FTC Solar Shares: Sustainable Recovery or Temporary Rally?

After an extended period of underperformance, FTC Solar is demonstrating remarkable operational improvements, posting both expanding revenues and positive margins. However, market experts remain divided on whether this signals a genuine turnaround for the solar energy company.

Financial Performance Shows Marked Improvement

FTC Solar’s third-quarter 2025 results revealed substantial progress across key metrics. Revenue surged to $26 million, representing a dramatic 156.8% increase compared to the same period last year and a 30.2% sequential improvement over the previous quarter. More significantly, the company returned to positive margin territory for the first time since late 2023.

The company achieved a GAAP margin of 6.1%, with its non-GAAP margin reaching an even stronger 7.7%. Despite these improvements, FTC Solar reported a net loss of $23.9 million. Nevertheless, the adjusted EBITDA figure of negative $4 million marked the company’s best performance since the third quarter of 2020.

Strategic Initiatives Strengthen Foundation

Beyond the quarterly numbers, FTC Solar has been implementing strategic measures to position itself for future growth. The company secured a $75 million financing facility to enhance liquidity while acquiring the remaining 55% stake in Alpha Steel for $2.7 million to expand its internal manufacturing capabilities.

Should investors sell immediately? Or is it worth buying FTC Solar?

Another positive development came in the form of a 1-gigawatt supply agreement with Levona Renewables, with the first project scheduled to commence in early 2026. Management expressed confidence in their forward trajectory, providing the following guidance:

• Q4 2025 Forecast: Revenue between $30-35 million, non-GAAP margins of 12-23.4%, and adjusted EBITDA ranging from negative $5.4 million to break-even
• 2026 Outlook: Expectations for consistently positive adjusted EBITDA throughout the year, which would be the first such achievement in several years

Divergent Views Among Market Observers

While company executives project optimism, financial analysts present conflicting assessments. According to MarketBeat data from November 28, 2025, the consensus rating among seven covering analysts remains “Hold,” with an average price target of $8.30—approximately 12% below the current trading price of $9.43.

Contrasting this cautious stance, Roth Capital upgraded FTC Solar from “Neutral” to “Buy” on November 17, 2025, simultaneously raising their price objective substantially from $5.50 to $15. The firm cited consistent leadership, four consecutive quarters of growth, and a robust fourth-quarter margin projection of 18.5% as key reasons for their upgraded assessment.

The Path Forward

The critical question remains whether FTC Solar can maintain its current momentum and convince skeptical market participants. The company’s technological transition to 2,000-volt systems and its strengthened balance sheet provide potential catalysts, but forthcoming quarterly results will ultimately determine if this recovery represents a sustainable transformation.