Q2 2025 Enphase Energy Inc Earnings Call
Good day and welcome to the enfase. Energies second quarter 2025 Financial results. Call
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Zach Freeman: I would now like to turn the conference over to Zach Freeman. Please go ahead.
Good afternoon and thank you for joining us on today's conference call to discuss enfase energy second quarter, 2025 results. On today's call are bodri klander. Ramen our president and chief executive officer, Mandy Yang, our Chief Financial Officer and Ragu, balora Chief Products officer
Zach Freeman: after the market closed today and phase issued a press release, announcing the results, for a second quarter end of June 3225.
Zach Freeman: During this conference call, and phase management will make forward-looking statements, including but not limited to statements related, to our expected future financial performance market trends, the capabilities of our technology and products, and the benefits to homeowners, and installers our operations, including manufacturing customer service and supply and demand anticipated growth in existing and new markets, the timing of new product, introductions and Regulatory tax tariff, and supply chain matters.
Please forward looking statements involve significant risks and uncertainties in our actual results and the timing of events could differ materially from these expectations.
Zach Freeman: For more complete discussion of the risks and uncertainties, please see our most recent form and K and 10 cues filed with the SEC.
Zach Freeman: We caution you not to place any undue Reliance on forward-looking statements and undertake no Duty or obligation to update any forward-looking statements, as a result of new information, future events or changes in expectations.
Zach Freeman: Also, please note that Financial measures used on this, call are expressed on a non-gaap basis unless otherwise noted and have been adjusted to exclude certain charges.
Zach Freeman: We have provided a Reconciliation of these non-fat Financial measures to get that Financial measures in our earnings release furnished with the SEC on form AK, which can also be found in the investor relations section of our website.
Zach Freeman: Now I'd like to introduce Audrey Cohen, our president, and chief executive officer, Audrey, good afternoon, and thanks for joining us today to discuss our second quarter 2025 Financial results.
We reported quarterly revenue of 363.2 million.
Zach Freeman: Shipped 1.53 million micro inverters and 1 190.9 megawatt hours of batteries and generated free cash flow of 18.4 million.
Zach Freeman: Our Q2 Revenue included 40.4 million of Safe, Harbor Revenue.
Zach Freeman: While our micro inverter Channel. Inventory was likely elevated.
Zach Freeman: For the second quarter, we delivered, 49% gross, margin 21%, operating expenses and 27 operating income.
Zach Freeman: All as a percentage of Revenue on a non-gaap basis and including the net, Ira benefit
Zach Freeman: Mandy will go into our financials later in the call.
Zach Freeman: Our Global customer service NPS was 179% in Q2 compared to 77% in q1.
Zach Freeman: The average call rate time decreased to 1.8 minutes, largely due to Staffing and continued investment in automation.
Let's cover operations. Our Global capacity is around 7 million micro inverters per quarter with 5 million in the US.
Zach Freeman: In Q2, we shipped approximately 1.41 million micro inverters from our us contract. Manufacturers booking 45x production tax credits.
Zach Freeman: Our domestically produced micro inverters help residential lease PPA providers and Commercial asset owners to qualify for the 10% domestic content. ITC error, we expect to ship approximately 1.2 million micro inverters from the US in Q3
Zach Freeman: We grew our domestic battery production in Q2 shipping, 46.9 megawatt hours compared to 44.1 megawatt hours in q1. We are building the IQ battery 5p in the US using domestic domestically, manufactured micro inverters.
Thermal and Battery Management Systems as well as packaging while sourcing cell packs from China.
These batteries with greater than 45% domestic content.
Once again, can help our lease and PPA customers qualify for ITC bonuses.
Zach Freeman: We remain on track to have non-china cells by the end of this year.
Scaling into into battery bills during the first half of 2026.
Zach Freeman: Our us-made batteries with non-china cells.
Zach Freeman: Can help customers qualify for domestic content, ITC bonuses and meet foreign entity of concerned or for your compliance as the criteria become increasingly stringent every year.
Zach Freeman: Let's cover tariffs.
Zach Freeman: In Q2, we absorbed 2%, gross margin impact, due to tariffs.
Zach Freeman: the originally proposed, 145% tariff on Chinese products was ultimately reduced to 30% in May
As a result, our expected 6 to 8%, margin had wind in Q3 as improved to an estimated 3 to 5%.
Zach Freeman: even after accounting for new tariff increases on several non-china countries which are going to be effective August 1st,
Zach Freeman: this progress is the direct result of our teams Relentless execution. In diversifying, our supply chain, we are not only mitigating tariff risk. We are future proofing, our operations, and positioning in Phase to lead under tightening Fiat, compliance rules.
Zach Freeman: Let's cover the regions. Our us and International Revenue mix.
Zach Freeman: For Q2 was 75 and 25% respectively. In the US, our Revenue, increased 3%, in Q2 compared to q1 primarily due to higher seasonal demand, partially offset by lower Safe, Harbor. Revenue of 40.4 million compared to 54 million in q1.
Zach Freeman: The overall fell through of our products was up 17% in Q2 as compared to q1.
Zach Freeman: Let me make some brief comments on the market. The US solar Market is showing signs of improvement with Rising battery, attached rates and seasonal demand contributing to increased momentum.
Zach Freeman: While we haven't yet, seen a material Rush related to the expiring 25d, homeowner tax credit. We expect a gen C to build later in the year as more consumers move to secure the credit.
Second batteries will become Central to every solar cell propelled by declining installation costs long-term credit tax. Credit support through 2033 and growing homeowner demand for energy resilience and participation in vpps. Third, the industry must drive down customer acquisition and selling costs.
Zach Freeman: To remain competitive in a maturing Market. We believe these structural shifts coupled with the escalating utility rates.
Zach Freeman: And increasing grid instability. Create a Tailwind for sustained demand in the residential solar Plus Storage.
Zach Freeman: In phase is executing a multi-prong strategy to lead the industry through these transitions.
Zach Freeman: We are partnering closely with third-party owners. All tpos to design, Innovative financing structures that maximize tax credit capture under the new rules. Our goal is to expand lease financing availability across a much, wider installer base, including smaller and mid-size players by removing friction in financing. And by broadening access, we aim to accelerate residential solar adoption, and ensure that more homeowners can participate in the clean energy transition,
Our Battery Technology road map has been advancing rapidly with the laser focus on driving down, installation costs and unlocking scale in June. We began shipping our fourth generation Battery Systems in the US cutting backup costs by several thousand dollars. Our fifth generation battery is already under development and is expected to deliver a 50% increase in energy. Density and a major cost reduction, pushing the boundaries of performance and affordability.
Zach Freeman: When paired with our next Generation, iq9 Micro inverters, which are launching later. This year, we expect to deliver 1 of the most compelling and integrated solar Plus Battery Solutions in the industry designed.
To meet the needs of both homeowners and installers at scale.
Zach Freeman: Finally, we are doubling down on our installer Services platform to aggressively reduce soft costs across the industry.
Zach Freeman: With solar graphs, our all-in-1 design and proposal platform solar Lead Factory are performance-driven lead generation engine and in Phase care. Our 24 by 7 expert backed, homeowner support program. We offer a unique integrated toolkit to streamline operations, cut acquisition costs and boost installer productivity. We believe these assets position in Phase not just
Zach Freeman: Just as a technology provider but as a full stack partner to help the industry scale more efficiently, we are executing with urgency and look forward to sharing the progress in quarters ahead.
Zach Freeman: In Europe, our Revenue, increased 11% in Q2 compared to q1 while our overall fell through increased by 5%.
The overall business environment across the region is still challenging but we are maintaining our discipline on controling the channel as well as expanding our served available Market by introducing new products.
Zach Freeman: I'll now provide some additional color on our key markets in Europe, the Netherlands.
Zach Freeman: France, Germany and UK.
In the Netherlands demand remains soft in Q2 as the market transitions from a solar from solar only systems to integrated solar Plus Battery Solutions.
Zach Freeman: This shift is accelerating due to Rising export penalties and the Planned Sunset of net metering. At the end of 2026. We are uniquely positioned to lead in this evolving landscape with an installed base of approximately 500,000 residential solar systems.
Zach Freeman: So, like systems.
As net metering. Phases out in the Netherlands, We Believe homeowners will increasingly turn to Batteries, Not only to maximize self consumption.
Zach Freeman: and backup power, but also to participate in VPP programs that offer new value streams in Retail Energy markets,
This transition can unlock.
A compelling 2 billion dollar market and represents a strategic opportunity for us to deepen. Our utility Partnerships.
Zach Freeman: Scale battery, deployments and drive growth across the region.
Zach Freeman: In Q2 as expected with the industry, anticipating, a significant reduction in VAT on solar systems, which is set to take effect in October.
This policy change is expected to reignite demand.
Despite the current slowdown France remains very critical for us, driven by a strong brand technology leadership and the country's relatively low solar penetration.
Zach Freeman: We are seeing a very meaningful uptick in battery, demand spurred by low, feeding tariffs, that makes self-consumption far more valuable our IQ battery. 5p with full backup capability has been well received by both homeowners and installers.
In may, we introduced intelligent hot water, heater steering to further boost self- consumption and savings.
Zach Freeman: This feature is expected to become a key driver in the French Market where heating water represents a substantial portion of household energy use with these building blocks in place. We believe we are. Well positioned to capitalize on the next wave of growth in solar Plus Battery adoption in France.
In Germany. We are ramping sales of variety of battery, 5 p with flex phase and IQ EV Charger 2, both of which are gaining strong momentum with homeowners seeking all-in-1 Solutions. We also launched our IQ balcony, solar systems in Q2 unlocking a fast growing Market segment for rent.
Zach Freeman: Renters and apartment dwellers these Innovations combined, with our deep partnership with some of the top installers are helping us return to growth and expand our presence in a strategically important Market.
Zach Freeman: The UK Market, the UK Market continues to perform well for us as we strengthen our relationships with Retail Energy providers in the region and our robust API platform is proving invaluable and supporting them.
We are shipping our IQ EV charger to into the market and plan to also introduce backup capability for our batteries in Q3 of this year. Further expanding our energy, resilience offering in the region.
In Australia, momentum is building with the July 1st rebate from the government. Fueling strong interest in batteries. We are gearing up to launch our IQ battery. Bye with flex phase in the country imminently, delivering powerful 3-phase, backup and flexible power. In order to meet Dynamic DSO requirements.
Zach Freeman: Our iq8 P micro inverters are also set to launch soon. Supporting the latest high power solar modules in both residential and Commercial markets.
We have also introduced our next Generation IQ EV Chargers, expanding our electrification offerings.
Zach Freeman: To simplify retro retrofit installations. We are enabling compatibility between iq7 and iq8 micro inverters on the same branch, circuit improving installer productivity and accelerating adoption.
Zach Freeman: Let's turn to our Q3 guidance. We expect Revenue to be in the range of 330 to 30070 million. We anticipate continued growth in the US and seasonal softness in Europe.
Zach Freeman: We are approximately 75% booked to the midpoint of our Revenue guidance.
Zach Freeman: For IQ batteries, we expect to ship between 190 and 210 megawatt hours during the quarter.
We are actively engaged with several PPO Partners, who are awaiting, further Clarity on Safe, Harbor rules following the recent executive order, and we remain. Well, positioned to support them once, they finalize their plans.
Zach Freeman: let's talk about new products, starting with IQ batteries in June, we began shipping our fourth generation Battery Systems to the US
Zach Freeman: The new battery delivers, 30% more energy, density. Occupies 62%, lesser wall space and reduces installation cost.
Zach Freeman: Our IQ meter collar, simplifies whole home backup by integrating.
Zach Freeman: Mid functionality.
Zach Freeman: While the new combiner unifies, the connection of solar batteries, EV charging and load control into a single enclosure.
Zach Freeman: Together these Innovations simplify backup installation, improve reliability and deliver Superior. Homeowner value.
Zach Freeman: The meter collar is now approved by 29 us utilities and growing.
And as I noted earlier, we believe our aggressive battery road map, beyond the fourth generation will continue to push boundaries on performance integration and cost.
For more than just backup, they are designed to earn.
With Advanced apis, our batteries can seamlessly integrate into vpps in regulated markets, like the US and participate in wholesale energy markets, in deregulated regions, such as Europe and Australia together. We are actively engaged in over 50, VPP programs worldwide with 210 megawatt hours of Enphase batteries enrolled unlocking, new revenue streams for homeowners and accelerating the transition to a more flexible resilient grid.
Zach Freeman: Let's talk about micro inverters, our iq8 micro inverter family is now deployed in 58 countries and growing
Zach Freeman: building on This Global momentum. We are preparing to launch iq9, our most Advanced Micro inverter yet.
Zach Freeman: Powered by Cutting Edge gallium nitride, technology, iq9 is built for the future supporting higher, DC input, currents, higher, AC voltages, and 3-phase compared ability.
Zach Freeman: With 4/27 Watt peak output, iq9 is optimized for tearing with the most powerful residential and Commercial panels on the market.
Zach Freeman: Internal Pilots are already running at inface facilities and we remain on track for full-scale production in Q4.
Zach Freeman: We Believe iq9 marks a major leap in performance and platform flexibility and importantly, unlocks. The 2 gigawatt Market Opportunity by enabling us to serve 480 volts 3-phase commercial systems in the US for the first time.
Zach Freeman: Our commercial iq8 p3p micro inverters is building momentum with over 850. Commercial sites. Deployed across the US averaging 35 kilowatts per system and earning consistent positive feedback from the field.
Zach Freeman: These 2 08 volt 3-phase micro inverters now. Ship with us. Domestic content. Enabling the customers to benefit from the 10% ITC bonus error. A significant Edge for commercial asset owners.
Both iq8 p3p and iq9 micro inverters are expected to meet Fiat. Compliance offering a powerful alternative in a market still dominated by Chinese equipment.
Zach Freeman: The timing of iq9 launch is strategic, delivering a high quality reliable and policy aligned solution as the industry pivots towards a domestically compliant infrastructure.
Zach Freeman: Let me come to balcony. Solar our IQ balcony. Solar product is now shipping into Germany and Belgium with additional launches planned across.
Zach Freeman: Europe, Japan, India and Utah in the next few quarters.
Zach Freeman: Built on NAS is AC architecture. It enables homeowners to plug in anywhere between 1 and 4 to a standard wall outlet, no permits no rewarding and no complexity a standout feature is sunlight backup, which allows critical appliances to stay powered during daytime outages. Even without a battery and industry. First, that sets us apart
Zach Freeman: On the portable power front, the IQ power pack 1500 marks our entry into the direct to Consumer Energy. Frontier, we expect to scale significantly scale, e-commerce sales as the category opens, and new channels for customer engagement and brand great. And, and brand growth in parallel. We plan to expand the IQ power pack, family into new regions, including, you know.
Zach Freeman: India and Japan while broadening use cases to address a wide spectrum of mobile energy needs.
Zach Freeman: Let's talk about EV charging. We are now shipping our next Generation IQ EV Charger 2, into 18 countries across Europe, as well as Australia and New Zealand. This charger is designed to integrate seamlessly with enfase, solar and Battery Systems. While also performing as a high quality Standalone solution. We recently earned EV ready certification in France 1 of the country's most rigorous standards demonstrating our commitment to safety and performance.
Zach Freeman: Over the coming months we plan to expand availability into more European countries as well as Brazil India and introducing it back in. The US supporting the global shift to electrification with the trusted proven solution.
Zach Freeman: EV charger, which is expected to launch in middle of 2026.
Zach Freeman: This 11 kilowatt solution is powered by 3, high performance micro inverters built on a full Gan architecture, delivering exceptional efficiency and compact designs.
Zach Freeman: Paired with the IQ meter collar in the US, it enables seamless vehicle to home and vehicle to grid functionality with automatic Black start.
Together, they offer 1 of the lowest cost and simplest ways to provide whole home backup. Even without
Zach Freeman: Solar.
Zach Freeman: Or stationary batteries.
Homeowners can just start.
Zach Freeman: with an with an EV, our bidirectional charger, and the meter collar
Zach Freeman: And then later can add solar or enface batteries depending on their preferences and energy goals.
Zach Freeman: Built to ISO 15118 D20 standard and currently undergoing testing with multiple Global oems. We believe this platform has the potential to redefine energy resilience by turning the Eevee into a flexible grid aware energy asset for the home.
Let's talk about solar graph. Our all-in-1 platform purpose-built for installers. We are rolling out major enhancements including seamless integration with our top TPO Partners, powerful, custom tariff Builder, Advanced dealer management tools and a dramatically simplified ai-driven design experience. Every upgrade is designed to make solar graph more intuitive, intelligent and more indispensable as it continues to evolve. Solar graph is becoming a strategic strategic growth engine for us empowering installers to sell faster, design smarter, and scale with confidence.
Zach Freeman: The signing of the tax reconciliation, Bill marks a turning point for the US solar industry.
Zach Freeman: But adapting to change is core to end phases DNA.
Zach Freeman: Over the past several years, we have evolved from a single micro inverter Product Company into a global energy technology leader.
Zach Freeman: Today we offer a full portfolio of micro inverters batteries EV Chargers and intelligent home energy management software. Our systems are deployed in more than 160 countries.
Zach Freeman: With over 4. 9 9.
Zach Freeman: We are entering new consumer markets with products like balcony, solar and portable Energy Systems. And with our upcoming IQ 9 micro inverters, we expect to unlock the 480, Volt commercial solar Market in the US, which is a major expansion of our addressable market and a key step into larger scale energy applications.
Zach Freeman: We believe We Are strongly positioned to lead through the next phase of Industry transformation. Our product road map is accelerating with Next Generation Micro inverters and batteries focusing on lowering, installation costs and simplifying installations. We are doubling down on our installer Services platform to help Drive soft costs and expand lease financing access across the industry.
Speaker Change: The long-term fundamentals for distributed energy remain powerful Rising demand, higher, utility rates, and growing homeowner interests in resilience and energy Independence. As the market shifts, we will keep doing what we do. Best in a waiting with purpose, moving fast and staying relentlessly focused on our customers with that, I will turn the call over to Mandy for her review of our financial results. Mandy
Thanks, Audrey and good afternoon everyone. I will provide more details related to our second quarter of 2025 Financial results as well as our business outlook. For the third quarter of 2025 we have provided. Reconciliations of this non Gap to get financial measures in our earnings, release posted today, which can also be found in the IR section of our website.
Speaker Change: Total revenue for Q2 was 363.2 Million. We should approximately 60075.4 megawatt Cc or micro inverters and 190.9 megawatt hours of IQ batteries in the quarter.
Speaker Change: Q2 Revenue included, 40.4 million dollars of Safe, Harbor Revenue as a reminder, we Define Safe Harbor Revenue as any sales made to customers who plan to install the inventory over more than a year.
8.9% into 1.
Speaker Change: They have gross margin was 46.9% for Q2 compared to 47.2% in q1.
Speaker Change: Some get of course, margin without net benefit for Q2 was 37.2% compared to 38.3% in q1, reciprocal tariffs impacted our gross margins by approximately 2% in Q2.
Speaker Change: Margin for Q2 also included 41.5 million dollars of net, AI benefits.
Market operating expenses were 77.8 million for Q2, compared to 79.4 million for q1.
Okay, by branding expenses were 133.5 million for Q2 compared to 136.3 million for q1.
Speaker Change: The evaporating expenses for Q2 included, 49.5 million of Staff, based compensation expenses, 2.9 Million Dollars of of Ms, for acquired, intangible assets, and 3.3 million dollars of restructuring and Essay impairment charges.
Speaker Change: And the long get basis income from operations for Q2 was 98.6 million.
Speaker Change: Compared to 94.6 million for q1. I'm going to get a basis income from operations. Was 37 million for Q2 compared to 31.9 million for q1?
Speaker Change: Basis the income for Q2 was 89.9 million compared to 8, 9. 2 1
Speaker Change: This resulted in non-gaap diluted earnings per share of 69 cents for Q2 compared to 68 cents for q1.
Speaker Change: Gaming account for Q2 was 37.1 Million compared to 29.7 million for q1.
This related.
Speaker Change: This resulted in gap, diluted earnings per share of 28 cents for Q2 compared to 22 cents for q1.
Speaker Change: We accessed the Q2 with a total cash, cash. Cash equivalents and marketable. Securities balance of 1.53 billion flat when compared to q1.
Speaker Change: As part of our 1 billion dollar, share repurchase program authorized by our board of directors in July 2023. We repurchased 72,948, shares of our common star, in Q2 and an average price of 400 million.
Speaker Change: We have a remaining 268.7 million authorized for further, share repurchases.
Speaker Change: In addition, we spend approximately 3 million by withholding shares to cover taxes for employees. Start vesting in Q2 that reduce the diluted shares by 58,332 shares respect, respect to continue this anti-dilution plan.
Speaker Change: In Q2, we generate a 26.6 million in cash flow from operations.
Speaker Change: And 18.4 million dollars in free cash flow.
Speaker Change: Capital expenditure was 8.2 million for Q2 compared to 14.6 million for q1.
Speaker Change: now, let's discuss our outlook for the third quarter of 2025
Speaker Change: We spent our revenue for Q3 to be within a range of 330 to 370 million, which includes shipments of 190 to 210 megawatt hours of IQ batteries.
Speaker Change: Respect. Get course margin to be within a range of 41 to 44% including a approximately 3 to 5 percentage points of reciprocal tariff impact.
Speaker Change: we spend 9 gross margin to be within a range of 43 to 46% with net benefit and 33 to 36% before then II benefits including the reciprocal tariff impact,
Speaker Change: growth margin is closed. Stock based compensation is based and acquisition related advertising.
Speaker Change: We spend may I benefit to be between 34 and 38 million dollars on estimated shipments of 1.2 million units of us. May micro inverters into 3
Speaker Change: We spare our gaap operating expenses to be within a range of 130 to 134 million dollars, including a approximately 52 million dollars estimated for Star, based compensation expenses, acquisition related and restructuring and Essay. Impairment charges.
Speaker Change: 82 million.
Speaker Change: For the year 2025, we spent our gaap tax rate of 19 to 21% and the non Gap tax rate of 15 to 17% including IRA benefits with that. I will open the line for question.
Speaker Change: We will now begin the question and answer session to ask a question. You may press star then 1 on your touchtone phone,
Speaker Change: If you are using a speaker-phone, please pick up your handset before pressing any keys.
Speaker Change: if at any time your question has been addressed and you would like to withdraw your question, please press star then 2
Speaker Change: And your first question today, will come from piss Satish with Wells, Fargo. Please go ahead.
Satish: Thanks uh, good afternoon, Audrey. I think you mentioned in your uh remarks um partnering with TPO providers and introducing some creative financing structures. Um, that could help maximize the tax credit capture, can you just elaborate on on what those type of structures could look like and and when you plan to launch that, and I guess this is the the goal here to kind of take your relationships with the long tail installers and and get them onto a TPO platform. Um and then maybe just to follow up on that. What what is just to level set? What is your market share with TPO providers today after the recent bankruptcies in the space and I guess how do you expect that to evolve in 2026?
Yeah, so I'll start with the second question, you know. First, you know, first of all, our overall market share in the US is quite healthy. As you all know, and it's, and it is available in public, uh, public analytic reports.
Uh, we have a healthy share at both for both cache.
Loan customers.
Satish: As well as healthy, share with the TPO customers, we have not broken it out.
Satish: And we do have healthy share. We work with every
Satish: 1.
Satish: Of these TPO customers.
Satish: uh, we work with every single 1 and right now we are in
Satish: deep discussions with them, because
Satish: what we have is we know how to service long tail installers,
Satish: We have the relationships with the long tail installers.
Satish: and if we can, um, you know, if we can bring
Lease.
Satish: You know, financing access to the long tail.
Satish: We can prevent a market erosion overall Market erosion.
So, um, that's what we are aiming to do. Um, and we are working with a lot of the gpo's. Uh, we aren't ready to share more details yet but we will.
Satish: Share those uh, very soon.
Satish: Yeah, perhaps in the next in the next earnings call and we are looking to move on at aggressively. Uh, so let me leave it at that. So I'll add, I'll add a couple of more things. Um,
Satish: You know, I've I've seen many of the analysts reports.
Satish: Um, they all say, you know, the US Tam is about 4 and a half gigawatts.
Satish: Um, for solar in 2025, and I think it's approximately couple of gigawatt hours for batteries in 2025.
Satish: And um you know what is the view for it to be in 2026?
Satish: There are various numbers our, you know, my personal View.
Satish: Is that, uh, we expected 20% drop in Tam?
In 2026 due to 25t.
Satish: So,
Satish: there are 3 things which we believe. Um,
you know, we need to do in order to mitigate mitigate, uh, the market reduction
Satish: 1 is what we just talked about. Um,
Satish: bringing lease financing to the long takes how to facilitate that most effectively with our strong people, but the second 1
Working on driving down. Installation costs.
Satish: And there we talked about batteries, we just released our fourth generation batteries uh, batteries.
Satish: In general, are ramping up in the US. They are getting more cost-effective.
I just told you that um, you know, I am working on my fifth generation batteries scheduled to come out
Satish: Um, in exactly a year from now.
Satish: and,
you know, in that fifth generation battery, we are able to improve the energy density by
Satish: more than 50%.
Satish: Make a major uh, Improvement in cost.
Satish: And hence installation installation costs.
And also iq9, um has got a lot of innovation on it with gangs in order to reduce the overall cost. So we are looking forward to basically introducing
Satish: world-class products.
Satish: um, which have, uh, you know, very efficient footprint and which will uh, bring down the
End installation costs.
Satish: The third 1.
Satish: Is an interesting 1 is lead generation.
Satish: the customer acquisition cost is,
Satish: Very high.
Satish: In the Solar industry.
Satish: and of the order of anywhere between 70 cents, a watt to a dollar, a watt,
Satish: and um, enfase needs to
Satish: Do a lot more in order to reduce that. And I think we are taking up that, you know, once again we are launching
Satish: aggressive initiatives, where
Satish: We um, will be able to generate leads and pass on to our installers.
Satish: The also note that we have a fleet that is 5 million homes.
Satish: You know, earlier in the past installation may not have had time installers may not have had time to focus on the upgrade Market, but now um it is going to be lucrative for them to focus on that on that market too. So, so 3 things are, which we are going to do well, under our control, while working with our partners is bring
Satish: Lease financing to the long tail.
Satish: Um, make world-class products driving down installation costs.
Satish: Third is um help reduce lead generation costs across the industry.
Satish: Got it. It's it's very helpful. Um, maybe kind of Switching gears, you mentioned that the the micro uh, channel is slightly elevated. We know demand is going to decline in in 2026 once the 25d credit expires. Um, I guess how do, how do you intend on managing field inventories, uh, with Distributors for the balance of the year. Do you plan to under ship micros? Neither, uh, Q3 or Q4 to help reduce inventories or do you think inventories could just get right? Size, more organically if we see uh, maybe a pull forward of demand or some safe harbors in the second half.
Satish: I think you answered the question yourself.
Satish: Basically um there's exactly what we expect we expect. Um,
Satish: 25d.
uh, increase in demand, which will come
Satish: From the channel and make the channel at reasonable Levels by the end of the year.
Satish: Thank you.
Speaker Change: And your next question today will come from Philip Shen with Roth Capital. Please go ahead.
Philip Shen: Hey uh, thanks for taking my question. Um,
Philip Shen: In terms of the Q3 guide. Sorry. If I missed it. But did you share how much Safe Harbor you expect in in the Q3 revenue? And then you talked about not yet seeing the pull forward of demand yet. Um, how do you expect that to manifest? Would it be more of a Q4? Um,
Philip Shen: Uh, elements or do you think there could be an upside surprise? 2q 3. And then, in terms of, uh, the elevated channel, uh, how did we get, uh, to elevated Channel levels? Was there a pause earlier in the year or, uh, did you over ship into the channel and what are the levels? You know? Historically your, you know, when you got right size recently, you were at 8 to 10 weeks. Are we talking about 12 weeks now or something? Higher, thanks.
Philip Shen: Right. Um,
So, first of all, the Q3 Revenue, guidance does not include any Safe Harbor.
Philip Shen: um, as I said we are working with
Philip Shen: Several TPO partners.
Philip Shen: And they are all uh, looking at the recently at the recent executive order and they are waiting for for their Clarity. And once they have that clarity,
Philip Shen: They will, um, take the actions from our side. What we are doing is to ensure that we are ready in terms of capacity
Philip Shen: um, you know
Philip Shen: I think we will see.
Philip Shen: The 25 de demand.
Philip Shen: Um, possibly in early Q4.
Philip Shen: is what we will start seeing, you know, right now we are in seeing it, but we still have
Philip Shen: August and September left. So that's what I expect.
Philip Shen: That we'll start seeing its uh soon. Um, I'm sure that installers
Philip Shen: you know, some installers will have to make
Philip Shen: work force changes. They may have to add temporary teams.
Philip Shen: in order to, um, feed the rush and that those all take a little bit of time,
Philip Shen: And so I'm sure it's coming.
In Q4, um, the question on channel. Um, we are completely transparent to you. It is, we are we are
Philip Shen: We are actually in very good shape in Channel management.
Philip Shen: we um, you know, our experience in the last 2 years, on the quantity of under shipment Etc that we had
Philip Shen: Uh we we have recognized that's an anomaly and um we will never get to that stage. So whenever you know I say it's likely about it should it should mean slightly above 8 to 10
That's what it means.
Okay, thanks budget. Uh uh, my follow-up question is on
Philip Shen: Um, something you said earlier, you said your assumption for 26, is a tam that's 20% lower. Um, can you walk us through the assumptions of how you get to the 20%, you know, the Baseline for, you know, loan versus TPO versus cash. Etc. And then separately can you if you can, I know you won't guide to Q4 and q1. But how are you thinking about Q4 and q1 from a Cadence standpoint if you are able to share. Thank you.
Yeah, so we expect, you know, approximately a 20, 20 20% uh reduction in time the way I'm thinking about it, just to tell you, you know, simple straightforward is, let us say, 2 point. I mean, the 4.5 has got
Philip Shen: A, you know, 2 gigawatt.
Philip Shen: Of lease.
Philip Shen: And 2.5 gigawatt.
Of Cash and Loan.
Philip Shen: I expect, um, I expect basically the lease, you know,
Market the, the leasing Market to be increasing a little bit.
Philip Shen: and the Cash and Loan Market to decrease by a lot,
Philip Shen: So the end picture will, you know, in our opinion, the end picture may look may look like 2.5 gigawatt lease.
Philip Shen: And 1 gigawatt Cash and Loan in 2026. Of course, everybody is estimate.
Philip Shen: Is different. Um but our our rationale is the following
Philip Shen: There are uh, the key markets in the US.
Philip Shen: Are basically, you know, you take a look at California.
Philip Shen: You take a look at California.
Philip Shen: The utility prices are.
Philip Shen: Are high in California.
Philip Shen: Payback today.
Philip Shen: is 6 to 8 years in 2025,
Philip Shen: and,
Philip Shen: With ITC not being there for a cash loan, purchase or cash purchase, I should say the payback.
Is going to stretch by 2 years.
Philip Shen: 6 to 8.
Philip Shen: Will become something like an 8 to 10.
Philip Shen: Still very attractive economics with the 25 year product.
Philip Shen: We see the same economics, you know, similar economics, even in the East Coast.
Speaker Change: Where the utility rates?
Speaker Change: Are high and in the east coast vpps are popular.
Speaker Change: Um,
Speaker Change: policy, for example, most of the business
Speaker Change: Gets transacted on lease. So we see that market to be remaining intact, so um, the markets that
Speaker Change: Probably will be hit hard. Is is the Midwest, you know, Central
Speaker Change: and even Southeast where the utility rates are in general.
Speaker Change: On the Lower Side. Um,
but that's the big picture 4 and a half. Gigawatts in 2025 we think it'll go down to 3 and a half gigawatts.
In 2026. The least Market will slightly expand 2 to 2.5.
Speaker Change: The Cash and Loan will um go from 2.5 to 1.
Speaker Change: Again, if you would like to ask a question, please press star and then 1, please leave me yourself to 1 question and 1 follow-up.
In the next question will come from Brian Lee with Goldman Sachs? Please go ahead.
Hey guys, good afternoon. Thanks for taking the questions. Um, I guess, you know, bodre just following up on your strategic initiatives uh in a you know, declining.
Brian Lee: Tam environment. Appreciate, you know you you guys have an action plan already sort of in in place. I mean when you talk about working with the long tail on TPO and financing and then the lead gen, um, can you maybe give us a sense how quickly you can Implement those strategies and then how much incremental cost
Brian Lee: You would have to incur. I would I would imagine maybe the Opex has some incremental cost or some investment required to to be able to start uh driving those 2 initiatives. And then I guess my follow-up would just be um in this environment where you just outlined a potential, 20% reduction in volume. Um,
You know, you're, you're looking at ways to, to maintain as much of that volume, uh, as possible would pricing actions, uh, to mitigate some of that Tam loss and capture more volume, uh, b, b b part of the strategy, maybe you walk us through what you're thinking around pricing in that type of environment as well. Thank you.
Brian Lee: Yeah, and in terms of operating expenses, you know, um we don't anticipate any major change because what we are, what we are really doing is, will be ultimately lucrative for the tpos.
Brian Lee: It is, we are we are essentially making sure that that demand is not lost.
Brian Lee: The long tail has got access so the tpos should have more business. So, um, you know,
Brian Lee: The operating costs for us um, in order to facilitate this is is not meaningfully higher.
Brian Lee: um, in terms of pricing actions,
Brian Lee: you know, uh, what I have told you is the following, our
Brian Lee: The way we are going on batteries. For example, we are going to have, you know, we already reduced the installation cost for example with the fourth generation product. Now, we are taking that and cutting it down by another
Brian Lee: Uh, big factor.
Brian Lee: Uh basically increasing the energy density. We are going to Prismatic cells. And um, so once we do that, what happens is our
Brian Lee: Margins fundamentally improve. Similarly, on iq9. When we
Brian Lee: Go to the.
Bidirectional Gan switch. What happens is.
Brian Lee: once we start running again, at an increase frequency,
Brian Lee: then what happens is, we are able to optimize the rest of the bill of materials. Ultimately, we are able to produce 10% power, maybe even 20% power at
Brian Lee: A similar cost structure.
Brian Lee: As before. So Innovation is the answer.
Brian Lee: Innovation is the answer. So, um, we are innovating on batteries, we are innovating on iq9.
Brian Lee: As I said, we are also going to get the for the first time. We're going to introduce a 3-phase 480 volt product.
Brian Lee: so, um,
Brian Lee: that that's so coming back to pricing. So once we are fundamentally altered, the cost structure, then the pricing action is simple.
Brian Lee: It is, it allows us room to do.
Brian Lee: the correct pricing for the consumer, depending on the value that we
Speaker Change: Have and your next question today will come from Julian de Molen Smith with Jeffrey's please. Go ahead.
Speaker Change: Hi. This is disantillo for Julian. Uh, thanks for taking my question. Maybe the first 1, uh, could you discuss how the Dynamics will work for the 4K safe harboring?
As we understand it, it's the system needs to be installed by your end to get the credit, right? So will we see Loan originations in 4k, given that uncertainty on timing of install?
Speaker Change: No, I think um Safe Harbor.
Speaker Change: Uh basically the rules are that um the TPO partners and I'm speaking for them. The TPO Partners have
Speaker Change: approximately a year until June 30th.
Speaker Change: In order to finalize their Safe Harbor.
Speaker Change: Uh, inventory and strategy.
I guess you're talking about is the 25th correct? You're talking about 25d is where expenditure means
Speaker Change: Um it is, it is both the customer has to pay. The consumer has to pay for it as well as the system should be installed by the year.
Speaker Change: Yes. So in that instance, do you think we will see because I know that you haven't seen uh installed yet and uh,
Or are you haven't seen that demand pulling yet in 3 years? So you unless you expect to see that in 4 q? Do you think that'll actually happen because there might be some uncertainty on loan originations right? Well,
Speaker Change: Um, yeah. Yeah, our opinion is it? It will happen. Uh, installers are experts, they know what to do.
I think right now.
Speaker Change: They expand their Cruise so that they start to cater to the demand rush but they have a lot of experience they can get solar installations done quickly.
Speaker Change: So I do expect it to happen.
Speaker Change: And your next question today, will come from Colin Rusch with Oppenheimer. Please go ahead.
Colin Rusch: Thanks guys. Yeah, can you talk about your ability to upsell uh existing homeowners on either Chargers or batteries and and kind of what those unique economics look like um you know as a combined sale. Um
And your access to those customers through your partners. Or can you go direct to those folks?
Colin Rusch: Are you calling? This is Ragu? Um, yeah, but you mentioned that it is a very important segment, uh, of the market that we are looking at, um, of course it uh, the customer acquisition cost is significantly lower because it's already an existing customer, but I think from a product point point of view, there is a fundamental Advantage where AC coupled, but that means is that we don't have to touch the existing solar system, you can come in and add a battery, you can come in and add any EV charger. And if you need to, which is very likely going to the case, you may need to expand your solar system as well, which is also, very simple within AC coupled, um, AC coupled solution. So intrinsically, um, it has significant advantages both for customer acquisition as well as from a product point of view. There's no rip and replace. You don't have to pull out any inverters Etc, just leave them alone and you can come in and add the solution and just by simply by adding the battery
Colin Rusch: If there's an existing, if there's a VPP program that you want to participate in the battery, can get enrolled in that VPP program as well. So, um, uh, we see a lot of advantages that and that market for us is very large. I mean, we have an installed base worldwide of about 4.9 million um million homes. Uh and uh the majority of them are here in the US so it is a very important Market segment that um we are uh we are going after
And then my phone is on the 90, U non us markets. You know, obviously you've had some success in Latin America, Australia and other places. Can you talk a little bit about what growth looks like? Uh, outside of those 2, main markets, uh, and how we should think about that as a contributor to the balance of this year and into next year,
Yeah. Um, in terms of Australia, for example, Australia was uh,
Um, you know, flat.
Colin Rusch: Growth. I mean flat to down in growth in the last year, year year or so. And even for the first 6 months of this year but what happened is the new government, the new government came and introduced uh a battery rebate.
and and because it is a very lucrative battery rebate, uh the battery attached rate, everybody believes the battery attached rate is going to go up from like 30% to like 80 90%
Colin Rusch: So, that's a huge opportunity for us. We are already. We are already seeing, uh, that in installations happening and we are introducing a few products for them, for example. Australia. Um, needs 3-phase backup, and we are going to be introducing our Flex face battery imminently, any day. Now in Australia, in addition, uh, we are also
Colin Rusch: Um, you know, introducing our high powered micro inverters, uh, to capitalize on Commercial opportunities. Um, at in fact, Australia is getting an entire facelift of products. So all of them, uh, will be available in Australia in the next couple of months. So we expect, um, uh,
Australia to resume growth.
Colin Rusch: Starting from Q3.
is now we have
An iq8, uh, full iq8 P system, which is very cost effective for the high panel wattages that are available. In addition we have the battery
Colin Rusch: And um, India you lose power for example, 5 times a day in India. So resilience is top of mind for them. Having said that, um, these batteries, you know, um, are you know, what we cater to is the premium client, for example, uh, premium Villas and you know, um, those will have both IQ micro inverters plus, IQ battery. It's a beautiful system, it's compatible to 3 phase, um, and give you complete energy Independence. So, we are seeing India growth steady. It's not a hockey stick but every quarter, it's higher than the previous quarter.
Colin Rusch: um,
Colin Rusch: the next 1 I'll talk about is Japan.
Colin Rusch: We introduced a product for Japan. Very recently in the middle of Q2 just a few months ago.
Colin Rusch: Um, in fact, last week there was a round table. Um, I met with all the Japan installers as you know, um, you know, Japan takes a little bit of time to ramp up but once it is there, um, it's a big opportunity for us. So so Japan is something we're very excited about we expect incrementally go, there we are already going to introduce new products, uh, there. Um, you know, the balcony solar product with the small systems Gateway is going to be ideal for Japan.
Colin Rusch: We will be introducing batteries into Japan next year. So we got a nice road map for Japan, you know, right now they have Micro inverters and we are
Colin Rusch: figuring out how to ramp those along with our installers. That's what we're doing.
Speaker Change: And your next question today, will come from a heat, man, Lloyd With mizuho. Please go ahead.
Lloyd: Hey uh thanks for taking the questions. Uh, this first 1 just on the Tariff impact, could you, uh, quantify, the Tariff impact on the Q3 earnings guidance. I'm going to follow up on that on the section 232.
Lloyd: Policy like an investigation. It looks like there could be tariffs on silicon carbide which I think is like 5% of the cost. Any any thoughts on?
What uh, tariffs could be expected on silicon carbide and is iq9 the way to kind of offset that or something else you have on that as well. Thanks.
Um, just to answer that. That question first, we don't use silicon Cup by so that is not
Lloyd: uh, that does not affect us now, uh,
Lloyd: The other question you asked is the Tariff? So let me give you uh,
Lloyd: a full download on that um,
We we had the 145% China tariffs in the last earnings call.
Lloyd: so at that time, um,
Lloyd: We projected an impact of 6 to 8% in the gross margin.
Lloyd: Subsequently. Um, in May
Lloyd: The 1355 % drop to 30 30%.
However,
Lloyd: Now.
Lloyd: Effective, August 1st.
Lloyd: There are reciprocal tariffs.
With, uh, a lot of countries for example.
Lloyd: Malaysia is 25%.
Lloyd: Vietnam is 20%. Um, so
now, I mean, basically there is no
Safe Haven, the college. So, wherever wherever we are, we got some kind of a tariff.
Lloyd: And right now, I mean,
Lloyd: when we set 3 to 5%, let me let me take the midpoint 4% is our uh, our growth margin impact due to tariff.
Lloyd: If I take that as a given, uh, that 4% if you break down,
Lloyd: 1% is from micro inverters.
Lloyd: 3% is from batteries.
Lloyd: So that 1% micro inverters tells you that that we have been working on this problem.
Lloyd: For a long time on micro inverters a couple of years ago. So we already Diversified um our supply chain in micro inverters and we can adjust
Lloyd: Yet there's going there is still going to be a small component of of the tariffs, but that impact is only 1%.
Lloyd: On the battery side, we obviously have the impact on the cells.
Lloyd: um, the only way we can avoid that is
Lloyd: by making the cells, for example, in the US but the labor cost in the US being high. The cost is a wash between the 2. So how do we get back? How do we get that 4%? How do we make that? A very small number that doesn't matter. So, um, the way we will do that is
Lloyd: with our fifth generation battery, which is fundamentally going to alter our gross margin structure.
Lloyd: You know, um essentially our gross margins will will um be and a step change.
Lloyd: Better.
Lloyd: Than the third or fourth generation battery. So, um,
Lloyd: You know, the way you the way we should think about it as the tariffs right now is 4%. It might get a little smaller as you hit q1 and Q2 4 might become 3ish and then would go away. Once we launch the fifth generation battery,
Speaker Change: And your next question today will come from Eric Stein with Craig Hallam. Please go ahead.
Eric Stein: Hey, thanks for sneaking me in here at the end. Um, just curious you mentioned, um, that some of the tpo's waiting on, guidance and set.
Eric Stein: Uh, set to figure out their Safe Harbor plans. I mean, any thoughts on when the treasury might issue that guidance, I mean, I've, I've seen a number of potential dates and it seems that um, you know, no 1 really knows, but I would love your opinion of when that might be.
Eric Stein: Uh, yeah, in the same boat as you we did not know when the treasury is going to.
Eric Stein: release their guidance and that's, you know, our our TPO partners are
Eric Stein: are, uh,
Eric Stein: Are a lot more experts at this. They are, they are looking at it. Um, every day.
Eric Stein: And their plans unfortunately are changing uh too. So you know right now it is wait and see.
Eric Stein: uh,
Eric Stein: To look for the nuances of the guidance from Treasury and then execute on the Safe Harbor.
Eric Stein: Okay.
Eric Stein: I'll jump back in the line. Thanks.
Speaker Change: And your next question today, will come from Dillon nassan, with wolf research. Please go ahead.
Speaker Change: Hey, good afternoon everyone. Um, I just wanted to follow up and see if there's any additional kind of demographic information. You could share about the TPO players that you're currently in discussions. With are these like large existing players. Uh, where do they sit kind of geographically and then as a follow-up, have you identified any potential obstacles when it comes to helping the long tail shift to the leases? So just thinking about, you know, are there any customers saying they'd rather try to sell cash only systems without the credits rather than you know, maybe add the complexity of offering leases? Thank you.
Speaker Change: Yeah, we we work with um, every TPO
Speaker Change: And we are having conversations with almost 80% of them.
Speaker Change: Right now, on Safe Harbor.
Speaker Change: um,
Speaker Change: your second question.
Speaker Change: Can you repeat your second question? Yeah, yeah, yeah. Sorry. Yeah. Just, uh, in terms of what your customers are saying, are there any that are kind of indicating they'd rather just try to sell cash systems without credits? Uh, because of course, of course, there is, there are a lot of them who
Speaker Change: who think that, you know, um, for example, in California
Speaker Change: If uh, especially live. Yeah, let me take actually San Diego, right? San Diego has got a 6 year Payback.
Speaker Change: Today with solar Plus batteries and that might go to 80 years payback. So
Speaker Change: And some of our installers. I mean, we are having just just to tell you this, we are having installed a round tables every week.
Um, and every week is from a different region.
Speaker Change: To exactly. Ask the same question. How are you managing? How are you managing this transition? Some of them are absolutely confident of selling.
Speaker Change: Cash and Loans. Still, some of them, uh, are, you know, are pivoting towards Leeds and PPA? So uh, the answer is mixed.
Speaker Change: Your next question today will come from Mark Strath with JP Morgan. Please go ahead.
Speaker Change: Uh, scenarios that you're looking at or is it really just kind of data and Partnerships and that kind of thing? Um, just curious about if you're looking to to leverage your balance sheet at all,
Speaker Change: Yeah, you know? Um,
Speaker Change: We are not looking at.
At doing anything with the balance sheet, but if that changes, we'll let you know.
Speaker Change: Um however, what's important is we we have a history of all of these installers. We know exactly.
Speaker Change: Uh, how much volume they did. We know exactly their customer service NPS, net promoter score. Um, we know everything about the installers, we know what drives them. Um, we work very closely with them. So when it comes to vetting, vetting, things we we are in a, we are in an ideal position to do. So,
um, and of course, you know, we, uh, since we designed the products, we
Speaker Change: also can do, um,
Speaker Change: you know, the the service for example, the service and maintenance is easy, most of the problems can be
Speaker Change: Solved remotely 90% of the problems. So we have our data analytics team which which can solve those problems. Um,
Yeah, let me, let me leave it at that.
Speaker Change: Okay, thank you.
Speaker Change: And your next question today will come from David araro with Morgan Stanley. Please go ahead.
David araro: Hey, thanks so much for taking my question here. Um, you know, I was just wondering if you might be able to elaborate, as you look into uh, 2026, you talked about a bunch of, you know, product Innovation, uh, efforts to lower cost. I was wondering if there are any other kind of internal cost reduction efforts, you know, potentially efforts to lower overhead. Um, you know OPAC uh for example, anything you're exploring their thanks.
Speaker Change: Absolutely. I mean
David araro: we, um,
Speaker Change: The market.
And the market has has had a, a demand problem over the last couple of years.
Speaker Change: And um, over the last couple of years, we had our demand has dropped.
Speaker Change: We have continuously adjusted our expenses.
Speaker Change: Without compromising on.
Speaker Change: R&D our customer service.
Speaker Change: And we will, we will always doing, we will always be doing that for us. Uh, it is a process, not an event.
Speaker Change: Um, and we think about expenses as don't think about expenses as only labor.
Speaker Change: We have to think about expenses as labor plus non-, labor. For example, we ask the question where
Speaker Change: Do we need the software tool?
Speaker Change: Can we eliminate the software tool and do something else, which is more intelligent?
Speaker Change: Um, we ask those questions all the time. So in light of any reduced demand, which we are trying to mitigate. But, you know, let us say we we are not not able to mitigate
Speaker Change: The demand drop um, you know, we will continuously adjust our expenses.
Speaker Change: Again, if you have a question, please press star and then 1 and your next question today will come from Nicole gossy with Bank of America. Please go ahead.
Speaker Change: Nicole, your line may be muted?
Speaker Change: And our next question today will come from Christ and Dojo with RBC Capital markets, please go ahead.
Speaker Change: Yeah, thank you for taking the question. Um I wanted to go back to some of the comments on the strategy and and there's been a big Focus here here on marketing to the long telling you is you've mentioned, you know getting um lease financing to them you know improving lead generation but I guess you know there's an argument that with the adoption of TPO. Maybe there's additional consolidation in the industry so maybe focusing on on the other end. The the maybe the fat part of the of the tail here. Um you know is there is there any changes or anything you're doing in in strategy to maybe expand your share with some of the bigger TPO providers and and how are you I guess maybe um looking at those relationships and is there anything you can do to uh improve those relationships. Thanks.
Absolutely. I mean there is a myth that we don't work with the tpo's. That's totally wrong.
We work with every TPO.
Total installation cost.
Speaker Change: Total installation time, um, and M meaning taking care of servicing.
Speaker Change: So we we are
Speaker Change: we work with every 1 of those gpus on these issues.
Speaker Change: um, you know, for example, the fourth generation, the fourth generation battery,
Speaker Change: And um, with the meter collar.
Speaker Change: Our cost for backup.
Speaker Change: And, you know, our cost for backup is similar, meaning slightly only slightly higher and the cost.
Speaker Change: For no backup or grid tied options.
so,
Speaker Change: um,
what I'm trying to tell you is that the products that we do, we collaborate closely with the tpos we collaborate closely with
Speaker Change: Them on service opportunities.
Speaker Change: Um, and
Speaker Change: uh, since we work with every 1 of them,
You know, we um we have deep Partnerships there.
And we'll be, we'll be working on it even more aggressively in order to gain more market, share.
Speaker Change: That's it for me, thanks.
Again, if you have a question, please press star and then 1.
Speaker Change: Please stand by as we pull for questions.
Speaker Change: No further questions, this will conclude our question and answer session. I would like to turn the conference back over to bodri. Cassandra Ramen for any closing remarks.
Speaker Change: Thanks for joining us today and for your continued.
Speaker Change: Support of winace. We look forward to.
Speaker Change: Exploring, thank you.
The conference has now concluded, thank you for attending today's presentation. You may now disconnect