Tigo Energy, Inc.

Good afternoon. Welcome to Tygo Energy's fiscal second quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 1-1 again. Joining us today from Tygo 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.

Thank you, Operator, and it's a pleasure to join you today from our corporate offices in Los Gatos, California, 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 expected business outlook, our ability to increase our revenues and achieve and maintain profitability, our overall long-term growth prospects, expectations regarding continued recovery in our industry, statements about demand for our products, our competitive position and market share, the impact of tariffs and other trade barriers, including U.S. restrictions on foreign produced power inverters, the anticipated impact of regulatory actions, including actions by the SEC and the European Union on demand for our products, our current and our future inventory levels, charges and reserves, and their impact on future financial results, inventory supply and its impact on customer shipments, statements about our revenue and adjusted EBITDA for the third fiscal quarter of 2026 and our revenue for the full fiscal year 2026, the expected timing of the market introduction and volume ramp of our SEC45X and ITC qualified optimized inverter solution, our ability to penetrate new markets and expand our market share, including expansion in international markets, and our continued expansion of and investments in our product portfolio and the timing thereof and our U.S. manufacturing strategy are all forward-looking and as such 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 10Q for the fiscal quarter ended June 30th, 2026, and other reports as we may file with the SEC from time to time. These risks and uncertainties could cause actual results to materially, to differ materially from those expressed on this call. Those 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 reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures in our press release furnished as an exhibit on our form 8K. The non-GAAP financial measures provided should not be considered as a substitute for or superior to measures of financial performance prepared in accordance with GAAP. Finally, I would like to remind everyone that this 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 Tygo's CEO, Zvi Alon. Zvi?

Thank you, Bill. To begin today's discussion, I will highlight key area of our recent financial operational performance before turning the call over to our CFO, Bill. He will discuss our second quarter financial results in more depth and provide our guidance for the third quarter and Revised Outlook for the full year of 2026. After that, I will share some closing remarks and then open the call for questions from our analysts. Second quarter revenue grew 5.6% year over year to $25.4 million, but came in below our expectations. While results were below our prior guidance and the variance was primarily driven by external timing factors and current market conditions. To put that in context, we grew overall revenue year-over-year in a quarter when residential solar contracted in many of the markets that we serve. In the U.S., Q2 residential volumes contracted to post the 25D in line with the Wood Mac annual expectation of 21% decline. And Italy and Czech residential installations both declined double digits, respectfully. In the first half, the residential installations in Germany, meanwhile, are recovering off a 21% decline in Q1 of 2026, according to the German Solar Industry Association. In the United States, sales were down 4% year-over-year following the expiration of the residential clean energy tax credit. In addition, our U.S. optimized inverter partner encountered operational delays that will shift the timeline of market introduction of our Section 45X and ITC-qualified optimized inverter solution, with volume shipments now expected to begin ramping up in the fourth quarter. While this timing shift will delay the near-term contribution, the FCC's recent decision to restrict future authorization of foreign-produced power inverters strengthens the strategic relationship of our U.S. manufacturing strategy and positions our Section 45 and ITC-qualified optimized inverter solutions to meet the growing demand for domestically produced solar products. In Europe, the market recovery continues at a more measured pace than anticipated. Similar to the US market, the European Union restriction on inverters from high-risk vendors in EU-funded projects is directing demand to its trusted vendors in countries where Tygo is already strong, including Czech Republic and Poland. We believe Tygo is one of the few companies in the solar industry positioned to benefit from both of these policy actions. Encouragingly, Germany and Italy grew 6% and 20% year over year, respectfully. Weakness in both residential markets. We have delivered year-over-year growth in Spain, Australia, demonstrating the benefits of our diversified geographic footprint. In Germany, specifically the Cabinet approved changes in July that would fix the fitting tariff for new systems beginning in 2027. While systems connected to the grid by the end of this year keep their existing terms. We believe this should pull demand into the second half of 2026 and raise the value of the storage and self-consumption, which is what our MLP and storage products are designed to deliver. Within our product portfolio, Go ESS contributed $2.2 million or 8.6% of the quarterly revenue as the ramp of our new goal battery progress, more slowly than planned. In summary, we remain focused on advancing our product initiatives, expanding partner relationships, aligning our cost structure with near-term demand, and maintaining close control of working capital. These priorities are central to capitalizing on the broader international opportunities in driving more consistent growth and sustainable profitability. And with that, I will turn it over to Bill.