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1. Company Snapshot

1.a. Company Description

Tigo Energy, Inc.provides intelligent solar and energy storage solutions.It develops and manufactures smart hardware and software solutions that enhance safety, increase energy yield, and lower operating costs of residential, commercial, and utility-scale solar systems.


The company combines its Flex MLPE (Module Level Power Electronics) and solar optimizer technology with intelligent, cloud-based software capabilities for energy monitoring and control.Its MLPE products maximize performance, enable real-time energy monitoring, and provide code-required rapid shutdown at the module level.The company also develops and manufactures products, such as inverters and battery storage systems for the residential solar-plus-storage market.


The company was founded in 2007 and is based in Campbell, California.

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1.b. Last Insights on TYGO

Here is a 90-word analysis of the negative drivers behind Tigo Energy's recent stock performance: Tigo Energy's recent performance was negatively driven by a Q4 loss of $0.44 per share, surpassing estimates of a loss of $0.18. This compares to a loss of $0.25 per share a year ago. The company's high medical care ratios and escalating costs likely hurt its earnings. Despite efforts to expand its Predict+ platform and achieving milestones in its Green Glove program, the company's financial performance remains a concern. Upcoming investor conferences and product showcases may provide opportunities for the company to address these issues.

1.c. Company Highlights

2. Strong Q3 Results Driven by Revenue Growth and Improved Margin

The company's financial performance in Q3 2025 was impressive, with revenue increasing 115% to $30.6 million from $14.2 million in the prior year period. On a sequential basis, revenue grew 27.3%, driven by improved results in many countries across the EMEA and Americas regions. Gross profit for the quarter was $13.1 million or 42.7% of revenue, significantly higher than the 12.5% gross margin in the comparable year-ago period. The GAAP net loss for the quarter was $2.2 million, an improvement from the net loss of $13.1 million in the prior year period. Adjusted EBITDA increased 134.3% to $2.9 million compared to an adjusted EBITDA loss of $8.3 million in the prior year period. The actual EPS came out at '-0.03', beating estimates at '-0.05'.

Publication Date: Nov -20

📋 Highlights
  • Revenue Surge:: Q3 revenue jumped 115% to $30.6M YoY, with a 27.3% sequential increase driven by EMEA and Americas growth.
  • Gross Margin Expansion:: Gross profit surged to 42.7% of revenue ($13.1M) vs. 12.5% ($1.8M) in the prior year.
  • Operating Income Turnaround:: Operating income reached $0.6M (106.2% increase) from a $10.4M loss YoY, nearing profitability.
  • North America Repowering Momentum:: U.S. revenue growth accelerated via repowering (replacing aging systems), with inventory depletion and storage additions boosting efficiency.
  • 2025 Guidance Confirmed:: Full-year revenue projected at $102.5M–$104.5M, with Q4 adjusted EBITDA expected between $2M–$4M, reflecting stable >40% gross margins into 2026.

Regional Performance

The EMEA region continued to be the largest contributor to revenue, accounting for 70.5% of total revenues, followed by the Americas region, which contributed 26%. The APAC region accounted for the remaining 3.5%. The company has seen a significant increase in revenue from North America, driven by the repowering trend, with Zvi Alon stating that "we have seen a major increase in our revenue as we've just reported for North America, and we see a major continuation in the future."

Guidance and Outlook

The company expects revenue to be in the range of $29 million to $31 million for Q4 2025, with adjusted EBITDA ranging between $2 million and $4 million. For the full year 2025, revenue is anticipated to be between $102.5 million and $104.5 million. Analysts estimate revenue growth of 21.3% for next year. The company's guidance suggests a continued strong performance in the coming quarter.

Valuation

The stock is currently trading at a P/S Ratio of 1.25, EV/EBITDA of -5.18, and a P/B Ratio of 9.55. The ROE is -623.75%, and the ROIC is -41.52%. The negative earnings and high P/B ratio indicate that the market is pricing in significant growth expectations. With the company's strong Q3 results and guidance, it remains to be seen if the stock can continue to deliver on expectations.

3. NewsRoom

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Are Oils-Energy Stocks Lagging Tigo Energy, Inc. (TYGO) This Year?

Nov -06

Source: zacks.com

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Tigo Energy Modernizes Installer Experience with All-Digital Installation Resources

Nov -06

Source: businesswire.com

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Tigo Energy, Inc. (TYGO) Q3 2025 Earnings Call Transcript

Oct -28

Source: seekingalpha.com

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Tigo Energy, Inc. (TYGO) Reports Q3 Loss, Tops Revenue Estimates

Oct -28

Source: zacks.com

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Tigo Energy Reports Third Quarter 2025 Financial Results

Oct -28

Source: businesswire.com

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Tigo Energy Kicks off UK Installer ESS Training Tour, Doubling Down on Optimizer Success

Oct -15

Source: businesswire.com

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Tigo Energy Inc. to Report Third Quarter 2025 Financial Results on Tuesday, October 28, 2025 at 4:30 p.m. ET

Oct -14

Source: businesswire.com

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Tigo Energy to Participate in Multitude of Investor Conferences During the Fourth Quarter 2025

Oct -09

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.80%)

6. Segments

Solar Energy Optimization Solutions

Expected Growth: 12.8%

Growing adoption of solar energy, increasing demand for energy efficiency, and government incentives drive the growth of the solar energy optimization solutions market.

7. Detailed Products

TS4 Flex MLPE

A modular, flexible, and scalable MLPE (Module Level Power Electronics) solution for solar installations

TS4-A-2F

A 2-channel, 25A, 1000Vdc, UL-certified MLPE solution for solar installations

TS4-R

A retrofit MLPE solution for existing solar installations, enabling monitoring and optimization

TS4-S

A smart module solution for new solar installations, integrating MLPE and monitoring capabilities

Energy Intelligence (EI) Platform

A cloud-based monitoring and analytics platform for solar installations

8. Tigo Energy, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Tigo Energy, Inc. is medium due to the availability of alternative energy sources such as fossil fuels and nuclear power.

Bargaining Power Of Customers

The bargaining power of customers for Tigo Energy, Inc. is low due to the lack of negotiating power of individual customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Tigo Energy, Inc. is medium due to the presence of multiple suppliers of solar panels and other equipment.

Threat Of New Entrants

The threat of new entrants for Tigo Energy, Inc. is high due to the relatively low barriers to entry in the solar energy industry.

Intensity Of Rivalry

The intensity of rivalry for Tigo Energy, Inc. is high due to the presence of multiple competitors in the solar energy industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 34.27%
Debt Cost 7.23%
Equity Weight 65.73%
Equity Cost 7.23%
WACC 7.23%
Leverage 52.15%

11. Quality Control: Tigo Energy, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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SunPower

A-Score: 4.5/10

Value: 9.6

Growth: 0.9

Quality: 6.8

Yield: 0.0

Momentum: 10.0

Volatility: 0.0

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SPI Energy Co

A-Score: 3.8/10

Value: 9.0

Growth: 3.7

Quality: 2.9

Yield: 0.0

Momentum: 7.0

Volatility: 0.0

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Tigo Energy

A-Score: 3.7/10

Value: 6.1

Growth: 2.9

Quality: 2.4

Yield: 0.0

Momentum: 10.0

Volatility: 0.7

1-Year Total Return ->

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FTC Solar

A-Score: 3.6/10

Value: 7.0

Growth: 2.2

Quality: 2.8

Yield: 0.0

Momentum: 9.0

Volatility: 0.7

1-Year Total Return ->

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Beam

A-Score: 3.6/10

Value: 8.4

Growth: 6.8

Quality: 4.0

Yield: 0.0

Momentum: 1.5

Volatility: 1.0

1-Year Total Return ->

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Sunnova Energy

A-Score: 2.6/10

Value: 8.0

Growth: 4.4

Quality: 2.8

Yield: 0.0

Momentum: 0.5

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.49$

Current Price

1.49$

Potential

-0.00%

Expected Cash-Flows