FTC Solar Operations Improve But Has Entered Technical Default And Is Financially Risky

FTC Solar remains a Hold as operational losses and financing risks persist despite strong revenue growth and margin improvements. 4Q25 saw revenues up 146% YoY and record non-GAAP gross margin of 23%, but operational losses continue and cash burn remains high. A technical default on a credit covenant triggered a sharp stock drop; management clarified this risk, but financing sustainability is still in question.