Tigo Energy (NASDAQ:TYGO) reported second-quarter 2026 revenue growth of 5.6% from a year earlier, though results fell below the company’s expectations amid softer residential solar markets and delays in the launch of an optimized inverter solution with U.S. partner EG4.
Revenue for the quarter ended June 30 totaled $25.4 million, compared with $24.1 million in the prior-year period and $25.2 million in the first quarter. CEO Zvi Alon said the company delivered year-over-year growth despite residential solar contraction in several markets it serves, but described the quarter as below prior guidance because of external timing factors and market conditions.
Market conditions and inverter launch delay
Alon said U.S. sales declined 4% year over year following the expiration of the Residential Clean Energy Credit, while Wood Mackenzie has forecast a 21% annual decline in U.S. residential volumes in the post-25D environment. Residential installations also declined by double digits in Italy and the Czech Republic, according to the company.
The company’s anticipated contribution from its Section 45X- and ITC-qualified optimized inverter solution was delayed after its U.S. optimized inverter partner encountered operational issues. Volume shipments are now expected to begin ramping in the fourth quarter, rather than earlier in the year.
During the question-and-answer session, Alon said Tigo had already shipped products to EG4 and that the partner had paid for them. He characterized the delay as an operational timing matter involving “several moving parts,” rather than a change in the companies’ plan. Alon said he was “fairly confident,” and close to 100% confident, that the ramp would begin in the fourth quarter.
Tigo said the Federal Communications Commission’s decision to restrict future authorization of foreign-produced power inverters could support its U.S. manufacturing strategy. Alon said Tigo has begun moving production to the United States and has started shipping from the country. He also said the company controls the communications aspects of its inverters and could see an opportunity to extend that capability to other inverter products.
Europe and product mix
In Europe, management said the market recovery has progressed more gradually than expected. Still, Alon cited year-over-year growth of 6% in Germany and 20% in Italy, along with growth in Spain and Australia, as evidence of the benefits of Tigo’s geographically diversified business.
The company said European Union restrictions on inverters from high-risk vendors in EU-funded projects could direct demand toward trusted vendors in markets where Tigo has an established presence, including the Czech Republic and Poland.
Germany’s cabinet approved changes in July that would fix the feed-in tariff for new systems beginning in 2027, while systems connected to the grid by the end of 2026 would retain existing terms. Alon said Tigo believes the change could pull demand into the second half of 2026 and increase the value of storage and self-consumption products.
Tigo’s GO ESS business generated $2.2 million, or 8.6%, of quarterly revenue. Management said the ramp of its new GO Battery was slower than planned. MLPE revenue was $22.7 million, representing 89.2% of total revenue, while EI Platform revenue totaled $600,000. Predict+ annual recurring revenue reached $1.7 million at quarter-end.
Profitability, cash and working capital
Second-quarter gross profit was $10 million, or 39.3% of revenue, compared with $10.8 million, or 44.7% of revenue, a year earlier. Excluding GO ESS, gross margin was 42.1%. CFO Bill Roeschlein said the difference was primarily due to sales of the company’s remaining inventory of older EI batteries.
Operating expenses declined 4.8% year over year to $11.7 million and fell 11.6% sequentially. Tigo reported an operating loss of $1.7 million, compared with an operating loss of $1.5 million in the prior-year quarter.
GAAP net income was $2.2 million, versus a GAAP net loss of $4.4 million a year earlier. The quarter’s result included a $3.2 million income tax benefit; on a pretax basis, the company recorded a $1 million loss. Non-GAAP net income was $3.6 million, compared with a non-GAAP net loss of $2.1 million in the prior-year period. Adjusted EBITDA was $52,000, down from $1.1 million a year earlier.
Tigo ended the quarter with $16.9 million in cash and cash equivalents, up $5.3 million sequentially and $9.2 million from year-end 2025. Inventory declined to $20.6 million from $24.8 million at the end of the first quarter, while accounts receivable decreased to $13.6 million from $14.2 million. The company had $4.1 million outstanding under its revolving credit facility.
Updated outlook
Tigo forecast third-quarter revenue of $24 million to $26 million and adjusted EBITDA ranging from a loss of $1 million to positive $500,000. For full-year 2026, the company reduced its revenue outlook to $100 million to $110 million.
Roeschlein said the revised outlook reflects the delayed EG4 go-to-market launch, the slower GO Battery ramp and the more gradual European market recovery. During the call, he said Tigo’s gross-margin target remains 40%.
Alon said the company is taking a conservative approach to its full-year outlook and is not relying heavily on fourth-quarter contribution from EG4 or delayed utility-scale projects. Management said several utility-scale opportunities remain active but have been delayed by project timing and internal operational changes at customers.
Looking ahead, Alon said he expects signs of a return to more normal market conditions and said he would “like to believe” growth could accelerate in the first quarter of 2027. He emphasized that Tigo remains focused on product initiatives, partner relationships, U.S. manufacturing, expense discipline and working-capital management.
About Tigo Energy (NASDAQ:TYGO)
Tigo Energy, Inc (NASDAQ: TYGO) is a U.S.-based provider of module-level power electronics (MLPE) solutions designed to optimize the performance and safety of solar photovoltaic systems. Founded in 2007 and headquartered in Campbell, California, Tigo Energy develops hardware and software tools that enhance energy yield, improve system reliability, and streamline compliance with electrical codes. The company’s technology platform is used by solar installers, project developers, and module manufacturers to deliver higher returns on investment and bolster the safety profile of PV arrays.
At the core of Tigo’s offerings is its TS4 platform, a modular MLPE solution that enables real-time monitoring, rapid shutdown functionality, and maximum power point tracking at the panel level.
