Company: ARRY
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001820721-25-000060
Chunk: 64

Company: Array Technologies, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 64
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Interest Expense 

Consolidated interest expense for the three months ended March 31, 2025 decreased by $0.9 million, or 10%, compared to the three months ended March 31, 2024, primarily due to lower interest rates on our variable rate obligations.

Income Tax Expense (Benefit)

Consolidated income tax expense for the three months ended March 31, 2025 increased by $5.2 million, or 401%, compared to the three months ended March 31, 2024. The Company recorded income tax expense of $6.5 million and $1.3 million for the three months ended March 31, 2025 and 2024, respectively. 

Our effective tax rate was 28.1% and 37.6% for the three months ended March 31, 2025 and 2024, respectively. Tax expense for the three months ended March 31, 2025, was favorably impacted by lower profits in non-US jurisdictions and additional tax credits recorded during the period. Additionally, tax expense of $1.0 million related to equity-based compensation, was recorded discretely. Tax expense for the three months ended March 31, 2024 was unfavorably impacted by higher income reported in non-U.S. jurisdictions and tax expense of $0.4 million related to equity-based compensation recorded discretely.

36

Liquidity and Capital Resources

Cash Flows (in thousands)

Three Months Ended March 31,20252024Net cash (used in) provided by operating activities$(13,059)$47,502 Net cash used in investing activities(2,352)(2,386)Net cash used in financing activities(1,725)(4,575)Effect of exchange rate changes on cash and cash equivalents2,488 (2,001)Net change in cash and cash equivalents$(14,648)$38,540 

Historically, we have financed our operations with the proceeds from operating cash flows, capital contributions and short and long-term borrowings. Our ability to generate positive cash flow from operations is dependent on the strength of our gross margins as well as our ability to quickly turn our working capital. Based on our past performance and current expectations, we believe that operating cash flows will be sufficient to meet our liquidity needs in the next 12 months and beyond.

As of March 31, 2025, our cash balance was $348.3 million, of which $31.5 million was held