FTC Solar Posts 26.1% Q3 Revenue Growth Amid Going-Concern Doubt

FTC Solar Inc. posted 26.1% year-over-year revenue growth in the third quarter, while management concluded there was substantial doubt about the company’s ability to continue as a going concern during the next year.

Revenue for the three months ended Sept. 30 was $32.813 million, up 25.4% from the second quarter. GAAP gross profit totaled $1.901 million, equal to 5.8% of revenue. The quarter’s revenue growth accompanied a $5.181 million adjusted EBITDA loss, a non-GAAP measure.

FTC Solar recorded GAAP net income of $6.702 million, compared with a $23.938 million net loss in the year-earlier quarter. The latest quarter included a $19.480 million gain from a change in the fair value of warrant liability. Basic earnings per share was $0.39, while diluted earnings per share was a loss of $0.54. The diluted-share calculation excluded the warrant-liability gain, resulting in a loss for that measure despite positive GAAP net income.

FTC Solar offers tracker hardware, software and engineering services for utility-scale and distributed solar projects. It forecast fourth-quarter revenue of $44 million to $52 million, with adjusted EBITDA ranging from a $3.9 million loss to break-even. Even the low end of the revenue range is above the third-quarter result, while the EBITDA range still includes a loss.

CEO Anthony Carroll said, “We expect continued significant growth in the fourth quarter with a path to EBITDA profitability in the first quarter of next year.”

At Sept. 30, FTC Solar had $5.076 million in unrestricted cash, $11.608 million in restricted cash and a $16.9 million working-capital deficit. Management cited recurring losses, operating cash outflows, debt obligations and future financial covenants in its going-concern assessment.

Under the credit agreement, a $15 million minimum for unrestricted cash takes effect Jan. 4, 2027. The agreement separately calls for $5 million of principal to be repaid March 31, 2027.