Tigo Energy (TYGO) AI Stock Analysis

• Market Cap: $112.56M
• Dividend Yield: N/A
• Average Volume (3M): 669.37K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.83
• Revenue Growth: 97.41%
• EPS Growth: 11.83%
• Country: US
• Employees: 140
• Sector: Technology
• Sector Strength: 88
• Industry: Solar
• EPS (TTM): -0.03
• Shares Outstanding: 70,352,250
• 10 Day Avg. Volume: 591,574
• 30 Day Avg. Volume: 669,366
• PEG Ratio: >-0.01
• Price to Book (P/B): 7.08
• Price to Sales (P/S): 1.10
• P/FCF Ratio: -4.35
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 1.09
• Enterprise Value/Gross Profit: 5.39
• Enterprise Value/Ebitda: -3.69
• 1Y Price Target: $4.67
• Price Target Upside: 191.87% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: $1.50 ▼(-6.25% Downside)

Tigo Energy's overall score is driven by strong revenue growth and positive corporate events, but is weighed down by financial instability and valuation concerns. Technical indicators suggest bearish momentum, while strategic initiatives provide some optimism.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective sales strategies, enhancing Tigo Energy's market position in the solar industry.

Strategic Partnerships

The partnership with EG4 enhances Tigo's manufacturing capabilities and positions it to benefit from domestic content bonus tax credits, strengthening its competitive edge.

Debt Repayment

Repaying the promissory note strengthens Tigo's balance sheet, reduces financial risk, and improves its ability to focus on growth and operational efficiency.

Negative Factors

High Leverage

The high leverage poses financial risks, potentially limiting Tigo's ability to invest in growth opportunities and navigate economic fluctuations.

Profitability Challenges

Ongoing profitability challenges reflect operational inefficiencies and high costs, which may hinder Tigo's long-term financial sustainability.

Inventory Buildup

The significant inventory buildup could indicate potential demand overestimation, leading to cash flow constraints if sales do not meet expectations.

Tigo Energy Business Overview & Revenue Model

Company Description

Tigo Energy (TYGO) is a leading provider of smart module technology and advanced energy management solutions for the solar industry. The company focuses on enhancing the performance of photovoltaic (PV) systems through its innovative products, which include optimizers, monitoring solutions, and software that enable better energy yield, safety, and operational efficiency. Tigo Energy operates primarily within the renewable energy sector, targeting residential, commercial, and utility-scale solar markets with its energy management solutions.

How the Company Makes Money

Tigo Energy generates revenue through the sale of its smart module products and energy management solutions, primarily in the solar energy sector. Key revenue streams include the direct sales of its module optimizers, which enhance the efficiency of solar panels, and software solutions that provide real-time monitoring and analytics for solar energy systems. The company also benefits from partnerships with solar manufacturers and installers, integrating its technology into their offerings. Additionally, Tigo Energy may generate recurring revenue through subscription services for its monitoring software, which provides ongoing support and data analytics to users. Strategic partnerships with key players in the solar industry further enhance its market reach and contribute to its overall earnings.

Tigo Energy Financial Statement Overview

Summary

Tigo Energy shows strong revenue growth but struggles with profitability and financial stability. High leverage and negative equity are significant risks, though cash flow improvements offer some positive outlook.

Income Statement

Tigo Energy's income statement shows a mixed performance. The company has achieved a significant revenue growth rate of 22.01% in the TTM period, indicating strong top-line expansion. However, profitability remains a challenge, with negative net profit margins (-44.50%) and EBIT margins (-31.02%), reflecting ongoing operational inefficiencies and high costs relative to revenue. The gross profit margin of 20.31% suggests some ability to cover direct costs, but overall profitability needs improvement.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 4.15, indicating significant leverage and potential financial risk. The negative return on equity (-623.75%) highlights the company's inability to generate returns for shareholders. The equity ratio is not directly provided, but the high leverage and low equity position suggest financial instability.

Cash Flow

Cash flow analysis shows a positive trend with a free cash flow growth rate of 35.37%, indicating improved cash generation capabilities. The operating cash flow to net income ratio of 0.11 suggests limited cash flow relative to net losses, but the free cash flow to net income ratio of 0.93 indicates better cash flow management compared to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	90.78M	54.01M	145.23M	81.32M	43.64M	33.29M
Gross Profit	18.43M	-4.16M	51.31M	24.77M	12.64M	10.54M
EBITDA	-26.91M	-50.00M	8.38M	-4.91M	-1.74M	-91.00K
Net Income	-40.40M	-62.75M	-984.00K	-7.04M	-4.86M	-6.20M
Balance Sheet
Total Assets	107.84M	72.91M	127.78M	88.08M	23.96M	16.09M
Cash, Cash Equivalents and Short-Term Investments	40.28M	19.90M	31.21M	36.19M	6.18M	4.24M
Total Debt	50.04M	42.12M	34.15M	21.98M	9.41M	20.90M
Total Liabilities	95.78M	64.53M	64.95M	143.77M	73.85M	36.92M
Stockholders Equity	12.05M	8.38M	62.82M	-55.69M	-49.90M	-20.83M
Cash Flow
Free Cash Flow	9.00M	-13.64M	-39.79M	-17.62M	-5.31M	-274.74K
Operating Cash Flow	9.73M	-12.35M	-37.22M	-16.47M	-4.99M	-1.74K
Investing Cash Flow	-5.98M	19.76M	-30.91M	-1.60M	-323.00K	-273.00K
Financing Cash Flow	11.26M	-61.00K	34.82M	48.32M	7.30M	-469.00

Tigo Energy Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TYGO, the sentiment is Neutral. The current price of 1.6 is below the 20-day moving average (MA) of 1.63, below the 50-day MA of 1.98, and above the 200-day MA of 1.45, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 43.88 is Neutral, neither overbought nor oversold. The STOCH value of 59.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TYGO.

Tigo Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
FTCI	59 Neutral	$155.98M	-2.84	-664.69%	―	39.53%	-7.16%
SOL	56 Neutral	―	―	-2.90%	―	-29.98%	-13.97%
TYGO	49 Neutral	$112.56M	-2.44	-177.48%	―	97.41%	11.83%
ZEO	45 Neutral	$56.37M	-1.33	―	―	27.17%	57.71%
BEEM	40 Neutral	$31.21M	-0.92	-80.33%	―	-54.56%	-133.60%
SPWR	40 Underperform	$144.61M	10.57	―	―	657.27%	―

Tigo Energy Corporate Events

Tigo Energy Updates EG4 Supply Agreement, Revises Tax Credits

On December 18, 2025, Tigo Energy, Inc. amended and restated its manufacturing and supply agreement with EG4 Electronics LLC to clarify each party’s rights and obligations and to designate EG4, rather than Tigo, as the recipient of Section 45X production tax credits tied to the manufacture of “Optimized Inverters.” Under the revised arrangement, Tigo will supply its TS4-A-O optimizers and related cloud and access point components to EG4, which will use these components to manufacture, package and distribute the inverters, while any 45X tax credits earned by EG4 from this production will be claimed by EG4 and shared with Tigo through agreed payments, potentially improving the economics of their collaboration without materially altering other previously disclosed terms.

Tigo Energy Repays Promissory Note, Strengthens Balance Sheet

On December 17, 2025, Tigo Energy fully repaid its $50 million Convertible Promissory Note, originally issued on January 9, 2023, to L1 Energy Capital Management. By using cash reserves for the repayment ahead of the scheduled maturity in January 2026, the company eliminated potential equity overhang, streamlined its capital structure, and strengthened its balance sheet. This move positions Tigo Energy to focus on driving profitable growth in 2026, underscoring its commitment to financial stability and operational efficiency, benefiting stakeholders and reflecting its proactive approach to maintaining industry competitiveness.

Tigo Energy Sells Patents to Monetize IP Assets

On December 16, 2025, Tigo Energy entered into a patent purchase agreement with Tigo Energy Innovations LLC to sell certain patents for a total price between $17,750,000 and $17,950,000, with $15,000,000 paid upfront and the remaining conditional amount payable within four months. Additionally, Tigo retains a non-exclusive license to utilize the patents and may receive up to $5,000,000 in royalties, reflecting a strategic move to monetize intellectual property while maintaining operational capabilities.