[Management View]
Tigo Energy, Inc. (TYGO) reported its sixth consecutive quarter of sequential revenue growth, driven by strong performance in the EMEA region. Key metrics include $24.1 million in revenue for Q2 2025, representing 27.7% sequential growth and 89.4% YoY growth. The company shipped 646,000 MLPE units, totaling 477 megawatts delivered. Gross profit was $10.8 million, or 44.7% gross margin, up from $3.9 million, or 30.4%, in the year-ago period. Operating expenses remained flat at $12.3 million, and the operating loss decreased by 82.1% to $1.5 million. GAAP net loss was $4.4 million, versus $11.3 million in the prior-year period. Adjusted EBITDA was $1.1 million.

[Outlook]
For Q3 2025, Tigo Energy expects revenue between $29 million and $31 million, with adjusted EBITDA projected between $2 million and $4 million. The company anticipates GAAP operating profitability at the high end of the adjusted EBITDA range. Full-year 2025 revenue guidance has been increased to $100 million–$105 million. Gross margin is expected to remain in the low forties percent for the remainder of FY2025. The company is focused on addressing the upcoming convertible debt maturity and is engaged in discussions for refinancing options.

[Financial Performance]
- Revenue: $24.1 million, up 27.7% sequentially and 89.4% YoY.
- Gross Profit: $10.8 million, or 44.7% gross margin, up from $3.9 million, or 30.4%, YoY.
- Operating Expenses: $12.3 million, flat YoY.
- Operating Loss: $1.5 million, down 82.1% from $8.4 million YoY.
- GAAP Net Loss: $4.4 million, down from $11.3 million YoY.
- Adjusted EBITDA: $1.1 million, compared to a loss of $6.4 million YoY.
- Cash & Marketable Securities: $28 million, up $7.7 million sequentially.

[Q&A Highlights]
Question 1: Wanted to see if you could provide a little more color on how margins might trend in Q3 and Q4. And then do you have a view on 2026 yet? Or is it still too early? Thanks.
Answer: For the balance of the year, we expect to be in the low forties as we are presently. We expect to be mostly depleted from any of the reserved Go ESS inventory that is being sold off by the end of the year. Our target model is 40% on the gross margin. We are seeing solid growth trajectory here. We are not providing guidance for 2026 on this call, but we are seeing positive trends.

Question 2: Can you share what you expect it to be for Q3? And then International and US revenue split for Q2. Any color you can provide for 2026?
Answer: For Q2, US revenue was 17% of total revenues, and for the last six months, it was trending a little under 20%. 80% of our revenues come from outside the US market, with the EMEA region representing 65 to 75%. We expect that trend to continue. The US market has been fairly stable, and we have been successful in the longer tail of that market.

Question 3: With respect to the EBITDA outlook, should we assume we can potentially end the year positive EBITDA this year?
Answer: Yes, it is expected that we would have a positive EBITDA year at this point.

Question 4: Do you think there is enough strength in demand to make up for any gaps from the US side from the international markets?
Answer: We have not had 45x credits or domestic production advantages, and we have achieved success through the longer tail of the market. We are less impacted by changes in the congressional bill. We are capturing areas where it is harder for others to capture, maintaining our position, and growing market share.

Question 5: As your revenues are starting to improve sequentially, how should we think about any operating cost increases?
Answer: We plan to maintain operating expense discipline. Stock compensation may cause OpEx to drift slightly higher, but cash OpEx will be flat or slightly up with growth, much less than 50% of any growth next year.

Question 6: Can you provide a more detailed breakdown of market share gains versus recovery in key markets like Germany, the Czech Republic, and Poland?
Answer: Germany has been a strong performer with sequential growth for multiple quarters. The Czech Republic and Poland have also shown substantial growth. We are not dependent on any one specific segment, which positions us to be stronger and grab market share.

Question 7: How do you attribute the market share gains? Is it due to open architecture or efforts to drive awareness and penetration with distributors?
Answer: More people know about our value proposition. We have not added any significant distributors but are executing marketing programs with existing ones and spending energy with installers to improve our footprint.

[Sentiment Analysis]
Analysts were positive and appreciative of the company's strong execution and growth trajectory. Management maintained a confident and optimistic tone, emphasizing their strategic focus and market share gains.

[Quarterly Comparison]
| Metric | Q2 2025 | Q2 2024 |
|-------------------------|------------------|------------------|
| Revenue | $24.1 million | $12.7 million |
| Gross Profit | $10.8 million | $3.9 million |
| Gross Margin | 44.7% | 30.4% |
| Operating Expenses | $12.3 million | $12.3 million |
| Operating Loss | $1.5 million | $8.4 million |
| GAAP Net Loss | $4.4 million | $11.3 million |
| Adjusted EBITDA | $1.1 million | -$6.4 million |
| Cash & Marketable Sec. | $28 million | $20.3 million |

[Risks and Concerns]
- Convertible debt of $50 million maturing in January 2026, with ongoing refinancing discussions.
- Potential impact of US market slowdown, though mitigated by strong international performance.
- Dependence on maintaining gross margin targets amid fluctuating inventory levels.

[Final Takeaway]
Tigo Energy, Inc. demonstrated robust financial performance in Q2 2025, with significant revenue growth and improved margins. The company's strategic focus on international markets, particularly the EMEA region, has driven its success. Management's disciplined approach to operating expenses and positive EBITDA outlook for the year further underscore their confidence in sustaining growth. Investors should monitor the company's progress in addressing its convertible debt and its ability to maintain market share amid potential US market challenges.