U.S.-based solar tracker systems provider FTC Solar posted revenue of $10.14 million in the third quarter (Q3) of 2024, exceeding analyst expectations by $240,680. However, it represented a 66.8% year-over-year (YoY) decrease compared to the same quarter in 2023. This decline was primarily due to lower product volumes.

The drop in product (solar trackers) revenue YoY in Q3 was primarily due to a decrease of 82% in the amount of MW produced, adversely impacted by customer project delays. This was partially offset by an increase in the average selling price (ASP)during the quarter, which resulted in better pricing and project mix changes compared to Q3 2023.

The company also provides engineering and software solutions for project design. The revenue from these services dropped 39.8% YoY as ASP fell 29% YoY and lower engineering consulting revenues. This was partially offset by an increase of 18% in the amount of MW delivered as a result of the timing of project deliveries.

The company reported earnings per share (EPS) of -$0.10, missing the analyst consensus by $0.01. Despite the revenue shortfall, FTC Solar’s net loss for Q3 was $15.4 million, slightly improving over the $16.9 million loss from Q3 2023.

Adjusted EBITDA loss stood at $12.2 million, widening from $9.7 million in the same period last year.

FTC is working at high direct margins by significantly reducing steel content (>20%) and manufacturing costs.

FTC Solar secured a $15 million, five-year promissory note from an institutional investor to bolster its balance sheet. The note bears an interest rate of 11% if paid in cash or 13% if paid in kind. Additionally, the agreement includes warrants to purchase 17.5 million shares of FTC Solar stock at an exercise price of $0.01 per share, with a ten-year maturity period. The investor gains the right to nominate a board member as part of the deal.

The company also received a $4.7 million earn-out payment for its previous stake in Dimension Energy, a community solar developer. Since selling its investment, FTC Solar has collected over $9 million from this venture. It remains eligible for up to $5 million in earn-out payments by the end of 2024.

Q4 2024 and 2025 Outlook

Looking ahead, FTC Solar expects Q4 revenue to remain stable or increase by as much as 39%, projecting revenue between $10 million and $14 million. The company anticipates a non-GAAP gross profit loss between $4.2 million and $1.5 million and non-GAAP operating expenses ranging from $8.2 million to $9 million. Adjusted EBITDA loss is projected between $13.7 million and $9.9 million.

CEO Yann Brandt cited robust U.S. growth—particularly in the Northeast and Southeast markets where new high-wind-resistant products are gaining traction. “Solar remains resilient, with bipartisan political support and ongoing momentum in the renewable energy space,” Brandt said, referencing the industry’s near 100% growth from 2017 to 2020. “Whether through tariffs, ITC extensions, or tax credits, we’ve seen solar continue to thrive, regardless of political shifts.”

As FTC Solar moves into 2025, the company holds a strong backlog of purchase orders, with approximately 60% of signed contracts expected to begin generating revenue next year. Brandt emphasized the potential for further expansion of this backlog, fueled by longstanding commercial relationships and new customer additions.

FTC Solar’s net loss for the second quarter was $12.2 million, up 17.3% from a net loss of $10.4 million in Q2 2023.