FTC Solar Sees 46% Q4 Revenue Growth at Midpoint After Q3 Sales Rise

FTC Solar Inc. (Nasdaq: FTCI) forecast a sharp sequential increase in fourth-quarter revenue after third-quarter sales rose 25%, while management said it expects to reach adjusted EBITDA profitability in the first quarter of 2027.

The solar-tracker provider reported revenue of $32.8 million for the three months ended Sept. 30, 2026, up from $26.2 million in the second quarter and $26.0 million a year earlier. The result was above the midpoint of the company’s $30 million to $35 million guidance range.

FTC Solar guided for fourth-quarter revenue of $44 million to $52 million. The $48 million midpoint would represent sequential growth of about 46% and the company’s highest quarterly revenue level in roughly five years. Management also expects continued sequential growth in the first quarter of 2027 and “significant” revenue growth for the full year, though it did not provide quantified 2027 guidance.

Margins improve, but operating losses persist

Third-quarter GAAP gross margin was 5.8%, compared with 6.1% a year earlier. On a non-GAAP basis, gross margin increased to 8.4% from 7.7% and exceeded the company’s guidance range of negative 3.0% to positive 5.1%.

FTC Solar posted a GAAP operating loss of $8.5 million, widening from $7.7 million in the prior-year quarter. Adjusted EBITDA was a loss of $5.2 million, compared with a $4.0 million loss a year earlier, but was better than the guided loss range of $6.0 million to $9.3 million. Non-GAAP operating expenses were $8.1 million, little changed from $8.0 million a year earlier.

GAAP net income was $6.7 million, versus a net loss of $23.9 million in the third quarter of 2025. The latest period included a $19.5 million non-cash gain from a change in the fair value of warrant liabilities. Adjusted net loss, which excludes that gain and other specified items, widened to $7.6 million from $5.3 million. Adjusted loss per share was $0.44, compared with $0.36 a year earlier.

For the fourth quarter, FTC Solar expects non-GAAP gross profit of $5.0 million to $8.3 million, representing a non-GAAP gross margin of 11.4% to 15.9%. Non-GAAP operating expenses are projected at $8.2 million to $8.8 million, while adjusted EBITDA is expected to range from a $3.9 million loss to break-even.

Project awards span North America, Europe and India

The company highlighted several project wins across multiple markets and with new customers. In North America, FTC Solar contracted a 750-megawatt project with a developer and financial backer and was awarded a 175-megawatt U.S. project by a new customer. It is also working with Linxon and ETC on a 600-megawatt portfolio in Puerto Rico.

In Europe, the company secured a new 500-megawatt master services agreement covering projects in the U.K. with AGR. In India, it contracted a 118-megawatt project with Tata Power Solar and a 121-megawatt project with Evren, a platform backed by Brookfield.

FTC Solar also cited third-party validation showing an installation rate of 81 labor hours per megawatt for its Pioneer tracker system. The company said it is advancing its robotics initiatives and has entered several new agreements, without providing financial details.

The outlook remains subject to execution and timing risks associated with the company’s projects, as well as the broader uncertainties identified in its SEC filings. FTC Solar also recorded $475,000 of severance costs during the quarter related to restructuring intended to align staffing and overhead with its strategic priorities and customer needs.