Why did SolarEdge's revenue drop sharply in Q3 2024?

SolarEdge's revenue decline in Q3 2024 can be attributed to several key factors:

1. **Retail Solar Market Softness**: The company's revenue was negatively impacted by the ongoing softness in the retail solar market. This led to a decline in demand for their products, particularly in the second quarter, which spilled over to the third quarter.
2. **Inventory Backlog and Job Cuts**: SolarEdge had been dealing with inventory backlog issues, leading to a strategic decision to cut around 400 jobs, including 200 in Israel. This move was aimed at reducing expenses and addressing the issue of excess inventories resulting from weak demand. The layoffs and reduced workforce reflect the company's efforts to streamline operations and cut costs in response to decreased revenue.
3. **Impact of High Interest Rates**: The solar sector, including SolarEdge, has been affected by high interest rates, which have made borrowing expensive and impacted financing for residential solar projects. This financial strain on customers has led to a decrease in demand for SolarEdge's products. Additionally, high interest rates have weighed on the company's financial performance, contributing to the revenue drop.

In summary, SolarEdge's revenue drop in Q3 2024 is primarily due to retail solar market softness, inventory backlog and job cuts, and the impact of high interest rates. These factors combined have resulted in a significant decline in the company's financial performance.