Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
First Solar (FSLR) delivered strong FY2025 results with revenue surging 24.1% to $5.22B and net income rising 18.3% to $1.53B, though gross and operating margins compressed modestly as cost of revenue grew faster than sales.
Revenue
$5.22B
+24.09% YoY
EPS (Diluted)
$14.21
+18.22% YoY
Gross Margin
40.6%
-3.5 pts YoY
Operating Income
$1.6B
+14.52% YoY
Source: SEC XBRL
First Solar (FSLR) reported FY2025 revenue of $5.22B, up 24.1% year over year. Operating margin was 30.6%, down 2.6 points from 33.2% a year earlier. Operating cash flow was $2.06B, up 68.9% year over year.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 3.92 | 2.89 | Beat +35.5% |
| Mar 2026 | 3.22 | 2.93 | Beat +10.0% |
| Dec 2025 | 3.22 | 2.93 | Beat +10.0% |
| Sep 2025 | 4.24 | 4.34 | Miss -2.3% |
Compiled by AI from this SEC filing
Revenue increased 24.1% year-over-year from $4.21B to $5.22B in FY2025, reflecting strong demand for First Solar's thin-film solar modules and continued capacity ramp-up across its manufacturing footprint.
Source: 10-K Income Statement, Financial Data
Gross margin declined approximately 3.5 percentage points to 40.6% as cost of revenue grew 32.0% — outpacing revenue growth of 24.1% — indicating higher input costs, manufacturing ramp expenses, or product mix shifts pressuring profitability.
Source: 10-K Income Statement & Key Ratios, Financial Data
Operating cash flow surged 68.9% to $2.06B from $1.22B in the prior year, demonstrating strong cash generation capability and improved working capital management, with cash and equivalents rising 72.9% to $2.80B.
Source: 10-K Cash Flow Statement, Financial Data
Total liabilities fell 8.8% to $3.78B while stockholders' equity grew 19.6% to $9.54B, and long-term debt declined 24.3% to $282.6M, reflecting a materially stronger and less leveraged balance sheet.
Source: 10-K Balance Sheet, Financial Data
R&D expense rose 22.0% to $233.4M in FY2025, underscoring First Solar's commitment to advancing its proprietary cadmium telluride (CdTe) thin-film technology and maintaining its competitive differentiation in the solar module market.
Source: 10-K Income Statement, Financial Data
Compiled by AI from this SEC filing · 3 high, 2 medium, 0 low
Cost of revenue grew 32.0% versus revenue growth of 24.1% in FY2025, compressing gross margin by ~3.5 percentage points to 40.6%. If manufacturing costs — including raw materials, labor, and facility ramp-up expenses — continue to outpace revenue growth, profitability could deteriorate further.
Source: 10-K Income Statement & Key Ratios, Financial Data
First Solar's business is heavily dependent on its proprietary CdTe thin-film technology. Any technological disruption, efficiency breakthroughs by competitors using alternative technologies (e.g., perovskite or silicon-based modules), or supply chain issues specific to cadmium or tellurium could materially impact competitiveness and margins.
Source: 10-K, Financial Data (R&D Expense context)
First Solar's U.S.-centric manufacturing strategy is closely tied to domestic solar policy incentives, including the Inflation Reduction Act (IRA) manufacturing tax credits. Any reduction, modification, or repeal of these incentives could significantly reduce profitability and cash flows.
Source: 10-K, Financial Data (Revenue & Margin context)
Investing cash outflows of $765.2M in FY2025, while improved from $1.56B in the prior year, reflect ongoing significant capital deployment. Delays, cost overruns, or underperformance at new or expanded manufacturing facilities could impair returns on invested capital.
Source: 10-K Cash Flow Statement, Financial Data
As a module manufacturer selling to utility-scale project developers, First Solar may face risks related to customer concentration, project delays, or cancellations that could affect revenue recognition timing. With current liabilities rising 8.5% to $2.25B, deferred revenue and contractual obligations require careful execution.
Source: 10-K Balance Sheet, Financial Data
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 5.22 $B | 4.21 $B | +24.09% |
Cost of Revenue $B | 3.10 $B | 2.35 $B | +31.96% |
Gross Profit $B | 2.12 $B | 1.86 $B | +14.13% |
Operating Income $B | 1.60 $B | 1.39 $B | +14.52% |
Net Income $B | 1.53 $B | 1.29 $B | +18.28% |
EPS (Basic) $ | 14.25 $ | 12.07 $ | +18.06% |
EPS (Diluted) $ | 14.21 $ | 12.02 $ | +18.22% |
R&D Expense $M | 233.42 $M | 191.38 $M | +21.97% |
SG&A Expense $M | 203.76 $M | 188.26 $M | +8.23% |
Answers draw on this SEC filing and the data on this page
First Solar reported a 3.7% year-over-year revenue decline to $1.06B in Q2 FY2026 due to contract terminations, yet expanded net income 23.6% to $422.57M driven by IEEPA tariff refunds, Section 45X credits, and disciplined cost execution.
First Solar delivered a strong Q1 FY2026 with revenue up 23.6% YoY to $1.04B, net income surging 65.4% to $347M, and gross margin expanding to 46.6%, reflecting improved manufacturing efficiency and higher average selling prices.
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