Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported August 5, 2026 · Beat 2 of last 7 quarters
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FTC Solar's continued AVL expansion and new 1P wins with top-tier EPCs and developers signal that the tracker diversification trend is gaining traction, which could reshape competitive dynamics in the utility-scale solar supply chain. The company's push into international markets (Australia, India) and its focus on robotics-compatible trackers align with broader efforts to reduce installed costs and accelerate solar construction, supporting the AI infrastructure buildout's demand for faster, cheaper renewable energy deployment.
FTC Solar reported Q2 revenue of $26.2M, up 51.5% sequentially and 30.8% YoY, with non-GAAP gross loss of $1.3M and adjusted EBITDA loss of $9.8M. The company received a new 400MW 1P purchase order from a top 5 EPC for a top 5 developer, its first 1P order from a long-time 2P customer (~100MW East Coast project), and entered the India market with multiple initial wins. Management also highlighted a new 90MW win in Australia and notice to proceed on a 330+MW Australian project. The company ended Q2 with $11.2M cash, below covenant minimums, but obtained lender waivers and established a $20M ELOC post-quarter.
Management reaffirmed full-year 2026 revenue growth of at least 40% versus 2025, with Q3 revenue guided between $30M and $35M (up ~24% at midpoint sequentially) and an even stronger Q4 implied. They noted roughly 80% of second-half revenue needs are already covered by booked projects, with additional project decisions expected to potentially push coverage above 100%. Non-GAAP gross margin is expected to improve as volumes scale, with Q3 guided between negative 3% and positive 5.1% of revenue; management expects efficiency gains from AI and process improvements to begin flowing through in Q4. They also highlighted continued expansion of AVL approvals (now 9 of top 10 EPCs, plus 5 more EPCs and 6 more developers added since last call), international growth in Australia and India, and a new $20M equity line of credit established post-quarter to support liquidity. The tone was confident but acknowledged covenant compliance and liquidity as near-term challenges.
“The CEO of a leading developer regularly tells me that our tracker technology is best in class and that we should be a much larger company by now.”
on Customer feedback
“We have also increased our use of software and AI to automate routine workflows and are already seeing improving productivity and new savings opportunities.”
on Cost efficiency
“Our lenders have provided waivers for these second quarter covenants, so the debt is not callable.”
on Liquidity and covenants
On the covenants on the debt, I believe for Q3 you needed $50 million of revenue, and obviously the guidance is below that. Do you have a waiver on that provision as well?
Cathy Behnen confirmed the waiver obtained was specifically for Q2, and the company will continue to work with lenders, who have been supportive, expecting continued cooperation going forward.
How should we think about the typical lag of the purchase orders you highlighted relative to the timing of revenue recognition?
Anthony Carroll explained that the tracker industry lead time is around or under 20 weeks, so having more than 80% of second-half revenue covered by booked projects is a positive indicator for execution.
Can you give us a sense of how gross margins might trend in Q4, Q1, and beyond?
Cathy Behnen said it's a volume game—as top-line grows, margins will expand. Anthony Carroll added that Tier 1 customers bring better margin visibility, supply chain MSAs with steel suppliers improve costs, and internal efficiency strategies will support margin improvement, with some benefits expected in Q4.