TIGO ENERGY, INC.
For the period ended Mar 31, 2026. Filed May 5, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 5, 2026
TYGO$0.74+1.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-04.
0001193125-25-264656
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-05.
0001855447-26-000003
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 70 previous paragraphs and 58 current paragraphs.
21 unchanged; 21 reworded; 16 added; 27 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 10 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (16)
Current report
Registered Direct Offering. On February 24, 2026, we completed a registered direct offering (“Registered Direct Offering”) of 5,000,000 shares of our common stock to certain institutional investors for gross proceeds of $15.0 million. After deducting the placement agent fee and other offering expenses, net proceeds were approximately $14.0 million. For more information, see Note 9, “Common and Preferred Stock” of the notes to condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.
Current report
Revolving Credit Facility. On March 31, 2026, we entered into a revolving credit facility (“Credit Facility”) with Wells Fargo Bank, National Association that provides for up to $10.0 million of borrowing capacity, subject to a borrowing base based on eligible accounts receivable and eligible inventory. The Credit Facility matures on March 31, 2029. As of March 31, 2026, there were no amounts outstanding under the facility, and the Company was in compliance with all applicable covenants. For more information, see Note 7, “Debt” of the notes to condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.
Current report
Patent Sale. As disclosed in the Company’s 2025 Annual Report, on December 16, 2025, we entered into a patent purchase agreement involving the sale of certain patent rights. Under the terms of the patent purchase agreement, total consideration is expected to be between $15.0 million and $18.0 million. We received $15.0 million at the initial closing, and an additional holdback amount of up to $3.0 million is contingent on the satisfaction of specified conditions. As of March 31, 2026, these conditions had not been met. Additionally, seller-retained royalties under the purchase patent agreement, which entitles us to receive up to $5.0 million of future license proceeds, represent contingent income and will be recognized in other (income) expenses, net when and if earned. For more information, see Note 14, “Patent Sale” of the notes to condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.
Current report
In addition, the OBBB amended the domestic content bonus credit requirements for Section 48E projects. Projects that commence construction after June 16, 2025, must satisfy a 45% domestic cost threshold, increased from 40%. The OBBB further introduced new compliance requirements under the Foreign Entity of Concern (“FEOC”) provisions applicable to both Section 48E and the Advanced Manufacturing Production Tax Credit (“AMPTC”) under Section 45X of the Code. These provisions require an increasing level of non-FEOC content for solar and storage projects beginning construction in 2026 and for manufactured components produced beginning in 2026.
Current report
Section 45X Manufacturing Tax Credit Arrangement. On December 18, 2025, we entered into an Amended and Restated Manufacturing and Supply Agreement with EG4 Electronics LLC (“EG4”). The amended agreement clarifies that EG4, rather than the Company, is expected to be the claimant of any available AMPTC under Section 45X of the Code associated with qualifying optimized inverter products manufactured using certain Tigo components. Under the amended agreement, if EG4 qualifies for, receives and monetizes such AMPTC, we may be entitled to receive an agreed-upon amount, net of applicable tax credit selling expenses, subject to the terms and conditions of the amended agreement.
Current report
During the three months ended March 31, 2026, production activities commenced through a U.S. based contract manufacturer for certain components that are expected to be used in products supplied under the EG4 arrangement. No component shipments were made to EG4 during the three months ended March 31, 2026, and we did not recognize any benefit related to the AMPTC under Section 45X of the Code during the period. There can be no assurance that EG4 will qualify for, receive, monetize or retain any AMPTC, that any products manufactured using our components will satisfy applicable requirements, or that we will receive any amounts under the amended agreement, including as to the timing or amount of any such payments. Changes in the law, additional guidance, FEOC-related restrictions, sourcing requirements, documentation requirements, or interpretations of Section 45X of the Code could affect the expected economics of our agreement with EG4, our sourcing strategy, and our customers’ eligibility for tax credits, which may affect their purchasing decisions and demand for our products.
Current report
Gross profit increased by $3.6 million or 50.5% for the three months ended March 31, 2026, as compared to the same period in 2025. Gross margin increased by 4.7 percentage points for the three months ended March 31, 2026, as compared to the same period in 2025. The increase was primarily driven by higher-margin sales of GO ESS inventory that had been previously reserved in the second half of 2024, as well as a decrease in warranty expense for the three months ended March 31, 2026 compared to the same period in 2025, as noted above.
Current report
Research and development expense increased by $0.5 million or 22.2% for the three months ended March 31, 2026, as compared to the same period in 2025. The increase was primarily attributable to higher payroll-related expenses and bonus expense, driven by increased headcount and the timing of bonus accruals during the three months ended March 31, 2026, compared to the same period in 2025.
Current report
Sales and marketing expense increased by $0.6 million or 14.4% for the three months ended March 31, 2026, as compared to the same period in 2025. The increase was primarily attributable to higher payroll-related expenses and bonus expense, driven by increased headcount and the timing of bonus accruals during the three months ended March 31, 2026, compared to the same period in 2025.
Current report
General and administrative expense increased by $1.0 million or 19.9% for the three months ended March 31, 2026, as compared to the same period in 2025. The increase was primarily attributable to higher bad debt expense related to a customer bankruptcy, increased payroll and related expenses, and higher office and facilities insurance expense. The increase in payroll and related expenses was driven by higher employee-related costs across multiple payroll expense categories compared for the three months ended March 31, 2026, compared to the same period in 2025. These increases were partially offset by lower professional services expense primarily due to decreased legal expense in the three months ended March 31, 2026 compared to the same period in 2025.
Current report
Interest expense decreased by $2.9 million for the three months ended March 31, 2026, as compared to the same period in 2025, primarily due to the extinguishment of the Convertible Promissory Note in December 2025, resulting in no related interest expense during the three months ended March 31, 2026.
Current report
Other income, net increased by $0.4 million for the three months ended March 31, 2026, as compared to the same periods in 2025, primarily due to royalty income being recognized in other income, net for the three months ended March 31, 2026, following the sale of certain patent rights in December 2025. Royalty income was recognized in revenue during the three months ended March 31, 2025. For more information, see Note 14, “Patent Sale” of the notes to condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.
Current report
Liquidity and Capital Resources
Current report
Revolving Credit Facility. In March 2026, we entered into the Credit Facility with Wells Fargo that provides for borrowings of up to $10.0 million. As of March 31, 2026, there were no borrowings outstanding under the facility. For more information, see Note 7, “Debt” of the notes to condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.
Current report
Convertible Note. On December 17, 2025, we extinguished our Convertible Promissory Notes by paying $51.3 million in cash, which included principal, accrued interest and fees associated with the extinguishment. As of March 31, 2026 we had no outstanding debt obligations. For more information, see Note 7, “Debt” of the notes to condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.
Current report
Operating Leases. We have entered into various non-cancelable operating leases primarily for our facilities with original lease periods expiring through the year 2029, with our most significant leases relating to our facilities in Los Gatos, California and Ra’anana, Israel. As of March 31, 2026 we had total lease obligations of $2.5 million recorded on our condensed consolidated balance sheet. For more information, see Note 11, “Leases” of the notes to condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.
Removed paragraphs (27)
Previous report
The legislation also raises the domestic content threshold for bonus ITC eligibility under Section 48E of the Code to match the thresholds under Section 45Y of the Code, increasing the required domestic cost share to 45% for projects beginning construction on or after June 16, 2025 and before January 1, 2026. The percentage increases to 50% for projects beginning construction during calendar year 2026 and 55% for projects beginning construction after December 31, 2026. In parallel, the OBBB introduces new compliance requirements under the Foreign Entity of Concern (“FEOC”) provisions applicable to both Section 48E of the Code and the Advanced Manufacturing Production Tax Credit (“AMPTC”) under Section 45X of the Code. These provisions establish escalating content sourcing restrictions and other restrictions, generally applicable to taxable years beginning after the date of enactment of the OBBB, for qualifying solar and storage projects and for manufactured components.
Previous report
Demand for Products. Demand for our products has continued to increase since the beginning of 2024 following an industry-wide downturn that began in the second half of 2023. Since the beginning of 2024, we have seen a general recovery across the major markets we serve, particularly in Europe and the United States. We believe this improvement is driven by a combination of strengthening market conditions and our ability to increase our share in the markets we serve.
Previous report
Net revenue increased by $16.4 million or 115.0% for the three months ended September 30, 2025, as compared to the same period in 2024, which is driven primarily by an increase of $14.0 million or 108.9% in net revenue from our MLPE product line, which is primarily attributable to the continued market recovery that began in the first quarter of 2024 and an increased market acceptance of the product line. Additionally, our GO ESS product line increased by $2.4 million or 350.0% in net revenue for the three months ended September 30, 2025, compared to the same period in 2024, which is primarily attributable to increased promotional activities.
Previous report
EMEA - Net revenue for the EMEA region increased by $30.0 million or 139.8% for the nine months ended September 30, 2025, as compared to the same period in 2024, which is driven primarily by an increase of $26.5 million and $3.1 million in net revenue from our MLPE and GO ESS product lines, respectively. The growth was primarily driven by higher demand of our MLPE products in the Germany, Czech Republic, United Kingdom, Italy and Poland, in addition to the sale of $3.1 million of our GO ESS product lines to a customer in Italy.
Previous report
Americas - Net revenue for the Americas region increased by $8.8 million or 102.9% for the nine months ended September 30, 2025, as compared to the same period in 2024, which is driven primarily by increases of $6.1 million, $1.7 million, and $0.6 million in net revenue from our MLPE product line, GO ESS product lines and royalty revenue, respectively. This growth was primarily attributable to increased demand in the United States, driven by higher sales of our MLPE product line, increased promotional activities for our GO ESS product line, and increased royalty revenue resulting from a new royalty agreement entered into during the nine months ended September 30, 2025.
Previous report
Cost of revenues increased by $5.1 million or 40.8% and gross profit increased by $11.3 million or 636.2% for the three months ended September 30, 2025, as compared to the same period in 2024, which is primarily driven by an 115.0% increase in net revenue for the three months ended September 30, 2025, compared to the same period in 2024. In addition to higher net revenue, the increase was driven by an increase of $0.6 million in customs fees primarily associated with the tariffs that were enacted in 2025. The increase was partially offset by higher sales volumes that included GO ESS inventory previously impaired in the second half of 2024.
Previous report
Gross margin increased by 30.2 percentage points for the three months ended September 30, 2025, as compared to the same period in 2024. The increase was primarily driven by lower excess and obsolete inventory expense and higher-margin sales of previously reserved GO ESS inventory, resulting from reserves established in the second half of 2024.
Previous report
Gross margin increased by 19.3 percentage points for the nine months ended September 30, 2025, as compared to the same period in 2024. The increase was primarily driven by lower excess and obsolete inventory expense and higher-margin sales of previously reserved GO ESS inventory, resulting from reserves established in the second half of 2024.
Previous report
Research and development expense increased by a de minimis amount for the three months ended September 30, 2025, as compared to the same period in 2024.
Previous report
Research and development expense decreased by $0.7 million or 8.9% for the nine months ended September 30, 2025, as compared to the same period in 2024. The decrease is attributed to reduced payroll expense resulting from lower headcount during the nine months ended September 30, 2025, compared to the same period in 2024, primarily due to the previously disclosed workforce reductions of 10% in April 2024 that were implemented in response to the industry-wide slowdown in 2023.
Previous report
The amount of research and development expenses may fluctuate from period to period due to differing levels and stages of development activity.
Previous report
Sales and marketing expense increased by a de minimis amount for the three months ended September 30, 2025, as compared to the same period in 2024.
Previous report
Sales and marketing expense decreased by a de minimis amount for the nine months ended September 30, 2025, as compared to the same period in 2024.
Previous report
Three months and nine months ended September 30, 2025, and 2024
Previous report
General and administrative expense increased by a de minimis amount for the three and nine months ended September 30, 2025, as compared to the same periods in 2024.
Previous report
Three months and nine months ended September 30, 2025, and 2024
Previous report
The change in fair value of contingent shares liability for the three and nine months ended September 30, 2024, was attributable to the revaluation of the contingent shares at each reporting period based on the Company’s share price as of the revaluation date. The final release of the contingent shares occurred on July 25, 2024.
Previous report
Interest expense increased by a de minimis amount for the three and nine months ended September 30, 2025, as compared to the same periods in 2024.
Previous report
Other income, net decreased by a de minimis amount for the three and nine months ended September 30, 2025, as compared to the same periods in 2024.
Previous report
Income tax expense increased by a de minimis amount for the three and nine months ended September 30, 2025, as compared to the same periods in 2024. For more information, see Note 13, “Income Taxes” of the notes to condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.
Previous report
Liquidity, Going Concern and Capital Resources
Previous report
In accordance with ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern(“Subtopic 205-40”), we evaluated whether there are conditions and events, considered in the aggregate, that raise substantial doubt about our ability to continue as a going concern within one year after the date that the consolidated financial statements are issued. The Convertible Promissory Note, which has an aggregate principal amount outstanding of $50.0 million as of September 30, 2025, has a maturity date of January 9, 2026. See Note 7, “Debt,” of the notes to condensed consolidated financial statements for additional information regarding the Convertible Promissory Note. Management determined as a result of this evaluation, our current cash, working capital position, and upcoming maturity date of its Convertible Promissory Note, raises substantial doubt about our ability to continue as a going concern within one year after the date that the consolidated financial statements are issued.
Previous report
The Company is exploring options for the refinancing of, or other transactions to facilitate the payment of, the Convertible Promissory Note. Our ability to raise capital may be constrained by the price of and demand for our common stock. Additional capital may not be available on favorable terms or at all, and could further dilute our current stockholders. Management cannot conclude as of the date of this filing that its plans are probable of being successfully implemented. There can be no assurance that we will be able to raise sufficient additional capital or obtain financing that will provide it with sufficient liquidity to satisfy its Convertible Promissory Note obligation in January 2026.
Previous report
The condensed consolidated financial statements have been prepared on a basis that assumes we will continue as a going concern which contemplates the realization of assets and satisfaction of liabilities and commitments in the ordinary course of business. Accordingly, the accompanying condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Previous report
At-the-market offering. In November 2024, we entered into the ATM Agreement with the Sales Agent, pursuant to which we may offer and sell shares of our common stock having an aggregate gross sales price of up to $14.2 million, from time to time, through the Sales Agent in transactions deemed to be “at-the-market” offerings under federal securities laws (the “2024 ATM Program”). The offering of Shares pursuant to the ATM Agreement will terminate upon (a) five business days’ advance notice from us to the Sales Agent or five business days’ advance notice from the Sales Agent to us or (b) otherwise by mutual agreement of the parties pursuant to the terms of the ATM Agreement. Sales under the 2024 ATM Program are subject to a maximum commission of up to 3.0% of the gross proceeds per share sold through the Sales Agent.
Previous report
During the nine months ended September 30, 2025, a total of 7,472,428 shares of common stock were issued pursuant to the Sales Agreement for aggregate gross proceeds of approximately $12.0 million, before deducting commissions and offering expenses payable by us. As of September 30, 2025, $2.2 million remained available under the ATM Agreement. Refer to Note 9, “Common Stock”, in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional information.
Previous report
Convertible Note. As of September 30, 2025, our Convertible Note obligation was $50.0 million. Upon reaching the maturity date of the Convertible Note, January 9, 2026, we would need to pay cash or issue shares of common stock equal to the aggregate principal amount of the Convertible Note to be converted. As noted above, there is substantial doubt about our ability to continue as a going concern within one year after the date that the consolidated financial statements are issued due to the upcoming maturity date of the Convertible Note. Management continues to explore options to address the substantial doubt, however there can be no assurance that we will be able to raise sufficient additional capital or obtain financing that will provide it with sufficient liquidity to satisfy the Convertible Promissory Note obligation. Refer to the section above for more information regarding our going concern analysis and management’s plan to address the substantial doubt. Refer to Note 7, in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional information.
Reworded paragraphs (21)
Previous wording
Trade Tariffs. It is uncertain what impact new or existing tariffs, trade restrictions, or retaliatory actions may have on us, the solar industry, and our customers. U.S. net revenue represented 20.9% of our total net revenue for the nine months ended September 30, 2025. Substantially all of our MLPE products, which represented 66.3% of U.S. net revenues during the nine months ended September 30, 2025, were manufactured in Thailand and future purchases may be subject to a 19% reciprocal import tariff as of the date of this report. In addition, substantially all of our GO Energy Storage Systems (“GO ESS”) products, which represented 23.0% of U.S. net revenues during the nine months ended September 30, 2025. Beginning in October 2025, we transitioned production of our GO ESS product line for the U.S. market from China to Vietnam. Imports from Vietnam are currently subject to a 20% reciprocal tariff rate as of the date of this report.
Current wording
Trade Tariffs. It is uncertain what impact new or existing tariffs, trade restrictions, or retaliatory actions, may have on us, our business, the solar industry, and our customers. U.S. net revenue represented 19.8% and 23.3% of our total net revenue for the three months ended March 31, 2026, and year ended December 31, 2025, respectively. Substantially all of our MLPE products, which represented 66.7% and 68.9% of U.S. net revenues during the three months ended March 31, 2026, and year ended December 31, 2025, respectively, were manufactured in Thailand. Our GO Energy Storage Systems (“GO ESS”) products represented 32.2% and 23.1% of U.S. net revenues during the three months ended March 31, 2026, and year ended December 31, 2025, respectively. Beginning in October 2025, we transitioned production of our GO ESS product line for the U.S. market from China to Vietnam. As of March 31, 2026, we were subject to tariffs on all products imported into the United States from the countries in which we manufacture our products. During the three months ended March 31, 2026 and 2025, we incurred $0.7 million and $0.1 million of tariff-related costs, respectively.
Previous wording
Managing Supply Chain. We rely on contract manufacturers and suppliers to produce our components, with a significant portion of our supply chain originating in Thailand and China. As noted above, we transitioned production of our GO ESS product line for the U.S. market from China to Vietnam in October 2025. Our ability to grow depends, in part, on the ability of our contract manufacturers and suppliers to provide high quality services and deliver components and finished products on time and at reasonable costs. While we have diversified our supply chain, some of our suppliers and contract manufacturers are sole-source suppliers. Our concentration of suppliers could lead to supply shortages, long lead times for components and supply changes. In the event we are unable to mitigate the impact of delays and/or price increases in raw materials, electronic components and freight, as a result of new or existing tariffs, trade restrictions, retaliatory actions, or otherwise, it could delay the manufacturing and delivery of our products, which would adversely impact our cash flows and results of operations, including revenue and gross margin. In addition, in a slowing economic environment in the U.S. and worldwide, our inventory levels may continue to increase due to existing purchase commitments and our ability to negotiate volume pricing discounts may be impaired.
Current wording
Managing Supply Chain. We rely on contract manufacturers and suppliers to produce our components, with a significant portion of our supply chain originating in Thailand, Vietnam and China. As noted above, we transitioned production of our GO ESS product line for the U.S. market from China to Vietnam in October 2025. Our ability to grow depends, in part, on the ability of our contract manufacturers and suppliers to provide high quality services and deliver components and finished products on time and at reasonable costs. While we have diversified our supply chain, some of our suppliers and contract manufacturers are sole-source suppliers. Our concentration of suppliers could lead to supply shortages, long lead times for components and supply changes. In the event we are unable to mitigate the impact of delays and/or price increases in raw materials, electronic components and freight, as a result of new or existing tariffs, trade restrictions, retaliatory actions, or otherwise, it could delay the manufacturing and delivery of our products, which would adversely impact our cash flows and results of operations, including revenue and gross margin. In addition, in a slowing economic environment in the U.S. and worldwide, our inventory levels may continue to increase due to existing purchase commitments and our ability to negotiate volume pricing discounts may be impaired.
Previous wording
One Big Beautiful Bill Act of 2025. In July 2025, the One Big Beautiful Bill Act of 2025 (“OBBB”) was signed into law, introducing significant changes to clean energy tax credit programs that may impact our financial condition, results of operations and future prospects. The law phases out the Investment Tax Credit (“ITC”) under Section 25D of the Internal Revenue Code of 1986, as amended (the “Code”), for residential solar and storage systems purchased through cash or loans, with the credit now set to expire on December 31, 2025.
Current wording
One Big Beautiful Bill Act of 2025. In July 2025, the One Big Beautiful Bill Act of 2025 (the “OBBB”) was enacted and implemented material changes to certain federal clean energy tax credit programs that are important to our business and could affect our financial condition, results of operations, and future prospects. Among other changes, the OBBB reduced the Investment Tax Credit (the “ITC”) under Section 25D of the Internal Revenue Code of 1986, as amended (the “Code”), for residential solar and storage systems purchased through cash or loans. Under the OBBB, the Section 25D credit expired on December 31, 2025.
Previous wording
Additionally, the OBBB imposes new timing requirements for ITCs under Section 48E of the Code, which governs ITCs for solar and storage systems. Solar-only projects that do not commence construction within 12 months of the OBBB’s enactment must now be placed in service by December 31, 2027, to retain eligibility. While energy storage systems are exempt from this specific deadline, the ITC under Section 48E of the Code generally begins to phase down in 2034. The ITCs decline to 75% for projects beginning construction in 2034, 50% for projects beginning construction in 2035, and phases out entirely for projects beginning construction in or after 2036.
Current wording
The OBBB also established new timing requirements for eligibility under Section 48E of the Code, which governs ITCs for leased solar and storage systems. In particular, solar-only projects that do not commence construction within 12 months of the OBBB’s enactment must be placed in service by December 31, 2027, to remain eligible for the credit. Energy storage projects are not subject to this placed-in-service deadline; however, the ITC for storage systems is scheduled to begin phasing down in 2034, decreasing to 75% in 2034 and 50% in 2035, and phasing out entirely by 2036.
Previous wording
On July 7, 2025, the President issued an Executive Order directing the Treasury Department to provide updated guidance within 45 days regarding the “beginning of construction” rules for Section 48E of the Code and to implement the FEOC restrictions.
Current wording
On July 7, 2025, the President issued an Executive Order directing the Secretary of the Treasury to issue updated guidance within 45 days regarding the “beginning of construction” requirements applicable to Section 48E projects. In August 2025, the U.S. Department of the Treasury and the IRS issued revised “beginning of construction” guidance for clean energy tax credits that applies only to projects above 1MW. The Executive Order also directs the Secretary to implement the FEOC restrictions set forth in the OBBB. Under the new FEOC rules, a U.S. energy project can only receive specific tax credits if the project’s equipment from certain FEOC-related entities does not exceed set amounts, and the rules disqualify other credits from applying to US-made products that contain too many inputs from certain FEOC-related entities. The rules also prevent a company from receiving specific tax credits if it relies too much on investment or material assistance from certain FEOC-related entities, including in circumstances where a contract, license, or other arrangement gives an FEOC-related entity effective control over the company or its projects or products. Additional FEOC guidance remains forthcoming and is expected to be finalized in 2026, which could further tighten existing requirements.
Previous wording
These legislative and regulatory developments may negatively impact our eligibility for certain tax credits, the competitiveness of our offerings to solar and storage system lease providers, and the overall demand for our products. If we are unable to meet the revised domestic content or FEOC requirements, our ability to qualify for these incentives could be impaired, which may adversely affect our business and results of operations.
Current wording
These legislative and regulatory developments have affected, and could in the future adversely affect, our eligibility for certain tax credits, the attractiveness of our offerings to solar and storage system lease providers, and overall demand for our products. If we are unable to satisfy the revised domestic content or FEOC requirements, our ability to qualify for these incentives could be impaired, which could adversely affect our revenue, gross margins, business operations, and competitive position.
Previous wording
Macroeconomic and Market Conditions. The global macroeconomic and market uncertainty has adversely impacted the U.S. and global economies and may continue to do so. As our global footprint expands, we are increasingly exposed to the effects of this evolving environment, including heightened inflationary pressures, interest rate volatility, tariffs, foreign currency fluctuations, potential economic slowdowns or recessions, geopolitical tensions, and regulatory changes stemming from current and future trade policies. A tighter credit market for consumer and business spending could, in turn, adversely affect the spending levels of installers and end users and lead to increased price competition for our products. Reductions in customer spending in response to unfavorable or uncertain macroeconomic and market conditions, globally or in a particular region where we operate, have adversely affected, and could continue to adversely affect, our business, results of operations and financial condition.
Current wording
Macroeconomic and Market Conditions. The global macroeconomic and market uncertainty has adversely impacted the U.S. and global economies and may continue to do so. As our global footprint expands, we are increasingly exposed to the effects of this evolving environment, including inflation and input-cost pressures, interest rate levels and volatility, tariffs and changes in trade policy, foreign currency fluctuations, potential economic slowdowns or recessions, geopolitical tensions, and regulatory changes stemming from current and future trade policies. A tighter credit market for consumer and business spending could, in turn, adversely affect the spending levels of installers and end users and lead to increased price competition for our products. In addition, a tighter credit environment could adversely affect installer and end-customer demand, increase price sensitivity, and lead to greater price competition for our products. Reductions in customer spending in response to unfavorable or uncertain macroeconomic and market conditions, globally or in a particular region where we operate, have adversely affected, and could continue to adversely affect, our business, results of operations and financial condition.
Previous wording
Additionally, we have made substantial investments in research and development to support new product introductions. Although a significant portion of our revenue is derived from our MLPE products, we are continuing to develop and promote additional offerings such as our GO ESS product line and Predict+ service, which we believe will help contribute to long-term revenue growth and market leadership.
Current wording
Additionally, we have made, and plan to continue to make, substantial investments in research and development initiatives to support new product introductions. Although a significant portion of our revenue is derived from our MLPE products, we are continuing to develop and promote additional offerings such as our GO ESS product line and Predict+ service, which we believe will help contribute to long-term revenue growth and market leadership. We believe that our entry into new markets will facilitate revenue growth and customer diversification.
Previous wording
Net revenue increased by $36.8 million or 100.1% for the nine months ended September 30, 2025, as compared to the same period in 2024, which is driven primarily by an increase of $30.7 million or 94.0% in net revenue from our MLPE product line, which is primarily attributable to the continued market recovery that began in the first quarter of 2024 and an increased market acceptance of the product line. Additionally, our GO ESS product line increased by $4.8 million or 187.4% in net revenue for the nine months ended September 30, 2025, compared to the same period in 2024, which is primarily attributable to increased promotional activities.
Current wording
Net revenue increased by $6.4 million or 33.7% for the three months ended March 31, 2026, as compared to the same period in 2025, which is driven primarily by an increase of $4.8 million or 30.0% in net revenue from our MLPE product line, which is attributable to an increased market acceptance of the products. Additionally, net revenue from our GO ESS products increased by $2.0 million or 96.4% for the three months ended March 31, 2026, compared to the same period in 2025, which is primarily attributable to the sale of $2.2 million of our GO ESS products to a customer in Italy and increased solar repowering activities in the United States.
Previous wording
EMEA - Net revenue for the EMEA region increased by $12.9 million or 149.7% for the three months ended September 30, 2025, as compared to the same period in 2024, which is driven primarily by an increase of $11.8 million and $1.1 million in net revenue from our MLPE and GO ESS product lines, respectively. The growth was primarily driven by higher demand of our MLPE products in Germany, the Czech Republic, the United Kingdom, Italy and Poland, in addition to the sale of $1.0 million of our GO ESS product lines to a customer in Italy.
Current wording
EMEA - Net revenue for the EMEA region increased by $6.0 million or 51.7% for the three months ended March 31, 2026, as compared to the same period in 2025, which is driven primarily by an increase of $4.7 million and $1.2. million in net revenue from our MLPE and GO ESS products, respectively. The growth was primarily driven by higher demand of our MLPE products in the Czech Republic, Italy, Spain and Poland, in addition to the sale of $2.2 million of our GO ESS products to a customer in Italy.
Previous wording
Americas - Net revenue for the Americas region increased by $5.0 million or 170.8% for the three months ended September 30, 2025, as compared to the same period in 2024, which is driven primarily by increases of $3.7 million and $1.4 million in net revenue from our MLPE product line and GO ESS product lines, respectively. This growth was primarily attributable to increased demand in the United States, driven by higher sales of our MLPE product line and increased promotional activities for our GO ESS product line.
Current wording
Americas - Net revenue for the Americas region increased by $0.6 million or 11.8% for the three months ended March 31, 2026, as compared to the same period in 2025, which is driven primarily by increases of $0.7 million and $0.3 million of net revenue from our GO ESS and MLPE products, respectively. This growth was primarily attributable to increased demand in the United States, driven by increased solar repowering activities for our GO ESS products, and increased market acceptance of our MLPE products. The increase was partially offset by a $0.4 million decrease in royalty revenue for the three months ended March 31, 2026 compared to the same period in 2025. As noted above, following the patent sale in December 2025, seller-retained royalties are no longer recognized in net revenue, and are now recognized in other (income) expense, net when and if earned. For more information, see Note 14, “Patent Sale” of the notes to condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.
Previous wording
APAC - Net revenue for the APAC region decreased by $1.6 million or 59.3% for the three months ended September 30, 2025, as compared to the same period in 2024, which is driven primarily by a decrease of $1.6 million in net revenue from our MLPE product line. This decrease was primarily driven by lower demand of our MLPE products in Australia, the Philippines and Thailand.
Current wording
APAC - Net revenue for the APAC region decreased by $0.2 million or 6.5% for the three months ended March 31, 2026, as compared to the same period in 2025, which is driven primarily by a decrease of $0.2 million in net revenue from our MLPE products. This decrease was primarily driven by lower demand of our MLPE products in the Philippines, China and Thailand. The decrease was partially offset by an increase in demand of our MLPE products in Australia.
Previous wording
Cost of revenues increased by $14.2 million or 50.0% and gross profit increased by $22.6 million or 268.7% for the nine months ended September 30, 2025, as compared to the same period in 2024, which is primarily driven by a 100.1% increase in net revenue for the nine months ended September 30, 2025, compared to the same period in 2024. In addition to higher net revenue, the increase was driven by higher product warranty expense, primarily due to an increased number of units sold during the period, as well as a change in estimated service delivery costs, which increased due to current macroeconomic conditions. Costs of revenues was also driven by an increase of $0.9 million in customs fees primarily associated with the tariffs that were enacted in 2025. The increase was partially offset by higher sales volumes that included GO ESS inventory previously impaired in the second half of 2024.
Current wording
Cost of revenues increased by $2.7 million or 23.5% for the three months ended March 31, 2026, as compared to the same period in 2025, which is primarily driven by a 33.7% increase in net revenue for the three months ended March 31, 2026, compared to the same period in 2025. In addition to higher net revenue, the increase was primarily driven by a $0.5 million increase in inventory scrap expense, mainly related to obsolete raw materials, and a $0.7 million increase in expense associated with tariffs enacted in 2025. The increase was partially offset by higher sales volumes of GO ESS inventory that had been previously impaired in the second half of 2024, as well as a $1.3 million decrease in warranty expense for the three months ended March 31, 2026 compared to the same period in 2025. The decrease in warranty expense was primarily due to changes in estimated shipping costs during the three months ended March 31, 2025.
Previous wording
Income tax expense increased $0.7 million for the nine months ended September 30, 2025, as compared to the same period in 2024, primarily related to a settlement of a foreign tax examination. For more information, see Note 13, “Income Taxes” of the notes to condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.
Current wording
Income tax benefit of $0.2 million incurred during the three months ended March 31, 2026 was primarily due to primarily related to realized foreign currency translation losses recognized by a foreign subsidiary. Income tax expense of $0.3 million incurred during the three months ended March 31, 2025, was primarily due to the estimated settlement of a foreign tax examination. For more information, see Note 13, “Income Taxes” of the notes to condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.
Previous wording
As of September 30, 2025, our principal sources of liquidity were cash and cash equivalents and marketable securities of $40.3 million and working capital, which we define as current assets less current liabilities, of $2.9 million. Our principal uses of cash are for funding our operations, capital expenditures, other working capital requirements, other investments and the repayment of our Convertible Promissory Note (as defined below) due in January 2026.
Current wording
As of March 31, 2026, our principal sources of liquidity were cash and cash equivalents of $11.6 million and total working capital, which we define as current assets less current liabilities, of $32.7 million, and availability under our revolving credit facility. Our principal uses of cash are for funding our operations, capital expenditures, other working capital requirements and other investments. On February 26, 2026, we closed the Registered Direct Offering resulting in gross proceeds of $15.0 million, and net proceeds of approximately $14.0 million, after deducting placement agent fees and offering expenses. We believe that our cash provided by operations, as well as the gross proceeds received from the Registered Direct Offering and our borrowing capacity under the Credit Facility, will provide adequate liquidity for ongoing operations, planned capital expenditures and other investments for at least the next 12 months from the issuance date of this Quarterly Report on Form 10-Q.
Previous wording
Cash Flows Provided By (Used in) Operating Activities
Current wording
Cash Flows Used in Operating Activities
Previous wording
Cash flows from operating activities consisted of net loss adjusted for certain non-cash reconciling items, such as non-cash interest expense, stock-based compensation expense, provision to write down inventories to net realizable value, depreciation and amortization, and non-cash lease expense, and changes in our operating assets and liabilities. Cash provided by operating activities increased by $22.1 million during the nine months ended September 30, 2025, as compared to the same period in 2024.
Current wording
Cash flows from operating activities consisted of net loss adjusted for certain non-cash reconciling items, such as non-cash interest expense, stock-based compensation expense, provision to write down inventories to net realizable value, depreciation and amortization, and non-cash lease expense, and changes in our operating assets and liabilities. Cash used in operating activities increased by $8.7 million during the three months ended March 31, 2026, as compared to the same period in 2025.
Previous wording
Cash Flows (Used in) Provided by Investing Activities
Current wording
Cash Flows Used in Investing Activities
Previous wording
Net cash used in investing activities was $7.4 million for the nine months ended September 30, 2025, which is primarily attributable to the purchase of marketable securities and was partially offset by the sale and maturities of marketable securities. Net cash provided by investing activities was $18.3 million for the nine months ended September 30, 2024, which is primarily attributable to the sale of marketable securities and was partially offset by the purchase of marketable securities and the purchase of property and equipment.
Current wording
Net cash used in investing activities was $0.2 million for the three months ended March 31, 2026, which is primarily attributable to the purchase of property and equipment. Net cash used in investing activities was $3.5 million for the three months ended March 31, 2025, which is primarily attributable to the purchase of marketable securities and was partially offset by the sale of marketable securities.
Previous wording
Net cash provided by financing activities increased by $11.3 million during the nine months ended September 30, 2025, compared to the same period in 2024 which is primarily attributable to the proceeds from the Company’s at-the-market offering and proceeds from the exercise of stock options.
Current wording
Net cash provided by financing activities increased by $12.5 million during the three months ended March 31, 2026, compared to the same period in 2025 which is primarily attributable to the proceeds from the Company’s Registered Direct Offering and proceeds from the exercise of stock options during the current period. These inflows were partially offset by the payment of offering costs related to the Registered Direct Offering, and payment of tax withholdings on restricted stock awards, performance stock awards, and exercised options.
Previous wording
Our contractual obligations primarily consist of our Convertible Promissory Note, obligations under operating leases and inventory component purchases. As of September 30, 2025, there have been no material changes from our disclosure in our 2024 Annual Report. For more information on our future minimum operating leases, see Note 11, “Leases” and for more information on our Convertible Promissory Notes and other related debt, see Note 7, “Debt,” of the notes to condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.
Current wording
Our contractual obligations primarily consist of our obligations under operating leases and inventory component purchases. As of March 31, 2026, there have been no material changes from our disclosure in our 2025 Annual Report. For more information on our future minimum operating leases, see Note 11, “Leases” and for more information on our Convertible Promissory Notes and other related debt of this Quarterly Report on Form 10-Q.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
APAC - Net revenue for the APAC region decreased by $2.0 million or 28.7% for the nine months ended September 30, 2025, as compared to the same period in 2024, which is driven primarily by a decrease of $1.9 million in net revenue from our MLPE product line. This decrease was primarily driven by lower demand of our MLPE products in Singapore, Philippines and Australia.