Companies /Technology

Solaredge Technologies Inc

NASDAQ: SEDG Solar
$35.21
▼ $1.22 (−3.35%) today
Markets closed · 6:33pm ET

Q1 2025 Earnings

Reported May 6, 2025, 7:03am ET · SEC source
$-1.14
Beat +1.69%
EPS · est. $-1.16
$219.5M
Beat +7.47%
Revenue · est. $204.2M
+19.4%
Beating market
SEDG vs S&P since report
1 quarter
Consecutive EPS beats

Market Reaction

% change · around the report
−6%0+6%May 6May 7report 7:03am ETearnings+0.2%+3.1%
−6%0+6%May 6May 7earnings+0.2%+3.1%
SEDG +3.1%S&P 500 +0.2%
−6%0+6%May 6May 7report 7:03am ETearnings+0.0%+3.1%
−6%0+6%May 6May 7earnings+0.0%+3.1%
SEDG +3.1%NASDAQ +0.0%
0+20%+40%May 5May 14report 7:03am ETearnings+5.2%+22.5%
0+20%+40%May 5May 14earnings+5.2%+22.5%
SEDG +22.5%S&P 500 +5.2%
0+20%+40%May 5May 14report 7:03am ETearnings+7.6%+22.5%
0+20%+40%May 5May 14earnings+7.6%+22.5%
SEDG +22.5%NASDAQ +7.6%
+11.22%
Day of report
+2.78%
Next session
+26.30%
One week
+26.58%
30 days

S&P 500 over the same 30 days: +7.22%.

Did SEDG Beat Earnings? Q1 2025 Results

SolarEdge posted a tentative step forward in Q1 2025, beating both top and bottom-line estimates as the beleaguered solar inverter maker showed early signs that its painful restructuring may be gaining traction. Revenue came in at $219.48 million, up 7.4% year over year and ahead of the $204.23 million consensus by 7.47%, while a non-GAAP loss of $1.14 per share narrowly beat the $1.16 estimate. The most material driver behind the improvement was a dramatic recovery in gross margin, which flipped to positive 8.0% on a GAAP basis from negative 57.2% in Q4 2024, as the write-offs and inventory impairments that had ravaged prior quarters largely subsided. The company also posted a second consecutive quarter of positive free cash flow at $19.85 million, a stark contrast to the negative $243.37 million recorded a year ago. Still, with some analysts remaining deeply skeptical about the path to sustained profitability, the forward guidance will matter; management is projecting Q2 revenues of $265 million to $285 million, though flagged roughly two percentage points of gross margin headwind from new tariffs.

Key Takeaways
  • Second consecutive quarter of positive free cash flow generation
  • Sequential revenue increase of 12% from prior quarter
  • GAAP gross margin improvement to 8.0% from negative 57.2% in prior quarter
  • Significant reduction in operating expenses both GAAP and non-GAAP
  • Shipped 1,208 MW (AC) of inverters and 180 MWh of batteries for PV applications

“I am pleased with the steady progress we made on the SolarEdge turnaround this quarter. We delivered a second straight quarter of positive free cash flow and are executing on our strategic priorities. Despite an uncertain tariff and regulatory environment, we remain relentlessly focused on elevating our execution across our business.”

SolarEdge CEO, on the earnings call

Forward Guidance & Outlook

For Q2 2025, SolarEdge guides revenues of $265 million to $285 million, non-GAAP gross margin of 8% to 12% (including approximately two percentage points of new tariff impact), and non-GAAP operating expenses of $90 million to $95 million. Management emphasized continued execution on strategic priorities despite an uncertain tariff and regulatory environment.

SEDG YoY Financials

Q1 2025 vs Q1 2024 · SEC filings Q1 2024 Q1 2025
$-90,000,000$0$90.0M$180.0M$204.4M$219.5MRevenue$6.2M$17.5MGross Profit$-74,998,905$-102,726,000Operating Income$-71,720,900$-98,523,000Net Income
$-90,000,000$0$90.0M$180.0MRevenueGross ProfitOperating IncomeNet Income

Figures from SEC filings and company reports. Not investment advice.