FTC Solar, Inc. reported a significant decline in financial performance for the fiscal year ending December 31, 2024, with total revenue dropping to $47.4 million from $127.0 million in 2023, marking a decrease of approximately 62.7%. The company's product revenue fell by 63.2% to $37.5 million, while service revenue decreased by 60.9% to $9.8 million. The gross loss for the year was $12.6 million, compared to a gross profit of $8.3 million in the previous year, resulting in a gross margin of -26.6% for 2024. The company attributed these declines primarily to a 69% decrease in megawatts produced due to customer project delays, which were exacerbated by interconnection issues and regulatory uncertainties.
In terms of operational changes, FTC Solar underwent a restructuring that included a 12% reduction in workforce, aimed at aligning costs with current market conditions. The company also made strategic leadership changes, appointing Yann Brandt as President and CEO in August 2024, and Cathy Behnen as CFO in February 2024. Additionally, FTC Solar completed a reverse stock split on November 29, 2024, to regain compliance with Nasdaq listing requirements after receiving a notice for failing to maintain a minimum bid price of $1.00 per share.
The company has also engaged in significant strategic developments, including the sale of its Atlas software platform for $0.9 million and the issuance of $15 million in senior secured promissory notes and warrants to an institutional investor. These notes, which mature in December 2029, bear an interest rate of 11% per annum, with the option for paid-in-kind interest. The proceeds from these transactions are intended to support the company's balance sheet and operational needs.
As of December 31, 2024, FTC Solar reported an accumulated deficit of $347.7 million and cash on hand of $11.2 million, raising substantial doubt about its ability to continue as a going concern. The company has approximately $64.9 million of remaining capacity available for future sales of common stock under its at-the-market (ATM) program, which may be constrained by market conditions. Looking ahead, FTC Solar anticipates that its ability to meet financial covenants under the senior notes, including achieving $100 million in revenue for 2025, will be critical for its operational viability.
The company continues to focus on expanding its market presence and enhancing its product offerings, including the introduction of new technologies aimed at improving solar energy production efficiency. However, FTC Solar faces ongoing challenges related to supply chain disruptions, regulatory changes, and competitive pressures in the solar energy market, which could impact its future performance and growth prospects.
About FTC Solar, Inc.
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