up as well thanks.

Speaker Change: Okay.

Speaker Change: Yes, I mean look I think I think this is where my.

Speaker Change: My sentiment around operating flexibility comes hand in hand, and it's in partnership with our customers oftentimes, the EPC and their customer or ultimately the asset owner in the IPP.

Yann Brandt: I think it really comes down to, you know, the majority of any imports, what is the tariff impact? And what is the likelihood, you know, from a voiceover from the administration that a deal is pending? No one wants to pay tariffs needlessly. So I think folks are building in some flexibility into the overall timing. You know, there's some re-sequencing of projects that's currently happening that just, you know, ships, you know, starts to certain portions of the project. So everything still remains largely on track. The question is, you know, how long is this wait and see period going to happen?

Speaker Change: I think it really comes down to.

Speaker Change: The majority of any imports.

Speaker Change: What is the tariff impact and what is the likelihood from a voiceover from the administration that a deal is pending.

Speaker Change: No one wants to pay tariffs needlessly. So I think folks are building in some flexibility into.

Speaker Change: The overall timing there is some re sequencing of projects Thats currently happening.

Speaker Change: Ships starts to certain portions of the project. So everything is still remains largely on track. The question is how long is this wait and see period going to happen.

Yann Brandt: You know, if the voiceover remains that, you know, for example, that the China tariffs are too high and they'll come down, the question is, you know, not just for tracker parts, but for other components of the site, are we going to import something now, or are we waiting for the tariffs to come down? So, you know, I think everyone is, you know, not just FTC, but I think everyone across the supply chain, especially projects with batteries, or are looking at that closely. In the meantime, obviously, our supply chain team is working to ramp up additional capacity and markets that have lower tariffs or are sort of higher in the food chain of what appears to be trade deals in the making.

Speaker Change: If the voiceover remains that.

Speaker Change: For example, the China tariffs are too high.

Speaker Change: And they'll come down the question is not just for tracker parts, but for other components of the site.

Speaker Change: Are we going to import something now or are we waiting for the tariffs to come down.

So I think everyone is.

Speaker Change: Not just the FTC, but I think everyone across the supply chain.

Speaker Change: Especially projects with batteries or are looking at that closely.

Speaker Change: In the meantime, obviously, our supply chain team is working to ramp up additional capacity in markets that have lower.

Or sort of higher in the food chain of what appears to be trade deals in the making.

Yann Brandt: You know, we already have a really diverse supply chain, in addition to a really robust capability set here domestically. So, you know, ultimately, we're mitigating everything we can for our customers and, you know, projects still want to get built and get on track. And I will say that there is some flexibility that I see on, you know, elasticity around the offtake. Certainly, the customers that need the energy are at the table as well, and I have heard of some conversations happening between asset owners and offtakers to understand what is the tariff impact and what is needed to overcome in order to keep project timelines on track.

Speaker Change: We already have a really diverse supply chain. In addition to a really robust capability said here domestically.

Speaker Change: So ultimately where we're mitigating everything we can for our customers and.

Speaker Change: Projects don't want to get built and get on track.

Speaker Change: And I will say that there is some flexibility that IC on elasticity around the offtake.

Speaker Change: Certainly.

Speaker Change: The customers that need the energy are at the table as well.

Speaker Change: And I have heard of some conversations happening between.

Asset owners and off takers too.

Speaker Change: Understand what is the tariff impact and what what is needed to overcome in order to keep.

Yann Brandt: There's such a massive need for energy that there's, you know, a lot of people that want to keep timelines on track, but, you know, ultimately, clarity in the tariff universe is going to be helpful.

Speaker Change: Our timelines on track there is such a massive need for energy that there is a lot of people don't want to <unk>.

Speaker Change: <unk> timelines on track, but ultimately clarity in the tariff universe is going to be helpful.

Yann Brandt: Shifting to the other side of the coin of the same topic. So in terms of construction starts, we just talked about that, but then flipping over to the activity that is required today, to be able to book. Meetings with Solarospace Managers. limit solutions.

Speaker Change: Thanks, Sean.

Speaker Change: Shifting to the other side of the coin at the same topic.

Speaker Change: In terms of construction starts we just talked about that but then flipping over to the.

Speaker Change: The activity that is required today to be able to book.

Speaker Change: Book.

Speaker Change: Developed projects for.

Speaker Change: Construction start and maybe back half of next year or.

Speaker Change: Early 'twenty seven just curious to see if youre seeing some slowdown in that activity as well.

Yann Brandt: Thank you so much everyone for joining me today. Thank you when you need us, just email us at GuansoMach. Yeah, I don't think development activity has slowed. What has, I think, taking, you know, taking a pause on is the negotiations between offtakers and project owners. Because it's really hard to understand what the pro forma looks like, both on the CAPEX side with, you know, sustained tariff levels, as well as, you know, what is the energy market. I mean, obviously, this is all kind of correlated. But the project developments themselves, I mean, I mentioned in my prepared remarks, we're seeing offtakers, both on the corporate side and utility side, participating in the M&A process, where developers bringing capital in or selling the project to the ultimate asset owner, we're seeing offtakers actually participate and invest and drive, you know, sort of expansion of those sites, especially where sites have large interconnection and sort of infrastructure investments.

Speaker Change: It is.

Speaker Change: People I got to imagine are a little bit on pause as it kind of Wade through and figure out what they can count on and what they can't.

Speaker Change: Yes, I don't think development activity has slowed the what.

Speaker Change: What has I think taking taken a pause on is the negotiations between off takers and project owners.

Speaker Change: Because it's really hard to understand what.

Speaker Change: What the pro forma looks like.

Speaker Change: On the Capex side with <unk>.

Speaker Change: Sustained tariff levels as.

Speaker Change: As well as what is the energy market I mean, obviously this is all kind of correlate correlated.

Speaker Change: But the project developments themselves.

Speaker Change: Mentioned that in my prepared remarks, we're seeing off takers, both on the corporate side and utility side.

Speaker Change: Participating in the M&A process, where developers, bringing capital and are selling the project.

Speaker Change: To the ultimate asset owner.

Speaker Change: Off takers actually participate and invest and drive.

Speaker Change: Sort of expansion of those sites, especially where sites have large interconnection and sort of infrastructure investments.

Yann Brandt: The corporates are really active in deploying capital and owning sort of that future pipeline. Solar certainly doesn't have any shortage of the opportunities to build projects, you know, getting them to start of construction, permitting, use permits locally, et cetera. I think that has always been, you know, one of the gating items that determines the funnel of how much is buildable. But You know, I think that's that that's how I would characterize it. If the tariff level, if the tariff uncertainty, whereas we have a tariff, but the conversation is you know, it's coming down or a trade deal is coming.

Speaker Change: Corporates are really active in the <unk>.

Speaker Change: <unk> capital and owning sort of that.

Speaker Change: Future pipeline.

Speaker Change: Solar certainly it doesn't have any shortage of the opportunities to build projects.

Speaker Change: Getting them to startup construction permitting.

Speaker Change: Permits locally et cetera, I think that has always been one of the gating items that determines the funnel of how much is buildable.

Speaker Change: But.

Speaker Change: I think that's that's how I would characterize it.

Speaker Change: If this if the tariff level, if the tariff uncertainty, whereas we have a tariff but the conversation is.

Speaker Change: It's coming down or a trade deal is coming I think that's the the GAAP debt.

Unknown Executive: I think that's the gap that Great.

Speaker Change: I would I would be hesitant to determine what the impact would be from a timing perspective, because again nobody wants to pay a tariff that they expect to go away in the coming weeks or relatively.

Speaker Change: Low number of months.

Speaker Change: So that's the kind of operating flexibility, where you would bring to our customers having the domestic content capabilities.

Speaker Change: Goes a long way.

Speaker Change: Certainly across the board.

Unknown Executive: Thank you, Yann, for the caller. I'll pass it on. Thank you so much.

Bill Mitchell: Great. Thank you Jan for the color I'll pass it on.

Speaker Change: You bet.

Speaker Change: Thank you so much.

Unknown Executive: As a reminder, to ask a question on your telephone, you will need to press star one one and wait for your name to be announced. So withdraw your question. Please press star one one again. One moment for our next question, please.

Speaker Change: As a reminder.

Speaker Change: To ask a question on your telephone you will need to press star one wine away from your name to be announced to withdraw your question. Please press star one again.

Speaker Change: One moment for our next question please.

Ahmed Dow: Our next question comes from a line of Ahmed Dow with H.C. Wainwright. Your line is now open. Thank you. Good morning, everyone. I'm just on the gross margin and, you know, positive adjusted EBITDA, at least run rate level expectations going into the end of this year. In the face of all these uncertainties, you know, could you maybe give some color on, you know, what is driving those expectations? Is it just higher volumes you're expecting to deploy or is there any pricing related, you know, factors as well that, you know, gives you that level of visibility right now?

Speaker Change: Our next question comes from the line of Anna Dow with H C. Wainwright. Your line is now open.

Anna Dow: Thank you and good morning, everyone.

Speaker Change: Just on the gross margin.

Speaker Change: Positive adjusted EBITDA, or DCF 100 level expectations going into the end of this year.

Speaker Change: In the face of all these uncertainties could you maybe give some color on.

Speaker Change: What is driving those expectations is it just higher volumes youre expecting to deploy it.

Speaker Change: Is there any pricing related.

Speaker Change: Factors around that.

Speaker Change: It gives you that level of visibility right now.

Cathy Behnen: Yeah, no, thanks for the question. I mean, look, the I keep saying it obviously since since I've gotten here last year. FTC is at this inflection point, right? FTC has this legacy of being in the 2P category, which certainly is the DNA that feeds it. And now we've been in this ramp up of 1P deployment. You know, we have signed more work, you know, and accelerated sort of the recognition of that backlog in recent months. And You know, more than anything, we're starting to see almost every single project that's going out to bid to our peers who are much larger, but they've been in the one key category now for many more years than we have with, you know, with our product really resonating with EPCs around the speed of use, the ease of use, it makes it, you know, a compelling case.

Speaker Change: Yes, no. Thanks for the question I mean look the.

Speaker Change: Okay.

Speaker Change: I keep saying it obviously since since I've gotten here.

Speaker Change: Last year.

Speaker Change: FTC used at this inflection point right FTC.

Speaker Change: This legacy of.

Being in the two P category, which certainly is the DNA that feeds that and now we've been in this ramp up of <unk> deployment.

Speaker Change: We have signed more work.

Speaker Change: And accelerated the recognition of that backlog.

Speaker Change: In recent months and.

Speaker Change: More than anything we're starting to see almost every single project, that's going out to bid to our peers, who are much larger but they have been in the <unk> category now for.

Many more years than we have.

Speaker Change: With our product really resonating with epc's around the speed of use the ease of use it makes it a compelling case.

Speaker Change: And so it's that pull through in that taking of market share.

Speaker Change: Because there's two things right was one taking share from our peers, but also some of the landscape of tracker providers.

Speaker Change: Actively changing so there are some open market share to be had.

Speaker Change: FTC really finds itself I would say from a volumetric standpoint looking at 2020 for volumes.

Speaker Change: Much lower than where we anticipate and see the growth coming from.

Speaker Change: And Thats, I think where our confidence level comes in at in terms of what is what is the right volume as we grow and take share.

Speaker Change: In a competitive marketplace, where we have a really compelling and the newest technology in the market, which I think almost every feature set stands on top against our peers.

Cathy Behnen: So in that context, you know, what are the plans for 2P? Is this slowly going to be phased out and you'll just be mainly focused on growing, you know, the 1P pipeline and revenue? Yeah, look, 1P represents 90% of our billing volume. There are markets where 2P works, you have to have the right, you know, sort of environmental situations, you know, I mean, they're much too, because 2P now is 2P with larger modules than when it was originally architected. So there are some US markets where 2P has a place. There are some European geographies where 2P is especially compelling, you know, especially where, you know, the agricultural solar farms come into play.

Speaker Change: So in that context, what are the plans for <unk> is this slowly going to be phased out and users be made mainly focused on growing the <unk> pipeline and revenues.

Speaker Change: Yes.

Speaker Change: <unk> represents 90% of our billing bidding volumes there are markets, where <unk> works you have to have the right.

Speaker Change: Sort of environmental situations.

Speaker Change: They are much bigger.

Speaker Change: Because <unk> now is <unk> with larger modules than when it was originally architected.

Speaker Change: So there are some U S markets, where <unk> has a place there are some European.

Speaker Change: Geographies, where <unk>.

Speaker Change: It is especially compelling, especially where.

Speaker Change: The agricultural.

Speaker Change: Solar farms.

Speaker Change: Come into play.

Cathy Behnen: So we, you know, do we invest a lot into the further development of 2P? We don't, that certainly is not a priority. You know, our focus is, you know, having a really strong 1P pioneer platform. And then, you know, we've added all these amazing features, you know, high wind, you know, high wind is in the entire Southeast United States now. The overlap of high wind with, you know, having amazing hail and asset management capabilities, you know, as well as the flood impact. Right. So. The flood maps and the flood insurance is certainly playing a role now.

Speaker Change: Hi.

Speaker Change: So do we invest a lot into the further development of <unk>, we don't.

Speaker Change: That certainly is not a priority.

Speaker Change: Our focus is having a really strong <unk> pioneer platform and then.

Speaker Change: We've added all these amazing features high winds high windows in the entire southeast United States now the overlap of high wind with.

Speaker Change: Having amazing hailstone.

Speaker Change: Asset management capabilities as.

Speaker Change: As well as the flood impact right. So.

Speaker Change: The flood maps in the flood insurance is certainly playing a role now so building out the <unk> platform I think helping customers get the right project designed in the right Capex box that Theyre looking for that's the type of value proposition and it kind of transcends the conversation around price alone because it's the overall value that.

Cathy Behnen: So building out that 1P platform, I think helping customers get the right project designed in the right CapEx box that they're looking for. That's the type of value proposition. And it kind of transcends the conversation around price alone, because it's the overall value that the FTC platform can bring to the table and, you know, what ultimately will drive and feed our growth. Understood.

Speaker Change: The FTC platform can bring to the table.

Speaker Change: And what ultimately will drive and feed our growth.

Speaker Change: Understood. That's all I have guys. Thank you for the color I appreciate it.

Speaker Change: Great. Thanks.

Speaker Change: <unk>.

Speaker Change: Thank you so much.

Speaker Change: Alright.

Speaker Change: I am showing.

Speaker Change: No further questions at this time.

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

Q1 2025 FTC Solar Inc Earnings Call

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