SolarEdge Stock Soars 14.94% on Q1 Earnings Beat

On May 6, 2025, SolarEdge's stock surged by 14.94% in pre-market trading, reflecting a significant boost in investor confidence.

SolarEdge Technologies Inc. reported its financial results for the first quarter of 2025, revealing a 12% increase in revenue to $219.5 million compared to the previous quarter. This growth exceeded analyst estimates of $203.66 million, demonstrating the company's resilience in a challenging regulatory environment. The company's non-GAAP revenues, excluding $7.4 million from discontinued operations, stood at $212.1 million.

The company's GAAP gross margin improved significantly to 8.0% from a negative 57.2% in the prior quarter, while the non-GAAP gross margin was 7.8%, up from negative 39.5%. Operating expenses decreased to $120.3 million from $151.41 million in the previous quarter, reflecting the company's efforts to streamline operations. However, SolarEdge reported a GAAP net loss of $98.51 million, which is an improvement from the $287.41 million loss in the prior quarter. The GAAP net loss per share was $1.70, better than the previous quarter's loss of $5.00 per share, yet still above the estimated earnings per share of -$1.80.

SolarEdge's cash flow from operating activities was $33.8 million, slightly down from $37.8 million in the previous quarter. The company generated a free cash flow of $19.8 million, excluding cash flow from discontinued operations. As of March 31, 2025, the company's cash, cash equivalents, and marketable securities totaled $113.2 million, net of debt, compared to $81.9 million at the end of 2024.

Looking ahead, SolarEdge has provided guidance for Q2 2025, with expected revenues ranging from $265 million to $285 million and a non-GAAP gross margin between 8% and 12%. The company remains focused on executing its strategic priorities to navigate the uncertain regulatory landscape and drive future growth.