FTC Solar, Inc. Segments Disclosure
Note 23. Segment information and certain concentrations
Segment-related disclosures
We currently operate in one business segment, the manufacturing and servicing of solar tracker systems. We consider our segment results to be the same as our consolidated results and our segment accounting policies to be the same as those described in Note 2, "Summary of significant accounting policies".
We report our revenue based on the products and services we provide. Product revenue is derived from the sale of solar tracker systems and customized components for those systems, individual part sales for certain specific transactions and the sale of term-based software licenses. Service revenue includes revenue from shipping and handling services, engineering consulting and pile testing services, our subscription-based enterprise licensing model and maintenance and support services in connection with the term-based software licenses.
Our President and Chief Executive Officer is considered our chief operating decision maker ("CODM"). Our CODM uses consolidated net income (loss) to allocate resources, monitor budget versus actual results, evaluate our return on assets and manage our overall cost structure, as well as to assess our performance against our competitors.
Based on certain significant period cost information regularly provided to our CODM, following is a reconciliation including such costs to our consolidated net loss:
|
|
Year ended December 31, |
|
|||||
($ in thousands) |
|
2025 |
|
|
2024 |
|
||
Revenue: |
|
|
|
|
|
|
||
Product |
|
$ |
80,311 |
|
|
$ |
37,520 |
|
Service |
|
|
19,376 |
|
|
|
9,835 |
|
Total revenue |
|
|
99,687 |
|
|
|
47,355 |
|
Cost of revenue |
|
|
|
|
|
|
||
Product |
|
|
76,400 |
|
|
|
48,185 |
|
Service |
|
|
24,167 |
|
|
|
11,764 |
|
Total cost of revenue |
|
|
100,567 |
|
|
|
59,949 |
|
Gross loss |
|
|
(880 |
) |
|
|
(12,594 |
) |
Less: significant segment period costs: |
|
|
|
|
|
|
||
Stock-based compensation expense |
|
|
(3,671 |
) |
|
|
(4,510 |
) |
Personnel costs (excluding stock-based compensation) |
|
|
(15,455 |
) |
|
|
(17,663 |
) |
Credit loss provisions |
|
|
(1,352 |
) |
|
|
(2,072 |
) |
Other segment expenses(1) |
|
|
(14,065 |
) |
|
|
(15,991 |
) |
Interest expense |
|
|
(8,205 |
) |
|
|
(665 |
) |
Interest income |
|
|
23 |
|
|
|
346 |
|
Gain from disposal of investment in unconsolidated subsidiary |
|
|
3,204 |
|
|
|
8,807 |
|
Gain on sale of Atlas |
|
|
140 |
|
|
|
906 |
|
Loss from change in fair value of warrant liability |
|
|
(40,686 |
) |
|
|
(4,322 |
) |
Loss on extinguishment of debt |
|
|
(173 |
) |
|
|
— |
|
Bargain purchase gain |
|
|
377 |
|
|
|
— |
|
Other income, net |
|
|
140 |
|
|
|
468 |
|
Income (loss) from unconsolidated subsidiary |
|
|
1,551 |
|
|
|
(1,086 |
) |
Provision for income taxes |
|
|
(525 |
) |
|
|
(230 |
) |
Net loss |
|
$ |
(79,577 |
) |
|
$ |
(48,606 |
) |
Supplemental information: |
|
|
|
|
|
|
||
Indirect personnel costs (excluding stock-based compensation) in cost of revenue |
|
$ |
9,877 |
|
|
$ |
11,362 |
|
Total depreciation and amortization expense |
|
$ |
1,275 |
|
|
$ |
1,671 |
|
Capital expenditures |
|
$ |
1,129 |
|
|
$ |
1,645 |
|
Total assets at period end |
|
$ |
111,812 |
|
|
$ |
89,928 |
|
___________
(1) - |
Other segment expenses include research and development material and lab expenditures, professional services, marketing, employee travel, facility, insurance, depreciation and certain other period costs. |
Geographic concentrations
Third-party revenue was recognized by our subsidiaries established in the following locations:
|
|
Year ended December 31, |
|
|||||
(in thousands) |
|
2025 |
|
|
2024 |
|
||
United States |
|
$ |
98,238 |
|
|
$ |
42,253 |
|
Australia |
|
|
1,449 |
|
|
|
4,369 |
|
All other |
|
|
— |
|
|
|
733 |
|
Total third-party revenue |
|
$ |
99,687 |
|
|
$ |
47,355 |
|
Our long-lived assets, consisting of ROU assets and property and equipment, were in the following locations:
|
|
As of December 31, |
|
|||||
(in thousands) |
|
2025 |
|
|
2024 |
|
||
United States |
|
$ |
4,085 |
|
|
$ |
3,047 |
|
Australia |
|
|
5 |
|
|
|
48 |
|
India |
|
|
672 |
|
|
|
261 |
|
All other |
|
|
14 |
|
|
|
10 |
|
Total long-lived assets |
|
$ |
4,776 |
|
|
$ |
3,366 |
|
Cash and cash equivalents concentration
At December 31, 2025, approximately 93% of our cash and cash equivalents were in financial institutions located in the United States. Certain of our cash equivalents include deposits in money market funds that invest primarily in short-term securities issued or guaranteed by the U.S. government or its agencies or instrumentalities and contain no restrictions on immediate redemption. These deposits totaled $0.5 million at December 31, 2025 and $0.5 million at December 31, 2024.
Customer concentration
During the year ended December 31, 2025, four customers accounted for approximately 28%, 20%, 18% and 12%, respectively, of total revenue. During the year ended December 31, 2024, four customers accounted for approximately 39%, 11%, 11% and 11%, respectively, of total revenue.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 24, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.