Q1 2026 Tigo Energy Inc Earnings Call

May 5, 2026

Operator: Good afternoon. Welcome to Tigo Energy's Fiscal First Quarter 2026 Earnings Conference Call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. Joining us today, Tigo are Zvi Alon, CEO, and Bill Roeschlein, CFO. As a reminder, this call is being recorded. I would now like to turn the call over to Bill Roeschlein, Chief Financial Officer.

Operator: Good afternoon. Welcome to Tigo Energy's Fiscal Q1 2026 Earnings Conference Call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. Joining us today, from Tigo are Zvi Alon, CEO, and Bill Roeschlein, CFO. As a reminder, this call is being recorded. I would now like to turn the call over to Bill Roeschlein, Chief Financial Officer.

Speaker #1: Joining us today, TIGO Art Zvi Alon, CEO, and Bill Roeschlein, CFO. As a reminder, this call is being recorded. I would now like to turn the call over to Bill Roeschlein, Chief Financial Officer.

Speaker #1: Thank you, Operator. And it's a pleasure to join you today from our corporate offices in Los Gatos, California. Also with us is Zvi Alon, our CEO.

Bill Roeschlein: Thank you, operator, and it's a pleasure to join you today from our corporate offices in Los Gatos, California. Also with us is Zvi Alon, our CEO.

Speaker #1: We'd like to remind everyone that some of the matters we'll discuss on this call, including our expected business outlook, our ability to increase our revenues, and our overall long-term growth prospects, expectations regarding a recovery in our industry (including the timing thereof), statements about demand for our products, our competitive position in market share, the impact of tariffs, our current and future inventory levels, charges and reserves and their impact on future financial results, inventory supply and its impact on our customer shipments, statements about our revenue, and adjusted EBITDA and non-GAAP net loss for the second fiscal quarter 2026, and our revenue for the full fiscal year 2026, our ability to penetrate new markets and expand our market share (including expansion in international markets), and investments in our product portfolio.

Bill Roeschlein: We'd like to remind everyone that some of the matters we'll discuss on this call, including our expected business outlook, our ability to increase our revenues and our overall long-term growth prospects, expectations regarding a recovery in our industry, including the timing thereof, statements about demand for our products, our competitive position and market share, the impact of tariffs, our current and future inventory levels, charges and reserves, and their impact on future financial results, inventory supply and its impact on our customer shipments, statements about our revenue and adjusted EBITDA and non-GAAP net loss for the Q2 2026, and our revenue for the full fiscal year of 2026, our ability to penetrate new markets and expand our market share, including expansion in international markets and investments in our product portfolio.

Speaker #1: We're all forward-looking statements, and as such, are subject to known and unknown risks and uncertainties, including but not limited to those factors described in today's press release and discussed in the risk factors section of our most recent annual report on Form 10-K, our quarterly report on Form 10-Q for the fiscal quarter ended March 31, 2026, and other reports we may file with the SEC from time to time.

Bill Roeschlein: We're all forward-looking statements, and as such, are subject to known and unknown risks and uncertainties, including but not limited to those factors described in today's press release and discussed in the Risk Factors section of our most recent annual report on Form 10-K, our quarterly report on Form 10-Q for the fiscal quarter ended 31 March 2026, and other reports we may file with the SEC from time to time. These risks and uncertainties may cause actual results to differ materially from those expressed on this call. Those forward-looking statements are made only as of the date when made. During our call today, we will reference certain non-GAAP financial measures. We include GAAP, non-GAAP to GAAP reconciliations in our press release furnished as an exhibit to our Form 8-K.

Bill Roeschlein: We're all forward-looking statements, and as such, are subject to known and unknown risks and uncertainties, including but not limited to those factors described in today's press release and discussed in the risk factors section of our most recent annual report on Form 10-K, our quarterly report on Form 10-Q for the fiscal quarter ended 31 March 2026, and other reports we may file with the SEC from time to time. These risks and uncertainties may cause actual results to differ materially from those expressed on this call. Those forward-looking statements are made only as of the date when made. During our call today, we will reference certain non-GAAP financial measures. We include GAAP, non-GAAP to GAAP reconciliations in our press release furnished as an exhibit to our Form 8-K.

Speaker #1: These risks and uncertainties may cause actual results to differ materially from those expressed on this call. Those forward-looking statements are made only as of the date when made.

Speaker #1: During our call today, we will reference certain non-GAAP financial measures. We include GAAP non-GAAP to GAAP reconciliations in our press release furnished as an exhibit to our Form 8-K.

Speaker #1: The non-GAAP financial measures should not be considered as a substitute for or superior to the measures of financial performance prepared in accordance with GAAP.

Bill Roeschlein: The non-GAAP financial measures should not be considered as a substitute for or superior to the measures of financial performance prepared in accordance with GAAP. Finally, I'd like to remind everyone that this conference call is being webcast, and a recording will be made available for replay on Tigo's investor relations website at investors.tigoenergy.com. With that, I'd like to now turn the call over to Tigo CEO, Zvi Alon. Zvi?

Speaker #1: Finally, I'd like to remind everyone that this conference call is being webcast, and a recording will be made available for replay on Tigo's investor relations website at investors.tigoenergy.com.

Speaker #1: With that, I'd like to now turn the call over to TIGO CEO Zvi Alon. Zvi, thank you, Bill. To begin today's discussion, I will highlight key areas in our recent financial and operational performance before turning the call over to our CFO, Bill.

Zvi Alon: Thank you, Bill. To begin today's discussion, I will highlight key areas in our recent financial and operational performance before turning the call over to our CFO, Bill. He will discuss our financial results for Q1 in more depth, as well as provide our guidance for Q2 of 2026 and full year of 2026. After that, I will share some closing remarks, tell you about the outlook, and then open the call for questions from the analysts. Business update. We delivered a strong start to 2026 despite the typical weather-related seasonality in our end markets. To be more specific, in Q1 of 2026, we reported a total revenue of $25.2 million, representing a 33.7% increase compared to Q1 of 2025.

Speaker #1: He will discuss our financial results for the first quarter in more depth, as well as provide our guidance for the second quarter of 2026 and full year of 2026.

Speaker #1: After that, I will share some closing remarks, tell you about the outlook, and then open the call for questions from the analysts. Business update.

Speaker #1: We delivered a strong start to 2026, despite the typical weather-related seasonality in our end markets. To be more specific, in the first quarter of 2026, we reported total revenue of $25.2 million, representing a 33.7% increase compared to the first quarter of 2025.

Zvi Alon: By geography, we saw seasonally stronger performance on a year-over-year basis with the EMEA region during the quarter, which comprised 69.5% of our revenue. Recently, we also announced that our enhanced Tigo GO Battery is now available in the European residential market and is expected to further strengthen our European presence with storage capacity up to 47.9 kWh and integrated heating for cold weather operations. Within Americas region, which comprised 20.9% of our revenue, we saw higher performance on a year-over-year basis, but lower results quarterly as the buyers have accelerated purchases late last year ahead of the expiration of residential clean energy tax credit. By country, we performed exceptionally well in Italy, which grew 140.8 sequentially, and again in APAC, in Australia, which grew 64.3% compared to Q4.

Speaker #1: By geography, we saw seasonally stronger performance on a year-over-year basis with the EMEA region during the quarter, which comprised 69.5% of our revenue. Recently, we also announced that our enhanced Tigo GO battery is now available in the European residential market and is expected to further strengthen our European presence, with storage capacity up to 47.9 kilowatt-hours and integrated heating for cold weather operations.

Speaker #1: Within America's region, which comprised 20.9% of our revenue, we saw higher performance on a year-over-year basis. But lower results quarterly as the buyers accelerated purchases late last year ahead of the expiration of residential clean energy tax credit.

Speaker #1: By country, we performed exceptionally well in Italy, which grew 140.8% sequentially, and again in APAC, in Australia, which grew 64.3% compared to Q4. I would also like to highlight strong growth in the Czech Republic and Poland where an unusually cold weather pattern during Q4 had significantly impacted solar installations.

Zvi Alon: I would also like to highlight strong growth in the Czech Republic and Poland, where an unusually cold weather patterns during Q4 had significantly impacted solar installations, as mentioned in our last earning call. These results were offset by seasonal softness in Germany and weaker results in the UK market, where vast growth in 2025 moderated for us in the current quarter. As we look at the energy sector as a whole, energy security is an increasingly important priority for governments, businesses, and homeowners across the globe. The recent geopolitical developments in Iran continue to highlight importance of energy independence worldwide. As energy markets remain volatile, we believe Tigo is well-positioned to support installers, homeowners, and commercial customers seeking flexible, reliable, and intelligent solar and storage solutions.

Speaker #1: As mentioned in our last earnings call, these results were offset by seasonal softness in Germany and weaker results in the UK market, where robust growth in 2025 moderated for us in the current sector as a whole. Energy security is an increasingly important priority for governments, businesses, and homeowners across the globe.

Speaker #1: The recent geopolitical developments in Iran continue to highlight the importance of energy independence worldwide. As energy markets remain volatile, we believe Tigo is well-positioned to support installers, homeowners, and commercial customers seeking flexible, reliable, and intelligent solar and storage solutions.

Speaker #1: Finally, as we look forward or towards the rest of the year, I would like to share three specific growth catalysts that I expect will drive accelerated growth for TIGO.

Zvi Alon: Finally, as we look forward or towards the rest of the year, I would like to share three specific growth catalysts that I expect will drive accelerated growth for Tigo. First is our partnership with EG4, which is just now beginning to kick off with the first deliveries occurring this month. This partnership is expected to provide the US market with an IRA 45X and IRA 48E ITC credit-qualified optimized inverter solutions. Second, in our new line of new Tigo GO Batteries for the US and EMEA markets, this provides a compelling and complete solution for TPOs in the US and addresses market requirements for additional storage capacity in EMEA region. Third is the positive activity we are seeing in our pipeline for large-scale utility deals, where we believe as a competitive advantage. With that, I would like to turn it over to Bill. Bill?

Speaker #1: First, is our partnership with EG4, which is just now beginning to kick off with the first deliveries occurring this month. This partnership is expected to provide the US market with an IRS 45X and IRS 48E ITC credit qualified optimized inverter solutions.

Speaker #1: Second, in our new line of GO ESS batteries for the US and EMEA markets, this provides a compelling and complete solution for TPOs in the US and addresses market requirements for additional storage capacity in the EMEA region.

Speaker #1: And third is the positive activity we are seeing in our pipeline for large-scale utility deals, where we believe we have a competitive advantage. And with that, I would like to turn it over to Bill.

Speaker #1: Bill, thank you, Zvi. Turning now to our financial results for the first quarter ended March 31st, 2026. Revenue for the first quarter 2026 increased 33.7% to 25.2 million from 18.8 million in the prior year period.

Bill Roeschlein: Thank you, Zvi. Turning now to our financial results for the first quarter ended 31 March 2026. Revenue for the first quarter of 2026 increased 33.7% to $25.2 million from $18.8 million in the prior year period. On a sequential basis, revenues decreased 16.1%, despite improved results coming from many countries in the EMEA region, including the Czech Republic, Italy, and Spain. By region, EMEA revenue was $17.5 million or 69.5% of total revenues and a 3.2% sequential decrease. Americas revenue was $5.3 million or 20.9% of total revenues and a 43% sequential decrease. APAC revenue was $2.4 million or 9.6% of total revenues and a 10.2% sequential decrease.

Speaker #1: On a sequential basis, revenues decreased 16.1% despite improved results coming from many countries in the EMEA region, including the Czech Republic, Italy, and Spain.

Speaker #1: By region, EMEA revenue was 17.5 million or 69.5% of total revenues. And a 3.2% sequential decrease. America's revenue was 5.3 million or a 20.9% of total revenues.

Speaker #1: And a 43% sequential decrease. And APAC revenue was 2.4 million or 9.6% of total revenues. And a 10.2% sequential decrease. By product family, for the first quarter of 2026, MLPE revenue represented 20.8 million of revenue or 82.4% of total revenues.

Bill Roeschlein: By product family, for Q1 2026, MLPE revenue represented $20.8 million of revenue or 82.4% of total revenues. GoESS represented $4 million or 15.8% of total revenues, and Predict+ represented $0.5 million or 1.8% of total revenues during the quarter. Gross profit for Q1 2026 was $10.8 million or 42.8% of revenue, compared to a gross profit of $7.2 million or 38.1% of revenue in the comparable year-ago period. Improvement in gross margin is largely due to the absence of warranty-related charges in the most recent quarter compared to the year-ago period. Operating expenses for Q1 increased 18.4% to $13.2 million, compared to $11.2 million in the prior year period.

Speaker #1: GO ESS represented 4 million or 15.8% of total revenues. And predict plus represented 0.5 million or 1.8% of total revenues during the quarter. Gross profit for the first quarter of 2026 was 10.8 million or 42.8% of revenue, compared to a gross profit of 7.2 million or 38.1% of revenue in the comparable year-ago period.

Speaker #1: Improvement in gross margin is largely due to the absence of warranty-related charges in the most recent quarter compared to the year-ago period. Operating expenses for the first quarter increased 18.4% to 13.2 million, compared to 11.2 million in the prior year period.

Speaker #1: The increase was driven primarily by bad debt expense of $1 million as a result of the bankruptcy of a European distributor during the quarter.

Bill Roeschlein: The increase was driven primarily by bad debt expense of $1 million as a result of the bankruptcy of a European distributor during the quarter. We do expect a portion of this amount to be recoverable through insurance in a future period. Operating loss for Q1 decreased by 19.4% to $6.4 million compared to operating loss of $4 million in the prior year period. GAAP net loss for Q1 was $1.8 million, compared to a net loss of $7 million for the prior year period. Non-GAAP net loss, which we are introducing this quarter and reconciled from GAAP net loss solely by excluding stock-based compensation, totaled $0.1 million, compared to a non-GAAP net loss of $5.4 million in the prior year period.

Speaker #1: We do expect a portion of this amount to be recoverable through insurance in a future period. Operating loss for the first quarter decreased by 3.4% to 24 million compared to operating loss of 4 million in the prior year period.

Speaker #1: Gap net loss for the first quarter was 1.8 million compared to a net loss of 7 million for the prior year period. Non-gap net loss, which we are introducing this quarter and reconciled from gap net loss solely by excluding stock-based compensation, totaled 0.1 million.

Speaker #1: Compared to a non-gap net loss of 5.4 million in the prior year period. We believe this measure provides investors with additional insight into our progress for achieving consistent gap net income.

Bill Roeschlein: We believe this measure provides investors with additional insight into our progress toward achieving consistent GAAP net income. Adjusted EBITDA loss for Q1 decreased 76.8% to $0.5 million, compared to an adjusted EBITDA loss of $2 million in the prior year period. As a reminder, adjusted EBITDA is a non-GAAP measure that represents net loss as adjusted for interest and other expenses, income tax expense, depreciation, amortization, stock-based compensation, and M&A transaction expenses. Primary shares outstanding at the end of the quarter were 75.9 million. Turning to the balance sheet, accounts receivable net increased this quarter to $14.2 million, compared to $13.9 million last quarter and increased from $10.4 million in the year-ago comparable period.

Speaker #1: Adjusted EBITDA loss for the first quarter decreased 76.8% to 0.5 million, compared to an adjusted EBITDA loss of 2 million in the prior year period.

Speaker #1: As a reminder, adjusted EBITDA is a non-gap measure that represents net loss as adjusted for interest in other expenses income tax expense depreciation amortization stock-based compensation and M&A transaction expenses.

Speaker #1: Primary shares outstanding at the end of the quarter were 75.9 million. Turning to the balance sheet, accounts receivable net increased this quarter to 14.2 million compared to 13.9 million last quarter and increased from 10.4 million in the year ago comparable period.

Speaker #1: Inventories, net, decreased by $6.5 million, or 20.7%, to $24.8 million compared to $31.3 million last quarter, and increased compared to $18.9 million in the year-ago comparable period.

Bill Roeschlein: Inventories net decreased by $6.5 million or 20.7% to $24.8 million, compared to $31.3 million last quarter and increased compared to $18.9 million in the year-ago comparable period. Cash, cash equivalents, and short and long-term marketable securities totaled $11.6 million at 31 March 2026. On a sequential basis, cash increased by $3.9 million as we successfully closed a registered direct offering of approximately $15 million during the quarter. In addition, we closed on a credit facility with Wells Fargo Bank at the end of Q1. The facility provides up to $10 million of availability based upon a borrowing-based formula consisting of certain accounts receivable and inventory held by the company. No drawdowns were taken during Q1.

Speaker #1: Cash equivalents and short and long-term marketable securities totaled 11.6 million at March 31st, 2026. On a sequential basis, cash increased by 3.9 million as we successfully closed the registered direct offering of approximately $15 million during the quarter.

Speaker #1: In addition, we closed on a credit facility with Wells Fargo Bank at the end of the first quarter. The facility provides up to $10 million of availability based upon a borrowing-based formula consisting of certain accounts receivable and inventory held by the company.

Speaker #1: No drawdowns were taken during the first quarter. Turning now to our financial outlook for the second quarter of 2026 and full year of 2026.

Bill Roeschlein: Turning now to our financial outlook for Q2 2026 and full year 2026. As a reminder, Tigo provides quarterly guidance for revenue as well as adjusted EBITDA, as we believe these metrics are key indicators for the overall performance of our business. For Q2 2026, we expect revenues and adjusted EBITDA to be in the following range. We expect revenues in Q2 ended 30 June 2026 to range between $30 million and $32 million. We expect adjusted EBITDA to range between $1 million and $3 million. For the full year 2026, we continue to expect revenues to range between $130 million and $135 million. That completes my summary, and I'd like to now turn the call back over to Zvi for final remarks. Zvi?

Speaker #1: As a reminder, TIGO provides quarterly guidance for revenue as well as adjusted EBITDA as we believe these metrics are key indicators for the overall performance of our business.

Speaker #1: For the second quarter of 2026, we expect revenues and adjusted EBITDA to be in the following range. We expect revenues in the second quarter ended June 30, 2026, to range between $30 million and $32 million.

Speaker #1: We expect adjusted EBITDA to range between $1 million and $3 million dollars. For the full year of 2026, we continue to expect revenues to range between $130 million and $135 million dollars.

Speaker #1: That completes my summary, and I'd like to now turn the call back over to Zvi for final remarks. Zvi?

Speaker #2: Thanks, Bill. We are pleased with how we've started 2026. And the fractions we are seeing across our key markets. The continued predictability of our business reinforces our confidence in sustaining growth through the remainder of the year.

Zvi Alon: Thanks, Bill. We are pleased with how we have started 2026 and the traction we are seeing across our key markets. The continued predictability of our business reinforces our confidence in sustaining growth through the remainder of the year, and we expect to maintain our competitive outperformance. We enter the remainder of the year with a strong foundation and a clear path to follow, and we're excited about the opportunities ahead. With that, operator, please open the call for Q&A.

Speaker #2: And we expect to maintain our competitive outperformance. We entered the reminder of the year with a strong foundation and a clear path forward. And we're excited about the opportunities ahead.

Speaker #2: With that, operator, please open the call for Q&A.

Speaker #3: Thank you. At this time, we will conduct the question-and-answer session. As a reminder, to ask a question, you will need to press star 11 on your telephone and wait for your name to be announced.

Operator: Thank you. Our first question comes from the line of Philip Shen with Roth Capital Partners. Philip, your line is live.

Speaker #3: To withdraw your question, please press star 11 again. Please stand by while we close the priority roster. Our first question comes from the line of Philip Shen with Roth Capital Partners.

Speaker #3: Philip, your line is live.

Speaker #4: Hi. Thanks for taking my questions. One at the start with the potential for the EU to ban Chinese inverters. And wanted to understand if you could be a beneficiary of that, what have you learned about this, and how quickly could this ban become effective?

Philip Shen: Hi, thanks for taking my questions. Wanted to start with the potential for the EU to ban Chinese inverters and wanted to understand if you could be a beneficiary of that. What have you learned about this, and how quickly could this ban become effective? It seems like it could be or may be effective already. Are you seeing a change in the business at all already? Thanks.

Speaker #4: It seems like it could be or may be effective already. So are you seeing a change in the business at all already? Thanks.

Zvi Alon: We are aware of the change. It actually started, I would say probably last year sometime, there are a couple of countries already that are banning Chinese-controlled monitoring systems and devices. We do believe that it would actually increase the market share for our solutions out there. We, we see it as a positive contributor for our solutions in the market. We have been touting the security of us being US and monitored in the US solutions for quite some time, that seems to be obviously working with those sentiments which are in the market in general.

Speaker #2: So we are aware of the change. It actually started I would say probably last year sometime. And there are a couple of countries already that are banning Chinese-controlled monitoring systems and devices.

Speaker #2: And so we do believe that it would actually increase the market share for our solutions out there. And so we see it as a positive contributor for our solutions in the market.

Speaker #2: We have been touting the security of us being US and monitored in the US solutions for quite some time. And that seems to be obviously working with those sentiments which are in the market in general.

Speaker #4: Okay. Thanks, Zvi. Are you seeing a change in demand for your business because of this, or is it hard to discern that the demand is coming from this?

Philip Shen: Okay. Thanks, Zvi. Are you seeing a change in demand for your business because of this, or is it hard to discern that the demand is coming from this?

Zvi Alon: Yes, right now it's hard to actually say that it is correlated. In general, I can tell you that we've seen Europe starting to wake up towards the end of the quarter, Q1. From that perspective, we are fairly confident it will continue. That addition of the banning of Chinese will just accelerate it and help more. I can tell you that our optimizers are doing exceptionally well in the what we see in the market.

Speaker #2: It's hard to yes. Right now, it's hard to actually say that it is correlated. In general, I can tell you that we've seen Europe starting to wake up towards the end of the quarter.

Speaker #2: The first quarter. And from that perspective, we are fairly confident it will continue and that addition of the banning of Chinese will just accelerate it and help more.

Speaker #2: But I can tell you that our optimizers are doing exceptionally well in the what we see in the market.

Speaker #4: Great, thanks, Zvi. Can you elaborate more on that? I know you had a lot of volume, most of it from Europe. In the quarter, that mix was about 70% from EMEA or Europe.

Philip Shen: Great. Thanks, Zvi. Can you elaborate more on that? I know, you know, you had a lot of volume, most of it from Europe in the quarter. That mix of, you know, call it, 70% from EMEA or Europe. Do you think that mix stays similar through the rest of this year? Maybe give us a little more color on which countries are strong and maybe which countries have been less strong but could become stronger ahead.

Speaker #4: Do you think that mix stays similar through the rest of this year? And maybe give us a little more color on which countries are strong and maybe which countries have been less strong but could become stronger ahead.

Bill Roeschlein: We've been sort of trending in these percentages for a little bit of time here, about 65%, 70% from EMEA. It was once higher than that. The US has really picked up steam for us and with the Repowering initiative that we've had and now with the introduction of our new hybrid inverter and battery solution, along with EG4 Electronics partnership for optimized inverters, we think that Europe, the US could be a market where we pick up a good share. Regardless of the macro condition there. That might drive the EMEA region perhaps to be a little bit less than 7% by the time we get to the end of the year.

Speaker #2: So, we've been sort of trending in these percentages for a little bit of time here—about 65 to 70 percent from EMEA. It was once higher than that.

Speaker #2: But the US has really picked up steam for us. And with the repower initiative that we've had and now with the introduction of our new hybrid inverter and battery solution, along with EG4 partnership for optimized inverters, we think that Europe the US could be a market where we pick up a good share regardless of the macro condition there.

Speaker #2: So that might drive the EMEA region perhaps to be a little bit less than 7% by the time we get to the end of the year.

Speaker #2: We'll just have to see how that plays out. Within the European area, we've historically been strong in Italy, Germany, those being the two biggest economies.

Bill Roeschlein: We'll just have to see how that plays out. Within the European area, we've historically been strong in Italy, Germany, those being the two biggest economies last year with the UK. Germany has been by most accounts big but sluggish. I'd say we've had just we've had decent growth, but the areas where we've seen some really outsized growth that's really working in our favor, and I think it's gonna work out this way in 2026 as well, is the UK was really great because we came in with almost 0 market share and just quickly established a good revenue base coming into that country.

Speaker #2: Last year was the UK. Germany has been by most accounts big, but sluggish. And I'd say we've had just we've had decent growth, but the areas where we've seen some really outsized growth that's really working in our favor, and I think it's going to work out this way in 2026 as well, is the UK was really great because we came in with almost zero market share and this quickly established a good revenue base coming into that country.

Speaker #2: And in 2026, we're making a considered effort to go after more of the European Eastern European theater where we talked about them this call before.

Bill Roeschlein: In 2026, we're making a concerted effort to go after more of the European, Eastern European theater, where we talked about on this call before, some competitors have withdrawn a bit or reduced their footprint. That's where Slovenia, Romania, Poland, even the Czech Republic, which again, we've been doing strong for a while now, but there's still additional market share to be picked up there. We're sort of, like, expanding beyond our traditional strengths in Italy, Germany, and going a little bit more east and north, if you will.

Speaker #2: Some competitors have withdrawn a bit or reduced their footprint. And so that's where Slovenia, Romania, Poland, even the Czech Republic—which, again, we've been doing strong for a while now, but there's still additional market share to be picked up there.

Speaker #2: So we're sort of expanding beyond our traditional strengths in Italy, Germany, and going a little bit more east and north, if you will.

Speaker #4: Great, thanks, Bill. You mentioned repowering. Can you give us some sense of the success that you're having there? It sounds like this is a big opportunity.

Philip Shen: Great. Thanks, Bill. You mentioned Repowering. Can you give us some sense of how the success that you're having there? It sounds like, you know, this is a big opportunity. If you can quantify anything in terms of how much of your total revenue or total US revenue that could be for 2026, that could be very helpful.

Speaker #4: If you can quantify anything in terms of how much of your total revenue or total US revenue that could be for '26 that could be very helpful.

Speaker #2: Sure. So it more than doubled. It was about 23% of 2025. Most recently, it was 20%. Again, Zvi mentioned we did have a lot of we believe we had some pull-in orders related to the '25D expiration that kind of muddled the overall measurement of that.

Bill Roeschlein: Sure. It more than doubled. It was about, you know, 23% of 2025. Most recently, it was 20%. Again, Zvi mentioned, we believe we had some pull-in orders related to the 25D expiration that kind of muddled the overall measurement of that. We're still working with the same installers who have a brisk book of business, and we again expect another year of growth coming from that side of the house. We have a very unique hybrid inverter that, you know, fits nicely.

Speaker #2: But we're still working with the same installers who are have a brisk book of business. And we again expect another year of growth coming from that side of the house.

Speaker #2: We have a very unique hybrid inverter that fits nicely. It's got the right form factor. And it's got the right ability to accept varying voltage levels and minimal amount of wiring rewiring required.

Bill Roeschlein: It's got the right form factor, and it's got the right ability to accept different varying voltage levels and minimal amount of wiring, rewiring required. There's just a lot of advantages to our solution that fits in well with Repowering. Really, I think you're gonna now layer in our initiative with our GO ESS battery hybrid inverter for the year, along with EG4, and I think the US market could be very, very strong growth for us this year.

Speaker #2: So there's just a lot of advantages to our solution that fits in well with repower. But really, I think you're going to now layer in our initiative with our GoESS battery hybrid inverter for the year, along with EG4.

Bill Roeschlein: There's just a lot of advantages to our solution that fits in well with Repowering. Really, I think you're gonna now layer in our initiative with our GO ESS battery hybrid inverter for the year, along with EG4, and I think the US market could be very, very strong growth for us this year.

Speaker #2: And I think the US market could be very, very strong growth for us this year. And actually, on the repower one additional point is that the mode those systems age the better it is for us.

Zvi Alon: Actually, on the Repowering, one additional point is that the more those systems age, the better it is for us. We've identified this market early, and we've been playing in it for quite some time and gaining quite nice momentum. As it ages, it should be better for us.

Speaker #2: We've been an early we've identified this market early, and we've been playing for it in it for quite some time. And gaining quite nice momentum.

Speaker #2: So as it ages, it should be better for us.

Speaker #4: Great. Okay. Last one for me. That sounds exciting. Let's move over to the utility-scale solar opportunity. Zvi, you mentioned that there's a large pipeline of opportunity there.

Philip Shen: Great. Okay. Last one for me. That sounds exciting. Let's move over to the utility scale solar opportunity. Zvi, you mentioned that there's a large pipeline of opportunity there. I'm guessing this is tied to Predict+, which is a software package that you guys have. Was wondering if this is also tied to your optimizer opportunity. Just give us a little more color on what that looks like and how that could drive 2026.

Speaker #4: And so I'm guessing this is tied to predict plus. Which is a software package that you guys have. But I was wondering if this is also tied to your optimizer opportunity.

Speaker #4: So just give us a little more color on what that looks like and how that could drive 2026.

Zvi Alon: Yes, I did mention last time that we see an increase in activity in utility scale, and that continues. I don't wanna make any pre-announcements, which is not the right thing to do. In general, we do see a momentum in both the Predict+ as well as the optimization. On the optimization, I would add that we see two main drivers. One is obviously new installations. We did mention the large installation in Spain, which is now operational, up and running, right next to the Madrid airport, which we got late last year. It was 142MW. We see in the pipeline similar sized projects and a number of them. We are fairly excited about it and optimistic.

Speaker #2: So yes. I did mention last time that we see an increase in activity in utility scale. And that continues I don't want to make any pre-announcements, which is not the right thing to do.

Speaker #2: But in general, we do see momentum in both the Predict Plus as well as the optimization. And on the optimization, I will add that we see two main drivers.

Speaker #2: One is obviously new installations. And we did mention the large installation in Spain which is now operational up and running right next to the Madrid airport.

Speaker #2: Which we got late last year. It was 142 megawatts. And we see in the pipeline similar-sized projects and number of them. So we are fairly excited about it and optimistic.

Speaker #4: Great. Thank you very much. I'll pass it on.

Philip Shen: Great. Thank you very much. I'll pass it on.

Speaker #2: Thank you.

Zvi Alon: Thank you.

Speaker #1: Thank you. Our next question comes in from Helm Capital Group. Eric, your line is live.

Operator: Thank you. Our next question comes from Eric Palan Capital Group. Eric, your line is live.

Eric: Hi, Zvi. Hi, Bill.

Eric Stine: Hi, Zvi. Hi, Bill.

Speaker #4: Hi, Zvi. Hi, Bill.

Zvi Alon: Hi.

Speaker #2: Hi.

Speaker #3: Hi.

Bill Roeschlein: Hi.

Speaker #4: Hey. So I know you talked about the EU, the outlook here in '26, but it was kind of more from a strategic point of view.

Eric: Hey. I know you talked about the EU, the outlook here in 2026, but it was kind of more from a strategic point of view. I'm wondering if you can just dig in a little bit on the market improvement. You know, people starting to talk about green shoots. You mentioned that you saw that towards the end of the quarter. I mean, where does that stand? I know that you mentioned, at least in Q1, some softness in Germany and the UK, and those are two countries where, you know, you are starting to see indications of that improvement. When do you anticipate you might start to see the benefit from that? You know, is it Q2? It seems like it's not that type of expectation is not necessarily part of your outlook.

Eric Stine: Hey. I know you talked about the EU, the outlook here in 2026, but it was kind of more from a strategic point of view. I'm wondering if you can just dig in a little bit on the market improvement. You know, people starting to talk about green shoots. You mentioned that you saw that towards the end of the quarter. I mean, where does that stand? I know that you mentioned, at least in Q1, some softness in Germany and the UK, and those are two countries where, you know, you are starting to see indications of that improvement. When do you anticipate you might start to see the benefit from that? You know, is it Q2? It seems like it's not that type of expectation is not necessarily part of your outlook.

Speaker #4: I'm wondering if you can just dig in a little bit on the market improvement. People are starting to talk about green shoots. You mentioned that you saw that towards the end of the quarter.

Speaker #4: I mean, where does that stand? I know that you mentioned at least in Q1 some softness in Germany and the UK. And those are two countries where you are starting to see indications of that improvement.

Speaker #4: So when do you anticipate you might start to see the benefit from that? Is it Q2? It seems like it's not that type of expectation is not necessarily part of your outlook.

Eric: You know, when might you see it, and when do you become convinced that it is something that is sustainable market improvement?

Eric Stine: You know, when might you see it, and when do you become convinced that it is something that is sustainable market improvement?

Speaker #4: But when might you see it? And when do you become convinced that it is something that is sustainable market improvement?

Zvi Alon: Thanks, Eric. We started seeing an improvement in the second part of Q1. The first part of Q1 was very sleepy, to be honest, which is fine, that's normal. It's not like it was different. Despite the fact, we still have seen a 30% growth quarter-over-quarter, year-over-year. I believe that Q2, by the guidance we provided, is also demonstrating a nice growth year-over-year, it is based on some of the confidence we see in all regions, including Europe, which is the largest region we have. From our perspective, we do believe that we will continue to see market share gain.

Speaker #2: Thanks, Eric. So we started seeing an improvement in the second part of Q1. The first part of Q1 was very slippy, to be honest.

Speaker #2: Which is fine. That's normal. It's not like it was different. But despite the fact we still have seen a 30% growth quarter over quarter, year over year.

Speaker #2: I believe that Q2, by the guidance we provided, is also demonstrating a nice growth year over year. And obviously, it is based on some of the confidence we see in all regions.

Speaker #2: Including Europe, which is the largest region we have. And so from our perspective, we do believe that we will continue to see market share gain and also Bill mentioned that we expected into Eastern Europe in some places where our competitors have left.

Zvi Alon: Bill mentioned that we expanded into Eastern Europe in some places where our competitors have left, and we've seen some fairly good momentum. Europe for us is actually showing some fairly good signs, despite the fact that Germany was a little bit slow. I will highlight that we have seen Germany starting to get back to life in the second part of Q1, the same as what I've highlighted for Q1. We are not quite sure they will get back to the same full strength of last year or more, but we have seen an improvement there, which is causing us to feel a bit more optimistic. In addition, the my mention on the success in the utility scale projects, a good portion of them are in Europe.

Speaker #2: And we've seen some fairly good momentum. So Europe, for us, is actually showing some fairly good signs, despite the fact that Germany was a little bit slow.

Speaker #2: I will highlight that we have seen Germany starting to get back to the second part of Q1. The same as what I've highlighted for Q1.

Speaker #2: So we are not quite sure if they will get back to the same full strength of last year or more. But we have seen an improvement there.

Speaker #2: Which is causing us to build a bit more optimistic. In addition, the I mentioned on the success in the utility-scale projects. A good portion of them are in Europe.

Zvi Alon: We don't want to get into specificity right now, but this is a new area for us, which is based on the success in Spain we had and some new opportunities we've identified. We are actually fairly we believe fairly strong that Europe is going to be a very good place for us going moving forward.

Speaker #2: So we don't want to get into specificity right now. But this is a new area for us. Which is based on the success in Spain we had.

Speaker #2: And some new opportunities we've identified. And so we actually believe fairly strongly that Europe is going to be a very good place for us to grow, moving forward.

Speaker #4: Yep. Okay. That is helpful. And then I guess maybe sticking with utility scale, I know that you have talked about several times you've got a number of opportunities.

Eric: Yep. Okay. That is helpful. I guess maybe sticking with utility scale, you know, I know that you have talked about several times, you've got a number of opportunities. You've set the guidance in a spot that you believe is a good place to be. It's obviously very good growth. You've also talked about these opportunities, whether it's goESS, EG4, that would mean potentially significant growth in 2026. I'm curious, I mean, where would you put utility scale in that? Is that something that you're starting to see good signs, but that's more of a 2027 event, where it really starts to impact financials? Is it something that potentially, depending on timing, could be more of a 2026 event?

Eric Stine: Yep. Okay. That is helpful. I guess maybe sticking with utility scale, you know, I know that you have talked about several times, you've got a number of opportunities. You've set the guidance in a spot that you believe is a good place to be. It's obviously very good growth. You've also talked about these opportunities, whether it's goESS, EG4, that would mean potentially significant growth in 2026. I'm curious, I mean, where would you put utility scale in that? Is that something that you're starting to see good signs, but that's more of a 2027 event, where it really starts to impact financials? Is it something that potentially, depending on timing, could be more of a 2026 event?

Speaker #4: You've set the guidance in a spot that you believe is a good place to be. It's obviously very good growth. But you've also talked about these opportunities, whether it's GOESS, EG4, that would mean potentially significant growth in '26.

Speaker #4: So, I'm curious. I mean, where would you put utility scale in that? Is that something that you're starting to see good signs of? But that's more of a 2027 event.

Speaker #4: Where it really starts to impact financials? Or is it something that potentially, depending on timing, could be more of a 2026 event?

Zvi Alon: Let me categorically be very clear. The increase in utility footprint is in 2026, and not the end of the year, and I will just leave it there.

Speaker #2: So let me categorically be very clear. The increase in utility footprint is in 2026. And not the end of the year. And I will just leave it there.

Zvi Alon: Let me categorically be very clear. The increase in utility footprint is in 2026, and not the end of the year, and I will just leave it there.

Speaker #2: So it's yeah.

Eric: Okay

Eric Stine: Okay

Zvi Alon: It's Yeah.

Eric: Okay.

Eric Stine: Okay.

Speaker #4: Okay.

Bill Roeschlein: I would just add that we're we don't normally talk about pipeline, but the deals that we're working on are getting to the point where they are, you know, ripe for a decision. There's enough of those in our pipeline where we are at least finalists, where we feel confident that we'll have something to talk about this year.

Speaker #2: Just to add that we're we don't normally talk about pipeline. But the deals that we're working on are getting to the point where they are ripe for a decision.

Speaker #2: And so there's enough of those in our pipeline where we are at least finalists. Where we feel confident that we'll have something to talk about this year.

Speaker #4: Okay. And that, I mean.

Eric: Okay. That, I mean.

Eric Stine: Okay. That, I mean.

Zvi Alon: You have been following us for quite some time, so we generally are more conservative. We don't share-

Speaker #2: Yeah. You have been totally gospel quite some time. So we generally have more conservative. We don't share nothing absolutely. And that's how confidence is high.

Eric: Absolutely.

Eric Stine: Absolutely.

Zvi Alon: that information unless our confidence is high.

Speaker #4: Yep. That's why I'm asking. And so I mean, I would just assume we should put this in the category along with those others that could mean it could mean upside to kind of what your view is now.

Eric: Yep. That's why I'm asking. I mean, I would just assume we should put this in the category along with those others that could mean.

Eric Stine: Yep. That's why I'm asking. I mean, I would just assume we should put this in the category along with those others that could mean.

Zvi Alon: Yeah

Eric: could mean upside to kind of what your view is, now. Okay. Maybe last one for me. This is just more a clarification on the Repowering. I know that the primary focus there is on the inverter side, but is that also something that potentially develops from an optimizer side as well as some of these older systems as they upgrade and perhaps they decide, you know, they're 10 years old and decide that they want, you know, that control at the panel level?

Eric Stine: could mean upside to kind of what your view is, now. Okay. Maybe last one for me. This is just more a clarification on the Repowering. I know that the primary focus there is on the inverter side, but is that also something that potentially develops from an optimizer side as well as some of these older systems as they upgrade and perhaps they decide, you know, they're 10 years old and decide that they want, you know, that control at the panel level?

Speaker #4: Okay. Maybe last one for me. This is just more a clarification on the repowering. I know that the primary focus there is on the inverter side.

Speaker #4: But is that also something that potentially develops from an optimizer sign as well as some of these older systems as they upgrade and perhaps they decide they're 10 years old and decide that they want that control at the panel level?

Speaker #2: So it's an outstanding question, Eric. And so you just hit the nail on the top. It actually gives us an access to two potential expansions.

Zvi Alon: It's an outstanding question, Eric, you just hit, you know, the nail on the top. It actually gives us an access to 2 potential expansions. One is the optimizer, as you described it, and the second one is all the solutions we provide with a hybrid inverter, adding a battery is very cost-effective. By virtue of increasing that market share with our solutions in the Repowering, it will give us an opportunity to sell additional batteries as well at a very cost-effective way compared to any other solution. Okay. Thank you. Very welcome. Thank you.

Speaker #2: One is the optimizer as you've described it. And the second one seems all the solutions we provide are with a hybrid inverter. Adding a battery is very cost-effective.

Speaker #2: So by virtue of increasing that market share with our solutions in the repower, it will give us an opportunity to sell additional batteries as well at a very cost-effective way compared to any other solution.

Speaker #4: Okay. Thank you.

Eric Stine: Okay. Thank you.

Zvi Alon: Very welcome. Thank you.

Speaker #2: Very welcome. Thank you.

Operator: Thank you. Our next question comes from the line of Sameer Joshi with H.C. Wainwright & Co. Sameer, your line is open.

Speaker #1: Thank you. Our next question comes from the line of Samir Joshi with HC Wainwright. Samir, your line is open.

Sameer Joshi: Thanks. Thanks for taking my questions. A lot of our topics have been covered, but I don't think we discussed enough of the GO ESS opportunity and traction. It seems that, with $4 million in revenues, it is sort of high since 2023. Are you looking at the meaningful contribution from GO ESS during 2026 and is it a contributor to growth?

Speaker #5: Thanks. Thanks for taking my questions. A lot of our topics have been covered, but I don't think we discussed enough of the GOESS opportunity and the traction.

Speaker #5: It seems that with ForWish million dollars in revenues, it is sort of high since 2023. Are you looking at the meaningful contribution from GOESS during 2026?

Speaker #5: And is it a contributor to growth?

Bill Roeschlein: We believe that with our next generation that we have here, we expect that it will be widely accepted by the market and the feature functionality, price point, et cetera, and size all line up to what customers are asking for. In both in the US, with new sales, TPO opportunities, and even Repowering, which is a captive market for us to get battery revenue from. In Europe, we have gone or we've addressed to see the market's desire for a larger storage capacity for both three-phase and single-phase markets, especially in the three-phase market.

Speaker #2: We believe that with our next generation that we have here, we expect that it will be widely accepted by the market. And it'd be the feature functionality price point, etc., and size are all lined up to what customers are asking for.

Speaker #2: And so both in the US with new sales, TPO opportunities, and even repower, which is a captive market for us to get battery revenue from.

Speaker #2: And then in Europe, we have gone or we've addressed the market's desire for a larger storage capacity. For both three-phase and single-phase markets, especially in the three-phase market.

Speaker #2: And so our new generation of battery has both the cold weather functionality, which is important in that market, and the ability to expansion ability up to almost 48 kilowatt-hours.

Bill Roeschlein: Our new generation of battery has both the cold weather functionality, which is important in that market and ability expansion ability up to almost 48 kWh. That's what the market's been asking for, and that's why we're excited about being able to introduce it now. We, we expect 2026 to be, we expect to gain a lot of positive momentum out of both markets. Yeah.

Speaker #2: And so that's what the market's been asking for. And that's why we're excited about being able to introduce it now. And so we expect '26 to be we expect to gain a lot of positive momentum out of both markets.

Speaker #2: Yes.

Sameer Joshi: Understood. Thanks for that color. The second question is, inventory was down quarter over quarter sequentially, $6.5 million down. Should we read anything into this, or and then part two of that question is, how is the supply chain and how quickly can you rebuild this inventory, especially given traction, or projections for the second or outlook for H2, as well as the hinted, the progress on utility scale?

Speaker #5: Understood. Thanks for that, Keller. And then the second question is, inventory was down quarter over quarter—sequentially, $6.5 million down. Should we read anything into this?

Speaker #5: And then part two of that question is how is the supply chain and how quickly can you rebuild this inventory? Especially given traction or projections for the second or outlook for second half as well as the hinted progress on utility scale.

Bill Roeschlein: We're still in, you know, 8 weeks factory to customer supply chain environment. We're not seeing major hurdles there. We as a corporate metric, we try to keep 90 to 100 days of inventory. We were trending higher than that. Us bringing it down was just part of us trying to again, run the working capital at an optimal level for us. We'll continue to do it that way. You know, we have no problem meeting the utility, any big utility win. The benefit of having a outsourced contract manufacturing business model allows you to scale up and down very quickly, and it's not very difficult to do. We've got the floor space to do it.

Speaker #2: We're still in an eight-week factory to customer supply chain. Environment. So we're not seeing major hurdles there. We as a corporate metric, we try to keep 90 to 100 days of inventory.

Speaker #2: We were trending higher than that. So us bringing it down was just part of us trying to, again, run the working capital at an optimal level for us.

Speaker #2: And so we'll continue to do it that way. We have no problem meeting the utility any big utility win. The benefit of having an outsourced contract manufacturing business model allows you to scale up and down very quickly.

Speaker #2: And it's not very difficult to do. We've got the floor space to do it. We can add another line if and when we need to, so.

Bill Roeschlein: We can add another line if and when we need to.

Sameer Joshi: Understood. Thanks for that. The last one, just a quick one. On operating expenses through the year, should we expect to see any marginal increases or you have enough manpower and resources so that we won't see any meaningful increase in OpEx?

Speaker #5: Understood. Thanks for that. And then the last one, just a quick one. On operating expenses through the year, should we expect to see any marginal increases, or do you have enough manpower and resources so that we won't see any meaningful increase in OPEX?

Speaker #2: Yeah. I think we're trending in that 12 and a half to 13 million dollar range for the rest of the year. If I were to put a wider lens on it, 12 and a half to 13 and a half.

Bill Roeschlein: Yeah. I think we're trending in that twelve and a half to thirteen million dollar range for the rest of the year. If I were to put a wider lens on it, you know, twelve and a half to thirteen and a half, so midpoint $13, somewhere in there, we are able to grow this year without having to add a lot of OpEx, demonstrating the leverageability in our operating model. We've been at this level around $13 for several quarters now. I think that's the right ballpark for it for the rest of the year.

Speaker #2: So midpoint '13. Somewhere in there, we are able to grow this year without having to add a lot of OPEX, demonstrating the leverageability in our operating model.

Speaker #2: So we've been at this level around '13 for several quarters now. So I think that's the right ballpark for it for the rest of the year.

Sameer Joshi: Got it. Thank you. Thanks for taking my questions.

Speaker #5: Got it. Thank you. Thanks for taking my questions.

Speaker #2: Thank you.

Zvi Alon: Thank you.

Speaker #1: Thank you. At this time, this concludes our question and answer session. I'd now like to turn the call back over to Mr. Alon for closing remarks.

Operator: Thank you. At this time, this concludes our question and answer session. I'd now like to turn the call back over to Mr. Alon for closing remarks.

Zvi Alon: Thanks again, everyone for joining us today. I especially want to thank our dedicated employees for their ongoing contributions, as well as our customers and partners for their continued hard work. I also want to thank our investors for their continued support. Operator.

Speaker #2: Thanks again, everyone, for joining us today. I especially want to thank our dedicated employees for their ongoing contributions, as well as our customers and partners for their continued hard work.

Speaker #2: I also want to thank our investors for their continued support. Operator?

Operator: Thank you for joining us today for Tigo's Q1 2026 Earnings Conference Call. You may now disconnect.