Revenue of over $1.1 billion beat the API Ninjas estimate of $1.065 billion by 3.3% and was up 23% year-over-year; non-GAAP diluted EPS of $1.31 beat the $1.10 estimate by 19%.
Full-year 2027 guidance went up across every line: revenue to $4.2 billion-$4.45 billion, adjusted EBITDA to $890 million-$940 million, adjusted diluted EPS to $4.61-$4.87, and free cash flow from $450 million to over $500 million.
Record bookings of well over $1 billion lifted backlog to over $6 billion from over $5.5 billion, and non-tracker products reached approximately 22% of revenue from 14%, with energy storage contributing approximately $100 million of revenue and more than $20 million of adjusted EBITDA in its first quarter inside the company.
Profit grew at half the rate of revenue: adjusted EBITDA of approximately $250 million was up 12% against revenue up 23%, and the back half is guided to high-teens adjusted EBITDA margin against the 23% just delivered, on diesel, steel, freight and logistics inflation plus new-product ramp costs.
The one thing that matters: the raised full-year guide is back-end loaded. Q3 revenue is guided down sequentially and up only about 10% year-over-year, so $4.2 billion-$4.45 billion needs a record Q4 at high-teens adjusted EBITDA margin rather than the 23% just posted.
Guidance & KPIs
Item
New guidance
Prior guidance
FY2027 revenue
$4.2 billion-$4.45 billion
—
FY2027 adjusted EBITDA
$890 million-$940 million
—
FY2027 adjusted diluted EPS
$4.61-$4.87 per share
—
FY2027 free cash flow
over $500 million
$450 million
Q3 revenue
down sequentially from our record Q2, but up approximately 10% year-over-year
—
Second half adjusted EBITDA margin
high teens
—
Management commentary
Management framed the margin step-down as input costs rather than pricing or mix failure, citing diesel up roughly 80% year to date and over 15,000 U.S. truckers disqualified on English-language requirements, and said it assumes those costs stay elevated through the back half and revert only beyond fiscal 2027.
On project timing, management said the Q4 weighting follows customer delivery schedules, that permit delays on some projects are offset by others accelerating, and that nothing currently indicates a risk to Q4 execution.
On storage economics, the CFO said the acquisition model called for operating margins or EBITDA margins "in the mid-teens. So this is a bit higher", and flagged that the margin will move with application and customer mix.
New product lines were given hard numbers: a 1.1 gigawatt inverter framework agreement across five projects, the first Nextpower-branded power conversion system shipped in the quarter, over two gigawatts of firm PowerMerge orders, and a 100% pass rate in post-installation testing at the first commercial-scale site.
Fiscal 2028 margin and ramp detail was deferred to the November 16 capital markets day, so the call left the question of whether the back-half margin compression is temporary unanswered.
Quality of earnings
Growth outran profit, and the gap is cost, not accounting. Revenue up 23% year-over-year against adjusted EBITDA up 12% at a 23% margin, with management attributing the squeeze to diesel up roughly 80% year to date, steel, freight and logistics, plus the ramp of newly acquired product lines.
Cash backs the quarter. Adjusted free cash flow of approximately $135 million in the quarter and $240 million year to date funded acquisitions and buybacks, and the quarter ended with over $1 billion of cash and no debt.
Part of the growth is bought rather than organic, but the core is not carrying it alone. Non-tracker products went from 14% to approximately 22% of revenue, with approximately $100 million from energy storage in its first quarter in the numbers; management said backlog would still have exceeded $6 billion without the acquired storage book.
Gotchas & watch items
The newest acquisition was marked down before it closed: Zimmermann's consideration fell to EUR 230 million and became all-cash, and its expected contribution for the balance of the fiscal year was cut to approximately $100 million of revenue and $10 million of adjusted EBITDA after management reforecast its backlog and pipeline.
Storage is earning more than it was bought on: approximately $100 million of revenue and more than $20 million of adjusted EBITDA puts the unit above the mid-teens EBITDA margin model set out when the acquisition was announced, and it came largely from one tier 1 data-center hyperscaler customer.
The power conversion build-out is a known drag not yet in the run rate: approximately $40 million of capital expenditure over the next 12 months and approximately $50 million of P&L impact, primarily R&D and COGS, against first shipments by the end of next summer and over 10 gigawatts of capacity by the end of calendar 2027.
Backlog growth is better than the acquisition story suggests: backlog rose from over $5.5 billion to over $6 billion in a single quarter and would have cleared $6 billion without the storage business, while eBOS set a record with over $100 million of bookings.
Last quarter's watch items: what happened
No watch items on file from a prior quarter - this is the first tracked quarter for this company.
Next quarter: the 2-3 things that matter
Back-half revenue ramp holds with fiscal 2027 weighted to Q4 Baseline: Q3 revenue guided down sequentially from Q2's over $1.1 billion and up approximately 10% year-over-year; FY2027 revenue $4.2 billion-$4.45 billion Confirms: Q3 revenue up about 10% year-over-year or better and the full-year range held or raised Breaks: Q3 revenue below that pace, or the FY2027 range narrowed downward or withdrawn Check in: Q3 2027. Source: CFO remarks on second-half weighting and the raised fiscal 2027 outlook
Margin compression proves temporary rather than structural Baseline: 23% adjusted EBITDA margin in Q2; back half guided to high-20s adjusted gross margin and high-teens adjusted EBITDA margin Confirms: Q3 adjusted EBITDA margin at high teens or better with evidence of cost sharing passed to customers Breaks: Q3 adjusted EBITDA margin below the high teens, or the full-year low-20s EBITDA margin guide dropped Check in: Q3 2027. Source: CFO margin guidance and cost-inflation answers on the call
Energy storage holds above the mid-teens EBITDA margin it was acquired on Baseline: Approximately $100 million of revenue and more than $20 million of adjusted EBITDA in its first quarter in the numbers, largely from one hyperscaler customer Confirms: Storage revenue at or above approximately $100 million with EBITDA margin again above mid-teens, and a second named customer segment Breaks: Storage revenue falls materially or margin reverts to mid-teens or below on customer concentration Check in: Q3 2027. Source: CFO answer on storage revenue and EBITDA economics