This is your clicker.
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Forward, back, and this is a pointer.
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Is it a pointer?
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Presentation for me?
Forward, back as well.
Forward is a green?
Got it, got it, got it.
This is the.
All right.
The sparkler is the pointer.
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Presentations are usually 30 minutes.
Yeah.
At the 20-minute mark.
Right.
I'll put up a five-minute slide.
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At the 24-minute mark, I'll put up a one-minute slide.
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That's about it.
Okay. Sounds good. Okay. It looks like I'll just be, I'll be speaking to you today.
Sounds good.
I'm Bill Roeschlein. Nice to meet you. What's your name?
Mina.
Mi-Mina?
Yeah.
Pleasure. Do you know anything about Tigo or the solar industry? You cover it a little bit?
Sorry?
You cover the solar industry? You follow it at all a little bit? All right. I'm happy to tell you a little bit more about it here if I can figure out the click. Let's see. Here we go. Big picture, we provide solutions for the solar industry that enhance the energy yield, enhance the safety, and lower the operating and maintenance costs for solar panel systems. Our footprint, as you can see in this picture here, you'll find our products, our MLPE products. It's called Module Level Power Electronics, which is this, I brought a sample here to illustrate, that goes behind the solar panel, that performs many of these functions, along with an inverter, which converts the energy from DC to AC into the home or business and battery. In addition, we have software that overlays and complements all of those products that we sell.
We're a leading provider of MLPE in the market. You'll see MLPE products behind most panels today in some shape, form, or another. We're also very geographically diverse. Most of our revenue comes outside of the United States, the largest percentage coming from EMEA, which is about 60%- 65%, which also makes sense in that the amount of installations that occur in the EU are about 5x more than they are in the U.S. We also have revenues from the rest of the world, notably in South America and Brazil, where we've started some selling operations, as well as Asia, including Australia and Singapore, Philippines, and some in China. Along the way, we've been able to increase our market share in this particular space.
We've also increased the amount of the products that we offer to include the recently introduced inverter and battery solutions for the residential market for the U.S. and Germany. Finally, we're currently an asset-light business model where we manufacture in Thailand or in China, depending on where it's being shipped, especially now with the tariff situation. Most recently, about a month ago, we announced a partnership with a Texas-based inverter manufacturer called EG4, and we will be manufacturing these optimizers that I'm holding in the United States so that we can take advantage of the 45X manufacturing tax credit and also be able to sell to customers who themselves want the investment tax credit, which is 30% investment tax credit plus another 10% if you have domestic content. We're really excited about that initiative that's going to be coming here in the near future.
We sell most of our products through the distribution channel, like a lot of companies in the solar space, not necessarily household names, but they are large companies in and of themselves. Our revenues last year were $54 million, but for the first half of this year through June, we've already on track to have $43 million. With our recent guide of $30 million for the third quarter, you can kind of do the math and you can see how we've been able to grow pretty substantially this year. Up 90% year- over- year, cash of $28 million. Again, these are all June numbers. We will have our call next week. Inventory is around $19 million, long-term debt of $50 million, and with our sales split, as I mentioned, most of it coming outside of the United States. Brief timeline of Tigo .
We were founded in 2007, a long time passed until we launched the TS, or what we call the TS4 MLPE device in 2015. Us and SolarEdge were the two companies that came out with optimization technology, which I'll explain a little bit later here. We chose after coming out with the product to partner with another inverter company in Germany called SMA. That partnership was about three years. We dissolved the partnership, went out on our own, began to offer additional products. As I mentioned, the battery and inverter came out a couple of years ago, and since the end of, really the end of COVID, we've experienced some phenomenal growth. In 2022, we grew more than 80%. Even in 2023, we grew about 80%.
We listed on the Nasdaq in May of 2023, and then the last couple of years, we've continued to roll out product extensions to our base products to enhance the performance of those products. You just want to look at the market in general. The first part of the decade for MLPE optimizers was, in general, about 14% CAGR growth there. We did have a dip as an industry in 2024, went down 44%. Much of that was due to the end of COVID. If you recall, during the COVID times, manufacturing was pretty tight. A lot of companies were on allocation. As we were growing, customers were asking, we had to put customers on allocation.
If you can think of it like, if you need 10 units, we told you you could only get five, and then what ends up happening is you ask for 20 in order to get 10. That sort of just snowballed throughout the whole industry. As supply chains loosened, you had this bullwhip effect. Suddenly, everybody had way too much inventory in the channel. If you look at basically the sales and stock price charts of us and all of our competitors, we all look pretty similar in that. It's as if the industry took a break from ordering in 2023 and 2024. Now we've worked our way through that. Inventories have rebalanced, and essentially, at least for us, we're shipping to what end demand is. The industry has bounced back. You can see quite nicely there.
Analysts' estimates for the rest of the decade call for high teens growth within the MLPE optimizer segment. Within that segment, we've continued to grow our market share, owing to our technology, our reliability, our value proposition, etc . The residential storage market below, another really large market that we've recently entered, a very small player in it, but it's also a very big industry, and it continues to grow in the solar market. Driven by a few things, the cost of solar continues to decline. On an unsubsidized basis, solar is the lowest cost form of electric energy out there, much faster to deploy than other alternatives. Now, of course, you're seeing that electrification trend. You're seeing data centers. Increasing needs for energy in the future, and solar is a big component of that. Currently, about 85% of our business is the MLPE optimizer hardware product.
We have about the other 10% coming from inverters and battery solutions, and the other 5% coming from software solutions. We don't make them, we don't make the module, and, you know, obviously, we don't make the grid. Here's just a pictorial of the MLPE in action. I'm holding in my hand. It literally just clips in right under the solar panel. We have more than 10 million of these already out there in the field today. There are three specific features that you can choose from, and we have them marked with different product SKUs that way. They work with panels up to 800 W, and you don't really even see 800 W yet, but we continue to lead the industry with the specifications. We're certified to work with more than 1,000 different inverters out there in the market. There are a lot of inverter players today.
What we do is we enable them to offer an optimized inverter solution to the market. A little bit about what optimization is. Here's an example. Optimization is the ability when you have most panels are stringed up with one electrical line. When you have that, you have different performances in the panels themselves. Unless you have optimization, you're going to be limited to the worst performing panel. Here, as an example, on the upper right, you can see these panels are in shade. If you don't have any optimization occurring, you'll be limited to the performance of those shaded panels. If you have a 10 kW system, you might only be performing at 5 kW. It's a big, big, big drawback, and you're not really realizing the potential of your solar panel system when you don't have optimization in it.
The other feature here that is unique to us is that we offer it, our MLPE allows for monitoring at a panel level. This is important for companies that have lots of panels, don't want to have to physically inspect all the panels, and they want to understand the performance at a more granular level. Here's an example of a commercial facility that uses the monitoring feature of our MLPE. Finally, the third component of our solution is rapid safety shutdown. Here's an example of a deployment we have that was done on water, for instance. Rapid shutdown is a specification in many counties, jurisdictions, and countries. It's not everywhere in the world, but it's becoming more and more commonplace because if you think about it, if you need to get on the roof, for instance, you have to find a safe way to shut down the panels.
The sun continues to shine on the panels, and the panels, the PV will continue to generate electricity unless you can find a way to be able to shut that off. That's what that function does. Here's our lineup of our hardware products here, comprising optimization, the inverter, battery, and transfer switch, again for the residential market, currently. Here's a little pictorial to give you a little bit better idea of the kind of the granular level detail of the monitoring capability. This is what you would be able to see if you were using the app for monitoring. Finally, we have, we acquired a company a few years ago, and call it Predict+. It's a software system that we sell to utilities. What this does is allows utilities to be able to predict supply and demand for their own company.
Demand coming from the meters from their customers, and then supply coming from the various sources of energy that they generate, whether it's solar, wind, turbine, etc. Factors in the weather conditions, and a whole variety of other variables in order to offer prediction capabilities. The utilities will use this to be able to understand when they need to generate more power. Conversely, utilities will also use this to sell power and arbitrage power and sell it back to the grid if they don't need it. It's an Israeli company that we bought. We have a pretty dominant share in Israel, and we're currently expanding that solution to the European and American markets. If you're really in the weeds and you're an installer, you want to know why you want to use a Tigo product. There's a lot of reasons, but I'm summarizing it here.
One is the selective optimization. Selective optimization is unique to Tigo . It means that we don't always have to have it working, which has a few features. One, it makes it more energy efficient because every time you're optimizing, you're using energy. Second, it has less BOM cost within the unit itself. We're able to offer it at a better value proposition. It also has a lower duty cycle. We offer a 25-year warranty on it, and our reliability is very high, very low failure rate. These are differentiations that we have compared to our competitors out there. You can also selectively deploy it, which means you don't have to put it on every panel. You can deploy it on the panels that need it. It's compatible, as I mentioned, with more than 1,000 other inverters it's been tested with.
We use an open architecture and are constantly certifying new inverters every day. It's all backed by patented patents and know-how that we developed over the past 20 years, especially in the early days from the 2007 to the 2015 timeframe that I showed earlier. In terms of our market performance, just to reiterate, we've grown substantially coming out of COVID. We grew 86% in 2022. We're almost another 80% in 2023. We hit a high watermark that year. Despite the downturn in the second half of that year, we did $145 million. As I mentioned, the market was difficult for the industry in 2024. It took a dip. We've now rebounded and have guided up 85%+ for the year. Looking to do $100 million- $105 million this year, up substantially from where we were before.
A lot of that has dropped to the margins and the bottom line. Revenues have increased along the way sequentially here. Just about almost a year ago, we were doing $17 million in the quarter. We guided most recently to $30 million at the midpoint. Margins during 2024 were negative as we took a write-down on some of the battery inventory that we hadn't obviously had an imbalance. We didn't predict that the market would turn so quickly, and we were stuck with more inventory than we really wanted at that time. Gross margins have improved since that time. In 2025, you can see the last quarter was 44.7%. When the downturn hit, we cut expenses. We set OpEx at a certain level where we could still innovate and invest in products, but we didn't want to cut to the bone, so to speak.
It's now paid off in the sense that we've been able to hold operating expenses flat at a certain level and grow the top line and let the EBITDA flip positive. We've been cash positive since Q1. We were EBITDA positive last quarter. This quarter, we're guiding higher EBITDA and net operating profit, net operating profitability at the higher end. Just to summarize, diverse array of customers, given we sell within the distribution channel. We have one 12% customer. Everybody else is under 10%. Geographically diversified, and we continue to even expand in additional markets. Brazil, Australia, and the U.K., for instance, are new subsidiaries that we formed over the last year or so. That sums it up for Tigo . I'm happy to talk about any questions you might have that I might have missed. Thank you for your time.
It's still getting me to say it, but I see that there are a lot of additional gaps that costs. (Inaudible) Can you communicate to the communication by issue the except profit?
On a GAAP net income?
(Inaudible) Y eah.
Yeah. The last slide has us about EBITDA guidance of $2 million- $4 million, and the difference between that and getting to profitability is basically a stock option, stock comp expense. That's another $2 million. Generally speaking, we're guiding $30 million at the midpoint right now. I think we do mid-$30 million and higher. We're going to be in that GAAP net income level.
(Inaudible) G ot it.
I haven't provided guidance beyond, but you know, you can kind of see the trajectory that we're on, and it's been a pretty good trajectory. Analysts, there's analysts out there that I believe are going to have some of that in their model next year or the following. There is a $50 million note that's due in the beginning of January, and it is 5%, so there is some interest expense there for that. Some of it is also amortization of the debt discount that was inherent in the call option. It's a little bit complicated, but it's a non-cash interest expense portion there too.
(Inaudible) Got it.
Our target model is 40% on the gross margin and 20%-25% on the EBITDA margin. We hit a high watermark before the downturn at $69 million in the quarter and 20% on the EBITDA margin. The model works well, and we're working our way back up there. Six quarters in a row of marching in the right direction there. I'm optimistic. Big picture is there's the market itself with growing solar, and then there's the use of MLPE and optimization within that market, and that's actually growing. There are some panels that don't use optimization. Within that, that's growing faster than the market. Within that, our market share is increasing within that MLPE segment. That's why you're seeing us outgrow the whole market, because there's a subsegment that's growing faster, and then we're taking market share within that subsegment. It's all adding up to faster growth than the industry average.