Company: FTCI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0000950170-25-047224
Chunk: 86

Company: FTC Solar, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 86
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in thousands)
     
    2024

    2023

    $ Change

    % Change

    Product
     
    $
    48,185

    $
    93,314

    $
    (45,129
    )

    (48.4
    )%

    Service

    11,764

    25,381

    (13,617
    )

    (53.7
    )%

    Total cost of revenue
     
    $
    59,949

    $
    118,695

    $
    (58,746
    )

    (49.5
    )%

    Gross profit (loss)
     
    $
    (12,594
    )
     
    $
    8,307

    $
    (20,901
    )

    (251.6
    )%

    Gross profit (loss) percentage of revenue

    (26.6
    %)

    6.5
    %

The decrease in cost of revenue in 2024, as compared to 2023, was primarily driven by (i) a decrease of 69% in MW produced, (ii) a decrease of 50% in shipping and logistics activity, (iii) lower warehousing and stock-based compensation costs, and (iv) reduced overhead spending due to the impact of our cost control efforts. This was partially offset by higher remediation costs.

Our gross profit (loss) percentage of revenue for 2024 was a negative 26.6%, as compared to a positive 6.5% in 2023. 

We had negative gross margin for the year ended December 31, 2024 largely due to (i) our revenue for both products and services being insufficient to fully cover our indirect and warehousing costs (ii) higher remediation costs, and (iii) changes in project mix and cost of freight.

We had positive gross margin for the year ended December 31, 2023 as our production volumes were sufficient to cover our overhead costs. This more than offset slightly negative service margins due mainly to warehousing costs.

Research and development

Research and development expenses consist primarily of salaries, employee benefits, stock-based compensation and travel expenses related to our engineers performing research and development activities to originate, develop and enhance our products. Additional expenses include consulting charges, component purchases, testing services and other costs for performing research and development on our software products.

    Year ended December 31