Solaredge 2025 Q2 Earnings Narrower Losses and Sequential Growth

Solaredge (SEDG) reported its fiscal 2025 Q2 earnings on August 6, 2025. The company showed a 9.1% year-over-year revenue increase and reduced its net loss, marking sequential progress. However, its stock continued a negative trend, and a post-earnings trading strategy proved unprofitable. Management highlighted momentum in execution and guided for higher revenue in Q3.

SolarEdge Technologies reported revenue of $289.43 million in 2025 Q2, reflecting a 9.1% year-over-year increase from $265.40 million in 2024 Q2. This growth indicates the company is making progress in expanding its market presence and improving sales performance. The increase in revenue was driven by a combination of market demand and strategic execution.

The company reduced its losses for the second consecutive quarter. It narrowed its net loss to $124.74 million in 2025 Q2, a 4.6% reduction compared to a $130.82 million net loss in 2024 Q2. On a per-share basis, the net loss decreased to $2.11 per share in 2025 Q2 from $2.30 per share in 2024 Q2, an 8.0% improvement. These reductions in losses reflect improved cost management and operational efficiency.

The stock price of Solaredge has experienced a downward trend in recent trading sessions. It has edged down 0.65% during the latest trading day, 0.08% during the most recent full trading week, and 2.42% month-to-date. This continued decline highlights investor concerns regarding the company's profitability and future growth potential.

A strategy of buying SEDG shares following a quarterly revenue increase and holding for 30 days underperformed significantly. Over the past three years, the strategy returned -92.21%, trailing the benchmark by 141.61%. The Sharpe ratio was -0.63, indicating substantial risk aversion, while the maximum drawdown was 0%, suggesting that the strategy avoided further losses during market downturns.

Despite the losses, management remains optimistic about the company's direction. Shuki Nir, CEO of SolarEdge, expressed pride in the company's progress, highlighting two consecutive quarters of year-over-year and sequential revenue growth alongside margin expansion. He emphasized the company's focus on execution and strategic priorities, positioning SolarEdge for future opportunities.

SolarEdge provided guidance for the third quarter of 2025, forecasting revenue between $315 million and $355 million. Non-GAAP gross margin is expected to range between 15% and 19%, factoring in a 2% tariff impact, while non-GAAP operating expenses are projected between $85 million and $90 million. This guidance indicates management's confidence in the company's ability to manage costs and improve profitability.

According to recent non-GAAP financial data, the company shipped 1,194 MW (AC) of inverters and 247 MWh of batteries for PV applications. GAAP gross margin for the second quarter was 11.1%, up from 8.0% in the prior quarter. Non-GAAP gross margin stood at 13.1%, compared to 7.8% in the prior quarter, with new tariffs having a 1% negative impact.

SolarEdge announced no significant M&A activity or C-level changes during this period. The company has not announced any dividend or buyback initiatives in the near future. The primary focus remains on operational improvements and navigating global trade challenges.

The company held a conference call on August 7, 2025, at 8:00 a.m. ET to discuss the results for the second quarter. The call was accessible via dial-in numbers for domestic and international callers and available online through the Investor Relations section of the company's website. A replay was made available for approximately 30 calendar days after the call.