Good afternoon. Welcome to Tigo Energy Fiscal Second Quarter 2025 Earnings Call. Joining us today from Tigo are Zvi Alon, CEO; and Bill Roeschlein, CFO. As a reminder, this call is being recorded. I would now like to turn the call over to Bill Roeschlein, Chief Financial Officer. Sir, please go ahead.

Thank you, Michelle, and it's a pleasure to join you today. Also with us is Zvi Alon, our CEO. We'd like to remind everyone that some of the matters we'll discuss on this call, including our expected business outlook, our ability to increase our revenues and achieve and maintain profitability, and our overall long-term growth prospects, expectations regarding a continued recovery in our industry, statements about demand for our products; our competitive position and market share, the impact of tariffs, our current and future inventory levels, inventory supply, and its impact on our customer shipments. Statements about our revenue, adjusted EBITDA, and GAAP operating results for the third fiscal quarter of 2025 and our revenue and adjusted EBITDA for the full fiscal year 2025, statements about our existing backlog and bookings, statements about our ability to restock inventories and increase our capacity in response to increased demand, statements about our ability to refinance our outstanding indebtedness and the expected benefits thereof, our ability to penetrate new markets and expand our market share, including expansion in international markets and investments in our product portfolio are forward-looking. These statements are subject to known and unknown risks and uncertainties, including, but not limited to, those factors described in today's press release and discussed in the Risk Factors section of our most recent annual report on Form 10-K, our quarterly report on Form 10-Q for the fiscal quarter ended June 30, 2025, and other reports we may file with the SEC from time to time. These risks and uncertainties could cause actual results to differ materially from those expressed on this call. These forward-looking statements are made only as of the date when made. During our call today, we will reference certain non-GAAP financial measures. We include non-GAAP to GAAP reconciliations in our press release furnished as an exhibit to our Form 8-K. The non-GAAP financial measures provided should not be considered a substitute for or superior to the measures of financial performance prepared in accordance with GAAP. Finally, I would like to remind everyone that this conference call is being webcast and a recording will be made available for replay on Tigo's Investor Relations website at investors.tigoenergy.com. With that, I'd like to now turn the call over to Tigo's CEO, Zvi Alon. Zvi?

Thank you, Bill. To begin today's discussion, I will highlight key areas in our recent financial and operational performance before turning the call over to our CFO, Bill Roeschlein. He will discuss our financial results for the second quarter in more depth as well as provide our guidance for the third quarter and increased financial guidance for the full year of 2025. After that, I will share some closing remarks, tell you about our outlook, and then open the call for questions from our analysts. Approximately 2 years ago, Tigo became a public company and although the industry has had to endure some unexpected circumstances along the way, we believe that the value proposition that Tigo brings to this market has not changed. Competitor solutions have historically forced solar system designers and installers to compromise under the one-size-fits-all umbrella. These compromises often led to solar installations that are less efficient, less flexible, less reliable, and more expensive than open systems, open architecture solutions that Tigo enables. Our MLPE enables solar system designers to install flexible, best-in-class solar systems without the need to accept compromises such as power clipping, low energy conversion efficiencies, and high costs. We believe our value proposition in this market has not changed and that the growth we are experiencing in a challenging market is evidence that our market share is increasing and sustainable. For the second quarter of 2025, I'm pleased to report our sixth increase in sequential quarterly revenue growth, growing 27.7% sequentially and 89.4% on a year-over-year basis. Exceeding the high point of our second quarter guidance, we ended the quarter with a total of $24.1 million, and our existing backlog and bookings that are expected to ship in the third quarter currently exceed our revenue results for the second quarter, and we are ramping up capacity. In addition, we shipped 646,000 units or 477 megawatts of MLPE, and based on publicly reported figures and estimates, we believe these figures represent increased market share gain for Tigo during the quarter. I'm also pleased to report $1.1 million in positive adjusted EBITDA and an increase in cash, cash equivalents, and marketable securities of $7.7 million for the quarter. This performance underscores the leverage in our operating model as we grow the company while maintaining spending discipline with operating expenses. Finally, we look ahead to the second half of 2025 and into 2026. We are excited about our product roadmap and expect to make several new product announcements in the future. And with that, I will turn it over to Bill. Bill?

Thank you, Zvi. Turning now to our financial results for the second quarter ended June 30, 2025. Revenue for the second quarter of 2025 increased 89.4% to $24.1 million from $12.7 million in the prior year period. As Zvi mentioned, this represents significant growth in a challenging market. On a sequential basis, revenues increased 27.7%, with improved results coming from many countries in the EMEA region, including Germany, the Czech Republic, and Poland. By region, EMEA revenue was $18.3 million or 75.9% of total revenues. Americas revenue was $4.6 million or 19.1% of total revenues and APAC revenue was $1.2 million or 5% of total revenues. By product family, the second quarter of 2025 had MLPE revenue representing $20.6 million of revenue or 85.7% of total revenues. GO ESS represented $2.3 million or 9.4% of total revenues and Predict+ and licensing revenue represented $1.2 million or 4.9% of total revenues during the quarter. Gross profit for the second quarter of 2025 was $10.8 million or 44.7% of revenue compared to a gross profit of $3.9 million or 30.4% of revenue in the comparable year-ago period. During the quarter, gross margins benefited by 450 basis points from the sale of reserved GO ESS inventory. Operating expenses for the second quarter were flat at $12.3 million compared to the prior year period. Operating loss for the second quarter decreased by 82.1% to $1.5 million compared to $8.4 million in the prior year period. GAAP net loss for the second quarter was $4.4 million compared to a net loss of $11.3 million for the prior year period. Adjusted EBITDA for the second quarter was $1.1 million compared to an adjusted EBITDA loss of $6.4 million in the prior year period. These results reflect a combination of strong top-line performance and the operating leverage in our business model. As a reminder, adjusted EBITDA is a non-GAAP measure that represents net loss as adjusted for interest and other expenses, net income tax depreciation and amortization expense, stock-based compensation, and M&A transaction expenses. Primary shares outstanding were 62.3 million for the second quarter of 2025. Turning to the balance sheet. Accounts receivable net remained consistent at $10.4 million between the first and second quarter and increased from $6.9 million in the year-ago comparable period. Inventories net were sequentially flat at $18.9 million at the end of the second quarter compared to $51.3 million in the year-ago comparable period. At this point, we have largely resolved our excess inventory balance and our revenue capacity with our contract manufacturers to address increasing demand. Cash, cash equivalents, and short and long-term marketable securities totaled $28 million at June 30, 2025. On a sequential basis, cash increased by $7.7 million. Turning to short-term debt. The gross amount of our convertible debt, which will mature in January of 2026, totaled $50 million at quarter end. We continue to evaluate refinance options on the debt and are engaged in discussions with certain parties regarding a refinance or other transactions to facilitate payment or other resolutions in light of its upcoming maturity. We are looking at a combination of alternatives that will support the company's growth and maximize value. We believe that the improvement in our financial performance this year will enable us to address our convertible debt on terms that will be beneficial to all stakeholders including our shareholders, and we will apprise you when we have more to announce. Turning now to our financial guidance for the third quarter of 2025 and increased financial guidance for the full year of 2025. As a reminder, Tigo provides quarterly guidance for revenue as well as adjusted EBITDA as we believe these metrics to be key indicators for the overall performance of our business. For the third quarter of 2025, we expect revenues and adjusted EBITDA to be in the following range. We expect revenues in the third quarter ended September 30, 2025 to range between $29 million and $31 million. As Zvi noted, the existing backlog and bookings that are expected to ship in the third quarter currently exceeds our revenue results for the second quarter, and we are replenishing inventories and increasing capacity in response to increased demand. We expect adjusted EBITDA to range between $2 million and $4 million. Our guidance also incorporates GAAP operating profitability at the high end of the adjusted EBITDA guidance range. Based on our current demand forecast, we are raising our 2025 financial outlook for the full year and now expect revenue to be between $100 million and $105 million. That completes my summary. I'd like to now turn the call back over to Zvi for final remarks. Zvi?

Thanks, Bill. We look ahead, I'm happy to say that even against the backdrop of continued economic uncertainty, we believe that our track record of six consecutive quarters with top-line growth will continue for the remainder of 2025 as demand for our solutions business, and I look forward to providing additional updates in the coming quarters. With that, operator, please open the call for Q&A.

The first question comes from Philip Shen with ROTH Capital Partners.

Guys, great execution there. Wanted to see if you could provide a little more color on how margins might trend in Q3 and Q4. And then do you have a view on 2026 yet? Or is it still too early?

For the remainder of the year, we anticipate staying in the low 40s, similar to our current position, and expect to significantly reduce any reserved GO ESS inventory by the end of the year. Our target model indicates a 40% increase in gross margin, and we achieved this performance previously when entering this revenue segment. This is how I view the business as I consider 2026. At present, we are experiencing a strong growth trajectory, and while we're not offering guidance for 2026 during this call, we are noticing some encouraging trends.

And sorry if I missed this as I'm bouncing between earnings. Can you share what the international and U.S. revenue split was for Q2 what you expect it to be for Q3? And then any color you can provide for 2026. Do you expect that SKU or mix to shift meaningfully maybe perhaps to Europe more so than the U.S. as we get into the next calendar year?

For Q2, U.S. revenue accounted for 17% of total revenues, and for the past six months, it has been trending slightly below 20%. This means that 80% of our revenue is generated from outside the U.S., with the EMEA region comprising 65% to 75%. We anticipate this trend to persist. Conventional wisdom suggests that the U.S. market may shrink next year more than it has this year, especially with the new congressional bill. However, we are seeing significant traction internationally. Despite what competitors may be experiencing, our results in the U.S. market have remained quite stable. We have been successful in the longer tail of that market. Being a smaller player allows us to capture market share and grow in that manner.

Thanks, Bill. Go ahead, Zvi.

No, no I'm fine. Bill covered it pretty much. And our exposure to the slowness here in the U.S. is not severe.

And our next question comes from Amit Dayal with H.C. Wainwright.

With respect to the EBITDA outlook, Bill, for the year, should we assume we can potentially end the year positive EBITDA this year?

I think that would be expected that we would have a positive EBITDA year at this point, yes.

Okay. Given that you mentioned the U.S. might slow down next year, do you believe there is sufficient demand strength to compensate for any shortfalls from the U.S. markets with international markets?

It's interesting to note the recent changes with the congressional bill. We haven't been able to take advantage of credits from domestic production. Despite this, we've been successful by focusing on the longer tail of the market, gaining share that way. Therefore, we may face less impact compared to companies with dominant market shares, especially those affected by the new BBB bill. This stability has contributed to steady growth in the U.S. market. We're targeting specific segments, such as the repower market, which we recently highlighted in a press release. Even in a challenging or declining market, we're managing to gain share and grow. I believe we can continue to grow even if the overall market in the U.S. shrinks.

Yes. Because I was just trying to see if the U.S. market doesn't deteriorate too much or less than maybe what you think next year, that could provide additional upside to what you may already be sort of looking at for how next year is set up for you.

That is absolutely 100% correct. We are holding our position as we speak right now despite the challenges. And as Bill said, we are not the biggest fish in that market, but we are capturing areas where it's harder for the other guys to capture. And so therefore, not only are we maintaining our position, but we are growing market share.

Okay. Just one more question from me. As your revenues begin to improve sequentially, how should we view any potential increases in operating costs? I understand you mentioned there seems to be more opportunity for operating leverage. From a cost standpoint, do you think we should keep our expectations at the current levels?

So you can see we plan to maintain operating expense discipline on a noncash basis, stock compensation did go up a little bit as reflected in the EBITDA reconciliation, and that may cause the OpEx number to drift a little bit higher than where some models may indicate. But the cash OpEx is going to be slightly up with growth, but relatively flat. So it's definitely going to be much less than 50% of any growth that we see next year.

The next question comes from Eric Stine with Craig-Hallum Capital Group.

There are clearly positive trends in Europe, and it seems that market share gains are a key factor. However, I would appreciate a more detailed discussion about your insights on those market share gains compared to the recovery in some of the key markets you mentioned. You referenced Poland and the Czech Republic, and I'm curious about your position regarding the recovery in Germany as well.

Germany has been a very strong performer for us, showing consistent recovery with sequential growth over multiple quarters. The Czech Republic, starting from a smaller base, has also experienced significant growth. This market is not dominated by a duopoly; instead, it is fragmented, which presents a great opportunity for us to gain market share. Similarly, Poland was very strong entering mid-2023 but has shrunk significantly, affecting all participants. However, it made a considerable contribution in the latest quarter after a period of relative quiet. Italy and the United Kingdom are performing very well from a macro renewable perspective, even though they weren't mentioned. There are other parts of Europe that I haven't addressed, likely markets that have not yet begun their own growth cycles. As for the Netherlands, it appears to be recovering at a slower pace compared to the other countries.

I want to emphasize that we have mentioned multiple times before that a key advantage of our products is that we are not reliant on any single market segment. Whether it's residential, commercial and industrial, or utility scale, we use the exact same product. This means that if there are challenges in one sector in Germany, for instance, we are less affected. Similarly, in the Czech Republic, we are experiencing growth in both residential and large utility scale markets, and we can respond to these changes more swiftly than others. Our products are versatile and effective across various applications. However, it's important to note that market behaviors vary, which positions us to be stronger and allows us to gain market share from competitors.

That's helpful. As you gain market share and increase the capture rate with your distributors, do you mention open architecture? How do you attribute the breakdown? Is it due to your efforts to enhance awareness and boost penetration with those distributors? Could you elaborate on that?

So yes, more people are becoming aware of us and our value proposition, making it a bit easier for us. We haven't added any significant new distributors globally; instead, we continue to work with our long-time partners. We are implementing various plans and marketing programs with them to enhance our presence in the market. At the same time, we are also focusing on educating installers about our solutions. This combination of efforts has led to the growth we are experiencing. Our peak business is substantial, not only through distribution but also with our existing customer installers.

At this time, I am showing no further questions in the queue. And I would like to turn the call back over to Mr. Alon for closing remarks.

Thank you. At this time, this concludes the question-and-answer session. I'd now like to turn the call back to myself. Thanks again, everyone, for joining us today. I especially want to thank our dedicated employees for their ongoing contribution as well as our customers and partners for their continued hard work. I also want to thank the investors for their continued support.

Thank you for joining us today for Tigo's Second Quarter 2025 Earnings Conference Call. You may now disconnect.