Tigo (TYGO) Q1 2026 Earnings Call Transcript

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Date

Tuesday, May 5, 2026 at 4:30 p.m. ET

Call participants

• Chief Executive Officer — Zvi Alon
• Chief Financial Officer — Bill Roeschlein

Takeaways

• Total Revenue -- $25.2 million, up 33.7% year over year, but down 16.1% sequentially from Q4 2025.
• EMEA Revenue -- $17.5 million, accounting for 69.5% of total revenue, with a 3.2% sequential decline.
• Americas Revenue -- $5.3 million, or 20.9% of total, representing a 43% sequential decrease following prior period channel pull-ins.
• APAC Revenue -- $2.4 million, 9.6% of total, down 10.2% sequentially.
• Country Highlights -- Italy grew 140.8% sequentially, and Australia increased 64.3% over Q4 2025.
• Product Mix -- MLPE represented $20.8 million (82.4%), GO ESS $4.0 million (15.8%), and Predict+ $500 thousand (1.8%).
• Gross Profit -- $10.8 million, with gross margin improving to 42.8% from 38.1% in the prior year due to the absence of warranty-related charges.
• Operating Expenses -- Rose 18.4% to $13.2 million, primarily from a $1.0 million bad debt expense related to a European distributor's bankruptcy.
• Operating Loss -- $6.4 million, up from $4.0 million in the prior year, reflecting increased expenses.
• GAAP Net Loss -- $1.8 million, compared to $7.0 million in the prior-year quarter.
• Non-GAAP Net Loss -- $100 thousand, versus $5.4 million previously, with non-GAAP defined solely by exclusion of stock-based compensation.
• Adjusted EBITDA Loss -- $500 thousand, an improvement from a $2.0 million loss in Q1 2025.
• Inventory -- $24.8 million, reduced by $6.5 million (20.7%) sequentially, driven by working capital optimization.
• Cash, Cash Equivalents, Marketable Securities -- $11.6 million at quarter end, up $3.9 million due to a $15.0 million registered direct offering.
• Credit Facility -- New $10.0 million facility with Wells Fargo Bank established, with no borrowings as of quarter end.
• Q2 2026 Guidance -- Revenue expected between $30.0 million and $32.0 million; adjusted EBITDA expected between $1.0 million and $3.0 million.
• Full-Year 2026 Guidance -- Revenue outlook remains $130.0 million to $135.0 million.
• Repower Segment in U.S. -- CFO Roeschlein stated, "It more than doubled," now representing about 20% of recent U.S. revenue versus 2%-3% in 2025.
• GO ESS Product -- Q1 revenue was $4.0 million, the highest since 2023, with enhanced battery capacity now up to 47.9 kilowatt-hours for EMEA residential market.
• Utility Scale -- Completed a 142 MW project in Spain, with a growing pipeline of similarly sized utility projects.
• Operating Expense Outlook -- CFO Roeschlein said, "trending in the $12.5 million to $13.0 million range for the rest of the year," expecting stable cost structure.

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Risks

• CFO Roeschlein cited, "bad debt expense of $1.0 million as a result of the bankruptcy of a European distributor during the quarter," indicating direct credit exposure.
• Sequential revenue declines in all regions (down 16.1% overall), notably a 43% drop in the Americas, suggest lingering demand volatility and regional channel uncertainty.

Summary

Tigo Energy (NASDAQ:TYGO) delivered year-over-year revenue growth amid sequential declines across all regions, driven by seasonality and prior channel pull-in effects in the Americas. Management outlined three growth catalysts: initiation of the EG4 partnership in the U.S. with anticipated IRS 45X and 48E tax credit benefits, launch of next-generation GO ESS batteries targeting both the U.S. and EMEA, and an expanding pipeline of large-scale utility solar projects with referenced commercial wins in Spain. The company improved gross margins through operational discipline and no warranty-related charges, and further strengthened liquidity with a $15.0 million capital raise and a new $10.0 million undrawn credit facility.

• CEO Alon said, "the banning of Chinese products should accelerate it and help more," highlighting regulatory-driven EMEA tailwinds.
• Expansion in Eastern European markets, such as Poland, Czech Republic, Slovenia, and Romania, is a stated priority as competitors reduce presence in these regions.
• Repowering opportunities in the U.S. now comprise a significantly larger share of segment revenue, attributed to unique product features and the expiration of incentive programs.
• Management indicated utility-scale segment deals are "ripe for a decision" with expected meaningful revenue contribution during fiscal 2026, not deferred to 2027.
• The company's outsourced manufacturing model enables rapid inventory scaling for large utility orders, supporting operational flexibility.

Industry glossary

• MLPE (Module Level Power Electronics): Electronics installed at each solar panel to maximize power output and enable monitoring and rapid shutdown functions.
• IRS 45X / 48E: U.S. federal tax credits providing incentives for domestic clean energy manufacturing and investment.
• TPO (Third-Party Owned): A solar business model where the system is owned by an entity other than the property owner, commonly used in U.S. residential markets.
• Repower: Retrofitting or upgrading existing solar installations, often integrating new inverters, optimizers, or storage to increase performance.
• GO ESS: Tigo’s energy storage system product line, offering batteries and inverters for solar-plus-storage applications.
• Predict+: Tigo's proprietary software solution for utility-scale solar performance optimization and analytics.

Full Conference Call Transcript

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

We would like to remind everyone that some of the matters we will discuss on this call, including our expected business outlook, our ability to increase our revenues and our overall long-term growth prospects, expectations regarding recovery in our industry including the timing thereof, statements about demand for our products, our competitive position and market share, the impact of tariffs, our current and future inventory levels, charges and reserves and their impact on future financial results, inventory supply and its impact on our customer shipments, statements about our revenue, 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 are 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.

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 they are made. During our call today, we will reference certain non-GAAP financial measures. We include GAAP-to-non-GAAP reconciliations in our press release furnished as an exhibit to our Form 8-K. 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 would like to remind everyone that this conference call is being webcast, and a recording will be made available for replay on Tigo Energy, Inc.’s investor relations website at investors.tigoenergy.com.

I will now turn the call over to Zvi Alon, CEO of Tigo Energy, Inc. Zvi?

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, who will discuss our financial results for the first quarter in more depth as well as provide our guidance for 2026 and the 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 market.

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 prior year period. By geography, we saw seasonally stronger performance on a year-over-year basis in 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.

Within the Americas region, which comprised 20.9% of our revenue, we saw higher performance on a year-over-year basis but lower results sequentially as buyers accelerated purchases late last year ahead of the expiration of the 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. We also saw strong growth in the Czech Republic and Poland, where unusually cold weather patterns during Q4 had significantly impacted solar installations.

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 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 the importance of energy independence worldwide. As energy markets remain volatile, we believe Tigo Energy, Inc. is well-positioned to support installers, homeowners, and commercial customers seeking flexible, reliable, and intelligent solar and storage solutions.

Finally, as we look toward the rest of the year, I would like to share three specific growth catalysts that I expect will drive accelerated growth for Tigo Energy, Inc. 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 U.S. market with IRS 45X and IRS 48E ITC credit benefits. Second is our new line of GO ESS batteries for the U.S. and EMEA markets. This provides a compelling and complete solution for TPOs in the U.S. and addresses market requirements for storage capacity in the EMEA region.

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. I will now turn the call over to Bill for the financial results. Bill?

Bill Roeschlein: Thank you, Zvi. Turning now to our financial results for the first quarter ended March 31, 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.

By product family for the first quarter of 2026, MLPE revenue represented $20.8 million, or 82.4% of total revenues. GO ESS represented $4.0 million, or 15.8% of total revenues, and Predict+ represented $500 thousand, or 1.8% of total revenues. 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. 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.

The increase was driven primarily by bad debt expense of $1.0 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 the first quarter decreased by 9.4% to $6.4 million compared to an operating loss of $4.0 million in the prior-year period. GAAP net loss for the first quarter was $1.8 million compared to a net loss of $7.0 million for the prior-year period.

Non-GAAP net loss, which we are introducing this quarter and reconcile from GAAP net loss solely by excluding stock-based compensation, totaled $100 thousand compared to a non-GAAP net loss of $5.4 million in the prior-year period. We believe this measure provides investors with additional insight into our progress toward achieving consistent GAAP net income. Adjusted EBITDA loss for the first quarter decreased 76.8% to $500 thousand compared to an adjusted EBITDA loss of $2.0 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. 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 March 31, 2026. On a sequential basis, cash increased by $3.9 million as we successfully closed a registered direct offering of approximately $15.0 million during the quarter.

In addition, we closed on a credit facility with Wells Fargo Bank at the end of the first quarter. The facility provides up to $10.0 million of availability based upon a borrowing base formula consisting of certain accounts receivable and inventory held by the company. No drawdowns were taken during the first quarter. Turning now to our financial outlook for the second quarter and full year of 2026. As a reminder, Tigo Energy, Inc. 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 the second quarter ended June 30, 2026, we expect revenues to range between $30.0 million and $32.0 million.

We expect adjusted EBITDA to range between $1.0 million and $3.0 million. For the full year of 2026, we continue to expect revenues to range between $130.0 million and $135.0 million. That completes my summary, and I would now like to turn the call back over to Zvi for final remarks.

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 forward, and we are excited about the opportunities ahead. We will now open the call for questions.

Operator: 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 11 on your telephone and wait for your name to be announced. To withdraw your question, please press 11 again. Please standby while we roster. Our first question comes from the line of Philip Shen with Roth Capital Partners. Philip, your line is live.

Philip Shen: Hi. Thanks for taking my questions. I wanted to start with the potential for the EU to ban Chinese inverters, and I 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. 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, last year sometime, and there are a couple of countries already that are banning Chinese-controlled monitoring systems and devices. We do believe that it would increase the market share for our solutions. We see it as a positive contributor for our solutions in the market. We have been touting the security of being monitored in the U.S. for quite some time, and that seems to be working with those sentiments in the market in general.

Philip Shen: 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: It is hard to say that it is correlated right now. In general, I can tell you that we saw Europe starting to wake up towards the end of the first quarter, and from that perspective, we are fairly confident it will continue. The addition of the banning of Chinese products should accelerate it and help more. Our optimizers are doing exceptionally well in what we see in the market.

Philip Shen: Can you elaborate more on that mix? You had a lot of volume, most of it from Europe, in the quarter. That mix of about 70% from EMEA—do you think that stays similar through the rest of this year? And maybe give a bit more color on which countries are strong and which have been less strong but could become stronger ahead?

Bill Roeschlein: We have been trending in these percentages for a bit of time—about 65% to 70% from EMEA. It was once higher than that, but the U.S. has really picked up steam for us. With the repower initiatives that we have, and now with the introduction of our new hybrid inverter and battery solution along with the EG4 partnership for optimized inverters, we think the U.S. could be a market where we pick up a good share regardless of the macro condition there. That might drive the EMEA region to be a little bit less than 70% by the time we get to the end of the year. We will see how that plays out.

Within Europe, we have historically been strong in Italy and Germany, those being the two biggest economies last year along with the UK. Germany has been, by most accounts, big but sluggish. We have had decent growth, but the areas where we have seen really outsized growth that are working in our favor—and I think it will work out this way in 2026 as well—include the UK, which was really great because we came in with almost zero market share and quickly established a good revenue base. In 2026, we are making a concerted effort to go after more of Eastern Europe where, as we have discussed before, some competitors have withdrawn or reduced their footprint.

That includes Slovenia, Romania, Poland, and the Czech Republic, where we have been strong for a while but there is still additional market share to be picked up. We are expanding beyond our traditional strength in Italy and Germany and going a little more east and north.

Philip Shen: You mentioned repowering. Can you give us some sense of the success you are having there? If you can quantify anything in terms of how much of your total revenue or total U.S. revenue that could be for 2026, that would be helpful.

Bill Roeschlein: It more than doubled. It was about 2% to 3% of 2025 and most recently was about 20%. We believe we had some pull-in orders related to the 25D expiration that muddled the overall measurement, but we are still working with the same installers who have a brisk book of business, and we expect another year of growth coming from that side of the house. We have a very unique hybrid inverter with the right form factor, the ability to accept varying voltage levels, and minimal rewiring required. There are a lot of advantages to our solution that fits well with repower.

Layer in our initiative with our GO ESS battery hybrid inverter for the year along with EG4, and I think the U.S. market could be very strong growth for us this year.

Zvi Alon: On the repower, one additional point is that the more those systems age, the better it is for us. We identified this market early and have been planning for it for quite some time and gaining nice momentum. As it ages, it should be better for us.

Philip Shen: Last one for me. Let us move over to the utility-scale solar opportunity. As you mentioned, there is a large pipeline of opportunity there. I am guessing this is tied to Predict+, which is a software package that you have. Is this also tied to your optimizer opportunity? 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 do not want to make any premature announcements, but in general we see momentum in both Predict+ as well as optimization. On the optimization, we see two main drivers. One is new installations, and we mentioned the large installation in Spain, which is now operational, up and running next to the Madrid Airport. We won that late last year. It was 142 megawatts. We see similar-sized projects in the pipeline and a number of them, so we are excited and optimistic.

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

Zvi Alon: Thank you.

Operator: Thank you. Our next question comes from the line of Eric Stine with Cowen Capital Group. Eric, your line is live.

Eric Stine: Hi, Zvi. Hi, Bill. I know you talked about the EU and the outlook in 2026, but it was more from a strategic point of view. Can you 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. Where does that stand? You mentioned softness in Germany and the UK in Q1, and those are two countries where you are starting to see indications of improvement. When do you anticipate you might start to see the benefit from that? Is it Q2? It seems like that type of expectation is not necessarily part of your outlook.

When might you see it, and when do you become convinced that it is a 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, which is normal. Despite that, we still saw about 30% growth year over year. We believe that Q2, by the guidance we provided, also demonstrates nice year-over-year growth, and it is based on confidence we see in all regions, including Europe, which is our largest region. We believe we will continue to see market share gains. Bill mentioned our expansion into Eastern Europe in places where competitors have left, and we have seen good momentum. Europe for us is showing good signs despite Germany being a little slow.

I will highlight that we saw Germany starting to come back to life in the second part of Q1. We are not sure if it will get back to the same full strength of last year or more, but we have seen improvement there, which causes us to be more optimistic. In addition, the success in utility-scale projects—many are in Europe. This is a new area for us based on the success in Spain and new opportunities we have identified, and we believe Europe will be a very good place for us moving forward.

Eric Stine: Sticking with utility scale, you have talked several times about a number of opportunities. You have set the guidance in a spot that you believe is a good place to be—it is very good growth—but you have also talked about opportunities like GO ESS and EG4 that could mean potentially significant growth in 2026. Where would you put utility scale in that? Is that something where you are starting to see good signs that is more of a 2027 event where it really starts to impact financials, or could the timing be more of a 2026 event?

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

Bill Roeschlein: I would add that we do not normally talk about pipeline, but the deals we are working on are getting to the point where they are ripe for a decision. There are enough of those in our pipeline where we are at least finalists that we feel confident we will have something to talk about this year.

Zvi Alon: We have been conservative for quite some time. We do not share prematurely, but our confidence is high.

Eric Stine: Understood. Maybe last one for me on repowering. I know the primary focus is on the inverter side, but is that also something that potentially develops from an optimizer side as these older systems upgrade and perhaps, at ten years old, decide that they want control at the panel level?

Zvi Alon: That is an outstanding question. It gives us access to two potential expansions. One is the optimizer, as you described, and the second is, since our solutions provide a hybrid inverter, adding a battery is very cost effective. By increasing market share with our solutions in repower, it gives us an opportunity to sell additional batteries at a very cost-effective level compared to other solutions.

Eric Stine: Thank you.

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

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

Bill Roeschlein: We believe that with our next generation, we expect it will be widely accepted by the market. The feature functionality, price point, and size are all aligned to what customers are asking for. In the U.S., with new sales, TPO opportunities, and even repower—which is a captive market for us to get battery revenue from—and in Europe, we have addressed the market’s desire for larger storage capacity for both three-phase and single-phase markets, especially three-phase. Our new generation of battery has cold-weather functionality and expansion ability up to almost 48 kilowatt-hours. That is what the market has been asking for, and that is why we are excited to introduce it now.

We expect 2026 to deliver a lot of positive momentum in both markets.

Sameer Joshi: Inventory was down sequentially by $6.5 million. Should we read anything into this? And how is the supply chain? How quickly can you rebuild inventory, especially given outlook for the second quarter and second half as well as the hinted progress on utility scale?

Bill Roeschlein: We are still in an eight-week factory-to-customer supply-chain environment, so we are not seeing major hurdles there. As a corporate metric, we try to keep 90 to 100 days of inventory. We were trending higher than that, so bringing it down was part of running working capital at an optimal level. We have no problem meeting any big utility win. The benefit of having an outsourced contract manufacturing model allows you to scale up and down very quickly. It is not difficult to do. We have the floor space to do it, and we can add another line if and when we need to.

Sameer Joshi: Understood. Lastly, on operating expenses through the year, should we expect marginal increases, or do you have enough manpower and resources so that we will not see any meaningful increase in OpEx?

Bill Roeschlein: I think we are trending in the $12.5 million to $13.0 million range for the rest of the year. With a wider lens, $12.5 million to $13.5 million, midpoint around $13.0 million. We should be able to grow this year without having to add a lot of OpEx, demonstrating the leverageability in our operating model. We have been at this level around $13 million for several quarters, so I think that is the right ballpark for the rest of the year.

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

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

Zvi Alon: Thanks again, everyone, for joining us today. I especially want to thank all the 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?

Operator: Thank you for joining us today for Tigo Energy, Inc.’s first quarter 2026 earnings conference call. You may now disconnect.

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