First Solar, Inc. (Nasdaq: FSLR) — research brief (BMC #068 on gallery, queue id 67)

Prepared 2026-10-11 (America/Chicago). Labels: FACT = stated by First Solar in its Form 10-K for fiscal 2025 (year ended 31 Dec 2025, filed 24 Feb 2026) or its Form 10-Q for the quarter ended 30 Jun 2026 (filed 30 Jul 2026). SECONDARY = none used. INFERENCE = ratios or sums computed by this project from company numbers.

Sources (accessed 2026-10-11)

Form 10-K FY2025: https://www.sec.gov/Archives/edgar/data/1274494/000127449426000021/fslr-20251231.htm
Form 10-Q for the quarter ended 30 Jun 2026: https://www.sec.gov/Archives/edgar/data/1274494/000127449426000170/fslr-20260630.htm
Company site: https://www.firstsolar.com
Logo: project monogram ("F" on a blue tile), not First Solar's official mark. Trademark of First Solar; identification only.

Teaching arc

Make thin-film panels in U.S. factories, sell them by the watt on multi-year contracts to a few large utility-scale buyers, and let a U.S. manufacturing tax credit (sold for cash) help carry the profit — while freight, tariffs and a Series 7 quality issue squeeze margin and cash.

Key numbers (FACT unless noted)

FY2025 (10-K)

Net sales $5,219,376K (2024 $4,206,289K, +24%; 2023 $3,318,602K), driven by a 24% increase in volume of modules sold to third parties. 17.5 GW sold, 16.1 GW produced.
Geography (customer country of invoicing): U.S. $4,994,679K (10-K says 96%), India $195,584K, France $6,303K, other $22,810K.
Cost of sales $3,099,037K (59.4% of net sales vs 55.8%). Gross profit $2,120,339K (40.6% vs 44.2%). SG&A $203,759K, R&D $233,421K, production start-up $86,295K, total opex $523,475K. Operating income $1,596,864K. Net income $1,528,229K (2024 $1,292,044K).
Cost of sales drivers: +$651.6M volume, +$216.5M production costs, +$173.1M logistics, +$130.7M warehousing, +$94.4M tariffs on international modules; partly offset by 45X.
Section 45X: about 17 cents/W for U.S.-made modules sold to third parties, booked as a reduction of cost of sales. 2025 credits sold: $701.9M face for $668.1M cash (Jun–Jul 2025); $699.7M face for $668.2M (Oct 2025; $95.2M of cash received in Q1 2026). Sum $1,401.6M face / $1,336.3M cash (INFERENCE).
Operating cash flow $2,057,105K (2024 $1,217,999K); capex $869,875K (2024 $1,526,076K). Cash $2,803,514K + marketable securities $51,849K = $2,855,363K. Total debt $498,572K.
Contracted backlog at Dec 31, 2025: 50.1 GW, $15.0B, through 2030; 23.2 GW with potential technology-improvement price adjustments (up to $0.6B). Excludes India contracts not fully secured. Deferred revenue $1,819,404K (current $1,014,386K + non-current $805,018K).
Customers: #1 11% and #2 10% of 2025 net sales; Item 1 says Silicon Ranch and NextEra Energy each accounted for 10%+ of modules business net sales.
BP Solar / Lightsource: master supply agreements terminated in 2025; $384.6M termination payments triggered; $61.0M recognized as revenue; suit filed Sep 2025 in New York.
Series 7: manufacturing issues in some 2023–2024 modules (premature power loss); $50M specific warranty liability at Dec 31, 2025; remaining losses estimated $35M–$75M. Product warranty liability table: $79,408K at year-end.
Facilities: Ohio (Perrysburg, Lake Township), Alabama (Trinity), Louisiana (Iberia Parish), Kulim (Malaysia), Ho Chi Minh City (Vietnam), Tamil Nadu (India); Gaffney, South Carolina under construction (2H 2026). ~7,900 associates. Long-lived assets $5,897,573K, U.S. $4,392,571K.
R&D: perovskite development line, CuRe copper-replacement program, records 23.1% cell and 19.9% module aperture efficiency. Patent suit vs JinkoSolar filed Feb 25, 2025 (Delaware).

H1 / Q2 2026 (10-Q)

Q2 net sales $1,056,193K vs $1,097,170K (−3.7%); H1 $2,100,433K vs $1,941,738K (+8%; +16.8% module volume). Q2: 4.3 GW produced, 3.7 GW sold.
Q2 gross margin 57.3% (45.6%) incl. $88.6M net benefit from expected IEEPA tariff refunds less amounts payable to customers; H1 gross profit $1,091,135K (51.9%). Operating income Q2 $450,386K, H1 $795,689K. Net income Q2 $422,569K, H1 $769,188K (H1 2025 $551,403K).
H1 operating cash flow −$359,767K (H1 2025 −$458,405K); capex $279,849K; change in government grants receivable −$649,315K in operating cash flow.
Cash $1,688,279K + marketable securities $38,685K = $1,726,964K (INFERENCE). Total debt $37,635K; India Credit Facility paid off in May 2026 ($328.2M principal + $5.5M interest).
Backlog at Jun 30, 2026: 45.1 GW, $13.6B. Deferred revenue $1,698,860K.

Caveats

About $0.30 per watt (net sales / GW sold, and backlog price / volume) is INFERENCE; net sales include non-module items.
The "credits sold" totals are face amounts of 2025-generated credits; they are not the same measure as the cost-of-sales reduction recognized in the period, so no share-of-profit figure is claimed.
Q2 2026 gross margin includes tariff-refund effects; not a run rate. No guidance figures were taken.

# First Solar, Inc. (Nasdaq: FSLR) — research brief (BMC #068 on gallery, queue id 67) Prepared 2026-10-11 (America/Chicago). Labels: **FACT** = stated by First Solar in its Form 10-K for fiscal 2025 (year ended 31 Dec 2025, filed 24 Feb 2026) or its Form 10-Q for the quarter ended 30 Jun 2026 (filed 30 Jul 2026). **SECONDARY** = none used. **INFERENCE** = ratios or sums computed by this project from company numbers. ## Sources (accessed 2026-10-11) - Form 10-K FY2025: https://www.sec.gov/Archives/edgar/data/1274494/000127449426000021/fslr-20251231.htm - Form 10-Q for the quarter ended 30 Jun 2026: https://www.sec.gov/Archives/edgar/data/1274494/000127449426000170/fslr-20260630.htm - Company site: https://www.firstsolar.com - Logo: project monogram ("F" on a blue tile), **not** First Solar's official mark. Trademark of First Solar; identification only. ## Teaching arc **Make thin-film panels in U.S. factories, sell them by the watt on multi-year contracts to a few large utility-scale buyers, and let a U.S. manufacturing tax credit (sold for cash) help carry the profit — while freight, tariffs and a Series 7 quality issue squeeze margin and cash.** ## Key numbers (FACT unless noted) **FY2025 (10-K)** - Net sales $5,219,376K (2024 $4,206,289K, +24%; 2023 $3,318,602K), driven by a 24% increase in volume of modules sold to third parties. 17.5 GW sold, 16.1 GW produced. - Geography (customer country of invoicing): U.S. $4,994,679K (10-K says 96%), India $195,584K, France $6,303K, other $22,810K. - Cost of sales $3,099,037K (59.4% of net sales vs 55.8%). Gross profit $2,120,339K (40.6% vs 44.2%). SG&A $203,759K, R&D $233,421K, production start-up $86,295K, total opex $523,475K. Operating income $1,596,864K. Net income $1,528,229K (2024 $1,292,044K). - Cost of sales drivers: +$651.6M volume, +$216.5M production costs, +$173.1M logistics, +$130.7M warehousing, +$94.4M tariffs on international modules; partly offset by 45X. - Section 45X: about 17 cents/W for U.S.-made modules sold to third parties, booked as a reduction of cost of sales. 2025 credits sold: $701.9M face for $668.1M cash (Jun–Jul 2025); $699.7M face for $668.2M (Oct 2025; $95.2M of cash received in Q1 2026). Sum $1,401.6M face / $1,336.3M cash (INFERENCE). - Operating cash flow $2,057,105K (2024 $1,217,999K); capex $869,875K (2024 $1,526,076K). Cash $2,803,514K + marketable securities $51,849K = $2,855,363K. Total debt $498,572K. - Contracted backlog at Dec 31, 2025: 50.1 GW, $15.0B, through 2030; 23.2 GW with potential technology-improvement price adjustments (up to $0.6B). Excludes India contracts not fully secured. Deferred revenue $1,819,404K (current $1,014,386K + non-current $805,018K). - Customers: #1 11% and #2 10% of 2025 net sales; Item 1 says Silicon Ranch and NextEra Energy each accounted for 10%+ of modules business net sales. - BP Solar / Lightsource: master supply agreements terminated in 2025; $384.6M termination payments triggered; $61.0M recognized as revenue; suit filed Sep 2025 in New York. - Series 7: manufacturing issues in some 2023–2024 modules (premature power loss); $50M specific warranty liability at Dec 31, 2025; remaining losses estimated $35M–$75M. Product warranty liability table: $79,408K at year-end. - Facilities: Ohio (Perrysburg, Lake Township), Alabama (Trinity), Louisiana (Iberia Parish), Kulim (Malaysia), Ho Chi Minh City (Vietnam), Tamil Nadu (India); Gaffney, South Carolina under construction (2H 2026). ~7,900 associates. Long-lived assets $5,897,573K, U.S. $4,392,571K. - R&D: perovskite development line, CuRe copper-replacement program, records 23.1% cell and 19.9% module aperture efficiency. Patent suit vs JinkoSolar filed Feb 25, 2025 (Delaware). **H1 / Q2 2026 (10-Q)** - Q2 net sales $1,056,193K vs $1,097,170K (−3.7%); H1 $2,100,433K vs $1,941,738K (+8%; +16.8% module volume). Q2: 4.3 GW produced, 3.7 GW sold. - Q2 gross margin 57.3% (45.6%) incl. $88.6M net benefit from expected IEEPA tariff refunds less amounts payable to customers; H1 gross profit $1,091,135K (51.9%). Operating income Q2 $450,386K, H1 $795,689K. Net income Q2 $422,569K, H1 $769,188K (H1 2025 $551,403K). - H1 operating cash flow −$359,767K (H1 2025 −$458,405K); capex $279,849K; change in government grants receivable −$649,315K in operating cash flow. - Cash $1,688,279K + marketable securities $38,685K = $1,726,964K (INFERENCE). Total debt $37,635K; India Credit Facility paid off in May 2026 ($328.2M principal + $5.5M interest). - Backlog at Jun 30, 2026: 45.1 GW, $13.6B. Deferred revenue $1,698,860K. ## Caveats - About $0.30 per watt (net sales / GW sold, and backlog price / volume) is INFERENCE; net sales include non-module items. - The "credits sold" totals are face amounts of 2025-generated credits; they are not the same measure as the cost-of-sales reduction recognized in the period, so no share-of-profit figure is claimed. - Q2 2026 gross margin includes tariff-refund effects; not a run rate. No guidance figures were taken.