TYGO

Tigo is a module-level-power-electronics and storage maker mid-turnaround after a brutal 2024, when a solar-inventory destocking cycle collapsed revenue and drove a -$62.7M loss. FY2025 is a genuine recovery: revenue rebounded +91.7% YoY, gross profit jumped +1167% to $44.4M, the net loss narrowed to just -$1.88M (from -$62.7M), and operating cash flow swung to a positive $10.3M (+183%). Management also cleaned the balance sheet — long-term debt is now $0 (from a prior current portion of ~$10M), the convertible notes were extinguished in Dec 2025, and stockholders' equity rose +229% to $27.6M. On the numbers alone this is a company that has stopped bleeding and is inflecting toward breakeven, and against a $156M market cap the ~$104M revenue base is priced at roughly ~1.5x sales — undemanding for that growth (note the feed's '$104B revenue / 0.0 P/S / 0% margins' are unit-scaling artifacts; the coherent dollar figures — gross profit $44.4M, net loss -$1.88M, OCF $10.3M — tell the real story).

But the fragility is real and keeps this a hold, not a buy. Cash was only $7.67M at year-end (down 34.7%), thin for a hardware company, and the fixes are dilutive or one-time: a $15M registered direct offering of 5.0M shares closed Feb 2026 (on top of shares already up +22% in FY2025) and a $15–18M patent sale booked $15M — the patent monetization in particular flatters other income and is not recurring operating strength. The accumulated deficit sits at -$140M and ROE is still negative (-6.8%). The MD&A flags material tariff exposure: substantially all MLPE products (68.9% of U.S. revenue) are made in Thailand and GO ESS storage was shifting China→Vietnam, all now subject to U.S. tariffs, with sourcing alternatives hard to qualify — a direct threat to the margin recovery that is the entire thesis.