Cover Page
Cover Page - shares | 9 Months Ended | |
Dec. 31, 2023 | Jan. 31, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-41617 | |
Entity Registrant Name | Nextracker Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 36-5047383 | |
Entity Address, Address Line One | 6200 Paseo Padre Parkway | |
Entity Address, City or Town | Fremont | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94555 | |
City Area Code | 510 | |
Local Phone Number | 270-2500 | |
Title of 12(b) Security | Class A Common Stock, $0.0001 par value | |
Trading Symbol | NXT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 136,542,423 | |
Entity Central Index Key | 0001852131 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-31 |
Unaudited condensed consolidate
Unaudited condensed consolidated balance sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Mar. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 367,818 | $ 130,008 |
Accounts receivable, net of allowance of $1,884 and $1,768, respectively | 365,271 | 271,159 |
Contract assets | 351,545 | 297,960 |
Inventories | 202,662 | 138,057 |
Total current assets | 1,418,960 | 872,265 |
Property and equipment, net | 8,369 | 7,255 |
Goodwill | 265,153 | 265,153 |
Other intangible assets, net | 1,633 | 1,321 |
Deferred tax assets and other assets | 401,010 | 273,686 |
Total assets | 2,095,125 | 1,419,680 |
Current liabilities: | ||
Accounts payable | 374,919 | 211,355 |
Accrued expenses | 70,178 | 59,770 |
Deferred revenue | 180,021 | 176,473 |
Total current liabilities | 759,437 | 507,426 |
Long-term debt | 144,762 | 147,147 |
TRA liability and other liabilities | 439,396 | 280,246 |
Total liabilities | 1,343,595 | 934,819 |
Commitments and contingencies (Note 9) | ||
Redeemable non-controlling interest | 3,868,543 | 3,560,628 |
Stockholders' deficit: | ||
Accumulated deficit | (3,271,953) | (3,075,782) |
Additional paid-in-capital | 154,926 | 0 |
Total stockholders' deficit | (3,117,013) | (3,075,767) |
Total liabilities, redeemable interests, and stockholders' deficit | 2,095,125 | 1,419,680 |
Related Party | ||
Current liabilities: | ||
Other current liabilities | 58,292 | 12,239 |
Nonrelated Party | ||
Current assets: | ||
Other current assets | 131,664 | 35,081 |
Current liabilities: | ||
Other current liabilities | 76,027 | 47,589 |
Class A common stock | ||
Stockholders' deficit: | ||
Class of common stock, price par value, shares authorized, issued and outstanding | 6 | 5 |
Class B common stock | ||
Stockholders' deficit: | ||
Class of common stock, price par value, shares authorized, issued and outstanding | $ 8 | $ 10 |
Unaudited condensed consolida_2
Unaudited condensed consolidated balance sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Mar. 31, 2023 |
Allowances for doubtful accounts | $ 1,884 | $ 1,768 |
Class A common stock | ||
Common stock, par or stated value per share (in USD per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 900,000,000 | 900,000,000 |
Common stock, shares, issued (in shares) | 62,109,804 | 45,886,065 |
Common stock, shares, outstanding (in shares) | 62,109,804 | 45,886,065 |
Class B common stock | ||
Common stock, par or stated value per share (in USD per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares, issued (in shares) | 82,572,960 | 98,204,522 |
Common stock, shares, outstanding (in shares) | 82,572,960 | 98,204,522 |
Unaudited condensed consolida_3
Unaudited condensed consolidated statements of operations and comprehensive income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |||
Income Statement [Abstract] | ||||||
Revenue | $ 710,426 | $ 513,370 | $ 1,763,326 | $ 1,383,742 | ||
Cost of sales | 500,701 | 431,111 | 1,290,747 | 1,187,081 | ||
Gross profit | 209,725 | 82,259 | 472,579 | 196,661 | ||
Selling, general and administrative expenses | 48,356 | 18,613 | 126,865 | 55,475 | ||
Research and development | 12,897 | 4,984 | 29,270 | 13,283 | ||
Operating income | 148,472 | 58,662 | 316,444 | 127,903 | ||
Interest and other income, net | (18,307) | (2,366) | (8,489) | (1,118) | ||
Income before income taxes | 166,779 | 61,028 | 324,933 | 129,021 | ||
Provision for income taxes | 38,818 | 18,442 | 51,918 | 35,218 | ||
Net income and comprehensive income | 127,961 | 42,586 | 273,015 | 93,803 | ||
Less: Net income attributable to Nextracker LLC prior to the reorganization transactions | 0 | 42,586 | 0 | 93,803 | ||
Less: Net income attributable to redeemable non-controlling interests | 86,565 | 0 | 171,937 | 0 | ||
Net income attributable to Nextracker Inc. | $ 41,396 | $ 0 | $ 101,078 | $ 0 | ||
Earnings per share attributable to the stockholders of Nextracker Inc. | ||||||
Basic (in USD per share) | [1] | $ 0.67 | $ 1.78 | |||
Diluted (in USD per share) | [1] | $ 0.87 | $ 1.86 | |||
Weighted-average shares used in computing per share amounts: | ||||||
Basic (in shares) | 62,108,835 | 56,789,399 | ||||
Diluted (in shares) | 147,344,370 | 147,160,053 | [1] | |||
[1] (1) Basic and diluted earnings per share is applicable only for the period following the initial public offering (“IPO”) and the related Transactions. See Note 5 for a description of the Transactions. |
Unaudited condensed consolida_4
Unaudited condensed consolidated statements of redeemable interest and stockholders' deficit / parent company equity (deficit) - USD ($) $ in Thousands | Total | Redeemable preferred units | Redeemable units Redeemable preferred units | Redeemable units Redeemable non-controlling interests | Accumulated net parent investment | Common stock Class A common stock | Common stock Class B common stock | Additional paid-in-capital | Accumulated deficit |
Redeemable Beginning Balance at Mar. 31, 2022 | $ 504,168 | $ 0 | |||||||
Beginning Balance at Mar. 31, 2022 | $ 0 | $ (3,035) | $ 0 | $ 0 | $ 0 | $ 0 | |||
Beginning Balance (in shares) at Mar. 31, 2022 | 0 | 0 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 0 | ||||||||
Net income and comprehensive income | 93,803 | 93,803 | |||||||
Stock-based compensation expense prior to reorganization | 2,790 | ||||||||
Paid-in-kind dividend for Series A redeemable preferred units | $ 18,750 | ||||||||
Paid-in-kind dividend for Series A redeemable preferred units | (18,750) | ||||||||
Net transfer to Parent | 21,450 | ||||||||
Redeemable Ending Balance at Dec. 31, 2022 | 522,918 | 0 | |||||||
Ending Balance at Dec. 31, 2022 | 0 | 96,258 | $ 0 | $ 0 | 0 | 0 | |||
Ending Balance (in shares) at Dec. 31, 2022 | 0 | 0 | |||||||
Redeemable Beginning Balance at Sep. 30, 2022 | 516,668 | 0 | |||||||
Beginning Balance at Sep. 30, 2022 | 0 | 86,400 | $ 0 | $ 0 | 0 | 0 | |||
Beginning Balance (in shares) at Sep. 30, 2022 | 0 | 0 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 0 | ||||||||
Net income and comprehensive income | 42,586 | 42,586 | |||||||
Stock-based compensation expense prior to reorganization | 940 | ||||||||
Paid-in-kind dividend for Series A redeemable preferred units | $ 6,250 | ||||||||
Paid-in-kind dividend for Series A redeemable preferred units | (6,250) | ||||||||
Net transfer to Parent | (27,418) | ||||||||
Redeemable Ending Balance at Dec. 31, 2022 | 522,918 | 0 | |||||||
Ending Balance at Dec. 31, 2022 | 0 | 96,258 | $ 0 | $ 0 | 0 | 0 | |||
Ending Balance (in shares) at Dec. 31, 2022 | 0 | 0 | |||||||
Redeemable Beginning Balance at Mar. 31, 2023 | 0 | 3,560,628 | |||||||
Beginning Balance at Mar. 31, 2023 | (3,075,767) | 0 | $ 5 | $ 10 | 0 | (3,075,782) | |||
Beginning Balance (in shares) at Mar. 31, 2023 | 45,886,065 | 98,204,522 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 101,078 | 171,937 | 101,078 | ||||||
Net income and comprehensive income | 273,015 | ||||||||
Stock-based compensation expense prior to reorganization | 39,682 | 39,894 | (212) | ||||||
Vesting of Nextracker Inc. RSU awards (in shares) | 592,177 | ||||||||
Issuance of Class A common stock sold in follow-on offering (in shares) | 15,631,562 | ||||||||
Issuance of Class A common stock sold in follow-on offering | 552,009 | $ 1 | 552,008 | ||||||
Use of Follow-on proceeds as consideration for Yuma's transfer of LLC common unit (in shares) | (15,631,562) | ||||||||
Use of Follow-on proceeds as consideration for Yuma's transfer of LLC common units | (552,009) | $ (2) | (552,007) | ||||||
Value adjustment of tax receivable agreement | 18,337 | 18,337 | |||||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | 622,292 | (622,292) | 622,292 | ||||||
Tax distribution | (64,365) | ||||||||
Redemption value adjustments | 822,635 | 822,635 | |||||||
Redemption value adjustment | (822,635) | (525,598) | (297,037) | ||||||
Redeemable Ending Balance at Dec. 31, 2023 | 0 | 3,868,543 | |||||||
Ending Balance at Dec. 31, 2023 | (3,117,013) | 0 | $ 6 | $ 8 | 154,926 | (3,271,953) | |||
Ending Balance (in shares) at Dec. 31, 2023 | 62,109,804 | 82,572,960 | |||||||
Redeemable Beginning Balance at Sep. 29, 2023 | 0 | 3,316,130 | |||||||
Beginning Balance at Sep. 29, 2023 | (2,641,021) | 0 | $ 6 | $ 8 | 672,102 | (3,313,137) | |||
Beginning Balance (in shares) at Sep. 29, 2023 | 62,096,475 | 82,572,960 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 41,396 | 86,565 | 41,396 | ||||||
Net income and comprehensive income | 127,961 | ||||||||
Stock-based compensation expense prior to reorganization | 12,825 | 13,037 | (212) | ||||||
Vesting of Nextracker Inc. RSU awards (in shares) | 13,329 | ||||||||
Tax distribution | (64,365) | ||||||||
Redemption value adjustments | 530,213 | ||||||||
Redemption value adjustment | (530,213) | (530,213) | |||||||
Redeemable Ending Balance at Dec. 31, 2023 | $ 0 | $ 3,868,543 | |||||||
Ending Balance at Dec. 31, 2023 | $ (3,117,013) | $ 0 | $ 6 | $ 8 | $ 154,926 | $ (3,271,953) | |||
Ending Balance (in shares) at Dec. 31, 2023 | 62,109,804 | 82,572,960 |
Unaudited condensed consolida_5
Unaudited condensed consolidated statements of cash flows - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 273,015 | $ 93,803 |
Depreciation and amortization | 3,138 | 3,594 |
Changes in working capital and other, net | 41,328 | (25,015) |
Net cash provided by operating activities | 317,481 | 72,382 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (3,850) | (2,653) |
Proceeds from the disposition of property and equipment | 0 | 24 |
Net cash used in investing activities | (3,850) | (2,629) |
Cash flows from financing activities: | ||
Repayments of bank borrowings and long-term debt | (2,813) | 0 |
Net proceeds from issuance of Class A shares | 552,009 | 0 |
Purchase of LLC common units from Yuma, Inc. | (552,009) | 0 |
Distribution to non-controlling interest holders | (64,365) | 0 |
Net transfers (to) from Parent | (8,335) | 1,258 |
Other financing activities | (308) | 0 |
Net cash provided by (used in) financing activities | (75,821) | 1,258 |
Effect of exchange rate on cash and cash equivalents | 0 | 0 |
Net increase in cash and cash equivalents | 237,810 | 71,011 |
Cash and cash equivalents beginning of period | 130,008 | 29,070 |
Cash and cash equivalents end of period | 367,818 | 100,081 |
Non-cash investing activity: | ||
Unpaid purchases of property and equipment | 1,480 | 422 |
Unpaid purchases of intangibles | 500 | 0 |
Non-cash financing activity: | ||
TRA revaluation | 18,337 | 0 |
Reclassification of redeemable non-controlling interest | 622,292 | 0 |
Capitalized offering costs | 0 | 2,534 |
Legal settlement paid by Parent | $ 0 | $ 20,428 |
Organization of Nextracker
Organization of Nextracker | 9 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization of Nextracker | Organization of Nextracker Nextracker Inc. and its subsidiaries (“Nextracker”, “we”, the “Company”) is a leading provider of intelligent, integrated solar tracker and software solutions used in utility-scale and distributed generation solar projects around the world. Nextracker’s products enable solar panels in utility-scale power plants to follow the sun’s movement across the sky and optimize plant performance. Nextracker has operations in the United States, Brazil, Mexico, Spain and other countries in Europe, India, Australia, the Middle East, and Africa. Prior to the completion of the Transactions, as described in Note 5 and the Initial Public Offering as described below, we operated as part of Flex Ltd. (“Flex” or “Parent”) and not as a standalone entity. On December 19, 2022, Nextracker Inc. was formed as a Delaware corporation which is a 100%-owned subsidiary of Yuma, Inc. ("Yuma"), a Delaware corporation and indirect wholly-owned subsidiary of Flex Ltd. Nextracker Inc. was formed for the purpose of completing the initial public offering of its Class A common stock (the “IPO”) and other related Transactions, in order to carry on the business of Nextracker LLC. The Initial Public Offering, the follow-on offering and the planned separation On February 8, 2023, the Company's registration statement on Form S-1 relating to its IPO was declared effective by the Securities and Exchange Commission (“SEC”) and the shares of its Class A common stock began trading on the Nasdaq Global Select Market on February 9, 2023. The IPO closed on February 13, 2023, pursuant to which the Company issued and sold 30,590,000 shares of its Class A common stock at a public offering price of $24.00 per share, giving effect to the exercise in full of the underwriters' option to purchase additional shares. The Company received net proceeds of $693.8 million, after deducting $40.4 million in underwriting discounts. The Company used all of the net proceeds from the IPO to purchase its member's interest in Nextracker LLC from Yuma (see Note 5). On July 3, 2023 the Company completed a follow-on offering of Class A common stock and issued 15,631,562 shares of Class A common stock and received net proceeds of $552.0 million. The price per share received was at a discount to the closing price of the Company’s stock as of June 30, 2023. The entire net proceeds were used by Nextracker to acquire 14,025,000 Nextracker LLC common units from Yuma, and 1,606,562 Nextracker LLC common units from TPG Rise Flash, L.P. (“TPG Rise”), an affiliate of TPG Inc. (“TPG”). Simultaneously, 14,025,000 and 1,606,562 shares of Class B shares were surrendered by Flex and TPG, respectively, and cancelled. A proportionate share of redeemable non-controlling interest was reclassified to permanent equity as a result. The Company held a member's interest of approximately 43% of Nextracker LLC as of December 31, 2023. On October 25, 2023, pursuant to the terms of that certain Agreement and Plan of Merger, dated as of February 7, 2023 (the “Merger Agreement”), by and among Flex, Nextracker, Yuma, and Yuma Acquisition Corp., a wholly-owned subsidiary of Nextracker ("Merger Sub"), Flex delivered to Nextracker the Merger Notice (as defined in the Merger Agreement) exercising Flex’s right to effect the transactions contemplated by the Merger Agreement . Concurrently, the Company filed a Registration Statement on Form S-4, including in a final prospectus filed with the SEC on October 27, 2023. |
Summary of accounting policies
Summary of accounting policies | 9 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of accounting policies | Summary of accounting policies Variable interest entities ("VIE") and consolidation Subsequent to the IPO, the Company’s sole material asset is its member’s interest in Nextracker LLC. In accordance with the Nextracker LLC Operating Agreement, the Company was named the managing member of Nextracker LLC. As a result, the Company has all management powers over the business and affairs of Nextracker LLC and to conduct, direct and exercise full control over the activities of Nextracker LLC. Class A common stock issued in the IPO does not hold majority voting rights but hold 100% of the economic interest in the Company, which results in Nextracker LLC being considered a VIE. Due to the Company’s power to control the activities most directly affecting the results of Nextracker LLC, the Company is considered the primary beneficiary of the VIE. Accordingly, beginning with the IPO, the Company consolidates the financial results of Nextracker LLC and its subsidiaries. Member’s interest in Nextracker LLC held by Yuma, Yuma Subsidiary, Inc., a Delaware corporation and wholly-owned subsidiary of Yuma ("Yuma Sub"), TPG Rise and the following affiliates of TPG: TPG Rise Climate Flash Cl BDH, L.P., TPG Rise Climate BDH, L.P. and The Rise Fund II BDH, L.P. (collectively, the “TPG Affiliates”) are presented on the condensed consolidated balance sheets as temporary equity under the caption “Redeemable non-controlling interests.” Basis of presentation The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the SEC for reporting interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements, and should be read in conjunction with the Company’s audited consolidated financial statements as of and for the fiscal year ended March 31, 2023, contained in the Company’s Annual Report on Form 10-K (the "Form 10-K"). In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary to present the Company's financial statements fairly have been included. Operating results for the three and nine -month periods ended December 31, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2024 or any future period. All intracompany transactions and accounts within Nextracker have been eliminated. Prior to the Transactions (as described in Note 5), Nextracker did not operate as a separate entity and stand-alone separate historical financial statements for Nextracker were not prepared. Accordingly, the unaudited condensed consolidated financial statements for the three and nine -month periods ended December 31, 2022 were derived from Flex’s historical accounting records and were presented on a carve-out basis and include allocations of certain costs from Flex incurred on Nextracker’s behalf. Such costs may not have represented the amounts that would have been incurred had Nextracker operated autonomously or independently from Flex during the period preceding the IPO. The condensed consolidated balance sheet as of March 31, 2023 was derived from the Company’s audited consolidated financial statements included in the Form 10-K. The first quarters for fiscal years 2024 and 2023 ended on June 30, 2023 (91 days), and July 1, 2022 (92 days), respectively. The second quarters for fiscal 2024 and 2023 ended on September 29, 2023 (91 days), and September 30, 2022 (91 days), respectively. The third quarters for fiscal years 2024 and 2023 ended on December 31 of each year, which are comprised of 92 days and 93 days, respectively. Use of estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Estimates are used in accounting for, among other things, impairment of goodwill, impairment of long-lived assets, allowance for doubtful accounts, reserve for excess or obsolete inventories, valuation of deferred tax assets, warranty reserves, contingencies, operation accruals, and fair values of awards granted under stock-based compensation plans. Due to the long-term economic effect of the COVID-19 pandemic and geopolitical conflicts (including the Russian invasion of Ukraine), there has been and will continue to be uncertainty and disruption in the global economy and financial markets. The Company has made estimates and assumptions taking into consideration certain possible impacts due to the COVID-19 pandemic, the Russian invasion of Ukraine and the Israel-Hamas conflict. These estimates may change, as new events occur, and additional information is obtained. Actual results may differ from previously estimated amounts, and such differences may be material to the condensed consolidated financial statements. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the period they occur. Management believes that these estimates and assumptions provide a reasonable basis for the fair presentation of the condensed consolidated financial statements. Product warranty Nextracker offers an assurance type warranty for its products against defects in design, materials and workmanship for a period ranging from five The following table summarizes the activity related to the estimated accrued warranty reserve for the nine-month periods ended December 31, 2023 and December 31, 2022: Nine-month periods ended (In thousands) December 31, 2023 December 31, 2022 Beginning balance $ 22,591 $ 10,485 Provision (release) for warranties issued (4,130) 9,974 Payments (1,253) (563) Ending balance $ 17,208 $ 19,896 Inventories Inventories are stated at the lower of cost (on a first-in, first-out basis) or net realizable value. Nextracker’s inventory primarily consists of finished goods to be used and to be sold to customers, including components procured to complete the tracker system projects. Other current assets Other current assets include short-term deposits and advances of $106.4 million and $29.3 million as of December 31, 2023 and March 31, 2023, respectively, primarily related to advance payments to certain vendors for procurement of inventory. In connection with the follow-on exchange a deferred tax asset has been booked reflecting Nextracker’s incremental outside basis difference in Nextracker LLC partnership of $155.4 million. Deferred tax assets and other assets Deferred tax assets and other assets includes the deferred tax assets of $384.5 million and $257.1 million as of December 31, 2023 and March 31, 2023, respectively, primarily related to the Company's investment in Nextracker LLC. Accrued expenses Accrued expenses include accruals primarily for freight and tariffs of $40.7 million and $44.6 million as of December 31, 2023 and March 31, 2023, respectively. In addition, it includes $29.4 million and $15.2 million of accrued payroll as of December 31, 2023 and March 31, 2023, respectively. TRA liability and other liabilities Tax Receivable Agreement ("TRA") liability and other liabilities primarily include the liability of $358.0 million and $230.3 million as of December 31, 2023 and March 31, 2023, respectively, related to the expected amount to be paid to Yuma, Yuma Sub, TPG and the TPG Affiliates pursuant to the TRA. Additionally, the balance includes the long-term portion of standard product warranty liabilities of $9.0 million and $11.8 million, respectively, and the long-term portion of deferred revenue of $68.8 million and $35.8 million as of December 31, 2023 and March 31, 2023, respectively. Redeemable non-controlling interests The balance of the redeemable non-controlling interests is reported at the greater of the initial carrying amount adjusted for the redeemable non-controlling interest’s share of earnings or losses and other comprehensive income or loss, or its estimated maximum redemption amount. The resulting changes in the estimated maximum redemption amount (increases or decreases) are recorded with corresponding adjustments against retained earnings or, in the absence of retained earnings, additional paid-in-capital. These interests are presented on the condensed consolidated balance sheets as temporary equity under the caption “Redeemable non-controlling interests.” The following table present a reconciliation of the change in redeemable non-controlling interests for the period presented: (in thousands) Nine-month period ended Balance at beginning of period $ 3,560,628 Net income attributable to redeemable non-controlling interests 171,937 Reclassification of redeemable non-controlling interest (622,292) Tax distribution (64,365) Redemption value adjustments 822,635 Balance at end of period $ 3,868,543 As a result of the follow-on transaction that occurred on July 3, 2023 and that drove a repurchase of redeemable non-controlling interest, as further described in Note 5, the Company reclassed a proportionate share of redeemable non-controlling interest to additional paid-in capital during the quarter ended September 29, 2023. As of December 31, 2023, the Company readjusted redeemable non-controlling interest to its new maximum redemption value which exceeded carrying value. Additionally, during the three- and nine-month periods ended December 31, 2023, the Company made tax distributions to its non-controlling interest holders as further described in Note 5. |
Revenue
Revenue | 9 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Based on ASC 606 provisions, the Company disaggregates its revenue from contracts with customers by those sales recorded over time and sales recorded at a point in time. The following table presents Nextracker’s revenue disaggregated based on timing of transfer—point in time and over time for the three- and nine-month periods ended December 31, 2023 and December 31, 2022: Three-month periods ended Nine-month periods ended (In thousands) December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Timing of Transfer Point in time $ 6,042 $ 7,618 $ 32,946 $ 40,771 Over time 704,384 505,752 1,730,380 1,342,971 Total revenue $ 710,426 $ 513,370 $ 1,763,326 $ 1,383,742 Contract balances The timing of revenue recognition, billings and cash collections results in contract assets and contract liabilities (deferred revenue) on the condensed consolidated balance sheets. Nextracker’s contract amounts are billed as work progresses in accordance with agreed-upon contractual terms, which generally coincide with the shipment of one or more phases of the project. When billing occurs subsequent to revenue recognition, a contract asset results. Contract assets of $351.5 million and $298.0 million as of December 31, 2023 and March 31, 2023, respectively, are presented in the condensed consolidated balance sheets, of which $147.6 million and $116.3 million, respectively, will be invoiced at the end of the projects as they represent funds withheld until the products are installed by a third party, arranged by the customer, and the project is declared operational. The remaining unbilled receivables will be invoiced throughout the project based on a set billing schedule such as milestones reached or completed tracker rows delivered. Contract assets increased $53.6 million from March 31, 2023 to December 31, 2023 due to fluctuations in the timing and volume of billings for the Company’s revenue recognized over time. During the nine-month periods ended December 31, 2023 and December 31, 2022 , Nextracker convert ed $141.8 million and $73.1 million of deferred revenue to revenue, respectively, which represented 67% and 68% , respectively, of the beginning period balance of deferred revenue. Remaining performance obligations As of December 31, 2023, Nextracker had $248.9 million of the transaction price allocated to the remaining performance obligations. The Company expects to recognize revenue on approximately 72% of these performance obligations in the next 12 months. The remaining long-term unperformed obligations primarily relate to extended warranty and deposits collected in advance on certain tracker projects. |
Goodwill and intangible assets
Goodwill and intangible assets | 9 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and intangible assets | Goodwill and intangible assets Goodwill Goodwill relates to the 2015 acquisition of Nextracker LLC and the 2016 acquisition of BrightBox by Flex on behalf of Nextracker LLC. As of December 31, 2023 and March 31, 2023, goodwill totaled $265.2 million, respectively and is not deductible for tax purposes. Other intangible assets The components of identifiable intangible assets are as follows: As of December 31, 2023 As of March 31, 2023 (In thousands) Gross Accumulated Net Gross Accumulated Net Trade name and other intangibles $ 3,000 $ (1,367) $ 1,633 $ 2,500 $ (1,179) $ 1,321 Total $ 3,000 $ (1,367) $ 1,633 $ 2,500 $ (1,179) $ 1,321 Total intangible asset amortization expense recognized in operations was immaterial for the periods presented. |
The Transactions
The Transactions | 9 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
The Transactions | The Transactions The Company and Nextracker LLC completed the following reorganization and other transactions in connection with the IPO (collectively, referred to as the “Transactions”): • Immediately prior to the completion of the IPO, Nextracker Inc. issued 128,794,522 shares of its Class B common stock to Yuma, Yuma Sub, and TPG Rise in exchange for cash consideration, which number of shares was equal to the number of common units of Nextracker LLC held directly or indirectly by Yuma, Yuma Sub and TPG Rise (not inclusive of those held by affiliated blocker corporations – see below) immediately following the Transactions and before giving effect to the IPO. • Immediately prior to the completion of the IPO and as permitted under and in accordance with the limited liability company agreement of Nextracker LLC in effect prior to the IPO (the “Prior LLC Agreement”), TPG Rise exercised its right to have certain blocker corporations affiliated with TPG Rise each merge with a separate direct, wholly-owned subsidiary of Nextracker Inc., with the blocker corporations surviving each such merger, in a transaction intended to qualify as a tax-free transaction. In connection with such blocker corporations’ mergers, the investors in each such blocker corporation received a number of shares of Nextracker Inc.’s Class A common stock with a value based on the Series A Preferred Units held by such blocker corporation for a total of 15,279,190 shares of Nextracker Inc.’s Class A common stock. • Immediately prior to the closing of the IPO, Nextracker LLC made a distribution in an aggregate amount of $175.0 million (the “Nextracker LLC Distribution”). With respect to such Nextracker LLC Distribution, $21.7 million was distributed to TPG Rise and $153.3 million to Yuma and Yuma Sub in accordance with their pro rata units of Nextracker LLC. The Nextracker LLC Distribution was financed, in part, with net proceeds from the $150.0 million term loan under the senior credit facility with a syndicate of banks (the "2023 Credit Agreement"). • Nextracker Inc. used all the net proceeds from the IPO ($693.8 million) as consideration for Yuma’s transfer to Nextracker Inc. of 30,590,000 Nextracker LLC common units at a price per unit equal to $22.68. • In connection with Yuma’s transfer to Nextracker Inc. of 30,590,000 Nextracker LLC common units, a corresponding number of shares of Nextracker Inc.’s Class B common stock held by Yuma were canceled. • In connection with the IPO, Nextracker Inc. repurchased all 100 shares of common stock previously issued to Yuma for an immaterial amount. On February 8, 2023, the Company amended and restated its certificate of incorporation to, among other things, authorize 900,000,000 shares of $0.0001 par value Class A common stock, 500,000,000 shares of $0.0001 par value Class B common stock, and 50,000,000 shares of par value $0.0001 preferred stock. On February 13, 2023, the members of Nextracker LLC entered into the Third Amended and Restated Limited Liability Company Agreement of Nextracker LLC to, among other things, effect the Transactions described above and to appoint Nextracker Inc. as the managing member of Nextracker LLC. Nextracker Inc. beneficially owns 62,109,804 Nextracker LLC common units after the completion of the IPO, the Transactions and the follow-on offering described below, and as of December 31, 2023 . The 2023 follow-on offering On July 3, 2023, Nextracker Inc. completed an underwritten offering of 18,150,000 shares of Class A common stock, of which 15,631,562 shares were offered and sold by the Company and 2,518,438 shares were offered and sold by certain of the Company’s stockholders for approximately $662.5 million in total gross proceeds, including the full exercise of the underwriters’ option to purchase additional shares of Class A common stock. The Company received net proceeds of $552.0 million. The entire net proceeds from the sale of shares by Nextracker were used by Nextracker to acquire 14,025,000 Nextracker LLC common units from Yuma, and 1,606,562 Nextracker LLC common units from TPG Rise. Simultaneously, 14,025,000 and 1,606,562 shares of Class B shares were surrendered by Flex and TPG, respectively, and cancelled. As a result of this follow-on offering ( r eferred to as the “Follow-on”), as of the closing date on July 3, 2023: • Approximately $1.8 million of offering costs were paid by Flex. • Immediately following the completion of the Follow-on, Flex (through Yuma and Yuma Sub), owned 74,432,619 shares of Class B common stock, representing approximately 51.45% of the total outstanding shares of the Company's outstanding common stock. • Additionally, TPG owned 8,140,341 shares of Class B common stock representing approximately 5.63% of the total outstanding shares of the Company's outstanding common stock. • Nextracker Inc. beneficially owned 62,053,870 LLC units, representing approximately 42.91% of the total units of Nextracker LLC. Exchange Agreement The Company, Nextracker LLC, Yuma, Yuma Sub and TPG entered into an exchange agreement (the “Exchange Agreement”) under which Yuma, Yuma Sub and TPG (or certain permitted transferees thereof) have the right, subject to the terms of the Exchange Agreement, to require Nextracker LLC to exchange Nextracker LLC common units (together with a corresponding number of shares of Class B common stock) for newly-issued shares of Class A common stock of Nextracker Inc. on a one-to-one basis, or, in the alternative, Nextracker Inc. may elect to exchange such Nextracker LLC common units (together with a corresponding number of shares of Nextracker Inc. Class B common stock) for cash equal to the product of (i) the number of Nextracker LLC common units (together with a corresponding number of shares of Class B common stock) being exchanged, (ii) the then-applicable exchange rate under the Exchange Agreement (which will initially be one and is subject to adjustment) and (iii) the Class A common stock value (based on the market price of our Class A common stock), subject to customary conversion rate adjustments for stock splits, stock dividends, reclassifications and other similar transactions; provided further, that in the event of an exchange request by an exchanging holder, Nextracker Inc. may at its option effect a direct exchange of shares of Class A common stock for Nextracker LLC common units and shares of Class B common stock in lieu of such exchange or make a cash payment to such exchanging holder, in each case pursuant to the same economic terms applicable to an exchange between the exchanging holder and Nextracker LLC. As Nextracker LLC interests are redeemable upon the occurrence of an event not solely within the control of the Company, such interests are presented in temporary equity on the condensed consolidated balance sheets. Flex's Separation Transactions On October 25, 2023, Flex announced its plan to effect a spin-off of all of its remaining interests in Nextracker pursuant to the Merger Agreement to be effected through the following transactions (together, the “Spin Transactions”): (i) a court-approved capital reduction of Flex to be carried out pursuant to Section 78G of the Singapore Companies Act (the “Capital Reduction”), (ii) a distribution of all the shares of the common stock, par value $0.001, of Yuma (the “Yuma Common Stock”), which is a wholly-owned subsidiary of Flex that, directly or indirectly, held all of Flex’s remaining interest in Nextracker, by way of a distribution in specie to Flex shareholders (the “Spin Distribution”), (iii) the merger of Yuma with and into Merger Sub, with Yuma surviving the merger as a wholly-owned subsidiary of Nextracker (the “Merger”) and pursuant to which each share of Yuma Common Stock outstanding immediately prior to the Merger would automatically convert into the right to receive a number of shares of our Class A common stock based on the Exchange Ratio (as defined in the Merger Agreement) (with cash payments to holders of shares of Yuma Common Stock in lieu of any fractional shares of our Class A common stock in accordance with the terms of the Merger Agreement), and (iv) the merger of Yuma with and into a wholly-owned limited liability company subsidiary of Nextracker, with such limited liability company surviving the merger as a wholly-owned subsidiary of Nextracker, undertaken shortly following the completion of the Merger. Flex and Nextracker closed the Spin Transactions on January 2, 2024 (See Note 12). Tax distribution During the nine-month period ending December 31, 2023, and pursuant to the LLC Agreement, Nextracker LLC declared and paid tax distributions to its non-controlling interest holders (Yuma, Yuma Sub and TPG) for a total of approximately $64.4 million. |
Stock-based compensation
Stock-based compensation | 9 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement, Additional Disclosure [Abstract] | |
Stock-based compensation | Stock-based compensation The Company adopted the First Amended and Restated 2022 Nextracker LLC Equity Incentive Plan in April 2022 (the “LLC Plan”), which provides for the issuance of options, unit appreciation rights, performance units, performance incentive units, restricted incentive units and other unit-based awards to employees, directors, and consultants of the Company. Additionally, in connection with the IPO in February 2023, the Company approved the Second Amended and Restated 2022 Nextracker Inc. Equity Incentive Plan (the “NI Plan,” and collectively with the LLC Plan, the “2022 Plan”) to reflect, among other things, that the underlying equity interests with respect to awards issued under the LLC Plan shall, in lieu of common units of Nextracker LLC, relate to Class A common stock of Nextracker for periods from and after the closing of the IPO. In addition to the 2022 Plan, certain executives, officers and employees of the Company also participate in the Flex 2017 equity incentive plan (the “Flex 2017 Plan”), and as such, stock-based compensation expense for the period presented also include expense recognized under the Flex 2017 Plan. The following table summarizes the Company’s stock-based compensation expense under the 2022 Plan and the Flex 2017 Plan: Three-month periods ended Nine-month periods ended (In thousands) December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Cost of sales $ 2,497 $ 350 $ 7,668 $ 1,105 Selling, general and administrative expenses 5,163 590 26,849 1,685 Research and development 5,377 — 5,377 — Total stock-based compensation expense $ 13,037 $ 940 $ 39,894 $ 2,790 Stock-based compensation expense includes an allocation of Flex’s corporate and shared functional employee expense of immaterial amounts for the three- and nine-month periods ended December 31, 2023 and December 31, 2022. These charges were recorded within selling, general and administrative expenses. The 2022 Nextracker equity incentive plan During the nine-month period ended December 31, 2023, the Company granted 1.2 million time-based unvested restricted share units ("RSU") awards to certain of its employees under the 2022 Plan. The vesting for these unvested RSU awards is contingent upon time-based vesting with continued service over a three-year period from the grant date, with a portion of the awards vesting at the end of each year. The weighted average fair value per share of the RSUs granted during the period was estimated to be $40.04 per award. In addition, the Company also granted 0.4 million performance-based vesting ("PSU") awards whereby vesting is generally contingent upon (i) time-based vesting with continued service through March 31, 2026, and (ii) the achievement of certain metrics specific to the Company, which could result in a range of 0 - 300% of such PSUs ultimately vesting. The weighted average fair value per share of the PSUs granted during the period was estimated to be $54.53 per award. The fair value of these PSU awards granted during the nine -month period ended December 31, 2023 was determined using Monte-Carlo simulation models which is a probabilistic approach for calculating the fair value of the awards. Further, the Company granted 0.5 million option awards that will cliff-vest on the third anniversary of the grant date, subject generally to continuous service through such vesting date. The exercise price for the shares underlying such option is equal to $40.47 per award, which corresponds to the Company's closing price per share as of the grant date of the awards. The fair value of these option a wards granted during the nine -month period ended December 31, 2023 was estimated using a Black-Scholes option pricing model . Additionally, during the nine-month period ended December 31, 2023, an immaterial number of awards were forfeited due to employee terminations. The total unrecognized compensation expense related to unvested awards under the 2022 Nextracker Plan as of December 31, 2023 was approximately $93.1 million, which is expected to be recognized over a weighted-average period of approximately 2.27 years. The Flex 2017 equity incentive plan (the "2017 Plan") All options have been fully expensed and none were outstanding and exercisable as of December 31, 2023. The executives, officers and employees of Flex, including Nextracker, were granted restricted share unit (“RSU”) awards under the 2017 Plan. RSU awards are rights to acquire a specified number of ordinary Flex shares for no cash consideration in exchange for continued service with Flex. RSU awards generally vest in installments over a two As of December 31, 2023, the total unrecognized compensation cost related to unvested RSU awards held by Nextracker employees was approximately $0.7 million under the 2017 Plan. These costs will be amortized generally on a straight-line basis over a weighted-average period of approximately one year. There were no options and no RSU awards granted under the 2017 Plan during the nine-month period ended December 31, 2023. |
Earnings per share
Earnings per share | 9 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per share | Earnings per share Basic earnings per share excludes dilution and is computed by dividing net income available to common stockholders of the Company for the three and nine -month periods ended December 31, 2023 by the weighted-average number of shares of Class A common stock outstanding during the same period. Diluted earnings per share reflects the potential dilution from stock-based compensation awards. The potential dilution from awards was computed using the treasury stock method based on the average fair market value of the Company’s Class A common stock for the period. Additionally, the potential dilutive impact of Class B common stock convertible into Class A was also considered in the calculation. The computation of earnings per share and weighted average shares outstanding of the Company’s common stock for the period is presented below: Three-month period ended December 31, 2023 Nine-month period ended December 31, 2023 (in thousands except share and per share amounts) Income Numerator Weighted average shares outstanding Denominator Per Share Income Numerator Weighted average shares outstanding Denominator Per Share Basic EPS Net income available to Nextracker Inc. common stockholders $ 41,396 62,108,835 $ 0.67 $ 101,078 56,789,399 $ 1.78 Effect of Dilutive impact Common stock equivalents from option awards (1) 984,173 965,050 Common stock equivalents from RSUs (2) 1,282,259 1,091,426 Common stock equivalents from PSUs (3) 396,143 416,180 Income attributable to non-controlling interests and common stock equivalent from Class B common stock $ 86,565 82,572,960 $ 171,937 87,897,998 Diluted EPS Net income and comprehensive income $ 127,961 147,344,370 $ 0.87 $ 273,015 147,160,053 $ 1.86 (1) During the three and nine-month periods ended December 31, 2023, approximately 0.5 million and 0.5 million of option awards, respectively, were excluded from the computation of diluted earnings per share due to their anti-dilutive impact on the weighted-average ordinary share equivalents. (2) During the three and nine-month periods ended December 31, 2023, no RSU awards were excluded from the computation of diluted earnings per share due to their anti-dilutive impact on the weighted-average ordinary share equivalents. (3) During the three and nine-month periods ended December 31, 2023, 0.4 million and 0.4 million of PSU awards, respectively, were excluded from the computation of diluted earnings per share due to their anti-dilutive impact on the weighted-average ordinary share equivalents. |
Relationship with parent and re
Relationship with parent and related parties | 9 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Relationship with parent and related parties | Relationship with parent and related parties Prior to the IPO, Nextracker was managed and operated in the normal course of business by Flex. Accordingly, certain shared costs were allocated to Nextracker and reflected as expenses in these condensed consolidated financial statements. Nextracker’s management and the management of Flex consider the expenses included and the allocation methodologies used to be reasonable and appropriate reflections of the historical Flex expenses attributable to Nextracker for purposes of the stand-alone financial statements up until the IPO. However, the expenses reflected in these condensed consolidated financial statements may not be indicative of the expenses that would have been incurred by Nextracker during the periods presented if Nextracker historically operated as a separate, stand-alone entity during such period, which expenses would have depended on a number of factors, including the chosen organizational structure, what functions were outsourced or performed by employees and strategic decisions made in areas such as information technology and infrastructure. In addition, the expenses reflected in the condensed consolidated financial statements for the period prior to the IPO may not be indicative of expenses that Nextracker will incur in the future. Allocation of corporate expenses The condensed consolidated financial statements for the period prior to the IPO include expense allocations for certain functions provided by Flex, including, but not limited to, general corporate expenses related to finance, legal, information technology, human resources, and stock-based compensation. These expenses have been allocated to Nextracker on the basis of direct usage when identifiable, with the remainder allocated on the basis of revenue, headcount or other measure. During the nine -month period ended December 31, 2022, Nextracker was allocated $4.2 million of general corporate expenses incurred by Flex. Of these expenses $2.8 million was included within selling, general and administrative expenses and $1.4 million was included in cost of sales in the condensed consolidated statements of operations and comprehensive income. An immaterial amount of general corporate expenses incurred by Flex was allocated to Nextracker during the nine -month period ended December 31, 2023. Risk management Flex carries insurance for property, casualty, product liability matters, auto liability, and workers’ compensation and maintain excess policies to provide additional limits. Prior to January 2024, Nextracker paid a premium to Flex in exchange for the coverage provided. In fiscal year 2023, and for the nine-month period ended December 31, 2023, the policies with significant premiums included the Marine Cargo/Goods in Transit and the multiple Errors and Omissions policies all through various insurance providers. Expenses related to coverage provided by Flex were reflected in the condensed consolidated statements of operations and comprehensive income and were immaterial for the nine-month periods ended December 31, 2023, and December 31, 2022, respectively. Cash management and financing Prior to the IPO, Nextracker participated in Flex’s centralized cash management programs. Disbursements were independently managed by Nextracker. All significant transactions between Nextracker and Flex that were not historically cash settled were reflected in the condensed consolidated statement of cash flows, for the period prior to the IPO, as net transfers to parent as these were deemed to be internal financing transactions. All intra-company accounts, profits and transactions have been eliminated. The following is a summary of material transactions reflected in the accumulated net parent investment during the three- and nine -month periods ended December 31, 2022: Three-month ended Nine-month ended (In thousands) December 31, 2022 December 31, 2022 Corporate allocations (excluding stock-based compensation expense) $ 65 $ 1,463 Transfer of operations to Nextracker (1) (51,527) (8,440) Net cash pooling activities (2) 10,154 (1,195) Income taxes 13,890 29,622 Net transfers from Parent $ (27,418) $ 21,450 (1) Primarily represents certain international operations where related income and/or losses are included in Nextracker’s condensed consolidated statements of operations. Cash was also collected by the international operations on behalf of Nextracker, for which Nextracker and Flex do not intend to settle in the future. For the period presented, the balance includes the legal settlement paid by Flex on August 4, 2022 as further disclosed in the Company Annual Report on Form 10-K for the fiscal year ended March 31, 2023. (2) Primarily represents financing activities for cash pooling and capital transfers. The cash balance reflected in the condensed consolidated balance sheets consist of the cash managed and controlled by Nextracker. Prior to the IPO when Nextracker was a controlled entity of Flex, Nextracker's U.S. operations participated in the Flex cash pooling management programs intra-quarter; all outstanding positions were settled or scheduled for settlement as of each quarter end. Cash pooling activities during the period prior to the IPO were reflected under net transfers from Parent in the condensed consolidated statements of redeemable interest and stockholders' deficit /parent company equity (deficit), and the condensed consolidated statements of cash flows. Subsequent to the IPO, Nextracker has the option to participate in the Flex cash pooling management programs. As of March 31, 2023, the Company had $8.3 million of cash pool payable outstanding to Flex, which was a component of Due to related parties on the condensed consolidated balance sheet. During the nine-month period ended December 31, 2023, the Company repaid such amounts to Flex, and no such cash pool payable is outstanding as of December 31, 2023. Due to related parties relates to balances resulting from transactions between Nextracker and Flex subsidiaries that have historically been cash settled. Nextracker purchased certain components and services from other Flex affiliates of $23.5 million and $14.1 million for the three-month periods ended December 31, 2023 and December 31, 2022 respectively. Nextracker purchased certain components and services from other Flex affiliates of $80.0 million and $43.0 million for the nine-month periods ended December 31, 2023, and December 31, 2022 respectively. Flex also administers on behalf of Nextracker payments to certain freight providers as well as payrolls to certain employees based in the U.S. Additionally, the Company and Flex entered into an umbrella agreement (as disclosed in the Company’s annual report on Form 10-K for the year ended March 31, 2023 ) that governs the terms, conditions and obligations of a strategic commercial relationship between Nextracker and Flex for the sale of Nextracker’s solar trackers in Brazil. As part of this arrangement, Flex acts as an agent for Nextracker, bills and collects on the Company’s behalf. Nextracker’s average due to related parties balance was $26.5 million and $54.6 million for the three-month periods ended December 31, 2023, and December 31, 2022, respectively. Nextracker had an average due from related parties balance of $7.8 million for the nine-month periods ended December 31, 2023, compared to an average due to related parties balance of $43.0 million for the nine-month period ended December 31, 2022. All related cash flow activities were classified within net cash provided by operating activities in the condensed consolidated statement of cash flows. |
Commitments and contingencies
Commitments and contingencies | 9 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies Litigation and other legal matters Nextracker has accrued for loss contingencies to the extent it believes that losses are probable and estimable. The amounts accrued are not material, but it is reasonably possible that actual losses could be in excess of Nextracker’s accrual. Any such excess loss could have a material adverse effect on Nextracker’s results of operations or cash flows for a particular period or on Nextracker’s financial condition. There were no additional accruals for loss contingencies during the three- and nine -month periods ended December 31, 2023. |
Income taxes
Income taxes | 9 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes The Company follows the guidance under ASC 740-270, "Interim Reporting", which requires a company to calculate the income tax associated with ordinary income using an estimated annual effective tax rate ("AETR"). At the end of each interim period, the Company applies the AETR to year-to-date (YTD) ordinary income (or loss) to arrive at the YTD income tax expense. The Company recorded the tax effect of discrete items in the quarter in which the discrete events occur. The following table presents income tax expense recorded by the Company along with the respective consolidated effective tax rates for each period presented. For the nine-month period ended December 31, 2023, the difference between the effective tax rate and the U.S. statutory corporate tax rate of 21% is primarily attributable to certain non-controlling interest in Nextracker LLC which is not taxable to Nextracker Inc. and its subsidiaries, partially offset by U.S. state and local income taxes and the jurisdictional mix of income between the U.S. and other operating jurisdictions. For the three-month period ended December 31, 2023, the difference is primarily attributable to return to provision adjustments incurred during the quarter. The effective tax rates for the three- and nine-month periods ended December 31, 2022 differ from the U.S. domestic statutory income tax rate of 21% primarily due to the U.S state and local income taxes coupled with the jurisdictional mix of income between the U.S. and other operating jurisdictions. Three-month periods ended Nine-month periods ended (In thousands) December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Income tax 38,818 18,442 51,918 35,218 Effective tax rates 23.3 % 30.2 % 16.0 % 27.3 % During the three- and nine-month periods ended December 31, 2023, t he Company recorded $12.9 million and $7.3 million, respectively, of other tax related income as a result of the reduction in its liability under the TRA due to a decrease in its forecasted estimated state effective tax rate. The amounts are reflected in the condensed consolidated statements of operations and comprehensive income within interest and other income, net. |
Segment reporting
Segment reporting | 9 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment reporting | Segment reporting Operating segments are defined as components of an enterprise for which separate financial information is available that is evaluated regularly by the Chief Operating Decision Maker (“CODM”), or a decision-making group, in deciding how to allocate resources and in assessing performance. Resource allocation decisions and Nextracker’s performance are assessed by its Chief Executive Officer, identified as the CODM. For all periods presented, Nextracker has one operating and reportable segment. The following table sets forth geographic information of revenue based on the locations to which the products are shipped: Three-month periods ended Nine-month periods ended (In thousands) December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Revenue: U.S. $ 555,790 $ 327,548 $ 1,208,288 $ 908,361 Rest of the World 154,636 185,822 555,038 475,381 Total $ 710,426 $ 513,370 $ 1,763,326 $ 1,383,742 The United States is the principal country of domicile. |
Subsequent events
Subsequent events | 9 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent events | Subsequent events On January 2, 2024, Flex closed the spin-off of all of its remaining interests in Nextracker to Flex shareholders. Prior to the spin-off, Flex held 100% of the shares of Yuma Common Stock, and Yuma held, directly and indirectly through Yuma Sub, (i) 74,432,619 shares of Nextracker’s Class B common stock, par value $0.0001 per share, representing approximately 51.48% of the total outstanding shares of Nextracker’s common stock and (ii) 74,432,619 of the common units of Nextracker LLC, representing approximately 51.48% of the economic interest in the business of Nextracker, based on the number of shares of Nextracker’s common stock outstanding as of December 29, 2023. In addition to the Spin Distribution, Flex and Nextracker consummated the Merger, with Yuma surviving the Merger as a wholly-owned subsidiary of Nextracker. As the Merger represents a business combination of entities under common control, the transaction will be accounted for in accordance with ASC 805-50, Business Combinations – Related Issues, and the assets and liabilities of Yuma will be recognized at their carrying value on the date of transfer. As Yuma’s principal asset is its investment in Nextracker, the primary accounting impact of the Merger for Nextracker will be an adjustment to the carrying value and classification of its noncontrolling interests and corresponding impact to permanent equity. As a result of the Merger, each share of Yuma Common Stock issued and outstanding as of immediately prior to the closing of the Merger was automatically converted into the right to receive a number of shares of Class A common stock of the Company, based on an Exchange Ratio (as defined below), with cash payments to holders of shares of Yuma Common Stock in lieu of any fractional shares of Class A common stock of the Company in accordance with the terms of the Merger Agreement. The “Exchange Ratio” is equal to the quotient of (i) 74,432,619, which is the number of shares of Class A common stock of Nextracker held by Yuma and Yuma Sub (assuming the exchange by Yuma and Yuma Sub of all Nextracker LLC common units, together with a corresponding number of shares of Class B common stock of the Company held by Yuma and Yuma Sub, for shares of Class A common stock of the Company) divided by (ii) the number of issued and outstanding shares of Yuma Common Stock immediately prior to the effective time of the Merger. On February 6, 2024, pursuant to the LLC Agreement, Nextracker LLC made pro rata tax distributions in an aggregate amount of $93.5 million to the common members of the LLC, including an aggregate of $47.8 million to Yuma Acquisition Sub LLC and Yuma Subsidiary, Inc. As of the date of the tax distribution, Yuma Acquisition Sub LLC and Yuma Subsidiary Inc. were wholly-owned subsidiaries of Nextracker Inc. On February 1, 2024, Flex sent a dispute notice to Nextracker Inc., saying that Flex is entitled to the distribution that was subsequently made to Yuma Acquisition Sub LLC and Yuma Subsidiary, Inc. and demanding payment of that amount to Flex. Nextracker Inc. is considering the validity of the dispute notice and it is too early to determine the likelihood that the Company will be required to make any such payments to Flex in the future. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||||
Net income | $ 41,396 | $ 0 | $ 101,078 | $ 0 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 9 Months Ended |
Dec. 31, 2023 shares | Dec. 31, 2023 shares | |
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | During the three months ended December 31, 2023, certain of our officers or directors listed below adopted or terminated trading arrangements for the purchase or sale of shares of our Class A common stock in amounts and prices determined in accordance with a formula set forth in each such plan: Name and Title Action Date Rule 10b5-1 (1) Non- Rule 10b5-1 (2) Aggregate Number of Securities/Total Dollar Value to be Purchased Aggregate Number of Securities/Total Dollar Value to be Sold Expiration Nicholas Marco Miller, COO Adoption December 8, 2023 X Up to 8,355 shares March 31, 2025 (1) Intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) (2) Not intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) | |
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Nicholas Marco Miller [Member] | ||
Trading Arrangements, by Individual | ||
Name | Nicholas Marco Miller | |
Title | COO | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | December 8, 2023 | |
Arrangement Duration | 479 days | |
Aggregate Available | 8,355 | 8,355 |
Summary of accounting policies
Summary of accounting policies (Policies) | 9 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | Basis of presentation The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the SEC for reporting interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements, and should be read in conjunction with the Company’s audited consolidated financial statements as of and for the fiscal year ended March 31, 2023, contained in the Company’s Annual Report on Form 10-K (the "Form 10-K"). In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary to present the Company's financial statements fairly have been included. Operating results for the three and nine -month periods ended December 31, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2024 or any future period. All intracompany transactions and accounts within Nextracker have been eliminated. Prior to the Transactions (as described in Note 5), Nextracker did not operate as a separate entity and stand-alone separate historical financial statements for Nextracker were not prepared. Accordingly, the unaudited condensed consolidated financial statements for the three and nine -month periods ended December 31, 2022 were derived from Flex’s historical accounting records and were presented on a carve-out basis and include allocations of certain costs from Flex incurred on Nextracker’s behalf. Such costs may not have represented the amounts that would have been incurred had Nextracker operated autonomously or independently from Flex during the period preceding the IPO. The condensed consolidated balance sheet as of March 31, 2023 was derived from the Company’s audited consolidated financial statements included in the Form 10-K. The first quarters for fiscal years 2024 and 2023 ended on June 30, 2023 (91 days), and July 1, 2022 (92 days), respectively. The second quarters for fiscal 2024 and 2023 ended on September 29, 2023 (91 days), and September 30, 2022 (91 days), respectively. The third quarters for fiscal years 2024 and 2023 ended on December 31 of each year, which are comprised of 92 days and 93 days, respectively. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Estimates are used in accounting for, among other things, impairment of goodwill, impairment of long-lived assets, allowance for doubtful accounts, reserve for excess or obsolete inventories, valuation of deferred tax assets, warranty reserves, contingencies, operation accruals, and fair values of awards granted under stock-based compensation plans. Due to the long-term economic effect of the COVID-19 pandemic and geopolitical conflicts (including the Russian invasion of Ukraine), there has been and will continue to be uncertainty and disruption in the global economy and financial markets. The Company has made estimates and assumptions taking into consideration certain possible impacts due to the COVID-19 pandemic, the Russian invasion of Ukraine and the Israel-Hamas conflict. These estimates may change, as new events occur, and additional information is obtained. Actual results may differ from previously estimated amounts, and such differences may be material to the condensed consolidated financial statements. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the period they occur. Management believes that these estimates and assumptions provide a reasonable basis for the fair presentation of the condensed consolidated financial statements. |
Product warranty | Product warranty Nextracker offers an assurance type warranty for its products against defects in design, materials and workmanship for a period ranging from five |
Inventories | Inventories Inventories are stated at the lower of cost (on a first-in, first-out basis) or net realizable value. Nextracker’s inventory primarily consists of finished goods to be used and to be sold to customers, including components procured to complete the tracker system projects. |
Redeemable non-controlling interests | Redeemable non-controlling interests The balance of the redeemable non-controlling interests is reported at the greater of the initial carrying amount adjusted for the redeemable non-controlling interest’s share of earnings or losses and other comprehensive income or loss, or its estimated maximum redemption amount. The resulting changes in the estimated maximum redemption amount (increases or decreases) are recorded with corresponding adjustments against retained earnings or, in the absence of retained earnings, additional paid-in-capital. These interests are presented on the condensed consolidated balance sheets as temporary equity under the caption “Redeemable non-controlling interests.” |
Summary of accounting policie_2
Summary of accounting policies (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Product Warranty | The following table summarizes the activity related to the estimated accrued warranty reserve for the nine-month periods ended December 31, 2023 and December 31, 2022: Nine-month periods ended (In thousands) December 31, 2023 December 31, 2022 Beginning balance $ 22,591 $ 10,485 Provision (release) for warranties issued (4,130) 9,974 Payments (1,253) (563) Ending balance $ 17,208 $ 19,896 |
Redeemable Noncontrolling Interest | The following table present a reconciliation of the change in redeemable non-controlling interests for the period presented: (in thousands) Nine-month period ended Balance at beginning of period $ 3,560,628 Net income attributable to redeemable non-controlling interests 171,937 Reclassification of redeemable non-controlling interest (622,292) Tax distribution (64,365) Redemption value adjustments 822,635 Balance at end of period $ 3,868,543 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Nextracker's Revenue Disaggregation | The following table presents Nextracker’s revenue disaggregated based on timing of transfer—point in time and over time for the three- and nine-month periods ended December 31, 2023 and December 31, 2022: Three-month periods ended Nine-month periods ended (In thousands) December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Timing of Transfer Point in time $ 6,042 $ 7,618 $ 32,946 $ 40,771 Over time 704,384 505,752 1,730,380 1,342,971 Total revenue $ 710,426 $ 513,370 $ 1,763,326 $ 1,383,742 |
Goodwill and intangible assets
Goodwill and intangible assets (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | The components of identifiable intangible assets are as follows: As of December 31, 2023 As of March 31, 2023 (In thousands) Gross Accumulated Net Gross Accumulated Net Trade name and other intangibles $ 3,000 $ (1,367) $ 1,633 $ 2,500 $ (1,179) $ 1,321 Total $ 3,000 $ (1,367) $ 1,633 $ 2,500 $ (1,179) $ 1,321 |
Stock-based compensation (Table
Stock-based compensation (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement, Additional Disclosure [Abstract] | |
Schedule of Employee Service Share Based Compensation Allocation of Recognized Period Costs | The following table summarizes the Company’s stock-based compensation expense under the 2022 Plan and the Flex 2017 Plan: Three-month periods ended Nine-month periods ended (In thousands) December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Cost of sales $ 2,497 $ 350 $ 7,668 $ 1,105 Selling, general and administrative expenses 5,163 590 26,849 1,685 Research and development 5,377 — 5,377 — Total stock-based compensation expense $ 13,037 $ 940 $ 39,894 $ 2,790 |
Earnings per share (Tables)
Earnings per share (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The computation of earnings per share and weighted average shares outstanding of the Company’s common stock for the period is presented below: Three-month period ended December 31, 2023 Nine-month period ended December 31, 2023 (in thousands except share and per share amounts) Income Numerator Weighted average shares outstanding Denominator Per Share Income Numerator Weighted average shares outstanding Denominator Per Share Basic EPS Net income available to Nextracker Inc. common stockholders $ 41,396 62,108,835 $ 0.67 $ 101,078 56,789,399 $ 1.78 Effect of Dilutive impact Common stock equivalents from option awards (1) 984,173 965,050 Common stock equivalents from RSUs (2) 1,282,259 1,091,426 Common stock equivalents from PSUs (3) 396,143 416,180 Income attributable to non-controlling interests and common stock equivalent from Class B common stock $ 86,565 82,572,960 $ 171,937 87,897,998 Diluted EPS Net income and comprehensive income $ 127,961 147,344,370 $ 0.87 $ 273,015 147,160,053 $ 1.86 (1) During the three and nine-month periods ended December 31, 2023, approximately 0.5 million and 0.5 million of option awards, respectively, were excluded from the computation of diluted earnings per share due to their anti-dilutive impact on the weighted-average ordinary share equivalents. (2) During the three and nine-month periods ended December 31, 2023, no RSU awards were excluded from the computation of diluted earnings per share due to their anti-dilutive impact on the weighted-average ordinary share equivalents. (3) During the three and nine-month periods ended December 31, 2023, 0.4 million and 0.4 million of PSU awards, respectively, were excluded from the computation of diluted earnings per share due to their anti-dilutive impact on the weighted-average ordinary share equivalents. |
Relationship with parent and _2
Relationship with parent and related parties (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Summary of Material Transactions Reflected in Accumulated Net Parent Investment | The following is a summary of material transactions reflected in the accumulated net parent investment during the three- and nine -month periods ended December 31, 2022: Three-month ended Nine-month ended (In thousands) December 31, 2022 December 31, 2022 Corporate allocations (excluding stock-based compensation expense) $ 65 $ 1,463 Transfer of operations to Nextracker (1) (51,527) (8,440) Net cash pooling activities (2) 10,154 (1,195) Income taxes 13,890 29,622 Net transfers from Parent $ (27,418) $ 21,450 (1) Primarily represents certain international operations where related income and/or losses are included in Nextracker’s condensed consolidated statements of operations. Cash was also collected by the international operations on behalf of Nextracker, for which Nextracker and Flex do not intend to settle in the future. For the period presented, the balance includes the legal settlement paid by Flex on August 4, 2022 as further disclosed in the Company Annual Report on Form 10-K for the fiscal year ended March 31, 2023. (2) |
Income taxes (Tables)
Income taxes (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Expense | The following table presents income tax expense recorded by the Company along with the respective consolidated effective tax rates for each period presented. For the nine-month period ended December 31, 2023, the difference between the effective tax rate and the U.S. statutory corporate tax rate of 21% is primarily attributable to certain non-controlling interest in Nextracker LLC which is not taxable to Nextracker Inc. and its subsidiaries, partially offset by U.S. state and local income taxes and the jurisdictional mix of income between the U.S. and other operating jurisdictions. For the three-month period ended December 31, 2023, the difference is primarily attributable to return to provision adjustments incurred during the quarter. The effective tax rates for the three- and nine-month periods ended December 31, 2022 differ from the U.S. domestic statutory income tax rate of 21% primarily due to the U.S state and local income taxes coupled with the jurisdictional mix of income between the U.S. and other operating jurisdictions. Three-month periods ended Nine-month periods ended (In thousands) December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Income tax 38,818 18,442 51,918 35,218 Effective tax rates 23.3 % 30.2 % 16.0 % 27.3 % |
Segment reporting (Tables)
Segment reporting (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Summary of Geographic Information of Revenue | The following table sets forth geographic information of revenue based on the locations to which the products are shipped: Three-month periods ended Nine-month periods ended (In thousands) December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Revenue: U.S. $ 555,790 $ 327,548 $ 1,208,288 $ 908,361 Rest of the World 154,636 185,822 555,038 475,381 Total $ 710,426 $ 513,370 $ 1,763,326 $ 1,383,742 |
Organization of Nextracker - Ad
Organization of Nextracker - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 03, 2023 | Feb. 13, 2023 | Feb. 12, 2023 | Dec. 31, 2023 | Dec. 19, 2022 |
Yuma, Inc | |||||
Organization Consolidation And Presentation Of FinancialS tatements [Line Items] | |||||
Number of shares repurchased during the period (in shares) | 14,025,000 | ||||
TPG Rise | |||||
Organization Consolidation And Presentation Of FinancialS tatements [Line Items] | |||||
Number of shares repurchased during the period (in shares) | 1,606,562 | ||||
Nextracker Inc | |||||
Organization Consolidation And Presentation Of FinancialS tatements [Line Items] | |||||
Noncontrolling interest, ownership percentage by parent | 43% | ||||
IPO | Class A common stock | |||||
Organization Consolidation And Presentation Of FinancialS tatements [Line Items] | |||||
Issuance of Class A common stock sold in follow-on offering (in shares) | 30,590,000 | ||||
Sale of stock price per share (in USD per share) | $ 24 | ||||
Proceeds from the IPO | $ 693.8 | ||||
Payments for underwriting expense | $ 40.4 | ||||
Follow-on Offering | |||||
Organization Consolidation And Presentation Of FinancialS tatements [Line Items] | |||||
Consideration received on transaction | $ 552 | ||||
Follow-on Offering | Class A common stock | |||||
Organization Consolidation And Presentation Of FinancialS tatements [Line Items] | |||||
Number of shares issued in transaction (in shares) | 18,150,000 | ||||
Follow-on Offering, Company Share | Class A common stock | |||||
Organization Consolidation And Presentation Of FinancialS tatements [Line Items] | |||||
Number of shares issued in transaction (in shares) | 15,631,562 | ||||
Yuma, Inc. | Nextracker Inc | |||||
Organization Consolidation And Presentation Of FinancialS tatements [Line Items] | |||||
Noncontrolling interest, ownership percentage by parent | 100% | ||||
Yuma, Inc. | IPO | |||||
Organization Consolidation And Presentation Of FinancialS tatements [Line Items] | |||||
Issuance of Class A common stock sold in follow-on offering (in shares) | 30,590,000 | ||||
Proceeds from the IPO | $ 693.8 | ||||
Number of shares repurchased during the period (in shares) | 100 | ||||
Yuma, Inc. | IPO | Class B common stock | |||||
Organization Consolidation And Presentation Of FinancialS tatements [Line Items] | |||||
Issuance of Class A common stock sold in follow-on offering (in shares) | 128,794,522 | ||||
Flex Ltd | Class B common stock | |||||
Organization Consolidation And Presentation Of FinancialS tatements [Line Items] | |||||
Stock repurchased and retired during period (in shares) | 14,025,000 | ||||
TPG Rise | Class A common stock | |||||
Organization Consolidation And Presentation Of FinancialS tatements [Line Items] | |||||
Issuance of Class A common stock sold in follow-on offering (in shares) | 15,279,190 | ||||
TPG Rise | Class B common stock | |||||
Organization Consolidation And Presentation Of FinancialS tatements [Line Items] | |||||
Stock repurchased and retired during period (in shares) | 1,606,562 |
Summary of accounting policie_3
Summary of accounting policies - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2023 | Mar. 31, 2023 | |
Variable Interest Entity [Line Items] | ||
Advance deposits | $ 106,400 | $ 29,300 |
Deferred tax assets and other assets | 401,010 | 273,686 |
Accrued freight and tariffs | 40,700 | 44,600 |
Accrued payroll | 29,400 | 15,200 |
Nextracker Inc | ||
Variable Interest Entity [Line Items] | ||
Deferred tax assets, investment in subsidiaries | 155,400 | |
Deferred tax assets and other assets | $ 384,500 | 257,100 |
Minimum | ||
Variable Interest Entity [Line Items] | ||
Product warranty term | 5 years | |
Maximum | ||
Variable Interest Entity [Line Items] | ||
Product warranty term | 10 years | |
Tax Receivable Agreement | ||
Variable Interest Entity [Line Items] | ||
Liability relating to tax receivable agreement and others | $ 358,000 | 230,300 |
Other Noncurrent Liabilities | ||
Variable Interest Entity [Line Items] | ||
Standard product warranty liability non current | 9,000 | 11,800 |
Contract with customers liability non current | $ 68,800 | $ 35,800 |
Nextracker LLC | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, ownership percentage | 100% |
Summary of accounting policie_4
Summary of accounting policies - Summary of Product Warranty (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||
Beginning balance | $ 22,591 | $ 10,485 |
Provision (release) for warranties issued | (4,130) | 9,974 |
Payments | (1,253) | (563) |
Ending balance | $ 17,208 | $ 19,896 |
Summary of accounting policie_5
Summary of accounting policies - Redeemable Noncontrolling Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||
Balance at beginning of period | $ 3,560,628 | |||
Net income attributable to redeemable non-controlling interests | $ 86,565 | $ 0 | 171,937 | $ 0 |
Reclassification of redeemable non-controlling interest | (622,292) | |||
Tax distribution | (64,365) | $ 0 | ||
Redemption value adjustments | 822,635 | |||
Balance at end of period | $ 3,868,543 | $ 3,868,543 |
Revenue - Summary of Nextracker
Revenue - Summary of Nextracker's Revenue Disaggregation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 710,426 | $ 513,370 | $ 1,763,326 | $ 1,383,742 |
Point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 6,042 | 7,618 | 32,946 | 40,771 |
Over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 704,384 | $ 505,752 | $ 1,730,380 | $ 1,342,971 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |||
Contract assets | $ 351,545 | $ 297,960 | |
Contract with customer assets funds withheld | 147,600 | $ 116,300 | |
Contract with customer asset change in measure of timing and volume of billings | 53,600 | ||
Contract with customer liability, revenue recognized | $ 141,800 | $ 73,100 | |
Percentage of revenue recognized | 67% | 68% | |
Transaction price allocated to performance obligation | $ 248,900 | ||
Revenue remaining performance obligation percentage | 72% |
Goodwill and Intangible asset_2
Goodwill and Intangible assets - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Mar. 31, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 265,153 | $ 265,153 |
Goodwill and intangible asset_3
Goodwill and intangible assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Mar. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 3,000 | $ 2,500 |
Accumulated amortization | (1,367) | (1,179) |
Net carrying amount | 1,633 | 1,321 |
Trade name and other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 3,000 | 2,500 |
Accumulated amortization | (1,367) | (1,179) |
Net carrying amount | $ 1,633 | $ 1,321 |
The Transactions (Details)
The Transactions (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |||||||
Jul. 03, 2023 | Feb. 13, 2023 | Feb. 12, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Oct. 25, 2023 | Mar. 31, 2023 | Feb. 08, 2023 | |
Shareholder equity and redeemable preferred units [Line Items] | ||||||||
Common stock, shares authorized (in shares) | 500,000,000 | |||||||
Preferred stock, shares authorized (in shares) | 50,000,000 | |||||||
Preferred stock, par or stated value per share (in USD per share) | $ 0.0001 | |||||||
Common stock, shares, outstanding (in shares) | 62,053,870 | |||||||
Shares outstanding percentage owned | 42.91% | |||||||
Payments to noncontrolling interests | $ 64,365 | $ 0 | ||||||
Yuma, Inc | ||||||||
Shareholder equity and redeemable preferred units [Line Items] | ||||||||
Number of shares repurchased during the period (in shares) | 14,025,000 | |||||||
Common stock, par or stated value per share (in USD per share) | $ 0.001 | |||||||
TPG Rise | ||||||||
Shareholder equity and redeemable preferred units [Line Items] | ||||||||
Number of shares repurchased during the period (in shares) | 1,606,562 | |||||||
Flex Ltd | ||||||||
Shareholder equity and redeemable preferred units [Line Items] | ||||||||
Shares outstanding percentage owned | 51.45% | |||||||
IPO | ||||||||
Shareholder equity and redeemable preferred units [Line Items] | ||||||||
Distribution in an aggregate amount | $ 175,000 | |||||||
IPO | 2023 Credit Agreement | ||||||||
Shareholder equity and redeemable preferred units [Line Items] | ||||||||
Proceeds from term loan | 150,000 | |||||||
IPO | Yuma, Inc. | ||||||||
Shareholder equity and redeemable preferred units [Line Items] | ||||||||
Issuance of Class A common stock sold in follow-on offering (in shares) | 30,590,000 | |||||||
Distribution in an aggregate amount | 153,300 | |||||||
Proceeds from the IPO | 693,800 | |||||||
Common unit price per unit (in USD per share) | $ 22.68 | |||||||
Common unit outstanding (in shares) | 30,590,000 | |||||||
Number of shares repurchased during the period (in shares) | 100 | |||||||
IPO | TPG Rise | ||||||||
Shareholder equity and redeemable preferred units [Line Items] | ||||||||
Distribution in an aggregate amount | $ 21,700 | |||||||
Follow-on Offering | ||||||||
Shareholder equity and redeemable preferred units [Line Items] | ||||||||
Consideration received on transaction | $ 552,000 | |||||||
Follow-on Offering | Flex Ltd | ||||||||
Shareholder equity and redeemable preferred units [Line Items] | ||||||||
Payments of stock issuance costs | $ 1,800 | |||||||
Class B common stock | ||||||||
Shareholder equity and redeemable preferred units [Line Items] | ||||||||
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 | ||||||
Common stock, par or stated value per share (in USD per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Common stock, shares, outstanding (in shares) | 82,572,960 | 98,204,522 | ||||||
Class B common stock | TPG Rise | ||||||||
Shareholder equity and redeemable preferred units [Line Items] | ||||||||
Stock repurchased and retired during period (in shares) | 1,606,562 | |||||||
Common stock, shares, outstanding (in shares) | 8,140,341 | |||||||
Shares outstanding percentage owned | 5.63% | |||||||
Class B common stock | Flex Ltd | ||||||||
Shareholder equity and redeemable preferred units [Line Items] | ||||||||
Stock repurchased and retired during period (in shares) | 14,025,000 | |||||||
Common stock, shares, outstanding (in shares) | 74,432,619 | |||||||
Class B common stock | IPO | Yuma, Inc. | ||||||||
Shareholder equity and redeemable preferred units [Line Items] | ||||||||
Issuance of Class A common stock sold in follow-on offering (in shares) | 128,794,522 | |||||||
Class A common stock | ||||||||
Shareholder equity and redeemable preferred units [Line Items] | ||||||||
Common stock, shares authorized (in shares) | 900,000,000 | 900,000,000 | 900,000,000 | |||||
Common stock, par or stated value per share (in USD per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Common stock, shares, outstanding (in shares) | 62,109,804 | 45,886,065 | ||||||
Class A common stock | TPG Rise | ||||||||
Shareholder equity and redeemable preferred units [Line Items] | ||||||||
Issuance of Class A common stock sold in follow-on offering (in shares) | 15,279,190 | |||||||
Class A common stock | IPO | ||||||||
Shareholder equity and redeemable preferred units [Line Items] | ||||||||
Issuance of Class A common stock sold in follow-on offering (in shares) | 30,590,000 | |||||||
Proceeds from the IPO | $ 693,800 | |||||||
Class A common stock | Follow-on Offering | ||||||||
Shareholder equity and redeemable preferred units [Line Items] | ||||||||
Number of shares issued in transaction (in shares) | 18,150,000 | |||||||
Consideration received on transaction | $ 662,500 | |||||||
Class A common stock | Follow-on Offering, Company Share | ||||||||
Shareholder equity and redeemable preferred units [Line Items] | ||||||||
Number of shares issued in transaction (in shares) | 15,631,562 | |||||||
Class A common stock | Follow-on Offering, Certain Stockholder Shares | ||||||||
Shareholder equity and redeemable preferred units [Line Items] | ||||||||
Number of shares issued in transaction (in shares) | 2,518,438 |
Stock-based compensation - Sche
Stock-based compensation - Schedule of Employee Service Share Based Compensation Allocation of Recognized Period Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | $ 13,037 | $ 940 | $ 39,894 | $ 2,790 |
Cost of sales | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | 2,497 | 350 | 7,668 | 1,105 |
Selling, general and administrative expenses | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | 5,163 | 590 | 26,849 | 1,685 |
Research and development | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | $ 5,377 | $ 0 | $ 5,377 | $ 0 |
Stock-based compensation - Addi
Stock-based compensation - Additional information (Details) $ / shares in Units, $ in Millions | 9 Months Ended |
Dec. 31, 2023 USD ($) $ / shares shares | |
2022 Nextracker plan | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Unrecognized compensation cost | $ | $ 93.1 |
Weighted-average period over which cost not yet recognized is expected to be recognized | 2 years 3 months 7 days |
2022 Nextracker plan | Common stock equivalents from RSUs | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Number of equity-based payment instruments granted during the period (in shares) | 1,200,000 |
Award vesting period (in shares) | 3 years |
Weighted average grant date fair values (in USD per share) | $ / shares | $ 40.04 |
2022 Nextracker plan | Common stock equivalents from PSUs | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Number of equity-based payment instruments granted during the period (in shares) | 400,000 |
Weighted average grant date fair values (in USD per share) | $ / shares | $ 54.53 |
2022 Nextracker plan | Common stock equivalents from PSUs | Minimum | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Award vesting percentage | 0% |
2022 Nextracker plan | Common stock equivalents from PSUs | Maximum | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Award vesting percentage | 300% |
2022 Nextracker plan | Common stock equivalents from Options awards | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Gross number of share options granted during the period (in shares) | 500,000 |
Options, weighted average grant date fair values (in USD per share) | $ / shares | $ 40.47 |
2017 Plan | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Gross number of share options granted during the period (in shares) | 0 |
Unrecognized compensation cost | $ | $ 0.7 |
Weighted-average period over which cost not yet recognized is expected to be recognized | 1 year |
Outstanding options (in shares) | 0 |
Exercisable options (in shares) | 0 |
2017 Plan | Common stock equivalents from RSUs | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Number of equity-based payment instruments granted during the period (in shares) | 0 |
2017 Plan | Common stock equivalents from RSUs | Minimum | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Award vesting period (in shares) | 2 years |
2017 Plan | Common stock equivalents from RSUs | Maximum | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Award vesting period (in shares) | 4 years |
Earnings per share - Schedule o
Earnings per share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2023 | |||
Basic EPS | ||||
Net income available to Nextracker Inc. common stockholders, Income | $ 41,396 | $ 101,078 | ||
Net income available to Nextracker Inc. common stockholders, Weighted average shares outstanding (in shares) | 62,108,835 | 56,789,399 | ||
Net income available to Nextracker Inc. common stockholders, Per Share (in USD per share) | [1] | $ 0.67 | $ 1.78 | |
Effect of Dilutive impact | ||||
Income attributable to non-controlling interest and common stock equivalent from Class B common stock, Income | $ 86,565 | $ 171,937 | ||
Income attributable to non-controlling interest and common stock equivalent from Class B common stock , Weighted average shares outstanding (in shares) | 82,572,960 | 87,897,998 | ||
Diluted EPS | ||||
Net income and comprehensive income, Income | $ 127,961 | $ 273,015 | ||
Net income and comprehensive income, Weighted average shares outstanding (in shares) | 147,344,370 | 147,160,053 | [1] | |
Net income and comprehensive income, Per Share (in USD per share) | [1] | $ 0.87 | $ 1.86 | |
Common stock equivalents from Options awards | ||||
Effect of Dilutive impact | ||||
Common stock equivalents (in shares) | 984,173 | 965,050 | ||
Diluted EPS | ||||
Income attributable to non-controlling interest and common stock equivalent from Class B common stock , Weighted average shares outstanding (in shares) | 500,000 | 500,000 | ||
Common stock equivalents from RSUs | ||||
Effect of Dilutive impact | ||||
Common stock equivalents (in shares) | 1,282,259 | 1,091,426 | ||
Common stock equivalents from PSUs | ||||
Effect of Dilutive impact | ||||
Common stock equivalents (in shares) | 396,143 | 416,180 | ||
Diluted EPS | ||||
Income attributable to non-controlling interest and common stock equivalent from Class B common stock , Weighted average shares outstanding (in shares) | 400,000 | 400,000 | ||
[1] (1) Basic and diluted earnings per share is applicable only for the period following the initial public offering (“IPO”) and the related Transactions. See Note 5 for a description of the Transactions. |
Relationship with parent and _3
Relationship with parent and related parties - Additional information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | |
Related Party Transaction [Line Items] | |||||
Amount of transaction | $ (27,418) | $ 21,450 | |||
Flex Ltd | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction purchases from related party | $ 23,500 | 14,100 | $ 80,000 | 43,000 | |
Related Party | |||||
Related Party Transaction [Line Items] | |||||
Due to related party | 58,292 | 58,292 | $ 12,239 | ||
Related Party | Flex Ltd | |||||
Related Party Transaction [Line Items] | |||||
Amount of transaction | 0 | 4,200 | |||
General and administrative expense | 2,800 | ||||
Cost of goods and services sold | 1,400 | ||||
Due to related party | $ 8,300 | ||||
Accounts payable | $ 26,500 | $ 54,600 | $ 7,800 | $ 43,000 |
Relationship with parent and _4
Relationship with parent and related parties - Summary of Material Transactions Reflected on Accumulated Net Parent Investment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Dec. 31, 2022 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | ||
Net transfers from Parent | $ (27,418) | $ 21,450 |
Corporate allocations (excluding stock-based compensation expense) | ||
Related Party Transaction [Line Items] | ||
Net transfers from Parent | 65 | 1,463 |
Transfer of operations to Nextracker | ||
Related Party Transaction [Line Items] | ||
Net transfers from Parent | (51,527) | (8,440) |
Net cash pooling activities | ||
Related Party Transaction [Line Items] | ||
Net transfers from Parent | 10,154 | (1,195) |
Income taxes | ||
Related Party Transaction [Line Items] | ||
Net transfers from Parent | $ 13,890 | $ 29,622 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Income tax | $ 38,818 | $ 18,442 | $ 51,918 | $ 35,218 |
Effective tax rates | 23.30% | 30.20% | 16% | 27.30% |
Income taxes - Additional Infor
Income taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Dec. 31, 2023 | Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Other tax related income | $ 12.9 | $ 7.3 |
Segment reporting - Additional
Segment reporting - Additional Information (Details) | 9 Months Ended |
Dec. 31, 2023 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Number of reportable segments | 1 |
Segment reporting - Summary of
Segment reporting - Summary of Geographic Information of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue, Major Customer [Line Items] | ||||
Revenue | $ 710,426 | $ 513,370 | $ 1,763,326 | $ 1,383,742 |
U.S. | ||||
Revenue, Major Customer [Line Items] | ||||
Revenue | 555,790 | 327,548 | 1,208,288 | 908,361 |
Rest of the World | ||||
Revenue, Major Customer [Line Items] | ||||
Revenue | $ 154,636 | $ 185,822 | $ 555,038 | $ 475,381 |
Subsequent events - Additional
Subsequent events - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 06, 2024 | Jan. 02, 2024 | Dec. 31, 2023 | Jul. 03, 2023 | Mar. 31, 2023 | Feb. 08, 2023 |
Subsequent Event [Line Items] | ||||||
Common stock, shares, outstanding (in shares) | 62,053,870 | |||||
Class B common stock | ||||||
Subsequent Event [Line Items] | ||||||
Common stock, par or stated value per share (in USD per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||
Common stock, shares, outstanding (in shares) | 82,572,960 | 98,204,522 | ||||
Flex Ltd | Class B common stock | ||||||
Subsequent Event [Line Items] | ||||||
Common stock, shares, outstanding (in shares) | 74,432,619 | |||||
Subsequent Event | Flex Ltd | Class B common stock | ||||||
Subsequent Event [Line Items] | ||||||
Common stock, shares, outstanding (in shares) | 74,432,619 | |||||
Yuma, Inc. | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Tax distributions | $ 47.8 | |||||
Yuma, Inc. | Subsequent Event | Flex Ltd | ||||||
Subsequent Event [Line Items] | ||||||
Noncontrolling interest, ownership percentage by parent | 100% | |||||
Nextracker LLC | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Tax distributions | $ 93.5 | |||||
Nextracker LLC | Subsequent Event | Yuma, Inc. | Class B common stock | ||||||
Subsequent Event [Line Items] | ||||||
Noncontrolling interest, ownership percentage by parent | 51.48% | |||||
Common stock, shares owned (in shares) | 74,432,619 | |||||
Common stock, par or stated value per share (in USD per share) | $ 0.0001 |