Company: FTCI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0000950170-25-047224
Chunk: 182

Company: FTC Solar, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1B
Chunk 182
---
 manufacturing activities, net of any incentives earned, freight and delivery, product warranty, remediation and personnel costs (salaries, bonuses, benefits, and stock-based compensation). Personnel costs in cost of revenue include both direct labor costs as well as costs attributable to any individuals whose activities relate to the procurement, installment, and delivery of the finished product and services. 

Gross profit may vary from period-to-period and is primarily affected by our ASP, product costs, product mix, customer mix, geographical mix, shipping method, logistics costs, warranty costs and potentially, seasonality.

    Year ended December 31,

    (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 (