Why Is FTC Solar Stock Slumping Today

FTC Solar, Inc. FTCI reported Q2 revenues of $32.36 million, missing the analyst consensus of $47.38 million. Revenues rose 5.3% Y/Y, driven primarily by higher product volume.

Adjusted EPS of $(0.06) loss missed the consensus of $(0.04) loss.

Non-GAAP gross profit was $2.6 million (margin at 8.2%). The result for this quarter compares to a non-GAAP gross loss of $(5.4) million in the prior-year period, with the difference driven primarily by significantly improved product direct margins.

Non-GAAP operating expenses fell 21.8% to $9.7 million, primarily driven by lower R&D and personnel-related costs.

Adjusted EBITDA loss was $(7.2) million in Q2, narrower than the $(17.7) million loss in the year-ago quarter.

New Orders

European renewables developer Five-E has also selected FTC Solar to supply at Least 300 Megawatts of its solar tracker technology for multiple project sites in Italy and Spain. The terms of the projects have not been disclosed.

This apart, FTC Solar has also inked a 1-Gigawatt tracker agreement to supply the solar photovoltaic (PV) portion of the Cat Creek Energy and Storage Project. 

Q3 Outlook

FTCI expects Q3 revenues of $24 million-$34 million versus consensus of $73.98 million. Q3 revenue is expected to be approximately flat to down, relative to Q2 levels. 

Non-GAAP gross margin is expected to be 3% - 9%. Gross margin performance will directionally follow revenue and increase with higher revenue or decline if lower, driven by cost absorption.

"Project delays, including some related to domestic content discussions around the Inflation Reduction Act, have continued to challenge us as certain revenue anticipated in the second quarter has been pushed into future periods resulting in an overall disappointing quarter," said Sean Hunkler, FTC Solar President and CEO.

"While we're disappointed that customer project delays have impacted near-term revenue, we are pleased to report that we have seen a significant uptick in project wins in the last few weeks, including several notable projects, which should set us up for meaningful revenue growth into 2024."

Price Action: FTCI shares are trading lower by 16.76% to $2.88 premarket on the last check Wednesday.