Tigo Energy Reports 62.8% Revenue Decline and Gross Loss for Fiscal Year 2024

Tigo Energy, Inc. reported a significant decline in its financial performance for the fiscal year ended December 31, 2024, with net revenue falling to $54.0 million, a decrease of 62.8% compared to $145.2 million in 2023. The company experienced a gross loss of $4.2 million, contrasting sharply with a gross profit of $51.3 million in the previous year. This downturn is attributed to a broad-based slowdown in the solar industry, particularly in the U.S. and European markets, which was exacerbated by elevated inventory levels among distributors and installers, as well as macroeconomic factors such as rising interest rates and changes in net energy metering policies.

In response to these challenges, Tigo Energy implemented strategic measures, including workforce reductions of approximately 15% in December 2023 and an additional 10% in April 2024. The company also recorded inventory charges of $23.5 million due to excess and slow-moving inventory, primarily within its GO Energy Storage Solutions (GO ESS) product line. The company’s total operating expenses decreased to $47.8 million from $59.6 million in 2023, reflecting cost-cutting efforts amid declining revenues.

Operationally, Tigo Energy's customer base and geographic reach remain extensive, with installations in over 100 countries. However, the company reported a decrease in revenue across all major regions, with the EMEA region experiencing a 70.2% decline, the Americas down 47.8%, and APAC down 23.0%. The company’s employee headcount as of December 31, 2024, was 140, a reduction from previous levels, reflecting its efforts to streamline operations in light of reduced demand.

Looking ahead, Tigo Energy faces substantial challenges, including a significant debt obligation of $50 million due in January 2026 under its Convertible Promissory Note. Management has expressed substantial doubt about the company’s ability to continue as a going concern without securing additional funding or refinancing this debt. The company is exploring options for raising capital, including an at-the-market offering program that could generate up to $14.2 million. However, the current market conditions and the company's stock performance may limit its ability to raise the necessary funds.

In summary, Tigo Energy's financial results for 2024 reflect a challenging environment for the solar industry, marked by declining revenues, increased operational losses, and significant inventory write-downs. The company's strategic adjustments and future capital-raising efforts will be critical in navigating these difficulties and ensuring its ongoing viability in the competitive renewable energy market.