Company: FTCI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0000950170-25-047224
Chunk: 180

Company: FTC Solar, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1B
Chunk 180
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3, in response to current project activity levels and process efficiencies we have gained in the last few years due to our design-to-value and cost reduction efforts. Certain of our changes also reflect a shift of our employee base to more cost-effective markets with exceptional talent. Our gross profit may vary period-to-period due to changes in our headcount, ASP, product costs, product versus service mix, customer mix, geographical mix, shipping methods, warranty costs and seasonality.

Operating expenses

Operating expenses consist of research and development expenses, selling and marketing expenses and general and administrative expenses. Personnel-related costs are the most significant component of our operating expenses and include salaries, benefits, bonuses, commissions and stock-based compensation expenses. 

Our operating costs have been impacted by (i) changes in headcount as described above, (ii) our level of research activities to originate, develop and enhance our products, (iii) our sales and marketing efforts as we expand our outreach to existing customers and seek to identify new opportunities domestically and internationally, (iv) changes in our estimate of credit losses relating to certain specific customers, and (v) variations in legal and professional fees, compliance costs, insurance, facility costs and other costs associated with strategic changes in response to changing market conditions and other matters.

45

Results of Operations – 2024 Compared to 2023

    Year ended December 31,

    2024

    2023

    (in thousands, except percentages)
     
    Amounts

    Percentage of revenue

    Amounts

    Percentage of revenue

    Revenue:

    Product
     
    $
    37,520

    79.2
    %
     
    $
    101,872

    80.2
    %

    Service

    9,835

    20.8
    %

    25,130

    19.8
    %

    Total revenue

    47,355

    100.0
    %

    127,002

    100.0
    %

    Cost of revenue:

    Product

    48,185

    101.8
    %

    93,314

    73.5
    %

    Service

    11,764

    24.8
    %

    25,381

    20.0
    %

    Total cost of revenue

    59,949

    126.6
    %

    118,695