Strategic Performance and Market Dynamics – Achieved non-GAAP operating profitability for the first time in nearly three years, driven by a 20% year-over-year revenue increase and six consecutive quarters of gross margin expansion. – Attributed U.S. residential market softness…
a slower tax equity funding environment and uncertainty regarding FEOC definitions, which has constrained installer cash flows and distributor inventory levels. – Expanded U.S. C&I market share to over 50% of rooftop installations, benefiting from being the only major inverter vendor delivering U.S.-manufactured products that meet domestic content and FCC requirements. – Doubled European revenue year-over-year as demand surged ahead of anticipated electricity price hikes and the phase-out of net metering in major markets. – Launched the Nexis platform in Europe with over $60 million in initial shipments, leveraging independent benchmarks that show significant long-term savings over competitors due to superior round-trip efficiency. – Advanced the AI factory strategy by transitioning from development to live demonstrations of the Solid State Transformer (SST) system, validating 99% efficiency for data center power infrastructure
Outlook and Strategic Initiatives – Q3 revenue guidance of $310 million to $340 million assumes a $15 million sequential decline in Europe due to seasonality and continued softness in the U.S. residential market. – Anticipates a volume rollout of the Nexis platform in the U.S. during the second half of 2026, supported by approvals across major financing platforms including TPO and prepaid PPA products. – Expects to reach a fully working SST system in the lab by year-end 2026, followed by pilot installations in 2027 and volume shipments to the data center market in 2028. – Projects positive free cash flow for the full year 2026, supported by the monetization of 45X credits and continued discipline in managing capital investments. – Plans to share detailed safe…