Tigo Energy (NASDAQ:TYGO) reported fiscal fourth quarter and full-year 2025 results that management described as another strong quarter despite typical seasonal slowdowns in the solar industry. The company’s leadership highlighted continued growth in module-level power electronics (MLPE) shipments, geographic expansion, and new product and partnership initiatives expected to influence results in fiscal 2026.
Full-year growth and fourth-quarter performance
Chief Executive Officer Zvi Alon said the company finished fiscal 2025 with $103.5 million in revenue, representing 91.7% year-over-year growth. For the fiscal fourth quarter ended December 31, 2025, Tigo reported $30.0 million in revenue, up 73.8% from $17.3 million in the year-ago period.
Regional and product mix trends
CFO Bill Rossi detailed revenue by region for the fourth quarter:
- EMEA: $18.1 million (60.3% of total revenue)
- Americas: $9.2 million (30.8%)
- APAC: $2.7 million (8.9%)
Alon said the company saw continued sequential growth in several EMEA and Americas countries. He singled out the U.K. as “exceptional,” growing 72.3% sequentially, and the U.S., which grew 24.4% sequentially. Those gains were partially offset by seasonal softness in Germany and Italy and lower revenue in Eastern Europe—specifically the Czech Republic and Poland—where Alon said unusually cold weather significantly impacted solar installations. Management said it expects some lingering impact from that weather-driven softness to spill into the first quarter of fiscal 2026.
In APAC, Alon said revenue more than doubled sequentially, with particularly strong results in Australia.
By product family in the fourth quarter, Rossi said revenue was primarily driven by MLPE:
- MLPE: $26.9 million (89.7% of total)
- GO ESS: $2.2 million (7.4%)
- Predict+ and licensing: $0.9 million (2.9%)
Profitability, margins, and balance sheet items
Tigo reported a significant improvement in profitability metrics year over year. Gross profit in the fourth quarter was $13.4 million, or 44.5% of revenue, compared with a gross loss of $12.6 million (negative 72.7% margin) in the prior-year quarter. Rossi attributed the year-over-year improvement primarily to an inventory charge of $19.5 million recorded in the year-ago period. He also noted that USD/Euro foreign exchange rates were beneficial, as most of the company’s revenue and expenses are denominated in U.S. dollars.
Operating expenses increased 13% to $13.0 million, driven mainly by higher sales and marketing and general and administrative expenses. Operating income was $0.3 million, compared with an operating loss of $24.1 million in the prior-year quarter.
GAAP net income for the quarter was $11.7 million, compared with a net loss of $26.8 million a year earlier. Rossi said net income included a $14.6 million net gain on the sale of intangible assets. Diluted earnings per share were $0.16, compared with a loss per share of $0.44 in the fourth quarter of 2024. Adjusted EBITDA was $2.7 million, compared with an Adjusted EBITDA loss of $22.1 million in the prior-year period.
During Q&A, management said there was previously written-off inventory sold during the quarter, which had about a three percentage point positive impact on gross margins.
On the balance sheet, Rossi reported:
- Accounts receivable (net): $13.9 million, down from $15.8 million in the prior quarter
- Inventory (net): $31.3 million, up from $28.5 million in the prior quarter
- Cash, cash equivalents, and marketable securities: $7.7 million at year-end
Alon highlighted that the company eliminated its $50 million convertible promissory note ahead of its January 2026 maturity, which he said removed $2.5 million in annual interest obligations and left the company with no outstanding debt maturities. Rossi said cash and marketable securities decreased sequentially by $32.6 million as a result of repaying that note.
Rossi also disclosed a definitive agreement for a registered direct offering of 5 million shares of common stock at $3 per share, expected to generate approximately $15 million in gross proceeds before fees and expenses. The offering was expected to close on or about February 26, 2026, subject to customary conditions. In response to an analyst question, management said the financing supports working capital needs and provides flexibility to pursue growth initiatives.
2026 guidance and key initiatives
For the first quarter of fiscal 2026, Tigo guided revenue to $25 million to $27 million and Adjusted EBITDA to negative $1 million to positive $1 million. Rossi said the quarterly outlook reflects weather-related seasonality in EMEA and includes a potential $500,000 reserve in operating expenses related to a “slow-paying distributor issue” the company is working to resolve.
For the full year fiscal 2026, the company projected revenue of $130 million to $135 million, representing 26% to 30% growth year over year. Management said it expects to outgrow competition again.
Looking to drivers beyond the baseline outlook, management discussed several initiatives:
- EG4 partnership and U.S. domestic manufacturing: Alon said Tigo established a domestic contract manufacturing operation enabling production of “qualified domestic content” and CEC-compliant MLPE. Management said initial deliveries tied to the EG4 relationship are scheduled for May, with some benefit expected in Q2 and a “full benefit” beginning in Q3.
- GO Battery launch: The company announced a new GO Battery for the U.S. market, with 5 kWh to 30 kWh capacity in 5 kWh modules. Alon described it as an upsell opportunity and a contributor to growth in the U.S., and Rossi said the battery introduction is expected to contribute positively beginning in Q2 and beyond.
- Repower initiative: Management reiterated expectations for continued growth in repowering, and Rossi said repower demand could pair with battery upsell opportunities.
On margins, management said its target model is 40% gross margin and indicated a goal of maintaining that level as new products ramp.
In closing remarks, Alon said the company is encouraged by its progress amid an evolving solar market and remains confident in Tigo’s long-term growth trajectory.
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.
