SolarEdge rebounds on Q1 earnings surprise

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SolarEdge, a global provider of solar inverters and energy storage, announced its Q1 2025 earnings report. The company posted revenues of $219.5 million, exceeding Wall Street consensus expectations by about 7.5%.

SolarEdge provides solar inverters, power optimizers and energy storage for residential, commercial and industrial projects globally. In Q1 2025 SolarEdge shipped 1.2 GWac of inverters and 180 MWh of batteries.

The company’s share price jumped about 18% in the trading day following earnings. SolarEdge’s stock is down roughly 75% from a year ago and over 90% from its all-time high share prices.

Amid distributed solar market contraction and regulatory uncertainty, the company has pivoted to a strategy focused on free cash generation and leaner operations. In January, it announced layoffs of about 900 people, or about 16% of its workforce.

The company reported $26 million in free cash flow for Q4, 2024 and executed on its cash flow strategy again in Q1, 2025, generating $20 million free cash flow in-quarter.

SolarEdge reported operating losses of $102.7 million, an improvement from operating losses of $263.7 million in Q4. While the company’s net losses decreased quarter-over-quarter, it remained unprofitable.

Gross margins improved considerably in-quarter, rising from negative 57.2% in Q4 to a positive 8% in Q1 2025.

“Despite an uncertain tariff and regulatory environment, we remain relentlessly focused on elevating our execution across our business,” said Shuki Nir, chief executive officer, SolarEdge.

The company expects to continue sequential quarterly revenue growth, issuing Q2 revenue guidance within the range of $265 million to $285 million. It expects to maintain a positive gross margin, ranging 8% to 12%, including percentage points of negative tariff impact.

SolarEdge has shipped over 5.9 million inverters or 57.4 GW of product globally. It has systems installed in over 145 countries and over 72,000 installers have used its products. The company has over 3,400 employees, 604 patents granted and 340 more patents pending.

While the company has retracted during an overall market decline, the fundamental driver of increased electricity demand is expected to sustain a growing market for distributed solar and storage long-term.

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