FTC Solar Q4 2023 Net Loss Narrows by 45.3% YoY to $11.2 Million

The company generated a revenue of $23.2 million, an 11.5% YoY decline


U.S.-based solar tracker systems provider FTC Solar’s net loss for the fourth quarter (Q4) in 2023 amounted to $11.2 million, an improvement of 45.3% year over year (YoY) compared to a net loss of $20.5 million as operating expenses declined in light of lower product volume.

Total Q4 revenue reached $23.2 million, declining by 11.5% YoY due to reduced logistics volumes.

After experiencing a period of restricted purchase orders spanning 18 months, resulting in decreased revenue levels, the company has seen a surge in closing purchase orders.

FTC Solar said this development enhances visibility and sets the stage for a revenue rebound during the second half. Additionally, the company is making strides in improving efficiencies and reducing the breakeven revenue threshold.

Operating expenses totaled $10.8 million, an increase of 8% YoY compared to $10 million.

Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) loss, excluding approximately $1.1 million in stock-based compensation expense and other non-cash items, amounted to $10.1 million, which marked a decrease of 8.1% YoY from a loss of $11 million.

The company said it has initiated the search for its next CEO, and the board is directing its efforts toward identifying candidates from both the current industry and related sectors who possess the capability to lead the company for an extended period.

Since November 8, approximately $213 million has been appended to the backlog, bringing the total backlog to roughly $1.7 billion.

Full Year 2023

The company’s net loss for the full year was $50.29 million, a 49.5% YoY improvement compared to a net loss of $99.61 million.

FTC Solar’s revenue for the year was recorded at $127 million, an increase of 3.2% YoY from $123.02 million.

Adjusted EBITDA stood at a loss of $34.15 million, an improvement of 48.5%YoY.

In recent times, the company said it has prioritized customer-centric initiatives, dedicating extensive time to engaging with customers and coordinating cross-functional efforts to better meet their diverse needs.

In addition to this intensified customer focus, the company has been refining its product offerings. The cumulative effect of these endeavors has led to a notable surge in contracted project rates, averaging about $50 million per month over the past eight months, with acceleration witnessed every quarter.

This is expected to encompass increased success in converting previously awarded projects into contracted projects with confirmed purchase orders.

The company recorded a net loss of $16.94 million during the third quarter (Q3) of the financial year (FY) 2023, a year-over-year (YoY) improvement of 34% from a loss of $25.64 million.

FTC Solar’s net loss narrowed to $11.8 million for the Q1 FY 2023 from $27.8 million YoY despite declining revenue because the cost of revenue associated with engineering services saw a sharper cut.