Financial Performance - Net sales for Q3 2025 increased by 79.7% to $1.6 billion compared to $0.9 billion in Q3 2024, driven by a 79.1% increase in module sales volume[116] - Gross profit margin decreased by 11.9 percentage points to 38.3% in Q3 2025 from 50.2% in Q3 2024, primarily due to higher logistics costs and a lower sales mix of advanced manufacturing modules[116] - Net sales for the three months ended September 30, 2025, increased by $707.2 million, or 79.7%, compared to the same period in 2024, primarily due to a 79.1% increase in the volume of modules sold[143] - Cost of sales for the three months ended September 30, 2025, increased by $541.8 million, or 122.5%, and represented 61.7% of net sales, up from 49.8% in the prior year[146] - Gross profit for the three months ended September 30, 2025, was $610.7 million, a 37.2% increase from $445.3 million in the same period in 2024, but gross profit margin decreased to 38.3% from 50.2%[149] - Net income for the three months ended September 30, 2025, was 28.6% of net sales, down from 35.3% in the same period in 2024[140] Production and Capacity - Total installed nameplate production capacity reached approximately 23.5 GW, with 3.6 GW produced and 5.3 GW sold in Q3 2025[116] - The company commenced production of Series 7 modules at a new facility in Louisiana, expanding its manufacturing footprint in the U.S.[116] - The company is expanding its domestic manufacturing capacity, which may require significant internal and external capital sources[139] - The company commenced operations at its fourth and fifth manufacturing facilities in the U.S. and expanded its existing facilities in Ohio due to increased domestic demand[183] Research and Development - The company is focusing on R&D for bifacial modules and the CuRe program, which aims to enhance module performance and energy yield[124] - Ongoing research into perovskite technology aims to significantly increase efficiency and reduce costs of PV solar modules[125] - Research and development expenses for the three months ended September 30, 2025, increased by $10.4 million, or 20.7%, compared to the same period in 2024, primarily due to higher depreciation and employee compensation[155] - Research and development expenses for the nine months ended September 30, 2025 increased due to higher depreciation, employee compensation, and facility charges, partially offset by a reduction in testing expenses[157] Market and Competitive Landscape - The solar industry is experiencing intense pricing competition, with average selling prices in the U.S. remaining stable due to rising demand for domestically manufactured modules[122] - The global solar market continues to expand, driven by decreasing production costs and government incentive programs[117] - The company is subject to a competitive landscape influenced by domestic and international trade policies, which could affect demand for its solar modules[132] - The Approved List of Models and Manufacturers in India may impact future investments in solar module manufacturing, with new requirements for domestic content[136] Government Incentives and Agreements - The company entered an agreement to sell up to $391.0 million in Section 45X tax credits, expecting cash proceeds of up to $372.8 million, with initial cash received of $123.5 million and $124.2 million in July and October 2025, respectively[116] - The Indian government allocated INR 11.8 billion ($133 million) to the company under the Production Linked Incentive scheme to promote high-efficiency solar module manufacturing[131] - The U.S. government’s Inflation Reduction Act (IRA) has significantly increased demand for domestically manufactured solar modules, although future benefits remain uncertain[131] - The company expects to qualify for a credit of approximately $0.17 per watt for each solar module produced in the U.S. and sold to third parties under Section 45X of the IRC, which may provide significant funding through 2032[182] Financial Position and Cash Flow - As of September 30, 2025, the company believes its cash and cash equivalents, along with marketable securities and cash flows from operations, will be sufficient to meet working capital and capital expenditure needs for at least the next 12 months[178] - As of September 30, 2025, the company had $2.0 billion in cash, cash equivalents, and marketable securities, an increase from $1.8 billion as of December 31, 2024, driven by higher cash receipts from module sales and trade receivables factoring[179] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $815.2 million, compared to $407.0 million for the same period in 2024[188] - The company generated net cash used in investing activities of $(577.9) million for the nine months ended September 30, 2025, a decrease from $(1.34) billion in 2024, primarily due to lower purchases of property, plant, and equipment[190] Costs and Expenses - Cost of sales for the nine months ended September 30, 2025, increased by $679.5 million, or 48.5%, compared to the same period in 2024, driven by higher production and logistics costs[147] - Selling, general and administrative expenses for the three months ended September 30, 2025, were $47.3 million, consistent with the same period in 2024, representing 3.0% of net sales[152] - Production start-up expenses for the three months ended September 30, 2025 were $36,734 thousand, a 37.0% increase from $26,822 thousand in 2024; for the nine months, expenses were $85,506 thousand, up 22.7% from $69,681 thousand[159] - Interest income for the three months ended September 30, 2025 was $23,308 thousand, a 3.2% increase from $22,580 thousand in 2024; however, for the nine months, it decreased by 27.1% to $54,273 thousand from $74,424 thousand[164] - Interest expense, net for the three months ended September 30, 2025 increased to $(14,121) thousand from $(9,008) thousand in 2024, a 56.8% rise; for the nine months, it increased to $(32,830) thousand from $(27,983) thousand, a 17.3% increase[167] - Other expense, net for the three months ended September 30, 2025 was $(6,034) thousand, a 96.5% increase from $(3,071) thousand in 2024; for the nine months, it was $(10,594) thousand, up 64.6% from $(6,435) thousand[169] - Income tax expense for the three months ended September 30, 2025 decreased to $(4,402) thousand from $(14,386) thousand in 2024, a 69.4% reduction; for the nine months, it decreased to $(22,225) thousand from $(61,064) thousand, a 63.6% decrease[171] Manufacturing and Warranty - The company has terminated master supply agreements with a major customer, resulting in recognized revenue of $61.0 million from termination payments[116] - Manufacturing issues affecting certain Series 7 modules may lead to increased warranty claims and impact future sales and financial results[138] - The company warrants that its solar modules will produce at least 98% of their labeled power output during the first year, with a degradation factor of 0.3% to 0.5% annually for up to 30 years[127] - The company’s CdTe modules use approximately 2% to 3% of the semiconductor material compared to conventional crystalline silicon solar modules, significantly impacting manufacturing costs[126] Future Outlook - The company has contracts for the future sale of 53.7 GW of solar modules with an aggregate transaction price of $16.4 billion, expected to be recognized as revenue through 2030[137] - The company expects potential revenue increases of up to $0.6 billion from future module technology improvements, primarily recognized in 2027 and 2028[137] - The company has committed $215.5 million in restricted marketable securities and $6.2 million in restricted cash for solar module collection and recycling obligations as of September 30, 2025[186] - The company has entered into long-term supply agreements for substrate glass, with potential termination payments totaling up to $319.9 million as of September 30, 2025[185]

EXHIBIT 99.1 News Release First Solar, Inc. Announces Third Quarter 2025 Financial Results and Updates Guidance TEMPE, Arizona, October 30, 2025 – First Solar, Inc. (Nasdaq: FSLR) (the "Company") today announced financial results for the third quarter ended September 30, 2025, and updated its 2025 guidance. Net sales for the third quarter were $1.6 billion, an increase of $0.5 billion from the prior quarter. The increase in net sales was primarily due to an increase in the volume of modules sold to third pa ...

Core Viewpoint - The current AI bull run is characterized as a boom rather than a bubble, with expectations for continued growth driven by major technology companies and AI capital expenditures [2][3]. Group 1: AI Market Insights - The AI bull run is showing no signs of slowing down, with notable Wall Street analysts optimistic about its continuation [1]. - Michael Kantrowitz from Piper Sandler emphasizes that the current economic conditions do not suggest an imminent bubble burst, as the economy remains strong and monetary policy is shifting towards easier conditions [3]. Group 2: Hedge Fund Investments - Hedge funds are increasingly investing in specific stocks, with a strategy that has outperformed the market significantly since May 2014, returning 427.7% [6]. - The iShares Biotechnology ETF (NASDAQ:IBB) is highlighted as a potential beneficiary of M&A activity in the biotech sector, driven by the need for big pharma to rebuild their pipelines [7]. - Ares Capital Corporation (NASDAQ:ARCC) is being bought despite credit market concerns, with expectations of a 10% yield and potential for a 20% total return in the coming year [9]. - IONQ Inc (NYSE:IONQ) is viewed as a long-term investment in quantum computing, but analysts caution that profitability may take several years to materialize [10]. - Vertiv Holdings Co (NYSE:VRT) is recognized for its strong position in the data center market, with significant growth potential and a backlog of $8.5 billion [12][13]. - First Solar Inc (NASDAQ:FSLR) is considered a cheap energy stock with potential benefits from increasing AI power demands and supportive U.S. energy policies [16][17]. - Vistra Corp (NYSE:VST) has seen rising stock prices due to expectations of increased power demand from AI, although concerns about valuation have been raised [17].

Core Insights - First Solar (FSLR) is set to release its third-quarter 2025 results on October 30, with an earnings surprise of 18.7% in the previous quarter [1] Factors Impacting Q3 Performance - The demand for solar energy is increasing globally, driven by rising energy consumption, decreasing installation costs, and greater awareness of sustainable energy, positively influencing First Solar's sales [2] - The company is expected to benefit from the Section 45X advanced manufacturing production tax credit, which will reduce production costs for U.S.-made solar components, with anticipated credits of $390-$425 million enhancing profitability and cash flow [3] - Tariffs are expected to modestly impact results by increasing import costs and slightly pressuring margins due to tariff-related expenses on imported goods [4] - A shift in sales mix towards the lower-priced Indian market, influenced by tariff constraints on Southeast Asia production, is likely to adversely affect earnings [5] - High production costs for U.S. modules and underutilization charges from lower production capacity in Malaysia and Vietnam are expected to impact overall performance [6] Q3 Earnings Expectations - First Solar anticipates earnings between $3.30 and $4.70 per share, with a Zacks Consensus Estimate of $4.31 per share, reflecting a year-over-year increase of 48.1% [7] - Revenue expectations are set at $1.53 billion, indicating a 72.4% year-over-year increase [7] - Module sales are projected to be between 5,000 and 6,000 megawatts (MW), with a Zacks Consensus Estimate of 5,185.97 MW compared to 2,956 MW in the same quarter last year [8] Earnings Prediction - The earnings model predicts a potential earnings beat for First Solar, supported by a positive Earnings ESP of +1.59% and a Zacks Rank of 3 (Hold) [9] Summary of Market Conditions - Strong global solar demand is likely to support product sales growth for First Solar, while Section 45X tax credits may lower costs and boost profitability [10] - However, tariffs, shifts in sales mix, and factory underutilization are expected to pressure margins [10]

Core Insights - Since the last analysis of First Solar, Inc. (NASDAQ: FSLR) in August, the stock has appreciated by 16% [1] Company Performance - The stock performance indicates a positive trend, reflecting investor confidence and market interest in First Solar [1] Analyst Position - The analyst holds a beneficial long position in FSLR shares, indicating a personal investment in the company's future performance [2] Market Sentiment - The strong buy rating issued previously suggests a bullish outlook on First Solar's stock, aligning with the recent price increase [1]

Core Viewpoint - First Solar, Inc. (NASDAQ: FSLR) has experienced a 16% increase in stock price since the last analysis in August, where a Strong Buy rating was issued [1]. Company Performance - The stock price of First Solar, Inc. has gained 16% since the last analysis [1].

Core Viewpoint - Wells Fargo and other firms have initiated coverage on various companies in the payments and technology sectors, highlighting both challenges and opportunities within these industries [1] Group 1: Payments Sector - Wells Fargo initiated coverage of PayPal (PYPL) with an Equal Weight rating and a price target of $74, noting the sector's struggles due to a shift towards AI-centric stocks and execution issues among companies [1] - Coverage was also initiated for Shift4 (FOUR) and Fiserv (FI) with Equal Weight ratings, indicating a cautious outlook on these companies [1] - Block (XYZ) received an Overweight rating and a price target of $91, with Wells Fargo identifying attractive opportunities despite the sector being challenging for investors [1] - Other companies in the payments sector, including Global Payments (GPN), FIS (FIS), Visa (V), MasterCard (MA), Affirm (AFRM), and Circle Internet (CRCL), were also given Overweight ratings [1] Group 2: Advertising and E-commerce - Deutsche Bank initiated coverage of AppLovin (APP) with a Buy rating and a price target of $705, emphasizing its strong advertising technology and expansion into e-commerce advertising, which is significantly larger than mobile game in-app advertising [1] Group 3: Renewable Energy - Needham initiated coverage of First Solar (FSLR) with a Buy rating and a price target of $286, viewing it as a leading option for investing in U.S. utility-scale solar due to favorable policies [1] Group 4: Technology and Infrastructure - Piper Sandler initiated coverage of Dell Technologies (DELL) with an Overweight rating and a price target of $172, predicting it will benefit from a strong enterprise data center refresh in 2026 and AI infrastructure developments [1] - HP Enterprise (HPE) was also covered by Piper Sandler but received a Neutral rating, indicating a less favorable outlook compared to Dell [1]

Core Viewpoint - Top Wall Street analysts have revised their outlook on several prominent companies, indicating potential shifts in investment sentiment and opportunities in the market [1] Company Analysis - Analysts are considering buying Visa stock, suggesting a positive outlook for the company [1]

Core Insights - First Solar's stock has increased nearly 35% year-to-date, outperforming the S&P 500, driven by policy support, investor enthusiasm, and clean energy momentum [2][3] Group 1: Company Performance - First Solar benefits from the U.S. clean energy initiative, which includes tax incentives and domestic manufacturing subsidies [3] - The company is expanding its capacity in the U.S., reducing dependency on imported solar panels [3] - First Solar utilizes cadmium telluride thin-film modules and an innovative CURE process, enhancing its competitive edge [3] - The company reported $4.3 billion in revenue over the past twelve months, reflecting a 19% year-over-year growth, and generated approximately $1.4 billion in operating income with a 32% margin [12] Group 2: Market Risks - The stock is currently priced for perfection, with high expectations that could lead to significant downturns if results fall short [3][5] - First Solar's revenue is heavily reliant on U.S. projects, making it vulnerable to changes in government incentives and tariffs [9] - The company faces execution challenges in its expansion efforts, which require substantial capital investment [10] - Valuation concerns arise as the stock trades at 6.2x sales and 20x earnings, presuming consistent growth [10] - Weak cash flow conversion, with an operating cash flow margin of only 8%, indicates lower cash efficiency compared to the S&P 500 average of 20% [10] - Market sentiment can shift rapidly, impacting clean-energy stocks like First Solar, especially during risk-averse periods [10] Group 3: Historical Context - In 2022, First Solar's stock fell 49% during a market downturn, highlighting its volatility compared to the S&P 500's 25% decline [7][8] - Historical patterns suggest a potential downside risk for First Solar stock, with a possible correction to the $150–$160 range, indicating a 35%–40% decline [11]

Business Overview & Market Position - First Solar is benefiting from policy support, analyst upgrades, and strong business fundamentals [1] - The company is a prime beneficiary of the Inflation Reduction Act, which incentivizes clean energy investments [2] - First Solar's US production facilities are reportedly sold out through 2028, specializing in cadmium telluride thin-film solar modules [2] Financial Performance & Projections - First Solar's Q3 sales are expected to increase by 74% to over $1.5 billion, compared to $887.67 million in the prior year quarter [5] - Q3 earnings are projected to climb 46% to $4.24 per share, versus $2.91 in Q3 2024 [5] - Foreseeable expectations of high double-digit top and bottom-line growth in fiscal years 2025 and 2026 [6] Stock Performance & Valuation - First Solar stock (FSLR) has spiked 10% in October and is up nearly 40% year-to-date, recently hitting a 52-week peak of $248 [3] - The stock has outperformed broader indexes significantly, although it has trailed the Zach's Solar Industries gains of over 20% in the last month [4] - First Solar's PE valuation is considered reasonable at 16 times forward earnings [7][8] - Several analysts have recently upgraded their price targets for First Solar stock to over $260, with Citigroup having a street-high price target of $300, offering over 20% upside [9] Technical Analysis & Risks - First Solar's 50-day and 200-day SMA support levels are currently around $169 and $210 per share, respectively [7] - Zach's rank for First Solar is currently a number three hold, with EPS revisions being positive but dipping in the last week for fiscal years 2025 and 2026 [10] - The technical analysis of FSLR shows that the stock can be very volatile and influenced by trading indicators [11]