SolarEdge Technologies Q1 Earnings Beat, Revenues Increase Y/Y

SolarEdge Technologies, Inc. SEDG reported a first-quarter 2025 adjusted loss of $1.14 per share, narrower than the Zacks Consensus Estimate of a loss of $1.20. The bottom line also improved from the prior-year quarter’s loss of $1.90. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Barring one-time adjustments, the company incurred a GAAP loss of $1.70 per share compared with a GAAP loss of $2.75 in the year-ago period.

The year-over-year improvement in the bottom line can be attributed to higher revenues, significantly improved gross profit and lower operating expenses incurred in the first quarter compared with the prior-year quarter.

SEDG’s Revenues

The company’s revenues of $219.5 million surpassed the Zacks Consensus Estimate by 7.7%. The top line also increased 7.4% from the year-ago quarter’s $204.4 million.

SEDG’s Operational Highlights

SolarEdge Technologies shipped a total of 1,208 megawatts-alternate current (MWac) of inverters and 180 megawatt-hours of batteries in the quarter.

The company reported an adjusted gross profit of $16.6 million against an adjusted gross loss of $13.3 million in the prior-year period.

Adjusted operating expenses declined 18.4% year over year to $89.1 million.

The company incurred an adjusted operating loss of $72.4 million compared with an operating loss of $122.5 million in the prior-year quarter.

SEDG’s Financial Performance

As of March 31, 2025, SolarEdge Technologies had cash and cash equivalents worth $401.4 million compared with $274.6 million as of Dec. 31, 2024.

The net cash inflow from operating activities during the first three months of 2025 amounted to $33.8 million against the cash outflow of $217 million recorded a year ago.

As of March 31, 2025, total long-term liabilities were $956.5 million, 2.8% higher than the figure reported at 2024-end.

SEDG’s Q2 2025 Guidance

SEDG expects revenues in the range of $265-$285 million for the second quarter of 2025. The Zacks Consensus Estimate is pegged at $239.7 million, which is lower than the company’s guided range.

Adjusted operating expenses are projected in the range of $90-$95 million, while the adjusted gross margin is expected between 8% and 12%.

SEDG’s Zacks Rank

SolarEdge currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Solar Releases

First Solar, Inc. FSLR reported first-quarter 2025 earnings of $1.95 per share, which were down 11.4% from the prior-year quarter’s figure of $2.20. The bottom line also missed the Zacks Consensus Estimate of $2.50 per share by 22%.

First Solar’s first-quarter net sales were $844.6 million, which missed the Zacks Consensus Estimate of $851 million by 0.7%. However, the top line improved 6.4% from the year-ago quarter’s $794.1 million.

Enphase Energy, Inc. ENPH reported first-quarter 2025 adjusted earnings of 68 cents per share, which increased 94.3% from 35 cents reported in the prior-year quarter. However, the bottom line missed the Zacks Consensus Estimate of 71 cents by 4.2%.

Enphase Energy’s first-quarter revenues of $356.1 million missed the Zacks Consensus Estimate of $362 million by 1.7%. However, the top line increased 35.2% from the prior-year quarter’s reported figure of $263.3 million.

An Upcoming Solar Release

Nextracker Inc. NXT is scheduled to report fiscal fourth-quarter 2025 results on May 14, after market close. The Zacks Consensus Estimate for NXT’s earnings is pegged at 98 cents per share, which indicates year-over-year growth of 2.1%.

The consensus estimate for sales is pegged at $828.3 million, which implies year-over-year growth of 12.5%.

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This article originally published on Zacks Investment Research (zacks.com).

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